- NET REVENUE OF $58.9
MILLION
- COMPANY EXPECTS TO OPEN 1-2 MORE HOSPITALS IN 2023 AND
ANOTHER 14 BY END OF 2025
HOUSTON, Aug. 9, 2023
/PRNewswire/ -- Nutex Health Inc. ("Nutex Health" or the "Company")
(NASDAQ: NUTX), a physician-led, technology-enabled integrated
healthcare delivery system comprised of 22 state-of-the-art
micro-hospitals in 8 states and primary care-centric, risk-bearing
physician networks, today announced second quarter 2023 financial
results for the three months and six months ended June 30, 2023.
Financial Highlights for the Three Months and Six Months
Ended June 30, 2023:
- Net revenue of $58.9 million and
$115.3 million, respectively.
- Net loss attributable to Nutex Health of $3.5 million and $8.6
million, respectively.
- Adjusted EBITDA of $4.0 million
and $6.4 million, respectively.
- Net cash from operating activities of $1.1 million as of June
30, 2023.
- As of June 30, 2023, the Company
had total assets of $436.2 million,
including cash and cash equivalents of $32.8
million.
Note: Adjusted EBITDA is a non-GAAP financial
metric. A reconciliation of non-GAAP to GAAP measures is
included below in this earnings release.
Year-to-Date 2023 Highlights:
- On February 6, 2023, Nutex Health
opened its second micro-hospital in Arkansas. The facility is already performing
above expectations.
- On May 3, 2023, Nutex Health
opened its first urgent care center in Southern California to take better and more
efficient care of its 25,000 patients enrolled in its independent
practice association ("IPA") in Southern
California.
- On June 20, 2023, Nutex Health
opened its second new micro-hospital in 2023 in New Mexico. The facility is performing above
expectations.
- On July 5, 2023, Nutex Health
opened its third new micro-hospital in 2023 in Louisiana. The facility is performing above
expectations.
- On August 7, 2023, Nutex Health
opened its fourth new micro-hospital in 2023 in Texas.
- Nutex Health expects to open 1-2 more micro-hospitals in 2023
and another 14 by end of 2025.
- Nutex Health launched three new independent practice
associations ("IPAs") in 2023. IPAs are physician networks
comprised of primary care physicians ("PCPs") and specialists. The
three new IPAs are strategically located around existing
(Houston and Phoenix) and upcoming (South Florida) Nutex Health micro-hospitals
and expect to start enrolling managed care patients later this
year. As of today, South Florida Physicians IPA has signed
contracts with 78 primary care physicians, Houston Physicians IPA
has signed contracts with over 70 primary care physicians and our
newest IPA, Phoenix Physicians IPA, has signed up 12 primary care
physicians. The Company anticipates starting 2-3 new IPAs per year
in the vicinity of its micro-hospitals.
- In 2023, Nutex Health has spent over $500,000 enhancing its cloud-based advanced
population health analytics platform called Clinigence Health.
Clinigence is a pioneer in clinical data integration, clinical
quality reporting and population health analytics and is in use by
multiple organizations and individual physicians throughout the
U.S. Our platform currently has clinical and claims data on over 3
million patients. Nutex Health intends to gain more customers for
its platform going forward.
- On July 31, 2023, Nutex Health
announced that its advanced population health analytics platform
had been selected by Varmed Management, a Puerto Rico-based medical management company,
to enhance patient care.
- On March 17, 2023, the Centers
for Medicare & Medicaid Services ("CMS") issued new guidelines
related to the independent dispute resolution ("IDR") process of
the No Surprises Act. Nutex Health believes that these new
guidelines will result in higher reimbursements. Due to the lag in
normal hospital billing, our data set is still small. However, we
have early evidence that reimbursements have increased. We believe
that most of the increase in reimbursements are not yet reflected
in our Second Quarter financial results due to the timing of the
new CMS guidelines.
- On August 3, 2023, the U.S.
District Court for the Eastern District of Texas granted a summary judgement in favor of
the Texas Medical Association vacating the HHS' December 2022 decision to increase, without
notice, the administrative fee required to initiate IDR arbitration
from $50 to $350, which made filing for IDR arbitration
prohibitively expensive for many providers.
