Nova Leap scores double digit revenue growth for the fifth consecutive quarter
In the coming years the number of people aged 65+ in North America is expected to grow rapidly. With 11,000 people turning 65 every day in the US alone, one would consider home care and home health care as potential rapid growth sectors as the demographics would suggest. It is also interesting to note that home care saves patients billions of dollars every year by treating them in their own homes instead of in hospitals.
The Home Care Industry is one of the fastest growing industries in the U.S. with an $89.2 billion market size. The long term care market in the US is expected to reach $550 Billion by 2024 with nursing care dominating the market in terms of revenue.
Nova Leap Health Corp. (TSVX: NLH) is an international provider of personal home care and support services, that acquire, manage and build home care services companies to provide wonderful support to clients and their families. The Company mission is to assemble a portfolio of home care and home health care companies that have the potential to be leaders in their particular local market.
Nova Leap provides two main services. Basic home care that provides home assistance with everyday errands; and home healthcare where clients are provided with skilled nursing, home physical therapy, and professional medical management.
Since late 2016, Nova Leap has acquired seven home care and health care businesses in America. Nova Leap is focused to bed down recent acquisitions, grow existing businesses organically, and to consider acquisitions of profitable home care and home healthcare companies, ideally in states and rural areas with less competition.
On November 22, 2018 Nova Leap announced its third quarter financial results by stating that they have achieved double digit revenue growth for the fifth consecutive quarter and that each of the United States and Canadian operating segments were profitable during the second quarter.
Chris Dobbin, President and CEO of Nova Leap, said: “We have been successfully integrating our acquisitions each quarter which is evident by the increase in our operating segment EBITDA margins. Our focus for the remainder of the year is to integrate our last two acquisitions, analyze the acquisition opportunities currently in front of us and ensure a proper allocation of human and financial capital as we plan ahead for what we believe will be another year of significant growth in 2019.”
Nova Leap also closed a previously announced acquisition of Comprehensive Home Care located in South Deerfield, Massachusetts and Living at Home Senior Care located in Amherst, New Hampshire. Management had previously indicated that it was targeting to exit 2018 with a revenue run rate range of $14 million to $15 million. The closing of these two acquisitions places Nova Leap on track to achieve this target.
Nova Leap will continue to expand with new acquisitions across the USA and Canada in this fast growing industry, driven by the baby boomer demographic. After achieving double digit growth for five quarters in a row, there should be no reason why this will not continue. After all we all get old and may need some help in our retirement years.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>