Nova Leap Health Corp. Posts Record Revenues for Fourth Quarter and 2021 Annual Financial Results

Press Release – March 10, 2022 (594 downloads)


HALIFAX, March 10, 2022 – NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a growing home health care organization, is pleased to announce the release of financial results for the year ended December 31, 2021. All amounts are in United States dollars unless otherwise specified.

Nova Leap Fourth Quarter and Year End Financial Results

Financial results for the three and twelve months ended December 31, 2021 include the following:

  • 2021 annual revenues of $21.279 million were the highest in the Company’s history and represents a 22.9% increase from 2020 revenues of $17.309 million;
  • Q4 2021 revenues of $5.910 million were the highest in the Company’s history and represents a 12.3% increase from Q3 2021 revenues of $5.263 million and a 31.8% increase from Q4 2020 revenues of $4.484 million;

  • The Company recorded the sixth consecutive quarter of revenue growth and fourth consecutive quarter of record revenues;

  • The Company closed three acquisitions in December 2021. As a result, record revenues are anticipated again for Q1 2022;

  • While there are generally some small quarter to quarter changes in gross margin, gross margin for the full year 2021 remained at 33.9%, consistent with 2020;
  • Q4 2021 Adjusted EBITDA, which excludes government assistance programs, decreased to negative $58,894 in Q4 2021 from negative Adjusted EBITDA of $36,515 in Q4 2020 and positive $59,100 in Q3 2021 (See calculation of Adjusted EBITDA in “Segmented Information” section in the MD&A);

  • Nova Leap’s U.S. operating segment qualified for the Employee Retention Credit (“ERC”) for the first three quarters in 2021 and recognized $5.102 million in Other Income. Of this amount, $1.772 million remains outstanding;

  • The Company reported Net Income of $1.760 million for 2021 as compared to $1.256 million for 2020;

  • The Company reported Net Loss of $726,330 as compared to Net Income of $1.259 million for Q3 2021 and Net Income of $1.236 million for Q4 2020. The Net Loss for Q4 2021 is a result of the retroactive end to the ERC program for Q4 2021 therefore the Company received no funds for that quarter;

  • The Company reported an Adjusted Net Loss of $234,577 for Q4 2021 as compared to an Adjusted Net Loss of $305,638 for Q3 2021 and an Adjusted Net Income of $719,092 for Q4 2020 (see reconciliation of Adjusted Net Income (Loss) to net income (loss) in “Summary of Quarterly Results-Reconciliation of non-IFRS measure” in the MD&A). The Adjusted Net Income for Q4 2020 was higher as a result of the initial recognition of a deferred income tax asset of $865,854 related to loss carry forwards;

  • The Company had a cash balance of $1.733 million as of December 31, 2021, as well as full access to the unutilized revolving credit facility of $1.183 million (CAD$1.5 million);

President & CEO’s Comments
“On the heels of International Women’s Day, I would like to start by recognizing the incredible women at Nova Leap that have created an environment of continued success.”, said Chris Dobbin, President & CEO of Nova Leap. “With the exception of my own role, Nova Leap is an organization led by women at every level across two countries.  The most senior people across primary functions and regions are all women, many of whom have been promoted and taken on roles with increased responsibility as we have continued to expand.  While the last couple of years have been challenging, particularly with staffing, our ability to successfully navigate the pandemic has been directly related to women leadership.

During the year, we continued with our strategy of expanding within existing markets while also expanding to new markets where we saw compelling opportunities.  We have aggressive expansion plans this year and in the coming years.

While the Omicron variant impacted our short term financial results in Q4, we ended the year with a lot of momentum which we believe will yield strong long term results.  Nova Leap set record quarterly and annual revenues once again and we acquired three businesses in December which positioned us well as we entered the new year.  We expect 2022 to be a transformational year and one that will yield record revenues and adjusted EBITDA. 

It’s one thing to record revenues for accounting purposes and it’s another to collect on the receivables.  Nova Leap continued its history of excellent accounts receivable collection while improving from 99.8% in 2019 and 2020 to 99.9% in 2021. 

With 2021 net income of $1.760 million, financial results were the best in the Company’s history.  However, the most significant government program designed to assist companies with employee retention during the pandemic was retroactively eliminated to the end of Q3. The ERC funds received during the year allowed the Company to remain patient in certain areas that had experienced a greater impact during the pandemic.    

The three acquisitions made during December were significant for the Company.  As noted in previous press releases, these businesses were producing approximately $9.3 million in annualized revenues and more than $1.3 million in adjusted EBITDA.  To date, these acquisitions have gone as planned and we have been pleased with the results.

Our acquisition pipeline continues to be full of compelling opportunities and it is our intention to act on several of these opportunities during the year.  The demand for home care will continue to increase for several decades given the ageing population demographics and it is our intent to position Nova Leap as a leader in the industry.

I will refer, as I have in the past, to insider buying.  I believe, when insiders acquire shares of Nova Leap in the open market, that is a sign of the confidence they hold in our long term strategy and the trajectory of the business. During Q4, several insiders continued to acquire shares in the open market at prices well above the current price and insiders continue to hold more than 36% of the Company’s outstanding shares.  Again, I believe this demonstrates a meaningful commitment to the Company’s long-term strategy and, as I have alluded to in past commentary, best aligns potential future outcomes with those responsible for making important decisions.”

Further information on the assumptions and risks associated with our target financial metrics is included below under the heading “Forward Looking Information”.

This news release should be read in conjunction with the annual audited consolidated financial statements for the year ended December 31 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 #42 ranking on the 2021 Report on Business ranking of Canada’s Top Growing Companies, 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 11 different U.S. states within the New England, Southeastern, 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.  The most directly comparable IFRS measure is operating income (loss).

Adjusted Net Income (Loss) is net income (loss) excluding stock-based compensation expense, acquisition related expenses, foreign exchange gains (losses), impairment losses net of estimated related income taxes, severance and other non-recurring costs as well as COVID-19 relief programs income net of estimated related income taxes. The most directly comparable IFRS measure is net income (loss).

Annualized revenue and annualized EBITDA are calculated as actual revenue or EBITDA extrapolated from the beginning of the year or date of acquisition over 365 days.

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, including the timing of closing recently announced acquisitions, anticipated annualized revenue or annualized recurring revenue run rate growth and anticipated consolidated Adjusted EBITDA margins. This information is based on current expectations and assumptions, including assumptions described elsewhere in this release and those 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 or government programs utilized by the Company (such as ERC), 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, and these statements may not be appropriate for other purposes. 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:
Chris Dobbin, CPA, CA, ICD.D
Director, President and CEO
T: 902 401 9480   

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