Nova Leap Health Corp. Posts Q1 2024 Results

Nova Leap Health Corp. Posts Q1 2024 Results

Press Release – May 9, 2024 (83 downloads)


HALIFAX, May 9, 2024 – 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 March 31, 2024. All amounts are in United States dollars unless otherwise specified.

Nova Leap Q1 2024 Financial Results

Financial results for the first quarter ended March 31, 2024 include the following:

  • Q1 2024 revenues of $6,429,721 decreased by 1.9% relative to Q4 2023 revenues of $6,551,865 and were higher than Q1 2023 revenues of $6,396,076 by 0.5

  • Q1 2024 Adjusted EBITDA of $361,802 was a decrease of 36.7% over Q4 2023 Adjusted EBITDA of $571,270 and an increase of 321% over Q1 2023 Adjusted EBITDA of $86,025 (see calculation of Adjusted EBITDA below).
  • Adjusted EBITDA for the 12-month period from Q2 2023 to Q1 2024 was $1,753,348.

  • Gross profit margin as a percentage of revenues remained strong at 38.0% in Q1 2024. Gross profit margin percentage was 39.8% in Q4 2023 and 35.2% in Q1 2023.
  • The Company generated income from operating activities in Q1 2024 of $186,709, an increase of $369,573 from Q1 2023 and a decrease of $131,165 from Q4 2023.
  • The Company recorded net income of $473,073 in Q1 2024 as compared to a net loss of $954,657 in Q4 2023 and a net loss of $296,876 in Q1 2023.
  • The Company generated cash flow from operating activities of $374,304 in Q1 2024 compared to $555,093 in Q4 2023 and $294,327 in Q1 2023.
  • The Company had no bank debt repayments in Q1 2024 as all bank debt was repaid in Q4 2023.
  • The Company had available cash of $1,116,762 as of March 31, 2024 as well as full access to the unutilized revolving credit facility of $1,107,011 (CAD$1,500,000). The cash balance increased by $221,997 from December 31, 2023.
  • On April 25, 2024, the Company executed a definitive agreement to acquire the business assets of a home care services company located in Massachusetts, United States.  Under the terms of the agreement, the acquisition is for total consideration of $300,000 of which $250,000 is payable with cash on closing and $50,000 by way of a promissory note repayable over a two-year period.  The acquisition was completed on May 3, 2024.

President & CEO’s Comments

 “This was a steady quarter for the Company as we re-engaged our acquisition program”, said Chris Dobbin, President & CEO of Nova Leap.  “Following the repayment of all bank debt in Q4 2023, we continued to focus on operations and building cash while entering into discussions regarding acquisition opportunities.  Those discussions led to the first acquisition of 2024, the closing of which was announced on May 6, 2024.

As the Company has no bank debt and has been generating positive cash flows, we continue to examine additional acquisition opportunities.”      

This news release should be read in conjunction with the Unaudited Condensed Interim Consolidated Financial Statements for the three months ended March 31, 2024 and 2023 including the notes to the financial statements and Management’s Discussion and Analysis dated May 9, 2024, 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.

Annualized Adjusted EBITDA is calculated as actual Adjusted EBITDA 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