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BETHESDA, MARYLAND undefined March 30, 2001 - 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
Peopleundefineds Republic of China, today announced results for its
year end and fourth quarter ended December 31, 2000. With another
year of record revenues, the Company reported $0.76 earnings per
share, continuing its strong growth trend.
Revenue for the year 2000 was a record $45.1 million with a net
profit of $641,000, or earnings per share of $0.76. This compares to
revenue for the year 1999 of $37.1 million with net profit of
$392,000, or earnings per share of $0.49.
Revenue for the fourth quarter of 2000 was $19.1 million with a
net profit of $1.2 million, or earnings per share of $1.37. This
compares to revenue of $7.5 million with a net loss of $287,000, or
a loss per share of $0.36 for the fourth quarter of 1999.
The The Companyundefineds balance sheet as of December 31, 2000
showed cash and cash equivalents of $3.8 million, total assets of
$36.5 million, a current ratio of 1.4:1 and shareholdersundefined
equity of $13.2 million.
Chindex Chairperson, President and CEO, Roberta Lipson, speaking
from Beijing, commented on the strong growth trend in all segments
of Chindex business: "Our strategy of long term investment in new
healthcare businesses in China is paying off. As we move forward in
2001 and beyond we believe we will continue to see the strong upward
trends continue and accelerate as these business platforms mature
and achieve planned efficiencies of scale. In 2000 our Healthcare
Products segment achieved 18% growth in revenues over the prior year
and Healthcare Services achieved 52% growth.
"Sales of capital medical equipment in the Healthcare Products
segment in 2000 was again highlighted by substantial shipments under
our loan program, which we have designed for our customers and is
guaranteed by the U.S. Export-Import Bank. Of our total capital
equipment sales of over $26 million this year, approximately $9
million was delivered under Ex-Im loan financing, with the program
continuing in 2001. Our loan financing facilities have become an
established component of our equipment business.
"We are pleased to note that when Siemens acquired one of our
principal clients, Acuson, in late 2000, Chindex was retained as the
exclusive distributor for the entire color doppler ultrasound
platform, including the existing Siemens systems. This will provide
a significantly expanded ultrasound product portfolio for us going
forward.
"Our Healthcare Products segment also includes our fast-growing
distribution business. In 2000 this business unit saw sales of over
$12 million or a full 32% of the total revenue for the segment and
growth over the prior year of over 100%. Our investment over the
past several years has set the stage for this caliber of rapid
increase in this business which provides products and services to
the hospital, retail pharmacy and third party logistics markets. In
2001 we will continue our aggressive investment in the growth of
this new business with new product offerings to the hospital
markets, the launch of Summerundefineds Eve brand of feminine
hygiene products to the retail pharmacy markets, and the expansion
of our third party logistics services to include other multinational
clients in the healthcare industry.
"Our Healthcare Services segment reported its first profitable
year in 2000. Beijing United Family Hospital posted earnings of
$218,000 for the year. While one would normally expect a new startup
hospital to show losses on operations for five or more years, our
facility has achieved profitability in just three years. We are
currently developing plans for the expansion of the physical
facility at Beijing United to triple the number of beds over the
next two years. While Beijing United has been the flagship center
for international-standard healthcare services in Beijing for the
expatriate community since its inception, we are happy to report
that in 2000 we began marketing our services more directly to the
local Chinese population and have seen a steady increase in business
from those efforts. We expect that trend to continue into 2001,"
Lipson concluded.
Chindex is the leading independent American company in healthcare
in the Greater Chinese marketplace including Hong Kong. It provides
representative and distribution services to a number of major
multinational companies including Acuson, a Siemens company,
(diagnostic ultrasound scanners), Johnson & Johnson (clinical
chemistry analyzers), Guidant (interventional cardiology products
including stents, balloon catheters, and guide wires) and
Tyco/Kendall Healthcare Products (including brands such as Davis
& Geck, Sherwood, Kendall, and Curity). It also provides
healthcare services through the operations of its private hospital
corporation in China. With twenty years of experience, approximately
370 employees, and operations in the United States, 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. Further company
information may be found at the Chindex website, www.chindex.com.
