Nova Leap Health Corp. Posts Financial Results for Second Quarter 2020 - Seite 2

During the first six months of 2020, the Company retired 21.9% of its combined Schedule 1 bank debt and promissory notes relating to prior acquisitions.

The Company’s revolving credit facility of $696,000 did not have a balance at the end of Q2 2020, with the full amount available in the future, if required.

The Company reported an adjusted net loss of $159,337 for Q2 2020 as compared to an adjusted net loss of $148,932 for Q2 2019 and $71,019 for Q1 2020 (see reconciliation of adjusted net income to net income in “Summary of Quarterly Results” section in the MD&A).

In Q2 2020, a non-cash goodwill impairment of $800,000 for accounting purposes was recorded.  The accounting impairment does not impact operations in any manner.

In August 2020, the Company was approved for Paycheck Protection Program loans in the amount of $1.976 million by a U.S. bank.  These loans are guaranteed by the U.S. Small Business Administration under The CARES ACT in response to the COVID-19 pandemic.  These loans, which bear interest at 1%, are repayable monthly over a five-year period beginning in 2021.  If certain conditions are met, the loans may be partially or fully forgiven. 

President & CEO’s Comments on Company Performance

“The home care industry has been an expanding industry for several years driven by an aging population.  Our company, like many in our industry, is preparing for an even greater anticipated demand for in-home care that we expect will last for several years”, said Chris Dobbin, President & CEO of Nova Leap. “For investors following world events, it is evident that the pandemic has taken an unfortunate toll on many living in senior facilities.  As a result, we expect many older adults and their families to opt for in-home care.

Obviously, the current environment is challenging.  In my opinion, the second quarter was the most challenging in our history.  Yet, we had record operating cash flows, record free cash flows and reported the highest cash balance in Company history, while also paying down a meaningful portion of our acquisition related debt. It is also the one where our employees have shined brightest in ensuring the safety of our clients and fellow staff members.