Chindex International, Inc. Provides Guidance for the Full Year of 2012 Reaffirm Guidance for the Full Year of 2011
BETHESDA, Md., Jan. 9, 2012 /PRNewswire-Asia/ -- Chindex International, Inc. (NASDAQ: CHDX), an American health care company providing health care services in China through the operations of United Family Healthcare, a network of private primary care hospitals and affiliated ambulatory clinics, today provided its financial guidance for the full year of 2012 and reaffirmed its financial guidance for the full year of 2011.
For the full year ending December 31, 2012, the Company expects revenue to grow to approximately $140.0 to $145.0 million, reflecting a year-over-year percentage growth rate in the mid-twenties driven by continued strong demand in existing facilities and increasing contribution from new facility openings and expansion of service offerings. Adjusted EBITDA margin is expected to remain stable in the mid-teens from the prior year period. Development expense is expected to remain in line as an absolute amount from the prior year period.
For the full year ended December 31, 2011, the Company reaffirms that revenue is expected to have grown to approximately $113.0 to $115.0 million from $95.4 million in the prior year period. Adjusted EBITDA margin is expected to have remained stable at approximately 15 percent generating $16.0 million to $17.0 million in adjusted EBITDA compared to $14.1 million in the prior year period. Development expense is expected to be approximately $8.5 million.
Roberta Lipson, President and CEO of Chindex, commented, "We are pleased to see top-line growth accelerate into the high teens for the full year of 2011 driven by continued strong demand across our existing United Family Hospitals and Clinics. Looking forward into 2012, we are excited to begin recognizing revenue contribution from our expansion projects. This means that we expect year-over-year top-line growth to further accelerate into the mid-twenties while again achieving an adjusted EBITDA margin in the mid-teens. With our established leading position in premium healthcare services, as well as the expected ramp-up of our new development projects, we are confident that 2012 will be an exciting year for Chindex."
Lawrence Pemble, Chief Operating Officer of Chindex, added, "We also remain focused on helping shareholders better evaluate our progress by providing consistent updates on important operating metrics. As a U.S.-listed company, we recognize the importance of transparency and providing shareholders insight to better communicate our progress and initiatives to best capitalize on China's high opportunity but also high volatility healthcare market. Overall, we want to stress the importance of evaluating Chindex's performance using our Adjusted EBITDA results."
"We also note the performance of our medical products joint venture with FosunPharma, Chindex Medical Limited. Our interest in CML yielded a significant contribution to our net income for the full year of 2011. For the full year of 2012, we expect this contribution to be more moderate due to increasing investment in market development expense. CML expects to introduce several new products including specialized robotic surgical systems and medical imaging systems over the coming year."
The Company presents Adjusted EBITDA to better illustrate ongoing operational results. Adjusted EBITDA is defined as income (loss) before interest expense, income taxes, depreciation and amortization, and also excludes development, pre-opening and start-up expenses related to new and pending hospitals and clinics, equity in earnings (loss) income of unconsolidated affiliate, non-recurring charges for Chindex Medical Limited (CML) joint venture formation and effect of change in corporate cost allocations. The Company anticipates recurring development, pre-opening and start-up expense and notes that such expense is a basic element of the long term growth plan. Management believes that providing an Adjusted EBITDA analysis to investors is a helpful metric to better illustrate the Company's operations, including development plans, and changes in presentation from historical periods. The Company uses Adjusted EBITDA for business planning and other purposes. Other companies may calculate Adjusted EBITDA differently, and therefore Chindex's Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is not a measure of financial performance under U.S. generally accepted accounting principles (GAAP), and should not be considered in isolation or as an alternative to net income (loss), cash flows from operating activities and other measures determined in accordance with GAAP. Items excluded from Adjusted EBITDA are significant and necessary components to the operations of the Company's business, and, therefore, Adjusted EBITDA should only be used as a supplemental measure of operating performance.
The Company's operating results may differ materially from the Company's current expectations because the Company's final operating results are subject to adjustment based upon, among other things, the finalization of its year-end closing, annual audit and reporting processes. The Company anticipates reporting its fourth quarter and full fiscal year 2011 results in mid-March. More information on the Company's financial results will be provided at that time.
About Chindex International, Inc.
Chindex is an American healthcare company providing healthcare services in China through the operations of United Family Healthcare, a network of private primary care hospitals and affiliated ambulatory clinics. United Family Healthcare currently operates in Beijing, Shanghai, Tianjin and Guangzhou. The Company also provides medical capital equipment and products through Chindex Medical Ltd., a joint venture company with manufacturing and distribution businesses serving both domestic China and export markets. With thirty years of experience, the Company's strategy is to continue its growth as a leading integrated healthcare provider in the Greater China region. Further company information may be found at the Company's website at http://www.chindex.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 the Company's Transition Report on Form 10-K for the nine months ended December 31, 2010, updates and additions to those "Risk Factors" in the Company's 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 the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. The Company has no obligation to update these forward-looking statements.
Ashley De Simone
SOURCE Chindex International, Inc.