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Chindex International, Inc. Announces Results for the Quarter and Nine Months Ended December 31, 2007
Date:2/8/2008

BETHESDA, Md., Feb. 8 /Xinhua-PRNewswire/ -- Chindex International, Inc. (Nasdaq: CHDX), an independent American provider of Western healthcare services and products in the People's Republic of China, today announced profitable results for the quarter and nine months ended December 31, 2007, including a 473% increase and a 206% increase respectively, in net income.

Revenue for the quarter ended December 31, 2007 was $36.0 million, a 19% increase over revenue of $30.3 million in the quarter ended December 31, 2006. Net income from continuing operations for the quarter ended December 31, 2007 was $3.9 million, or earnings per basic share on continuing operations of $0.50. This compares to a net income from continuing operations of $0.7 million, or earnings per basic share on continuing operations of $0.10 for the quarter ended December 31, 2006.

Revenue for the nine months ended December 31, 2007 was $95.4 million, a 17% increase over revenue of $81.2 million in the nine months ended December 31, 2006. Net income from continuing operations for the nine months ended December 31, 2007 was $6.3 million, or earnings per basic share on continuing operations of $0.85. This compares to a net income from continuing operations of $2.3 million, or earnings per basic share on continuing operations of $0.34 for the nine months ended December 31, 2006.

As a result of an equity financing transaction entered into during the quarter, the Company's balance sheet as of December 31, 2007 strengthened to show cash, cash equivalents and restricted cash of $58.0 million, total assets of $115.1 million, a current ratio of 3.3:1 and stockholders' equity of $49.2 million.

Roberta Lipson, Chindex CEO commented on the results for the quarter: "Our continuing top and bottom line performance on a consolidated basis this quarter was again led by an increase in the profitability of our Healthcare Services division. This was fueled by continued growth in inpatient and outpatient results in both the Beijing and Shanghai markets. Our development program for new United Family Healthcare facilities in Guangzhou and Beijing is entering a new phase. Since our last quarterly report, we have completed a series of equity and debt financings that will provide us with $105 million in total financing. We are currently implementing our market entry program in Guangzhou with the commencement of construction of an outpatient clinic center, and moving forward the initial phases of our main hospital facility development program. We were also pleased to announce our active participation in programs related the Olympics to be held in Beijing this summer."

"The Medical Products division reported profitable results for the quarter due to strong performance in imaging and surgical product categories. The market issues which have been impacting us over the past several quarters have not abated completely, however the pent up demand for imported medical devices which has been accumulating over the past two years is driving sales throughout the country now. Our outlook for the Medical Products division continues to be optimistic. We believe the conditions are aligned for continuing good performance in this division in the future."

About Chindex International, Inc.

Chindex is an American healthcare company that provides healthcare services and supplies medical capital equipment, instrumentation and products to the Chinese marketplace, including Hong Kong. It provides healthcare services through the operations of its United Family Hospitals and Clinics, a network of private primary care hospitals and affiliated ambulatory clinics in China. The Company's hospital network currently operates in the Beijing and Shanghai metropolitan areas. The Company sells medical products manufactured by various major multinational companies, including Siemens AG, which is the Company's exclusive distribution partner for the sale and servicing of color doppler ultrasound systems. It also arranges financing packages for the supply of medical products to hospitals in China utilizing the export loan and loan guarantee programs of both the U.S. Export-Import Bank and the German KfW Development Bank. With twenty-six years of experience, 1,000 employees, operations in mainland China and Hong Kong, offices in the United States and Germany, the Company's strategy is to expand its cross-cultural reach by providing leading edge healthcare technologies, quality products and services to Greater China's professional communities. Further company information may be found at the Company's websites, http://www.chindex.com and http://www.unitedfamilyhospitals.com.

Statements made in this press release relating to plans, strategies, objectives, economic performance and trends and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, the factors set forth under the heading "Risk Factors" in our annual report on Form 10-K for the year ended March 31, 2007, updates and additions to those "Risk Factors" in our interim reports on Form 10-Q, Forms 8-K and in other documents filed by us with the Securities and Exchange Commission from time to time. Forward-looking statements may be identified by terms such as "may", "will", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "forecasts", "potential", or "continue" or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We have no obligation to update these forward- looking statements.

Contact:

Lawrence Pemble

Judy Zakreski

Chindex International, Inc.

(301) 215-7777

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(thousands except share and per share data)

(Unaudited)

Three months ended Nine months ended

December 31, December 31,

2007 2006 2007 2006

Product sales $18,316 $17,628 $47,079 $46,115

Healthcare services revenue 17,695 12,716 48,355 35,124

Total revenue 36,011 30,344 95,434 81,239

Cost and expenses

Product sales costs 13,131 13,700 34,417 34,949

Healthcare services costs 13,724 11,023 37,693 30,020

Selling and marketing expenses 3,153 2,619 8,619 7,205

General and administrative

expenses 2,069 1,828 6,792 5,359

Income from continuing operations 3,934 1,174 7,913 3,706

Other (expenses) and income

Interest expense (198) (185) (573) (571)

Interest income 358 64 500 188

Miscellaneous (expense) income -

net (124) (7) (171) (2)

Income from continuing operations

before income taxes 3,970 1,046 7,669 3,321

Provision for income taxes (76) (367) (1,328) (987)

