Business
NexgenRx Announces 2020 Q1 Interim Results
TORONTO, ON / ACCESSWIRE / May 11, 2020 / NEXGENRX INC. (TSXV:NXG) ("NexgenRx" or the "Compa...
About this update from Nexgenrx Inc.
[{"type":"text","content":"NexgenRx Announces 2020 Q1 Interim ResultsTORONTO, ON / ACCESSWIRE / May 11, 2020 / NEXGENRX INC. (TSXV:NXG) (\"NexgenRx\" or the \"Company\") is pleased to announce its interim financial results for the quarter ended March 31, 2020.Q1 2020 ended on a positive note with new recurring revenue producing a growth rate of 20.62% vs. 2019, however the effects of COVID-19, with the lockdown starting March 16th, began impacting revenue immediately and continues to drag down the Company's revenue. First quarter net income of $284,591, representing an increase of $176,614 over the first quarter of the prior year. First quarter EBITDA of $589,893 represented an increase of $204,906 over the first quarter of the prior year. As soon as the COVID-19 lockdowns began, the Company instituted its disaster containment strategy, made up of 3 distinct phases; Mobilize, Stabilize and Strategize.The Company immediately exercised its Mobilize phase and had all staff working remotely as of March 17th. On March 25th, the Company exercised the first part of its Stabilize phase by forming a Business Continuity Plan (BCP) team that meet every Monday, Wednesday and Friday mornings to manage the changes that were occurring in real-time. By immediately cutting expenses to match projected reduced revenue, the Company was able to stay ahead of the curve while still maintaining optimal operations efficiencies. As the Company continues to move forward it is progressing into its Strategize phase, where it will seek opportunities for further efficiencies and growth.The Company continuously evaluated the eligibility criteria for the newly enacted Canada Emergency Wage Subsidy (CEWS) program. After many iterations, the program finally crystalized into three qualifying periods (and now reportedly a fourth period has been added). The Company did not qualify for the first period but will qualify for the second period that runs from April 12 - May 9. Management believes that the Company will automatically qualify for the 3rd period as a result.The effect of the COVD-19 pandemic on the first quarter ended March 31, 2020 saw an overall slight decline in dental and extended health care (EHC) transactions. Combined revenue in dental and EHC dropped by 8.7% compared to the same period last year. Because pharmacies are deemed essential and have remained open, the performance o...