BETHESDA, Md., Nov. 13 /Xinhua-PRNewswire/ -- Chindex International, Inc.
(Nasdaq: CHDX), an independent American provider of Western healthcare
products and medical services in the People’s Republic of China, today
announced results for the quarter and six months ended September 30, 2006.
Both operating divisions of the Company reported profitable results.
(Logo: http://www.prnasia.com/sa/200611131726.jpg )
Revenue for the quarter ended September 30, 2006 was $26.5 million, a 16%
increase over revenue of $22.7 million in the quarter ended September 30,
2005. Net income from continuing operations for the quarter ended September
30, 2006 was $1.1 million, or earnings per basic share on continuing
operations of $0.17. This compares to a net income from continuing
operations of $0.2 million, or earnings per basic share on continuing
operations of $0.03 for the quarter ended September 30, 2005.
Revenue for the six months ended September 30, 2006 was $50.9 million, a
13% increase over revenue of $44.9 million in the six months ended September
30, 2005. Net income from continuing operations for the six months ended
September 30, 2006 was $1.7 million, or earnings per basic share on
continuing operations of $0.25. This compares to a net loss from continuing
operations of $0.4 million, or a loss per basic share on continuing
operations of $0.06 for the six months ended September 30, 2005.
The Company’s balance sheet as of September 30, 2006 shows cash, cash
equivalents and restricted cash of $8.3 million, total assets of $60.9
million, a current ratio of 1.6:1 and stockholders’ equity of $24.8 million.
Roberta Lipson, Chindex CEO commented on the results for the
quarter: "During the quarter we reported profitable results in both
divisions. In the Healthcare Services division, we also announced the first
global comprehensive Preferred Provider Organization (PPO) insurance product
ever issued in China, for which our network is the primary provider. This
was a long anticipated new chapter in our development program for the United
Family Healthcare network which will help us to further expand our market
access to the local Chinese patient base in both the Beijing and Shanghai
markets. In the Medical Products division we shipped the first da Vinci
surgical robotic system in mainland China during the quarter. This is the
latest in a long history of Chindex technology ‘firsts’ in the Chinese
healthcare markets."
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-five years of
experience, 950 employees, and operations in China, Hong Kong, 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, http://www.chindex.com
and http://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, 2006, updates and additions to those “Risk Factors” in our interim
reports on Form 10-Q 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.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(thousands except share and per share data)
(Unaudited)
Three months ended Six months ended
September 30, September 30,
2006 2005 2006 2005
Product sales $15,686 $14,260 $28,487 $28,561
Healthcare services revenue 10,794 8,473 22,407 16,369
Total revenue 26,480 22,733 50,894 44,930
Cost and expenses
Product sales costs 12,048 10,501 21,248 21,865
Healthcare services costs 9,529 7,666 18,997 15,408
Selling and marketing
expenses 2,334 2,671 4,587 5,027
General and administrative
expenses 1,688 1,352 3,530 2,849
Income (loss) from
continuing operations 881 543 2,532 (219)
Other (expenses) and income
Interest expense (199) (99) (386) (193)
Interest income 60 31 124 68
Miscellaneous income - net 20 27 5 81
Income (loss) from
continuing operations
before income taxes 762 502 2,275 (263)
Benefit from (provision for)
income taxes 368 (313) (619) (128)
Net income (loss) from
continuing operations 1,130 189 1,656 (391)
Loss from discontinued
operations (251) (906) (264) (1,689)
Net income (loss) $879 $(717) $1,392 $(2,080)
Net income (loss) per
common share - basic
Continuing operations $.17 $.03 $.25 $(.06)
Discontinued operations (.04) (.14) (.04) (.26)
Net income (loss) $.13 $(.11) $.21 $(.32)
Weighted average shares
outstanding - basic 6,753,902 6,514,244 6,741,197 6,508,903
Net income (loss) per
common share - diluted
Continuing operations $.15 $.03 $.22 $(.06)
Discontinued operations (.03) (.14) (.04) (.26)
Net income (loss) $.12 $(.11) $.18 $(.32)
Weighted average shares
outstanding - diluted 7,557,288 6,922,044 7,535,027 6,508,903
CONSOLIDATED CONDENSED BALANCE SHEETS
(thousands except share data)
(Unaudited)
September 30, March 31,
2006 2006
ASSETS
Current assets:
Cash and cash equivalents $8,119 $9,034
Restricted cash 201 383
Trade accounts receivable, less
allowance for doubtful accounts of
$2,796 and $2,250, respectively
Product sales receivables 11,779 7,685
Patient service receivables 4,715 5,468
Inventories, net 8,793 8,681
Deferred income taxes 1,815 177
Other current assets 4,291 2,322
Current assets of discontinued
operations 99 1,006
