Nova Leap Health Corp. Posts Record Adjusted EBITDA for Third Quarter 2022

Press Release – November 10, 2022 (488 downloads)


HALIFAX, November 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 quarter ended September 30, 2022. All amounts are in United States dollars unless otherwise specified.

Nova Leap Q3 2022 Financial Results

Financial results for the third quarter ended September 30, 2022 include the following:

  • Q3 2022 revenues were the 2nd highest in the Company’s history;
  • Q3 2022 revenues of $7,141,654 increased by 2.2% relative to Q2 2022 revenues of $6,986,758 and were 35.7% higher than Q3 2021 revenues of $5,263,242;

  • Q3 2022 Adjusted EBITDA was the highest is the Company’s history;
  • Q3 2022 Adjusted EBITDA increased to $325,497 from $33,950 in Q2 2022 and $59,100 in Q3 2021 (see calculation of Adjusted EBITDA below); 

  • Gross profit margin as a percentage of revenues remained strong at 35.7% in Q3 2022, an increase from gross profit margin of 35.4% in Q2 2022;
  • The loss from operating activities in Q3 2022 decreased to $110,974 from $237,184 in Q3 2021 and $430,883 in Q2 2022;
  • The Company recorded net income of $549,070 in Q3 2022 as compared to $1,259,384 in Q3 2021. Net income was positively impacted in Q3 2021 by COVID-19 relief programs income which increased net income by $1,535,865 (net of estimated related income taxes of $335,400);
  • During Q3 2022, the Company closed a non-brokered private placement, through the issuance of 6,814,445 common shares at a price of CAD$0.35 per share for gross proceeds of $1,818,432 (CAD$2,385,056). Insiders subscribed to 82.18% of the private placement;
  • The Company collected $917,474 of the Covid-19 ERC receivable during Q3 2022. The funds were used to reduce the outstanding balance of the non-revolving demand loan from $1,600,000 to $640,000 as of September 30, 2022; and
  • The Company had available cash of $2,207,432 as of September 30, 2022 as well as full access to the unutilized revolving credit facility of $1,094,331 (CAD$1,500,000).

President & CEO’s Comments

“Q3 was a solid quarter and one in which we saw significant improvement over Q2”, said Chris Dobbin, President & CEO of Nova Leap.  “The combination of an improved top line obtained through organic revenue growth and the implementation of operational efficiencies led to the Company’s best ever quarterly Adjusted EBITDA and second best quarterly revenues. 

Gross margins continued to expand over prior periods, demonstrating the Company’s ongoing pricing power while operating in an inflationary environment.

The Canadian operating segment continued to produce excellent results, achieving a record for quarterly Adjusted EBITDA in its functional currency. There was notable improvement in the U.S. operating segment in Q3 with Adjusted EBITDA increasing 57.7% quarter over quarter and head office costs as a percentage of revenues decreasing significantly to 3.7% of revenues because of the elimination of the targeted support functions referenced in my Q2 remarks.  We demonstrated meaningful improvement across both operating segments while reducing head office costs.  The changes we implemented during Q2 are working and the outcome for Q3 is record results, including an expanded consolidated Adjusted EBITDA margin.  We remain very focused on continued enhancements to the business where we see opportunities for improvement.

While we made noted improvements to the business described above, we also took the opportunity to extinguish approximately half of the Company’s outstanding bank debt while simultaneously increasing the Company’s cash position. Once the remaining ERC receivable is collected and applied to the outstanding debt, the demand loan balance will fall below $900K.  By the end of 2023, we are expecting the outstanding balance on existing demand loans to be approximately $265,000.

Insiders, including management and board directors, led a non-brokered private placement which resulted in an increase in insider ownership, which currently sits at approximately 38.8%.  This was in addition to the open market purchases that occurred during the quarter.  Insiders continued to make significant investments in the Company and no insider has sold a single share since incorporation.

In summary, we exited Q3 as a leaner operation compared to Q2 and in a stronger financial position which allows us to continue focusing on organic growth initiatives, evaluating acquisition opportunities and further operational improvements.” 

This news release should be read in conjunction with the Unaudited Condensed Interim Consolidated Financial Statements for the three and nine months ended September 30, 2022 and 2021 including the notes to the financial statements and Management’s Discussion and Analysis dated November 10, 2022, 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 in Nova Scotia, Canada.


This release contains references to certain measures that do not have a standardized meaning under IFRS as prescribed by the International Accounting Standards Board (“IASB”) and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management’s perspective. Accordingly, non-IFRS financial measures should not be considered in isolation or as a substitute for analysis of financial information reported under IFRS. The Company presents non-IFRS financial measures, specifically Adjusted EBITDA (as such term is hereinafter defined), as well as supplementary financial measures such as annualized revenue. The Company believes these non-IFRS financial measures are frequently used by lenders, securities analysts, investors and other interested parties as a measure of financial performance, and it is therefore helpful to provide supplemental measures of operating performance and thus highlight trends that may not otherwise be apparent when relying solely on IFRS financial measures.

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

Annualized revenue is calculated as actual revenue extrapolated from the beginning of the year or date of acquisition over 365 days.
The reconciliation of Adjusted EBITDA to the loss from operating activities is as follows:


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 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:
Christopher 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