Full Press Release Details
HEALTH reports THIRD quarter 2022 financial results and announces
stock purchase agreement for a commitment to purchase up to $100 million worth of shares of its common stock with
- Net cash from operating activities of $46.1 million for the nine months ended September 30, 2022
- Company reiterates that it expects to open 20 NEW facilities by the end of 2024
TX (PRNewswire) - NOVEMBER 18, 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 3rd Quarter financial
results for the three months ended September 30, 2022 and a common stock purchase agreement for a commitment to purchase up to $100 million
worth of shares of its common stock with Lincoln Park Capital Fund, LLC ("Lincoln Park"), a Chicago-based institutional investor.
Investment Agreement with Lincoln Park Capital:
November 14, 2022, Nutex Health and Lincoln Park Capital Fund, LLC entered into a purchase agreement and registration rights agreement
(together, the "Agreement") pursuant to which Nutex Health will have the right, in its sole discretion, but not the obligation,
to sell to Lincoln Park up to $100 million worth of shares of its common stock over the 36-month term of the Agreement, subject to terms
and conditions as provided in the Agreement, including the filing and effectiveness of a registration statement. Nutex Health controls
the timing and amount of any future sales of its shares of common stock and Lincoln Park is obligated to make purchases in accordance
with the Agreement, subject to various limitations including those under the Nasdaq listing rules. Any common stock sold by Nutex Health
to Lincoln Park can be sold pursuant to Regular Purchases and Accelerated Purchases, as defined in the Agreement, at purchase prices
based on prevailing market prices at the time of each sale and at 97% of the market price on the date of sale under Accelerated Purchases.
There is no upper limit to the price per share that Lincoln Park may pay for future stock issuances under the Agreement, and Lincoln
Park has agreed not to cause or engage in any direct or indirect short selling or hedging of Nutex Health's common stock. No warrants
are being issued in this transaction and the Agreement does not contain any rights of first refusal, participation rights, penalties,
or liquidated damages provisions in favor of any party. Nutex Health may terminate the Agreement at any time, at its sole discretion,
without any cost or penalty. In connection with the Agreement, Nutex has agreed to file a registration statement with the U.S. Securities
and Exchange Commission registering the resale of the shares issued to Lincoln Park. Nutex Health intends to use the net proceeds from
the sale of its common stock under the Agreement for working capital and general corporate purposes to support its growth.
Highlights for the Three Months Ended September 30, 2022 (Unaudited):
Highlights for the Nine Months Ended September 30, 2022 (Unaudited):
Adjusted EBITDA is a non-GAAP financial metric. A reconciliation of non-GAAP to GAAP measures is included below in this earnings release.
to the Financial Highlights for the Three and Nine Months Ended September 30, 2022:
results in the 3rd quarter were affected by a significant non-cash goodwill impairment charge as well as challenging operating
dynamics that include lower net revenue per patient visit and lower patient volumes due to fewer Covid-related visits," stated
Jon Bates, Chief Financial Officer of Nutex Health.
have many initiatives underway intended to increase net revenue per patient and to increase patient volumes," stated Tom Vo, M.D.,
MBA, Chairman and Chief Executive Officer of Nutex Health. "These include:
are also accelerating contracting with local physicians to join our IPAs and increasing our marketing efforts to increase patient volumes."
the same time, we are intensely focused on executing on our long-term growth strategy. We are thrilled to announce the agreement with
Lincoln Park Capital. The committed investment agreement for up to $100 million will provide us with the flexibility to address future
growth opportunities," stated Warren Hosseinion, M.D., President of Nutex Health.
