BETHESDA, MARYLAND (November 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 Peoples Republic of China, today announced its third quarter and nine month results..
Revenue for this year's third quarter was $9.4 million with a net loss of $302,000 or a loss per share of $0.38. This compares to revenue of $7.0 million with a net loss of $445,000 or a loss per share of $0.56 for the same period last year.
Revenue for this year’s nine-month period was $25.9 million with a net loss of $535,000 or a loss per share of $0.67. This compares to revenue of $29.6 million with net income of $678,000 or earnings per share of $0.86 for the same period last year.
Roberta Lipson, Chindex President and CEO commented on the Company’s results and plan for the remainder of 2000:
"Our current loan financing program guaranteed by the U.S. Export - Import Bank for the capital equipment portion of our Healthcare Products segment is nearly finished. We expect the Letter of Credit for the first tranche of this program to be opened shortly. Revenue shipments totaling approximately $11.5 million will begin immediately after that. In analyzing our results so far this year, it is important to remember that our 1999 nine-month results included $11.7 million in revenues from the Company’s prior Ex-Im financing transaction."
"The contributions to our results from our distribution business unit serving the hospital, retail pharmacy and logistics markets continues to grow each quarter. As we continue to roll out the investment and growth programs in these markets we expect the expansion to accelerate in the future. Our proven ability to attract new multinational clients in each area of our distribution services business shows that we can continue to grow our market share. This is one way we have been able to capitalize on our 20 years of on-the-ground experience in China. "
"We are also very pleased to see continued quarterly increases in profitability in our Healthcare Services segment. Last quarter we reported for the first time in its history an operating profit of $155,000 at our Beijing United Family Hospital. This quarter the results have improved significantly to an operating profit of $192,000. We continue to be the leaders in foreign-invested healthcare in China. Our plans both to expand the facilities and services of Beijing United as well as for the Chindex Healthcare Network program are moving forward," 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 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