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HALIFAX, Nova Scotia, March 06, 2025 (GLOBE NEWSWIRE) -- 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, 2024. All amounts are in United States dollars unless otherwise specified.
Nova Leap Q4 2024 and Year End Financial Results
Financial results for the three and twelve months ended December 31, 2024 include the following:
2024 Adjusted EBITDA of $1,561,761 is the highest in the Company’s history and represents a 5.7% increase over 2023 Adjusted EBITDA of $1,477,571.
Q4 2024 Adjusted EBITDA of $412,947 was an increase of 8.9% over Q3 2024 Adjusted EBITDA of $379,116. (see calculation of Adjusted EBITDA below).
Gross profit margin as a percentage of revenues increased to 38.4% in 2024 from 37.3% in 2023. Gross profit margin increased to 39.1% in Q4 2024 from 38.0% in Q3 2024.
In 2024, operating income was $863,712, a $403,560 or 87.7% increase over 2023 operating income of $460,152. In Q4 2024, the Company achieved Operating income of $221,184 as compared to $208,110 in Q3 2024 and $317,874 in Q4 2023.
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2024 annual revenues of $25.761 million decreased 1.6% from 2023 revenues of $26.179 million;
Q4 2024 revenues of $6,585,825 were consistent with Q4 2023 revenues of $6,551,865 and were 2.8% higher than Q3 2024 revenues of $6,406,528.
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The Company recorded net income of $886,268 in Q4 2024 as compared to a net loss of $206,871 in Q3 2024 and a net loss of $954,657 in Q4 2023.
The Company had cash and cash equivalents of $1,402,767 as of December 31, 2024, as well as full access to the unutilized revolving credit facility of $1,042,463 (CAD$1,500,000). Cash and cash equivalents increased by $508,002 for the year ended December 31, 2024.
The Corporation had total demand loans and promissory notes outstanding as of December 31, 2024 of $1,664,067, representing a leverage ratio of 1.07 times 2024 Adjusted EBITDA.
Business Acquisitions and Financing:
On May 3, 2024, the Company acquired a home care business located in Massachusetts. The acquisition was for total consideration of $300,000 of which $250,000 was payable with cash on closing and $50,000 by way of a promissory note repayable over a two-year period. The cash paid on closing was financed through existing cash and cash equivalent balances.
During Q4 2024, the Company amended its existing credit agreement with BMO Bank of Montreal, to provide up to an additional $7,000,000 of available credit to support its long-term growth strategy. The facility consists of non-readvanceable demand lines, available as CAD prime and USD base rate loans as well as fixed rate loans determined at the time of borrowing, in addition to the Corporation’s facilities for working capital and day-to-day operating needs. As of the current date, $1,316,000 and CAD$1,380,000 has been drawn and up to $4,691,000 is available in additional demand loans to finance future acquisitions.
On December 14, 2024, the Company acquired a home care business located in Florida. The acquisition was for total consideration of $1,636,000 of which $1,316,000 was payable with cash on closing and $320,000 by way of a promissory note repayable over a three-year period. The cash paid on closing was financed through a non-readvanceable demand loan on the Company’s amended credit agreement.
On January 20, 2025, the Company acquired two affiliated home care businesses in Nova Scotia. The acquisitions were for total consideration of CAD$1,380,000, subject to post-closing working capital adjustments, with the full amount paid with cash on closing. The Company financed the purchases with proceeds of a non-readvanceable demand loan of CAD$1,380,000 issued from the company’s amended credit agreement.
This news release should be read in conjunction with the annual Audited Consolidated Financial Statements for the year ended December 31, 2024 and 2023 including the notes to the financial statements and Management's Discussion and Analysis dated March 6, 2025, 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.
The reconciliation of Adjusted EBITDA to the income from operating activities is as follows:
Three months ended Dec. 31
Q3
Year ended Dec. 31
2024
2023
2024
2024
2023
$
$
$
$
$
Income from operating activities
221,184
317,874
208,110
863,712
460,152
Add back:
Amortization and depreciation
148,358
189,662
146,169
583,695
885,111
Stock-based compensation
43,405
63,734
24,837
114,354
132,308
Adjusted EBITDA
412,947
571,270
379,116
1,561,761
1,477,571
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.sedarplus.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:
