TORONTO, ON / ACCESSWIRE / November 29, 2022 / NEXGENRX INC. ("NexgenRx" or the "Company") is pleased to announce its interim financial results for the third quarter ended September 30, 2022, highlighted by continued revenue growth, positive EBIDTA and increased free cash flow. During Q3 2022, the Company showed revenue growth of 15.81% over the same period last year. Revenue for the third quarter was $3,317,358 and $9,401,460 year-to-date. The Company continued to achieve a positive EBITDA of $280,638 and shareholder free cash flow in Q3 2022. EBITDA in Q3 2022 was smaller compared to prior period last year as a result of costs associated with client growth initiatives. With new client commitments, the Company anticipates that additional increased revenue will contribute continued positive financial results in the upcoming quarters. The Company continued to add free cash flow in the quarter, bringing its year-to-date number to $1,993,822, as a result of reduced working capital expenditures and continued cost control measures.
During the third quarter of the year 2022, the Company was busy on organizational matters. Its head office move was completed in July 2022 on schedule, with the new premises representing more than a 60% decrease in the Company's overall office footprint, representing further cost savings and efficiencies (reflecting the Company's successful remote work initiatives). The quarter was very active, and the NexgenRx sales management team engaged many prospective clients with exciting business development initiatives.
The Company carefully evaluated its future cash flow requirements, together with the consideration of two consecutive quarters in increased cash flow, and declared a dividend on September 23, 2022 of $0.005 in respect of all of its outstanding common shares and series 1 preferred shares.
Ron Loucks, President and CEO, stated "the management team continually monitors revenue growth prospects and the Company's cost structure to keep a balance between the Company's push for growth and the resources necessary to accomplish our plans. September year-to-date revenue increased by $972,167 over the prior year, the growth in revenue was partially offset by the investments made upfront to develop and maintain customer relationships. With this process complete, new revenues are expected to be incremental, without any additional significant cost."
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
Kelly Ehler CPA, CA
President and CEO
Chief Financial Officer
SOURCE: NexgenRx Inc.
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