NexGen Financial Announces First Quarter 2012 Results

    




 TORONTO, May 22, 2012 /CNW/ - NexGen Financial Corporation ("NexGen" or "the Company"),  today announced its unaudited  financial results for the quarter ended March 31, 2012. 

 Q1 2012 Highlights  




        --  Assets under management1 ("AUM") increased 7% to $948.6 million
            at March 31, 2012, from $886.5 million at March 31, 2011,
            compared to an industry increase of 0.1% over the same period
        --  AUM increased $28.6 million during the first quarter of 2012,
            driven by net sales of $14.1 million and market appreciation of
            $14.5 million
        --  Management and administration fee revenues were $3.4 million
            for the first quarter of 2012, a 17% increase from $2.9 million
            for the first quarter of 2011
        --  Operating EBITDA2 improved to $0.26 million ($0.06 per share)
            for the first quarter of 2012, from negative $0.04 million
            (negative $0.01 per share) for the first quarter of 2011




 NexGen reported a net loss of $0.18 million ($0.04 per share) for the  three months ended March 31, 2012, compared with a net loss of $1.46  million ($0.32 per share) for the same period in the prior year. There  was a one-time, non-cash income tax expense of $1.13 million recognized  in the first quarter of 2011 resulting from a corporate reorganization.  Net loss before taxes for the three months ended March 31, 2012 was  $0.18 million when compared to a loss of $0.43 million for the same  period in the prior year. 

 "Despite a challenging market backdrop we continued to grow our asset  base in the first quarter of 2012, driven by $14.1 million in net sales  and $14.5 million in market value appreciation in our funds", said  Laurie Munro, President & CEO of NexGen. "We are focused on broadening  our product offering to provide investors with a wider range of  options. We will be shortly introducing a new Corporate Bond Fund which  is anticipated to be available in early June. The fund will be  sub-advised by Baker Gilmore, a well respected Montreal-based Canadian  fixed income manager." 

 The Company's complete financial results are available at ir.nexgenfinancial.ca and www.sedar.com. 

 Notes: 




      1. Assets under management or "AUM" refers to the market value of net
         assets of the investment funds on which management fees are
         calculated. Industry data as reported by the Investment Funds
         Institute of Canada.
      2. Operating EBITDA defined by NexGen as earnings before interest,
         taxes, depreciation and amortization, investment income and other
         non-cash expenses




 Non-GAAP financial measures such as "Assets Under Management" or "AUM",  and "Operating EBITDA" do not have any standardized meaning prescribed  by International Financial Reporting Standards ("IFRS") and may not be  comparable to similar measures presented by other companies. Readers  are cautioned that these non-GAAP measures are not alternatives to  measures determined in accordance with IFRS and should not, on their  own, be construed as indicators of performance, cash flows, or  profitability. However, management of NexGen believes that most  shareholders, creditors and other stakeholders prefer to include the  use of these financial measures in analyzing the Company's results. 

 About NexGen Financial NexGen Financial Corporation is a mutual fund company and was founded to  develop value added investment solutions for financial advisors and  their clients. The firm is focused on the creation of innovative  investment products and services that meet the needs of Canadians  seeking more tax efficient investment opportunities and greater control  over the tax treatment of their investments. Managed by strong  investment professionals, NexGen's unique Registered and Tax-Managed  Fund offerings are well positioned as attractive investment  opportunities for Canadians looking to alleviate the tax costs  associated with traditional investment solutions. 

 Forward Looking Statements This release may contain "forward-looking statements" which reflect the  current expectations of the Company. These statements reflect  management's current beliefs with respect to future events and are  based on information currently available to management. Forward-looking  statements involve significant known and unknown risks, uncertainties  and assumptions. Many factors could cause actual results, performance  or achievements to be materially different from any future results,  performance or achievements that may be expressed or implied by such  forward-looking statements including, without limitation, those listed  under the heading "Risk Factors" in the Company's Management Discussion  and Analysis, which is available on the Company's website and on SEDAR  at www.sedar.com. Should one or more of these risks or uncertainties materialize, or  should assumptions underlying the forward-looking statements prove  incorrect, actual results, performance or achievements could vary  materially from those expressed or implied by the forward-looking  statements contained in this release. Although the forward-looking  statements contained in this release are based upon what the Company  believes to be reasonable assumptions, the Company cannot assure  investors that actual results, performance or achievements will be  consistent with these forward-looking statements. These forward-looking  statements are made as of the date of this release and the Company does  not assume any obligation to update or revise them to reflect new  events or circumstances. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in policies of the TSX Venture Exchange) accepts  responsibility for the adequacy of this release. 

NexGen Financial Corporation


CONTACT:  Laurie Munro, President & CEONexGen Financial [e-mail]    Abe Goenka, CFO & COONexGen Financial [e-mail] 


    

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