TORONTO, ON / ACCESSWIRE / November 19, 2021 / NEXGENRX INC. ("NexgenRx" or the "Company") is pleased to announce its interim financial results for the third quarter ended September 30, 2021. Despite the continuing uncertainties resulting from the COVID-19 pandemic, the Company continued to generate increased positive EBITDA and free cash flow; operated effectively and safely through the pandemic, lowered costs, and finished the quarter with continued increase in sales.
Despite the surge in COVID-19 cases throughout the third quarter, the Company's Q3 revenue was 8.02% higher compared to the same period in 2020. Net income for the quarter was $429,581, a drop of $80,262 over Q3 2020, mainly due to substantial investments made in the Company's technology platform. Adjusted EBITDA for the quarter was $890,541, representing an increase of $80,422 or 9.9% over the same period in 2020.
Total operating expense was $65,953 or 3.5% higher compared to the same period in 2020, which is attributed to a return to full compensation levels in 2021, as well as the amortization of intangible assets which started in October 2020 when the major .NET (which is the Company's Microsoft software platform) re-write was completed. Management continues to carefully monitor and control all operating expenses.
The Company continues to generate free cashflow to continuously re-invest in its software systems. Management continues to analyze the financial impact of COVID-19, which could continue to have an impact with the recently identified Delta variant. While the full impact and duration of the pandemic continues to remain unknown, Management is committed to taking all necessary steps to keep revenue and expenses aligned to maintain the continued growth and financial integrity of the Company.
"One of our greatest strengths is our efficient low-cost structure. We have emphasized keeping our costs low while also looking for further cost-reduction opportunities, and these efforts have shown their value in our ability to generate increasing EBITDA and additional shareholder value. As a result, we are well positioned for continued growth during the balance of 2021," 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 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
NexgenRx Inc.
President and CEO
416.695.3393 x801
Kelly Ehler CPA, CA
NexgenRx Inc.
Chief Financial Officer
416-695-3393x803
SOURCE: NexgenRx Inc.
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