Chindex International, Inc. Announces Results for Quarter and Nine Months Ended December 31, 2004.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 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 December 31, 2004. Revenue for the quarter ended December 31, 2004 was $22.3 million, an increase of 3% over revenue of $21.6 million in the quarter ended December 31, 2003. Revenue for the nine month period ending December 31, 2004 was $76.6 million, an increase of 21% over revenue of $63.2 million in the nine month period ended December 31, 2003. The net loss for the quarter ended December 31, 2004 was $3.7 million, or a loss per share of $0.69. This compares to a net loss of $383,000, or a loss per share of $0.10, for the quarter ended December 31, 2003. The net loss for the nine month period ending December 31, 2004 was $3.6 million or a loss per share of $0.68. This compares to a net loss of $1.5 million or a loss per share of $0.40 for the nine month period ended December 31, 2003. Roberta Lipson, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Chindex, commented on the quarterly results: "As previously announced, our results this quarter were significantly impacted by a variety of factors, the most significant being expenses related to delays in the opening and the start-up Start-up The earliest stage of a new business venture. costs of our new 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. United Family Hospital and delays in the rollout of certain branded products in 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. business. These factors, combined with lower than expected revenue growth in all divisions, an overall increase in general administrative expenses, substantially due to the increased costs for corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. requirements, and an increase in our reserve for doubtful accounts, resulted in the increased operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. reported for the period compared to the prior year. "The Healthcare Services division reported a loss on operations in the recent quarter. Revenue during the quarter for healthcare services grew 14% over revenue for the same quarter of the prior year and fully allocated expenses including corporate administration increased 50% over the prior year period largely due to pre-opening and operating start-up expenses at our newly opened hospital in Shanghai. Hospital operations in Beijing showed increased patient visits in both inpatient inpatient /in·pa·tient/ (in´pa-shent) a patient who comes to a hospital or other health care facility for diagnosis or treatment that requires an overnight stay. in·pa·tient n. and outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. categories; however, the growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. were below our expectations due in part to allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of management resources to the opening of the new facility in Shanghai. The hospital in Shanghai held its opening ceremony on October 21, 2004 and provided limited outpatient services outpatient services Hospital-based services Managed care Medical and other services provided, to a nonadmitted Pt, by a hospital or other qualified facility–eg, mental health clinic, rural health clinic, mobile X-ray unit, free-standing dialysis unit Examples through the end of the quarter. We were pleased to see inpatient services inpatient service Managed care A service provided to a hospitalized Pt. Cf Outpatient service. begin in early January 2005 and the first baby born at the facility on January 22, 2005. The revenue ramp-up in Shanghai has so far been significantly faster than the early revenues at Beijing United after its opening in 1997. "The Medical Capital Equipment division also reported a loss in the recent quarter. Revenue growth was a modest 8% over the same quarter of the prior year and fully allocated expenses including corporate administration increased 27% over the periods, including a substantial unusual increase in our reserve for doubtful accounts. Absent this unusual charge of $400,000, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased 12% during the period. Quarter to quarter fluctuations in revenue are not an unfamiliar occurrence for this division, the performance of which is often subject to the timing of large unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. . We continue our strategy of growth through the expansion of sales channels involving the greater use of local Chinese sub-distributors. In line with our strategy to selectively add new products and technologies to our product offerings, we announced a new distribution agreement with Intuitive Surgical Intuitive Surgical Inc. (NASDAQ: ISRG) is a corporation that manufactures robotic surgical systems, most notably the da Vinci Surgical System. Intuitive Surgical has a market capitalization of 9.77 billion USD and is part of the Nasdaq-100 and S&P 400 MidCap Indices. for their surgical robotics robotics, science and technology of general purpose, programmable machine systems. Contrary to the popular fiction image of robots as ambulatory machines of human appearance capable of performing almost any task, most robotic systems are anchored to fixed positions systems during the period. We were also pleased to announce earlier this week the long awaited a·wait v. a·wait·ed, a·wait·ing, a·waits v.tr. 1. a. To wait for. See Synonyms at expect. b. signing of the Framework Agreement between 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. Export-Import Bank Export-import Bank (Ex-IM Bank) The U.S. federal government agency that extends trade credits to U.S. companies to facilitate the financing of U.S. exports. and the Chinese Ministry of Finance which will allow our U.S. government backed financing programs to resume after a two year hiatus hiatus /hi·a·tus/ (hi-a´tus) [L.] an opening, gap, or cleft.hia´tal aortic hiatus the opening in the diaphragm through which the aorta and thoracic duct pass. . In that announcement we also noted the contracts we have been awarded under German government financing packages through the KfW Investment Bank. "Finally, the Healthcare Products Distribution division reported a loss on operations during the recent quarter. Revenue decreased 7% from the same quarter of the prior year and fully allocated expenses including corporate administration increased by 36% over the periods. The decline in revenue was attributable to the phase out of third party logistics services and delays in the rollout of certain branded products in the retail pharmacy business. We have encountered increased pressures from suppliers in this segment which have impacted our gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. . We are exploring opportunities to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our supplier base in the retail business through considering strategic relationships with other potential business partners. We are evaluating the short- and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy for the segment in order to leverage our unique retail pharmacy distribution platform that now extends to almost 800 stores in over 50 cities nationwide. "While we have faced significant pressures this year in many areas of the business which are reflected in our results, we continue to believe in the unique positioning of the business platforms we have developed and the long term benefit these will bring to the company and its shareholders," Lipson concluded. 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 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 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 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 hospitals in China. With twenty-three years of experience, over 800 employees, and operations in the United States, 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, our ability to obtain additional financing, 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 malpractice, failure to provide professional services with the skill usually exhibited by responsible and careful members of the profession, resulting in injury, loss, or damage to the party contracting those services. , our dependence on our information systems, the economic policies of the Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
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.
