Nova Leap Health (NLH) Presents at Planet MicroCap Showcase: VEGAS 2025 summary

Business overview and services

• Provides in-home care primarily for seniors, focusing on dementia and end-of-life support, with about 75% of clients living with some form of dementia.

• Services include both non-medical (companionship, housekeeping, meal prep) and medical care (medication administration) under nurse supervision.

• Operates mainly in the private pay market, with some government and insurance-funded work.

• Expands through acquisitions of small, cash flow positive, mom-and-pop home care businesses in Canada and the U.S.

• Focuses on organic growth and acquisitions, with less emphasis on joint ventures.

Market trends and competitive landscape

• Operates in a growing market driven by an aging demographic, with 10,000 people turning 65 daily in the U.S.

• Most seniors prefer to stay at home, fueling demand for home care services.

• Industry is highly competitive, with many local providers and large private equity-backed franchises.

• Scale provides a competitive advantage in hiring and operations compared to smaller independents.

• Pricing power has increased, with gross margins rising from 33% pre-COVID to 38-39% post-COVID.

Financial performance and strategy

• Revenue grew from $40,000 in 2016 to nearly $26 million in 2023, with a target to surpass $30 million in the coming quarters.

• Maintains profitability and positive cash flow, with no recent need for external financing.

• Insider ownership is high at nearly 42%, aligning management with shareholders.

• Acquisition multiples typically range from 4x to 5x, with the highest at 6.75x.

• Divested underperforming assets post-COVID to maintain financial health.