NUTEX HEALTH REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS

Yahoo

13-05-2025

TOTAL REVENUE OF $211.8 MILLION VERSUS $67.5 MILLION IN Q1 2024, AN INCREASE OF 213.8%
NET INCOME ATTRIBUTABLE TO NUTEX HEALTH INC. OF $14.6 MILLION VERSUS NET LOSS OF $0.4 MILLION IN Q1 2024
DILUTED EPS OF $2.56 PER SHARE VERSUS $(0.08) PER SHARE IN Q1 2024
EBITDA OF $43.1 MILLION VERSUS $7.1 MILLION IN EBITDA IN Q1 2024, AN INCREASE OF 507.0%
ADJUSTED EBITDA OF $72.8 MILLION VERSUS $(0.4) MILLION IN Q1 2024
NET CASH FROM OPERATING ACTIVITIES OF $51.0 MILLION
COMPANY BELIEVES ITS ARBITRATION EFFORTS THROUGH THE INDEPENDENT DISPUTE RESOLUTION (IDR) PROCESS HAVE RESULTED IN MORE FAIR AND REASONABLE PAYMENTS
HOUSTON, May 13, 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 first quarter 2025 financial results for the three months ended March 31, 2025.
Financial highlights for the three months ended March 31, 2025:
Total revenue increased $144.3 million to $211.8 million for the three months ended March 31, 2025 as compared to total revenue of $67.5 million for the same period in 2024, an increase of 213.8%. Revenue from mature hospitals, which are hospitals opened prior to December 31, 2022, increased by 186.5% in 2025 compared to 2024.
The arbitration process resulted in approximately $105.0 million more in revenue in the three months ended March 31, 2025 than the same period in 2024, which amounted to 73.1% of the $144.3 million revenue increase. Of the $105.0 million in arbitration revenue, $60.0 million, $26.0 million and $19.0 million related to dates of services for the first quarter 2025, fourth quarter 2024 and pre-fourth quarter 2024, respectively.
Total stock-based compensation expense for the three months ended March 31, 2025 was $36.1 million compared to less than $0.1 million for the same period in 2024. Approximately 99% of total stock-based compensation expense of $36.1 million is due to the one-time obligations for under-construction and ramping hospitals.
Operating income for the three months ended March 31, 2025 was $72.2 million compared to $1.5 million for the same period in 2024, representing a $70.7 million improvement year over year.
Net income attributable to Nutex Health for the three months ended March 31, 2025 of $14.6 million as compared to net loss attributable to Nutex Health of $0.4 million for the same period in 2024. The $14.6 million in net income includes non-cash stock-based compensation expense of $36.1 million, while the $0.4 million net loss includes no non-cash stock-based compensation expense.
EBITDA attributable to Nutex Health of $43.1 million, as compared to EBITDA attributable to Nutex Health of $7.1 million for the three months ended March 31, 2024, an increase of 507.0%.
Adjusted EBITDA attributable to Nutex Health of $72.8 million, as compared to Adjusted EBITDA attributable to Nutex Health of $(0.4) million for the three months ended March 31, 2024.
Total visits at the Hospital Division were 48,269 for the three months ended March 31, 2025, as compared to 40,068 for the same period in 2024, an increase of 8,201 or 20.5%. Visits at mature hospitals increased by 5.3% in the three months ended March 31, 2025 as compared to the same period in 2024.
Net cash from operating activities of $51.0 million for the three months ended March 31, 2025.
As of March 31, 2025, the Company had total assets of $761.9 million, including cash and cash equivalents of $87.7 million, and long-term debt of $21.7 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 excited to provide yet another solid quarter with $14.6 million in net income, a record high gross profit of 56%, a record high $51.0 million in net cash from operating activities and a record high cash balance of $87.7 million, highlighting the company's continued financial strength as we execute on our growth plan for 2025," stated Jon Bates, Chief Financial Officer of Nutex Health.
"In 2024, Nutex Health achieved significant operational improvements across all key metrics. Total hospital division visits increased by 20.5%, driven by higher ER acuity and an enhanced service mix, with greater focus on observation patients and inpatients. In 2025, we will continue optimizing operations and maintaining a lean cost structure to support sustained growth," said Josh DeTillio, Chief Operating Officer of Nutex Health.
"The great momentum that we started in 2024 is continuing into the first quarter of 2025. We are now seeing more consistent financial results stemming from a combination of volume growth and operational efficiency, with more fair and reasonable payments from the arbitration process. We still have a lot of work ahead of us, but the positive trend is very encouraging. We would like to thank our team of physicians and team members nationwide for working in alignment to get us to where we are this quarter," stated Tom Vo, M.D., MBA, Chairman and Chief Executive Officer of Nutex Health.
For more details on the Company's first quarter 2025 financial results, please refer to our Quarterly Report on Form 10-Q filed with the U.S. Securities & Exchange Commission and accessible at www.sec.gov.
NUTEX HEALTH INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)(In thousands, except share and per share amounts)March 31, 2025December 31, 2024
Assets
Current assets:
Cash and cash equivalents$
87,670$
43,581
Accounts receivable
295,082
232,449
Accounts receivable - related parties
4,258
3,602
Inventories
3,118
2,850
Prepaid expenses and other current assets
11,389
9,998
Total current assets
401,517
292,480
Property and equipment, net
76,431
77,933
Operating right-of-use assets
27,466
27,872
Finance right-of-use assets
216,193
218,889
Intangible assets, net
