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BETHESDA, MARYLAND (November
11, 2003) . . . Chindex International, Inc. (NASDAQ: CHDX), 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
for the period ending September 30, 2003.
Revenue for this year's second quarter
was $21.2 million with net income of $219,000 or earnings per share
of $0.12. This compares to revenue of $17.8 million with net income
of $176,000 or earnings per share of $0.10 for the same period last
year.
Revenue for this year’s
six-month period was $41.5 million with a net loss of $1,120,000 or
a loss per share of $0.60. This compares to revenue of $32.8 million
with a net loss of $236,000 or a loss per share of $0.13 for the same
period last year.
Roberta Lipson, Chindex President
and CEO, commented on the Company’s quarterly results from the
offices of Beijing United Family Hospital:
“Although we anticipated a faster
recovery, business through the summer months continued to be impacted
by the SARS epidemic. It was not until the last month of the quarter
that we really regained momentum across all the business units of
the Company. Nonetheless we were pleased to report an increase in
earnings for the quarter over the prior year and growth in each our
business divisions.
In our Medical Capital Equipment
division, execution of sales contracts delayed during our first quarter
continued to be sluggish until mid-September. Both retail and hospital
sales from our Healthcare Products Distribution division showed similar
results. The hardest hit of all was our Healthcare Services division;
patient levels at Beijing United only returned to normal levels after
schools opened in September.
At Shanghai United Family Hospital, we took the opportunity presented
by SARS to reevaluate many aspects of our facility. As a result, a
number of design changes have been made, including the addition of
a fever clinic and changes in the HVAC system to provide for more
negative pressure rooms. While these changes have delayed our projected
opening date by several months, Shanghai United will open as the first
hospital in China to have fully integrated the lessons from SARS.
This is another significant testimonial to the fact that Chindex leads
the way in healthcare technologies in the Chinese healthcare services
industry.
Although SARS presented
us with unparalleled challenges in our business operations for the
past two quarters, this was balanced more significantly by the resulting
longer term opportunities for healthcare in China. We have done a
good job of regaining momentum and participating in some of these
new opportunities over the past three months. We have also continued
to pursue our strategic growth objectives in each business segment
and position ourselves to capitalize on the increased level of investment
being made in the Chinese healthcare system as a
result of SARS,” 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 Siemens AG (diagnostic color
ultrasound scanners under the Acuson and Siemens brand names), Becton-Dickinson
(including vascular access, infusion and critical care systems), Johnson
& Johnson (clinical chemistry analyzers), and Guidant (interventional
cardiology products including stents, balloon catheters and guide
wires). Its distribution channels to the retail pharmacy industry
in China have been developed through a relationship with a major multinational
cosmetics manufacturer. It also provides healthcare services through
the operations of its private hospital corporation in China. With
twenty-two years of experience, over 600 employees, and operations
in the United States, China and Hong Kong, the Company’s 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 Company’s websites,
www.chindex.com and www.unitedfamilyhospitals.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, (iv) proposed
new operations, including expansion of its healthcare services business,
(v) the impact of the SARS epidemic, including the recovery of delayed
or reduced sales; and (vi) the timing of the opening of new hospital
facilities. 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.
# # #
Financial
Summary Attached
| U.S.-CHINA INDUSTRIAL EXCHANGE,
INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| |
Three Months Ended
September 30,
|
|
Six Months Ended
September 30,
|
| |
2003 |
|
2002 |
|
2003 |
|
2002 |
|
| Total sales and service revenue |
|
$ |
21,155,000 |
|
$ |
17,801,000 |
|
$ |
41,529,000 |
|
$ |
32,769,000 |
|
| Cost and expenses |
| Cost of goods services sold |
|
14,003,000 |
|
11,440,000 |
|
28,707,000 |
|
21,435,000 |
|
| Salaries and payroll taxes |
|
3,883,000 |
|
3,392,000 |
|
8,217,000 |
|
6,847,000 |
|
| Travel and entertainment |
|
636,000 |
|
670,000 |
|
1,215,000 |
|
1,210,000 |
|
| Other |
|
2,180,000 |
|
1,796,000 |
|
4,664,000 |
|
3,371,000 |
|
| Income (loss) from operations |
|
|
453,000 |
|
|
503,000 |
|
( |
1,274,000 |
) |
( |
94,000 |
) |
| Minority Interest |
|
|
0 |
|
( |
6,000 |
) |
|
0 |
|
( |
29,000 |
) |
| Other (expenses) and income |
| Interest expense |
|
( |
63,000 |
) |
( |
16,000 |
) |
( |
119,000 |
) |
( |
23,000 |
) |
| Interest income |
|
14,000 |
|
7,000 |
|
29,000 |
|
19,000 |
|
| Miscellaneous (expense) income - net |
( |
27,000 |
) ( |
88,000 |
) |
|
14,000 |
|
( |
86,000 |
) |
| Income (loss) before income taxes |
|
|
377,000 |
|
|
400,000 |
|
( |
1,350,000 |
) |
( |
213,000 |
) |
| (Provision for) benefit from income taxes |
( |
158,000 |
) |
( |
224,000 |
) |
|
230,000 |
|
( |
23,000 |
) |
| Net income (loss) |
|
$ |
219,000 |
) |
$ |
176,000 |
|
$( |
1,120,000 |
) |
$( |
236,000 |
) |
| Net income (loss) per common share - basic |
|
$ |
0.12 |
|
$ |
0.10 |
|
$( |
0.60 |
) |
$( |
0.13 |
) |
| Weighted average shares outstanding - basic |
|
1,870,959 |
|
1,834,858 |
|
|
1,862,554 |
|
1,775,775 |
|
| Net Income (loss) per common share - diluted |
$ |
0.10 |
$ |
0.09 |
|
$( |
0.60 |
)$( |
0.13 |
) |
| Weighted average shares outstanding - diluted |
|
2,220,125 |
|
1,917,460 |
|
1,862,554 |
|
1,775,775 |
|
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