Nova Leap Health Corp. Posts Record Revenues for Second Quarter 2021

Press Release – August 5, 2021 (933 downloads)


HALIFAX, August 5, 2021 – NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a home health care organization ranked #2 on the 2020 Report on Business ranking of Canada’s Top Growing Companies, is pleased to announce the release of financial results for the second quarter ended June 30, 2021.  All amounts are in United States dollars unless otherwise specified.

Nova Leap Second Quarter of 2021

Highlights for the second quarter ended June 30, 2021 included the following:

  • Second quarter revenues were the highest in the Company’s history;

  • Q2 2021 revenues of $5,085,445 increased by 1.3% relative to Q1 2021 revenues of $5,020,139 and were 27.7% higher than Q2 2020 revenues of $3,983,402;

  • The Company had a cash balance of $6,455,062 as of June 30, 2021, the highest in the company’s history, as well as full access to the unutilized revolving credit facility of $825,000;

  • Nova Leap’s U.S. operating segment qualified for the Employee Retention Credit (“ERC”) again in the second quarter of 2021 and has recognized $1,698,283 in Other Income with a corresponding receivable. The U.S. operating segment has a total amount receivable for the ERC of $3,253,714 with the timing of collection unknown given the current backlog.

  • Q2 2021 Adjusted EBITDA of $42,974, which excludes government assistance programs, was higher than Q1 2021 Adjusted EBITDA of ($38,692) and lower than Q2 2020 Adjusted EBITDA of $158,701.

  • In Q2 2021, a goodwill impairment was recorded in the US-NH/VT Cash Generating Unit (“CGU”) of $605,682. Although management’s outlook for the business over the long-term remains consistent with its position taken during the acquisition, the time required for new leadership to integrate and implement plans, the ongoing impact of COVID-19 on the CGU, including the impact on hiring caregivers, the slow-down of the vaccines uptake and on-going restrictions has resulted in a further impairment. A goodwill impairment of $800,000 was recognized in this CGU in Q2 2020.

  • The Company reported Net Income of $345,470 for Q2 2021 as compared to Net Loss of ($791,163) for Q2 2020 and Net Income of $882,189 for Q1 2021.

  • The Company reported an Adjusted Net Loss of ($242,804) for Q2 2021 as compared to an Adjusted Net Loss of ($72,146) for Q2 2020 and an Adjusted Net Loss of ($196,132) for Q1 2021 (see reconciliation of adjusted net (loss) income to net (loss) income in “Summary of Quarterly Results” section in the Q2 2021 MD&A).

President & CEO’s Comments
“As I tend to do each quarter, I will provide summary comments that I feel are relevant to investors”, said Chris Dobbin, President & CEO of Nova Leap.  “In one of those unusual quarters without an acquisition, I was pleased to see continued top line revenue growth and Adjusted EBITDA trending in the right direction.

Mid-quarter, we closed a CAD$5.5 million non-brokered financing.  It was our largest financing to date and one that attracted a great deal of interest.  I believe this is a sign of not only how far the Company has come but also of investors’ expectations of where the Company is headed in the future.

The $1.698 million to be received by way of the ERC will be put to good use as we continue to invest in U.S. operating segment personnel.

While we raised funds to fuel our anticipated growth, we also continued to focus on our balance sheet by notifying the remaining convertible debt holders that the Company was forcing conversion.  I believe those who participated in the convertible debt rounds in late 2019 and 2020 must be quite happy with their decision to invest.

While we didn’t close an acquisition in Q2, that shouldn’t be taken as a belief that we weren’t active in evaluating opportunities.   We raised funds with a view that we would be in a good position to deploy the capital in a meaningful way.  We have evaluated several opportunities and I believe we will be quite active the remainder of the year.  We recently announced the closing of a New England based business.  This is an expansion of our current business in Rhode Island to a new area within the state.  In addition, we also recently announced the signing of a definitive agreement to acquire a business in Oklahoma as we continue our expansion in the South Central region of the U.S.

One area of disappointment has been the goodwill impairment.  We do have one business unit that has not met our expectations.  While acquiring turnaround situations is inherently difficult, and while certain progress has been made, we felt that the time it will take to achieve our expected results warranted an impairment at this time.

Finally, while our Canadian operating segment has remained strong, the U.S. operating segment continues to make strides toward our objective of obtaining pre-COVID Adjusted EBITDA margins.  Over the past two quarters, U.S. operating segment Adjusted EBITDA has increased from 4.16% in Q4 2020 to 7.49% in Q2 2021”

This news release should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2021, notes to the financial statements, and management’s discussion and analysis, which have been filed on SEDAR.

About Nova Leap
Nova Leap is an acquisitive home health care services company operating in one of the fastest-growing industries in the U.S. & Canada.  The Company performs a vital role within the continuum of care with an individual and family centered focus, particularly those requiring dementia care.  Nova Leap achieved the #2 ranking on the 2020 Report on Business ranking of Canada’s Top Growing Companies and the #10 Ranking in the 2019 TSX Venture 50™ in the Clean Technology & Life Sciences sector.  The Company is geographically diversified with operations in 7 different U.S. states within the New England, South- Central and Midwest regions as well as Nova Scotia, Canada.

Adjusted Earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), is calculated as income (loss) from operating activities plus amortization and depreciation and stock-based compensation expense.

Adjusted net income is net income adjusted for stock-based compensation expense, acquisition expenses, foreign exchange gains/losses, restructure charges, and severance and other costs.

Certain information in this press release may contain forward-looking statements, such as statements regarding future expansions and cost savings, timing of receipt of ERC, and plans regarding future acquisitions and business growth. This information is based on current expectations and assumptions, including assumptions concerning general economic and market conditions, availability of working capital necessary for conducting Nova Leap’s operations, availability of desirable acquisition targets and financing to fund such acquisitions, and Nova Leap’s ability to integrate its acquired businesses and maintain previously achieved service hour and revenue levels, that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Risks that could cause results to differ from those stated in the forward-looking statements in this release include the impact of the COVID-19 pandemic or any recurrence, including government regulations or voluntary measures limiting the Company’s ability to provide care to clients (such as shelter-in-place orders, isolation or quarantine orders, distancing requirements, or closures or restricted access procedures at facilities where clients reside), increased costs associated with personal protective equipment and sanitization supplies, staff and supply shortages, regulatory changes affecting the home care industry, other unexpected increases in operating costs and competition from other service providers. All forward-looking statements, including any financial outlook or future-oriented financial information, contained in this press release are made as of the date of this release and included for the purpose of providing information about management’s current expectations and plans relating to the future. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company’s filings with the Canadian securities regulators, which filings are available at

For further information:
Christopher Dobbin, CPA, CA,
Director, President and CEO Nova Leap Health Corp.,
T: 902 401 9480   F:  902 482 5177

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 this release.


7071 Bayers Road, Suite 3006
Halifax, Nova Scotia Canada B3L 2C2


Chris Dobbin
President & CEO