BETHESDA, MARYLAND March 30, 2000 - 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 Peoples Republic of China, today announced results for its year end and fourth quarter ended December 31, 1999. With record revenues, the Company reported $0.49 earnings per share, capping a dramatic two year turnaround program.
Revenue for the year 1999 was a record $37.1 million with a net profit of $392,000, or earnings per share of $0.49. This compares to revenue for the year 1998 of $21.6 million with net loss of $2.0 million or a loss per share of $2.58.
Revenue for the fourth quarter of 1999 was $7.5 million with a net loss of $287,000, or a loss per share of $0.36. This compares to revenue of $9.8 million with a net profit of $776,000, or earnings per share of $0.98 for the fourth quarter of 1998.
The Companys balance sheet as of December 31, 1999 showed cash and cash equivalents of $4.9 million, total assets of $24.4 million, a current ratio of 1.7:1 and shareholders equity of $12.6 million.
Chindex Chairperson, President and CEO, Roberta Lipson, speaking from Beijing, commented on the turnaround results and the growth of Chindex business: "Our profitable results for 1999 cap a two year turnaround program at Chindex. During the year we not only achieved a 72% growth in revenues to over $37 million but showed healthy profitability at $0.49 per share.
"In our healthcare products segment we achieved revenue growth of 68% over the prior year. In our healthcare services segment the revenue growth was an impressive 112% . While we have had and will continue to have quarterly fluctuations due to the nature of medical capital equipment sales, we are now beginning to see the benefits of the investment strategy we have executed over the past several years. We are very proud of our performance in 1999. We are at the forefront of healthcare development in China.
"During 1999 we completed shipments of nearly $12 million of medical capital equipment under our $14 million loan program guaranteed by the U.S. Export-Import Bank. In 2000, assuming all final approvals are forthcoming, we are planning to begin shipments under our next round of
Ex-Im backed loan financing for the export of up to $30 million of U.S. medical equipment. Approximately half of this total program is currently scheduled to ship during 2000.
"We have effectively established these loan programs as an ongoing component of our healthcare products business in medical capital equipment . We are now working on our third Ex-Im backed financing. These projects are based on active support and cooperation by both Chinese and American government organizations. We were the first American company to have successfully completed such a loan program for medical equipment in China, and now, working on our third project, we are still one of only two companies to have completed such loans.
"It is encouraging for all of us that our 1999 results showed significant contributions from the developing healthcare services and healthcare products distribution business units. This demonstrates the growing success of our strategy of long term expansion of our healthcare businesses. We believe we will see significantly increasing contributions to corporate results from these new operations as they mature and grow rapidly in the years to come.
"Our healthcare products distribution business grew substantially during the year, accounting for nearly 20% of our healthcare products segment revenues. This growth was spread over three different markets, namely, hospital, retail pharmacy and third party logistics. As we move forward we are focusing on growth in our interventional cardiology product offerings to the hospital markets as well as continuing rapid expansion of our distribution pipeline in retail pharmacies, and third party logistics services in the healthcare field.
"Healthcare Services revenue from our private hospital, Beijing United Family Hospital, also surpassed our expectations showing impressive growth and accounting for 11% of our consolidated revenues. During the year the hospital began to broaden its financial base, expanded its clinical service offerings and initiated marketing campaigns aimed at the affluent local Chinese marketplace. We are currently working on the next phases of expansion at Beijing United as well as future growth programs in privatized healthcare."
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 Acuson (diagnostic ultrasound scanners), Johnson & Johnson (clinical chemistry analyzers), Guidant (interventional cardiology products including stents, balloon catheters, and guide wires) and Tyco/Kendall Healthcare Products (including brands such as Davis & Geck, Sherwood, Kendall, Sheridan, and Curity). It also provides healthcare services through the operations of its private hospital corporation in China. With nearly twenty years of experience, approximately 330 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.
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 Companys (i) performance goals, including successful conclusion of efforts to secure government-backed financing, (ii) future events and earnings, including revenues from the Companys developmental businesses such as healthcare services, (iii) markets, including growth in demand in China for the Companys 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.
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