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BETHESDA,
MARYLAND - February 8, 2008
- Chindex International, Inc. (NASDAQ: CHDX), an independent American
provider of Western healthcare services and products in the People's
Republic of China, today announced profitable results for the quarter
and nine months ended December 31, 2007, including a 473% increase
and a 206% increase respectively, in net income.
Revenue
for the quarter ended December 31, 2007 was $36.0 million, a 19% increase
over revenue of $30.3 million in the quarter ended December 31, 2006.
Net income from continuing operations for the quarter ended
December 31, 2007 was $3.9 million, or earnings per basic share on
continuing operations of $0.50. This compares to a net income from
continuing operations of $0.7 million, or earnings per basic share
on continuing operations of $0.10 for the quarter ended December 31,
2006.
Revenue
for the nine months ended December 31, 2007 was $95.4 million, a 17%
increase over revenue of $81.2 million in the nine months ended December
31, 2006. Net income from continuing operations for the nine months
ended December 31, 2007 was $6.3 million, or earnings per basic share
on continuing operations of $0.85. This compares to a net income from
continuing operations of $2.3 million, or earnings per basic share
on continuing operations of $0.34 for the nine months ended December
31, 2006.
As
a result of an equity financing transaction entered into during the
quarter, the Company's balance sheet as of December 31, 2007 strengthened
to show cash, cash equivalents and restricted cash of $58.0 million,
total assets of $115.1 million, a current ratio of 3.3:1 and stockholders'
equity of $49.2 million.
Roberta
Lipson, Chindex CEO commented on the results for the quarter: "Our
continuing top and bottom line performance on a consolidated basis
this quarter was again led by an increase in the profitability of
our Healthcare Services division. This was fueled by continued growth
in inpatient and outpatient results in both the Beijing and Shanghai
markets. Our development program for new United Family Healthcare
facilities in Guangzhou and Beijing is entering a new phase. Since
our last quarterly report, we have completed a series of equity and
debt financings that will provide us with $105 million in total financing.
We are currently implementing our market entry program in Guangzhou
with the commencement of construction of an outpatient clinic center,
and moving forward the initial phases of our main hospital facility
development program. We were also pleased to announce our active participation
in programs related the Olympics to be held in Beijing this summer."
"The
Medical Products division reported profitable results for the quarter
due to strong performance in imaging and surgical product categories.
The market issues which have been impacting us over the past several
quarters have not abated completely, however the pent up demand for
imported medical devices which has been accumulating over the past
two years is driving sales throughout the country now. Our outlook
for the Medical Products division continues to be optimistic. We believe
the conditions are aligned for continuing good performance in this
division in the future."
About Chindex International, Inc.
Chindex
is an American healthcare company that provides healthcare services
and supplies medical capital equipment, instrumentation and products
to the Chinese marketplace, including Hong Kong. It provides healthcare
services through the operations of its United Family Hospitals and
Clinics, a network of private primary care hospitals and affiliated
ambulatory clinics in China. The Company's hospital network currently
operates in the Beijing and Shanghai metropolitan areas. The Company
sells medical products manufactured by various major multinational
companies, including Siemens AG, which is the Company's exclusive
distribution partner for the sale and servicing of color doppler ultrasound
systems. It also arranges financing packages for the supply of medical
products to hospitals in China utilizing the export loan and loan
guarantee programs of both the U.S. Export-Import Bank and the German
KfW Development Bank. With twenty-six years of experience, 1,000 employees,
operations in mainland China and Hong Kong, offices in the United
States and Germany, the Company's strategy is to expand its cross-cultural
reach by providing leading edge healthcare technologies, quality products
and services to Greater China's professional communities. Further
company information may be found at the Company's websites, www.chindex.com
and www.unitedfamilyhospitals.com.
Statements made in this press release relating to plans, strategies,
objectives, economic performance and trends and other statements that
are not descriptions of historical facts may be forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking
information is inherently subject to risks and uncertainties, and
actual results could differ materially from those currently anticipated
due to a number of factors, which include, but are not limited to,
the factors set forth under the heading "Risk Factors" in our
annual report on Form 10-K for the year ended March 31, 2007, updates
and additions to those "Risk Factors" in our interim reports
on Form 10-Q, Forms 8-K and in other documents filed by us with the
Securities and Exchange Commission from time to time. Forward-looking
statements may be identified by terms such as "may", "will",
"should", "could", "expects", "plans", "intends",
"anticipates", "believes", "estimates", "predicts",
"forecasts", "potential", or "continue" or similar
terms or the negative of these terms. Although we believe that the
expectations reflected in the forward-looking statements are reasonable,
we cannot guarantee future results, levels of activity, performance
or achievements. We have no obligation to update these forward-looking
statements.
