Full Press Release Details
HEALTH reports secONd quarter 2022 financial results
TX (PRNewswire) - AUGUST 22, 2022 - Nutex Health Inc. ("Nutex Health" or the "Company")
(NASDAQ: NUTX), a physician-led, technology-enabled integrated healthcare delivery system comprised of 21 state-of-the-art micro hospitals
in 8 states and primary care-centric, risk-bearing physician networks, today announced fiscal year 2022 2nd Quarter financial
results for the three months ended June 30, 2022 and the filing of its current report on Form 10-Q for the period ended June 30, 2022
("10-Q") with the Securities and Exchange Commission.
Highlights for the Three Months Ended June 30, 2022 (Unaudited):
Highlights for the Six Months Ended June 30, 2022 (Unaudited):
EBITDA and Adjusted EBITDA are non-GAAP financial metrics. A reconciliation of non-GAAP to GAAP measures is included below in this earnings
to the Financial Highlights for the Three Months Ended June 30, 2022:
the second quarter, our management team focused on integrating our two companies post-merger," stated Jon Bates, Chief Financial
Officer of Nutex Health. "We believe this integration has now been substantially completed."
are very proud of the hard work of our physicians, nurses, hospital staff and corporate staff to get to this stage. We continue our efforts
to grow the Company while providing the best patient care possible. This philosophy dictates all of our decision making as an organization,"
stated Tom Vo, M.D., MBA, Chairman and Chief Executive Officer of Nutex Health. "We are also excited about our pipeline of new
facilities which are either under construction or in advanced planning stages throughout the country."
Company has formed two new independent practice associations (IPAs), one in Houston and one in South Florida. We are actively working
on contracting with primary care physicians as well as specialists. Once this phase is completed, the Company expects to contract with
health insurance plans and start enrolling patients in 2023," stated Warren Hosseinion, M.D., President of Nutex Health. "We
believe that our unique integrated model which combines our cloud-based data analytics platform, micro hospitals and IPAs will create
long-term value for our shareholders."
more details on the Company's Second Quarter 2022 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.
CONSOLIDATED BALANCE SHEETS
| June 30, 2022 | December 31, 2021 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 47,600,621 | $ | 36,118,284 | ||
| Accounts receivable | 94,653,853 | 112,766,317 | ||||
| Accounts receivable - related parties | 1,391,049 | 1,993,117 | ||||
| Inventories | 2,907,182 | 2,814,178 | ||||
| Prepaid expenses and other current assets | 2,427,849 | 323,283 | ||||
| Total current assets | 148,980,554 | 154,015,179 | ||||
| Property and equipment, net | 67,822,682 | 151,912,500 | ||||
| Operating right-of-use assets | 23,686,253 | 21,829,552 | ||||
| Financing right-of-use assets | 183,542,400 | 64,614,781 | ||||
| Intangible assets, net | 21,964,230 | 682,649 | ||||
| Goodwill | 425,355,837 | 1,139,297 | ||||
| Other assets | 441,304 | 456,085 | ||||
| Total assets | $ | 871,793,260 | $ | 394,650,043 | ||
| Liabilities and Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 19,954,714 | $ | 13,582,664 | ||
| Accounts payable - related parties | 3,614,326 | 4,070,438 | ||||
| Lines of credit | 2,592,714 | 72,055 | ||||
| Current portion of long-term debt | 7,735,760 | 10,158,932 | ||||
| Operating lease liabilities, current portion | 1,789,871 | 1,489,997 | ||||
| Financing lease liabilities, current portion | 3,592,382 | 1,452,447 | ||||
| Accrued expenses and other current liabilities | 17,191,260 | 6,864,426 | ||||
| Total current liabilities | 56,471,027 | 37,690,959 | ||||
| Long-term debt, net | 16,305,258 | 78,821,985 | ||||
| Operating lease liabilities, net | 22,616,233 | 20,820,588 | ||||
| Financing lease liabilities , net | 192,516,749 | 65,735,501 | ||||
| Deferred tax liabilities | 17,469,750 | - | ||||
| Total liabilities | 305,379,017 | 203,069,033 | ||||
| Commitments and contingencies | ||||||
| Equity: | ||||||
| Common stock, $0.001 par value; 900,000,000 shares authorized; 648,918,458 and 592,791,712 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 648,918 | 592,792 | ||||
