NexGen Financial Corporation Announces Solid Asset Growth and 2011 Year-End Results

    




 TORONTO, March 28, 2012 /CNW/ - NexGen Financial Corporation ("NexGen" or "the Company"),  today announced its financial  results for the three and twelve month periods ended December 31, 2011.  These results are consistent with the preliminary and unaudited  financial results announced on February 2, 2012. 

 2011 Highlights  




        --  Assets under management1 ("AUM") increased 12% to $920 million
            as of December 31, 2011, from $823 million as at December 31,
            2010 compared to an industry decline of 0.3% over the same
            period
        --  $135 million in net sales of mutual funds for 2011
        --  Management and administration fee revenues increased 44% to
            $12.9 million for 2011, from $9.0 million in the prior year
        --  Operating EBITDA2 improved by $2.1 million to $1.1 million
            ($0.25 per share) for 2011, from negative $1.0 million
            (negative $0.22 per share) in the prior year
        --  In February 2012, subsequent to year end, NexGen listed its
            common shares on the TSX-V under the symbol NFX




 NexGen reported a net loss for 2011 of $1.9 million (loss of $0.40 per  share), unchanged from a net loss of $1.9 million (loss of $0.41 per  share) in the prior year. Included in the 2011 results was a one-time  non-cash income tax expense of $1.1 million recognized in the first  quarter of 2011 resulting from a corporate reorganization. On an  adjusted basis (excluding this one-time item) net loss for 2011 would  have been $0.8 million. 

 "In 2011, despite the challenging financial markets, we made strong  progress across a number of key areas, generating $135 million in net  sales and increasing our Assets Under Management for the fifth  consecutive year", said Laurie Munro, CEO of NexGen. "We continue to  invest in our business, expanding our sales and marketing teams as we  intensify our efforts to introduce NexGen's unique tax-efficient  investment solutions to a broader range of advisors and investors." 

 "In February of this year, we completed our listing on the TSX-Venture  Exchange," continued Mr. Munro. "This is an important milestone for our  company and we look forward to continuing to build and grow our  business to create long-term value for our shareholders" 

 Q4 2011 Results  

 Management and administration fee revenues increased 19% to $3.7 million  in the fourth quarter of 2011, from $3.1 million in the fourth quarter  of 2010. Operating EBITDA increased $0.3 million to $0.7 million in the  fourth quarter of 2011, from $0.4 million in the fourth quarter of  2010. The improvement in operating performance resulted primarily from  higher levels of AUM. 

 Net income for the fourth quarter of 2011 was $0.3 million ($0.05 per  share), relatively unchanged from the same period in the prior year.  Results for the fourth quarter of each year are positively impacted by  tax management fees which are realized at the end of year if certain  return and tax objectives have been satisfied. 

 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] Goenka, CFO & COONexGen Financial [e-mail] 


    

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