2007'06.15.Fri
Chindex International, Inc. Announces Fiscal 2007 Year End and Fourth Quarter Results
June 13, 2007
BETHESDA, Md., June 13 /Xinhua-PRNewswire/ -- Chindex
International, Inc. (Nasdaq: CHDX), an independent American
provider of international healthcare services and Western
healthcare products in the People's Republic of China,
today announced results for its fiscal year end and fourth
quarter ended March 31, 2007. For the fiscal year, the
Company reported total revenue of $105.9 million, an
increase of 17% over the prior year, and net income from
continuing operations of $3.0 million compared net income
from continuing operations of $167,000 in the prior year.
(Logo: http://www.xprn.com.cn/xprn/sa/200611131726.jpg
)
Revenue for the quarter ended March 31, 2007 was $24.7
million, a 6% increase over revenue of $23.3 million in the
quarter ended March 31, 2006.
Net income for the quarter ended March 31, 2007 was
$665,000 or earnings per share of $0.09. This compares to
a net loss of $394,000, or a loss per share of $0.06, for
the quarter ended March 31, 2006. Net income for the year
ended March 31, 2007 was $2.7 million, or earnings per
share of $0.40. This compares to a net loss of $2.9
million, or a loss per share of $0.45, for the year ended
March 31, 2006.
The Company's balance sheet as of March 31, 2007 shows
cash, cash equivalents and restricted cash of $10.7
million, total assets of $62.9 million, a current ratio of
1.65:1 and stockholders' equity of $27.9 million.
Roberta Lipson, President and CEO of Chindex, commented
on the results: "We continue to see great opportunity
in healthcare in China. Our profitable results for fiscal
year 2007 are a window on the great potential we see as we
set the stage for the next chapters of growth in both our
divisions."
Revenue from the Healthcare Services division for the
year was $47.9 million, an increase of 31% over the prior
year with income from continuing operations of $5.0
million, compared with income from continuing operations of
$1.6 million in the previous year. This improvement of over
200% reflects increasing profitability in both the Beijing
and Shanghai markets. The Healthcare Services division
operates the Company's United Family Healthcare (UFH)
network of private hospitals and clinics in China. Chindex
operates the only foreign-invested, multi-facility hospital
network in China.
Lipson commented, "The continued rapid growth on
both top and bottom lines on a same-store basis in our
United Family Healthcare network speaks to the growing
potential of the market as well as our increased service
offerings in both markets. We are just about to celebrate
the 10th anniversary of our hospital operations in Beijing
and expect the growth to continue even as we are planning
the next phases of geographic and facility
expansion."
"Our near term expansion plans for the United
Family Healthcare network include a new clinic site in
Shanghai as well as strategic geographic expansion into new
markets in Wuxi and Guangzhou. We have recently announced
the first healthcare management services contract for a
United Family clinic in Wuxi. We also expect to finalize
plans for our expansion into the Guangzhou market,
beginning with a clinic operation to be followed by a new
United Family Hospital facility, in the near future."
The Medical Products division markets, distributes and
sells select medical capital equipment, instrumentation and
other medical products for use in hospitals in China and
Hong Kong.
Revenue for the division during the year was $58.0
million, a 7% increase from the prior year. The increase
was attributable to the impact of new product introductions
over the past year as well as delivery of goods in the
fiscal 2007 period under a government-backed financing
program and the delivery of goods under a multi-unit
government contract. These positive factors were offset by
the impact of ongoing and unfinished reforms by the Chinese
Government of the procurement process in the Chinese
healthcare system, which included increased requirements
for public tendering in capital equipment markets, a
general slowdown in the growth rate of the market for
imported medical devices and delays in the product
registrations in certain product categories. The Company
reported a loss for this division for the year.
"The market issues impacting our 2007 period in
the products division began to see resolution by year end.
While we did not meet our performance targets in the
division, during the year we did see significant progress
in market penetration for mid-tier product categories, the
successful installations of the first daVinci surgical
robot systems in Asia and the resumption of our loan
financing programs based on U.S. Ex-Im Bank guarantees. We
expect improved performance and a return to profitability
in the division in 2008,"said Lipson.
Lipson concluded, "Our two divisions operate in
very synergistic market segments, Healthcare Services and
Medical Products. We have great faith in the opportunity
in China in the Healthcare space and feel we are uniquely
positioned with `first to market advantage' in these
areas."
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 Healthcare
network of private primary care hospitals and affiliated
ambulatory clinics in China. The Company's healthcare
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,
more than 1,000 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, 2007, 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.
