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;https://www.globenewswire.com/NewsRoom/AttachmentNg/2d8b6d2d-c14a-48df-b11e-65c95f0e5330
- 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); https://www.globenewswire.com/NewsRoom/AttachmentNg/a7d7c51e-5db9-440e-9502-b43669a06b1f
- 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.
NON-IFRS MEASURES:
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.
FORWARD LOOKING
INFORMATION:
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 www.sedar.com.
CAUTIONARY STATEMENT:
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.
For further information:
Chris Dobbin, CPA, CA, ICD.D
Director, President and CEO
T: 902 401 9480
E:cdobbin@novaleaphealth.com
Nova Leap Health (TSXV:NLH)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Nova Leap Health (TSXV:NLH)
Historical Stock Chart
Von Dez 2023 bis Dez 2024