NUTEX HEALTH REPORTS SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2024 FINANCIAL RESULTS

Rhea-AI Summary

Nutex Health (NASDAQ: NUTX) reported strong financial results for Q2 and H1 2024. Total revenue increased 29% to $76.1 million in Q2 and 25% to $143.5 million in H1 compared to 2023. The Hospital Division saw a 28% increase in visits to 41,208 in Q2. Adjusted EBITDA grew 200% to $12.0 million in Q2 and 159% to $16.6 million in H1. Net loss narrowed to $0.4 million in Q2 from $3.5 million in Q2 2023. The company generated $16.3 million in operating cash flow for H1 2024. Nutex Health operates 21 micro hospitals and HOPDs across 9 states, focusing on increasing cash flow and profitability while driving sustainable growth.

Positive

• Total revenue increased 29% to $76.1 million in Q2 2024
• Hospital Division visits grew 28% to 41,208 in Q2 2024
• Adjusted EBITDA increased 200% to $12.0 million in Q2 2024
• Operating cash flow of $16.3 million generated in H1 2024
• Hospital Division operating income grew 140% to $33.3 million in H1 2024

Negative

• Net loss of $0.4 million in Q2 2024, though improved from $3.5 million loss in Q2 2023
• Non-cash impairment of assets of $3.5 million in Q2 2024
• Non-cash impairment of goodwill of $3.2 million in Q2 2024

Financial Analyst

Nutex Health's Q2 2024 results show strong growth and improved profitability. Key highlights include:

• Total revenue up 29% year-over-year to $76.1 million
• Adjusted EBITDA increased 200% to $12.0 million
• Hospital division operating income up 150% to $22.8 million
• Total visits increased 28% to 41,208

The company's focus on increasing cash flow is evident, with $16.3 million in net cash from operating activities for H1 2024. The balance sheet shows $40.8 million in cash and cash equivalents, providing a solid financial foundation. However, investors should note the $22.4 million in long-term debt.

While revenue growth is impressive, the company still reported a small net loss of $0.4 million. This includes non-cash impairments, which may warrant further investigation. Overall, the financials suggest Nutex Health is on a positive trajectory, but sustained profitability will be key to watch in future quarters.

Healthcare Industry Analyst

Nutex Health's performance reflects broader trends in the healthcare sector. The 25% increase in hospital division visits indicates strong patient demand, likely driven by post-pandemic recovery and the company's expansion strategy. The mature hospitals' 10.3% visit growth is particularly noteworthy, suggesting improved operational efficiency and market penetration.

The company's micro-hospital and HOPD model appears to be gaining traction, offering a potential alternative to traditional hospital settings. This aligns with the industry shift towards more accessible, cost-effective care options. However, the healthcare landscape remains competitive and subject to regulatory changes, which could impact future growth.

The population health management division, while smaller, shows steady growth and could become increasingly important as value-based care models gain prominence. Investors should monitor how Nutex leverages its technology platform to integrate clinical and claims data, as this could be a key differentiator in the evolving healthcare ecosystem.

Market Research Analyst

Nutex Health's Q2 results reveal several market trends worth noting. The 29% revenue growth outpaces the overall healthcare sector, indicating market share gains. The company's focus on micro-hospitals and HOPDs taps into the growing consumer preference for convenient, local healthcare options.

The increase in average payment by insurers is a positive sign, potentially reflecting improved negotiating power or a shift in payer mix. The ongoing resolution of NSA claims through the Independent Dispute Resolution process bears watching, as it could impact future revenue stability.

Investor sentiment may be cautiously optimistic, given the strong revenue growth and improved EBITDA. However, the continued net losses and non-cash impairments could raise concerns. The stock's performance will likely depend on Nutex's ability to translate top-line growth into consistent profitability and positive cash flow.

The company's expansion across nine states suggests a scalable model, but investors should monitor integration costs and regional performance variations. Overall, Nutex Health appears well-positioned in the evolving healthcare market, but execution will be key to long-term success.

