Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nutex Health Inc (NUTX, Financial) reported a significant revenue growth of 26% in the third quarter of 2024, reaching $78.8 million compared to $62.7 million in the same period last year.
- The company achieved a substantial increase in adjusted EBITDA, which rose by 938% to $13.5 million from $1.3 million in the previous year.
- Nutex Health Inc (NUTX) successfully opened four new hospitals in 2023, contributing to the positive revenue trend and demonstrating effective expansion strategies.
- The hospital division saw a 11.3% increase in patient visits, indicating strong demand and effective patient engagement strategies.
- Operational efficiency improvements led to a gross profit increase of 210% in the third quarter of 2024 compared to the same period in 2023.
Negative Points
- Nutex Health Inc (NUTX) reported a net loss of $8.8 million for the third quarter of 2024, which is higher than the $5.5 million loss in the same quarter of 2023.
- The company faced a $6.7 million non-cash loss on warrant liability and a $2 million non-cash stock-based compensation expense, impacting net income negatively.
- Population Health Management division experienced a revenue decline due to the divestiture of two smaller entities, affecting the overall revenue mix.
- Finance lease liabilities increased from $213 million to $241 million, primarily due to new leases for recently opened facilities.
- Challenges with the No Surprises Act (NSA) claims and arbitration processes continue to impact reimbursement rates and financial outcomes.
Q & A Highlights
Q: Can you discuss the seasonality of patient visits and the timing of the two new hospital openings in the fourth quarter?
A: Thomas Vo, CEO: Our business does have seasonality, with higher volumes typically in the fourth quarter due to flu season, which continues into the first quarter. The two new hospitals are projected to open in November and December.
Q: What is the outlook for CapEx given your expansion plans?
A: Jon Bates, CFO: We anticipate CapEx to increase as we open new facilities. We have two more hospitals planned for this year and expect to maintain a pace of 2 to 4 new hospitals annually, which will require additional equipment investments.
Q: Can you provide an update on the NSA arbitration process and its impact on revenue?
A: Thomas Vo, CEO: The arbitration process is progressing well, with a typical completion time of about six months. Industry data shows a 70% to 80% win rate for providers, and we expect similar outcomes. We should have more concrete results by the first and second quarters of next year.
Q: Are there any potential delays in the hospital openings due to external factors?
A: Thomas Vo, CEO: The November opening is on track, but the December opening in Florida may face slight delays due to a recent hurricane. However, we remain optimistic about opening by the end of the year.
Q: What new services are you planning to introduce to drive patient volume?
A: Thomas Vo, CEO: We are always innovating based on community needs. We are exploring services like personal injury care, wellness programs, and more procedures at our hospitals. Our ability to pivot allows us to address specific community demands effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