more details on the Company's Third 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
| September 30, 2022 | December 31, 2021 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 36,620,799 | $ | 36,118,284 | ||
| Accounts receivable | 61,478,424 | 112,766,317 | ||||
| Accounts receivable - related parties | 1,847,016 | 1,993,117 | ||||
| Inventories | 3,213,376 | 2,814,178 | ||||
| Prepaid expenses and other current assets | 4,378,923 | 323,283 | ||||
| Total current assets | 107,538,538 | 154,015,179 | ||||
| Property and equipment, net | 72,282,118 | 151,912,500 | ||||
| Operating right-of-use assets | 20,904,971 | 21,829,552 | ||||
| Financing right-of-use assets | 194,757,864 | 64,614,781 | ||||
| Intangible assets, net | 21,577,810 | 682,649 | ||||
| Goodwill, net | 17,010,637 | 1,139,297 | ||||
| Other assets | 445,789 | 456,085 | ||||
| Total assets | $ | 434,517,727 | $ | 394,650,043 | ||
| Liabilities and Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 17,743,457 | $ | 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 | 4,026,942 | 10,158,932 | ||||
| Operating lease liabilities, current portion | 1,485,360 | 1,489,997 | ||||
| Financing lease liabilities, current portion | 4,107,853 | 1,452,447 | ||||
| Accrued expenses and other current liabilities | 10,257,349 | 6,864,426 | ||||
| Total current liabilities | 43,828,001 | 37,690,959 | ||||
| Long-term debt, net | 24,690,473 | 78,821,985 | ||||
| Operating lease liabilities, net | 20,049,121 | 20,820,588 | ||||
| Financing lease liabilities, net | 204,591,022 | 65,735,501 | ||||
| Deferred tax liabilities | 8,831,108 | - | ||||
| Total liabilities | 301,989,725 | 203,069,033 | ||||
| Commitments and contingencies | ||||||
| Equity: | ||||||
| Common stock, $0.001 par value; 900,000,000 shares authorized; 649,770,069 and 592,791,712 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 649,770 | 592,792 | ||||
| Additional paid-in capital | 468,802,618 | 11,742,891 | ||||
| Retained earnings (accumulated deficit) | (358,967,267) | 102,315,623 | ||||
| Nutex Health Inc. equity | 110,485,121 | 114,651,306 | ||||
| Noncontrolling interests | 22,042,881 | 76,929,704 | ||||
| Total equity | 132,528,002 | 191,581,010 | ||||
| Total liabilities and equity | $ | 434,517,727 | $ | 394,650,043 |
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three months ended September 30 | Nine months ended September 30 | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Revenue: | ||||||||||||
| Hospital division | $ | 21,244,305 | $ | 117,971,732 | $ | 151,976,226 | $ | 268,129,646 | ||||
| Population health management division | 7,150,753 | - | 13,594,007 | - | ||||||||
| Total revenue | 28,395,058 | 117,971,732 | 165,570,233 | 268,129,646 | ||||||||
| Operating costs and expenses: | ||||||||||||
| Payroll | 27,923,404 | 23,118,034 | 76,426,084 | 59,144,729 | ||||||||
| Contract services | 8,873,901 | 2,460,082 | 27,757,845 | 11,496,358 | ||||||||
| Medical supplies | 2,486,083 | 4,942,959 | 9,327,114 | 9,915,621 | ||||||||
| Insurance expense | 3,506,667 | 3,053,678 | 7,434,346 | 6,672,983 | ||||||||
| Depreciation and amortization | 4,330,167 | 1,871,799 | 9,859,513 | 5,873,439 | ||||||||
| Other | 7,743,282 | 6,516,712 | 21,843,273 | 15,230,873 | ||||||||
| Total operating costs and expenses | 54,863,504 | 41,963,264 | 152,648,175 | 108,334,003 | ||||||||
| Gross profit (loss) | (26,468,446) | 76,008,468 | 12,922,058 | 159,795,643 | ||||||||
| Corporate and other costs: | ||||||||||||
| Acquisition costs | - | - | 3,885,666 | - | ||||||||
| Impairment of goodwill | 408,466,575 | - | 408,466,575 | - | ||||||||
| General and administrative expenses | 4,077,255 | 1,545,685 | 11,721,597 | 5,067,725 | ||||||||
| Total corporate and other costs | 412,543,830 | 1,545,685 | 424,073,838 | 5,067,725 | ||||||||
| Operating income (loss) | (439,012,276) | 74,462,783 | (411,151,780) | 154,727,918 | ||||||||
| Interest expense, net | 3,402,606 | 1,260,187 | 9,628,189 | 4,251,277 | ||||||||
| Other expense (income) | (630,450) | (1,745,277) | 346,873 | (5,666,633) | ||||||||
| Income (loss) before taxes | (441,784,432) | 74,947,873 | (421,126,842) | 156,143,274 | ||||||||
| Income tax expense (benefit) | (8,543,880) | 453,621 | 11,285,729 | 1,091,975 | ||||||||
| Net income (loss) | (433,240,552) | 74,494,252 | (432,412,571) | 155,051,299 | ||||||||
| Less: net income (loss) attributable to noncontrolling interests | (10,722,749) | 20,700,975 | (12,052,765) | 36,436,485 | ||||||||
| Net income (loss) attributable to Nutex Health Inc. | $ | (422,517,803) | $ | 53,793,277 | $ | (420,359,806) | $ | 118,614,814 | ||||
| Earnings (loss) per common share | ||||||||||||
| Basic | $ | (0.65) | $ | 0.09 | $ | (0.67) | $ | 0.20 | ||||
| Diluted | $ | (0.65) | $ | 0.09 | $ | (0.67) | $ | 0.20 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine months ended September 30 | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (432,412,571 | ) | $ | 155,051,299 | |||
| Adjustment to reconcile net income (loss) to net cash from operating activities: | ||||||||
| Depreciation and amortization | 9,859,513 | 5,873,439 | ||||||
| Impairment of goodwill | 408,466,575 | - | ||||||
| Stock-based compensation expense | 135,415 | - | ||||||
| Other income - gain on PPP loan forgiveness | - | (5,200,835 | ) | |||||
| Deferred tax expense | 3,375,106 | - | ||||||
| Debt accretion expense | 1,719,572 | - | ||||||
| Non-cash lease expense | 18,775 | (72,193 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 52,921,095 | (35,601,637 | ) | |||||
| Accounts receivable - related party | 1,846,887 | (150 | ) | |||||
| Inventories | (399,198 | ) | (4,880 | ) | ||||
| Prepaid expenses and other current assets | (5,629,042 | ) | (415,003 | ) | ||||
| Accounts payable | 4,147,170 | 6,040,929 | ||||||
| Accounts payable - related party | (630,490 | ) | (299,489 | ) | ||||
| Accrued expenses and other current liabilities | 2,712,011 | 1,673,501 | ||||||
| Other current assets | (29,704 | ) | (36,643 | ) | ||||
| Net cash from operating activities | 46,101,114 | 127,008,338 | ||||||
| Cash flows from investing activities: | ||||||||
| Acquisitions of property and equipment | (22,512,464 | ) | (25,206,117 | ) | ||||
| 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 | (12,217,448 | ) | (25,206,117 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from lines of credit | 2,592,714 | 320,430 | ||||||
| Proceeds from notes payable | 10,126,130 | 14,970,896 | ||||||
| Repayments of lines of credit | (72,055 | ) | (863,196 | ) | ||||
| Repayments of notes payable | (4,720,737 | ) | (17,488,009 | ) | ||||
| Repayments of finance leases | (923,321 | ) | (856,422 | ) | ||||
| Common stock issued for exercise of warrants | 4,119,141 | - | ||||||
| Common stock issued for exercise of options | 644,974 | - | ||||||
| Members' contributions | 4,825,377 | 12,521,879 | ||||||
| Members' distributions | (49,973,374 | ) | (101,683,740 | ) | ||||
| Net cash from financing activities | (33,381,151 | ) | (93,078,162 | ) | ||||
| Net change in cash and cash equivalents | 502,515 | 8,724,059 | ||||||
| Cash and cash equivalents - beginning of the period | 36,118,284 | 25,514,275 | ||||||
| Cash and cash equivalents - end of the period | $ | 36,620,799 | $ | 34,238,334 |
disclosures of cash flow information
| Nine months ended September 30 | ||||||||
| 2022 | 2021 | |||||||
| Cash paid for interest | $ | 3,402,606 | $ | 9,628,189 | ||||
| Cash paid for income taxes | $ | 7,595,105 | $ | 336,697 | ||||
| Non-cash investing and financing activities: | ||||||||
| Acquisition of financing leases | $ | 23,603,817 | $ | 14,445,400 |
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.
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, 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 September 30 | Nine months ended September 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. | $ | (422,517,803 | ) | $ | 53,793,277 | $ | (420,359,806 | ) | $ | 118,614,814 | ||||||
| Depreciation and amortization | 4,330,167 | 1,871,799 | 9,859,513 | 5,873,439 | ||||||||||||
| Interest expense, net | 3,402,606 | 1,260,187 | 9,628,189 | 4,251,277 | ||||||||||||
| Income tax expense (benefit) | (8,543,880 | ) | 453,621 | 11,285,729 | 1,091,975 | |||||||||||
| Allocation to noncontrolling interests | (922,792 | ) | (1,658,061 | ) | (4,445,224 | ) | (4,361,990 | ) | ||||||||
| EBITDA | (424,251,702 | ) | 55,720,823 | (394,031,599 | ) | 125,469,515 | ||||||||||
| Stock-based compensation expense | 81,249 | - | 135,415 | - | ||||||||||||
| Impairment of goodwill | 408,466,575 | - | 408,466,575 | - | ||||||||||||
| Acquisition costs | - | - | 3,885,666 | - | ||||||||||||
| Adjusted EBITDA | $ | (15,703,878 | ) | $ | 55,720,823 | $ | 18,456,057 | $ | 125,469,515 |
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.
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 8 states.
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.
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 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