- NET REVENUE OF $56.3
MILLION
- NET CASH FROM OPERATING ACTIVITIES OF $1.1 MILLION
- COMPANY EXPECTS TO OPEN 4-5 MORE HOSPITALS IN 2023 AND
ANOTHER 14 BY END OF 2025
HOUSTON, May 15, 2023
/PRNewswire/ -- Nutex Health Inc. ("Nutex Health" or the "Company")
(NASDAQ: NUTX), a physician-led, technology-enabled integrated
healthcare delivery system comprised of 19 state-of-the-art micro
hospitals in 8 states and primary care-centric, risk-bearing
physician networks, today announced first quarter 2023 financial
results for the three months ended March 31,
2023.
Financial Highlights for the Three Months Ended March 31, 2023:
- Net revenue of $56.3
million.
- Net loss attributable to Nutex Health of $5.1 million.
- Net cash from operating activities of $1.1 million.
- Adjusted EBITDA of $2.4
million.
- As of March 31, 2023, the Company
had total assets of $430.1 million,
including cash and cash equivalents of $32.8
million, not including $12.6
million, net of expenses, advanced to the Company from an
affiliate of Yorkville Advisors Global on April 11, 2023.
Note: Adjusted EBITDA is a non-GAAP financial metric. A
reconciliation of non-GAAP to GAAP measures is included below in
this earnings release.
Year-to-Date 2023 Highlights:
- On February 6, 2023, Nutex Health
opened its second micro hospital in Arkansas. The facility is already performing
above expectations.
- Nutex Health expects to open 4-5 more micro hospitals in 2023
and another 14 by end of-2025.
- The Company's three new independent practice associations
("IPAs") are signing up primary care physicians ("PCPs") and
specialists, as well as signing contracts with national and
regional managed care organizations. As of today, South Florida
Physicians IPA has signed contracts with 78 primary care
physicians, Houston Physicians IPA has signed contracts with over
60 primary care physicians and our newest IPA, Phoenix Physicians
IPA, has signed up 12 primary care physicians. The Company
anticipates starting 2-3 new IPAs per year in the vicinity of its
micro hospitals.
- On March 17, 2023, the Centers
for Medicare & Medicaid Services ("CMS") issued new guidelines
related to the independent dispute resolution process of the No
Surprises Act. Nutex Health believes that these new guidelines will
result in higher reimbursements. Any future higher reimbursements
are not reflected in our First Quarter financial results due to the
timing of the new CMS guidelines.
- On April 11, 2023 the Company
entered into a $100 million pre-paid
advance agreement with an affiliate of Yorkville Advisors Global.
The Company has so far received approximately $12.6 million, net of expenses, in cash from
Yorkville and will evaluate whether to receive and the timing of
receipt of additional cash proceeds. The $12.6 million cash proceeds are not reflected on
our First Quarter balance sheet.
- The Company has a committed investment agreement for up to
$100 million with Lincoln Park
Capital, none of which has been used.
- On May 3, 2023, Nutex Health
opened its first-ever urgent care center in Alhambra, California, near the 25,000 patients
enrolled in its IPA. The Company purchased a two-story building in
late 2022 and remodeled it to include the urgent care center, the
new administrative offices of its IPA as well as a primary care
clinic.
- In the first quarter, as part of our Board of Director's
portfolio rationalization initiative, Nutex Health closed down two
hospital outpatient departments and one micro hospital which were
unprofitable. All three facilities were in Texas.
"Our balance sheet remains strong with $32.8 million of cash on hand and significant
capital available to handle the development of 4-5 micro hospitals
we plan to open this year in addition to other Population Health
opportunities. To help prepare for this growth, in the first
quarter of 2023 we transitioned to a more robust back-office
financial reporting system that will provide us more timely and
accurate financial data to better manage our business," stated
Jon Bates, Chief Financial Officer
of Nutex Health.
"Our goal for this year will be to increase patient volume as
well as create new service lines to complement our ER services.
Coming off our very first annual leadership conference earlier this
month, the entire national leadership team is invigorated and
energized to execute all of the new initiatives to maximize
shareholder value," stated Tom Vo,
M.D., MBA, Chairman and Chief Executive Officer of Nutex
Health.
"Despite challenging market conditions, we intend to execute on
our growth strategy and believe we have significant opportunities
ahead of us. We have a strong balance sheet and access to up to
$85 million from Yorkville Advisors
and up to another $100 million with
Lincoln Park Capital," stated Warren
Hosseinion, M.D., President of Nutex Health.
