| |
|
BETHESDA, MARYLAND - May 15, 2002 - Chindex International, Inc. (NASDAQ: CHDX) (U.S.-China Industrial Exchange, Inc.), the leading independent American company providing Western healthcare products and medical services in the People's Republic of China, today announced results for its first quarter ended March 31, 2002.
Revenue for the first quarter of 2002 was $15.6 million with a net loss of $192,000 or a loss per share of $0.23. This compares to revenue of $10.6 million with a net profit of $25,000 or earnings per share of $0.03 for the first quarter of 2001.
"Our business operates on a 12 month basis and the first quarter results need to be viewed in that context. We have in the past and will continue to see period to period fluctuations in our results. We are pleased with the growth in our consolidated revenues of 47% over the prior year. Healthcare Services continued to show substantial increases in revenue and profitable results as it expands its facilities at Beijing United Family Hospital this year. During the expansion process we are experiencing the loss of other income we earned subleasing this space at the hospital previously. We anticipate that increased revenues from the use of this space later in the year will offset these early losses. Capital Medical Equipment delivered the $2 million in loan financing shipments delayed in the previous quarter and began preparation for the next loan program shipments estimated at approximately $7 million. However, the equipment business was negatively impacted by competitive pricing pressures which significantly affected operating results for the quarter. In particular, the Chinese government tendering regulations have impacted our profitability in large portions of our capital equipment portfolio. Products Distribution continued its steady improvement with revenue increases of 41% over the period. Development programs for the year in the Retail Pharmacy and Hospital Products business units are being implemented nationally with excellent initial results. Additionally, all of our business units posted increased salary expenses beginning this quarter, due largely to benefits mandated by the Chinese government," Roberta Lipson, President and CEO of Chindex commented from Beijing.
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 website, 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
March 31, |
| |
2002 |
|
2001 |
|
| Total sales and service revenue |
|
$ |
15,578,000 |
|
$ |
10,606,000 |
|
| Cost and Expenses |
| Cost of goods sold |
|
10,922,000 |
|
6,949,000 |
|
| Salaries and payroll taxes |
|
3,043,000 |
|
2,176,000 |
|
| Travel and entertainment |
|
437,000 |
|
341,000 |
|
| Other |
|
1,469,000 |
|
1,210,000 |
|
| Loss from operations |
|
( |
293,000 |
) |
( |
70,000 |
) |
| Minority Interest |
|
0 |
|
( |
5,000 |
) |
| Other income and (expenses) |
| Interest expense |
|
( |
4,000 |
) |
( |
2,000 |
) |
| Interest income |
|
15,000 |
|
44,000 |
|
| Miscellaneous income - net |
|
( |
23,000 |
) |
|
162,000 |
|
| Total Other (Expenses)/Income |
|
( |
12,000 |
) |
|
199,000 |
|
| (Loss)/Income Before Provision for Income Taxess |
|
( |
305,000 |
) |
|
129,000 |
|
| Provision for income taxes |
|
113,000 |
|
( |
104,000 |
) |
| Net (Loss)/Income |
|
($ |
192,000 |
) |
|
25,000 |
|
| Net (Loss)/Income per basic and diluted common share |
|
($ |
0.23 |
) |
$ |
0.03 |
|
| Weighted average shares outstanding |
|
852,264 |
|
851,069 |
|
|
