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Nova Leap earns $380,353 (U.S.) in Q3

2023-11-09 16:38 ET - News Release

Mr. Chris Dobbin reports


Nova Leap Health Corp. has released its financial results for the quarter ended Sept. 30, 2023. All amounts are in U.S. dollars unless otherwise specified.

Nova Leap Q3 2023 financial results

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

  • Q3 2023 revenues of $6,553,724 decreased by 1.9 per cent relative to Q2 2023 revenues of $6,677,360 and were lower than Q3 2022 revenues of $7,141,654 by 8.2 per cent.
  • Nova Leap is reporting the highest quarterly adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in company history for the second consecutive quarter.
  • Q3 2023 adjusted EBITDA of $434,192 was an increase of 12.5 per cent over Q2 2023 adjusted EBITDA of $386,084 and an increase of 33.4 per cent over Q3 2022 adjusted EBITDA of $325,497.
  • 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 per cent from Q2 2023 and 66.1 per cent from Q3 2022.
  • Gross profit margin as a percentage of revenues increased for the third consecutive quarter to 37.4 per cent in Q3 2023 from 36.8 per cent in Q2 2023.
  • Head office and operations management expense decreased by $157,325 in Q3 2023 as compared with Q3 2022 and $18,779 as compared with Q2 2023 due to the elimination of targeted support functions in head office and the decisions undertaken by management since Q3 2022 to streamline U.S. 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 with a net loss of $183,501 in Q2 2023 and a net income of $549,374 in Q3 2022.
  • The company had available cash of $1,106,751 as of Sept. 30, 2023, as well as full access to the unutilized revolving credit facility of $1,109,467 ($1.5-million (Canadian)). The cash balance increased by $218,494 from June 30, 2023.

President and chief executive officer's comments

"This was another strong quarter for the company," said Chris Dobbin, president and chief executive officer 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 per cent 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 $1.6-million ($2.2-million (Canadian)). 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 per cent.

"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 Sept. 30, 2023, and Sept. 30, 2022, including the notes to the financial statements and management's discussion and analysis, dated Nov. 9, 2023, which have been filed on SEDAR+.

About Nova Leap Health Corp.

Nova Leap is an acquisitive home health care services company operating in one of the fastest-growing industries in the United States and Canada. The company performs a vital role within the continuum of care with an individual and family-centred focus, particularly those requiring dementia care. Nova Leap achieved the No. 42 ranking on the 2021 Report on Business ranking of Canada's Top Growing Companies, the No. 2 ranking on the 2020 Report on Business ranking of Canada's Top Growing Companies and the No. 10 ranking in the 2019 TSX Venture 50 in the clean technology and 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.

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