NUTEX HEALTH REPORTS THIRD QUARTER AND YEAR TO DATE SEPTEMBER 30, 2024 FINANCIAL RESULTS

    Date:

    • TOTAL REVENUE OF $222.3 MILLION FOR THE FIRST NINE MONTHS OF 2024 VS. $178.0 MILLION FOR THE SAME PERIOD IN 2023, AN INCREASE OF 25%
    • HOSPITAL DIVISION VISITS OF 122,944 FOR THE FIRST NINE MONTHS OF 2024 VS. VISITS OF 102,798 FOR THE SAME PERIOD IN 2023, AN INCREASE OF 20%
    • HOSPITAL DIVISION OPERATING INCOME OF $54.7 MILLION FOR THE FIRST NINE MONTHS OF 2024 VS. $21.1 MILLION FOR THE SAME PERIOD IN 2023, AN INCREASE OF 159%
    • NET CASH FROM OPERATING ACTIVITIES OF $23.1 MILLION FOR THE FIRST NINE MONTHS OF 2024
    • COMPANY CONTINUES ITS FOCUS ON INCREASING CASH FLOW

    HOUSTON, Nov. 7, 2024 /PRNewswire/ — Nutex Health Inc. (“Nutex Health” or the “Company”) NUTX, a physician-led, integrated healthcare delivery system comprised of 22 state-of-the-art micro hospitals and hospital outpatient departments (HOPDs) in ten states and primary care-centric, risk-bearing physician networks, today announced third quarter 2024 financial results for the three and nine months ended September 30, 2024.

    Financial Highlights for the Three Months Ended September 30, 2024:

    • Total revenue of $78.8 million as compared to total revenue of $62.7 million for the three months ended September 30, 2023, an increase of 26%. Of this revenue growth, mature hospitals, which are hospitals opened prior to December 31, 2021, increased by 20.7% in 2024 compared to the same period in 2023.
    • Operating income (including the negative impact of a $2.0 million non-cash stock-based compensation expense) for the three months ended September 30, 2024 was $9.7 million, compared to an operating loss of approximately $0.8 million for the three months ended September 30, 2023, representing a $10.5 million improvement quarter over quarter.
    • Net loss attributable to Nutex Health of $8.8 million in the three months ended September 30, 2024 as compared to a net loss attributable to Nutex Health of $5.5 million for the three months ended September 30, 2023. This $8.8 million amount includes a $6.7 million non-cash loss on warrant liability as well as the $2.0 million non-cash stock-based compensation expense noted above.
    • EBITDA attributable to Nutex Health of $4.3 million, as compared to EBITDA attributable to Nutex Health of $1.2 million for the three months ended September 30, 2023.
    • Adjusted EBITDA attributable to Nutex Health of $13.5 million, as compared to Adjusted EBITDA attributable to Nutex Health of $1.3 million for the three months ended September 30, 2023, an increase of 938%.
    • Total visits from the Hospital Division were 41,668 for the third quarter 2024, as compared to 37,443 for the third quarter 2023, an increase of 4,225 or 11.3%. Of this visit growth, mature hospitals increased by 3.8% in 2024 compared to the same period in 2023.

    Financial Highlights for the Nine Months Ended September 30, 2024:

