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Nov 14, 02 - CHINDEX INTERNATIONAL, INC. Announces 3rd Quarter and Nine Month Results;. Revenue Increases Fuel $0.19 Per Share Quarterly Earnings;.
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Announces 3rd Quarter and Nine Month Results;
Revenue Increases Fuel $0.19 Per Share Quarterly Earnings;
Corrects Prior Quarter’s Mathematical Calculation Error

BETHESDA, MARYLAND (November 14, 2002) . . . 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.

Revenue for this year's third quarter was $17.8 million with net income of $176,000 or earnings per basic share of $0.19. This compares to revenue of $13.4 million with net income of $109,000 or earnings per basic share of $0.13 for the same period last year.

Revenue for this year’s nine-month period was $48.3 million with a net loss of $428,000 or a loss per share of $0.49. This compares to revenue of $37.3 million with a net loss of $91,000 or a loss per share of $0.11 for the same period last year.

The Company noted that for the past twenty-one years its business has operated on an annualized basis. Historical operating results have varied significantly from period to period. These fluctuations are expected to continue due to the nature of the Capital Medical Equipment segment of the Company’s business.

Roberta Lipson, Chindex President and CEO commented on the Company’s quarterly results and growth trends:

“We were pleased to see net income of $176,000 as well as pre-tax earnings of $400,000 in the quarter based on strong revenue growth and aggressive expense containment from each of our business segments. During this quarter our Capital Medical Equipment segment shipped $3.3 million in government backed loan program sales which was the basis of a 19% increase in quarterly revenue over the prior year. We are continuing to move forward with the loan program sales and expect more such revenue this year. The Healthcare Products Distribution segment saw revenues increase by 38% to $6.9 million in the quarter over the prior year. Our development programs in the retail pharmacy and hospital markets are proceeding. We are selling more products in more pharmacies and more hospitals each month.

“The Healthcare Services segment also had a strong quarter with revenues of $3.1 million, a 61% increase over the prior year. We have continued to invest through the year in the expansion of the Beijing United Family Hospital facility. We have also secured the initial funding for our next hospital, Shanghai United Family Hospital, and the architectural design work for that facility is nearly completed,“ Lipson concluded.

The Company also reported that due to a recently discovered single computation error in its second quarter financial statements it has corrected its financial statements for the second quarter and six months ended June 30, 2002 and filed an amended form 10Q. A tax entry of $102,000 was added rather than subtracted. The correction resulted in the company’s results for the second quarter and six months being adjusted from a net loss of $207,000 to a net loss of $411,000 and from a net loss of $399,000 to a net loss of $603,000 respectively.

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 more than twenty years of experience, over 500 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, and

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.

  Three Months Ended   Six months ended
  September 30,   September 30,
  2002   2001   2002   2001
Total sales and service revenue     $ 17,801,000       $ 13,447,000       $ 48,347,000       $ 37,254,000  
Cost and Expenses                                        
  Cost of goods and services sold       11,440,000         9,040,000         32,357,000         24,975,000  
  Salaries and payroll taxes       3,392,000         2,559,000         9,890,000         7,237,000  
  Travel and entertainment       670,000         544,000         1,647,000         1,418,000  
  Other       1,796,000         1,256,000         4,840,000         3,852,000  
Income (loss) from operations       503,000         48,000     (   387,000 )   (   228,000 )
Minority Interest   (   6,000 )   (   5,000 )   (   29,000 )   (   14,000 )
Other (expenses) and income                                        
  Interest expense   (   16,000 )   (   5,000 )   (   27,000 )   (   9,000 )
  Interest income       7,000         24,000         34,000         105,000  
  Miscellaneous (expenses) income - net   (   88,000 )       116,000     (   109,000 )       314,000  
Income (Loss) before income taxes       400,000         178,000     (   518,000 )       168,000  
(Provision for) benefit from income taxes   (   224,000 )   (   69,000 )       90,000     (   259,000 )
Net income (loss)     $ 176,000       $ 109,000     ( $ 428,000 )   ( $ 91,000 )
Net income (loss) per common share - basic     $ 0.19       $ 0.13     ( $ 0.49 )   ( $ 0.11 )
Weighted average shares outstanding - basic       917,429         851,069         876,601         851,069  
Net (loss) income per common share - diluted     $ 0.18         0.12     ( $ 0.49 )   (   0.11 )
Weighted average shares outstanding - diluted       958,730         886,392         876,610         851,069  

Copyright © 2002 Chindex International, Inc. All Rights Reserved