HALIFAX, Nova Scotia, May 28, 2018 (GLOBE NEWSWIRE) --
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
NOVA LEAP HEALTH CORP. (TSXV:NLH) (“Nova Leap” or “the Company”), a company focused on the home health care industry, is pleased to announce the release of financial results for the first quarter ended March 31, 2018. All amounts are in United States dollars unless otherwise specified.
Nova Leap First Quarter Financial Results
Financial results for the three months ended March 31, 2018 include revenue of $1,265,021 and gross margin of $444,544. Highlights for the quarter ended March 31, 2018 included the following:
“Overall, I am pleased with our growth early in the year. More importantly, I believe that we have very good people working at each of our locations and that we are laying the foundation for a extremely successful organization through a number of corporate initiatives,” said Chris Dobbin, President and CEO of Nova Leap, “I expect us to remain very active during the remainder of 2018.”
This news release should be read in conjunction with the interim condensed consolidated financial statements for the three months ended March 31, 2018, notes to the financial statements, and management's discussion and analysis, which have been filed on SEDAR.
Corporate Update
Nova Leap expects to close its previously announced acquisition of an Eastern Canada business and its previously announced brokered private placement by early June 2018.
Nova Leap continues to explore and evaluate opportunities for the acquisition of home care businesses. Management had previously announced plans to complete up to four acquisitions in 2018. Management now anticipates closing up to five acquisitions in 2018. Achieving the Company’s plans remains dependent on Management’s ability to acquire profitable home care businesses and to raise adequate funds to complete such acquisitions.
Management had previously indicated that it anticipated Nova Leap would exit 2018 with at least a $10 million revenue run rate. Management believes that it will exceed a $10 million revenue run rate by the end of Q2 2018. Management is now targeting to exit 2018 with a revenue run rate range of $14 million to $15 million.
The implementation of a common technology platform across the Company’s home care agencies has begun and is expected to continue as new agencies are acquired. It is Management’s intention to begin the implementation of a common brand strategy in the United States in Q3 2018.
About Nova Leap
The Home Care Providers industry is becoming one of the fastest growing healthcare industries in Canada and the United States. Home care saves patients billions of dollars every year by treating them in their own homes instead of in hospitals. An aging population, the prevalence of chronic disease, growing physician acceptance of home care, medical advancements and a movement toward cost-efficient treatment options from public and private payers have all fostered industry growth. Nova Leap is focused on a highly fragmented market of small privately-held companies providing patients one on one care in their homes. Nova Leap's post-acquisition organic growth strategy is to increase annual revenue per location through a combination of increased employee investment, including training, focused sales and marketing efforts, billing rate increases, expansion of geographical coverage, and improved referral sources.
NON-GAAP MEASURE:
Annual recurring revenue run rate is the expected annualized recurring revenue based on the most recent month’s actual revenue for current operations multiplied by 12.
For acquisitions that closed subsequent to the reporting period or are expected to close and have been disclosed in a press release as material information, annual recurring revenue run rate is the expected annualized recurring revenue based on the most recent month’s revenue for current operations multiplied by 12 plus the annual revenue based on the most recent financial information available for the newly acquired operations or operations which are expected to close and have been disclosed in a press release as material information.
FORWARD LOOKING INFORMATION:
Certain information in this press release may contain forward-looking statements, such as statements regarding future expansions and cost savings, the Company’s expected 2018 revenue run rate and plans regarding future acquisitions and financings. This information is based on current expectations and assumptions, including assumptions concerning the Company’s ability to integrate its acquired businesses and maintain previously achieved service hour and revenue levels, that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Risks that could cause results to differ from those stated in the forward-looking statements in this release include regulatory changes affecting the home care industry, unexpected increases in operating costs and competition from other service providers. All forward-looking statements, including any financial outlook or future-oriented financial information, contained in this press release are made as of the date of this release and included for the purpose of providing information about management's current expectations and plans relating to the future. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
For further information:
Christopher Dobbin, CPA, CA, Director, President and CEO Nova Leap Health Corp., T: 902 401 9480 F: 902 482 5177 [email protected]
John Boidman, Vice President Renmark Financial Communications Inc. T: 416 644-2020 or 514 939-3989 [email protected]
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.