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Nova Leap Health Corp
Symbol NLH
Shares Issued 86,309,252
Close 2024-03-07 C$ 0.205
Market Cap C$ 17,693,397
Recent Sedar Documents

Nova Leap has 2023 operating income of $460,152 (U.S.)

2024-03-07 18:56 ET - News Release

Mr. Chris Dobbin reports

NOVA LEAP HEALTH CORP. POSTS RECORD FOURTH QUARTER AND 2023 ANNUAL FINANCIAL RESULTS

Nova Leap Health Corp. has released financial results for the year ended Dec. 31, 2023. All amounts are in United States dollars unless otherwise specified.

Nova Leap Q4 2023 and year-end financial results

Financial results for the three and 12 months ended Dec. 31, 2023, include the following:

  • 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $1,477,571 ($2.0-million (Canadian)) is the highest in the company's history and represents a 124.45-per-cent increase over 2022 adjusted EBITDA of $658,322.
  • Nova Leap is reporting the highest quarterly adjusted EBITDA in company history for the third consecutive quarter.
  • Q4 2023 adjusted EBITDA of $571,270 ($778,014 (Canadian)) was an increase of 31.57 per cent over Q3 2023 adjusted EBITDA of $434,192 and a 701-per-cent increase over Q4 2022 adjusted EBITDA of $71,313.
  • Gross profit margin as a percentage of revenues increased to 37.3 per cent in 2023 from 35.4 per cent in 2022. Gross profit margin was 39.8 per cent in Q4 2023, 37.4 per cent in Q3 2023 and 35.6 per cent in Q4 2022.
  • The U.S. operating segment achieved record annual adjusted EBITDA in 2023. Adjusted EBITDA of $2,341,427 for the U.S. operating segment was 73.0 per cent higher than 2022.
  • Q4 2023 adjusted EBITDA for the U.S. operating segment of $753,510 was the highest in the company's history, an increase of 11.5 per cent from Q3 2023 and 203.3 per cent from Q4 2022.
  • Head office and operations management expense decreased by $746,855 in 2023 as compared with 2022 due to the elimination of targeted support functions in head office and management's efforts since Q3 2022 to streamline the United States operations.
  • In 2023, Nova Leap achieved positive annual operating income for the first time in the company's history. Operating income of $460,152 in 2023 was a $1,522,262 improvement over a 2022 operating loss of $1,062,110. Operating income of $317,874 in Q4 2023 was an improvement of $109,394 from Q3 2023 and $639,298 from Q4 2022.
  • 2023 annual revenues of $26,179,000 ($35.3-million (Canadian)) decreased 7.18 per cent from 2022 revenues of $28,205,000;
  • Q4 2023 revenues of $6,551,865 decreased by 3.37 per cent relative to Q4 2022 revenues of $6,780,083 and were consistent with Q3 2023 revenues of $6,553,724.
  • During 2023, goodwill impairment losses of $1,502,562 were recorded in one of the company's U.S. agencies, including $1,151,995 recorded in Q4 2023. The impairment losses are based on the loss of client service hours and the expected longer recovery time to previous revenue levels.
  • The company recorded a net loss of $954,657 in Q4 2023 as compared with net income of $380,353 in Q3 2023 and a net loss of $970,395 in Q4 2022.
  • The corporation had cash and cash equivalents of $894,765 as of Dec. 31, 2023, as well as full access to the unutilized revolving credit facility of $1,134,130 ($1.5-million (Canadian)).
  • During Q4 2023, the corporation fully repaid the balance of all outstanding demand loans and two promissory notes, leaving a balance outstanding of $117,509 in promissory notes at Dec. 31, 2023. Total liabilities decreased by $2,567,686 between Dec. 31, 2022, and Dec. 31, 2023, largely driven by repayments of demand loans and promissory notes.

This news release should be read in conjunction with the annual audited consolidated financial statements for the year ended Dec. 31, 2023, and 2022 including the notes to the financial statements and management's discussion and analysis dated March 7, 2024, 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. 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.

We seek Safe Harbor.

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