#
# # #
Financial
Summary Attached
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
(thousands
except share and per share data)
(Unaudited)
|
Three
months ended
December
31, |
Nine
months ended
December
31, |
2007
|
2006
|
2007 |
2006
|
Product
sales |
$18,316 |
$17,628
|
$47,079 |
$46,115
|
Healthcare
services revenue |
17,695 |
12,716
|
48,355 |
35,124
|
Total
revenue |
36,011 |
30,344
|
95,434 |
81,239
|
|
|
|
|
|
Cost
and expenses |
|
|
|
|
|
Product
sales costs |
13,131 |
13,700
|
34,417 |
34,949
|
|
Healthcare
services costs |
13,724 |
11,023
|
37,693 |
30,020
|
|
Selling
and marketing expenses |
3,153 |
2,619
|
8,619 |
7,205
|
|
General
and administrative expenses |
2,069 |
1,828
|
6,792
|
5,359
|
Income
from continuing operations |
3,934 |
1,174
|
7,913 |
3,706
|
Other
(expenses) and income |
|
|
|
|
|
Interest
expense |
(198) |
(185)
|
(573)
|
(571)
|
|
Interest
income |
358 |
64
|
500 |
188
|
|
Miscellaneous
(expense) income - net |
(124) |
(7)
|
(171)
|
(2)
|
Income
from continuing operations before income taxes |
3,970 |
1,046
|
7,669 |
3,321
|
Provision
for income taxes |
(76) |
(367)
|
(1,328)
|
(987)
|
Net
income from continuing operations |
3,894 |
679
|
6,341 |
2,334
|
Loss
from discontinued operations |
0 |
0
|
(0)
|
(264)
|
| Net
income |
$3,894 |
$679
|
$6,341 |
$2,070
|
Net
income (loss) per common share - basic |
|
|
|
|
Continuing
operations |
$
.50 |
$
.10 |
$
.85 |
$
.34 |
Discontinued
operations |
(.00)
|
(.00)
|
(.04)
|
(.04)
|
Net
income (loss) |
$
.50 |
$
.10 |
$
.85 |
$
.30 |
Weighted
average shares outstanding - basic |
7,722,607 |
6,880,642
|
7,463,346 |
6,787,848
|
|
|
|
|
|
Net
income (loss) per common share - diluted |
|
|
|
|
Continuing
operations |
$
.42 |
$
.09 |
$
.73 |
$
.31 |
Discontinued
operations |
(.00)
|
(.00)
|
(.00)
|
(.04)
|
Net
income (loss) |
$
.42 |
$
.09 |
$
.73 |
$
.27 |
Weighted
average shares outstanding - diluted |
9,417,565 |
7,609,578
|
8,691,892 |
7,611,422
|
CHINDEX
INTERNATIONAL, INC.
CONSOLIDATED
CONDENSED BALANCE SHEETS
(thousands
except share data)
(Unaudited)
|
December
31, 2007
(Unaudited) |
March
31, 2007 |
ASSETS
|
Current
assets: |
| |
Cash
and cash equivalents |
$56,358 |
$9,106 |
|
Restricted
cash |
1,640 |
1,590 |
| |
Trade
accounts receivable, less allowance for doubtful accounts of
$3,640 and $2,827, respectively |
|
|
| |
|
Products
sales receivables |
13,697 |
13,133 |
| |
|
Patient
service receivables |
7,686 |
6,104 |
| |
Inventories |
9,800 |
7,8351 |
| |
Deferred
income taxes |
3,659 |
2,463 |
|
Other
current assets |
3,682 |
3,153 |
| |
Total
current assets |
96,522 |
43,384 |
Property
and equipment, net |
17,342 |
18,482 |
Long-term
deferred income taxes |
95 |
607 |
Other
assets |
1,156 |
434 |
| |
Total
assets |
$115,115 |
$62,907 |
LIABILITIES
AND STOCKHOLDERS' EQUITY |
Current
liabilities: |
|
|
| |
Accounts
payable and accrued expenses |
|
$26,0925 |
$22,877 |
| |
Short-term
portion of capitalized leases |
|
33 |
36 |
| |
Short-term
debt and vendor financing |
|
1,038 |
2,710 |
|
Income
taxes payable |
|
2,142 |
629 |
| |
Total current
liabilities |
29,305 |
26,252 |
| |
Long-term portion
of capitalized leases |
|
33 |
58 |
| |
Long-term debt
and vendor financing |
|
36,594 |
8,679 |
| |
|
Total
liabilities |
65,932 |
34,989 |
| |
Commitments
and contingencies |
|
|
|
| |
Stockholders'
equity: |
|
|
|
| |
Preferred
stock, $.01 par value, 500,000 shares authorized, none issued
|
|
0
|
0
|
| |
Common
stock, $.01 par value, 28,200,000 shares authorized, including
3,200,000 designated Class B: |
|
|
|
| |
|
Common
stock -7,151,011 and 6,332,345 shares issued and outstanding
