Chindex International Shifts to Healthcare in Second Quarter Results

Bethesda-based Chindex International, Inc. (NASDAQ: CHDX), which hit a slight bump last quarter—posting a net loss—got back on track in the second quarter ended June 30, 2011.

Chindex conducts business a little differently and generates the majority of its income by providing health care services in China through its subsidiary United Family Healthcare. The company owns a network of hospitals that give private primary care. Its Beijing UFH hospital is currently undergoing an expansion.

Chindex second quarter results show that the company has shifted from product sales which cut revenue by more than $10 Million. The company now focused solely on healthcare services, increased that portion by 19.4% in the quarter to $29.5 Million from $24.7 Million in 2010. Although 2010 second quarter full-revenue was $41.5 Million

Net income in the second quarter more than made up for the loss in the first quarter of 2011. Net income totaled $3.37 Million bringing the first half to a profit of $1.7 Million.

The company's balance sheet showed Cash and cash equivalents increasing to $38.6 Million.

Roberta Lipson, President and CEO of Chindex, remarked "Second quarter financial performance reflects continued revenue growth driven by steady inpatient and outpatient demand across our network. Our operating results were also favorable this quarter with strong improvements in net income and adjusted EBITDA on a year over year basis. Additionally, we remain optimistic that our goals for capacity build-out are nicely aligned with the favorable environment for the growth of private healthcare in China. We are on-track with the phased opening of our Beijing UFH hospital expansion and we continue to expect completion of the project by the end of the year."

Chindex International will hold their second quarter 2011 conference call 8:00 am ET on August 9, 2011.

Stocks, Trading and Investing