Navigation Links
Chindex International, Inc. Reports Fourth Quarter and Full Year Fiscal 2009 Financial Results
Date:6/11/2009

BETHESDA, Md., June 11 /PRNewswire-Asia/ -- Chindex International, Inc. (Nasdaq: CHDX), a leading independent American provider of Western healthcare products and services in the People's Republic of China, today announced results for its fourth quarter and fiscal year, ended March 31, 2009.

Fourth Quarter 2009 Financial Results

Revenue for the fourth quarter, which ended March 31, 2009, increased 72% to $60.0 million from $34.6 million in the fourth quarter of fiscal year 2008. Revenue from the Medical Products division increased 130% to $39.5 million from $17.2 million in the prior year period, and revenue from the Healthcare Services division increased 16% to $20.2 million from $17.5 million in the fourth quarter of fiscal year 2008. Revenue performance reflects the recognition of revenue for certain government-backed loan programs, as well as increased medical products sales such as daVinci units, and growth in inpatient and outpatient revenues in the hospital division.

During the quarter, the Company recorded income from operations of $3.9 million, an increase of 806% from $426,000 in the same quarter of last year. Total operating costs and expenses increased 63% during the quarter to $55.8 million from $34.2 million in the prior year period.

Increased operating costs include $536,000 of development and startup expenses for new clinics, as well as non-cash stock compensation expense of $848,000, multi-year physician contracts renewed at higher rates in calendar 2008, additional medical personnel in Beijing and Shanghai hospitals, increased direct patient care costs and increased medical products selling activities.

Roberta Lipson, President and CEO of Chindex, commented, "During the fourth quarter and full year, we achieved our goals to make substantial progress on our KfW and U.S. Export-Import Bank contracts, and enhanced our revenue performance in hospital services, although patient volumes were slightly less than anticipated. Healthcare reform continues to be a key focus of ours and we continue to believe that the reform plan which includes significant investment from the PRC and emphasizes private sector investment for premium services. This should drive further market opportunity for UFH. In addition, we believe the recently announced stimulus package will augment the medical product market size over time. We continue to believe that Chindex is well positioned to benefit from these efforts over the long term."

The Company recorded a $615,000 provision for taxes, or an effective tax rate of 15.3%, in the three months ended March 31, 2009 as compared to a provision for taxes of $714,000, or an effective tax rate of 36.2%, for the three months ended March 31, 2008. The prior period tax expense includes the negative effect of losses in entities for which Chindex cannot recognize a benefit in accordance with SFAS 109, "Accounting for Income Taxes."

Net income for the quarter ended March 31, 2009 was $3.4 million, or $0.22 per diluted share. This compares to net loss of $2.7 million, or $(0.20) per diluted share, for the quarter ended March 31, 2008.

Full Year 2009 Financial Results

During the fiscal year 2009, revenue increased 32% to $171.4 million from $130.1 million for the prior year. Revenue from the Medical Products division increased 43% to $92.1 million from $64.2 million in the prior year, and revenue from the Healthcare Services division increased 21% to $79.4 million from $65.8 million in fiscal year 2008.

During the year, the Company recorded income from operations of $8.2 million, a decrease of 1.2% from $8.3 million in the 2008 fiscal year. Total operating costs and expenses for fiscal year 2009 increased 34% to $163.2 million from $121.8 million in the prior year period.

The Company recorded a $2.7 million provision for taxes, or an effective tax rate of 35.1%, in the fiscal year 2009, compared to a provision for taxes of $2.0 million, or an effective tax rate of 35.8%, for the fiscal year 2008.

In the fiscal year 2009, net income increased 36% to $5.0 million, or $0.31 per diluted share, from $3.7 million, or $0.27 per diluted share, in the prior year. Non-cash stock compensation expense was $2.9 million during the fiscal year 2009 compared to $1.3 million in the prior year.

Medical Products division business results:

For the fourth quarter of fiscal year 2009, revenue increased 130% to $39.5 million from $17.2 million in the prior year quarter. Gross profit for the Medical Products division increased to $9.0 million from $3.9 million in the prior year's fourth quarter. Gross profit margin was 23%, flat from the prior year period and in line with historical averages. Selling, marketing, general and administrative expenses for the Medical Products division increased 15% to $6.3 million from $5.5 million in the fourth quarter of the prior year. Increased expenses during the period were a result of increased selling activity year over year.