at December 31, 2007 and March 31, 2007 , respectively |
72 |
63 |
| |
|
Class
B stock -775,000 shares issued and outstanding at December 31,
2007 and March 31, 2007, respectively |
8
|
8
|
| |
Additional
paid in capital |
|
53,658 |
38,947 |
| |
Accumulated
other comprehensive income |
|
310 |
106 |
| |
Accumulated
deficit |
|
(4,865)
|
(11,206)
|
| |
Total
stockholders' equity |
|
49,183 |
27,918 |
| |
Total
liabilities and stockholders' equity |
|
$115,115 |
$
62,907 |
SEGMENT
INFORMATION
The
Company operates in two businesses: Healthcare Services and Medical
Products. The Company evaluates performance and allocates resources
based on profit or loss from operations before income taxes, not including
foreign exchange gains or losses. The following segment information
has been provided per Statement of Financial Accounting Standards
No. 131, "Disclosures about Segments of an Enterprise and Related
Information:"
|
Healthcare
Services |
Medical
Products |
Total
|
As
of December 31, 2007: |
|
|
|
Assets
|
$84,000,000
|
$31,115,000
|
$115,115,000
|
For
the three months ended December 31, 2007: |
|
|
Sales
and service revenue |
$17,695,000
|
$18,316,000
|
$36,011,000
|
Gross
Profit |
n/a
* |
5,185,000
|
n/a
|
Gross
Profit % |
n/a
* |
28%
|
n/a
|
Income
(loss) from continuing operations before foreign exchange |
$3,220,000
|
$197,000 |
$3,417,000
|
Foreign
exchange gain |
|
|
517,000
|
Income
from continuing operations |
|
|
$3,934,000
|
Other income,
net |
|
|
36,000 |
Income
from continuing operations before income taxes |
|
|
$3,970,000
|
|
Healthcare
Services |
Medical
Products |
Total
|
As
of March 31, 2007: |
|
|
|
Assets
|
$34,129,000
|
$28,778,000
|
$62,907,000
|
For
the three months ended December 31, 2006: |
|
|
Sales
and service revenue |
$12,716,000
|
$17,628,000
|
$302,344,000
|
Gross
Profit |
n/a
* |
3,928,000
|
n/a
|
Gross
Profit % |
n/a
* |
22%
|
n/a
|
Income
(loss) from continuing operations before foreign exchange |
$1,122,000
|
$(74,000)
|
$1,048,000
|
Foreign
exchange loss |
|
|
126,000
|
Income
from continuing operations |
|
|
$1,174,000
|
Other
(expense), net |
|
|
(128,000)
|
Income
from continuing operations before income taxes |
|
|
$1,046,000
|
|
Healthcare
Services |
Medical
Products |
Total
|
As
of December 31, 2007: |
|
|
|
Assets
|
$84,000,000
|
$31,115,000
|
$115,115,000
|
For
the nine months ended December 31, 2007: |
|
|
Sales
and service revenue |
$48,355,000
|
$47,079,000
|
$95,4349,000
|
Gross
Profit |
n/a
* |
12,662,000
|
n/a
|
Gross
Profit % |
n/a
* |
27%
|
n/a
|
Income (loss)
from continuing operations before foreign exchange |
$8,057,000
|
($1,003,000) |
$7,054,000
|
Foreign
exchange gain |
|
|
859,000
|
Income
from continuing operations |
|
|
$7,913,000
|
Other
(expense), net |
|
|
(244,000)
|
Income
from continuing operations before income taxes |
|
|
$7,669,000
|
|
Healthcare
Services |
Medical
Products |
Total
|
As
of March 31, 2007: |
|
|
|
Assets
|
$34,129,000
|
$28,778,000
|
$62,907,000 |
For
the nine months ended December 31, 2006: |
|
|
Sales
and service revenue |
$35,124000
|
$46,115,000
|
$81,239,000
|
Gross
Profit |
n/a
* |
11,166,,000
|
n/a
|
Gross
Profit % |
n/a
* |
24%
|
n/a
|
Income
from continuing operations before foreign exchange |
$3,405,000
|
$104,000 |
$3,509,000 |
Foreign
exchange gain |
|
|
197,000
|
Income
from continuing operations |
|
|
$3,706,000
|
Other
(expense), net |
|
|
(385,000)
|
Income
from continuing operations before income taxes |
|
|
$3,321,000 |
*
Gross profit margins are not routinely calculated in the healthcare
industry.
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