Nova Leap Health Corp. Posts Q1 2023 Results

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HALIFAX, Nova Scotia, May 11, 2023 (GLOBE NEWSWIRE) -- NOVA LEAP HEALTH CORP. (TSXV: NLH) (“Nova Leap” or “the Company”), a growing home health care organization, is pleased to announce the release of financial results for the quarter ended March 31, 2023. All amounts are in United States dollars unless otherwise specified.

Nova Leap Q1 2023 Financial Results

Financial results for the first quarter ended March 31, 2023 include the following:

• Q1 2023 revenues of $6,396,076 decreased by 5.7% relative to Q4 2022 revenues of $6,780,083 and by 12.3% relative to Q1 2022 revenues of $7,296,609.
  
  
  
  
• Q1 2023 Adjusted EBITDA increased to $86,025 from $71,313 in Q4 2022 and was lower than Q1 2022 Adjusted EBITDA of $227,562 (see calculation of Adjusted EBITDA below). 
  
  
  
  
• Gross profit margin as a percentage of revenues remained strong at 35.2% in Q1 2023. Gross profit margin percentage was 35.6% in Q4 2022 and 34.8% in Q1 2022.
  
• Head office and operations management expense decreased by $101,942 in Q1 2023 as compared to Q1 2022 and $115,892 as compared to Q4 2022 due to the elimination of targeted support functions in Head office late in Q2 2022 and management’s efforts since Q3 2022 to streamline our US operations.
• The loss from operating activities in Q1 2023 decreased to $182,864 from $321,424 in Q4 2022 and $198,829 in Q1 2022.
• Q1 2023 net loss decreased to $296,876 from $970,395 in Q4 2022 and $389,674 in Q1 2022.
• The Company had available cash of $894,365 as of March 31, 2023 as well as full access to the unutilized revolving credit facility of $1,108,402 (CAD$1,500,000).   
  
  

President & CEO’s Comments

“The message to shareholders is that we continue to deliver prudent fiscal management which should provide us with flexibility to restart our acquisition strategy and improve results in future quarters,” said Chris Dobbin, President & CEO of Nova Leap. “This past quarter was focused on two initiatives — continuing our capital allocation strategy of paying down the Company’s debt while further restructuring the U.S. operations and working with U.S. leadership on the changes implemented during the latter part of 2022 and Q1 2023 — both of which I will speak to further.