TORONTO, ON / ACCESSWIRE / May 26, 2021 / NEXGENRX INC. (TSXV:NXG) ("NexgenRx" or the "Company") is pleased to announce its interim financial results for the first quarter ended March 31, 2021, which continue to build upon the Company's 2020 results, which showed record growth in both EBITDA and net profit. For Q1 2021, the Company recorded EBITDA of $693,699, representing an increase of $103,806 over same prior year period and continuing the positive trend from 2020. In spite of the COVID-19 lockdown in Ontario, the Company saw only a slight drop of $71k in revenue in Q1 2021 (as compared to Q4 2020), with net income for the quarter of $362,111, representing an increase of $77,520 over Q1 2020.
During the most recently completed quarter, the Company generated increased EBITDA and shareholder free cash flow, operated effectively and safely through the pandemic, paid down debt and further lowered costs. Management has emphasized keeping the Company's costs low, while looking for further cost-reduction opportunities. These efforts have shown their value in the Company's ability to generate additional shareholder value.
The effective cost containment measures resulted in a reduction of $301,141 or 13.15% in operating expenses compared to same prior year period, contributing to the Company's positive cash flow. These results have been achieved while ensuring that NexgenRx customers continue to receive the level of services they expect, while keeping the Company's expenses under control.
The Company continues to make significant advances with its technology. Its major .NET project re-write was completed on time and on budget. As a result, the Company's new NexSys® technology platform will be implemented in Q2. These projects represent an investment of more than $2.5 million, which has been funded with internally generated cash flow. In addition, the Company has completed development and implementation of the new version of its H-Proxy EDI Transaction monitor, adding significant capacity to manage sequential transactions volumes from across the network.
The Company generated adequate cashflow to fund all of these investments and financial obligations during the first quarter. 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 is committed to take all necessary steps to keep revenue and expenses aligned to maintain the continued financial success of the Company.
"We are pleased to report another quarter of positive financial results. These results continue to build on our record setting EBITDA and net profit growth from 2020. With the significant cost savings that we have managed and the retirement of all outstanding debt, we expect to be well positioned to continue to expand on the delivery of value to our shareholders and customers" stated Ron Loucks, President & CEO.
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.