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NUTEX HEALTH REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS

1. Nutex Health's revenue soared 93.8% to $479.9 million in 2024. 2. Net income was $52.2 million, reversing a loss from 2023. 3. Arbitration contributed significantly, adding $169.7 million to revenue. 4. Adjusted EBITDA increased over 1,000% year-on-year to $123.7 million. 5. Company sees continued operational improvements and revenue growth.

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FAQ

Why Very Bullish?

NUTX's financial turnaround is significant, marked by increased revenue, profit margins, and EBITDA. Historical examples in the healthcare industry show that strong earnings can lead to a surge in stock prices, reflecting robust operational performance.

How important is it?

The significant revenue growth and positive earnings signals indicate strong operational health which can attract investors, reaffirming Nutex Health's market position.

Why Short Term?

The reported financial performance is likely to influence investor sentiment and stock price in the immediate future, similar to past earnings reports in the sector where rapid improvements led to quick stock upticks.

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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 , /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 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively 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 Adjusted EBITDA: 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. toAdjusted EBITDA: 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. SOURCE Nutex Health, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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