Chindex International, Inc. Announces Results for Quarter Ended June 30, 2004; Profitable Results on 31% Revenue Increase.BETHESDA Bethesda, city, United States Bethesda, uninc. city (1990 pop. 62,936), Montgomery co., W central Md., an affluent residential and commercial suburb of Washington, D.C. The area was settled in the late 17th cent. , Md. -- Chindex International, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CHDX), an independent American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of provider of Western healthcare products and medical services in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China, today announced results for the quarter ended June June: see month. 30, 2004. The Company will report a 31% increase in revenues over the same quarter of the prior fiscal year, including increased revenue in each of its three divisions. The Company will also report a more than $2 million improvement in its income from operations over the periods. Revenue for the quarter ended June 30, 2004 was $26.7 million with income from operations of $503,000 and net income of $244,000, or earnings per share of $0.05. This compares to revenue of $20.4 million with a loss from operations of $1.73 million and a net loss of $1.34 million, or a loss per share of $0.36, for the quarter ended June 30, 2003. Roberta Lipson
Lipson is a ward in the city of Plymouth, England. The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and improved bottom line results." The Healthcare Services division was a major contributor of operating income in the recent quarter. Revenue during the quarter for healthcare services in Beijing grew 62% over revenue for the same quarter of the prior year, primarily as a result of increased patients at our United Family Hospital operations in Beijing. Our hospital development activities in Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. continued during the recent quarter. We are currently finishing the interior of the Shanghai United Family Hospital facility and receiving and installing equipment. We expect the facility to be completed and opened in the fall. In addition, we are in the process of planning for our next proposed United Family Hospital, in Xiamen, including developing a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. that is required for approval by the Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
The Medical Capital Equipment division also contributed significantly to our operating income in the recent quarter based on a 56% increase in revenue over the prior quarter. The division experienced an improved profit margin of 26% as compared with 18% in the prior quarter, which was adversely affected by SARS, among other things. Revenue growth is based on our development of new sales channels for our capital medical equipment, involving greater use of local Chinese sub-distributors. These sub-distributors allowed us to sell an expanded product portfolio, including in particular a new range of ultrasound ultrasound or sonography, in medicine, technique that uses sound waves to study and treat hard-to-reach body areas. In scanning with ultrasound, high-frequency sound waves are transmitted to the area of interest and the returning echoes recorded products. We also reduced expenses during the recent quarter as a result of improved resource allocation resource allocation Managed care The constellation of activities and decisions which form the basis for prioritizing health care needs , including increased productivity of our staff through improved management and greater use of regionally-based sales representatives. The framework trade agreements between the U.S. and Chinese governments, which are required for government-supported loan programs are still being negotiated. We believe that there has been substantial progress in the bilateral bilateral /bi·lat·er·al/ (-lat´er-al) having two sides, or pertaining to both sides. bi·lat·er·al adj. 1. Having or formed of two sides; two-sided. 2. negotiations over the past several months and expect a final agreement in the near future. The Healthcare Products Distribution division reported a loss on operations during the recent quarter. As planned, revenues from third party logistics services continued to decline, while personal healthcare products and medical consumable A material that is used up and needs continuous replenishment, such as paper and toner. "The low-tech end of the high-tech field!" sales increased significantly as compared with the prior period. As recently announced, the division has launched its "United Family Baby Care" brand of products in select retail pharmacies This article is a list of major pharmacies (also known as chemists and drugstores) by country. Australia Pharmacies in Australia are mostly independently-owned by pharmacists, often operated as franchises of retail brands offered by the three major in Beijing and Shanghai. This is the first Chindex wholly-owned brand to be brought to market. This launch is part of our transition away from lower margin logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation services to higher margin business. The division currently has several additional United Family product lines under development. Chindex is an American company operating in several healthcare sectors of the Chinese marketplace, including Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. . It provides representative and distribution services to a number of major multinational companies including Siemens AG Siemens AG German electrical-equipment manufacturer. The first Siemens company, Siemens & Halske, was founded in Berlin in 1847 to build telegraph installations. (ultrasound systems), and Guidant (interventional cardiology interventional cardiology Cardiology The subspecialty of cardiology dedicated to the diagnosis, medical and mechanical therapy, pre- and post-procedure management of adult patients with acute and chronic forms of cardiovascular disease amenable to catheter-based products including stents, balloon catheters balloon catheter n. A catheter with an inflatable balloon at its tip, used especially to expand a partially obstructed blood vessel or bodily passage and to measure blood pressure in a blood vessel. Also called balloon-tip catheter. and guide wires). Its distribution channels to the retail pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. industry in China have been developed through a relationship with a major multinational cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). manufacturer. It also provides healthcare services through the operations of its private hospital corporation in China. With twenty-three years of experience, over 700 employees, and operations in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , 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. Some of the information in this release may contain statements regarding future expectations, plans, prospects for performance of the Company that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company cannot guarantee future results, levels of activity, performance or achievements. The numbers discussed in this release also involve risks and uncertainties. The following factors, among others, could cause actual results