Nova Leap Health Corp. Posts Record Revenues for First Quarter 2021

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HALIFAX, Nova Scotia, May 06, 2021 (GLOBE NEWSWIRE) -- NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a home health care organization ranked #2 on the 2020 Report on Business ranking of Canada’s Top Growing Companies, is pleased to announce the release of financial results for the first quarter ended March 31, 2021. All amounts are in United States dollars unless otherwise specified.

Nova Leap First Quarter of 2021

Highlights for the first quarter ended March 31, 2021 included the following:

President & CEO’s Comments

“I’ll share a few comments that I believe are relevant as I reflect on our Q1 results”, said Chris Dobbin, President & CEO of Nova Leap. “I am very pleased that the Company was able to attract such high caliber directors in Marie Mullally and Anne Whelan. It is a testament to our team, the industry in which we operate and those we serve that they are willing to make such a commitment to Nova Leap’s success moving forward.

During Q1, Nova Leap forced conversion of a substantial portion of outstanding convertible debt which improved the Company’s balance sheet, integrated two new acquired businesses from Q4 2020, received analyst coverage for the first time and saw insider buying in the market. Insider ownership of the Company sits just below 40%. I view these as positives for all stakeholders.

I believe there are two financial items of importance that warrant special attention. First, our U.S. operations qualified for the ERC in Q1. As a result, we anticipate that the Company will receive approximately $3.1 million over the course of the next several months. We intend to put these funds to use in support of our U.S. operations with continued hiring and expansion in the U.S.

Second, Nova Leap achieved record quarterly revenues. With the vaccine rollout across the U.S., we began to see a positive trend through Q1 with Nova Leap’s March revenues the highest monthly revenues in the Company’s history. It was a good way to end the quarter as we entered Q2. Much like we saw a direct correlation between a decrease in client service hours during the early days of the pandemic in 2020, it appears that there is a direct correlation between the positive impacts of the vaccine rollout with an increase in demand for services. In fact, there has been such an increase in demand for services that our agencies are struggling to meet the demand. The biggest challenge across the industry remains achieving increased staffing levels. I have no doubt that home care is viewed with increased importance as a result of the pandemic.”     

This news release should be read in conjunction with the unaudited condensed interim consolidated financial statements for the three and nine months ended September 30, 2020, 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 #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 7 different U.S. states within the New England, South- Central and Midwest regions as well as Nova Scotia, Canada.

NON-GAAP MEASURES:

Earnings before interest, taxes, depreciation and amortization (“EBITDA”), is calculated as income (loss) from operating activities plus amortization and depreciation and stock-based compensation.

Adjusted net income is net income adjusted for stock-based compensation expense, acquisition expenses, foreign exchange gains/losses, restructure charges, and severance and other costs.

FORWARD LOOKING INFORMATION:

Certain information in this press release may contain forward-looking statements, such as statements regarding future expansions and cost savings, expected forgiveness of PPP loans, timing of receipt of ERC, qualification for and amount of ERC for Q2 2021, and plans regarding future acquisitions and business growth. This information is based on current expectations and assumptions, including assumptions 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, 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. 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.