Net income from continuing

operations 3,894 679 6,341 2,334

Loss from discontinued operations 0 0 (0) (264)

Net income $3,894 $679 $6,341 $2,070

Net income (loss) per common

share - basic

Continuing operations $.50 $.10 $.85 $.34

Discontinued operations (.00) (.00) (.00) (.04)

Net income $.50 $.10 $.85 $.30

Weighted average shares

outstanding - basic 7,722,607 6,880,642 7,463,346 6,787,848

Net income (loss) per common

share - diluted

Continuing operations $.42 $.09 $.73 $.31

Discontinued operations (.00) (.00) (.00) (.04)

Net income $.42 $.09 $.73 $.27

Weighted average shares

outstanding - diluted 9,417,565 7,609,578 8,691,892 7,611,422

CONSOLIDATED CONDENSED BALANCE SHEETS

(thousands except share data)

December 31, March 31,

2007 2007

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents $56,358 $9,106

Restricted cash 1,640 1,590

Trade accounts receivable, less allowance for

doubtful accounts of $3,640 and $2,827,

respectively

Product sales receivables 13,697 13,133

Patient service receivables 7,686 6,104

Inventories 9,800 7,835

Deferred income taxes 3,659 2,463

Other current assets 3,682 3,153

Total current assets 96,522 43,384

Property and equipment, net 17,342 18,482

Long-term deferred income taxes 95 607

Other assets 1,156 434

Total assets $115,115 $62,907

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued expenses $26,092 $22,877

Short-term portion of capitalized leases 33 36

Short-term debt and vendor financing 1,038 2,710

Income taxes payable 2,142 629

Total current liabilities 29,305 26,252

Long-term portion of capitalized leases 33 58

Long-term debt and vendor financing 36,594 8,679

Total liabilities 65,932 34,989

Commitments and contingencies

Stockholders' equity:

Preferred stock, $.01 par value, 500,000 shares

authorized, none issued 0 0

Common stock, $.01 par value, 28,200,000 shares

authorized, including 3,200,000 designated Class B:

Common stock - 7,151,011 and 6,332,345 shares

issued and outstanding at December 31, 2007

and March 31, 2007, respectively 72 63

Class B stock - 775,000 shares issued and

outstanding at December 31, 2007 and

March 31, 2007, respectively 8 8

Additional paid in capital 53,658 38,947

Accumulated other comprehensive income 310 106

Accumulated deficit (4,865) (11,206)

Total stockholders' equity 49,183 27,918

Total liabilities and stockholders' equity $115,115 $62,907

SEGMENT INFORMATION

The Company operates in two businesses: Healthcare Services and Medical Products. The Company evaluates performance and allocates resources based on profit or loss from operations before income taxes, not including foreign exchange gains or losses. The following segment information has been provided per Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information:"

Healthcare Services Medical Products Total

As of December 31, 2007:

Assets $84,000,000 $31,115,000 $115,115,000

For the three months

ended December 31, 2007:

Sales and service revenue $17,695,000 $18,316,000 $36,011,000

Gross Profit n/a * 5,185,000 n/a

Gross Profit % n/a * 28% n/a

Income from continuing

operations before foreign

exchange $3,220,000 $197,000 $3,417,000

Foreign exchange gain 517,000

Income from continuing

operations $3,934,000

Other income, net 36,000

Income from continuing

operations before income taxes $3,970,000

Healthcare Services Medical Products Total

As of March 31, 2007:

Assets $34,129,000 $28,778,000 $62,907,000

For the three months

ended December 31, 2006:

Sales and service revenue $12,716,000 $17,628,000 $30,344,000

Gross Profit n/a * 3,928,000 n/a

Gross Profit % n/a * 22% n/a

Income (loss) from continuing

operations before foreign

exchange $1,122,000 $(74,000) $1,048,000

Foreign exchange loss 126,000

Income from continuing operations $1,174,000

Other(expense), net (128,000)

Income from continuing

operations before income taxes $1,046,000

Healthcare Services Medical Products Total

As of December 31, 2007:

Assets $84,000,000 $31,115,000 $115,115,000

For the nine months

ended December 31, 2007:

Sales and service revenue $48,355,000 $47,079,000 $95,434,000

Gross Profit n/a * 12,662,000 n/a

Gross Profit % n/a * 27% n/a

Income (loss) from continuing

operations before foreign

exchange $8,057,000 ($1,003,000) $7,054,000

Foreign exchange gain 859,000

Income from continuing operations $7,913,000

Other (expense), net (244,000)

Income from continuing

operations before income taxes $7,669,000

Healthcare Services Medical Products Total

As of March 31, 2007:

Assets $34,129,000 $28,778,000 $62,907,000

For the nine months

ended December 31, 2006:

Sales and service revenue $35,124,000 $46,115,000 $81,239,000

Gross Profit n/a * 11,166,000 n/a

Gross Profit % n/a * 24% n/a

Income from continuing

operations before foreign

exchange $3,405,000 $104,000 $3,509,000

Foreign exchange gain 197,000

Income from continuing operations $3,706,000

Other (expense), net (385,000)

Income from continuing

operations before income taxes $3,321,000

* Gross profit margins are not routinely calculated in the healthcare

industry.


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SOURCE Chindex International, Inc.
Copyright©2008 PR Newswire.
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