Revenue from the Medical Products division was $92.1 million in the fiscal year 2009, an increase of 43% from $64.2 million in the prior year. Gross profit in the division was $23.1 million, which yielded a gross margin of 25%, compared to $16.6 million, which yielded a gross margin of 26%, in the fiscal year 2008. Selling, marketing, general and administrative expenses for the Medical Products division increased 18% to $22.6 million from $19.2 million in the prior year, reflecting the increased selling activity.

Lipson added, "As expected, our fourth quarter performance was strong in the Medical Products division. Financial performance reflects our team's dedication through the fiscal year as we recognized revenue for products shipped during the quarter. We also saw continued demand for high-end equipment such as daVinci during the fourth quarter. Our Medical Products division continues to be well positioned to capitalize on the increased need for high end, high margin medical products in China."

Healthcare Services division business results:

Revenue in the fourth quarter of the fiscal year 2009 was $20.2 million, an increase of 16% from $17.5 million in the prior year. Operating costs increased by 24% to $18.8 million from $15.2 million in the prior year's fourth quarter, reflecting multi-year physician contracts renewed at higher rates in calendar 2008, additional medical personnel in Beijing and Shanghai hospitals, staffing for the Guangzhou clinic opening and increased direct patient care costs. Income from operations before foreign exchange gains was $1.3 million, a 41% decrease from the $2.3 million in the prior year period.

Revenue in the fiscal year 2009 was $79.4 million, an increase of 21% from $65.8 million in the prior year. Operating costs increased 30% to $72.1 million from $55.5 million in the prior year period, reflecting higher costs referenced above. Income from operations before foreign exchange gains was $7.3 million, a 29% decrease over the $10.3 million in the prior year period. Development and startup costs, including post-opening expenses, were $2.1 million.

Lipson stated, "Hospital services revenue growth was driven primarily by increased inpatient and outpatient traffic in the Beijing and Shanghai markets. We have a clear growth plan to build out our network of hospitals and clinics and we made additional progress on our Beijing, Shanghai and Guangzhou locations during the fourth quarter. The UFH brand continues to be the leading provider of premium care in China and we believe that our long term opportunity is compelling. Healthcare reform bolsters our opportunity due to its focus on the importance of private sector investment in premium care."

Conference Call

Management will host a conference call today at 8:00 am ET to discuss financial results. To participate in the conference call, international callers dial 1-719-325-4805 and domestic callers dial 1-877-852-6581 approximately 10 minutes before the conference call is scheduled to begin. The telephone replay will be available on the day of the call at (international) 1-719-457-0820 and (domestic) 1-888-203-1112, passcode: 4974069 and continue to be available through June 25, 2009. This call is also being webcast and will be accessible at Chindex's website http://ir.chindex.com/events.cfm . The event will be archived and available for replay through June 25, 2009.

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. Healthcare services are provided 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 Beijing, Shanghai, Guangzhou and Wuxi. The Company sells medical products manufactured by various major multinational companies, including Siemens AG and Intuitive Surgical, for which the Company is the exclusive distribution partner for the sale and servicing of color ultrasound systems and surgical robotic systems respectively. 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-seven years of experience, approximately 1,200 employees, and operations in China, Hong Kong, 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 .

Safe Harbor Statement

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, 2008, 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.

    For further information, please contact:

    Integrated Corporate Relations
     Ashley M. Ammon
     Tel: +1-203-682-8200



                           CHINDEX INTERNATIONAL, INC.
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                 (in thousands except share and per share data)
                                   (Unaudited)

                          Three months ended March 31,    Year ended March 31,
                                    2009        2008        2009        2008
    Product sales                 $39,478     $17,162     $92,085     $64,241
    Healthcare services
     revenue                       20,186      17,462      79,357      65,817
    Total revenue                  59,664      34,624     171,442     130,058

    Cost and expenses
    Product sales costs            30,451      13,266      69,027      47,679
    Healthcare services costs      17,498      14,113      67,084      51,810
    Selling and marketing
     expenses                       3,693       3,556      13,284      12,175
    General and administrative
     expenses                       4,161       3,263      13,888      10,055
        Income from operations      3,861         426       8,159       8,339
        Other (expenses) and
         income
    Interest expense                 (266)     (3,002)     (1,004)     (3,575)
    Interest income                   422         659       1,738       1,159
    Miscellaneous (expense)
     income - net                      15         (55)     (1,242)       (226)
    Income (loss) before
     income taxes                   4,032      (1,972)      7,651       5,697
    Provision for income taxes       (615)       (714)     (2,687)     (2,042)
    Net income (loss)              $3,417     $(2,686)     $4,964      $3,655

