- TOTAL REVENUE OF $143.5
MILLION FOR THE FIRST HALF 2024 VS $115.3 MILLION FOR THE FIRST HALF 2023, AN
INCREASE OF 25%
- HOSPITAL DIVISION VISITS OF 81,276 FOR THE FIRST HALF
2024 VS VISITS OF 65,244 FOR THE FIRST HALF 2023, AN INCREASE OF
25%
- HOSPITAL DIVISION OPERATING INCOME OF $33.3 MILLION FOR THE FIRST HALF 2024 VS
$13.9 MILLION FOR THE FIRST HALF
2023, AN INCREASE OF 140%
- NET CASH FROM OPERATING ACTIVITIES OF $16.3 MILLION FOR THE FIRST HALF
2024
- COMPANY CONTINUES ITS FOCUS ON INCREASING CASH
FLOW
HOUSTON, Aug. 8, 2024
/PRNewswire/ -- Nutex Health Inc. ("Nutex Health" or the
"Company") (NASDAQ: NUTX), a physician-led, integrated healthcare
delivery system comprised of 21 state-of-the-art micro hospitals
and hospital outpatient departments (HOPDs) in nine states and
primary care-centric, risk-bearing physician networks, today
announced second quarter 2024 financial results for the three and
six months ended June 30,
2024.
Financial Highlights for the Three Months Ended
June 30, 2024:
- Total revenue of $76.1 million as
compared to total revenue of $58.9
million for the three months ended June 30, 2023, an increase of 29%. Of this
revenue growth, mature hospitals, which are hospitals opened prior
to December 31, 2021, increased by
13.2% in 2024 compared to the same period in 2023.
- Net loss attributable to Nutex Health Inc. of $0.4 million as compared to net loss attributable
to Nutex Health Inc. of $3.5 million
for the three months ended June 30,
2023. This includes non-cash impairment of assets of
$3.5 million, non-cash impairment of
goodwill of $3.2 million and
$3.1 million non-cash gain on warrant
liability.
- EBITDA, attributable to Nutex Health Inc. of $8.5 million as compared to EBITDA, attributable
to Nutex Health Inc. of $3.7 million
for the three months ended June 30,
2023.
- Adjusted EBITDA, attributable to Nutex Health Inc. of
$12.0 million as compared to Adjusted
EBITDA, attributable to Nutex Health Inc. of $4.0 million for the three months ended
June 30, 2023, an increase of
200%.
- Total visits from the Hospital Division were 41,208 for the
second quarter 2024 as compared to 32,183 for the second quarter
2023, an increase of 9,025 or 28.0%. Of this visit growth, mature
hospitals increased by 10.3% in 2024 compared to the same period in
2023.
Financial Highlights for the Six Months Ended
June 30, 2024:
- Total revenue of $143.5 million
as compared to total revenue of $115.3
million for the six months ended June
30, 2023, an increase of approximately 25%. Of this revenue
growth, mature hospitals, which are hospitals opened prior to
December 31, 2021, increased by 10.0%
in 2024 compared to 2023.
- Net loss attributable to Nutex Health Inc. of $0.7 million as compared to net loss attributable
to Nutex Health Inc. of $8.6 million
for the six months ended June 30,
2023. This includes non-cash impairment of assets of
$3.5 million, non-cash impairment of
goodwill of $3.2 million and
$5.7 million non-cash gain on warrant
liability in the first six months of 2024.
- EBITDA, attributable to Nutex Health Inc. of $15.6 million as compared to EBITDA, attributable
to Nutex Health Inc. of $4.1 million
for the six months ended June 30,
2023.
- Adjusted EBITDA, attributable to Nutex Health Inc. of
$16.6 million as compared to Adjusted
EBITDA, attributable to Nutex Health Inc. of $6.4 million for the six months ended
June 30, 2023, an increase of
159%.
- Total visits from the Hospital Division were 81,276 for the six
months ended June 30, 2024 as
compared to 65,244 for the same period in 2023, an increase of
16,032 or 24.6%. Of this visit growth, mature hospitals increased
by 9.7% in the six months ended June 30,
2024 compared to the same period in 2023.
- Net cash from operating activities of $16.3 million. As of June
30, 2024, the Company had total assets of $422.4 million, including cash and cash
equivalents of $40.8 million and
long-term debt of $22.4 million.
Note: EBITDA and Adjusted EBITDA are non-GAAP
financial metrics. A reconciliation of non-GAAP to GAAP
measures is included below in this earnings release.
"We are pleased to report 29% revenue growth, Adjusted
EBITDA, attributable to Nutex Health Inc. of $12.0 million and a 150% increase in hospital
division operating income to $22.8
million in the second quarter ended June 30, 2024, showing our continued focus on top
line growth, increasing cash flow as well as improving
profitability," stated Jon Bates,
Chief Financial Officer of Nutex Health.
