NUTEX HEALTH REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS
FULL YEAR 2024 HIGHLIGHTS:
- TOTAL REVENUE OF $479.9 MILLION VERSUS $247.6 MILLION IN 2023, AN INCREASE OF 93.8%
- NET INCOME OF $52.2 MILLION VERSUS NET LOSS OF $45.8 MILLION IN 2023
- DILUTED EPS OF $9.71 PER SHARE VERSUS $(10.39) PER SHARE IN 2023
- EBITDA OF $98.4 MILLION VERSUS $(22.5) MILLION IN EBITDA IN 2023
- ADJUSTED EBITDA OF $123.7 MILLION VERSUS $10.8 MILLION IN 2023, AN INCREASE OF 1,045.4%
- NET CASH FROM OPERATING ACTIVITIES OF $23.2 MILLION
- COMPANY BELIEVES ITS ARBITRATION EFFORTS, THROUGH THE INDEPENDENT DISPUTE RESOLUTION (IDR) PROCESS, HAS RESULTED IN MORE EQUITABLE PAYMENTS
HOUSTON, March 31, 2025 /PRNewswire/ -- Nutex Health Inc. ("Nutex Health" or the "Company") (NASDAQ:NUTX), a physician-led, integrated healthcare delivery system comprised of 24 state-of-the-art micro hospitals and hospital outpatient departments (HOPDs) in 11 states and primary care-centric, risk-bearing physician networks, today announced fourth quarter 2024 and fiscal year 2024 financial results for the twelve months ended December 31, 2024.
Financial highlights for the year ended December 31, 2024:
- Total revenue increased $232.3 million to $479.9 million for the year ended December 31, 2024 as compared to total revenue of $247.6 million for the same period in 2023, an increase of 93.8%. Of this revenue growth, revenue from mature hospitals, which are hospitals opened prior to December 31, 2021, increased by 56.6% in 2024 compared to 2023.
- The arbitration process resulted in approximately $169.7 million more in revenue in 2024 than in 2023, which amounted to approximately 73.1% of the $232.3 million revenue increase. Of the $169.7 million in arbitration revenue, $68.9 million, $70.5 million and $30.3 million related to dates of services for the fourth quarter 2024, third quarter 2024 and pre-third quarter 2024, respectively.
- Operating income for the year ended December 31, 2024 was $130.6 million compared to an operating loss of $31.8 million for the year ended December 31, 2023, representing a $162.4 million improvement year over year.
- Net income attributable to Nutex Health of $52.2 million as compared to net loss attributable to Nutex Health of $45.8 million for the year ended December 31, 2023. This $52.2 million amount includes non-cash items of $25.3 million (non-cash stock-based compensation expense of $16.6 million, non-cash impairment of assets of $3.9 million, non-cash impairment of goodwill of $3.2 million and $1.6 million non-cash loss on warrant liability) in the year ended December 31, 2024, while the $45.8 million amount includes non-cash items of $33 million (non-cash stock-based compensation expense of $2.8 million, non-cash impairment of assets of $29.1 million and non-cash impairment of goodwill of $1.1 million) in the year ended December 31, 2023.
- EBITDA attributable to Nutex Health of $98.4 million, as compared to EBITDA attributable to Nutex Health of $(22.5) million for the year ended December 31, 2023.
- Adjusted EBITDA attributable to Nutex Health of $123.7 million, as compared to Adjusted EBITDA attributable to Nutex Health of $10.8 million for the year ended December 31, 2023, an increase of 1,045.4%.
- Total visits at the Hospital Division were 168,388 for the year ended December 31, 2024, as compared to 144,058 for the same period in 2023, an increase of 24,330 or 16.9%. Of this visit growth, visits at mature hospitals increased by 6.5% in the year ended December 31, 2024 compared to the same period in 2023.
- Net cash from operating activities of $23.2 million for the year ended December 31, 2024.
- As of December 31, 2024, the Company had total assets of $655.3 million, including cash and cash equivalents of $43.6 million and long-term debt of $22.5 million.
