Chindex International Inc. Announces Third Quarter 1998 Results.BETHESDA, Md.--(BW HealthWire)--Nov. 16, 1998--Chindex International Inc. (Nasdaq: CHDX) (U.S.-China Industrial Exchange Inc.), the leading independent American company providing Western healthcare products distribution 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, Monday announced results for its third quarter and nine months ended Sept. 30, 1998. Revenue for this year's third quarter was $3.4 million with a net loss of $737,000, or a loss per share of $0.12. This compares with revenue of $6.9 million with a net loss of $456,000 or a loss per share of $0.07 for the same period last year. Revenue for this year's nine month period was $11.8 million with a net loss of $2.8 million or a loss per share of $0.45. This compares with revenue of $16.4 million with a net loss of $1.1 million or a loss per share of $0.17 for the same period last year. The company noted that the foregoing financial results were and continue to be significantly impacted negatively by a variety of factors including inability of customers to make purchase commitments or open letters of credit because of new foreign exchange documentation and procedural requirements, and delays in purchase commitments related to uncertainty regarding foreign exchange regulations and exchange rates. The company believes that these problems and uncertainties reflect a growing impact of the ongoing Asian financial crisis on China. Chindex Chairperson chairperson Chairman The head of an academic department. See 'Chair.', Cf Chief. , President and Chief Executive Officer Roberta Lipson, speaking from Beijing, commented on the third quarter results and the factors currently impacting Chindex business: "Our results for the third quarter and nine months reflect the impact which the Asian financial crisis is having on China. Our company has responded to these challenges and will continue to do so by taking decisive restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and cost reduction measures. Our strategic diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. of our revenue base is moving forward with increasing proportions of our revenue coming from healthcare services and 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!" products. "We are very pleased with the progress of Beijing United Family Hospital. Revenues have been growing quickly and, after less than a year of operation, the hospital is quickly approaching positive cash flow on monthly operations. In addition, the first satellite clinic for dentistry dentistry, treatment and care of the teeth and associated oral structures. Dentistry is mainly concerned with tooth decay, disease of the supporting structures, such as the gums, and faulty positioning of the teeth. will be opening at Beijing United early next year which will further expand the facility's revenue base. This segment of our business is not impacted at all by the foreign exchange regulations and other market conditions we are facing elsewhere in our business. "We are close to final approvals on our $14.1 million loan program to be guaranteed by the Export-Import Bank of the United States Export-Import Bank of the United States (Ex-Im Bank) One of the principal U.S. government agencies in international finance. Originally incorporated as the Export-Import Bank of Washington in 1934, its goal is to help finance U.S. . This loan program is also not affected by the new foreign exchange restrictions and we are targeting shipment of these orders late this year. This will be the largest loan program ever for the supply of medical equipment to the Chinese healthcare system. Chindex is proud to have worked closely with the U.S. and Chinese Governments Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
"1998 continues to be a challenging year for all foreign businesses in China. The new foreign exchange regulations that have been implemented by the Chinese Government have received substantial coverage in the Western press and are continuing to impede im·pede tr.v. im·ped·ed, im·ped·ing, im·pedes To retard or obstruct the progress of. See Synonyms at hinder1. [Latin imped our transactional business substantially. While we see this as a transition period in the market conditions in China, we do expect these 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 to continue to impact us in the near term." Chindex is a leading American company in healthcare in the Greater 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. and Macau. It provides representative and distribution services to a number of multinational companies including Acuson, Johnson & Johnson, and Kendall Ken·dall , Edward Calvin 1886-1972. American biochemist. He shared a 1950 Nobel Prize for discoveries concerning the hormones of the adrenal cortex. Healthcare Products. It also operates a private hospital corporation in China. With over 16 years experience, 200 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 Chindex strategy is to expand its cross-cultural reach by providing leading edge technologies, quality products and services to Greater China's professional communities. Chindex is listed on Nasdaq under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors CHDX. More information is available at the company's Web site: www.chindex.com. The statements in this news release that relate to future plans, events or performance are 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. that involve risks and uncertainties, including risks associated with uncertainties pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to customer oders, demand for products and services, development of markets for the company's products and services and other risks identified in the company's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
CHINDEX INTERNATIONAL INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
Sales $ 3,365,000 $ 6,755,000 $11,770,000 $16,010,000
Net commission
income 0 178,000 16,000 374,000
Total Revenue 3,365,000 6,933,000 11,786,000 16,384,000
Costs and Expenses
Cost of goods sold 2,167,000 5,035,000 7,868,000 11,705,000
Salaries and
payroll taxes 1,421,000 1,275,000 3,828,000 3,130,000
Travel and
entertainment 288,000 627,000 1,045,000 1,575,000
Other 767,000 1,022,000 2,852,000 2,597,000
(1,278,000) (1,026,000) (3,807,000) (2,623,000)
Other income and expenses
Interest expense (34,000) 0 (73,000) 0
Interest income 98,000 119,000 206,000 417,000
Miscellaneous income 440,000 140,000 866,000 420,000
Total other income 504,000 259,000 999,000 837,000
Minority Interest (12,000) -- (12,000) --
Loss before provision
for taxes (786,000) (767,000) (2,820,000) (1,786,000)
Benefit from income
taxes 49,000 311,000 5,000 735,000
Net loss $(737,000) $(456,000) $(2,815,000) $(1,051,000)
Net loss per share $ (0.12) $ (0.07) $ (0.45) $ (0.17)
Weighted average
shares
outstanding 6,322,500 6,322,500 6,322,500 6,322,500
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