Financial Summary Attached
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(thousands except share and per share data)
Three months ended March 31,
Year ended March 31,
2007 2006
2007 2006
(unaudited) (unaudited)
Product sales $11,861 $13,074
$57,977 $54,336
Healthcare services
revenue 12,821 10,211
47,944 36,500
Total revenue 24,682 23,285
105,921 90,836
Cost and expenses
Product sales costs 8,942 9,695
43,891 40,913
Healthcare services
costs 10,514 8,896
40,534 33,455
Selling and
marketing expenses 2,725 2,801
9,930 10,195
General and
administrative 1,562 1,559
6,921 5,723
Income from continuing
operations 939 334
4,645 550
Other (expenses) and
income
Interest expense (195) (192)
(766) (589)
Interest income 51 56
238 173
Miscellaneous income
(expense) - net 72 (40)
70 (18)
Income from continuing
operations before
income taxes 867 158
4,187 116
(Provision for) benefit
from income taxes (219) (38)
(1,205) 51
Net income from
continuing operations 648 120
2,982 167
Income (loss) from
discontinued operations 17 (514)
(247) (3,105)
Net income (loss) $665 $(394)
$2,735 $(2,938)
Net income (loss) per
common share - basic $0.09 $(0.06)
$.40 $(0.45)
Weighted average shares
outstanding 7,072,002 6,605,118
6,857,913 6,539,572
CONSOLIDATED CONDENSED BALANCE SHEETS
(thousands except share data)
March 31,
2007 March 31, 2006
ASSETS
Current assets:
Cash and cash equivalents
$9,106 $9,034
Restricted cash
1,590 383
Trade accounts receivable, less
allowance for doubtful accounts of
$2,827 and $2,250, respectively
Equipment sales receivables
13,133 7,685
Patient service receivables
6,104 5,468
Inventories
7,835 8,681
Deferred income tax
2,463 177
Other current assets
3,153 2,322
Current assets of discontinued
operations
-- 1,006
Total current assets
43,384 34,756
Property and equipment, net
18,482 19,119
Long-term deferred income taxes
607 2,452
Other assets
434 719
Total assets
$62,907 $57,046
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses
22,877 $21,727
Short-term portion of
capitalized leases
36 50
Short-term debt and vendor financing
2,710 3,080
Income taxes payable
629 143
Current liabilities of
discontinued operations
0 748
Total current liabilities
26,252 25,748
Long-term portion of capitalized
leases
58 91
Long-term debt and vendor financing
8,679 8,569
Total liabilities
34,989 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 at March 31, 2007
and 2006, respectively:
Common stock - 6,332,345 and
5,946,873 shares issued and
outstanding at March 31, 2007
and 2006 respectively
63 60
Class B stock - 775,000 shares
issued and outstanding at March
31, 2007 and 2006
8 8
Additional paid-in capital
38,947 36,436
Accumulated other comprehensive income
106 75
Accumulated deficit
(11,206) (13,941)
Total stockholders' equity
27,918 22,638
Total liabilities and
stockholders' equity
$62,907 $57,046
SEGMENT INFORMATION
The Company operates in two segments: Healthcare
Services and Medical Products. The Company evaluates
performance and allocates resources based on income or loss
from continuing operations before income taxes, not
including foreign exchange gains or losses.
Healthcare
Medical
Services
Products Total
As of March 31, 2007:
Assets $34,129,000
$28,778,000 $62,907,000
For the three months
ended March 31, 2007:
Sales and service revenue $12,821,000
$11,861,000 $24,682,000
Gross Profit n/a*
2,919,000 n/a*
Gross Profit % n/a*
25% n/a*
Income (loss) from
continuing operations
before foreign exchange $1,623,000
$(1,258,000) $365,000
Foreign exchange gain
574,000
Income from continuing
operations
$939,000
Other (expense), net
(72,000)
Income from continuing
operations before income taxes
$867,000
Healthcare
Medical
Services
Products Total
As of March 31, 2006:
Assets $29,801,000
$26,239,000 $56,040,000
For the three months
ended March 31, 2006:
Sales and service revenue $10,211,000
$13,074,000 $23,285,000
Gross Profit n/a*
3,379,000 n/a*
Gross Profit % n/a*
26% n/a*
Income (loss) from
continuing operations
before foreign exchange $1,055,000
$(743,000) $312,000
Foreign exchange gain
22,000
Income from continuing
operations
$334,000
Other (expense), net
(176,000)
Income from continuing
operations before income taxes
$158,000
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
Services
Products Total
As of March 31, 2007:
Assets $34,129,000
$28,778,000 $62,907,000
For the twelve months
ended March 31, 2007:
Sales and service revenue $47,944,000
$57,977,000 $105,921,000
Gross Profit n/a*
14,086,000 n/a*
Gross Profit % n/a*
24% n/a*
Income (loss) from $5,028,000
$(1,154,000) $3,874,000
continuing operations
before foreign exchange
Foreign exchange gain
771,000
Income from continuing
operations
$4,645,000
Other (expense), net
(458,000)
Income from continuing
operations before income taxes
$4,187,000
Healthcare
Medical
Services
Products Total
As of March 31, 2006:
Assets $29,801,000
$26,239,000 $56,040,000
For the twelve months
ended March 31, 2006:
Sales and service revenue $36,500,000
$54,336,000 $90,836,000
Gross Profit n/a*
13,423,000 n/a*
Gross Profit % n/a*
25% n/a*
Income (loss) from
continuing operations
before foreign exchange $1,585,000
$(1,436,000) $149,000
Foreign exchange gain
401,000
Income from continuing
operations
$550,000
Other (expense), net
(434,000)
Income from continuing
operations before income taxes
$116,000
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.
* Gross profit is not routinely calculated in the
healthcare industry.
For more information, please contact:
Lawrence Pemble or Judy Zakreski
Chindex International, Inc.
Tel: +1-301-215-7777
PR
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