Chindex International Inc. (CHDX, Financial) filed Quarterly Report for the period ended 2010-06-30.
Chindex International Inc. has a market cap of $204.56 million; its shares were traded at around $14.86 with a P/E ratio of 36.24 and P/S ratio of 1.19. CHDX is in the portfolios of Chuck Royce of Royce& Associates.
Expenses for the Healthcare Services division for the three months ended June 30, 2010 was $20,092,000, a increase of 12% from the three months ended June 30, 2009 expenses of $17,923,000, primarily due to increases in the expenses for salaries ($884,000), facility rent ($749,000), bad debt ($500,000) and direct patient care ($298,000), offset by a decrease in business tax expense ($1,109,000). During 2009, the Chinese government revised its Business Tax regulations to clarify that for-profit healthcare services entities are exempt from the previously-assessed five percent business tax on revenues, retroactive to January 1, 2009, with continuing exemption for future periods. Salary expense represented 46.1% of division revenue in the recent period and 45.8% of revenue in the prior period. Cost allocated from the parent company to the division decreased $59,000, primarily for stock based compensation.
For the three months ended June 30, 2010, this division had revenue of $16,739,000, a 28% decrease from revenue of $23,283,000 for the three months ended June 30, 2009. The change in revenue was primarily due to a reduction in revenue recognized under government-backed loan programs, with $63,000 recognized in the current period compared to $3,513,000 in the prior period, the continuing impact of Chinese government regulatory review of import approvals for sales of our robotic surgical systems to public hospital customers in China as well as yet to be released pricing standards for consumable products related to the robotic systems and delays in expected sales of diagnostic ultrasound systems in the Hong Kong market.
Expenses for the Medical Products division increased 20% to $6,669,000 for the three months ended June 30, 2010 from $5,571,000 for the three months ended June 30, 2009, including increases in selling expenses ($424,000) and salary expense ($97,000). Cost allocated from the parent company to the division increased $519,000, primarily including stock based compensation ($452,000).
Miscellaneous expense during the recent quarter was $4,000 and prior period was $647,000. The expense in the prior period was substantially due to the change in fair value of warrants of $741,000.
We have a $1,750,000 credit facility with M&T Bank, and we had borrowings of $106,000 and $0, respectively, as of June 30, 2010 and March 31, 2010 under the facility. The borrowings under that credit facility bear interest at 1.00% over the three-month London Interbank Offered Rate (LIBOR). At June 30, 2010, the interest rate on this facility was 1.54%. Balances outstanding under the facility are payable on demand, fully secured and collateralized by government securities acceptable to the Bank having an aggregate fair market value of not less than $1,945,000. As of June 30, 2010 and March 31, 2010, there were letters of credit outstanding in the amounts of $441,000 and $186,000, respectively.
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Chindex International Inc. has a market cap of $204.56 million; its shares were traded at around $14.86 with a P/E ratio of 36.24 and P/S ratio of 1.19. CHDX is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Our consolidated revenue for the three months ended June 30, 2010 was $41,488,000, a 8% decrease from the three months ended June 30, 2009 revenue of $45,331,000. We recorded income from operations of $1,895,000 for the recent quarter, as compared to income from operations of $5,274,000 for the same quarter last year. We recorded net income of $836,000 for the recent quarter, as compared to net income of $3,253,000 for the same quarter last year.Expenses for the Healthcare Services division for the three months ended June 30, 2010 was $20,092,000, a increase of 12% from the three months ended June 30, 2009 expenses of $17,923,000, primarily due to increases in the expenses for salaries ($884,000), facility rent ($749,000), bad debt ($500,000) and direct patient care ($298,000), offset by a decrease in business tax expense ($1,109,000). During 2009, the Chinese government revised its Business Tax regulations to clarify that for-profit healthcare services entities are exempt from the previously-assessed five percent business tax on revenues, retroactive to January 1, 2009, with continuing exemption for future periods. Salary expense represented 46.1% of division revenue in the recent period and 45.8% of revenue in the prior period. Cost allocated from the parent company to the division decreased $59,000, primarily for stock based compensation.
For the three months ended June 30, 2010, this division had revenue of $16,739,000, a 28% decrease from revenue of $23,283,000 for the three months ended June 30, 2009. The change in revenue was primarily due to a reduction in revenue recognized under government-backed loan programs, with $63,000 recognized in the current period compared to $3,513,000 in the prior period, the continuing impact of Chinese government regulatory review of import approvals for sales of our robotic surgical systems to public hospital customers in China as well as yet to be released pricing standards for consumable products related to the robotic systems and delays in expected sales of diagnostic ultrasound systems in the Hong Kong market.
Expenses for the Medical Products division increased 20% to $6,669,000 for the three months ended June 30, 2010 from $5,571,000 for the three months ended June 30, 2009, including increases in selling expenses ($424,000) and salary expense ($97,000). Cost allocated from the parent company to the division increased $519,000, primarily including stock based compensation ($452,000).
Miscellaneous expense during the recent quarter was $4,000 and prior period was $647,000. The expense in the prior period was substantially due to the change in fair value of warrants of $741,000.
We have a $1,750,000 credit facility with M&T Bank, and we had borrowings of $106,000 and $0, respectively, as of June 30, 2010 and March 31, 2010 under the facility. The borrowings under that credit facility bear interest at 1.00% over the three-month London Interbank Offered Rate (LIBOR). At June 30, 2010, the interest rate on this facility was 1.54%. Balances outstanding under the facility are payable on demand, fully secured and collateralized by government securities acceptable to the Bank having an aggregate fair market value of not less than $1,945,000. As of June 30, 2010 and March 31, 2010, there were letters of credit outstanding in the amounts of $441,000 and $186,000, respectively.
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