NUTEX HEALTH REPORTS SECOND QUARTER 2022 FINANCIAL RESULTS
- EBITDA OF $5.4 MILLION FOR THE SECOND QUARTER OF 2022
- ADJUSTED EBITDA OF $9.4 MILLION FOR THE SECOND QUARTER OF 2022
- NET LOSS OF $19.4 MILLION FOR THE SECOND QUARTER OF 2022
- EBITDA OF $29.7 MILLION FOR THE SIX MONTHS ENDED JUNE 30, 2022
- ADJUSTED EBITDA OF $33.6 MILLION FOR THE SIX MONTHS ENDED JUNE 30, 2022
- NET INCOME OF $2.1 MILLION FOR THE SIX MONTHS ENDED JUNE 30, 2022
- COMPANY REITERATES THAT IT EXPECTS TO OPEN 20 NEW FACILITIES BY THE END OF 2024
HOUSTON, Aug. 22, 2022 /PRNewswire/ -- 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 2nd Quarter financial results for the three months ended June 30, 2022 and the filing of its current report on Form 10-Q for the period ended June 30, 2022 ("10-Q") with the Securities and Exchange Commission.
Financial Highlights for the Three Months Ended June 30, 2022 (Unaudited):
- Net revenue of $58.0 million.
- Net loss attributable to Nutex Health of $19.4 million. In Q2, the Company recognized a one-time non-cash charge of $18.4 million, net to income tax expense during the three months ended June 30, 2022 for the change in tax status of Nutex Health Holdco LLC and release of acquired valuation allowance of Clinigence. Additionally, the Company recognized one-time acquisition expenses of $3.9 million related to the merger of Nutex Health Holdco LLC and Clinigence Holdings, Inc. Please read "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 10-Q.
- EBITDA of $5.4 million.
- Adjusted EBITDA of $9.4 million.
- As of June 30, 2022, the Company had total assets of $871.8 million, including cash and cash equivalents of $47.6 million.
Financial Highlights for the Six Months Ended June 30, 2022 (Unaudited):
- Net revenue of $137.2 million.
- Net income attributable to Nutex Health of $2.1 million.
- EBITDA of $29.7 million.
- Adjusted EBITDA of $33.6 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.
Notes to the Financial Highlights for the Three Months Ended June 30, 2022:
- Clinigence Holdings, Inc. and Nutex Health Holdco LLC completed their merger on April 1, 2022. Therefore, the Second Quarter 2022 financial results reflect the consolidated financial results of post-merger Clinigence Holdings, Inc. and Nutex Health Holdco LLC.
- The Company recognized a one-time non-cash charge of $18.4 million, net to income tax expense during the three months ended June 30, 2022 for the change in tax status of Nutex Health Holdco LLC and release of acquired valuation allowance for Clinigence. Prior to the merger with Clinigence, Nutex Health Holdco LLC and the Nutex Subsidiaries were pass-through entities treated as partnerships for U.S. federal income tax purposes. No provision for federal income taxes was provided for these periods as federal taxes were obligations of these companies' members. After the merger, Nutex Health Holdco LLC became a wholly-owned subsidiary of Clinigence and will be included in its future consolidated corporate tax filings.
- The Company anticipates opening 20 new facilities by the end of 2024. These facilities are either under construction or in advanced planning stages. Three are expected to open in late 2022, with another 17 expected to open in 2023 and 2024. There can be no assurance that these new facilities will open in the anticipated timeframes or that they will open at all.
"In the second quarter, our management team focused on integrating our two companies post-merger," stated Jon Bates, Chief Financial Officer of Nutex Health. "We believe this integration has now been substantially completed."
"We are very proud of the hard work of our physicians, nurses, hospital staff and corporate staff to get to this stage. We continue our efforts to grow the Company while providing the best patient care possible. This philosophy dictates all of our decision making as an organization," stated Tom Vo, M.D., MBA, Chairman and Chief Executive Officer of Nutex Health. "We are also excited about our pipeline of new facilities which are either under construction or in advanced planning stages throughout the country."
"The Company has formed two new independent practice associations (IPAs), one in Houston and one in South Florida. We are actively working on contracting with primary care physicians as well as specialists. Once this phase is completed, the Company expects to contract with health insurance plans and start enrolling patients in 2023," stated Warren Hosseinion, M.D., President of Nutex Health. "We believe that our unique integrated model which combines our cloud-based data analytics platform, micro hospitals and IPAs will create long-term value for our shareholders."
For more details on the Company's Second 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.
