Nutex Health Inc. Q2 FY2024 earnings call

• Company Overview: Nutex Health was founded in 2011, operates 21 micro-hospitals in 9 states, focusing on mid-acuity care. Patients have high satisfaction with Google reviews averaging 4.8+. Engaged physicians and staff lead to low turnover.
• Q2 2024 Results: Overall hospital visits up 28% vs prior year. Same-store mature hospital billable visits up 10.3%. Observation visits up 34%, inpatient up 52%. 4 new hospitals under construction, expected to open in 6-12 months. Divested population health subsidiaries, resulting in non-cash impairments of $3.5M (assets) and $3.2M (goodwill).
• Operational Focus: Volume growth via business development, CRM software, community events, marketing. Shift to inpatient and observation volumes. Cost management: Labor (new HR software), supplies (pricing alignments with GPO), contract services (renegotiations).

Hospital Division: Total revenue for the second quarter of 2024 grew 29% to $76.1 million compared to $58.9 million in Q2 2023. Mature hospitals (open prior to Dec 31, 2021) saw revenue increase by 13.2%. Hospital division visits rose 28%, with same-store mature hospitals having a 10.3% increase in total billable visits. Population Health Division: Revenue grew 15.9% to $8.5 million in Q2 2024 from $7.3 million in Q2 2023, despite divestitures of two small entities. Over the first six months of 2024, population health revenue was $15.9 million, up 10.8% from $14.4 million in the same period of 2023.

• New Hospitals: 4 new hospitals under construction, anticipate opening in 6-12 months; beyond 2025, project 1-3 new hospitals per year.
• Population Health: Divestitures of cash-burning subsidiaries expected to enhance net income and EBITDA from September.
• Seasonality: Volume picks up from August, benefits from flu season, COVID, etc., in Q4.

• Staffing: While Nutex has low turnover, staffing issues are a challenge in large hospital systems.
• Insurance Arbitration: Success rate in arbitration not guaranteed, but expecting potential incremental revenue.
• Seasonality: Volume fluctuations with summer lulls and post-summer increases.

Q: About population health performance A: Warren discussed population health growth, IPA performance in LA and Houston, divestiture of cash-burning subsidiaries, expecting enhanced net income and EBITDA from September Q: About balance sheet debt A: Jon explained that total bank equity type debt decreased from $42.4M in Dec 2023 to $40.9M in Jun 2024, clarifying right of use liabilities are not real operating debt Q: About back half seasonality A: Tom noted volume drops in summer, picks up from August, and benefits from flu season, COVID, etc., in Q4