    Net income (loss) per
     common share - basic            $.24       $(.20)       $.34        $.32
    Weighted average shares
     outstanding - basic       14,479,237  13,432,561  14,410,033  11,369,607

    Net income (loss) per
     common share - diluted          $.22       $(.20)       $.31        $.27
    Weighted average shares
     outstanding - diluted     15,744,153  13,432,561  16,021,723  13,361,443



                           CHINDEX INTERNATIONAL, INC.
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                        (in thousands except share data)

                                            March 31, 2009    March 31, 2008
    ASSETS
    Current assets:
    Cash and cash equivalents                      $20,293           $79,258
    Restricted cash                                  1,854             1,123
    Investments                                     51,502                --
       Accounts receivable, less
        allowance for doubtful accounts
        of $5,041 and $3,940,respectively
                 Product sales
                  receivables                       37,994            12,098
                 Patient service
                  receivables                        8,837             9,085
    Inventories, net                                11,346             9,796
    Deferred income taxes                            2,410             1,656
    Other current assets                             3,239             3,294
    Total current assets                           137,475           116,310
    Restricted cash                                  1,437                --
    Property and equipment, net                     20,633            18,428
    Noncurrent deferred income taxes                 1,031                --
    Other assets                                     2,061             1,241
    Total assets                                  $162,637          $135,979
    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
    Short-term debt, current portion of
     long-term debt and vendor financing            $1,631               $82
    Current portion of capitalized leases               22                36
    Accounts payable                                12,259             9,938
    Accrued expenses                                20,607            11,064
    Other current liabilities                        4,148             3,571
    Deferred revenue                                 1,539               765
    Income taxes payable                             1,568               349
    Total current liabilities                       41,774            25,805
    Long-term debt, vendor financing and
     convertible debentures                         23,709            22,556
    Long-term deferred revenue                         595                --
    Long-term portion of capitalized
     leases                                             --                22
    Long-term deferred tax liability                   119               208
    Total liabilities                               66,197            48,591
    Commitments and contingencies
    Stockholders' equity:
       Preferred stock, $.01 par value,
        500,000 shares authorized, none
        issued                                          --                --
       Common stock, $.01 par value,
        28,200,000 shares authorized,
        including 3,200,000 designated
        Class B:
        Common stock - 13,452,007  and
         13,074,593 shares issued and
         outstanding at March 31, 2009
         and March 31, 2008, respectively              135               131
        Class B stock - 1,162,500 shares
         issued and outstanding at March 31,
         2009 and March 31, 2008, respectively          12                12
       Additional paid in capital                   95,808            92,586
    Accumulated other comprehensive
     income                                          3,072             2,210
    Accumulated deficit                             (2,587)           (7,551)
                Total stockholders'
                 equity                             96,440            87,388
                Total liabilities and
                 stockholders' equity             $162,637          $135,979



                           CHINDEX INTERNATIONAL, INC.
                               SEGMENT INFORMATION

The Company operates in two businesses: Healthcare Services and Medical Products. The Company evaluates performance and allocates resources based on income 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:" (in thousands)

                                          Healthcare     Medical
                                            Services    Products        Total
    For the three months ended March 31,
     2009:
    Sales and service revenue                $20,186     $39,478      $59,664
    Gross Profit                                n/a *      9,027          n/a
    Gross Profit %                              n/a *        23%          n/a
    Income from operations before foreign
     exchange                                 $1,339      $2,693       $4,032
    Foreign exchange loss                                                (171)
    Income from operations                                             $3,861
    Other income net                                                      171
    Income from operations before income
     taxes                                                             $4,032
    As of March 31, 2009:
    Assets                                   $94,675     $67,962     $162,637

                                          Healthcare     Medical
                                            Services    Products        Total
    For the three months ended March 31,
     2008:
    Sales and service revenue                $17,462     $17,162      $34,624
    Gross Profit                                n/a *      3,896          n/a
    Gross Profit %                              n/a *        23%          n/a
    Income (loss) from operations before
     foreign exchange                         $2,285     $(1,604)        $681
    Foreign exchange loss                                                (255)
    Income from operations                                               $426
    Other(expense), net                                                (2,398)
    (Loss) from operations before income
     taxes                                                            $(1,972)
    As of March 31, 2008:
    Assets                                   $93,727     $42,252     $135,979