Total current assets 39,812 34,756
Property and equipment, net 19,365 19,119
Long-term deferred income taxes 1,318 2,452
Other assets 454 719
Total assets $60,949 $57,046
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued
expenses $23,701 $21,727
Short-term portion of
capitalized leases 42 50
Short-term debt and vendor
financing 975 3,080
Income taxes payable 602 143
Current liabilities of
discontinued operations 304 748
Total current liabilities 25,624 25,748
Long-term portion of capitalized
leases 76 91
Long-term debt and vendor financing 10,450 8,569
Total liabilities 36,150 34,408
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.01 par
value, 500,000 shares
authorized, none
issued 0 0
Common stock, $.01 par value,
13,600,000 shares authorized,
including 1,600,000 designated
Class B:
Common stock - 6,043,885 and
5,946,873 shares issued and
outstanding at September 30, 2006
and March 31, 2006, respectively 61 60
Class B stock - 775,000 shares
issued and outstanding at
September 30, 2006 and March
31, 2006 8 8
Additional paid in capital 37,203 36,436
Accumulated other comprehensive
income 76 75
Accumulated deficit (12,549) (13,941)
Total stockholders’ equity 24,799 22,638
Total liabilities and
stockholders’ equity $60,949 $57,046
SEGMENT INFORMATION
The Company has two reportable segments: Healthcare Services and Medical
Products. Prior to fiscal year 2006, the Company had three reportable
segments, Medical Capital Equipment, Healthcare Products Distribution and
Healthcare Services. In fiscal 2006, the Company discontinued the retail
sales portion of the Healthcare Products Distribution segment and the
remaining portion of the segment was grouped together with the Medical
Capital Equipment segment to become the Medical Products Division. The
following segment information has been restated to reflect the new segment
structure. We evaluate performance and allocate resources based on income or
loss from continuing operations before income taxes, not including gains or
losses on our investment portfolio or foreign exchange gains or losses.
Healthcare Medical Total
Services Products
As of September 30, 2006:
Assets $31,305,000 $29,545,000 $60,850,000
For the three months ended
September 30, 2006:
Sales and service revenue $10,794,000 $15,686,000 $26,480,000
Gross Profit n/a * 3,638,000 n/a
Gross Profit % n/a * 23 % n/a
Income from continuing
operations before foreign
exchange $695,000 $83,000 $778,000
Foreign exchange gain 103,000
Income from continuing
operations $881,000
Other (expense), net (119,000)
Income from continuing
operations before income taxes $762,000
Total consolidated assets of $60,949,000 as of September 30, 2006 include
$99,000 of assets pertaining to our healthcare products retail business,
which was discontinued in fiscal year 2006.
Healthcare Medical Total
Services Products
As of March 31, 2006:
Assets $29,801,000 $26,239,000 $56,040,000
For the three months ended
September 30, 2005:
Sales and service revenue $8,473,000 $14,260,000 $22,733,000
Gross Profit n/a * 3,759,000 n/a
Gross Profit % n/a * 26 % n/a
Income (Loss) from
continuing operations
before foreign
exchange $373,000 $(192,000) $181,000
Foreign exchange gain 362,000
Income from continuing
operations $543,000
Other (expense), net (41,000)
Income from continuing
operations before income taxes $502,000
Total consolidated assets of $57,046,000 as of March 31, 2006 include
$1,006,000 of assets pertaining to our healthcare products retail business,
which was discontinued in fiscal year 2006.
Healthcare Medical Total
Services Products
As of September 30, 2006:
Assets $31,305,000 $29,545,000 $60,850,000
For the six months
ended September 30, 2006:
Sales and service
revenue $22,407,000 $28,487,000 $50,894,000
Gross Profit n/a * 7,239,000 n/a
Gross Profit % n/a * 25 % n/a
Income from continuing
operations before
foreign exchange $2,282,000 $179,000 $2,461,000
Foreign exchange gain 71,000
Income from continuing
operations $2,532,000
Other (expense), net (257,000)
Income from continuing
operations before income
taxes $2,275,000
Total consolidated assets of $60,949,000 as of September 30, 2006 include
$99,000 of assets pertaining to our healthcare products retail business,
which was discontinued in fiscal year 2006.
Healthcare Medical Total
Services Products
As of March 31, 2006:
Assets $29,801,000 $26,239,000 $56,040,000
For the six months
ended September 30, 2006:
Sales and service
revenue $16,369,000 $28,561,000 $44,930,000
Gross Profit n/a * 6,696,000 n/a
Gross Profit % n/a * 23 % n/a
Income (loss) from continuing
operations before
foreign exchange $148,000 $(698,000) (550,000)
Foreign exchange gain 331,000
Loss from continuing
operations $(219,000)
Other (expense), net (44,000)
Loss from continuing
operations before
income taxes $(263,000)
Total consolidated assets of $57,046,000 as of March 31, 2006 include
$1,006,000 of assets pertaining to our healthcare products retail business,
which was discontinued in fiscal year 2006.
