1Q 2010 Revenue Increases 41% Year over Year to $45.3 Million
1Q 2010 Net Income Increases Year over Year to $3.3 Million, or $0.20 per Diluted Share
BETHESDA, Md., Aug. 10 /PRNewswire-Asia/ -- Chindex International, Inc.
('Chindex') (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 first quarter of fiscal 2010, ended June 30, 2009.
First Quarter Fiscal 2010 Financial Results
Revenue for the first quarter of fiscal 2010, which ended June 30, 2009,
increased 41% to $45.3 million from $32.1 million in the first quarter of
fiscal year 2009. Revenue from the Medical Products division increased 86% to
$23.3 million from $12.5 million in the prior year period, and revenue from
the Healthcare Services division increased 13% to $22.0 million from $19.6
million in the first quarter of fiscal year 2009. Revenue performance reflects
increased medical products sales, including revenue from the sale of two
daVinci units, and year over year growth in inpatient and outpatient revenue
in the Healthcare Services division.
During the quarter, the Company recorded income from operations of $5.3
million, a significant increase from $753,000 in the same quarter of last year.
Total operating costs and expenses was $40.1 million compared to $31.3 million
in the prior year period.
Operating expenses in the first quarter of fiscal 2010 include multi-year
physician contracts renewed at higher rates in calendar 2008, additional
medical personnel in Beijing and Shanghai hospitals and the Guangzhou clinic,
increased direct patient care costs and increased medical product sales
activities versus the prior year period. Additionally, Chindex recognized
development and startup expenses of approximately $329,000, equivalent to
approximately $0.02 per diluted share, and non-cash stock compensation expense
of $689,000, equivalent to approximately $0.04 per diluted share, in the first
quarter of 2010. In the prior year period, the Company's development and
startup expenses in the Healthcare Services division were not material and
non-cash stock compensation expense was $576,000 or roughly $0.04 per diluted
share.
Roberta Lipson, President and CEO of Chindex, commented, 'In the first
quarter of fiscal 2010, we completed deliveries under our KfW Development Bank
contracts and witnessed continued demand for the products from our diversified
portfolio of leading medical equipment, particularly robotic surgical systems,
including the sale of two daVinci surgical systems, as well as women's health
imaging systems, cosmetic laser systems and clinical chemistry product lines.
For healthcare services, we were particularly pleased to see growth in both
inpatient and outpatient services in Beijing and Shanghai markets, as well as
increasing patient revenues at our Guangzhou facilities.'
Under new U.S. accounting principles which require the Company to record
its warrants at fair value, the company recorded a non-cash charge to
miscellaneous expense of approximately $741,000 or $0.05 per diluted share to
reflect the change in the fair value of its outstanding warrants during the
quarter.
The Company's tax expense was approximately $1.6 million in the first
quarter of 2010, an effective tax rate of 32.6%. In the prior year period, tax
expense was approximately $1.2 million.
Net income in the first quarter of fiscal 2010 was $3.3 million, or $0.20
per diluted share. This compares to a net loss of $161,000, or $(0.01) per
diluted share, in the first quarter of fiscal 2009. Excluding the impact of
the change in fair value of outstanding warrants, net income per diluted share
was approximately $0.25.
Medical Products division business results:
For the first quarter of fiscal year 2010, revenue increased 86% to $23.3
million from $12.5 million in the prior year quarter. The year over year
comparison reflects continued growth in the Medical Products division as well
as the negative impact of the Sichuan earthquake, which disrupted purchasing
behavior in the comparable quarter of the prior year. Gross profit in the
Medical Products division increased to $5.8 million from $2.6 million in the
prior fiscal year's first quarter. Gross profit margin increased to 25%, from
21% in the prior year period. Selling, marketing, general and administrative
expenses for the Medical Products division increased 19% to $5.6 million from
$4.7 million in the first quarter of the prior fiscal year. Increased expenses
during the period primarily reflect increased staff levels to support higher
revenues.
Lipson added, 'Our first quarter medical products sales were strong and
continued the momentum we witnessed in the March quarter as we shipped the
remainder of our KfW Development Bank contracts. As a proven leader in the
sector, we remain focused on enhancing and diversifying our portfolio so that
we address new and existing markets. To this end, today we announced exclusive
distribution agreements with Biotest AG and Cutera, Inc. for exclusive
distribution of clinical chemistry products and aesthetic laser systems in
China -- two exciting new product offerings. Our Medical Products division
continues to be well-positioned to meet the increasing need for high end
medical products in China.'
Healthcare Services division business results:
Revenue in the first quarter of the fiscal year 2010 was $22.0 million, an
increase of 13% from $19.6 million in the prior year quarter.
