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HALIFAX, Nova Scotia, Aug. 02, 2023 (GLOBE NEWSWIRE) -- NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a growing home health care organization, is announcing a change in Chief Financial Officer (“CFO”). The Company is also providing a financial update ahead of its second quarter 2023 results expected to be released on August 10, 2023. All amounts are in United States dollars unless otherwise specified.
Q2 2023 Financial Update
Based on currently available information, the Company is providing the following guidance for its second quarter ended June 30, 2023. The Company expects:
- An increase in quarterly revenue, an increase in quarterly gross margin percentage, record quarterly Adjusted EBITDA for the U.S. operating segment and record quarterly consolidated Adjusted EBITDA;
- Q2 2023 revenues of $6,677,000, an increase of 4.4% relative to Q1 2023 revenues;
- A continued increase in gross margin as a percentage of revenue to 36.8%;
- Record quarterly Adjusted EBITDA for the U.S. operating segment of $597,000, an increase of 90% relative to Q1 2023;
- Q2 2023 consolidated Adjusted EBITDA of $386,000, an amount 4.5X higher than Q1 2023 Adjusted EBITDA of $86,025 and the best in Company history; and
- Head office and operations management expenses of $1,526,000, a decrease of 6.5% from Q1 2023 due to management’s continued streamlining of operations.
Change in CFO
With a great deal of gratitude and respect, the Company announces Lisette Hachey has resigned from the roles of CFO & Corporate Secretary, effective immediately, as part of a planned transition. Ms. Hachey, who has been with the Company over two and half years, was appointed CFO & Corporate Secretary in June 2022 and had previously held the roles of Corporate Controller and Director of Finance.
Chris LeBlanc, previously Nova Leap’s Director of Finance, has been appointed CFO and Corporate Secretary, effective immediately. Chris has twenty years of progressive experience, including seven years in a publicly traded company, and has a strong background in financial management, including financial reporting, budgeting, financial analysis and treasury functions.
President & CEO’s Comments
“I would like to thank Lisette for her work with Nova Leap during these past two and a half years,” said Chris Dobbin, president & CEO of Nova Leap. “We have benefitted from her experience and, with the disclosure of our upcoming record results, she leaves Nova Leap on a high note. I would also like to congratulate Chris on his appointment. Chris has played an important role since joining Nova Leap over a year ago and has the necessary leadership qualities required as we continue building Nova Leap.”
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. 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.
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. 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 (such as ERC), 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 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.
