Nova Leap Health Corp. Posts Q1 2024 Results
09 Mai 2024 - 11:00PM
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.
NON-IFRS AND OTHER
MEASURES:
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
loss from operating activities is as follows:
|
Q1 2024$ |
|
Q1 2023$ |
|
Q4 2023$ |
|
Income from operating activities |
186,709 |
|
(182,864 |
) |
317,874 |
|
Amortization and depreciation |
150,275 |
|
234,027 |
|
189,662 |
|
Stock-based compensation |
24,818 |
|
34,862 |
|
63,734 |
|
Adjusted EBITDA |
361,802 |
|
86,025 |
|
571,270 |
|
FORWARD LOOKING
INFORMATION:
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. 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.
Photos accompanying this announcement are available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/c74787ac-c265-4a8f-9ddd-12b8f33e96a7https://www.globenewswire.com/NewsRoom/AttachmentNg/1c17de01-1695-4ec8-8e11-69de14b28cef
For further information:
Chris Dobbin, CPA, ICD.D
Director, President and CEO
T: 902 401 9480
E:cdobbin@novaleaphealth.com
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