Chindex International Inc.
7201 Wisconsin Avenue
Bethesda, MD 20814
United States - Map
Phone: 301-215-7777
Fax: 301-215-7719
Web Site: http://www.chindex.com
DETAILS
Index Membership: N/A
Sector: Services
Industry: Medical Equipment Wholesale
Full Time Employees: 1,007
BUSINESS SUMMARY
Chindex International, Inc. engages in the provision of healthcare services, as well as in the sale of medical equipment, instrumentation and products. It operates in two divisions, Healthcare Services and Medical Products. The Healthcare Services segment operates the United Family Healthcare network of private hospitals and clinics. It offers a range of family healthcare services, including 24/7 Emergency Rooms, ICUs and NICUs, ORs, clinical laboratory, radiology, and blood banking services for men, women, and children. The Medical Products division markets, distributes, and sells select medical capital equipment, instrumentation, and other medical products for use in hospitals. This division's products primarily include diagnostic color ultrasound imaging devices, robotic surgical systems and instrumentation, chemistry analyzers, sterilization systems, bone densitometers, mammography and breast biopsy devices, and lasers for cosmetic surgery. Chindex International has operations primarily in the People's Republic of China and Hong Kong. The company was founded in 1981 and is headquartered in Washington, District of Columbia.
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Press Release Source: Chindex International, Inc.
Chindex International, Inc. Announces Results for the Quarter and Nine Months Ended December 31, 2007
Friday February 8, 7:30 am ET
BETHESDA, Md., Feb. 8 /Xinhua-PRNewswire/ -- Chindex International, Inc. (Nasdaq: CHDX - News), 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.
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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.
Contact:
Lawrence Pemble
Judy Zakreski
Chindex International, Inc.
(301) 215-7777
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(thousands except share and per share data)
(Unaudited)
Three months ended Nine months ended
December 31, 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) (.00) (.04)
Net income $.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 $.42 $.09 $.73 $.27
Weighted average shares
outstanding - diluted 9,417,565 7,609,578 8,691,892 7,611,422
CONSOLIDATED CONDENSED BALANCE SHEETS
(thousands except share data)
December 31, March 31,
2007 2007
(Unaudited)
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
Product sales receivables 13,697 13,133
Patient service receivables 7,686 6,104
Inventories 9,800 7,835
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 $26,092 $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 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 $30,344,000
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 $95,434,000
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 $35,124,000 $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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Source: Chindex International, Inc.
Chindex International Announces the Opening of Wuxi United Family Healthcare Center
Wednesday April 2, 10:00 am ET
BETHESDA, Maryland, April 2, 2008 /Xinhua-PRNewswire/ -- Chindex International, Inc. (Nasdaq: CHDX - News) a leading independent American provider of Western healthcare services and medical products in the People's Republic of China, announced the opening of the Wuxi United Family Healthcare Center at a ceremony held on April 2, 2008. The Wuxi United Family Healthcare Center was established by the International Travel Healthcare Association, Wuxi Center and will be managed by Chindex's United Family Healthcare network. This cooperation will allow the newly-constructed Center to provide premium healthcare services to the international and local residents of the prosperous city of Wuxi and the surrounding areas of metropolitan Shanghai. The ceremony was attended by Ms. Lu Yanguang, Deputy Director of the Jiangsu Entry/Exit Inspection and Quarantine Bureau, Mr. Gong Peixing, a member of the Standing Committee of the CPC of Wuxi and Chairman of Political Consultative Conference of Wuxi, Ms. Fang Peiying, Deputy Director of Wuxi Bureau of Health, Roberta Lipson, CEO of Chindex International and Chairman of United Family Healthcare, and Anne Moncure, President of United Family Healthcare.
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Mr. Zhou Chuanming, Director General of the China Inspection and Quarantine Wuxi Office praised the opening of the Center: "The opening of the Wuxi United Family Healthcare Center will benefit the communities of the areas surrounding the city of Wuxi by providing international standard healthcare services for the first time. The opening of the Center has also become a symbol for the continuing improvement of the investment environment. The China Inspection and Quarantine Wuxi Office is taking the lead to establish this cooperative venture with an international healthcare company. Our project with United Family Healthcare will introduce a well-known premium quality healthcare brand in the Wuxi area and promote an international standard hospital management model. Our goal is to improve healthcare services for the residents of the Wuxi area and elevate the social economic development to an international level."
Roberta Lipson, CEO of Chindex International, said, "The successful establishment of the Wuxi United Family Healthcare Center is a result of earnest collaboration between the two parties, which couldn't have come to fruition without the great support from the Wuxi municipal government and the healthcare administration. On behalf of the United Family Network, we would like to extend our sincere gratitude to the government leaders, relevant government offices and all distinguished guests. We truly hope that we will continue to have this great support from all of you in the future operations of the Wuxi United Family Healthcare Center. "
Anne Moncure, President of United Family Hospitals and Clinics, said, "As a member of the United Family network, Wuxi United Family Healthcare Center will have access to the medical resources that our integrated network in Shanghai and Beijing has to offer. The Wuxi Center will cooperate with multiple overseas health insurance providers to set up international direct billing for our patients. We're confident that direct billing will bring significant convenience to the expatriate families in Wuxi and Southern Jiangsu Province, who will gain access to quality medical care at international standards without having to travel to Shanghai or back to their home countries."
As the sixth healthcare facility in China to be owned or operated by Chindex International, the Wuxi United Family Healthcare Center has been constructed, equipped and will operate according to the international standards for patient care which are the hallmarks of the United Family Healthcare network.
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, over 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 .
About International Travel Healthcare Association, Wuxi Center
International Travel Healthcare Association, Wuxi Center is a well- recognized medical institution with strong management and high social awareness. The Center is a state-designated professional institution for immigration medical examinations and has an important position in the industry. The Center is equipped with advanced medical equipment to provide efficient and high quality services. All of the medical staff has received professional training to ensure quality of service.
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