Financial highlights for the three months ended December 31, 2024:
- Total revenue of $257.6 million for the three months ended December 31, 2024 as compared to total revenue of $69.7 million for the three months ended December 31, 2023, an increase of $187.9 million (or 269.6%). Of this revenue growth, revenue from mature hospitals, which are hospitals opened prior to December 31, 2021, increased by 175.6% in 2024 compared to the same period in 2023.
- The arbitration process resulted in approximately $169.7 million more in revenue in the fourth quarter 2024 compared to the fourth quarter 2023, which amounted to approximately 90.3% of the $187.9 million increase in overall revenue. Of the $169.7 million in arbitration revenue, $68.9 million, $70.5 million and $30.3 million related to dates of services for the fourth quarter 2024, third quarter 2024 and pre-third quarter 2024, respectively.
- Operating income (including the negative impact of a $14.7 million non-cash stock-based compensation expense) for the three months ended December 31, 2024 was $114.2 million, compared to an operating loss of approximately $26.1 million for the three months ended December 31, 2023, representing a $140.3 million improvement quarter over quarter.
- Net income attributable to Nutex Health of $61.7 million in the three months ended December 31, 2024 as compared to a net loss attributable to Nutex Health of $31.7 million for the three months ended December 31, 2023. This $61.7 million amount includes a $0.5 million non-cash loss on warrant liability as well as the $14.7 million non-cash stock-based compensation expense noted above.
- EBITDA attributable to Nutex Health of $78.4 million for the three months ended December 31, 2024, as compared to EBITDA attributable to Nutex Health of $(27.7) million for the three months ended December 31, 2023.
- Adjusted EBITDA attributable to Nutex Health of $93.6 million for the three months ended December 31, 2024, as compared to Adjusted EBITDA attributable to Nutex Health of $3.1 million for the three months ended December 31, 2024, an increase of 2,919.4%.
- Total visits at the Hospital Division were 45,444 for the fourth quarter 2024, as compared to 41,381 for the fourth quarter 2023, an increase of 4,063 or 9.8%. Of this visit growth, visits at mature hospitals increased by 3.1% in 2024 compared to the same period in 2023.
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 record annual revenues, net income and solid free cash flows, as well as impressive margin expansion as a result of our continued focus on revenue growth while controlling our costs and still opening four hospitals in 2024," stated Jon Bates, Chief Financial Officer of Nutex Health.
"In 2024, Nutex Health achieved significant operational improvements across all key metrics. Total hospital division visits increased by 16.9%, driven by higher ER acuity and an enhanced service mix, with greater focus on observation patients and inpatients. In 2025, we will continue optimizing operations and maintaining a lean cost structure to support sustained growth," said Josh DeTillio, Chief Operating Officer of Nutex Health.
"Nutex Health delivered healthy year-end and fourth quarter financial and operational results last year. The arbitration initiative that we began in July 2024 is generating higher reimbursement amounts per visit this year and is more in line with a fair market rate. We would like to thank our dedicated teams of physicians, nurses and all our other team members for continuing to deliver for our patients. We enter 2025 with great momentum and look forward to continuing our strong financial and operational performance," stated Tom Vo, M.D., MBA, Chairman and Chief Executive Officer of Nutex Health.
For more details on the Company's Fourth Quarter 2024 financial results, please refer to our Annual Report on Form 10-K filed with the U.S. Securities & Exchange Commission and accessible at www.sec.gov.
