TORONTO, ON / ACCESSWIRE / May 17, 2022 / NEXGENRX INC. ("NexgenRx" or the "Company") (TSXV:NXG) is pleased to announce its interim financial results for the first quarter ended March 31, 2022, highlighted by continued net income, EBITDA and revenue growth, with the Company's net income and EBITDA for the quarter being $377,956 and $753,368 respectively, increases of $15,845 and $59,669 over Q1 2021. Similarly, Q1 revenue was 13.22% higher compared to the same period last year.
The 2021 financial year demonstrated the strengths of the NexgenRx business model and the virtues of the Company's financial management approach, as the Company achieved positive cash, EBITDA and shareholder free cash flow. As the 2021 financial year ended with a strong balance sheet position, the Company navigated into 2022 in good financial health and total dividends of $351,679.42 were paid out in February 2022 to all outstanding common and series 1 preferred shareholders.
The flexibility and strength of the Company's operating model and tremendous efforts of the Company's leadership teams allowed NexgenRx to end Q1 with solid results that are in line with the Company's objectives to protect its financial position and maintain its margin. Q1's 13.22% revenue growth (as compared to same period last year) reflected a healthy growth in transaction and administration revenues and exceptional growth in consulting revenue.
Total operating expense was $267,951 or 13.47% higher compared to the same period in the prior year, attributed to compensation adjustment, as well as the amortization of internally generated intangible assets when the major .NET re-write was completed. Management continues to carefully monitor and control all operating expenses. The Company has emphasized keeping its costs low, plus looking for further cost-reduction opportunities, and these efforts have shown their value in the Company's ability to generate increasing EBITDA and additional shareholder value.
While the full impact and duration of the pandemic continues to remain unknown, Management is committed to take all necessary steps to keep revenue and expenses aligned to maintain the continued growth and financial integrity of the Company.
Ron Loucks, President and CEO, stated: "Along with the rest of the NexgenRx Board and executive team, I am extremely pleased that we have paid our first dividend, in keeping with our policy of distributing cash to shareholders when it is prudent to do so. This demonstrates our confidence in the Company's business model and remains one of our overall strategic priorities. With another year characterized by extraordinary global and financial challenges, I am extremely proud of what we were able to accomplish. NexgenRx's foundational strength and the agility of our operating model, in addition to the unparalleled commitment of a resilient workforce, allowed us to finish the quarter with a solid performance and make progress across our strategic pillars, setting the stage for continued growth in 2022. As always, I would like to extend my sincere appreciation to our Board and dedicated staff who continue to work to keep us strong. I would also like to thank our dedicated customers and shareholders for their continued confidence in NexgenRx."
Commenting upon the Company's ongoing product developments, Mr. Loucks added "The significant step in the .NET re-write of our claims adjudication platform was completed in December 2021, and has now been fully implemented. We have now turned our focus to the NexAdmin platform and will be rolling out our new release over the summer. This giant step will add new functionality plus an enhanced member experience all in a newly developed web-based application. The user experience will feature a brand-new look and feel incorporating all of the latest market features into our proven robust administration platform. In addition, we continue to rapidly enroll more targeted healthcare providers to submit claims via our proprietary secure web-portal, theclaimsXchange.com. The Company has started other exciting development projects in 2022, with the goal of continued innovation providing leading-edge technology solutions for our customers, plan sponsors and their members."
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 management believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. The Company 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 the Company's 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 the Company's annual Management's Discussion and Analysis, as filed under the Company's 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. The Company undertakes no duty to update any of the forward-looking information to conform such information to actual results or to changes in the Company's 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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