- On August 4, 2023, the HHS and
CMS again temporarily suspended the federal IDR process, including
the ability to initiate new disputes, until the HHS and CMS can
provide new instructions in response to the summary judgement. We
do not expect that this IDR suspension will materially impact the
reimbursement amounts we receive due to the generally low
percentage of arbitrations we initiate. We do however anticipate
that this additional favorable court ruling will further enhance
the fairness of the reimbursement process under the NSA.
- On June 22, 2023 the Company paid
back $3.75 million to an affiliate of
Yorkville Advisors Global. The Company has approximately
$7.7 million outstanding and is
evaluating whether to pay off the remaining portion and terminating
its pre-paid advance agreement with Yorkville.
- The Company has a committed investment agreement for up to
$100 million with Lincoln Park
Capital, none of which has been used.
- In 2023, as part of our Board of Director's portfolio
rationalization initiative, Nutex Health closed down two hospital
outpatient departments and one micro-hospital which were
unprofitable. All three facilities were in Texas.
"Our balance sheet continues to remain strong with $32.8 million of cash on hand and significant
capital available to handle the development of the 1-2 additional
micro-hospitals we plan to open this year in addition to growing
our existing IPAs. We remain cash flow positive and proud of our
sequential quarter-over-quarter increase in adjusted EBITDA from
$2.4 million in Q1 to $4.0 million in Q2," stated Jon Bates, Chief Financial Officer of Nutex
Health.
"Our goal for the remainder of this year is to increase patient
volumes as well as to create new service lines. We have recently
launched a behavioral health program due to the massive need for
mental health and substance use services. We are also excited
to start enrolling patients in our new IPAs later this year, which
we believe will bring even more volume to our facilities. In
addition, we are getting a lot more adept with navigating through
the NSA and the IDR process which will allow us to maximize
collections from insurers," stated Tom
Vo, M.D., MBA, Chairman and Chief Executive Officer of Nutex
Health.
"We have delivered yet another quarter with positive net cash
from operating activities and positive adjusted EBITDA. We intend
to continue to execute on our growth strategy. Our improving
results in the first six months of 2023 make us confident in our
outlook for the remainder of the year," stated Warren Hosseinion, M.D., President of Nutex
Health.
For more details on the Company's Second Quarter 2023 financial
results, please refer to our Quarterly Report on Form 10-Q filed
with the U.S. Securities & Exchange Commission and accessible
at www.sec.gov.
|
NUTEX HEALTH
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
|
|
June 30, 2023
|
|
December 31, 2022
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
32,754,330
|
|
$
|
34,255,264
|
|
Accounts
receivable
|
|
|
50,676,301
|
|
|
57,777,386
|
|
Accounts receivable -
related parties
|
|
|
1,335,241
|
|
|
538,183
|
|
Inventories
|
|
|
2,450,776
|
|
|
3,533,285
|
|
Prepaid expenses and
other current assets
|
|
|
4,858,546
|
|
|
1,869,806
|
|
Total current
assets
|
|
|
92,075,194
|
|
|
97,973,924
|
|
Property and equipment,
net
|
|
|
83,062,145
|
|
|
82,094,352
|
|
Operating right-of-use
assets
|
|
|
17,111,817
|
|
|
20,466,632
|
|
Finance right-of-use
assets
|
|
|
206,072,425
|
|
|
192,591,624
|
|
Intangible assets,
net
|
|
|
20,418,551
|
|
|
21,191,390
|
|
Goodwill,
net
|
|
|
17,010,637
|
|
|
17,010,637
|
|
Other assets
|
|
|
483,679
|
|
|
423,426
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
436,234,448
|
|
$
|
431,751,985
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
16,424,368
|
|
$
|
23,614,387
|
|
Accounts payable -
related parties
|
|
|
3,919,114
|
|
|
3,915,661
|
|
Lines of
credit
|
|
|
2,980,684
|
|
|
2,623,479
|
|
Current portion of
long-term debt
|
|
|
16,412,345
|
|
|
12,546,097
|
|
Operating lease
liabilities, current portion
|
|
|
1,551,655
|
|
|
1,703,014
|
|
Finance lease
liabilities, current portion
|
|
|
4,105,654
|
|
|
4,219,518
|
|
Accrued expenses and
other current liabilities
|
|
|
12,049,471
|
|
|
6,240,813
|
|
Total current
liabilities
|
|
|
57,443,291
|
|
|
54,862,969
|
|
Long-term debt,
net
|
|
|
25,106,830
|
|
|
23,051,152
|
|
Operating lease
liabilities, net
|
|
|
16,256,976
|
|
|
19,438,497
|
|
Finance lease
liabilities, net
|
|
|
220,473,072
|
|
|
203,619,756
|
|
Deferred tax
liabilities
|
|
|
8,728,100
|
|
|
10,452,211
|
|
Total
liabilities
|
|
|
328,008,269
|
|
|
311,424,585
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Common stock, $0.001
par value; 950,000,000 shares authorized; 660,742,624
and 650,223,840 shares issued and outstanding as of June 30, 2023
and December 31, 2022,
respectively
|
|
|
660,742
|
|
|
650,224
|
|
Additional paid-in
capital
|
|
|
463,869,968
|
|
|
458,498,402
|
|
Accumulated
deficit
|
|
|
(371,912,251)
|
|
|
(363,285,925)
|
|
Nutex Health Inc.