15,205
15,530
Goodwill, net
13,919
13,919
Deferred tax assets
10,487
7,987
Other assets
698
711
Total assets$
761,916$
655,321Liabilities and Equity
Current liabilities:
Accounts payable$
19,836$
9,614
Accounts payable - related parties
5,679
4,345
Lines of credit
7,126
3,554
Current portion of long-term debt
13,635
14,395
Operating lease liabilities, current portion
2,103
2,080
Finance lease liabilities, current portion
8,027
7,705
Accrued arbitration expenses
51,803
47,742
Accrued income tax expense
43,718
25,989
Accrued expenses and other current liabilities
24,639
25,442
Total current liabilities
176,566
140,866
Long-term debt, net
21,733
22,466
Operating lease liabilities, net
30,350
30,617
Finance lease liabilities, net
258,387
259,479
Total liabilities
487,036
453,428Commitments and contingencies (Note 9)Equity:
Common stock, $0.001 par value; 950,000,000 shares authorized; 5,528,448 and 5,511,452 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively
6
6
Additional paid-in capital
539,361
503,233
Accumulated deficit
(342,259)
(356,893)
Nutex Health Inc. equity
197,108
146,346
Noncontrolling interests
77,772
55,547
Total equity
274,880
201,893
Total liabilities and equity$
761,916$
655,321
NUTEX HEALTH INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)Three Months Ended March 31,
(In thousands, except share and per share amounts)20252024
Revenue:
Hospital division$
203,947$
60,029
Population health management division
7,842
7,424
Total revenue
211,789
67,453Operating costs and expenses:
Payroll
34,860
27,003
Contract services
38,655
11,319
Medical supplies
3,801
5,322
Depreciation and amortization
5,092
4,186
Other
11,043
9,466
Total operating costs and expenses
93,451
57,296 Gross profit
118,338
10,157Corporate and other costs:
Stock-based compensation
36,094
49
General and administrative expenses
10,035
8,658
Total corporate and other costs
46,129
8,707 Operating income
72,209
1,450Interest expense, net
6,120
4,444
Gain on warrant liability
-
(2,601)
Other (income) expense
3,325
(241)
Income (loss) before taxes
62,764
(152) Income tax expense
18,541
390Net income (loss)
44,223
(542) Less: net income (loss) attributable to noncontrolling interests
29,589
(178)Net income (loss) attributable to Nutex Health Inc.$
14,634$
(364)Income (loss) per common share:
Basic$
2.65$
(0.08)
Diluted$
2.56$
(0.08)
NUTEX HEALTH INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)Three Months Ended March 31,
(In thousands)20252024
Cash flows from operating activities:
Net income (loss)$
44,223$
(542)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization
5,092
4,186
Gain on warrant liability
-
(2,601)
Stock-based compensation expense
36,094
49
Deferred tax (benefit) expense
(2,500)
(95)
Debt accretion expense
253
365
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable
(62,633)
(2,909)
Accounts receivable - related party
(656)
(62)
Inventories
(268)
415
Prepaid expenses and other current assets
(1,378)
796
Operating right-of-use assets
406
273
Accounts payable
10,222
(1,681)
Accounts payable - related party
1,334
475
Operating lease liabilities
(245)
(376)
Accrued arbitration expenses
4,061
-
Accrued income tax expense
17,729
-
Accrued expenses and other current liabilities
(769)
4,758
Net cash from operating activities
50,965
3,051Cash flows from investing activities:
Acquisitions of property and equipment
(64)
(733)
Net cash from investing activities
(64)
(733)Cash flows from financing activities:
Proceeds from lines of credit
3,864
-
Proceeds from long-term debt
157
2,915
Repayments of lines of credit
(292)
(595)
Repayments of long-term debt
(1,810)
(4,388)
Repayments of finance leases
(1,367)
(968)
Proceeds from common stock issuance, net issuance costs
-
9,203
Members' distributions
(7,364)
(481)
Net cash from financing activities
(6,812)
5,686
Net change in cash, cash equivalents and restricted cash
44,089
8,004
Cash, cash equivalents and restricted cash - beginning of the period
43,581
22,002
Cash, cash equivalents and restricted cash - end of the period$
87,670$
30,006
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 and 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.
Beginning in the first quarter of 2025, we have updated our presentation of Adjusted EBITDA to separately disclose finance lease payments related to leases under ASC 842, which were previously included in interest expense, net and depreciation and amortization. We believe this change provides greater transparency into our operating performance.
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,
20252024
Reconciliation of net income (loss) attributable to Nutex Health Inc. to Adjusted EBITDA: (Updated) (Prior) (Updated) (Prior)
Net income (loss) attributable to Nutex Health Inc.$
14,634$
14,634$
(364)$
(364)
Depreciation and amortization
5,092
5,092
4,186
4,186
Interest expense, net
6,120
6,120
4,444
4,444
Income tax expense
18,541
18,541
390
390
Allocation to noncontrolling interests
(1,297)
(1,297)
(1,544)
(1,544)
EBITDA
43,090
43,090
7,112
7,112
Gain on warrant liability
-
-
(2,601)
(2,601)
Finance lease payments(1)
(6,363)
-
(4,972)
-
Stock-based compensation
36,094
36,094
49
49
Adjusted EBITDA$
72,821$
79,184$
(412)$
4,560(1) Finance lease payments consist of cash payments for financing leases under ASC 842, which should be deducted from EBITDA. We believe this change is useful to investors to evaluate the ongoing operating performance of our business.
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 December 31, 2024, and subsequent Quarterly Report on Form 10-Q for the three months ended March 31, 2025 under the heading "Risk Factors" in Part II, 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.