| Additional paid-in capital | 467,402,221 | 11,742,891 | ||||
| Retained earnings | 57,638,688 | 102,315,623 | ||||
| Nutex Health Inc. equity | 525,689,827 | 114,651,306 | ||||
| Noncontrolling interests | 40,724,416 | 76,929,704 | ||||
| Total equity | 566,414,243 | 191,581,010 | ||||
| Total liabilities and equity | $ | 871,793,260 | $ | 394,650,043 |
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three months ended June 30 | Six months ended June 30 | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue: | ||||||||||||||||
| Hospital division | $ | 51,604,679 | $ | 62,814,672 | $ | 130,731,921 | $ | 150,157,914 | ||||||||
| Population health management division | 6,443,254 | - | 6,443,254 | - | ||||||||||||
| Total revenue | 58,047,933 | 62,814,672 | 137,175,175 | 150,157,914 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Payroll | 24,045,279 | 18,261,313 | 48,502,680 | 36,026,695 | ||||||||||||
| Contract services | 13,478,349 | 4,235,963 | 18,883,944 | 9,036,276 | ||||||||||||
| Medical supplies | 2,581,552 | 2,572,970 | 6,841,031 | 4,972,662 | ||||||||||||
| Insurance expense | 1,551,696 | 1,971,574 | 3,927,679 | 3,619,305 | ||||||||||||
| Depreciation and amortization | 3,132,485 | 2,223,461 | 5,529,346 | 4,001,640 | ||||||||||||
| Other | 8,266,046 | 4,412,059 | 14,099,991 | 8,714,161 | ||||||||||||
| Total operating costs and expenses | 53,055,407 | 33,677,340 | 97,784,671 | 66,370,739 | ||||||||||||
| Gross profit | 4,992,526 | 29,137,332 | 39,390,504 | 83,787,175 | ||||||||||||
| Corporate cost: | ||||||||||||||||
| Acquisition costs | 3,885,666 | - | 3,885,666 | - | ||||||||||||
| General and administrative expenses | 2,485,337 | 1,533,002 | 7,644,342 | 3,522,040 | ||||||||||||
| Total corporate cost | 6,371,003 | 1,533,002 | 11,530,008 | 3,522,040 | ||||||||||||
| Operating income (loss) | (1,378,477 | ) | 27,604,330 | 27,860,496 | 80,265,135 | |||||||||||
| Interest expense | 3,849,629 | 1,504,933 | 5,705,603 | 2,991,090 | ||||||||||||
| Other expense (income) | (1,403,222 | ) | (4,060,149 | ) | 977,323 | (3,921,356 | ) | |||||||||
| Income (loss) before taxes | (3,824,884 | ) | 30,159,546 | 21,177,570 | 81,195,401 | |||||||||||
| Income tax expense | 19,653,286 | 481,501 | 19,829,609 | 638,354 | ||||||||||||
| Net income (loss) | (23,478,170 | ) | 29,678,045 | 1,347,961 | 80,557,047 | |||||||||||
| Less: net income (loss) attributable to noncontrolling interests | (4,082,418 | ) | 2,618,644 | (786,589 | ) | 15,735,510 | ||||||||||
| Net income (loss) attributable to Nutex Health Inc. | $ | (19,395,752 | ) | $ | 27,059,401 | $ | 2,134,550 | $ | 64,821,537 | |||||||
| Earnings (loss) per common share | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | 0.05 | $ | 0.00 | $ | 0.11 | |||||||
| Diluted | $ | (0.03 | ) | $ | 0.05 | $ | 0.00 | $ | 0.11 | |||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 646,370,173 | 592,791,712 | 619,728,949 | 592,791,712 | ||||||||||||
| Diluted | 658,991,192 | 592,791,712 | 626,992,817 | 592,791,712 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Six months ended June 30 | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 1,347,961 | $ | 80,557,047 | ||||
| Adjustment to reconcile net income to net cash from operating activities: | ||||||||
| Depreciation and amortization | 5,529,346 | 4,001,640 | ||||||
| Stock-based compensation expense | 54,166 | - | ||||||
| Other income - gain on PPP loan forgiveness | - | (4,525,600 | ) | |||||
| Deferred tax expense | 12,013,748 | - | ||||||
| Debt accretion expense | 722,536 | - | ||||||
| Non-cash lease expense | 109,114 | (144,677 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 19,745,666 | 17,338,754 | ||||||
| Accounts receivable - related party | 602,068 | (150 | ) | |||||
| Inventories | (93,004 | ) | (2,513 | ) | ||||
| Prepaid expenses and other current assets | (1,977,182 | ) | (1,022,062 | ) | ||||
| Accounts payable | 6,358,427 | 4,845,359 | ||||||
| Accounts payable - related party | (630,490 | ) | (793,487 | ) | ||||
| Accrued expenses and other current liabilities | 9,645,922 | 2,536,291 | ||||||
| Other current assets | (25,219 | ) | (36,120 | ) | ||||