For more details on the Company's First Quarter 2023 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)
|
|
|
|
|
|
|
|
|
|
March 31, 2023
|
|
December 31, 2022
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
32,836,535
|
|
$
|
34,255,264
|
Accounts
receivable
|
|
|
50,977,291
|
|
|
57,777,386
|
Accounts receivable -
related parties
|
|
|
538,283
|
|
|
538,183
|
Inventories
|
|
|
3,485,445
|
|
|
3,533,285
|
Prepaid expenses and
other current assets
|
|
|
829,553
|
|
|
1,869,806
|
Total current
assets
|
|
|
88,667,107
|
|
|
97,973,924
|
Property and equipment,
net
|
|
|
77,116,496
|
|
|
82,094,352
|
Operating right-of-use
assets
|
|
|
17,454,733
|
|
|
20,466,632
|
Finance right-of-use
assets
|
|
|
208,619,460
|
|
|
192,591,624
|
Intangible assets,
net
|
|
|
20,804,971
|
|
|
21,191,390
|
Goodwill,
net
|
|
|
17,010,637
|
|
|
17,010,637
|
Other assets
|
|
|
422,926
|
|
|
423,426
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
430,096,330
|
|
$
|
431,751,985
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
15,048,720
|
|
$
|
23,614,387
|
Accounts payable -
related parties
|
|
|
3,925,297
|
|
|
3,915,661
|
Lines of
credit
|
|
|
2,672,893
|
|
|
2,623,479
|
Current portion of
long-term debt
|
|
|
10,456,134
|
|
|
12,546,097
|
Operating lease
liabilities, current portion
|
|
|
1,495,409
|
|
|
1,703,014
|
Finance lease
liabilities, current portion
|
|
|
4,118,170
|
|
|
4,219,518
|
Accrued expenses and
other current liabilities
|
|
|
10,162,166
|
|
|
6,240,813
|
Total current
liabilities
|
|
|
47,878,789
|
|
|
54,862,969
|
Long-term debt,
net
|
|
|
25,108,364
|
|
|
23,051,152
|
Operating lease
liabilities, net
|
|
|
16,634,948
|
|
|
19,438,497
|
Finance lease
liabilities, net
|
|
|
221,394,523
|
|
|
203,619,756
|
Deferred tax
liabilities
|
|
|
9,541,552
|
|
|
10,452,211
|
Total
liabilities
|
|
|
320,558,176
|
|
|
311,424,585
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common stock, $0.001
par value; 900,000,000 shares authorized; 651,926,125 and
650,223,840 shares issued and outstanding as of March 31, 2023 and
December 31, 2022,
respectively
|
|
|
651,926
|
|
|
650,224
|
Additional paid-in
capital
|
|
|
460,396,700
|
|
|
458,498,402
|
Accumulated
deficit
|
|
|
(368,433,204)
|
|
|
(363,285,925)
|
Nutex Health Inc.
equity
|
|
|
92,615,422
|
|
|
95,862,701
|
Noncontrolling
interests
|
|
|
16,922,732
|
|
|
24,464,699
|
Total equity
|
|
|
109,538,154
|
|
|
120,327,400
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
430,096,330
|
|
$
|
431,751,985
|
NUTEX HEALTH
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
Hospital
division
|
|
$
|
49,288,164
|
|
$
|
79,127,242
|
Population health
management division
|
|
|
7,041,253
|
|
|
-
|
Total
revenue
|
|
|
56,329,417
|
|
|
79,127,242
|
|
|
|
|
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
Payroll and
benefits
|
|
|
25,836,673
|
|
|
25,610,217
|
Contract
services
|
|
|
9,189,331
|
|
|
4,918,632
|
Medical
supplies
|
|
|
4,023,882
|
|
|
4,259,479
|
Depreciation and
amortization
|
|
|
3,993,747
|
|
|
2,396,861
|
Other
|
|
|
8,438,061
|
|
|
6,126,557
|
Total operating costs
and expenses
|
|
|
51,481,694
|
|
|
43,311,746
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
4,847,723
|
|
|
35,815,496
|
|
|
|
|
|
|
|
Corporate and other
costs:
|
|
|
|
|
|
|
Facilities closing
costs
|
|
|
217,266
|
|
|
-
|
Stock-based
compensation expense
|
|
|
1,900,000
|
|
|
-
|
General and
administrative expenses
|
|
|
7,175,544
|
|
|
6,576,523
|
Total corporate and
other costs
|
|
|
9,292,810
|
|
|
6,576,523
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
(4,445,087)
|
|
|
29,238,973
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
3,140,089
|
|
|
1,855,974
|
Other
expense
|
|
|
247,455
|
|
|
2,380,545
|
Income (loss) before
taxes
|
|
|
(7,832,631)
|
|
|
25,002,454
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
|
(910,659)
|
|
|
176,323
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(6,921,972)
|
|
|
24,826,131
|
|
|
|
|
|
|
|
Less: net income
(loss) attributable to noncontrolling interests
|
|
|
(1,774,693)
|
|
|
3,383,288
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Nutex Health Inc.
