BETHESDA, MARYLAND August 14, 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 People's Republic of China, today announced its second quarter and six month results including the first profitable quarterly results for its unique private hospital venture in Beijing.
Revenue for this year's second quarter was $9.5 million with net income of $116,000 or earnings per share of $0.15. This compares to revenue of $13.2 million with net income of $817,000 or earnings per share of $1.03 for the same period last year.
Revenue for this year's six-month period was $16.5 million with a net loss of $233,000 or a loss per share of $0.29. This compares to revenue of $22.7 million with net income of $1.1 million or earnings per share of $1.42 for the same period last year.
The Company noted that its current loan financing program guaranteed by the U.S. Export - Import Bank for the capital equipment portion of its Healthcare Products segment is nearing completion. Assuming all final approvals are received, shipments of the first traunche of the program are expected to begin later this year. The second traunche of contracts under the financing authorization will follow. The 1999 six-month results included $11.7 million in revenues from the Company's prior Ex-Im financing transaction.
For the first period since its inception in 1997 the Company's Healthcare Services segment, composed of the operations of its Beijing United Family Hospital, reported an operating profit of $155,000 in the second quarter. The Company pioneered privatized healthcare in China with the opening of its unique foreign-invested hospital which is still the only such venture operating with Chinese government approval.
"With our Healthcare Services segment showing profitable results this quarter we have proved that our formula for private healthcare services in China works. We are very pleased to see Beijing United growing rapidly, and moving into profitability after just over two years of operations. The results have been improving significantly every quarter. We are expanding the operations of the current hospital and are well along in development plans for our next phase of investment in this segment of our business," noted Roberta Lipson, Chindex President and CEO.
"Our growth in
distribution to the hospital, retail pharmacy and logistics markets is
also continuing to accelerate rapidly. We have announced new agreements
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), Becton Dickinson (including hypodermic needles and syringes, infusion therapy systems, critical care systems, preanalytical solutions, and consumer healthcare products) 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 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.
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Financial Summary Attached