NUTEX HEALTH INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||
December 31, | ||||||
2024 | 2023 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 43,581,412 | $ | 22,002,056 | ||
Accounts receivable | 232,449,226 | 58,624,301 | ||||
Accounts receivable - related parties | 3,602,189 | 4,152,068 | ||||
Inventories | 2,849,814 | 3,390,584 | ||||
Prepaid expenses and other current assets | 9,996,244 | 2,679,394 | ||||
Total current assets | 292,478,885 | 90,848,403 | ||||
Property and equipment, net | 77,932,744 | 81,387,649 | ||||
Operating right-of-use assets | 27,871,830 | 11,853,082 | ||||
Financing right-of-use assets | 218,889,351 | 176,146,329 | ||||
Intangible assets, net | 15,530,281 | 20,512,636 | ||||
Goodwill, net | 13,918,719 | 17,066,263 | ||||
Deferred tax assets | 7,987,236 | - | ||||
Other assets | 711,347 | 431,135 | ||||
Total assets | $ | 655,320,393 | $ | 398,245,497 | ||
Liabilities and Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 9,613,821 | $ | 18,899,196 | ||
Accounts payable - related parties | 4,345,138 | 6,382,197 | ||||
Lines of credit | 3,554,029 | 3,371,676 | ||||
Current portion of long-term debt | 14,395,457 | 10,808,721 | ||||
Operating lease liabilities, current portion | 2,079,940 | 1,579,987 | ||||
Financing lease liabilities, current portion | 7,704,873 | 4,315,979 | ||||
Accrued arbitration expenses | 47,741,815 | - | ||||
Accrued income tax expense | 25,989,262 | - | ||||
Accrued expenses and other current liabilities | 25,441,790 | 12,955,296 | ||||
Total current liabilities | 140,866,125 | 58,313,052 | ||||
Long-term debt, net | 22,465,896 | 26,314,733 | ||||
Operating lease liabilities, net | 30,617,399 | 15,479,639 | ||||
Financing lease liabilities, net | 259,479,096 | 213,886,213 | ||||
Deferred tax liabilities | - | 5,145,754 | ||||
Total liabilities | 453,428,516 | 319,139,391 | ||||
Commitments and contingencies (Note 10) | ||||||
Equity: | ||||||
Common stock, $0.001 par value; 950,000,000 shares authorized; 5,511,452 and 4,511,199 | 5,511 | 4,511 | ||||
Additional paid-in capital | 503,232,609 | 470,521,218 | ||||
Accumulated deficit | (356,893,371) | (409,072,539) | ||||
Nutex Health Inc. equity | 146,344,749 | 61,453,190 | ||||
Noncontrolling interests | 55,547,128 | 17,652,916 | ||||
Total equity | 201,891,877 | 79,106,106 | ||||
Total liabilities and equity | $ | 655,320,393 | $ | 398,245,497 | ||
NUTEX HEALTH INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||
Three months ended December 31 | Year ended December 31 | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Revenue: | ||||||||||||
Hospital division | $ | 249,696,907 | $ | 62,585,167 | $ | 449,063,683 | $ | 218,070,397 | ||||
Population health management division | 7,920,809 | 7,084,306 | 30,884,950 | 29,575,919 | ||||||||
Total revenue | 257,617,716 | 69,669,473 | 479,948,633 | 247,646,316 | ||||||||
Operating costs and expenses: | ||||||||||||
Payroll | 32,277,720 | 28,807,419 | 117,527,022 | 108,377,938 | ||||||||
Contract services | 68,275,505 | 14,377,128 | 100,757,191 | 42,349,982 | ||||||||
Medical supplies | 2,392,577 | 3,402,926 | 15,285,481 | 14,151,140 | ||||||||
Depreciation and amortization | 5,280,488 | 4,682,724 | 18,971,972 | 17,591,572 | ||||||||
Other | 7,765,372 | 5,185,964 | 31,145,690 | 30,401,513 | ||||||||
Total operating costs and expenses | 115,991,662 | 56,456,161 | 283,687,356 | 212,872,145 | ||||||||
Gross profit | 141,626,054 | 13,213,312 | 196,261,277 | 34,774,171 | ||||||||
Corporate and other costs: | ||||||||||||
Facilities closing costs | - | - | - | 217,266 | ||||||||
Acquisition costs | - | - | - | 43,464 | ||||||||
Stock-based compensation | 14,680,454 | 637,159 | 16,631,898 | 2,835,971 | ||||||||
