TORONTO, ON / ACCESSWIRE / March 31, 2021 / NEXGENRX INC. (TSXV:NXG) ("NexgenRx" or the "Company") is pleased to announce its annual financial results for the year ended December 31, 2020, which show record growth in both EBITDA and net profit. The Company recorded EBITDA for the year of $3,035,108, representing an increase of $2,048,139 over the prior year. Total revenue increased by $1,501,355 or 15.7%, as compared to the prior year.
The Company stayed focused on all of its long-term strategic plans during the year ended December 31, 2020. The Company made significant advances with its technology, investing more than $1.4 million in the complete re-write of NexSys®, the Company's claims adjudication system, in .NET, giving the Company a 20+ year horizon on its platform. The Company also retired the $1.2 million balance of sale on its previous acquisition of Canadian Benefit Administrators and MyBenetech. Both of these significant financial events were completed during the year, even with the impact of the pandemic.
Despite the many challenges created by COVID-19, including the Company's rapid successful transition to work-from-home, the Company's positive financial results were achieved through its efforts in increasing operational efficiency, as well as effective cost reduction strategies. Notwithstanding the huge drop in transactional revenue in Q2 2020 due to the COVID-19 lockdown, the Company's net income for the year was $2,115,735, representing an increase of $2,323,670 over the prior year.
As a result of our drop in revenue, the Company qualified for the Canada Emergency Wage Subsidy (CEWS) program and received $469,380 (classified as other income), which allowed the Company to keep all employees on payroll during the height of the pandemic. Excluding the CEWS assistance, total revenue increased $1,031,974 or 10.8% over the prior year due to net new business generated.
Cost cutting measures implemented since the second quarter resulted in a reduction of $790,629 or 9.1% in operating expenses compared to the prior year, which has allowed the Company to remain cash flow positive. The Company is ensuring that its customers continue to receive the level of services that they expect, while keeping its expenses under control.
The Company continued to maintain sufficient liquidity to satisfy all of its financial obligations during 2020. Management continues to monitor and analyze the extent of the financial impact of the COVID-19 pandemic, which could continue to be material with the new variants identified recently. While the full impact and duration of the pandemic continues to remain unknown, Management will take all necessary steps to keep revenue and expenses aligned to ensure the financial integrity of the Company.
"I am extremely delighted to report these record financial results, which represent a watershed moment in our Company's continuing growth and development. We accomplished these tremendous results through increased sales activity, combined with improved operational efficiency and effective cost reduction strategies implemented during the year" stated Ron Loucks, President & CEO.
The Company also announces the issuance of 800,000 Series 1 Preferred Shares at an ascribed price of $0.25 per share, bringing the total number of Series 1 Preferred Shares issued and outstanding to 6,600,000. The consideration payable for the foregoing Series 1 Preferred Shares consisted of previously received cash subscriptions in the aggregate amount of $100,000 and the retirement of outstanding indebtedness in the amount of $100,000. For further details regarding the terms of the Series 1 Preferred Shares, please refer to the Company's press release dated July 9, 2020. In accordance with applicable securities laws, all of the Series 1 Preferred Shares issued today are subject to a four (4) month plus one day hold period, which will expire on August 1, 2021.
About NexgenRx
NexgenRx is Canada's only independent full-service Third-Party Administrator and Technology Solutions Provider, offering proprietary full front-end, eligibility, enrolment, hour bank and mobile access capabilities, together with state-of-the-art claims adjudication and full provider network coverage. These combined capabilities allow NexgenRx to provide Plan Sponsors, sophisticated administration and health benefit technology applications in a cost-effective SaaS (Software As a Service) Model.
NexgenRx is committed to building partnerships with organizations looking to exceed the expectations of their clients and plan members and deliver superior administration and claims processing solutions at a competitive cost. More information on NexgenRx can be found at www.nexgenrx.com.
Caution Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: uncertainty as to whether our strategies and business plans will yield the expected benefits; availability and cost of capital; the ability to identify and develop and achieve commercial success for existing and new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; continued development and enhancement of the Company's proprietary software technology; cyber security risks and the other risks and uncertainties disclosed in our annual Management's Discussion and Analysis, as filed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Ronald C. Loucks
NexgenRx Inc.
President and CEO
416.695.3393 x801
Kelly Ehler CPA, CA
NexgenRx Inc.
Chief Financial Officer
416-695-3393x803
SOURCE: NexgenRx Inc.
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