equity
|
|
|
92,618,459
|
|
|
95,862,701
|
|
Noncontrolling
interests
|
|
|
15,607,720
|
|
|
24,464,699
|
|
Total equity
|
|
|
108,226,179
|
|
|
120,327,400
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
436,234,448
|
|
$
|
431,751,985
|
|
NUTEX HEALTH
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital
division
|
|
$
|
51,611,803
|
|
$
|
51,604,679
|
|
$
|
100,899,967
|
|
$
|
130,731,921
|
|
Population health
management division
|
|
|
7,312,651
|
|
|
6,443,254
|
|
|
14,353,904
|
|
|
6,443,254
|
|
Total
revenue
|
|
|
58,924,454
|
|
|
58,047,933
|
|
|
115,253,871
|
|
|
137,175,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and
benefits
|
|
|
24,860,702
|
|
|
24,356,184
|
|
|
50,697,375
|
|
|
49,966,401
|
|
Contract
services
|
|
|
9,747,873
|
|
|
13,060,447
|
|
|
18,937,204
|
|
|
17,979,079
|
|
Medical
supplies
|
|
|
3,264,202
|
|
|
2,581,552
|
|
|
7,288,084
|
|
|
6,841,031
|
|
Depreciation and
amortization
|
|
|
4,169,160
|
|
|
3,132,485
|
|
|
8,162,907
|
|
|
5,529,346
|
|
Other
|
|
|
7,235,594
|
|
|
8,279,344
|
|
|
15,673,655
|
|
|
14,405,901
|
|
Total operating costs
and expenses
|
|
|
49,277,531
|
|
|
51,410,012
|
|
|
100,759,225
|
|
|
94,721,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
9,646,923
|
|
|
6,637,921
|
|
|
14,494,646
|
|
|
42,453,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and other
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Facilities closing
costs
|
|
|
-
|
|
|
-
|
|
|
217,266
|
|
|
-
|
|
Acquisition
costs
|
|
|
-
|
|
|
3,885,666
|
|
|
-
|
|
|
3,885,666
|
|
Stock-based
compensation expense
|
|
|
249,645
|
|
|
54,166
|
|
|
2,149,645
|
|
|
54,166
|
|
General and
administrative expenses
|
|
|
9,759,816
|
|
|
4,076,566
|
|
|
16,935,360
|
|
|
10,653,089
|
|
Total corporate and
other costs
|
|
|
10,009,461
|
|
|
8,016,398
|
|
|
19,302,271
|
|
|
14,592,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
(362,538)
|
|
|
(1,378,477)
|
|
|
(4,807,625)
|
|
|
27,860,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
4,843,048
|
|
|
4,369,609
|
|
|
7,983,137
|
|
|
6,225,583
|
|
Other expense
(income)
|
|
|
(123,528)
|
|
|
(1,403,222)
|
|
|
123,927
|
|
|
977,323
|
|
Income (loss) before
taxes
|
|
|
(5,082,058)
|
|
|
(4,344,864)
|
|
|
(12,914,689)
|
|
|
20,657,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
(815,612)
|
|
|
19,653,286
|
|
|
(1,726,271)
|
|
|
19,829,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(4,266,446)
|
|
|
(23,998,150)
|
|
|
(11,188,418)
|
|
|
827,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to noncontrolling interests
|
|
|
(787,399)
|
|
|
(4,713,304)
|
|
|
(2,562,092)
|
|
|
(1,417,475)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Nutex Health Inc.
