NUTEX HEALTH ANNOUNCES PRELIMINARY 2023 HEADLINE FINANCIALS AND PROVIDES UPDATE ON THE TIMING OF ITS 10-K FILING
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Insights
The reported increase in total revenue from $219.3 million to $247.6 million indicates a positive trajectory for Nutex Health's earnings, which may be seen as a signal of growth and potential expansion. However, the substantial net loss of $44.2 million, despite being an improvement from the previous year's $424.8 million loss, still raises concerns about the company's profitability and cost management strategies.
Investors should note the large non-cash asset impairment charge of $29.1 million and the additional $1.1 million impairment charge for hospital closures. These charges suggest that certain assets may have been overvalued or that the company's investments have not yielded the expected returns. The reduction in net loss is significant, but the ongoing losses could indicate underlying operational challenges.
The slight increase in Adjusted EBITDA from $12.6 million to $13.6 million might be interpreted as an improved operating efficiency. However, the modest size of this increase, in the context of the overall financials, suggests that there may be limited operational leverage or that the cost savings and efficiency gains are being offset by other factors.
The transition towards a technology-enabled integrated healthcare delivery system and the operation of micro hospitals could be a strategic move by Nutex Health in response to the evolving healthcare landscape, which increasingly favors agility and personalized care. The presence in multiple states and the focus on primary care-centric networks may provide a competitive edge, potentially leading to diversified revenue streams and reduced risk exposure.
However, the reported net cash from operating activities of only $1.8 million, in contrast to the total assets of $398.5 million, raises questions about the liquidity and cash flow management of Nutex Health. It is important for stakeholders to monitor how these figures will evolve and whether they will affect the company's ability to invest in growth opportunities or withstand financial downturns.
Moreover, the use of non-GAAP financial metrics like Adjusted EBITDA requires careful scrutiny. While these metrics can provide insights into operational performance excluding certain expenses, they do not replace GAAP measures and should be considered alongside them for a comprehensive understanding of the company's financial health.
From a market perspective, the preliminary financial results of Nutex Health may influence investor sentiment and stock performance in the short term. The announcement of the anticipated timing for the filing of its 10-K could be perceived as a commitment to transparency, potentially building investor confidence. However, the market will likely react to the final figures and any material differences from the preliminary results.
The healthcare sector is known for its sensitivity to regulatory changes, technological advancements and economic cycles. Nutex Health's performance must be contextualized within these broader industry trends. For instance, the impact of the pandemic on healthcare systems and the shift towards outpatient services may have both direct and indirect effects on the company's financials.
Finally, the stock market often anticipates future performance. Thus, while past losses might be a concern, investors will also consider the company's strategic initiatives and growth prospects. The expansion of micro hospitals and the integration of technology in healthcare delivery could present opportunities for Nutex Health to capitalize on market trends and drive future revenue growth.
The Company is finalizing its FY 2023 10-K and expects to file it with the SEC next week within the extension deadline allowed under the SEC rules.
Preliminary financial information for FY 2023 is as follows:
Financial Highlights for the Year Ended December 31, 2023:
- Total revenue of
$247.6 million $219.3 million - Net loss attributable to Nutex Health Inc. of
$44.2 million $29.1 million $1.1 $424.8 - Adjusted EBITDA of
$13.6 million $12.6 million - Net cash from operating activities of
$1.8 million - As of December 31, 2023, the Company had total assets of
$398.5 million $22.3 million
Financial Highlights for the Three Months Ended December 31, 2023:
- Total revenue of
$69.7 million $53.7 million - Net loss attributable to Nutex Health of
$30.0 million $14.8 million - Adjusted EBITDA of
$5.9 million $5.9 million
Note: These are preliminary financial results for fiscal year 2023 which may change when the Company's final FY 2023 financial information is filed on Form 10-K with the SEC. However, the Company's actual results are not expected to differ materially from those reflected in the preliminary results.
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.
Non-GAAP Financial Measures
Adjusted EBITDA. Adjusted EBITDA is 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 Adjusted EBITDA is useful because it allows 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, certain defined items of expense, 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
Year ended December 31, | |||||||||
2023 | 2022 | 2021 | |||||||
Reconciliation of net income (loss) attributable to Nutex Health Inc. to Adjusted EBITDA: | |||||||||
Net income (loss) attributable to Nutex Health Inc. | $ | (44,206,237) | $ | (424,780,446) | $ | 132,593,328 | |||
Depreciation and amortization | 17,821,872 | 13,131,374 | 7,662,464 | ||||||
Interest expense, net | 16,087,569 | 12,490,260 | 6,196,026 | ||||||
Income tax expense | (5,456,436) | 13,090,905 | 965,731 | ||||||
Allocation to noncontrolling interests | (3,978,392) | (4,837,514) | (5,751,066) | ||||||
EBITDA | (19,731,624) | (390,905,421) | 141,666,483 | ||||||
Facility closing costs | 217,266 | - | - | ||||||
Acquisition costs | 43,464 | 3,885,666 | 3,553,716 | ||||||
Stock-based compensation | 2,835,971 | 189,581 | - | ||||||
Rescission of warrant exercise | - | 1,243,059 | - | ||||||
Impairment of assets | 29,082,203 | - | - | ||||||
Impairment of goodwill | 1,139,297 | 398,135,038 | - | ||||||
Adjusted EBITDA | $ | 13,586,577 | $ | 12,547,923 | $ | 145,220,199 | |||
Three months Ended | Three months Ended | |||||
December 31, 2023 | December 31, 2022 | |||||
Unaudited | Unaudited | |||||
Reconciliation of net income (loss) attributable to Nutex Health Inc. to Adjusted EBITDA: | ||||||
Net loss attributable to Nutex Health Inc. | $ | (30,037,520) | $ | (14,752,177) | ||
Depreciation and amortization | 4,913,024 | 3,271,861 | ||||
Interest expense, net | 4,006,253 | 2,862,071 | ||||
Income tax expense | (3,387,906) | 1,805,176 | ||||
Allocation to noncontrolling interests | (477,519) | (392,290) | ||||
EBITDA | (24,983,668) | (7,205,359) | ||||
Facility closing costs | - | - | ||||
Acquisition costs | - | - | ||||
Stock-based compensation | 637,159 | 54,166 | ||||
Rescission of warrant exercise | - | 1,243,059 | ||||
Impairment of assets | 29,082,203 | - | ||||
Impairment of goodwill | 1,139,297 | - | ||||
Adjusted EBITDA | $ | 5,874,991 | $ | (5,908,134) | ||
About Nutex Health Inc.
Headquartered in
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 20 facilities in 8 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 our Annual Report on Form 10-K for the year ended December 31, 2022 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 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.
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SOURCE Nutex Health, Inc.
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