Nova Leap Health Corp. Reports Continued Growth in Q3 2024

Nova Leap Health Corp. Financial Highlights for Q3 2024

HALIFAX, Nova Scotia — Nova Leap Health Corp. (TSXV: NLH), a leader in home health care services, has released its financial results for the third quarter ended September 30, 2024. The results reflect a solid continuation of positive operating performance alongside a strong balance sheet. All financial figures are presented in United States dollars unless stated otherwise.

Essential Financial Metrics

In its Q3 2024 results, Nova Leap demonstrates the following key financial indicators:

• For the third quarter, the company achieved positive Adjusted EBITDA, along with positive net cash flows, all while maintaining a clean balance sheet with no bank debt. This positions them to support future acquisitions effectively.
• This quarter marks the Company’s 11th consecutive quarter of positive Adjusted EBITDA and the 6th consecutive quarter of positive operating income, highlighting consistent operational success.
• Reported revenues for Q3 2024 were $6,406,528, a modest increase of 1.1% from $6,338,532 in Q2 2024 and a decline of 2.2% from the $6,553,724 achieved in Q3 2023.

In-Depth Performance Analysis

• Adjusted EBITDA for Q3 2024 was noted at $379,116, reflecting a decrease of 7.1% from the previous quarter and a 12.7% decline year-over-year.
• The accumulated Adjusted EBITDA across the 12-month period from Q4 2023 to Q3 2024 reached $1,720,084.
• Maintaining a robust gross profit margin, the company recorded a margin of 38.0% in Q3 2024, consistent with previous quarters – 38.4% in Q2 2024 and 37.4% in Q3 2023.
• Operating income generated in Q3 2024 stood at $208,110, representing a decrease from previous quarters.
• A net loss of $207,871 was recorded for Q3 2024, contrasting with a net income of $226,998 in Q2 2024 and $380,353 in the same quarter last year.
• By the close of Q3 2024, available cash amounted to $1,361,000 with further access to a revolving credit facility of $1,111,193, reflecting a cash increase of $195,632 for the quarter.

Strategic Acquisitions

In a proactive move towards expansion, Nova Leap recently agreed to acquire two businesses that enhance its market presence:

• On October 11, 2024, an agreement was finalized for the acquisition of a home care services business in Florida, with a total deal value of $1,636,000.
• An additional agreement on October 29, 2024, aims to acquire shares of two affiliated home care service providers in Nova Scotia, with a cash payment of CAD$1,380,000.

Perspectives from Leadership

Chris Dobbin, President & CEO of Nova Leap, expressed confidence in the company's performance: “Q3 was another steady quarter as the Company has been a model of consistency the past six quarters. Our ability to generate positive cash flows while pursuing growth through acquisitions will strengthen our market position.”

About Nova Leap Health Corp.

Nova Leap Health Corp. is recognized as an innovative provider in the home health care industry across the U.S. and Canada. The company maintains a focus on providing care that is centered around individual and family needs, with specialization in areas like dementia care. It has garnered numerous accolades, including notable rankings on Canada's Top Growing Companies lists.

Frequently Asked Questions

1. What financial results did Nova Leap report for Q3 2024?

Nova Leap reported revenues of $6,406,528, positive Adjusted EBITDA of $379,116, and a net loss of $207,871.

2. How many consecutive quarters of positive Adjusted EBITDA has Nova Leap achieved?

The company has achieved 11 consecutive quarters of positive Adjusted EBITDA.

3. What recent acquisitions has Nova Leap announced?

Nova Leap announced agreements to acquire home care services companies in both Florida and Nova Scotia.

4. How is Nova Leap's cash position as of September 30, 2024?

As of September 30, 2024, Nova Leap had $1,361,000 in cash and access to $1,111,193 in a revolving credit facility.

5. What does the future look like for Nova Leap according to its CEO?

CEO Chris Dobbin indicates a positive outlook with plans for continued growth through strategic acquisitions and maintaining financial stability.

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