Nova Leap’s expansion continues with a home health care acquisition in South Central USA
Nova Leap Health Corp. (TSXV: NLH) was created to assemble a portfolio of home health care companies that have the potential to be leaders in their particular geographical market. It is Nova Leap’s intention to grow through a combination of continued acquisitions and organic growth, with a focus on North America. Nova leap is a 2019 TSX Venture 50™ ranked company.
Nova Leap not only acquires home care services companies, they also manage and build companies that provide state of the art support to clients and their families at home. By providing a ‘home health care’ service the Company is able to provide skilled aftercare including nursing, home physical therapy, the caring for wounds as well as pain and medication management. In providing a ‘home care service’ alternative Nova Leap is able to provide clients with ongoing assistance with activities of daily living which may include services from simple errands to housekeeping, transportation, and meal preparation. For Nova Leap it’s all about maintaining independence and quality of life.
Nova Leap’s 10 home care operation locations
Recently Nova Leap announced that it has executed a definitive agreement to acquire a home care services company in South Central U.S. This will be the first time Nova Leap will be venturing outside of their traditional geographical business region of northeast America and Canada. The acquired home care services company reported revenues of approximately US$1.42 million for the year ended 2018 and had an adjusted EBITDA of US$0.174 million for that year. The acquisition is expected to be immediately accretive.
Chris Dobbin, President and CEO of Nova Leap said: “The successful integration of past acquisitions indicative by our record Q1 results, the talent across our company and our ability to leverage technology has made this an appropriate time to enter a new region in the U.S.”
Nova Leap’s revenues are growing very strongly are now cash flow positive
Following a massive 877% revenue growth in 2018, Nova Leap announced record Q1, 2019 revenues of $3,911,855 thereby achieving seven consecutive quarters of revenue growth. Also very significantly, all operating business segments showed a profit during the first quarter of 2019. Nova leap also achieved record operating cash flows of $194,460 during the first quarter of 2019.
North America has a large population now looking towards aged care
If you take the time to think why Nova Leaps successful expansion is happening you only have to look at the aging population in the USA. Unprecedented in history, the current growth of the population aged 65 and older is driven by the large baby boomer generation. The baby boomers have brought both challenges and opportunities to the economy, and as they get older this includes health care. The aging population could spark a 50% or more increase in the number of Americans aged 65 and older requiring nursing home care, from 1.2 million in 2017, to about 1.9 million in 2030. As the worldwide population ages, the healthcare systems of every country, not just the US, will face significant challenges to meet the needs of an aging population.
A key point to remember with Nova leap is that by offering home care and home health care they can help older Americans to stay longer at home, and reduce their expenses by remaining at home. The Home Care Industry is one of the fastest growing industries in the U.S. with a $89.2 billion market size.
Nova leap has enormous potential for expansion
North America is a large market for aged care and Nova Leaps expansion further into the heartland of middle America, and one day beyond should see Nova Leap continue their record revenue growth, with profits to follow.
Nova Leap Health Corp. is based in Nova Scotia Canada; and has a market cap of CAD$ 15.6 million. Inside ownership is an impressive 38% showing management are backing themselves.