    • Total revenue of $222.3 million as compared to total revenue of $178.0 million for the nine months ended September 30, 2023, an increase of approximately 25%. Of this revenue growth, mature hospitals, which are hospitals opened prior to December 31, 2021, increased by 13.5% in 2024 compared to 2023.
    • Operating income for the nine months ended September 30, 2024 was $16.4 million compared to an operating loss of $5.6 million for the nine months ended September 30, 2023, representing a $22.0 million improvement year over year.
    • Net loss attributable to Nutex Health of $9.5 million as compared to net loss attributable to Nutex Health of $14.2 million for the nine months ended September 30, 2023. This $9.5 million amount includes non-cash items of $10.2 million (non-cash stock-based compensation expense of $2.0 million, non-cash impairment of assets of $3.9 million, non-cash impairment of goodwill of $3.2 million and $1.1 million non-cash loss on warrant liability) in the first nine months of 2024, while the $14.2 million amount includes non-cash stock-based compensation expense of $2.2 million in the first nine months of 2023.
    • EBITDA attributable to Nutex Health of $19.9 million, as compared to EBITDA attributable to Nutex Health of $5.3 million for the nine months ended September 30, 2023.
    • Adjusted EBITDA attributable to Nutex Health of $30.1 million, as compared to Adjusted EBITDA attributable to Nutex Health of $7.7 million for the nine months ended September 30, 2023, an increase of 290%.
    • Total visits from the Hospital Division were 122,944 for the nine months ended September 30, 2024, as compared to 102,798 for the same period in 2023, an increase of 20,146 or 19.6%. Of this visit growth, mature hospitals increased by 7.7% in the nine months ended September 30, 2024 compared to the same period in 2023.
    • Net cash from operating activities of $23.1 million for the nine months ended September 30, 2024. 
    • As of September 30, 2024, the Company had total assets of $438.5 million, including cash and cash equivalents of $46.9 million and long-term debt of $26.8 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 25% revenue growth, Adjusted EBITDA attributable to Nutex Health of $13.5 million and a 209% increase in gross profit to $21.9 million in the third quarter ended September 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 had another outstanding quarter. The strategic and operational decisions we have made over the last nine months are driving this strong performance, as demonstrated by another quarter of year-over-year growth in revenue, EBITDA and Adjusted EBITDA as well as incremental growth in cash flow. We are confident that our momentum will continue and plan on growing our hospital and population health divisions responsibly as we drive value for our shareholders,” stated Warren Hosseinion, M.D., President of Nutex Health.

    “The four de-novo hospitals that we opened in 2023 are ramping up nicely, resulting in strong year-over-year growth in both revenue and patient volume. Volumes and revenue continue to increase among our mature hospitals, both on the outpatient side as well as the inpatient side, which still have excess capacity. Our average payment by insurers of patient claims also increased, a trend we are optimistic will persist as we continue to work the NSA (No Surprises Act) 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 Third 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)

    September 30, 2024

    December 31, 2023

    Assets

    Current assets:

    Cash and cash equivalents

    $

    46,909,281

    $

    22,002,056

    Accounts receivable

    62,745,336

    58,624,301

    Accounts receivable – related parties

    3,602,189

    4,152,068

    Inventories

    2,259,168

    3,390,584

    Prepaid expenses and other current assets

    4,279,360

    2,679,394

    Total current assets

    119,795,334

    90,848,403

    Property and equipment, net

    78,246,467

    81,387,649

    Operating right-of-use assets

    11,442,369

    11,853,082

    Finance right-of-use assets

    198,462,381

    176,146,329

    Intangible assets, net

    15,855,392

    20,512,636

    Goodwill, net

    13,918,719

    17,066,263

    Other assets

    767,942

    431,135

    Total assets

    $

    438,488,604

    $

    398,245,497

    Liabilities and Equity

    Current liabilities:

    Accounts payable

    $

    10,320,933

    $

    18,899,196

    Accounts payable – related parties

    6,342,883

    6,382,197

    Lines of credit

    3,384,517

    3,371,676

    Current portion of long-term debt

    10,499,532

    10,808,721

    Operating lease liabilities, current portion

    2,060,758

    1,579,987

    Finance lease liabilities, current portion

    5,261,458

    4,315,979

    Accrued expenses and other current liabilities

    29,688,665

    12,955,296

    Total current liabilities

    67,558,746

    58,313,052

    Long-term debt, net

    26,801,811

    26,314,733

    Warrant liability

    5,715,143

    Operating lease liabilities, net

    14,307,320

    15,479,639

    Finance lease liabilities, net

    240,924,194

    213,886,213

    Deferred tax liabilities

    3,402,965

    5,145,754

    Total liabilities

    358,710,179

    319,139,391

    Commitments and contingencies

    Equity:

    Common stock, $0.001 par value; 950,000,000 shares authorized; 5,215,709 and 4,511,199

    shares issued and outstanding as of September 30, 2024 and December 31, 2023,

    respectively

    5,216

    4,511

    Additional paid-in capital

    479,024,452

    470,521,218

    Accumulated deficit

    (418,588,975)

    (409,072,539)

    Nutex Health Inc. equity

    60,440,693

    61,453,190

    Noncontrolling interests

    19,337,732

    17,652,916

    Total equity

    79,778,425

    79,106,106

    Total liabilities and equity

    $

    438,488,604

    $

    398,245,497

     

    NUTEX HEALTH INC.

