Business
NexgenRx Announces 2020 Year End Results with Record EBITDA and Net Profit
TORONTO, ON / ACCESSWIRE / March 31, 2021 / NEXGENRX INC. (TSXV:NXG) ("NexgenRx" or the "Com...
About this update from Nexgenrx Inc.
[{"type":"text","content":"NexgenRx Announces 2020 Year End Results with Record EBITDA and Net ProfitTORONTO, ON / ACCESSWIRE / March 31, 2021 / NEXGENRX INC. (TSXV:NXG) (\"NexgenRx\" or the \"Company\") is pleased to announce its annual financial results for the year ended December 31, 2020, which show record growth in both EBITDA and net profit. The Company recorded EBITDA for the year of $3,035,108, representing an increase of $2,048,139 over the prior year. Total revenue increased by $1,501,355 or 15.7%, as compared to the prior year.The Company stayed focused on all of its long-term strategic plans during the year ended December 31, 2020. The Company made significant advances with its technology, investing more than $1.4 million in the complete re-write of NexSys®, the Company's claims adjudication system, in .NET, giving the Company a 20+ year horizon on its platform. The Company also retired the $1.2 million balance of sale on its previous acquisition of Canadian Benefit Administrators and MyBenetech. Both of these significant financial events were completed during the year, even with the impact of the pandemic.Despite the many challenges created by COVID-19, including the Company's rapid successful transition to work-from-home, the Company's positive financial results were achieved through its efforts in increasing operational efficiency, as well as effective cost reduction strategies. Notwithstanding the huge drop in transactional revenue in Q2 2020 due to the COVID-19 lockdown, the Company's net income for the year was $2,115,735, representing an increase of $2,323,670 over the prior year.As a result of our drop in revenue, the Company qualified for the Canada Emergency Wage Subsidy (CEWS) program and received $469,380 (classified as other income), which allowed the Company to keep all employees on payroll during the height of the pandemic. Excluding the CEWS assistance, total revenue increased $1,031,974 or 10.8% over the prior year due to net new business generated.Cost cutting measures implemented since the second quarter resulted in a reduction of $790,629 or 9.1% in operating expenses compared to the prior year, which has allowed the Company to remain cash flow positive. The Company is ensuring that its customers continue to receive the level of services that they expect, while keeping its expenses under control.The Company continued t...