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BETHESDA,
MARYLAND (February 12, 2004)
. . . Chindex International, Inc. (NASDAQ: CHDX), the leading independent
American company providing Western healthcare products distribution
and medical services in the People's Republic of China, today announced
its third quarter and nine month results for the period ending December
31, 2003.
Revenue
for this year's third quarter was $21.6 million with a net loss of
$383,000 or a loss per share of $0.10. This compares to revenue of
$22.3 million with net income of $687,000 or earnings per share of
$0.19 for the same period last year.
Revenue
for this year's nine-month period was $63.2 million with a net loss
of $1,503,000 or a loss per share of $0.40. This compares to revenue
of $55.0 million with net income of $451,000 or earnings per share
of $0.13 for the same period last year.
Roberta
Lipson, Chindex President and CEO, commented on the Company's quarterly
and nine month results from the Chindex offices in Beijing:
"Our
results were mixed across our three divisions in this quarter. In
the Healthcare Services division we were pleased to see the residual
operational challenges resulting from the SARS epidemic in Beijing
at our hospital, Beijing United Family Hospital and Clinics (BJU),
and the clinic in Shunyi county move fully into history. The three
month results for BJU and the clinic were strong and exceeded the
levels in the pre-SARS period. At Shanghai United Family Hospital
and Clinics (SHU), the construction work, including the redesigned
aspects as a result of SARS, is well underway.
Most
negatively impacted in the period was our Medical Capital Equipment
division, whose results this quarter were absent any loan program
revenues. These revenues accounted for a large portion of last year's
quarterly results. This was due to delays in finalizing the governmental
framework agreements between China and the United States that are
necessary for our loan programs to be executed. These framework agreements
are routine aspects of the bilateral trade relationship between China
and the U.S. We monitor the progress of the negotiations quite closely,
of course, and expect them to be finalized later this year. Once they
are in place, we will be able to move forward with our programs as
we have in the past. There are a significant number of projects in
process awaiting the availability of this credit program. At the same
time, we are in competition for the supply of medical equipment financed
using similar loan arrangements made available by the German export
credit agency. The goods are manufactured by our business partner,
Siemens, in Germany.
The
Healthcare Products Distribution division had profitable results and
increased gross margin, while seeing a slight decline in revenue,
for the period. This was the result of increased sales of higher margin
products and the decline in flow through revenue from one lower margin
logistics client during the period. The gross margin in the logistics
business is typically lower than in product sales. The product sales
in the retail pharmacy and hospital markets continued to increase
in line with our strategic planning for the year.
This
is an exceptional time in China and we have positioned ourselves to
share in China's projected growth. At the corporate level we have
continued our internal programs to invest prudently in the infrastructure
we need to continue our overall growth pattern over time. In particular
this year we have brought new IT systems online at the corporate and
hospital levels. These programs have added to our expense line in
the near term while preparing us well for increased returns in the
future. Chindex's success over many years has been based on our commitment
to the implementation of our strategic plan. We expect to experience
period to period fluctuations as we have in the past. We have historically
seen strong growth trends in our businesses over time and we believe
we are well positioned for the future," Lipson concluded.
Chindex
is a leading American company in healthcare in the Greater Chinese
marketplace including Hong Kong. It provides representative and distribution
services to a number of major multinational companies including Siemens
AG (diagnostic color ultrasound scanners under the Acuson and Siemens
brand names), Becton-Dickinson (including vascular access, infusion
and critical care systems), Johnson & Johnson (clinical chemistry
analyzers), and Guidant (interventional cardiology products including
stents, balloon catheters and guide wires). Its distribution channels
to the retail pharmacy industry in China have been developed through
a relationship with a major multinational cosmetics manufacturer.
It also provides healthcare services through the operations of its
private hospital corporation in China. With twenty-two years of experience,
over 600 employees, and operations in the United States, China and
Hong Kong, the Company's strategy is to expand its cross-cultural
reach by providing leading edge technologies, quality products and
services to Greater China's professional communities. Further company
information may be found at the Company's websites, www.chindex.com
and www.unitedfamilyhospitals.com.
The
statements in this press release that relate to future plans, events
or performance are forward-looking statements that involve risks and
uncertainties, including risks associated with uncertainties pertaining
to the Company's (i) performance goals, including successful conclusion
of efforts to secure government-backed financing, (ii) future events
and earnings, including revenues from the Company's developmental
businesses such as healthcare services, (iii) markets, including growth
in demand in China for the Company's products and services, (iv) proposed
new operations, including expansion of its healthcare services business,
(v) the impact of the SARS epidemic, including the recovery of delayed
or reduced sales, (vi) the timing of the opening of new hospital facilities,
and (vii) the availability of loan funds. Actual results, events and
performance may differ materially. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only
as of the date hereof. The Company undertakes no obligation to release
publicly the result of any revisions to these forward-looking statements
that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
#
# #
Financial
Summary Attached
| U.S.-CHINA INDUSTRIAL EXCHANGE,
INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| |
Three Months Ended
December 31,
|
|
Nine Months Ended
December 31,
|
| |
2003 |
|
2002 |
|
2003 |
|
2002 |
|
| Total sales and service revenue |
|
$ |
21.630,000 |
|
$ |
22,270,000 |
|
$ |
63,159,000 |
|
$ |
55,039,000 |
|
| Cost and expenses |
| Cost of goods services sold |
|
14,124,000 |
|
15,192,000 |
|
42,831,000 |
|
36,627,000 |
|
| Salaries and payroll taxes |
|
4,325,000 |
|
3,573,000 |
|
12,541,000 |
|
10,420,000 |
|
| Travel and entertainment |
|
844,000 |
|
954,000 |
|
2,060,000 |
|
2,164,000 |
|
| Other |
|
2,858,000 |
|
2,069,000 |
|
7,522,000 |
|
5,440,000 |
|
| (Loss) income from operations |
|
( |
521,000 |
|
|
482,000 |
|
( |
1,795,000 |
) |
( |
388,000 |
) |
| Minority Interest |
|
|
0 |
|
|
790,000 |
|
|
0 |
|
|
50,000 |
| Other (expenses) and income |
| Interest expense |
|
( |
67,000 |
) |
( |
27,000 |
) |
( |
186,000 |
) |
( |
50,000 |
) |
| Interest income |
|
10,000 |
|
25,000 |
|
39,000 |
|
44,000 |
|
| Miscellaneous income (expense) - net |
|
76,000 |
( |
22,000 |
) |
|
90,000 |
|
( |
108,000 |
) |
| (Loss) income before income taxes |
|
( |
502,000 |
) |
|
537,000 |
|
( |
1,852,000 |
) |
|
324,000 |
|
| Benefit from (provision for) income taxes |
|
119,000 |
|
|
150,000 |
|
|
349,000 |
|
|
127,000 |
|
| Net (loss) income |
|
$( |
383,000 |
) |
$ |
687,000 |
|
$( |
1,503,000 |
) |
$ |
451,000 |
|
| Net (loss) income per common share - basic |
|
$( |
0.10 |
) |
$ |
0.19 |
|
$( |
0.40 |
) |
$ |
0.13 |
|
| Weighted average shares outstanding - basic |
|
3,757,370 |
|
3,708,232 |
|
|
3,735,861 |
|
3,603,777 |
|
| Net (loss) income per common share - diluted |
$ |
0.10 |
$ |
0.19 |
|
$( |
0.40 |
)$ |
0.12 |
|
| Weighted average shares outstanding - diluted |
|
3,757,370 |
|
3,713,415 |
|
3,735,861 |
|
3,654,156 |
|
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