CHINDEX INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(thousands except share and per share data)
(Unaudited)
Three months ended Nine months ended
December 31, December 31,
2004 2003 2004 2003
Product sales $17,141 $17,089 $60,509 $51,681
Healthcare services
revenue 5,188 4,541 16,050 11,478
---------- ---------- ---------- ----------
Total revenue 22,329 21,630 76,559 63,159
Cost and expenses
Product sales costs 13,587 13,706 48,462 41,693
Healthcare services
costs 6,751 4,322 16,798 11,395
Selling and
marketing expenses 3,297 2,516 8,962 7,301
General and
administrative 2,039 1,607 5,190 4,565
---------- ---------- ---------- ----------
Loss from operations (3,345) (521) (2,853) (1,795)
Other (expenses) and
income
Interest expense (36) (67) (108) (186)
Interest income 33 10 66 39
Miscellaneous
(expense) income -
net (51) 76 (115) 90
---------- ---------- ---------- ----------
Loss before income taxes (3,399) (502) (3,010) (1,852)
(Provision for) benefit
from income taxes (314) 119 (549) 349
---------- ---------- ---------- ----------
Net loss $(3,713) $(383) $(3,559) $(1,503)
========== ========== ========== ==========
Net loss per common share
- basic $(0.69) $(0.10) $( 0.68) $(0.40)
========== ========== ========== ==========
Weighted average shares
outstanding - basic 5,405,337 3,757,370 5,250,244 3,735,861
========== ========== ========== ==========
Net loss per common share
- diluted $( 0.69) $(0.10) $(0.68) $(0.40)
========== ========== ========== ==========
Weighted average shares
outstanding - diluted 5,405,337 3,757,370 5,250,244 3,735,861
========== ========== ========== ==========
CHINDEX INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(thousands except share data)
(Unaudited)
December 31, March 31,
2004 2004
------------ ----------
ASSETS
Current assets:
Cash and cash equivalents $4,033 $6,791
Trade accounts receivable, less allowance
for doubtful accounts of $1,491 and
$1,131, respectively
Equipment sales receivables 13,428 15,039
Patient service receivables 2,151 2,335
Inventories 9,430 9,537
Deferred income tax 1,010 467
Other current assets 3,969 2,235
------------ ----------
Total current assets 34,021 36,404
Property and equipment, net 17,014 9,727
Long-term deferred income taxes 709 1,334
Other assets 346 386
------------ ----------
Total assets $52,090 $47,851
============ ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $22,512 $24,356
Short-term portion of capitalized leases 188 123
Short-term debt and vendor financing 4,205 5,668
Income taxes payable 389 381
------------ ----------
Total current liabilities 27,294 30,528
Long-term portion of capitalized leases 166 125
Long-term debt 3,585 0
------------ ----------
Total liabilities 31,045 30,653
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 - 4,648,046 and 3,643,152
shares issued and outstanding at
December 31 and March 31, respectively 46 36
Class B stock - 775,000 shares issued
and outstanding at December 31 and
March 31 8 8
Additional capital 29,870 22,488
Accumulated other comprehensive income 25 11
Accumulated deficit (8,904) (5,345)
------------ ----------
Total stockholders' equity 21,045 17,198
------------ ----------
Total liabilities and stockholders'
equity $52,090 $47,851
============ ==========
SEGMENT INFORMATION
We have three reportable segments: Medical Capital Equipment,
Healthcare Products Distribution, and Healthcare Services. We evaluate
performance and allocate 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 December
31, 2004:
-----------------
Assets $18,395,000 $13,956,000 $19,739,000 $52,090,000
For the three
months ended
December 31,
2004:
-----------------
Sales and service
revenue $8,879,000 $8,262,000 $5,188,000 $22,329,000
Gross Profit 2,315,000 1,239,000 n/a n/a
Gross Profit % 26% 15% n/a n/a
Loss from
operations $(1,063,000) $(444,000) $(1,838,000) $(3,345,000)
Other (expense),
net (54,000)
------------
Loss before taxes $(3,399,000)
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 three
months ended
December 31,
2003:
-----------------
Sales and service
revenue $8,239,000 $8,850,000 $4,541,000 $21,630,000
Gross Profit 2,019,000 1,364,000 n/a n/a
Gross Profit % 25% 15% n/a n/a
Income (loss)
from operations $(634,000) $127,000 $(14,000) $(521,000)
Other income, net 19,000
------------
Loss before taxes $(502,000)
Medical Healthcare
Capital Products Healthcare
Equipment Distribution Services Total
------------ ------------- ------------ ------------
As of December
31, 2004:
-----------------
Assets $18,395,000 $13,956,000 $19,739,000 $52,090,000
For the nine
months ended
December 31,
2004:
-----------------
Sales and service
revenue $32,530,000 $27,979,000 $16,050,000 $76,559,000
Gross Profit 8,423,000 3,624,000 n/a n/a
Gross Profit % 26% 13% n/a n/a
Loss from
operations $(141,000) $(1,267,000) $(1,445,000) $(2,853,000)
Other (expense),
net (157,000)
------------
Loss before taxes $(3,010,000)
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 nine
months ended
December 31,
2003:
-----------------
Sales and service
revenue $23,991,000 $27,690,000 $11,478,000 $63,159,000
Gross Profit 6,374,000 3,614,000 n/a n/a
Gross Profit % 27% 13% n/a n/a
Loss from
operations $(690,000) $(456,000) $(649,000) $(1,795,000)
Other (expense),
net (57,000)
------------
Loss before taxes $(1,852,000)
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