NexgenRx Announces Q1 2019 Financials and Annual Meeting Results
Wednesday, May 29, 2019 11:55 PM
TORONTO, ON / ACCESSWIRE / May 29, 2019 / NEXGENRX INC. ("NexgenRx" or the "Company") is pleased to announce its Q1 2019 financial results and the results of its annual meeting of shareholders.
The first quarter was a very positive quarter for the Company, which included consolidating a full quarter of positive financial results from Canadian Benefit Administrators Ltd. ("CBA") and My Benetech Inc. ("MBT"), which were acquired in 2018. Excluding the acquisitions, revenue from new clients grew 33% year over year. On a consolidated basis the current revenue run rate is anticipated to remain the same, subject, as always to new potential client wins or terminations.
NexgenRx results are now complemented by CBA, which is a Third-Party Administrator ("TPA") providing administrative services to plan advisors and other intermediaries who wish to provide their clients with eligibility, enrolment & billing functionality, independent of any one insurance carrier. My Benetech provides a wholesale value-add SaaS (Software as a Service) platform to plan sponsors who have their own dedicated administrators. Together with NexgenRx, our client offering has been significantly strengthened.
The first quarter ended with a profit of $107,977 reflecting the positive contributing factors noted above. On a year over year basis, revenue increased by 54%, reversing prior year losses. With new client revenues and the integration of My Benetech and CBA, the Company's financial results have swung from a loss in 2018 to a profit in 2019. First quarter EBITDA was a positive $384,987 vs. a negative $79,209 in the comparable quarter in 2018.
The Company held its Annual and Special Meeting of its shareholders today. An aggregate of 52,654,148 (75.3%) of the outstanding shares of the Company entitled to be voted at the meeting were represented in person or by proxy. All matters of business were approved by the shareholders at the Meeting, including setting the number of Directors at five (5), the election of all Directors, the appointment of Grant Thornton LLP as the Company's auditor and the approval of the Company's stock option plan.
NexgenRx is Canada's only independent full service technology solutions provider, offering proprietary full front end enrolment, hour bank and mobile access capabilities, combined with state of the art claims adjudication and full provider network coverage. These combined capabilities allow NexgenRx to provide complete proprietary solutions to plan sponsors that need sophisticated front end administration and health benefit technology applications, all in a cost- effective manner. 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. In particular, forward-looking information in this press release includes, but is not limited to continued positive earnings and profitability. 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
President and CEO
Kelly Ehler CPA, CA
Chief Financial Officer
SOURCE: NexgenRx Inc.