"Nutex Health is executing extremely well, and we plan to
continue to advance our strategic initiatives to drive sustainable
growth. We delivered solid revenue growth while accelerating cash
flow and strengthening our balance sheet in the first half of 2024.
We are confident that we are taking the right steps to lay the
foundation for long-term success and to increasing shareholder
value," stated Warren Hosseinion,
M.D., President of Nutex Health.
"We had a solid Second Quarter with strong year over year
growth. Volume continues to increase overall among our hospitals.
Our average payment by insurers of patient claims increased, a
trend we are optimistic will persist as we continue to work the NSA
claims through the Independent Dispute Resolution process," stated
Tom Vo, M.D., MBA, Chairman and
Chief Executive Officer of Nutex Health.
For more details on the Company's Second Quarter 2024
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, 2024
|
|
December 31, 2023
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
40,807,975
|
|
$
|
22,002,056
|
Accounts
receivable
|
|
|
60,658,832
|
|
|
58,624,301
|
Accounts receivable -
related parties
|
|
|
4,577,189
|
|
|
4,152,068
|
Inventories
|
|
|
2,759,448
|
|
|
3,390,584
|
Prepaid expenses and
other current assets
|
|
|
5,066,994
|
|
|
2,679,394
|
Total current
assets
|
|
|
113,870,438
|
|
|
90,848,403
|
Property and equipment,
net
|
|
|
78,881,900
|
|
|
81,387,649
|
Operating right-of-use
assets
|
|
|
11,690,957
|
|
|
11,853,082
|
Finance right-of-use
assets
|
|
|
187,096,271
|
|
|
176,146,329
|
Intangible assets,
net
|
|
|
16,180,504
|
|
|
20,512,636
|
Goodwill,
net
|
|
|
13,918,719
|
|
|
17,066,263
|
Other assets
|
|
|
764,462
|
|
|
431,135
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
422,403,251
|
|
$
|
398,245,497
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
16,742,370
|
|
$
|
18,899,196
|
Accounts payable -
related parties
|
|
|
6,796,475
|
|
|
6,382,197
|
Lines of
credit
|
|
|
2,909,296
|
|
|
3,371,676
|
Current portion of
long-term debt
|
|
|
14,223,944
|
|
|
10,808,721
|
Operating lease
liabilities, current portion
|
|
|
1,998,512
|
|
|
1,579,987
|
Finance lease
liabilities, current portion
|
|
|
5,570,604
|
|
|
4,315,979
|
Accrued expenses and
other current liabilities
|
|
|
23,417,191
|
|
|
12,955,296
|
Total current
liabilities
|
|
|
71,658,392
|
|
|
58,313,052
|
Long-term debt,
net
|
|
|
22,406,516
|
|
|
26,314,733
|
Warrant
liability
|
|
|
2,000,714
|
|
|
-
|
Operating lease
liabilities, net
|
|
|
14,690,566
|
|
|
15,479,639
|
Finance lease
liabilities, net
|
|
|
226,820,535
|
|
|
213,886,213
|
Deferred tax
liabilities
|
|
|
2,804,492
|
|
|
5,145,754
|
Total
liabilities
|
|
|
340,381,215
|
|
|
319,139,391
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common stock, $0.001
par value; 950,000,000 shares authorized; 4,987,268 and
4,511,199
shares issued and outstanding as of June 30, 2024 and
December 31, 2023, respectively
|
|
|
4,988
|
|
|
4,511
|
Additional paid-in
capital
|
|
|
472,529,641
|
|
|
470,521,218
|
Accumulated
deficit
|
|
|
(409,800,662)
|
|
|
(409,072,539)
|
Nutex Health Inc.