• TOTAL REVENUE OF $143.5 MILLION FOR THE FIRST HALF 2024 VS $115.3 MILLION FOR THE FIRST HALF 2023, AN INCREASE OF 25%
• HOSPITAL DIVISION VISITS OF 81,276 FOR THE FIRST HALF 2024 VS VISITS OF 65,244 FOR THE FIRST HALF 2023, AN INCREASE OF 25%
• HOSPITAL DIVISION OPERATING INCOME OF $33.3 MILLION FOR THE FIRST HALF 2024 VS $13.9 MILLION FOR THE FIRST HALF 2023, AN INCREASE OF 140%
• NET CASH FROM OPERATING ACTIVITIES OF $16.3 MILLION FOR THE FIRST HALF 2024
• COMPANY CONTINUES ITS FOCUS ON INCREASING CASH FLOW

HOUSTON, Aug. 8, 2024 /PRNewswire/ -- Nutex Health Inc. ("Nutex Health" or the "Company") (NASDAQ: NUTX), a physician-led, integrated healthcare delivery system comprised of 21 state-of-the-art micro hospitals and hospital outpatient departments (HOPDs) in nine states and primary care-centric, risk-bearing physician networks, today announced second quarter 2024 financial results for the three and six months ended June 30, 2024.

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

• Total revenue of $76.1 million as compared to total revenue of $58.9 million for the three months ended June 30, 2023, an increase of 29%. Of this revenue growth, mature hospitals, which are hospitals opened prior to December 31, 2021, increased by 13.2% in 2024 compared to the same period in 2023.
• Net loss attributable to Nutex Health Inc. of $0.4 million as compared to net loss attributable to Nutex Health Inc. of $3.5 million for the three months ended June 30, 2023. This includes non-cash impairment of assets of $3.5 million, non-cash impairment of goodwill of $3.2 million and $3.1 million non-cash gain on warrant liability.
• EBITDA, attributable to Nutex Health Inc. of $8.5 million as compared to EBITDA, attributable to Nutex Health Inc. of $3.7 million for the three months ended June 30, 2023.
• Adjusted EBITDA, attributable to Nutex Health Inc. of $12.0 million as compared to Adjusted EBITDA, attributable to Nutex Health Inc. of $4.0 million for the three months ended June 30, 2023, an increase of 200%.
• Total visits from the Hospital Division were 41,208 for the second quarter 2024 as compared to 32,183 for the second quarter 2023, an increase of 9,025 or 28.0%. Of this visit growth, mature hospitals increased by 10.3% in 2024 compared to the same period in 2023.

Financial Highlights for the Six Months Ended June 30, 2024:

• Total revenue of $143.5 million as compared to total revenue of $115.3 million for the six months ended June 30, 2023, an increase of approximately 25%. Of this revenue growth, mature hospitals, which are hospitals opened prior to December 31, 2021, increased by 10.0% in 2024 compared to 2023.
• Net loss attributable to Nutex Health Inc. of $0.7 million as compared to net loss attributable to Nutex Health Inc. of $8.6 million for the six months ended June 30, 2023. This includes non-cash impairment of assets of $3.5 million, non-cash impairment of goodwill of $3.2 million and $5.7 million non-cash gain on warrant liability in the first six months of 2024.
• EBITDA, attributable to Nutex Health Inc. of $15.6 million as compared to EBITDA, attributable to Nutex Health Inc. of $4.1 million for the six months ended June 30, 2023.
• Adjusted EBITDA, attributable to Nutex Health Inc. of $16.6 million as compared to Adjusted EBITDA, attributable to Nutex Health Inc. of $6.4 million for the six months ended June 30, 2023, an increase of 159%.
• Total visits from the Hospital Division were 81,276 for the six months ended June 30, 2024 as compared to 65,244 for the same period in 2023, an increase of 16,032 or 24.6%. Of this visit growth, mature hospitals increased by 9.7% in the six months ended June 30, 2024 compared to the same period in 2023.
• Net cash from operating activities of $16.3 million. As of June 30, 2024, the Company had total assets of $422.4 million, including cash and cash equivalents of $40.8 million and long-term debt of $22.4 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 29% revenue growth, Adjusted EBITDA, attributable to Nutex Health Inc. of $12.0 million and a 150% increase in hospital division operating income to $22.8 million in the second quarter ended June 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 is executing extremely well, and we plan to continue to advance our strategic initiatives to drive sustainable growth. We delivered solid revenue growth while accelerating cash flow and strengthening our balance sheet in the first half of 2024. We are confident that we are taking the right steps to lay the foundation for long-term success and to increasing shareholder value," stated Warren Hosseinion, M.D., President of Nutex Health.