The statements in this press release that relate to future
plans, events or performance are forward-looking statements that
involve risks and uncertainties, including risks associated with
uncertainties pertaining to the Companyundefineds (i) performance
goals, including successful conclusion of efforts to secure
government-backed financing, (ii) future events and earnings,
including revenues from the Companyundefineds developmental
businesses such as healthcare services, (iii) markets, including
growth in demand in China for the Companyundefineds products and
services, and (iv) proposed new operations, including expansion of
its healthcare services business. 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. 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 |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2000 |
|
1999 |
|
2000 |
|
1999 |
Total sales and service revenue |
|
|
$ |
19,131,000 |
|
|
|
$ |
7,517,000 |
|
|
|
$ |
45,064,000 |
|
|
|
$ |
37,128,000 |
|
Cost and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
|
13,580,000 |
|
|
|
|
4,729,000 |
|
|
|
|
30,529,000 |
|
|
|
|
25,561,000 |
|
|
Salaries and payroll taxes |
|
|
|
2,334,000 |
|
|
|
|
1,459,000 |
|
|
|
|
7,777,000 |
|
|
|
|
6,349,000 |
|
|
Travel and entertainment |
|
|
|
707,000 |
|
|
|
|
571,000 |
|
|
|
|
1,897,000 |
|
|
|
|
1,560,000 |
|
|
Other |
|
|
|
1,457,000 |
|
|
|
|
994,000 |
|
|
|
|
4,709,000 |
|
|
|
|
3,879,000 |
|
Total Costs and Expenses |
|
|
|
18,078,000 |
|
|
|
|
7,753,000 |
|
|
|
|
44,912,000 |
|
|
|
|
37,349,000 |
|
Income/(loss) from operations |
|
|
|
1,053,000 |
|
|
( |
|
236,000 |
) |
|
|
|
152,000 |
|
|
( |
|
221,000 |
) |
Minority Interest |
|
( |
|
5,000 |
) |
|
|
|
-- |
|
|
( |
|
36,000 |
) |
|
( |
|
18,000 |
) |
Other income and (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
( |
|
19,000 |
) |
|
|
|
-- |
|
|
( |
|
94,000 |
) |
|
|
|
-- |
|
|
Interest income |
|
|
|
90,000 |
|
|
|
|
91,000 |
|
|
|
|
200,000 |
|
|
|
|
308,000 |
|
|
Miscellaneous income - net |
|
|
|
76,000 |
|
|
|
|
71,000 |
|
|
|
|
558,000 |
|
|
|
|
588,000 |
|
Income before income taxes |
|
|
|
1,195,000 |
|
|
( |
|
74,000 |
) |
|
|
|
780,000 |
|
|
|
|
657,000 |
|
Provision for income taxes |
|
( |
|
19,000 |
) |
|
( |
|
212,000 |
) |
|
( |
|
139,000 |
) |
|
( |
|
265,000 |
) |
Net income/(loss) |
|
|
$ |
1,176,000 |
|
|
( |
$ |
286,000 |
) |
|
|
$ |
641,000 |
|
|
|
$ |
392,000 |
|
Net income per common share - basic |
|
|
$ |
1.38 |
|
|
|
$ |
0.36 |
|
|
|
$ |
0.79 |
|
|
|
$ |
0.49 |
|
Weighted average shares outstanding - basic |
|
|
|
851,069 |
|
|
|
|
790,313 |
|
|
|
|
808,722 |
|
|
|
|
790,313 |
|
Net income per common share - diluted |
|
|
$ |
1.37 |
|
|
|
$ |
0.36 |
|
|
|
$ |
0.76 |
|
|
|
$ |
0.49 |
|
Weighted average shares outstanding - diluted |
|
|
|
861,069 |
|
|
|
|
790,513 |
|
|
|
|
838,716 |
|
|
|
|
794,527 |
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