Nova Leap Health Corp. Posts Record Fourth Quarter and 2023 Annual Financial Results


HALIFAX, Nova Scotia, March 07, 2024 (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, 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 twelve months ended December 31, 2023 include the following:

  • 2023 Adjusted EBITDA of $1,477,571 (CAD$ 2.0 million) is the highest in the Company’s history and represents a 124.45% 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 (CAD$778,014) was an increase of 31.57% over Q3 2023 Adjusted EBITDA of $434,192 and a 701% increase over Q4 2022 Adjusted EBITDA of $71,313 (see calculation of Adjusted EBITDA below).

  • Gross profit margin as a percentage of revenues increased to 37.3% in 2023 from 35.4% in 2022. Gross profit margin was 39.8% in Q4 2023, 37.4% in Q3 2023 and 35.6% 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% 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% from Q3 2023 and 203.3% from Q4 2022.

  • Head office and operations management expense decreased by $746,855 in 2023 as compared to 2022 due to the elimination of targeted support functions in Head office and management’s efforts since Q3 2022 to streamline the US 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.

Adjusted EBITDA & Operating Income in USD $

  • 2023 annual revenues of $26.179 million (CAD$ 35.3 million) decreased 7.18% from 2022 revenues of $28.205 million;
  • Q4 2023 revenues of $6,551,865 decreased by 3.37% relative to Q4 2022 revenues of $6,780,083 and were consistent with Q3 2023 revenues of $6,553,724.

Revenue in USD $

  • 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 to 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 December 31, 2023, as well as full access to the unutilized revolving credit facility of $1,134,130 (CAD$1,500,000).
  • 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 December 31, 2023. Total liabilities decreased by $2,567,686 between December 31, 2022 and December 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 December 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

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.


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 income from operating activities is as follows:

 Three months ended Dec. 31 Q3 Year ended Dec. 31
  20232022 202320232022 
  $$ $$
Income from operating activities 317,874(321,424)208,480460,152(1,062,110)
Add back:      
Amortization and depreciation 189,662307,717 204,587885,1111,355,920 
Stock-based compensation 63,73485,020 21,125132,308364,512 
Adjusted EBITDA 571,27071,313 434,1921,477,571658,322 


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. 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 staff and supply shortages, regulatory changes affecting the home care industry or government programs utilized by the Company, 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, 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


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.

A photo accompanying this announcement is available at

A photo accompanying this announcement is available at


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