equity
|
|
|
62,733,967
|
|
|
61,453,190
|
Noncontrolling
interests
|
|
|
19,288,069
|
|
|
17,652,916
|
Total equity
|
|
|
82,022,036
|
|
|
79,106,106
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
422,403,251
|
|
$
|
398,245,497
|
NUTEX HEALTH
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospital
division
|
|
$
|
67,604,878
|
|
$
|
51,611,803
|
|
$
|
127,634,247
|
|
$
|
100,899,967
|
Population health
management division
|
|
|
8,477,383
|
|
|
7,312,651
|
|
|
15,901,801
|
|
|
14,353,904
|
Total
revenue
|
|
|
76,082,261
|
|
|
58,924,454
|
|
|
143,536,048
|
|
|
115,253,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and
benefits
|
|
|
28,398,075
|
|
|
24,860,702
|
|
|
55,401,219
|
|
|
50,697,375
|
Contract
services
|
|
|
9,505,222
|
|
|
9,747,873
|
|
|
20,824,676
|
|
|
18,937,204
|
Medical
supplies
|
|
|
3,588,464
|
|
|
3,264,202
|
|
|
8,910,306
|
|
|
7,288,084
|
Depreciation and
amortization
|
|
|
4,532,804
|
|
|
4,169,160
|
|
|
8,719,006
|
|
|
8,162,907
|
Other
|
|
|
7,496,465
|
|
|
7,235,594
|
|
|
16,962,432
|
|
|
15,673,655
|
Total operating costs
and expenses
|
|
|
53,521,030
|
|
|
49,277,531
|
|
|
110,817,639
|
|
|
100,759,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
22,561,231
|
|
|
9,646,923
|
|
|
32,718,409
|
|
|
14,494,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and other
costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
Facilities closing
costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
217,266
|
Stock-based
compensation expense
|
|
|
(61,241)
|
|
|
249,645
|
|
|
(12,074)
|
|
|
2,149,645
|
Impairment of
assets
|
|
|
3,473,635
|
|
|
-
|
|
|
3,473,635
|
|
|
-
|
Impairment of
goodwill
|
|
|
3,197,391
|
|
|
-
|
|
|
3,197,391
|
|
|
-
|
General and
administrative expenses
|
|
|
10,652,390
|
|
|
9,759,816
|
|
|
19,310,800
|
|
|
16,935,360
|
Total corporate and
other costs
|
|
|
17,262,175
|
|
|
10,009,461
|
|
|
25,969,752
|
|
|
19,302,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
5,299,056
|
|
|
(362,538)
|
|
|
6,748,657
|
|
|
(4,807,625)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
5,054,532
|
|
|
4,843,048
|
|
|
9,498,894
|
|
|
7,983,137
|
Gain on warrant
liability
|
|
|
(3,060,096)
|
|
|
-
|
|
|
(5,660,843)
|
|
|
-
|
Other (income)
expense
|
|
|
(599,502)
|
|
|
(123,528)
|
|
|
(840,694)
|
|
|
123,927
|
Income (loss) before
taxes
|
|
|
3,904,122
|
|
|
(5,082,058)
|
|
|
3,751,300
|
|
|
(12,914,689)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
893,892
|
|
|
(815,612)
|
|
|
1,283,557
|
|
|
(1,726,271)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
3,010,230
|
|
|
(4,266,446)
|
|
|
2,467,743
|
|
|
(11,188,418)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income
(loss) attributable to noncontrolling interests
|
|
|
3,374,278
|
|
|
(787,399)
|
|
|
3,195,866
|
|
|
(2,562,092)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Nutex Health Inc.
|
|
$
|
(364,048)
|
|
$
|
(3,479,047)
|
|
$
|
(728,123)
|
|
$
|
(8,626,326)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.07)
|
|
$
|
(0.79)
|
|
$
|
(0.15)
|
|
$
|
(1.98)
|
Diluted
|
|
$
|
(0.07)
|
|
$
|
(0.79)
|
|
$
|
(0.15)
|
|
$
|
(1.98)
|
NUTEX HEALTH
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
2,467,743
|
|
$
|
(11,188,418)
|
Adjustments to
reconcile net loss to net cash from operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
8,719,006
|
|
|
8,162,907
|
Gain on warrant
liability
|
|
|
(5,660,843)
|
|
|
-
|
Impairment of
goodwill
|
|
|
3,197,391
|
|
|
-
|
Impairment of
assets
|
|
|
3,473,635
|
|
|
-
|
Derecognition of
goodwill
|
|
|
453,017
|
|
|
-
|
Stock-based
compensation expense
|
|
|
(12,074)
|
|
|
2,149,645
|
Deferred tax
benefit
|
|
|
(2,341,262)
|
|
|
(1,724,111)
|
Debt accretion
expense
|
|
|
579,121
|
|
|
953,236
|
Loss on lease
termination
|
|
|
-
|
|
|
58,211
|
Non-cash lease expense
(income)
|
|
|
(208,423)
|
|
|
61,734
|
Changes in operating
assets and liabilities, net of the effects of
acquisitions:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(2,148,508)
|
|
|
6,921,239
|
Accounts receivable -
related party
|
|
|
(425,121)
|
|
|
(797,058)
|
Inventories
|
|
|
631,136
|
|
|
1,082,509
|
Prepaid expenses and
other current assets
|
|
