Novation Cos. Inc. (OTCMKTS: NOVC), which operates Healthcare Staffing Inc., reported revenue fell 24.3% in the second quarter and net loss increased, according to a filing with the US Securities and Exchange Commission.
|(US$ thousands)||Q2 2020||Q2 2019||% change|
According to regulatory filings, Kansas City, Missouri-based Novation acquired Healthcare Staffing Inc. in July 2017. Healthcare Staffing Inc. provides healthcare staffing in Georgia, primarily to community services boards, or CSBs — quasi-state organizations that provides behavioral health services at facilities across Georgia. The state has 25 CSBs. In addition, HCS provides healthcare staffing to hospitals, schools, doctors’ offices and others.
Novation noted reduced demand from Georgia community service boards starting in late March 2020 and the company laid off approximately 8% of its employees. A majority were later rehired but there has been permanent loss.
Prior to acquiring HCS, Novation had been in the business of investing in residential nonconforming mortgage loans and securities; it sold its portfolio of mortgage securities for $13 million in 2018.
The company had filed for voluntary bankruptcy in July 2016. The bankruptcy court approved its reorganization in April 2018.
Share price and market cap
Shares in Novation were trading at 5.2 cents, up 6.53%, as of 10:27 a.m. Eastern time, but they were 38.52% below their 52-week high. The company had a market cap of $5.6 million.