Impairment of assets | (11,640) | 29,082,203 | 3,887,216 | 29,082,203 | ||||||||
Impairment of goodwill | - | 1,139,297 | 3,197,391 | 1,139,297 | ||||||||
General and administrative expenses | 12,747,842 | 8,499,550 | 41,923,972 | 33,229,718 | ||||||||
Total corporate and other costs | 27,416,656 | 39,358,209 | 65,640,477 | 66,547,919 | ||||||||
Operating income (loss) | 114,209,398 | (26,144,897) | 130,620,800 | (31,773,748) | ||||||||
Interest expense, net | 5,052,081 | 4,236,553 | 19,932,015 | 16,317,869 | ||||||||
Loss on warrant liability | 536,264 | - | 1,608,973 | - | ||||||||
Other expense (income) | 43,119 | 328,461 | (668,930) | 399,182 | ||||||||
Income (loss) before taxes | 108,577,934 | (30,709,911) | 109,748,742 | (48,490,799) | ||||||||
Income tax expense (benefit) | 8,608,746 | (2,998,554) | 14,476,821 | (5,067,084) | ||||||||
Net income (loss) | 99,969,188 | (27,711,357) | 95,271,921 | (43,423,715) | ||||||||
Less: net income attributable to noncontrolling interests | 38,273,584 | 3,906,540 | 43,092,753 | 2,362,899 | ||||||||
Net income (loss) attributable to Nutex Health Inc. | $ | 61,695,604 | $ | (31,617,897) | $ | 52,179,168 | $ | (45,786,614) | ||||
Earnings (loss) per common share | ||||||||||||
Basic | $ | 11.83 | $ | (7.47) | $ | 10.25 | $ | (10.39) | ||||
Diluted | $ | 11.12 | $ | (7.47) | $ | 9.71 | $ | (10.39) | ||||
NUTEX HEALTH INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||
Year ended December 31, | |||||||||
2024 | 2023 | 2022 | |||||||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ | 95,271,921 | $ | (43,423,715) | $ | (432,739,618) | |||
Adjustment to reconcile net income (loss) to net cash from operating activities: | |||||||||
Depreciation and amortization | 18,971,972 | 17,591,572 | 13,131,374 | ||||||
Impairment of assets | 3,887,216 | 29,082,203 | - | ||||||
Impairment of goodwill | 3,197,391 | 1,139,297 | 398,135,038 | ||||||
Derecognition of goodwill | 453,017 | - | - | ||||||
Loss on warrant liability | 1,608,973 | - | - | ||||||
Stock-based compensation expense | 16,631,898 | 2,835,971 | 189,581 | ||||||
Rescission of warrant exercise expense | - | - | 561,651 | ||||||
Deferred tax (benefit) expense | (13,132,990) | (5,707,323) | 4,996,209 | ||||||
Debt accretion expense | 1,042,663 | 1,209,981 | 1,952,829 | ||||||
Loss on lease termination | - | 58,210 | - | ||||||
Non-cash lease expense | (381,035) | 131,582 | 64,143 | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | (173,956,924) | (969,761) | 56,622,133 | ||||||
Accounts receivable - related party | 549,879 | (3,613,885) | 1,454,934 | ||||||
Inventories | 540,770 | 142,701 | (719,107) | ||||||
Prepaid expenses and other current assets | (7,021,010) | (817,297) | (1,419,139) | ||||||
Accounts payable | (8,682,179) | (4,715,101) | 10,018,100 | ||||||
Accounts payable - related party | (2,037,059) | 2,466,536 | (329,155) | ||||||
Accrued arbitration expenses | 47,741,815 | - | - | ||||||
Accrued income tax expense | 25,989,262 | - | - | ||||||
Accrued expenses and other current liabilities | 12,478,227 | 5,845,481 | (1,311,865) | ||||||
Net cash from operating activities | 23,153,807 | 1,256,452 | 50,607,108 | ||||||
Cash flows from investing activities: | |||||||||
Acquisitions of property and equipment | (2,303,897) | (9,496,832) | (14,632,414) | ||||||
Acquired cash in reverse acquisition with Clinigence | - | - | 12,716,228 | ||||||
Cash related to sale of business | (361,325) | - | - | ||||||
Payments for acquisitions of businesses, net of cash acquired | - | (703,893) | - | ||||||
Cash related to deconsolidation of Real Estate Entities | - | (1,039,157) | (2,421,212) | ||||||
Net cash from investing activities | (2,665,222) | (11,239,882) | (4,337,398) | ||||||
Cash flows from financing activities: | |||||||||
