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BETHESDA, MARYLAND - April 1, 2002 - Chindex International, Inc. (NASDAQ: CHDX) (U.S.-China Industrial Exchange, Inc.), the leading independent American company providing Western healthcare products distribution and medical services in the People's Republic of China, today announced results for its year end and fourth quarter ended December 31, 2001. Celebrating its 20th year of operations in China, the Company earned $0.45 per share on a 25% increase in revenues from the prior year.
A last-minute delay in one hospital customer's receipt of necessary approvals from the Chinese Government delayed a portion of the Company's loan program shipments planned for the fourth quarter, negatively impacting the Company's results.
Revenue for the year 2001 was a record $56.1 million with a net profit of $384,000 or basic earnings per share of $0.45. This compares to revenue for the year 2000 of $45.1 million with a net profit of $641,000, or basic earnings per share of $0.79.
Revenue for the fourth quarter of 2001 was $18.8 million with a net profit of $475,000, or basic earnings per share of $0.55. This compares to revenue of $19.1 million with a net profit of $1.2 million, or basic earnings per share of $1.37 for the fourth quarter of 2000.
The Company's balance sheet as of December 31, 2001 showed cash and cash equivalents of $5.5 million, total assets of $33.3 million, a current ratio of 1.4:1 and shareholders' equity of $13.6 million.
Chindex Chairperson, President and CEO, Roberta Lipson, speaking from Beijing, commented on the results and year's performance:
"2001 was our 20th anniversary and it was both a challenging and successful year for Chindex. We are happy to report a significant increase in revenues over the prior year and a substantial profit on the bottom line. Healthcare Products increased 21% year to year, posting revenues of over $47 million. Healthcare Services increased 46% with nearly $9 million in revenues. The trends in both segments continue to be strong.
"In our capital medical equipment business our increased product portfolio has allowed us to access new market segments over the year. New technologies we are in the process of introducing in China now will provide the basis for our future revenue growth. Government- backed loan financing programs continue to be a main focus of our work in this division. We recently received a Letter of Intent for exports of up to $20 million from the U.S. Export-Import Bank. This is the first step in the loan financing process.
"The Products Distribution business in our Healthcare Products segment continued its rapid growth during the year. In 2001 it recorded revenue of over $21 million, up more than 72% over the prior year. This accounted for 45% of the segment revenue, up from 32% in 2000. We believe that we have only begun to tap the scalability of this business platform and are expecting continued significant growth in both the top and bottom line in the future.
"The profitability in our Healthcare Services segment more than doubled in 2001. Beijing United Family Hospital reported earnings of $476,000 on revenues of $8.8 million, up from earnings of $218,000 on revenues of $5.7 million in the prior year. During the year we completed a major renovation of the first floor of the hospital, allowing for the addition of a full- time emergency room and other new services. Beijing United continues to be the only private foreign invested hospital operating in Beijing.
"Our long term vision of the Chindex Healthcare Network - a series of affiliated and networked private United Family Hospitals based on the Beijing United model - is moving forward. We were very pleased to announce the Chinese Government approval of our second hospital, Shanghai United Family Hospital, late in 2001. The project in Shanghai is getting underway now and, subject to financing, we anticipate that the doors will open in early 2003," 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). It also provides healthcare services through the operations of its private hospital corporation in China.
With twenty years of experience, approximately 480 employees, and operations in the United States, China and Hong Kong, the Chindex 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 Chindex websites, www.chindex.com and www.beijingunited.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, and (iv) proposed new operations, including expansion of its healthcare services business. 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.
| U.S.-CHINA INDUSTRIAL EXCHANGE, INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| |
Three Months Ended December 31, |
|
Year Ended December 31, |
| |
2001 |
|
2000 |
|
2001 |
|
2000 |
|
| Total sales and service revenue |
|
$ |
18,864,000 |
|
$ |
19,132,000 |
|
$ |
56,118,000 |
|
$ |
45,064,000 |
|
| Cost and Expenses |
| Cost of goods sold |
|
13,451,000 |
|
13,580,000 |
|
38,426,000 |
|
30,529,000 |
|
| Salaries and payroll taxes |
|
2,854,000 |
|
2,334,000 |
|
10,091,000 |
|
7,777,000 |
|
| Travel and entertainment |
|
721,000 |
|
707,000 |
|
10,091,000 |
|
1,897,000 |
|
| Other |
|
2,011,000 |
|
1,457,000 |
|
5,863,000 |
|
4,709,000 |
|
| Total Costs and Expenses |
|
19,037,000 |
|
18,078,000 |
|
56,519,000 |
|
44,912,000 |
|
| Income/(loss) from operations |
|
( |
173,000 |
) |
|
1,054,000 |
|
( |
401,000 |
) |
( |
152,000 |
) |
| Minority Interest |
|
( |
4,000 |
) |
( |
5,000 |
) |
( |
18,000 |
) |
( |
36,000 |
) |
| Other income and (expenses) |
| Interest expense |
|
( |
4,000 |
) |
( |
19,000 |
) |
( |
13,000 |
) |
( |
94,000 |
) |
| Interest income |
|
56,000 |
|
90,000 |
|
161,000 |
|
200,000 |
|
| Miscellaneous income - net |
|
264,000 |
|
76,000 |
|
578,000 |
|
558,000 |
|
| Income before income taxes |
|
139,000 |
|
1,196,000 |
|
307,000 |
|
780,000 |
|
| Provision for income taxes |
|
336,000 |
|
( |
20,000 |
) |
|
77,000 |
|
( |
139,000 |
) |
| Net income/(loss) |
|
$ |
475,000 |
|
$ |
1,176,000 |
|
$ |
384,000 |
|
$ |
641,000 |
|
| Net income per common share - basic |
|
$ |
0.55 |
|
$ |
1.38 |
|
$ |
0.45 |
|
$ |
0.79 |
|
| Weighted average shares outstanding - basic |
|
851,069 |
|
851,069 |
|
851,069 |
|
808,722 |
|
| Net income per common share - diluted |
|
$ |
0.52 |
|
$ |
1.37 |
|
$ |
0.42 |
|
$ |
0.76 |
|
| Weighted average shares outstanding - diluted |
|
921,927 |
|
861,069 |
|
921,927 |
|
838,716 |
|
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