As disclosed previously, the Company recognized a noncash expense of $0.6 million or $0.04 per share for the change in the fair value of the derivative portion of investments in $40 million (principal value) of Certificates of Deposits (CDs) linked to various equity indices and foreign currency markets. This was a result of the significant disruptions in the world financial and credit markets. Although there was no risk to the principal portion of the investment, given an unfavorable outlook for these investments in the near-term, in October 2008 the Company redeemed the CD's and reinvested the funds in traditional deposits with guaranteed returns.
The Company recorded a $0.3 million provision for taxes, or an effective tax rate of 22.6%, in the three months ended September 30, 2008 as compared to a provision for taxes of $0.8 million, or an effective tax rate of 34.0%, for the three months ended September 30, 2007. The provision for income taxes was positively impacted this quarter by the recognition of benefit from losses in certain entities, partially offset by the negative effect of losses in entities for which we cannot recognize benefit.
The net income for the quarter ended September 30, 2008 was $0.9 million, or $0.05 per diluted share. This compares to net income of $1.6 million for the quarter ended September 30, 2007.
Net income of $0.9 million, or $0.05 per diluted share, for the quarter
includes a $0.6 million or $0.04 per share expense related to the
development of the United Family Healthcare network and a noncash expense
of $0.6 million, or $0.04 per share for the change in the fair value of
certain derivatives associated with our investments, which was a result of
the dramatic d
|SOURCE Chindex International, Inc.|
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