Nova Leap Health Corp. Posts Financial Results for First Quarter 2020

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HALIFAX, Nova Scotia, May 07, 2020 (GLOBE NEWSWIRE) -- NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a 2019 TSX Venture 50 ranked company focused on the home health care industry, is pleased to announce the release of financial results for the first quarter ended March 31, 2020. All amounts are in United States dollars unless otherwise specified.

Nova Leap First Quarter of 2020

Highlights for the quarter ended March 31, 2020 included the following:

• Cash balance of $2,556,873 at March 31, 2020 was the highest reported cash balance in the Company’s history.
  
  
• The Company’s revolving credit facility of $696,000 did not have a balance at the end of Q1 2020, with the full amount available in the future, if required. 
  
  
• Q1 2020 EBITDA of $220,051 was 20.0% higher than Q1 2019 EBITDA of $183,376 and 21.1% higher than Q4 2019 EBITDA of $181,660.
  
  
• Operating cash flows of $189,913 for Q1 2020 as compared to Q1 2019 operating cash flows of $186,022 and Q4 2019 operating cash flows of $41,554.
  
  
• Q1 2020 revenues of $4,611,140 were 17.9% higher than Q1 2019 revenues of $3,911,855 and 4.3% lower than Q4 2019 revenues of $4,818,729. The lower revenues in Q1 2020 as compared to Q4 2019 is primarily the result of the preliminary impact of COVID-19 for the latter part of March 2020.
  
  
• The Company reported adjusted net loss of $31,751 for Q1 2020 as compared to an adjusted net loss of $123,376 for Q1 2019 (see reconciliation of adjusted net income to net income in “Summary of Quarterly Results” section in the MD&A).

President & CEO’s Comments on Company Performance

“As we entered into the month of March, we had a lot of momentum and were making a run at our previous record quarterly EBITDA”, said Chris Dobbin, President & CEO of Nova Leap. “Toward late-March, we began to see a preliminary decline in client service hours due to the COVID-19 pandemic. Home care is considered an essential service in all the areas in which we provide services and our agencies have been operating throughout the course of the pandemic. While we expect these lower hours to continue in the near term, we view them as temporary and remain confident in the mid and long-term growth prospects for the Company based on increasing demands for the services we provide to an aging population.