                                          Healthcare     Medical
                                            Services    Products        Total
    For the twelve months ended March 31,
     2009:
    Sales and service revenue                $79,357     $92,085     $171,442
    Gross Profit                                n/a *     23,058          n/a
    Gross Profit %                              n/a *        25%          n/a
    Income from operations before foreign
     exchange                                 $7,309        $508       $7,817
    Foreign exchange gain                                                 342
    Income from operations                                             $8,159
    Other (expense), net                                                 (508)
    Income from operations before income
     taxes                                                             $7,651
    As of March 31, 2009:
    Assets                                   $94,675     $67,962     $162,637

                                          Healthcare     Medical
                                            Services    Products        Total
    For the twelve months ended March 31,
     2008:
    Sales and service revenue                $65,817     $64,241     $130,058
    Gross Profit                                n/a *     16,562          n/a
    Gross Profit %                              n/a *        26%          n/a
    Income (loss) from operations before
     foreign exchange                        $10,342     $(2,607)      $7,735
    Foreign exchange gain                                                 604
    Income from operations                                             $8,339
    Other (expense), net                                               (2,642)
    Income from operations before income
     taxes                                                             $5,697
    As of March 31, 2008:
    Assets                                   $93,727     $42,252     $135,979

* Gross profit margins are not routinely calculated in the healthcare industry.


'/>"/>
SOURCE Chindex International, Inc.
Copyright©2009 PR Newswire.
All rights reserved


Related medicine news :

1. Chindex International, Inc. Announces May Conference Participation
2. Chindex International, Inc. to Participate in the Piper Jaffray & ChinaVenture Investment Conference 2009
3. Chindex International, Inc. Reports Third Quarter FY 2009 Financial Results
4. Chindex International, Inc. to Participate in UBS Global Healthcare Services Conference
5. Chindex International, Inc. to Report Fiscal Third Quarter 2009 Financial Results
6. Chindex International Inc. Announces Participation in the 2009 UBS Greater China Conference
7. Chindex International, Inc. Adopts Voluntary Executive Compensation Restrictions
8. Chindex International Inc. Reports Second Quarter FY 2009 Financial Results
9. Chindex International, Inc. Announces Preliminary Second Quarter Results and Improved Revenue Outlook for Fiscal 2009
10. Chindex International, Inc. Announces Appearances at Additional November Conferences
11. Chindex International to Report Fiscal 2009 First Quarter Financial Results
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/25/2016)... Washington, D.C. (PRWEB) , ... June 25, 2016 ... ... will discuss health policy issues and applications at AcademyHealth’s Annual Research Meeting June ... share their work on several important health care topics including advance care planning, ...
(Date:6/25/2016)... ... June 25, 2016 , ... First Choice Emergency Room ... Dr. Sesan Ogunleye, as the Medical Director of its new Mesquite-Samuell Farm facility. ... of our new Mesquite location,” said Dr. James M. Muzzarelli, Executive Medical Director of ...
(Date:6/25/2016)... ... ... Conventional wisdom preaches the benefits of moderation, whether it’s a matter of ... too high can result in disappointment, perhaps even self-loathing. However, those who set the ... Research from PsychTests.com reveals that behind the tendency to set low expectations ...
(Date:6/24/2016)... ... , ... Marcy was in a crisis. Her son James, eight, was out of control. Prone ... physically. , “When something upset him, he couldn’t control his emotions,” remembers Marcy. “If ... at my other children and say he was going to kill them. If we ...
(Date:6/24/2016)... ... June 24, 2016 , ... Comfort Keepers® of San Diego, CA is ... Road To Recovery® program to drive cancer patients to and from their cancer treatments. ... the highest quality of life and ongoing independence. Getting to and from medical ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... June 23, 2016 Research and Markets ... Market - Forecast to 2022" report to their offering. ... method for the patients with kidney failure, it replaces the ... from the patient,s blood and thus the treatment helps to ... chloride in balance. Increasing number of ESRD ...
(Date:6/23/2016)...  In a startling report released today, National Safety Council ... a comprehensive, proven plan to eliminate prescription opioid overdoses. ... states are tackling the worst drug crisis in recorded U.S. history, ... Kentucky , New Mexico , ... the 28 failing states, three – Michigan , ...
(Date:6/23/2016)... LOS ANGELES , June 23, 2016 /PRNewswire/ ... (NASDAQ: CAPR ), a biotechnology company ... first-in-class therapeutics, today announced that patient enrollment in ... progrEssion in Duchenne) has exceeded 50% of its ... its enrollment in the third quarter of 2016, ...
Breaking Medicine Technology: