Full Press Release Details
NUTEX HEALTH reports third quarter and year to date September 30, 2024 financial results
HOUSTON, TX (PRNewswire) - NOVEMBER 7, 2024 - Nutex Health Inc. ("Nutex Health" or the "Company") (NASDAQ: 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:
Financial Highlights for the Nine Months Ended September 30, 2024:
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
| 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 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| 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) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| 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. (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 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.
FOR ADDITIONAL INFORMATION:
Jennifer Smith Rodriguez - Investor Relations