Nova Leap Health Corp. Posts Q3 2023 Results Including Record Adjusted EBITDA for 2nd Consecutive Quarter

Nova Leap Health Corp. Posts Q3 2023 Results Including Record Adjusted EBITDA for 2nd Consecutive Quarter

Press Release – November 9, 2023 (161 downloads)


HALIFAX, November 9, 2023 – 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, 2023. All amounts are in United States dollars unless otherwise specified.

Nova Leap Q3 2023 Financial Results

Financial results for the third quarter ended September 30, 2023 include the following:

  • Q3 2023 revenues of $6,553,724 decreased by 1.9% relative to Q2 2023 revenues of $6,677,360 and were lower than Q3 2022 revenues of $7,141,654 by 8.2%.

  • Nova Leap is reporting the highest quarterly Adjusted EBITDA in Company history for the second consecutive quarter.
  • Q3 2023 Adjusted EBITDA of $434,192 was an increase of 12.5% over Q2 2023 Adjusted EBITDA of $386,084 and an increase of 33.4% over Q3 2022 Adjusted EBITDA of $325,497 (see calculation of Adjusted EBITDA below).

  • The U.S. operating segment achieved record quarterly Adjusted EBITDA for the second consecutive quarter.
  • Q3 2023 Adjusted EBITDA for the U.S operating segment of $675,609 was the highest in the Company’s history, an increase of 13.0% from Q2 2023 and 66.1% from Q3 2022.
  • Gross profit margin as a percentage of revenues increased for the third consecutive quarter to 37.4% in Q3 2023 from 36.8% in Q2 2023.
  • Head office and operations management expense decreased by $157,325 in Q3 2023 as compared to Q3 2022 and $18,779 as compared to Q2 2023 due to the elimination of targeted support functions in Head office and the decisions undertaken by management since Q3 2022 to streamline US operations.
  • The Company generated record income from operating activities in Q3 2023 of $208,480, an increase of $319,454 from Q3 2022 and $91,818 from Q2 2023.
  • The Company recorded net income of $380,353 in Q3 2023 as compared to a net loss of $183,501 in Q2 2023 and net income of $549,374 in Q3 2022.
  • The Company had available cash of $1,106,751 as of September 30, 2023 as well as full access to the unutilized revolving credit facility of $1,109,467 (CAD$1,500,000). The cash balance increased by $218,494 from June 30, 2023.

President & CEO’s Comments

“This was another strong quarter for the Company”, said Chris Dobbin, President & CEO of Nova Leap.  “Following the release of record results in Q2, I am pleased to report a further expansion of gross margin percentage along with record quarterly Adjusted EBITDA in our U.S. operating segment and on a consolidated basis. 

Adjusted EBITDA for the first nine months of 2023 is $906,301, an increase of 37.7% over full year 2022 Adjusted EBITDA of $658,322.  More importantly, the average of the past two record quarters represents approximate annualized Adjusted EBITDA of $1.6M (CAD$2.2M).  As I have alluded to in the past, we believe in continuous improvement, and we are working to position the Company for further improved results in the upcoming year.

Our leverage position remains excellent.  Given that the ongoing record financial results has led to improved cash flows, we are planning to extinguish the remaining bank demand loans of approximately $342,000 during Q4 such that all previous bank related acquisition debt will be fully repaid.  As such, the only acquisition related debt expected to remain at the end of 2023 will be approximately $120,000 of promissory notes.

During the quarter, insiders continued to acquire shares in the open market bringing insider ownership to 40%.

In summary, Nova Leap has a dedicated team with a significant and increasing insider ownership percentage, two consecutive quarters of record results, positive operating cash flows and minimal debt. I believe the Company is well positioned moving forward.”    

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, 2023 and 2022 including the notes to the financial statements and Management’s Discussion and Analysis dated November 9, 2023, 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 10 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 and annualized adjusted EBITDA. 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 income from operating activities plus amortization and depreciation and stock-based compensation expense. The most directly comparable IFRS measure is income from operating activities.

Annualized revenue is calculated as actual revenue for a specific period of time extrapolated over 365 days.

The reconciliation of Adjusted EBITDA to the income 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 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 staff and supply shortages, regulatory changes affecting the home care industry or government programs utilized by the Company, 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