| Net cash from operating activities | 53,403,059 | 102,754,482 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisitions of property and equipment | (16,621,726 | ) | (21,714,755 | ) | ||||
| Acquired cash in reverse acquisition with Clinigence | 12,716,228 | - | ||||||
| Cash related to deconsolidation of Real Estates Entities | (2,421,212 | ) | - | |||||
| Net cash from investing activities | (6,326,710 | ) | (21,714,755 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from lines of credit | 2,592,714 | - | ||||||
| Proceeds from notes payable | 4,865,974 | 13,966,345 | ||||||
| Repayments of lines of credit | (72,055 | ) | (813,101 | ) | ||||
| Repayments of notes payable | (4,338,567 | ) | (13,712,534 | ) | ||||
| Repayments of finance leases | (305,134 | ) | (549,710 | ) | ||||
| Common stock issued for exercise of warrants | 4,119,141 | - | ||||||
| Common stock issued for exercise of options | 644,974 | - | ||||||
| Members' contributions | 4,731,117 | 11,033,400 | ||||||
| Members' distributions | (47,832,176 | ) | (78,446,644 | ) | ||||
| Net cash from financing activities | (35,594,012 | ) | (68,522,244 | ) | ||||
| Net change in cash and cash equivalents | 11,482,337 | 12,517,483 | ||||||
| Cash and cash equivalents - beginning of the period | 36,118,284 | 25,514,275 | ||||||
| Cash and cash equivalents - end of the period | 47,600,621 | 38,031,758 | ||||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 5,705,603 | $ | 2,991,090 | ||||
| Cash paid for income taxes | $ | 631,400 | $ | 316,702 | ||||
| Non-cash investing and financing activities: | ||||||||
| Acquisition of financing leases | $ | 9,937,104 | $ | 452,457 |
and Adjusted EBITDA. EBITDA and Adjusted EBITDA are used as supplemental non-GAAP financial measures 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 these measures allow us to more effectively evaluate our operating performance.
define EBITDA as net income plus net interest expense, depreciation and amortization, and Adjusted EBITDA is further adjusted for
stock-based compensation and any acquisition related costs. A reconciliation of net income to EBITDA and Adjusted EBITDA is included
below. Neither EBITDA nor Adjusted EBITDA is 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 | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Reconciliation of Net income (loss) attributable to Nutex Health Inc. to Adjusted EBITDA: | ||||||||||||||||
| Net income (loss) attributable to Nutex Health Inc. | $ | (19,395,752 | ) | $ | 27,059,401 | $ | 2,134,550 | $ | 64,821,537 | |||||||
| Depreciation and amortization | 3,132,485 | 2,223,461 | 5,529,346 | 4,001,640 | ||||||||||||
| Interest expense, net | 3,849,629 | 1,504,933 | 5,705,603 | 2,991,090 | ||||||||||||
| Income tax expense | 19,653,286 | 481,501 | 19,829,609 | 638,354 | ||||||||||||
| Allocation to noncontrolling interests | (1,825,262 | ) | (1,254,592 | ) | (3,521,488 | ) | (2,703,929 | ) | ||||||||
| EBITDA | 5,414,386 | 30,014,704 | 29,677,620 | 69,748,692 | ||||||||||||
| Stock-based compensation expense | 54,166 | - | 54,166 | - | ||||||||||||
| Acquisition costs | 3,885,666 | - | 3,885,666 | - | ||||||||||||
| Adjusted EBITDA | $ | 9,354,218 | $ | 30,014,704 | $ | 33,617,452 | $ | 69,748,692 |
in Houston, Texas and founded in 2011, Nutex Health Inc. is a physician-led, technology-enabled healthcare services company with approximately
1500 employees nationwide and is partnered with over 800 physicians. The Company has two divisions: a Hospital division and a Population
Health Management division. The Hospital division currently owns and operates 21 facilities in eight different states. The
division implements and operates different innovative health care models, including micro hospitals, specialty hospitals and hospital
outpatient departments (HOPDs). The Population Health Management division owns and operates provider networks such as Independent
Physician Associations (IPAs). Through our Management Services Organizations (MSOs), 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.
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, 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, 2022 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.
ADDITIONAL INFORMATION:
Sanders - Investor Relations
Smith Rodriguez - Media Contact