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BETHESDA, MARYLAND (August 14, 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 People's Republic of China, today announced its second quarter and six month results.
Revenue for this year's second quarter was $13.2 million with a net loss of $225,000 or a loss per share of $0.26. This compares to revenue of $9.5 million with net income of $116,000 or earnings per share of $0.15 for the same period last year.
Revenue for this year’s six-month period was $23.8 million with a net loss of $200,000 or a loss per share of $0.23. This compares to revenue of $16.5 million with a net loss of $233,000 or a loss per share of $0.29 for the same period last year.
The Company noted that for the past twenty years its business has operated on an annualized basis. Historical operating results have varied significantly from period to period. These fluctuations are expected to continue due to the nature of the Healthcare Products segment of the Company’s business.
Chindex is a leading 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), Becton-Dickinson (including vascular access, infusion and critical care systems), 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 Company’s (i) performance goals, including successful conclusion of efforts to secure government-backed financing, (ii) future events and earnings, including revenues from the Company’s developmental businesses such as healthcare services, (iii) markets, including growth in demand in China for the Company’s 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.
| U.S.-CHINA INDUSTRIAL EXCHANGE, INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Unaudited) |
| |
Three Months Ended June 30, |
|
Year Ended June 30, |
| |
2001 |
|
2000 |
|
2001 |
|
2000 |
|
| Total sales and service revenue |
|
$ |
13,201,000 |
|
$ |
9,462,000 |
|
$ |
23,807,000 |
|
$ |
16,502,000 |
|
| Cost and Expenses |
| Cost of goods sold |
|
8,986,000 |
|
6,217,000 |
|
15,935,000 |
|
10,821,000 |
|
| Salaries and payroll taxes |
|
2,502,000 |
|
1,919,000 |
|
4,678,000 |
|
3,491,000 |
|
| Travel and entertainment |
|
533,000 |
|
411,000 |
|
874,000 |
|
690,000 |
|
| Other |
|
1,449,000 |
|
1,116,000 |
|
2,596,000 |
|
2,077,000 |
|
| (Loss)/income from operations |
|
( |
269,000 |
) |
( |
201,000 |
) |
( |
276,000 |
) |
( |
577,000 |
) |
| Minority Interest |
|
( |
4,000 |
) |
( |
3,000 |
) |
( |
9,000 |
) |
( |
26,000 |
) |
| Other income and (expenses) |
| Interest expense |
|
( |
5,000 |
) |
( |
6,000 |
) |
( |
14,000 |
) |
( |
32,000 |
) |
| Interest income |
|
2,000 |
|
36,000 |
|
4,000 |
|
58,000 |
|
| Miscellaneous income - net |
|
99,000 |
|
273,000 |
|
198,000 |
|
383,000 |
|
| (Loss)/income before income taxes |
|
( |
140,000 |
) |
|
72,000 |
|
( |
11,000 |
) |
|
195,000 |
|
| (Provision)/benefit for income taxes |
|
( |
85,000 |
) |
|
44,000 |
|
( |
189,000 |
) |
( |
38,000 |
) |
| Net (loss)/income |
|
($ |
225,000 |
) |
$ |
116,000 |
|
($ |
200,000 |
) |
($ |
233,000 |
) |
| Net (loss)/income per common share - basic and diluted |
|
$ |
0.26 |
|
$ |
0.15 |
|
$ |
0.23 |
|
$ |
0.29 |
|
| Weighted average shares outstanding - basic and diluted |
|
851,069 |
|
790,557 |
|
851,069 |
|
790,435 |
|
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