CHDX

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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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