|
|
$
|
(3,479,047)
|
|
$
|
(19,284,846)
|
|
$
|
(8,626,326)
|
|
$
|
2,245,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
$
|
(0.03)
|
|
$
|
(0.01)
|
|
$
|
0.00
|
|
Diluted
|
|
$
|
(0.01)
|
|
$
|
(0.03)
|
|
$
|
(0.01)
|
|
$
|
0.00
|
|
NUTEX HEALTH INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(11,188,418)
|
|
$
|
827,981
|
|
Adjustment to reconcile
net income (loss) to net cash from operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
8,162,907
|
|
|
5,529,346
|
|
Stock-based
compensation expense
|
|
|
2,149,645
|
|
|
54,166
|
|
Deferred tax expense
(benefit)
|
|
|
(1,724,111)
|
|
|
12,013,748
|
|
Debt accretion
expense
|
|
|
953,236
|
|
|
722,536
|
|
Loss on lease
termination
|
|
|
58,211
|
|
|
-
|
|
Non-cash lease
expense
|
|
|
61,734
|
|
|
629,094
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
6,921,239
|
|
|
19,745,666
|
|
Accounts receivable -
related party
|
|
|
(797,058)
|
|
|
602,068
|
|
Inventories
|
|
|
1,082,509
|
|
|
(93,004)
|
|
Prepaid expenses and
other current assets
|
|
|
(3,048,993)
|
|
|
(2,002,401)
|
|
Accounts
payable
|
|
|
(7,189,929)
|
|
|
6,358,427
|
|
Accounts payable -
related party
|
|
|
3,453
|
|
|
(630,490)
|
|
Accrued expenses and
other current liabilities
|
|
|
5,619,907
|
|
|
9,645,922
|
|
Net cash from
operating activities
|
|
|
1,064,332
|
|
|
53,403,059
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Acquisitions of
property and equipment
|
|
|
(7,446,902)
|
|
|
(16,621,726)
|
|
Acquired cash in
reverse acquisition with Clinigence
|
|
|
-
|
|
|
12,716,228
|
|
Cash related to
deconsolidation of Real Estate Entity
|
|
|
(1,039,157)
|
|
|
(2,421,212)
|
|
Net cash from
investing activities
|
|
|
(8,486,059)
|
|
|
(6,326,710)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from lines of
credit
|
|
|
1,949,919
|
|
|
2,592,714
|
|
Proceeds from notes
payable
|
|
|
16,952,905
|
|
|
4,865,974
|
|
Repayments of lines of
credit
|
|
|
(1,592,714)
|
|
|
(72,055)
|
|
Repayments of notes
payable
|
|
|
(7,481,893)
|
|
|
(4,338,567)
|
|
Repayments of finance
leases
|
|
|
(1,870,670)
|
|
|
(305,134)
|
|
Common stock issued for
exercise of warrants
|
|
|
-
|
|
|
4,119,141
|
|
Common stock issued for
exercise of options
|
|
|
-
|
|
|
644,974
|
|
Members'
contributions
|
|
|
649,550
|
|
|
4,731,117
|
|
Members'
distributions
|
|
|
(2,686,304)
|
|
|
(47,832,176)
|
|
Net cash from
financing activities
|
|
|
5,920,793
|
|
|
(35,594,012)
|
|
Net change in cash and
cash equivalents
|
|
|
(1,500,934)
|
|
|
11,482,337
|
|
Cash and cash
equivalents - beginning of the period
|
|
|
34,255,264
|
|
|
36,118,284
|
|
Cash and cash
equivalents - end of the period
|
|
$
|
32,754,330
|
|
$
|
47,600,621
|
Non-GAAP Financial Measures
Adjusted EBITDA. Adjusted EBITDA is used as a
supplemental non-GAAP financial measure by management and external
users of our financial statements, such as industry analysts,
investors, lenders and rating agencies. We believe Adjusted EBITDA
is useful because it allows us to more effectively evaluate our
operating performance.
