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

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

HALIFAX, Nova Scotia, Aug. 06, 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 second quarter ended June 30, 2020.  All amounts are in United States dollars unless otherwise specified.

Nova Leap Second Quarter of 2020

Highlights for the quarter ended June 30, 2020 included the following:

• The cash balance of $2,754,087 as at June 30, 2020 was the highest reported cash balance in the Company’s history.
  
  
• Record operating cash flows of $596,936 for Q2 2020 which was more than a 200% increase over both Q2 2019 operating cash flows of $179,972 and Q1 2020 operating cash flows of $189,913. Of the Q2 2020 cash flows, $282,509 can be attributed to the Canadian Emergency Wage Subsidy (“CEWS”).  In the absence of CEWS, Q2 2020 cash flows would have been the Company’s highest on record and 65% higher than the previous record set in Q1 2020. 
  

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/048a2e8d-5aab-443c ...

• Q2 2020 EBITDA of $158,701, which excludes government assistance programs, was lower than Q2 2019 EBITDA of $217,549 and Q1 2020 EBITDA of $220,051.
  
  
• Q2 2020 revenues of $3,983,402 were 6.3% lower than Q2 2019 revenues of $4,249,781 and 13.6% lower than Q1 2020 revenues of $4,611,140.
  

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b7ef9118-8967-446b ...

• The Company reported its highest gross margin as a percentage of revenue in nine quarters as gross margin increased from 33.41% in Q1 2020 to 35.10% in Q2 2020.
  
  
• The Company has maintained its historical level of excellence relating to accounts receivable collections.  During the six months ended June 30, 2020, $5,707 of accounts receivable were written off, representing less than 0.1% of reported revenues as compared to $34,917 for the 2019 fiscal year, which represented 0.2% of the reported revenues.