NUTEX HEALTH REPORTS THIRD QUARTER AND YEAR TO DATE SEPTEMBER 30, 2024 FINANCIAL RESULTS

PR Newswire

HOUSTON, Nov. 7, 2024

   -- TOTAL REVENUE OF $222.3 MILLION FOR THE FIRST NINE MONTHS OF 2024 VS. 
      $178.0 MILLION FOR THE SAME PERIOD IN 2023, AN INCREASE OF 25% 
 
   -- HOSPITAL DIVISION VISITS OF 122,944 FOR THE FIRST NINE MONTHS OF 2024 VS. 
      VISITS OF 102,798 FOR THE SAME PERIOD IN 2023, AN INCREASE OF 20% 
 
   -- HOSPITAL DIVISION OPERATING INCOME OF $54.7 MILLION FOR THE FIRST NINE 
      MONTHS OF 2024 VS. $21.1 MILLION FOR THE SAME PERIOD IN 2023, AN INCREASE 
      OF 159% 
 
   -- NET CASH FROM OPERATING ACTIVITIES OF $23.1 MILLION FOR THE FIRST NINE 
      MONTHS OF 2024 
 
   -- COMPANY CONTINUES ITS FOCUS ON INCREASING CASH FLOW 

HOUSTON, Nov. 7, 2024 /PRNewswire/ -- 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:

   -- Total revenue of $78.8 million as compared to total revenue of $62.7 
      million for the three months ended September 30, 2023, an increase of 
      26%. Of this revenue growth, mature hospitals, which are hospitals opened 
      prior to December 31, 2021, increased by 20.7% in 2024 compared to the 
      same period in 2023. 
 
   -- Operating income (including the negative impact of a $2.0 million 
      non-cash stock-based compensation expense) for the three months ended 
      September 30, 2024 was $9.7 million, compared to an operating loss of 
      approximately $0.8 million for the three months ended September 30, 2023, 
      representing a $10.5 million improvement quarter over quarter. 
 
   -- Net loss attributable to Nutex Health of $8.8 million in the three months 
      ended September 30, 2024 as compared to a net loss attributable to Nutex 
      Health of $5.5 million for the three months ended September 30, 2023. 
      This $8.8 million amount includes a $6.7 million non-cash loss on warrant 
      liability as well as the $2.0 million non-cash stock-based compensation 
      expense noted above. 
 
   -- EBITDA attributable to Nutex Health of $4.3 million, as compared to 
      EBITDA attributable to Nutex Health of $1.2 million for the three months 
      ended September 30, 2023. 
 
   -- Adjusted EBITDA attributable to Nutex Health of $13.5 million, as 
      compared to Adjusted EBITDA attributable to Nutex Health of $1.3 million 
      for the three months ended September 30, 2023, an increase of 938%. 
 
   -- Total visits from the Hospital Division were 41,668 for the third quarter 
      2024, as compared to 37,443 for the third quarter 2023, an increase of 
      4,225 or 11.3%. Of this visit growth, mature hospitals increased by 3.8% 
      in 2024 compared to the same period in 2023. 

Financial Highlights for the Nine Months Ended September 30, 2024:

   -- Total revenue of $222.3 million as compared to total revenue of $178.0 
      million for the nine months ended September 30, 2023, an increase of 
      approximately 25%. Of this revenue growth, mature hospitals, which are 
      hospitals opened prior to December 31, 2021, increased by 13.5% in 2024 
      compared to 2023. 
 
   -- Operating income for the nine months ended September 30, 2024 was $16.4 
      million compared to an operating loss of $5.6 million for the nine months 
      ended September 30, 2023, representing a $22.0 million improvement year 
      over year. 
 
   -- Net loss attributable to Nutex Health of $9.5 million as compared to net 
      loss attributable to Nutex Health of $14.2 million for the nine months 
      ended September 30, 2023. This $9.5 million amount includes non-cash 
      items of $10.2 million (non-cash stock-based compensation expense of $2.0 
      million, non-cash impairment of assets of $3.9 million, non-cash 
      impairment of goodwill of $3.2 million and $1.1 million non-cash loss on 
      warrant liability) in the first nine months of 2024, while the $14.2 
      million amount includes non-cash stock-based compensation expense of $2.2 
      million in the first nine months of 2023. 
 
   -- EBITDA attributable to Nutex Health of $19.9 million, as compared to 
      EBITDA attributable to Nutex Health of $5.3 million for the nine months 
      ended September 30, 2023. 
 
   -- Adjusted EBITDA attributable to Nutex Health of $30.1 million, as 
      compared to Adjusted EBITDA attributable to Nutex Health of $7.7 million 
      for the nine months ended September 30, 2023, an increase of 290%. 
 
   -- Total visits from the Hospital Division were 122,944 for the nine months 
      ended September 30, 2024, as compared to 102,798 for the same period in 
      2023, an increase of 20,146 or 19.6%. Of this visit growth, mature 
      hospitals increased by 7.7% in the nine months ended September 30, 2024 
      compared to the same period in 2023. 
 
   -- Net cash from operating activities of $23.1 million for the nine months 
      ended September 30, 2024. 
 
   -- As of September 30, 2024, the Company had total assets of $438.5 million, 
      including cash and cash equivalents of $46.9 million and long-term debt 
      of $26.8 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 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.

 
                            NUTEX HEALTH INC. 
                   CONDENSED CONSOLIDATED BALANCE SHEETS 
                                (Unaudited) 
 
                                  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, 

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