|
(1,692,907)
|
|
|
(3,048,993)
|
Accounts
payable
|
|
|
(1,617,151)
|
|
|
(7,189,929)
|
Accounts payable -
related party
|
|
|
414,278
|
|
|
3,453
|
Accrued expenses and
other current liabilities
|
|
|
10,481,831
|
|
|
5,619,907
|
Net cash from
operating activities
|
|
|
16,310,869
|
|
|
1,064,332
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Acquisitions of
property and equipment
|
|
|
(1,291,492)
|
|
|
(7,446,902)
|
Cash related to sale of
business
|
|
|
(711,306)
|
|
|
-
|
Cash related to
deconsolidation of Real Estate Entities
|
|
|
-
|
|
|
(1,039,157)
|
Net cash from
investing activities
|
|
|
(2,002,798)
|
|
|
(8,486,059)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from lines of
credit
|
|
|
132,167
|
|
|
1,949,919
|
Proceeds from notes
payable
|
|
|
4,915,000
|
|
|
16,952,905
|
Repayments of lines of
credit
|
|
|
(594,547)
|
|
|
(1,592,714)
|
Repayments of notes
payable
|
|
|
(6,156,543)
|
|
|
(7,481,893)
|
Repayments of finance
leases
|
|
|
(1,440,016)
|
|
|
(1,870,670)
|
Proceeds from common
stock issuance, net issuance costs
|
|
|
9,202,500
|
|
|
-
|
Members'
contributions
|
|
|
300,850
|
|
|
649,550
|
Members'
distributions
|
|
|
(1,861,563)
|
|
|
(2,686,304)
|
Net cash from
financing activities
|
|
|
4,497,848
|
|
|
5,920,793
|
Net change in cash and
cash equivalents
|
|
|
18,805,919
|
|
|
(1,500,934)
|
Cash and cash
equivalents - beginning of the period
|
|
|
22,002,056
|
|
|
34,255,264
|
Cash and cash
equivalents - end of the period
|
|
$
|
40,807,975
|
|
$
|
32,754,330
|
Non-GAAP Financial Measures
(Unaudited)
EBITDA and Adjusted
EBITDA. EBITDA and Adjusted EBITDA are 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 EBITDA
and Adjusted EBITDA are useful because it allows us to more
effectively evaluate our operating performance.
We define EBITDA as net income (loss) attributable to
Nutex Health Inc. plus interest expense, income taxes, depreciation
and amortization.
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
an allocation to noncontrolling interests, (gain)/loss on warrant
liability, stock-based compensation, certain defined items of
expense, and any acquisition-related costs and impairments. A
reconciliation of net income to EBITDA and Adjusted EBITDA is
included below. EBITDA and Adjusted EBITDA are 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,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Reconciliation of net
loss attributable to Nutex Health Inc. to Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to Nutex Health Inc.
|
|
$
|
(364,048)
|
|
$
|
(3,479,047)
|
|
$
|
(728,123)
|
|
$
|
(8,626,326)
|
Depreciation and
amortization
|
|
|
4,532,804
|
|
|
4,169,160
|
|
|
8,719,006
|
|
|
8,162,907
|
Interest expense,
net
|
|
|
5,054,532
|
|
|
4,843,048
|
|
|
9,498,894
|
|
|
7,983,137
|
Income tax expense
(benefit)
|
|
|
893,892
|
|
|
(815,612)
|
|
|
1,283,557
|
|
|
(1,726,271)
|
Allocation to
noncontrolling interests
|
|
|
(1,627,829)
|
|
|
(972,655)
|
|
|
(3,172,002)
|
|
|
(1,727,965)
|
EBITDA attributable to
Nutex Health Inc.
|
|
|
8,489,351
|
|
|
3,744,894
|
|
|
15,601,332
|
|
|
4,065,482
|
Facilities closing
costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
217,266
|
Gain on warrant
liability
|
|
|
(3,060,096)
|
|
|
-
|
|
|
(5,660,843)
|
|
|
-
|
Impairment of
assets
|
|
|
3,473,635
|
|
|
|
|
|
3,473,635
|
|
|
|
Impairment of
goodwill
|
|
|
3,197,391
|
|
|
-
|
|
|
3,197,391
|
|
|
-
|
Stock-based
compensation expense
|
|
|
(61,241)
|
|
|
249,645
|
|
|
(12,074)
|
|
|
2,149,645
|
Adjusted EBITDA
attributable to Nutex Health Inc.
|
|
$
|
12,039,040
|
|
$
|
3,994,539
|
|
$
|
16,599,441
|
|
$
|
6,432,393
|
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 21 facilities in nine 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 the interim final and final rules
implemented under the No Surprises Act , 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 Annual Report on Form 10-K for the
year ended December 31, 2023 and in
the Quarterly Report on Form 10-Q for the period ended
March 31, 2024 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-and-six-months-ended-june-30-2024-financial-results-302218405.html
SOURCE Nutex Health, Inc.