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    (Unaudited)

     

    Three Months Ended September 30, 

    Nine Months Ended September 30, 

    2024

    2023

    2024

    2023

    Revenue:

    Hospital division

    $

    71,732,529

    $

    54,585,263

    $

    199,366,776

    $

    155,485,230

    Population health management division

    7,062,340

    8,137,709

    22,964,141

    22,491,613

    Total revenue

    78,794,869

    62,722,972

    222,330,917

    177,976,843

    Operating costs and expenses:

    Payroll and benefits

    29,848,083

    28,873,144

    85,249,302

    79,570,519

    Contract services

    11,657,010

    9,035,650

    32,481,686

    27,972,854

    Medical supplies

    3,982,598

    3,460,130

    12,892,904

    10,748,214

    Depreciation and amortization

    4,972,478

    4,745,941

    13,691,484

    12,908,848

    Other

    6,417,886

    9,541,894

    23,380,318

    25,215,549

    Total operating costs and expenses

    56,878,055

    55,656,759

    167,695,694

    156,415,984

    Gross profit

    21,916,814

    7,066,213

    54,635,223

    21,560,859

    Corporate and other costs:

    Facilities closing costs

    217,266

    Acquisition costs

    43,464

    43,464

    Stock-based compensation expense

    1,963,518

    49,167

    1,951,444

    2,198,812

    Impairment of assets

    425,221

    3,898,856

    Impairment of goodwill

    3,197,391

    General and administrative expenses

    9,865,330

    7,794,808

    29,176,130

    24,730,168

    Total corporate and other costs

    12,254,069

    7,887,439

    38,223,821

    27,189,710

    Operating income (loss)

    9,662,745

    (821,226)

    16,411,402

    (5,628,851)

    Interest expense, net

    5,381,040

    4,098,179

    14,879,934

    12,081,316

    Loss on warrant liability

    6,733,552

    1,072,709

    Other (income) expense

    128,645

    (53,206)

    (712,049)

    70,721

    Income (loss) before taxes

    (2,580,492)

    (4,866,199)

    1,170,808

    (17,780,888)

    Income tax expense (benefit)

    4,584,518

    (342,259)

    5,868,075

    (2,068,530)

    Net loss

    (7,165,010)

    (4,523,940)

    (4,697,267)

    (15,712,358)

    Less: net income (loss) attributable to

    noncontrolling interests

    1,623,303

    1,018,451

    4,819,169

    (1,543,641)

    Net loss attributable to Nutex Health Inc.

    $

    (8,788,313)

    $

    (5,542,391)

    $

    (9,516,436)

    $

    (14,168,717)

    Loss per common share:

    Basic

    $

    (1.72)

    $

    (1.25)

    $

    (1.91)

    $

    (3.23)

    Diluted

    $

    (1.72)

    $

    (1.25)

    $

    (1.91)

    $

    (3.23)

     

    NUTEX HEALTH INC.