Proceeds from lines of credit | 2,261,743 | 2,340,911 | 2,623,479 | ||||||
Proceeds from notes payable | 7,014,999 | 16,952,905 | 815,881 | ||||||
Proceeds from convertible notes | - | 4,909,864 | - | ||||||
Repayments of lines of credit | (2,079,390) | (1,592,714) | (72,055) | ||||||
Repayments of notes payable | (9,969,391) | (16,479,512) | (7,237,094) | ||||||
Repayments of finance leases | (4,628,083) | (3,484,683) | (1,721,224) | ||||||
Proceeds from common stock issuance, net issuance costs | 9,202,500 | - | - | ||||||
Rescission of warrant exercise | - | - | (588,042) | ||||||
Proceeds from exercise of warrants | 2,373,336 | - | 4,119,141 | ||||||
Proceeds from exercise of options | - | - | 644,974 | ||||||
Members' contributions | 3,353,023 | 298,032 | 4,513,867 | ||||||
Members' distributions | (6,437,966) | (5,214,581) | (51,231,657) | ||||||
Net cash from financing activities | 1,090,771 | (2,269,778) | (48,132,730) | ||||||
Net change in cash and cash equivalents | 21,579,356 | (12,253,208) | (1,863,020) | ||||||
Cash and cash equivalents - beginning of the year | 22,002,056 | 34,255,264 | 36,118,284 | ||||||
Cash and cash equivalents - end of the year | $ | 43,581,412 | $ | 22,002,056 | $ | 34,255,264 | |||
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 stock-based compensation, certain defined items of expense, any acquisition-related costs and impairments. Interest expense includes interest on lease liabilities, which is a component of total finance lease cost. 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.
Year ended December 31, | |||||||||
2024 | 2023 | 2022 | |||||||
Reconciliation of net income (loss) attributable to Nutex Health Inc. to | |||||||||
Net income (loss) attributable to Nutex Health Inc. | $ | 52,179,168 | $ | (45,786,614) | $ | (424,780,446) | |||
Depreciation and amortization | 18,971,972 | 17,591,572 | 13,131,374 | ||||||
Interest expense, net | 19,932,015 | 16,317,869 | 12,490,260 | ||||||
Income tax expense (benefit) | 14,476,821 | (5,067,084) | 13,090,905 | ||||||
Allocation to noncontrolling interests | (7,176,312) | (5,546,263) | (4,837,514) | ||||||
EBITDA | 98,383,664 | (22,490,520) | (390,905,421) | ||||||
Facility closing costs | - | 217,266 | - | ||||||
Acquisition costs | - | 43,464 | 3,885,666 | ||||||
Loss on warrant liability | 1,608,973 | - | - | ||||||
Stock-based compensation | 16,631,898 | 2,835,971 | 189,581 | ||||||
Rescission of warrant exercise | - | - | 1,243,059 | ||||||
Impairment of assets | 3,887,216 | 29,082,203 | - | ||||||
Impairment of goodwill | 3,197,391 | 1,139,297 | 398,135,038 | ||||||
Adjusted EBITDA | $ | 123,709,142 | $ | 10,827,681 | $ | 12,547,923 | |||
Three months ended | Three months ended | |||||
December 31, 2024 | December 31, 2023 | |||||
Unaudited | Unaudited | |||||
Reconciliation of net income (loss) attributable to Nutex Health Inc. to | ||||||
Net income (loss) attributable to Nutex Health Inc. | $ | 61,695,604 | $ | (31,617,897) | ||
Depreciation and amortization | 5,280,488 | 4,682,724 | ||||
Interest expense, net | 5,052,081 | 4,236,553 | ||||
Income tax expense (benefit) | 8,608,746 | (2,998,554) | ||||
Allocation to noncontrolling interests | (2,195,888) | (2,045,390) | ||||
EBITDA | 78,441,031 | (27,742,564) | ||||
Loss on warrant liability | 536,264 | - | ||||
Stock-based compensation | 14,680,454 | 637,159 | ||||
Impairment of assets | (11,640) | 29,082,203 | ||||
Impairment of goodwill | - | 1,139,297 | ||||
Adjusted EBITDA | $ | 93,646,109 | $ | 3,116,095 | ||
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 24 facilities in 11 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.
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 year ended December 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.