"We had a solid Second Quarter with strong year over year growth. Volume continues to increase overall among our hospitals. Our average payment by insurers of patient claims increased, a trend we are optimistic will persist as we continue to work the NSA 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 Second 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)
		June 30, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents		$	40,807,975		$	22,002,056
Accounts receivable			60,658,832			58,624,301
Accounts receivable - related parties			4,577,189			4,152,068
Inventories			2,759,448			3,390,584
Prepaid expenses and other current assets			5,066,994			2,679,394
Total current assets			113,870,438			90,848,403
Property and equipment, net			78,881,900			81,387,649
Operating right-of-use assets			11,690,957			11,853,082
Finance right-of-use assets			187,096,271			176,146,329
Intangible assets, net			16,180,504			20,512,636
Goodwill, net			13,918,719			17,066,263
Other assets			764,462			431,135
Total assets		$	422,403,251		$	398,245,497
Liabilities and Equity
Current liabilities:
Accounts payable		$	16,742,370		$	18,899,196
Accounts payable - related parties			6,796,475			6,382,197
Lines of credit			2,909,296			3,371,676
Current portion of long-term debt			14,223,944			10,808,721
Operating lease liabilities, current portion			1,998,512			1,579,987
Finance lease liabilities, current portion			5,570,604			4,315,979
Accrued expenses and other current liabilities			23,417,191			12,955,296
Total current liabilities			71,658,392			58,313,052
Long-term debt, net			22,406,516			26,314,733
Warrant liability			2,000,714			-
Operating lease liabilities, net			14,690,566			15,479,639
Finance lease liabilities, net			226,820,535			213,886,213
Deferred tax liabilities			2,804,492			5,145,754
Total liabilities			340,381,215			319,139,391
Commitments and contingencies
Equity:
Common stock, $0.001 par value; 950,000,000 shares authorized; 4,987,268 and 4,511,199 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively			4,988			4,511
Additional paid-in capital			472,529,641			470,521,218
Accumulated deficit			(409,800,662)			(409,072,539)
Nutex Health Inc. equity			62,733,967			61,453,190
Noncontrolling interests			19,288,069			17,652,916
Total equity			82,022,036			79,106,106
Total liabilities and equity		$	422,403,251		$	398,245,497

 

NUTEX HEALTH INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Revenue:
Hospital division		$	67,604,878		$	51,611,803		$	127,634,247		$	100,899,967
Population health management division			8,477,383			7,312,651			15,901,801			14,353,904
Total revenue			76,082,261			58,924,454			143,536,048			115,253,871
Operating costs and expenses:
Payroll and benefits			28,398,075			24,860,702			55,401,219			50,697,375
Contract services			9,505,222			9,747,873			20,824,676			18,937,204
Medical supplies			3,588,464			3,264,202			8,910,306			7,288,084
Depreciation and amortization			4,532,804			4,169,160			8,719,006			8,162,907
Other			7,496,465			7,235,594			16,962,432			15,673,655
Total operating costs and expenses			53,521,030			49,277,531			110,817,639			100,759,225
Gross profit			22,561,231			9,646,923			32,718,409			14,494,646
Corporate and other costs:
Facilities closing costs			-			-			-			217,266
Stock-based compensation expense			(61,241)			249,645			(12,074)			2,149,645
Impairment of assets			3,473,635			-			3,473,635			-
Impairment of goodwill			3,197,391			-			3,197,391			-
General and administrative expenses			10,652,390			9,759,816			19,310,800			16,935,360
Total corporate and other costs			17,262,175			10,009,461			25,969,752			19,302,271
Operating income (loss)			5,299,056			(362,538)			6,748,657			(4,807,625)
Interest expense, net			5,054,532			4,843,048			9,498,894			7,983,137
Gain on warrant liability			(3,060,096)			-			(5,660,843)			-
Other (income) expense			(599,502)			(123,528)			(840,694)			123,927
Income (loss) before taxes			3,904,122			(5,082,058)			3,751,300			(12,914,689)
Income tax expense (benefit)			893,892			(815,612)			1,283,557			(1,726,271)
Net income (loss)			3,010,230			(4,266,446)			2,467,743			(11,188,418)
Less: net income (loss) attributable to noncontrolling interests			3,374,278			(787,399)			3,195,866			(2,562,092)
Net loss attributable to Nutex Health Inc.		$	(364,048)		$	(3,479,047)		$	(728,123)		$	(8,626,326)
Loss per common share:
Basic		$	(0.07)		$	(0.79)		$	(0.15)		$	(1.98)
Diluted		$	(0.07)		$	(0.79)		$	(0.15)		$	(1.98)