We define Adjusted EBITDA as net income (loss) attributable to
Nutex Health Inc. plus net interest expense, income taxes,
depreciation and amortization, further adjusted for stock-based
compensation, certain defined items of expense, any
acquisition-related costs and impairments. A reconciliation of net
income to Adjusted EBITDA is included below. Adjusted EBITDA is not
intended to serve as an alternative to U.S. GAAP measures of
performance and may not be comparable to similarly-titled measures
presented by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Reconciliation of net
income (loss) attributable to Nutex
Health Inc. to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Nutex Health Inc.
|
|
$
|
(3,479,047)
|
|
$
|
(19,284,846)
|
|
$
|
(8,626,326)
|
|
$
|
2,245,456
|
|
Depreciation and
amortization
|
|
|
4,169,160
|
|
|
3,132,485
|
|
|
8,162,907
|
|
|
5,529,346
|
|
Interest expense,
net
|
|
|
4,843,048
|
|
|
4,369,609
|
|
|
7,983,137
|
|
|
6,225,583
|
|
Income tax expense
(benefit)
|
|
|
(815,612)
|
|
|
19,653,286
|
|
|
(1,726,271)
|
|
|
19,829,609
|
|
Allocation to
noncontrolling interests
|
|
|
(972,655)
|
|
|
(1,696,226)
|
|
|
(1,727,965)
|
|
|
(3,521,488)
|
|
EBITDA
|
|
|
3,744,894
|
|
|
6,174,308
|
|
|
4,065,482
|
|
|
30,308,506
|
|
Facilities closing
costs
|
|
|
-
|
|
|
-
|
|
|
217,266
|
|
|
-
|
|
Acquisition
costs
|
|
|
-
|
|
|
3,885,666
|
|
|
-
|
|
|
3,885,666
|
|
Stock-based
compensation expense
|
|
|
249,645
|
|
|
54,166
|
|
|
2,149,645
|
|
|
54,166
|
|
Adjusted
EBITDA
|
|
$
|
3,994,539
|
|
$
|
10,114,140
|
|
$
|
6,432,393
|
|
$
|
34,248,338
|
About Nutex Health Inc.
Headquartered in Houston, Texas
and founded in 2011, Nutex Health Inc. (NASDAQ: NUTX) is a
healthcare management and operations company with two divisions: a
Hospital Division and a Population Health Management Division.
The Hospital Division owns, develops and operates innovative
health care models, including micro-hospitals, specialty hospitals,
and hospital outpatient departments (HOPDs). This division owns and
operates 22 facilities in 8 states.
The Population Health Management division owns and operates
provider networks such as Independent Physician Associations
(IPAs). Through our Management Services Organization (MSO), we
provide management, administrative and other support services to
our affiliated hospitals and physician groups. Our
cloud-based proprietary technology platform aggregates clinical and
claims data across multiple settings, information systems and
sources to create a holistic view of patients and providers,
allowing us to deliver greater quality care more
efficiently.
Forward-Looking Statements
Certain statements and information included in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Act of 1995. When used in this
press release, the words or phrases "will", "will likely result,"
"expected to," "will continue," "anticipated," "estimate,"
"projected," "intend," "goal," or similar expressions are intended
to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
are subject to certain risks, known and unknown, and uncertainties,
many of which are beyond the control of the Company. Such
uncertainties and risks include, but are not limited to, our
ability to successfully execute our growth strategy, changes in
laws or regulations, including final rules implemented under the No
Surprises Act and related regulatory guidance, economic conditions,
dependence on management, dilution to stockholders, lack of
capital, the effects of rapid growth upon the Company and the
ability of management to effectively respond to the growth and
demand for products and services of the Company, newly developing
technologies, the Company's ability to compete, conflicts of
interest in related party transactions, regulatory matters,
protection of technology, lack of industry standards, the effects
of competition and the ability of the Company to obtain future
financing. An extensive list of factors that can affect future
results are discussed in the Current Report on Form 10-Q for the
period ended June 30, 2023 under the
heading "Risk Factors" in Part I, Item IA thereof, and other
documents filed from time to time with the Securities and Exchange
Commission. Such factors could materially adversely affect the
Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any
opinions or statements expressed within this press release.
View original
content:https://www.prnewswire.com/news-releases/nutex-health-reports-second-quarter-2023-financial-results-301897352.html
SOURCE Nutex Health, Inc.