|
|
$
|
(5,147,279)
|
|
$
|
21,442,843
|
|
|
|
|
|
|
|
Earnings (loss) per
common share
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.01)
|
|
$
|
0.04
|
Diluted
|
|
$
|
(0.01)
|
|
$
|
0.04
|
NUTEX HEALTH
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(6,921,972)
|
|
$
|
24,826,131
|
Adjustment to reconcile
net income (loss) to net cash from operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
3,993,747
|
|
|
2,396,861
|
Amortization of debt
issuance costs
|
|
|
6,738
|
|
|
-
|
Stock-based
compensation expense
|
|
|
1,900,000
|
|
|
-
|
Deferred tax
expense
|
|
|
(910,659)
|
|
|
-
|
Loss on lease
termination
|
|
|
58,211
|
|
|
|
Non-cash lease
expense
|
|
|
40,545
|
|
|
58,857
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
6,620,249
|
|
|
2,849,060
|
Accounts receivable -
related party
|
|
|
(100)
|
|
|
1,867,496
|
Inventories
|
|
|
47,840
|
|
|
(578)
|
Prepaid expenses and
other current assets
|
|
|
1,040,753
|
|
|
131,053
|
Accounts
payable
|
|
|
(8,565,577)
|
|
|
3,871,115
|
Accounts payable -
related party
|
|
|
9,636
|
|
|
(531,066)
|
Accrued expenses and
other current liabilities
|
|
|
3,732,602
|
|
|
272,493
|
Net cash from
operating activities
|
|
|
1,052,013
|
|
|
35,741,422
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Acquisitions of
property and equipment
|
|
|
(4,376,983)
|
|
|
(8,591,823)
|
Cash related to
deconsolidation of Real Estate Entity
|
|
|
(1,039,157)
|
|
|
-
|
Net cash from
investing activities
|
|
|
(5,416,140)
|
|
|
(8,591,823)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from lines of
credit
|
|
|
49,414
|
|
|
2,044,765
|
Proceeds from notes
payable
|
|
|
7,551,506
|
|
|
2,192,309
|
Repayments of lines of
credit
|
|
|
-
|
|
|
(45,107)
|
Repayments of notes
payable
|
|
|
(2,209,678)
|
|
|
(2,590,917)
|
Repayments of finance
leases
|
|
|
(936,703)
|
|
|
(299,275)
|
Payment of debt
issuance costs
|
|
|
-
|
|
|
(27,388)
|
Members'
contributions
|
|
|
28,000
|
|
|
3,869,201
|
Members'
distributions
|
|
|
(1,537,141)
|
|
|
(32,852,981)
|
Net cash from
financing activities
|
|
|
2,945,398
|
|
|
(27,709,393)
|
Net change in cash and
cash equivalents
|
|
|
(1,418,729)
|
|
|
(559,794)
|
Cash and cash
equivalents - beginning of the period
|
|
|
34,255,264
|
|
|
36,118,284
|
Cash and cash
equivalents - end of the period
|
|
$
|
32,836,535
|
|
$
|
35,558,490
|
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 U.S. GAAP measures of
performance and may not be comparable to similarly-titled measures
presented by other companies.
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Reconciliation of net
income (loss) attributable to Nutex Health Inc. to Adjusted
EBITDA:
|
|
|
|
|
|
|
Net income (loss)
attributable to Nutex Health Inc.
|
|
$
|
(5,147,279)
|
|
$
|
21,442,843
|
Depreciation and
amortization
|
|
|
3,993,747
|
|
|
2,396,861
|
Interest expense,
net
|
|
|
3,140,089
|
|
|
1,855,974
|
Income tax expense
(benefit)
|
|
|
(910,659)
|
|
|
176,323
|
Allocation to
noncontrolling interests
|
|
|
(755,310)
|
|
|
(1,696,226)
|
EBITDA
|
|
|
320,588
|
|
|
24,175,775
|
Facilities closing
costs
|
|
|
217,266
|
|
|
-
|
Stock-based
compensation expense
|
|
|
1,900,000
|
|
|
-
|
Adjusted
EBITDA
|
|
$
|
2,437,854
|
|
$
|
24,175,775
|
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 19 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 final rules implemented under the No
Surprises Act and related regulatory guidance, 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 March 31, 2023 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.
View original
content:https://www.prnewswire.com/news-releases/nutex-health-reports-first-quarter-2023-financial-results-301825194.html
SOURCE Nutex Health, Inc.