NUTEX HEALTH INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
June 30, 2022 | December 31, 2021 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 47,600,621 | $ | 36,118,284 | ||
Accounts receivable | 94,653,853 | 112,766,317 | ||||
Accounts receivable - related parties | 1,391,049 | 1,993,117 | ||||
Inventories | 2,907,182 | 2,814,178 | ||||
Prepaid expenses and other current assets | 2,427,849 | 323,283 | ||||
Total current assets | 148,980,554 | 154,015,179 | ||||
Property and equipment, net | 67,822,682 | 151,912,500 | ||||
Operating right-of-use assets | 23,686,253 | 21,829,552 | ||||
Financing right-of-use assets | 183,542,400 | 64,614,781 | ||||
Intangible assets, net | 21,964,230 | 682,649 | ||||
Goodwill | 425,355,837 | 1,139,297 | ||||
Other assets | 441,304 | 456,085 | ||||
Total assets | $ | 871,793,260 | $ | 394,650,043 | ||
Liabilities and Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 19,954,714 | $ | 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 | 7,735,760 | 10,158,932 | ||||
Operating lease liabilities, current portion | 1,789,871 | 1,489,997 | ||||
Financing lease liabilities, current portion | 3,592,382 | 1,452,447 | ||||
Accrued expenses and other current liabilities | 17,191,260 | 6,864,426 | ||||
Total current liabilities | 56,471,027 | 37,690,959 | ||||
Long-term debt, net | 16,305,258 | 78,821,985 | ||||
Operating lease liabilities, net | 22,616,233 | 20,820,588 | ||||
Financing lease liabilities, net | 192,516,749 | 65,735,501 | ||||
Deferred tax liabilities | 17,469,750 | - | ||||
Total liabilities | 305,379,017 | 203,069,033 | ||||
Commitments and contingencies | ||||||
Equity: | ||||||
Common stock, $0.001 par value; 900,000,000 shares authorized; 648,918,458 and | 648,918 | 592,792 | ||||
Additional paid-in capital | 467,402,221 | 11,742,891 | ||||
Retained earnings | 57,638,688 | 102,315,623 | ||||
Nutex Health Inc. equity | 525,689,827 | 114,651,306 | ||||
Noncontrolling interests | 40,724,416 | 76,929,704 | ||||
Total equity | 566,414,243 | 191,581,010 | ||||
Total liabilities and equity | $ | 871,793,260 | $ | 394,650,043 | ||
NUTEX HEALTH INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||
Three months ended June 30 | Six months ended June 30 | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
Revenue: | ||||||||||||
Hospital division | $ | 51,604,679 | $ | 62,814,672 | $ | 130,731,921 | $ | 150,157,914 | ||||
Population health management division | 6,443,254 | - | 6,443,254 | - | ||||||||
Total revenue | 58,047,933 | 62,814,672 | 137,175,175 | 150,157,914 | ||||||||
Operating costs and expenses: | ||||||||||||
Payroll | 24,045,279 | 18,261,313 | 48,502,680 | 36,026,695 | ||||||||
Contract services | 13,478,349 | 4,235,963 | 18,883,944 | 9,036,276 | ||||||||
Medical supplies | 2,581,552 | 2,572,970 | 6,841,031 | 4,972,662 | ||||||||
Insurance expense | 1,551,696 | 1,971,574 | 3,927,679 | 3,619,305 | ||||||||
Depreciation and amortization | 3,132,485 | 2,223,461 | 5,529,346 | 4,001,640 | ||||||||
Other | 8,266,046 | 4,412,059 | 14,099,991 | 8,714,161 | ||||||||
Total operating costs and expenses | 53,055,407 | 33,677,340 | 97,784,671 | 66,370,739 | ||||||||
Gross profit | 4,992,526 | 29,137,332 | 39,390,504 | 83,787,175 | ||||||||
Corporate cost: | ||||||||||||
Acquisition costs | 3,885,666 | - | 3,885,666 | - | ||||||||
General and administrative expenses | 2,485,337 | 1,533,002 | 7,644,342 | 3,522,040 | ||||||||
Total corporate cost | 6,371,003 | 1,533,002 | 11,530,008 | 3,522,040 | ||||||||
Operating income (loss) | (1,378,477) | 27,604,330 | 27,860,496 | 80,265,135 | ||||||||
Interest expense | 3,849,629 | 1,504,933 | 5,705,603 | 2,991,090 | ||||||||
Other expense (income) | (1,403,222) | (4,060,149) | 977,323 | (3,921,356) | ||||||||
Income (loss) before taxes | (3,824,884) | 30,159,546 | 21,177,570 | 81,195,401 | ||||||||
Income tax expense | 19,653,286 | 481,501 | 19,829,609 | 638,354 | ||||||||
Net income (loss) | (23,478,170) | 29,678,045 | 1,347,961 | 80,557,047 | ||||||||
Less: net income (loss) attributable to noncontrolling interests | (4,082,418) | 2,618,644 | (786,589) | 15,735,510 | ||||||||
Net income (loss) attributable to Nutex Health Inc. | $ | (19,395,752) | $ | 27,059,401 | $ | 2,134,550 | $ | 64,821,537 | ||||
Earnings (loss) per common share | ||||||||||||
Basic | $ | (0.03) | $ | 0.05 | $ | 0.00 | $ | 0.11 | ||||
Diluted | $ | (0.03) | $ | 0.05 | $ | 0.00 | $ | 0.11 | ||||
Weighted average shares outstanding | ||||||||||||
Basic | 646,370,173 | 592,791,712 | 619,728,949 | 592,791,712 | ||||||||
Diluted | 658,991,192 | 592,791,712 | 626,992,817 | 592,791,712 | ||||||||
NUTEX HEALTH INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||
