TORONTO, ON / ACCESSWIRE / August 18, 2022 / NEXGENRX INC. ("NexgenRx" or the "Company") is pleased to announce its interim financial results for the second quarter ended June 30, 2022, highlighted by continued revenue growth, positive EBIDTA and increased free cash flow. The Company's Q2 revenue was 12.73% higher compared to the same period last year. Revenue for the second quarter was $3,113,202 and $6,287,078 year to date. The Company achieved positive EBITDA of $405,907 and shareholder free cash flow. In Q2, the Company generated increased free cash flow of $399,444, resulting from reduced working capital expenditures and continued cost control measures.
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 its plans. The Company anticipates additional marketing and related expenditures in the following quarter. With this process complete, any new revenues are expected to be incremental without any additional significant cost.
The Company's head office lease was to expire on September 30, 2022. As a result of the Company's current work from home arrangement since March 2020, the management team has taken this opportunity to evaluate the office space requirements. The management team seized this opportunity to move to a significantly smaller office, where the space would align with the Company's current needs. The office relocation to an adjacent building within the West Metro Complex was completed on July 22, 2022. The new address is 191 The West Mall, Suite 905, Toronto, Ontario, Canada. Under international financial reporting standards, the Company recognized the right-of-use assets and lease liability relating to the new office in May, during the relocation fixturing period according to the terms of the amended lease.
"The quarter has been very active with many business development initiatives with prospective clients, and we anticipate our sales efforts to be rewarded over the next two quarters. The Company generated a smaller profit in Q2 compared to prior period last year, as a result of costs associated with client growth initiatives. With new client commitments, we anticipate that additional increased revenue should contribute continued positive financial results in the upcoming quarters" stated Ron Loucks, President and CEO.
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
President and CEO
Kelly Ehler CPA, CA
Chief Financial Officer
SOURCE: NexgenRx Inc.
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