 

NUTEX HEALTH INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Six Months Ended June 30,
		2024			2023
Cash flows from operating activities:
Net income (loss)		$	2,467,743		$	(11,188,418)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization			8,719,006			8,162,907
Gain on warrant liability			(5,660,843)			-
Impairment of goodwill			3,197,391			-
Impairment of assets			3,473,635			-
Derecognition of goodwill			453,017			-
Stock-based compensation expense			(12,074)			2,149,645
Deferred tax benefit			(2,341,262)			(1,724,111)
Debt accretion expense			579,121			953,236
Loss on lease termination			-			58,211
Non-cash lease expense (income)			(208,423)			61,734
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable			(2,148,508)			6,921,239
Accounts receivable - related party			(425,121)			(797,058)
Inventories			631,136			1,082,509
Prepaid expenses and other current assets			(1,692,907)			(3,048,993)
Accounts payable			(1,617,151)			(7,189,929)
Accounts payable - related party			414,278			3,453
Accrued expenses and other current liabilities			10,481,831			5,619,907
Net cash from operating activities			16,310,869			1,064,332
Cash flows from investing activities:
Acquisitions of property and equipment			(1,291,492)			(7,446,902)
Cash related to sale of business			(711,306)			-
Cash related to deconsolidation of Real Estate Entities			-			(1,039,157)
Net cash from investing activities			(2,002,798)			(8,486,059)
Cash flows from financing activities:
Proceeds from lines of credit			132,167			1,949,919
Proceeds from notes payable			4,915,000			16,952,905
Repayments of lines of credit			(594,547)			(1,592,714)
Repayments of notes payable			(6,156,543)			(7,481,893)
Repayments of finance leases			(1,440,016)			(1,870,670)
Proceeds from common stock issuance, net issuance costs			9,202,500			-
Members' contributions			300,850			649,550
Members' distributions			(1,861,563)			(2,686,304)
Net cash from financing activities			4,497,848			5,920,793
Net change in cash and cash equivalents			18,805,919			(1,500,934)
Cash and cash equivalents - beginning of the period			22,002,056			34,255,264
Cash and cash equivalents - end of the period		$	40,807,975		$	32,754,330

 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 June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Reconciliation of net loss attributable to Nutex Health Inc. to Adjusted EBITDA:
Net loss attributable to Nutex Health Inc.		$	(364,048)		$	(3,479,047)		$	(728,123)		$	(8,626,326)
Depreciation and amortization			4,532,804			4,169,160			8,719,006			8,162,907
Interest expense, net			5,054,532			4,843,048			9,498,894			7,983,137
Income tax expense (benefit)			893,892			(815,612)			1,283,557			(1,726,271)
Allocation to noncontrolling interests			(1,627,829)			(972,655)			(3,172,002)			(1,727,965)
EBITDA attributable to Nutex Health Inc.			8,489,351			3,744,894			15,601,332			4,065,482
Facilities closing costs			-			-			-			217,266
Gain on warrant liability			(3,060,096)			-			(5,660,843)			-
Impairment of assets			3,473,635						3,473,635
Impairment of goodwill			3,197,391			-			3,197,391			-
Stock-based compensation expense			(61,241)			249,645			(12,074)			2,149,645
Adjusted EBITDA attributable to Nutex Health Inc.		$	12,039,040		$	3,994,539		$	16,599,441		$	6,432,393

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 21 facilities in nine 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 the Annual Report on Form 10-K for the year ended December 31, 2023 and in the Quarterly Report on Form 10-Q for the period  ended March 31, 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.

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SOURCE Nutex Health, Inc.

FAQ

What was Nutex Health's (NUTX) revenue growth in Q2 2024?

Nutex Health's total revenue grew 29% to $76.1 million in Q2 2024 compared to Q2 2023.

How much did Nutex Health's (NUTX) Hospital Division visits increase in Q2 2024?

Nutex Health's Hospital Division visits increased by 28% to 41,208 in Q2 2024 compared to Q2 2023.

What was Nutex Health's (NUTX) Adjusted EBITDA for Q2 2024?

Nutex Health's Adjusted EBITDA was $12.0 million in Q2 2024, a 200% increase from Q2 2023.

How much operating cash flow did Nutex Health (NUTX) generate in H1 2024?

Nutex Health generated $16.3 million in operating cash flow for the first half of 2024.