Six months ended June 30 | ||||||
2022 | 2021 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 1,347,961 | $ | 80,557,047 | ||
Adjustment to reconcile net income to net cash from operating activities: | ||||||
Depreciation and amortization | 5,529,346 | 4,001,640 | ||||
Stock-based compensation expense | 54,166 | - | ||||
Other income - gain on PPP loan forgiveness | - | (4,525,600) | ||||
Deferred tax expense | 12,013,748 | - | ||||
Debt accretion expense | 722,536 | - | ||||
Non-cash lease expense | 109,114 | (144,677) | ||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | 19,745,666 | 17,338,754 | ||||
Accounts receivable - related party | 602,068 | (150) | ||||
Inventories | (93,004) | (2,513) | ||||
Prepaid expenses and other current assets | (1,977,182) | (1,022,062) | ||||
Accounts payable | 6,358,427 | 4,845,359 | ||||
Accounts payable - related party | (630,490) | (793,487) | ||||
Accrued expenses and other current liabilities | 9,645,922 | 2,536,291 | ||||
Other current assets | (25,219) | (36,120) | ||||
Net cash from operating activities | 53,403,059 | 102,754,482 | ||||
Cash flows from investing activities: | ||||||
Acquisitions of property and equipment | (16,621,726) | (21,714,755) | ||||
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 | (6,326,710) | (21,714,755) | ||||
Cash flows from financing activities: | ||||||
Proceeds from lines of credit | 2,592,714 | - | ||||
Proceeds from notes payable | 4,865,974 | 13,966,345 | ||||
Repayments of lines of credit | (72,055) | (813,101) | ||||
Repayments of notes payable | (4,338,567) | (13,712,534) | ||||
Repayments of finance leases | (305,134) | (549,710) | ||||
Common stock issued for exercise of warrants | 4,119,141 | - | ||||
Common stock issued for exercise of options | 644,974 | - | ||||
Members' contributions | 4,731,117 | 11,033,400 | ||||
Members' distributions | (47,832,176) | (78,446,644) | ||||
Net cash from financing activities | (35,594,012) | (68,522,244) | ||||
Net change in cash and cash equivalents | 11,482,337 | 12,517,483 | ||||
Cash and cash equivalents - beginning of the period | 36,118,284 | 25,514,275 | ||||
Cash and cash equivalents - end of the period | 47,600,621 | 38,031,758 | ||||
Supplemental disclosures of cash flow information: | ||||||
Cash paid for interest | $ | 5,705,603 | $ | 2,991,090 | ||
Cash paid for income taxes | $ | 631,400 | $ | 316,702 | ||
Non-cash investing and financing activities: | ||||||
Acquisition of financing leases | $ | 9,937,104 | $ | 452,457 | ||
Non-GAAP Financial Measures
EBITDA 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 EBITDA as net income plus net interest expense, depreciation and amortization, and Adjusted EBITDA is further adjusted for stock-based compensation and any acquisition related costs. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below. Neither EBITDA nor Adjusted EBITDA is 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, | |||||||||||
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. | $ | (19,395,752) | $ | 27,059,401 | $ | 2,134,550 | $ | 64,821,537 | ||||
Depreciation and amortization | 3,132,485 | 2,223,461 | 5,529,346 | 4,001,640 | ||||||||
Interest expense, net | 3,849,629 | 1,504,933 | 5,705,603 | 2,991,090 | ||||||||
Income tax expense | 19,653,286 | 481,501 | 19,829,609 | 638,354 | ||||||||
Allocation to noncontrolling interests | (1,825,262) | (1,254,592) | (3,521,488) | (2,703,929) | ||||||||
EBITDA | 5,414,386 | 30,014,704 | 29,677,620 | 69,748,692 | ||||||||
Stock-based compensation expense | 54,166 | - | 54,166 | - | ||||||||
Acquisition costs | 3,885,666 | - | 3,885,666 | - | ||||||||
Adjusted EBITDA | $ | 9,354,218 | $ | 30,014,704 | $ | 33,617,452 | $ | 69,748,692 | ||||
About Nutex Health Inc.
Headquartered in Houston, Texas and founded in 2011, Nutex Health Inc. is a physician-led, technology-enabled healthcare services company with approximately 1500 employees nationwide and is partnered with over 800 physicians. The Company has two divisions: a Hospital division and a Population Health Management division. The Hospital division currently owns and operates 21 facilities in eight different states. The division implements and operates different innovative health care models, including micro hospitals, specialty hospitals and hospital outpatient departments (HOPDs). The Population Health Management division owns and operates provider networks such as Independent Physician Associations (IPAs). Through our Management Services Organizations (MSOs), 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, 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.
SOURCE Nutex Health, Inc.
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