Provider of personal home care leaps ahead with 91% revenue growth in Q2
There is no denial that the world’s population is aging as approximately 11,000 people per day are turning 65 in the US alone. The average US life expectancy increased from 68 years in 1950 to 79 years in 2013 and is expected to continue. Longer life expectancy and the aging baby boomers, has the potential to make the US home care industry one of the fastest growing industries in the US, currently a $89.2 billion market.
Nova Leap Health Corp. (TSVX: NLH) is an international provider of personal home care and support services. They acquire, manage, and build home care service companies that provide wonderful support to clients and their families at home. The Company was created to assemble a portfolio of Home and Home Health Care companies that have the potential to be leaders in their particular market.
What is non-medical and skilled home care?
Non-medical and skilled home care is about sustaining and maintaining your loved one’s quality of life in their home. Home healthcare is skilled care to help someone get healthy while at home. It usually will come after a doctor’s visit or a hospital stay and is provided by medical professionals. Obviously driving this market need is the country’s aging population.
Nova Leap provide two services
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From homecare you get: Personal grooming like bathing or getting dressed; moving around – getting in and out of the bed/shower; medication reminders; errands like grocery shopping and picking up prescriptions; light housekeeping; and meal preparation.
From home healthcare you get: Skilled nursing; at-home physical-therapy; pain management; caring for wounds; and prescription management. All provided by medical professionals.
Nova Leap have made six acquisitions in 18 months, plus has signed two additional definitive agreements to acquire two separate US entities. On August 13, 2018, and again on August 20, 2018, Nova Leap announced the execution of definitive agreements for the acquisition of a New England and a Massachusetts based home care business. Management continues to explore and evaluate further opportunities for the acquisition of profitable home health care businesses.
Nova Leap’s revenue increased 91.7% in Q2 2018, in comparison to Q1 2018
The Company reported double-digit revenue growth for the fourth consecutive quarter with both of its United States and Canadian operating segments being profitable. Management had indicated that it anticipated Nova Leap would exceed a $10 million revenue run-rate by the end of Q2 2018 and is pleased to report that has been exceeded as the Q2 revenue run-rate was $11.4 million. Management had also indicated that it was targeting an end of year revenue run-rate range of $14 million to $15 million. The two most recent definitive agreement announcements place the Company on track to achieve this target.
Nova Leap has a captured clientele in the form of an aging population in North America. As the baby-boomers head to retirement there is going to be a greater need for more home care and home medical care. With new acquisitions on the way, and most likely more to come, Nova Leap should continue to grow rapidly and take advantage of one of the world’s fastest growing industries.
Nova Leap Health Corp. is based in Nova Scotia Canada, and has a market cap of C$ 20.9 m.
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>