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BETHESDA, MARYLAND (August 14, 2002) . . . . Chindex International, Inc. (NASDAQ: CHDX), 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 $15.0 million with a net loss of $207,000 or a loss per share of $0.24. This compares to revenue of $13.2 million with a net loss of $225,000 or a loss per share of $0.26 for the second quarter of 2001.
Revenue for this year’s six-month period was $30.5 million with a net loss of $399,000 or a loss per share of $0.47. This compares to revenue of $23.8 million with a net loss of $200,000 or a loss per share of $0.23 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 Capital Medical Equipment segment of the Company’s business.
Roberta Lipson, Chindex President and CEO commented on the Company’s results and growth trends:
“Chindex continues to be a leader in healthcare in China. We expect to experience period to period fluctuations as we have in the past. We have historically seen strong growth trends in our businesses over time and we believe we are well positioned for the future.
“Our results through six months in our Healthcare Products Distribution and Healthcare Services segments show significant growth over the prior year. Healthcare Products revenue increased 43% and Healthcare Services revenue increased 54%. Operating results in both segments improved significantly. In the Capital Medical Equipment segment revenue increased 6%. Operating results decreased significantly due to the impact of the timing and composition of major tenders as well as the ongoing competitive pricing pressures due to the Chinese tendering regulations. We are now finalizing the next phase of our loan program contracts which we expect will be valued at approximately $7 million and additional supply contracts awarded as a result of a major equipment tender which appointed us the sole supplier of echocardiography. Both of these programs should begin shipping in the third quarter,” Lipson concluded.
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 Siemens AG (diagnostic color ultrasound scanners under the Acuson and Siemens brand names), Becton-Dickinson (including vascular access, infusion and critical care systems), Johnson & Johnson (clinical chemistry analyzers), and Guidant (interventional cardiology products including stents, balloon catheters, and guide wires). It also provides healthcare services through the operations of its private hospital corporation in China. With more than twenty years of experience, over 500 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 and www.beijingunited.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, |
| |
2002 |
|
2001 |
|
2002 |
|
2001 |
|
| Total sales and service revenue |
|
$ |
14,968,000 |
|
$ |
13,201,000 |
|
$ |
30,546,000 |
|
$ |
23,807,000 |
|
| Cost and Expenses |
| Cost of goods sold |
|
9,995,000 |
|
8,986,000 |
|
20,917,000 |
|
15,935,000 |
|
| Salaries and payroll taxes |
|
3,455,000 |
|
2,502,000 |
|
6,498,000 |
|
4,678,000 |
|
| Travel and entertainment |
|
540,000 |
|
533,000 |
|
977,000 |
|
874,000 |
|
| Other |
|
1,575,000 |
|
1,449,000 |
|
3,044,000 |
|
2,596,000 |
|
| Loss from operations |
|
( |
597,000 |
) |
( |
269,000 |
) |
( |
890,000 |
) |
( |
276,000 |
) |
| Minority Interest |
|
( |
23,0000 |
|
( |
4,000 |
) |
|
23,000 |
|
( |
9,000 |
) |
| Other income and (expenses) |
| Interest expense |
|
( |
7,000 |
) |
( |
2,000 |
) |
( |
11,000 |
) |
( |
4,000 |
) |
| Interest income |
|
12,000 |
|
36,000 |
|
27,000 |
|
80,000 |
|
| Miscellaneous income - net |
|
3,000 |
|
99,000 |
|
( |
20,000 |
|
( |
198,000 |
) |
| Loss before income taxes |
|
( |
612,000 |
) |
( |
140,000 |
) |
( |
917,000 |
) |
( |
11,000 |
) |
| Benefit from (provision for) income taxes |
|
405,000 |
|
( |
85,000 |
) |
|
518,000 |
|
( |
189,000 |
) |
| Net Loss |
|
( |
207,000 |
) |
( |
225,000 |
) |
( |
399,000 |
) |
( |
200,000 |
) |
| Net loss per common share - undefined basic and diluted |
|
( |
0.24 |
) |
( |
0.26 |
) |
( |
0.47 |
) |
( |
0.23 |
) |
| Weighted average shares outstanding - outstanding undefined basic and diluted |
|
859,861 |
|
851,069 |
|
856,062 |
|
851,069 |
|
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