to differ materially from those described by such statements: our ability to manage our growth and maintain adequate controls, the loss of services A deprivation of a family member, such as a parent or spouse, of the right to benefit from the performance of various duties, coupled with the privation of love and companionship, provided by the victim of a personal injury or Wrongful Death. of key personnel, general market conditions including inflation or foreign currency fluctuations , our dependence on relationships with suppliers, the timing of our revenues and fluctuations in financial performance, the availability to our customers of third-party financings, product liability claims and product recalls, competition, hiring and retaining qualified sales and service personnel, management of inventory, relations with foreign trade corporations, dependence on sub-distributors and dealers, completion and opening of healthcare facilities, attracting and retaining qualified physicians and other hospital personnel, regulatory compliance, the cost of malpractice insurance Noun 1. malpractice insurance - insurance purchased by physicians and hospitals to cover the cost of being sued for malpractice; "obstetricians have to pay high rates for malpractice insurance" , our dependence on our information systems, the economic policies of the Chinese government, the newness and undeveloped nature of the Chinese legal system, the regulation of the conversion of Chinese currency Currency has been used in China since the New Stone Age, in which Chinese also invented paper money in the 9th century. Today Renminbi (Chinese: 人民幣), literally People's currency, abbreviated to RMB, is the currency in mainland of the People's , future epidemics This article is a list of major epidemics. Worldwide Pandemics
adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or any change in events, conditions, circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which such statements are based.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(thousands except share and per share data)
(Unaudited)
Three months ended
June 30, 2004 June 30, 2003
Product sales $ 20,879 $ 16,806
Healthcare services revenue 5,796 3,567
------------- -------------
Total revenue 26,675 20,373
Cost and expenses
Product sales costs 16,898 14,343
Healthcare services costs 4,896 3,684
Selling and marketing expenses 2,826 2,512
General and administrative 1,552 1,560
------------- -------------
Income (loss) from operations 503 (1,726)
Other (expenses) and income
Interest expense (42) (56)
Interest income 8 15
Miscellaneous (expenses) income - net (39) 41
------------- -------------
Income (loss) before income taxes 430 (1,726)
(Provision for) benefit from income taxes (186) 388
------------- -------------
Net income (loss) $ 244 $ (1,338)
============= =============
Net income (loss) per common share - basic $ 0.05 $ (0.36)
============= =============
Weighted average shares outstanding -
basic 4,995,910 3,713,047
============= =============
Net income (loss) per common share -
diluted $ 0.04 $ (0.36)
============= =============
Weighted average shares outstanding -
diluted 5,729,748 3,713,047
============= =============
Share information has been retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin adjusted to give effect to the stock splits, each in the form of a 100% stock dividend. The stock splits were announced by us on August 6, 2003 with a record date of August 18, 2003 and on December 29, 2003 with a record date of January 10, 2004.
CONSOLIDATED CONDENSED BALANCE SHEETS
(thousands except share data)
June 30, 2004 March 31, 2004
--------------- ---------------
Unaudited Audited
--------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $ 13,038 $ 6,791
Trade accounts receivable, less
allowance for doubtful accounts of
$1,193 and $1,131, respectively
Equipment sales receivables 14,582 15,039
Patient service receivables 2,920 2,335
Inventories 10,416 10,363
Deferred income tax 579 467
Other current assets 3,921 2,235
--------------- ---------------
Total current assets 45,456 37,230
Property and equipment, net 9,953 8,901
Long term deferred income taxes 1,334 1,334
Other assets 332 386
--------------- ---------------
Total assets $ 57,075 $ 47,851
=============== ===============
LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $ 25,258 $ 23,383
Accrued contract training 1,040 1,078
Short term debt or vendor financing 2,635 5,668
Income taxes payable 446 381
--------------- ---------------
Total current liabilities 29,379 30,510
Long term debt or vendor financing 3,105 125
--------------- ---------------
Total liabilities 32,484 30,635
Minority interest 18 18
Stockholders' equity:
Preferred stock, $.01 par value,
500,000 shares authorized none
issued 0 0
Common stock, $.01 par value,
6,800,000 shares authorized,
including 800,000 designated Class
B:
Common stock - 4,551,152 and
3,643,152 shares issued and
outstanding at June 30 and
March 31, respectively 46 36
Class B stock - 775,000 shares
issued and outstanding at
June 30 and March 31 8 8
Additional capital 29,632 22,488
Accumulated other comprehensive
income (12) 11
Accumulated deficit (5,101) (5,345)
--------------- ---------------
Total stockholders' equity 24,573 17,198
--------------- ---------------
Total liabilities, minority
interest and stockholders'
equity $ 57,075 $ 47,851
=============== ===============
SEGMENT INFORMATION We have three reportable segments: Medical Capital Equipment, Healthcare Products Distribution, and Healthcare Services. We evaluate performance and allocate To reserve a resource such as memory or disk. See memory allocation. resources based on profit or loss from operations before income taxes, not including gains or losses on our investment portfolio.
----------------------------------------------------------------------
Medical Healthcare
Capital Products Healthcare
Equipment Distribution Services Total
------------- ------------- ------------ ------------
As of June 30,
2004:
---------------
Assets $26,612,000 $14,020,000 $16,443,000 $57,075,000
For the quarter
ended June 30,
2004:
---------------
Sales and service
revenue $9,662,000 $11,217,000 $5,796,000 $26,675,000
Gross Profit 2,553,000 1,428,000 n/a n/a
Gross Profit % 26% 13% n/a n/a
Income (loss)
from operations $229,000 $(391,000) $665,000 $503,000
Other (expense), net (73,000)
Minority interest 0
Income before taxes $430,000
----------------------------------------------------------------------
Medical Healthcare
Capital Products Healthcare
Equipment Distribution Services Total
------------- ------------- ------------ ------------
As of March 31,
2004:
---------------
Assets $22,997,000 $12,515,000 $12,339,000 $47,851,000
For the quarter
ended June 30,
2003:
----------------
Sales and service
revenue $6,198,000 $10,608,000 $3,567,000 $20,373,000
Gross Profit 1,138,000 1,325,000 n/a n/a
Gross Profit % 18% 12% n/a n/a
Loss from
operations $(1,110,000) $(236,000) $(380,000) $(1,726,000)
Other (expense),
net 0
Minority interest 0
Loss before taxes $(1,726,000)
----------------------------------------------------------------------
Inter-segment transactions were eliminated for the three months ended
June 30, 2004 and 2003.
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