BETHESDA, MARYLAND March 30, 2001 - 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 results for its year end and fourth quarter ended December 31, 2000. With another year of record revenues, the Company reported $0.76 earnings per share, continuing its strong growth trend.
Revenue for the year 2000 was a record $45.1 million with a net profit of $641,000, or earnings per share of $0.76. This compares to revenue for the year 1999 of $37.1 million with net profit of $392,000, or earnings per share of $0.49.
Revenue for the fourth quarter of 2000 was $19.1 million with a net profit of $1.2 million, or earnings per share of $1.37. This compares to revenue of $7.5 million with a net loss of $287,000, or a loss per share of $0.36 for the fourth quarter of 1999.
The The Company’s balance sheet as of December 31, 2000 showed cash and cash equivalents of $3.8 million, total assets of $36.5 million, a current ratio of 1.4:1 and shareholders’ equity of $13.2 million.
Chindex Chairperson, President and CEO, Roberta Lipson, speaking from Beijing, commented on the strong growth trend in all segments of Chindex business: "Our strategy of long term investment in new healthcare businesses in China is paying off. As we move forward in 2001 and beyond we believe we will continue to see the strong upward trends continue and accelerate as these business platforms mature and achieve planned efficiencies of scale. In 2000 our Healthcare Products segment achieved 18% growth in revenues over the prior year and Healthcare Services achieved 52% growth.
"Sales of capital medical equipment in the Healthcare Products segment in 2000 was again highlighted by substantial shipments under our loan program, which we have designed for our customers and is guaranteed by the U.S. Export-Import Bank. Of our total capital equipment sales of over $26 million this year, approximately $9 million was delivered under Ex-Im loan financing, with the program continuing in 2001. Our loan financing facilities have become an established component of our equipment business.
"We are pleased to note that when Siemens acquired one of our principal clients, Acuson, in late 2000, Chindex was retained as the exclusive distributor for the entire color doppler ultrasound platform, including the existing Siemens systems. This will provide a significantly expanded ultrasound product portfolio for us going forward.
"Our Healthcare Products segment also includes our fast-growing distribution business. In 2000 this business unit saw sales of over $12 million or a full 32% of the total revenue for the segment and growth over the prior year of over 100%. Our investment over the past several years has set the stage for this caliber of rapid increase in this business which provides products and services to the hospital, retail pharmacy and third party logistics markets. In 2001 we will continue our aggressive investment in the growth of this new business with new product offerings to the hospital markets, the launch of Summer’s Eve brand of feminine hygiene products to the retail pharmacy markets, and the expansion of our third party logistics services to include other multinational clients in the healthcare industry.
"Our Healthcare Services segment reported its first profitable year in 2000. Beijing United Family Hospital posted earnings of $218,000 for the year. While one would normally expect a new startup hospital to show losses on operations for five or more years, our facility has achieved profitability in just three years. We are currently developing plans for the expansion of the physical facility at Beijing United to triple the number of beds over the next two years. While Beijing United has been the flagship center for international-standard healthcare services in Beijing for the expatriate community since its inception, we are happy to report that in 2000 we began marketing our services more directly to the local Chinese population and have seen a steady increase in business from those efforts. We expect that trend to continue into 2001," Lipson concluded.
Chindex is the leading independent 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, a Siemens company, (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, and Curity). It also provides healthcare services through the operations of its private hospital corporation in China. With twenty years of experience, approximately 370 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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