TORONTO, ON / ACCESSWIRE / April 9, 2020 / NEXGENRX INC. (“NexgenRx” or the “Company”) is pleased to announce its annual financial results for the year ended December 31, 2019.
While 2019 ended on a positive note with new recurring revenue producing a growth rate of 33.06%, this positive momentum has been disrupted with the COVID-19 pandemic. This has already and will continue to impact 2020 results.
For 2019, the Company experienced a loss of $207,935, which was an improvement of $488,927 compared to the 2018 loss of $696,862. The fourth quarter net loss of $62,256 reflected the Company’s ongoing investments in prospective clients and technology upgrades. Revenue improved by 33.06% on a year over year basis, of which 16% was driven by new clients and the balance from the integration of MyBenetech and Canadian Benefit Administrators.
Positive EBITDA for the year was $986,969, representing a $1,190,593 improvement over the prior year. With the introduction of accounting standards IFRS 16 affecting the new handling of leases in 2019, the Company’s 2018 EBITDA (based on the new accounting standards) would be adjusted from ($207,935) to ($9,261), reflecting an improvement of $996,230 year over year.
Though NexgenRx exited 2019 on a strong and positive note, the Company has experienced the impact of the COVID-19 pandemic in 2020. NexgenRx generates a significant portion of its revenue through dental and extended health care transactions. With the stay at home policies and government directives closing dental and other health practitioners, Company revenue has declined and is expected to continue at lower levels until governments lift restrictions. As pharmacies are deemed essential and remain open, drug transactions, while lower, have been not been affected significantly as of now.
On March 17th, 2020, NexgenRx successfully implemented its Business Continuity Plan (BCP) and has had all employees working from home since that date. All departments are functioning remotely with no disruption to service. The Company has taken an extraordinary step in reducing salary costs by 20% by asking staff to reduce their work week by 20%. Departments have either reduced their hours per day or taken one day a week to attend to personal matters, the result of which is a reduction in costs while maintaining service levels expected of NexgenRx plan members and health care providers. In addition, temporary layoffs have been implemented as a further step to reduce costs. Government programs will be utilized where possible.
“During these difficult times, I want to commend our staff for providing continued services in processing claims and responding to call centre inquiries. After experiencing positive financial results for the 2019 fiscal year, 2020 is certainly lining up to be a challenge for us all. In spite of the short-term impact that COVID-19 is expected to have, NexgenRx continues to be well positioned to capitalize on the market’s demand for an alternative to the traditional group benefits offerings and we look forward to returning to our path of sustained growth of our business once the COVID-19 pandemic subsides” stated Ron Loucks, President & CEO.
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
Kelly Ehler CPA, CA
SOURCE: NexgenRx Inc.
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