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Unaudited)

    Nine Months Ended September 30, 

    2024

    2023

    Cash flows from operating activities:

    Net income (loss)

    $

    (4,697,267)

    $

    (15,712,358)

    Adjustments to reconcile net loss to net cash from operating activities:

    Depreciation and amortization

    13,691,484

    12,908,848

    Loss on warrant liability

    1,072,709

    Impairment of goodwill

    3,197,391

    Impairment of assets

    3,898,856

    Derecognition of goodwill

    453,017

    Stock-based compensation expense

    1,951,444

    2,198,812

    Deferred tax benefit

    (1,742,789)

    (2,068,530)

    Debt accretion expense

    804,760

    1,251,867

    Loss on lease termination

    58,210

    Non-cash lease expense (income)

    (280,835)

    89,338

    Changes in operating assets and liabilities, net of the effects of acquisitions:

    Accounts receivable

    (4,253,034)

    4,444,706

    Accounts receivable – related party

    549,879

    (949,408)

    Inventories

    1,131,416

    850,569

    Prepaid expenses and other current assets

    (1,360,721)

    (3,771,946)

    Accounts payable

    (7,975,067)

    (6,015,250)

    Accounts payable – related party

    (39,314)

    2,228,527

    Accrued expenses and other current liabilities

    16,698,416

    7,519,285

    Net cash from operating activities

    23,100,345

    3,032,670

    Cash flows from investing activities:

    Acquisitions of property and equipment

    (1,908,651)

    (10,322,487)

    Cash related to sale of business

    (361,325)

    Payments for acquisitions of businesses, net of cash acquired

    (743,837)

    Cash related to deconsolidation of Real Estate Entities

    (1,039,157)

    Net cash from investing activities

    (2,269,976)

    (12,105,481)

    Cash flows from financing activities:

    Proceeds from lines of credit

    1,132,168

    2,340,911

    Proceeds from notes payable

    7,014,999

    16,952,905

    Proceeds from convertible notes

    891,000

    Repayments of lines of credit

    (1,119,327)

    (1,592,714)

    Repayments of notes payable

    (8,332,482)

    (10,557,758)

    Repayments of finance leases

    (1,923,687)

    (2,704,082)

    Proceeds from common stock issuance, net issuance costs

    9,202,500

    Proceeds from exercise of warrants

    801,000

    Members’ contributions

    960,913

    649,550

    Members’ distributions

    (3,659,228)

    (4,335,532)

    Net cash from financing activities

    4,076,856

    1,644,280

    Net change in cash and cash equivalents

    24,907,225

    (7,428,531)

    Cash and cash equivalents – beginning of the period

    22,002,056

    34,255,264

    Cash and cash equivalents – end of the period

    $

    46,909,281

    $

    26,826,733

     

    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 September 30, 

    Nine Months Ended September 30, 

    2024

    2023

    2024

    2023

    Reconciliation of net loss attributable to Nutex Health

    Inc. to Adjusted EBITDA:

    Net loss attributable to Nutex Health Inc.

    $

    (8,788,313)

    $

    (5,542,391)

    $

    (9,516,436)

    $

    (14,168,717)

    Depreciation and amortization

    4,972,478

    4,745,941

    13,691,484

    12,908,848

    Interest expense, net

    5,381,040

    4,098,179

    14,879,934

    12,081,316

    Income tax expense (benefit)

    4,584,518

    (342,259)

    5,868,075

    (2,068,530)

    Allocation to noncontrolling interests

    (1,808,422)

    (1,772,908)

    (4,980,424)

    (3,500,873)

    EBITDA attributable to Nutex Health Inc.

    4,341,301

    1,186,562

    19,942,633

    5,252,044

    Facilities closing costs

    217,266

    Loss on warrant liability

    6,733,552

    1,072,709

    Impairment of assets

    425,221

    3,898,856

    Impairment of goodwill

    3,197,391

    Acquisition costs

    43,464

    43,464

    Stock-based compensation expense

    1,963,518

    49,167

    1,951,444

    2,198,812

    Adjusted EBITDA attributable to Nutex Health Inc.

    $

    13,463,592

    $

    1,279,193

    $

    30,063,033

    $

    7,711,586

     

    About Nutex Health Inc.

    Headquartered in Houston, Texas and founded in 2011, Nutex Health Inc. 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 ten 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.

    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 Reports on Form 10-Q for the periods ending March 31, 2024 and June 30, 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.

    Cision View original content:https://www.prnewswire.com/news-releases/nutex-health-reports-third-quarter-and-year-to-date-september-30-2024-financial-results-302299409.html

    SOURCE Nutex Health, Inc.

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