Concord Medical Announces Fourth Quarter and Fiscal Year 2009 Financial Results
Fourth Quarter and Fiscal Year 2009 Highlights
-- Total net revenues in the fourth quarter of 2009 were RMB86.8 million
($12.7 million), a 24.3% increase from the corresponding period in 2008.
Total net revenues in fiscal year 2009 were RMB292.4 million ($42.8
million), a 70.2% increase from 2008.
-- Net income in the fourth quarter of 2009 was RMB35.9 million ($5.3
million). Net income in fiscal year 2009 was RMB124.8 million ($18.3
million), a 57.9% increase from the corresponding period in 2008.
-- Both basic and diluted earnings per American Depository Share ("ADS")(2)
in the fourth quarter of 2009 were RMB0.69 ($0.10). Both basic and
diluted earnings per ADS in fiscal year 2009 were RMB1.86 ($0.27).
-- Adjusted EBITDA(3) (non-GAAP) in the fourth quarter of 2009 was RMB72.1
million ($10.6 million), a 22.3% increase from the corresponding period
in 2008. Adjusted EBITDA in fiscal year 2009 was RMB246.6 million
($36.1 million), a 71.0% increase from 2008.
-- Concord Medical opened five centers in the fourth quarter of 2009,
bringing the total number of centers in operation to 88 across 36
cities in China, as of December 31, 2009. To date, the Company has
entered into agreements to establish 27 new centers in 2010.
-- The number of treatment and diagnostic patient cases was 49,088 and
178,658 during the fourth quarter and fiscal year 2009, representing a
23.9% and 62.4% increase from the corresponding period in 2008,
respectively.
-- The Company raised $132.0 million in gross proceeds from its initial
public offering ("IPO") of 12 million ADSs on the New York Stock
Exchange on December 11, 2009, which are expected to be used to further
expand its existing network of centers, establish two specialty cancer
hospitals and for general corporate purposes.
(1) This announcement contains translations of certain RMB amounts into
U.S. dollars at specified rates solely for the convenience of the
reader. Unless otherwise noted, all translations from RMB to U.S.
dollars are made at a rate of RMB6.8259 to US$1.00, the effective noon
buying rate as of December 31, 2009 in The City of New York for cable
transfers of RMB as certified for customs purposes by the Federal
Reserve Bank of New York.
(2) Each ADS represents three ordinary shares of the Company.
(3) Adjusted EBITDA is defined in this announcement as net (loss) income
plus interest, taxes, depreciation and amortization, share-based
compensation expenses and other adjustments. Other adjustments include
change in fair value of convertible notes, foreign exchange loss and
other income.
"We were encouraged to end 2009 with a solid quarter of financial performance and operational progress, and we are very excited by the growth opportunities we see in 2010," said Dr. Jianyu Yang, director, president and chief executive officer of Concord Medical.
"Having established our first radiotherapy center in 1997, Concord Medical's success has been driven by our outstanding ability to establish and operate these centers effectively. Looking forward, we will continue to expand our leading network by opening new centers and to improve the operational efficiency of existing centers. Our target is to operate at least 200 centers by 2012 and we are moving quickly toward that goal. In addition, the development of our two specialty cancer hospitals is well under way. We expect to open our Chang'an CMS International Cancer Center in June 2010 and our Beijing Proton Medical Center in early 2012."
Mr. Yang further commented, "Cancer is the leading cause of death in China and the cancer treatment market is one of China's fastest growing healthcare segments as Chinese people increasingly understand the importance of early-detection and high quality treatment. In addition, the Chinese government has been encouraging private investment in the healthcare sector in order to enhance the scope and quality of medical services provided in the country. With our leading expertise and solid capital position combined with increasing market demand and the Chinese government's commitment to implementing healthcare reform, we are confident that Concord Medical is well positioned to achieve our growth targets."
Mr. Boxun Zhang, Concord Medical's corporate vice president added, "Over the past three years, Concord Medical has consistently achieved strong top and bottom line growth and managing for profitable growth remains a top priority for us. In the future, while supporting our expansion strategies with positive operating cash flow, a strong cash balance and flexible bank credit, we will also continue to improve our operational efficiency and enhance financial management."
Independent Board Member Appointment
Concord Medical also announced that Dr. Hongbin Cai joined its board as an independent director and replaced Mr. Wai Hung Ku as a member of the audit committee. Mr. Ku will remain on the Company's board.
Commenting on the appointment, Dr. Yang said, "We are delighted for Dr. Cai to join Concord Medical's board and audit committee. As a nationally renowned academic leader and business advisor, Dr. Cai brings in-depth knowledge of corporate finance and economics. We also thank Mr. Ku for his valuable contributions to the Company during his tenure. This change in our board composition demonstrates our commitment to observing best practices in corporate governance as a newly listed company."
Dr. Hongbin Cai is currently a professor in economics and an associate dean at Peking University's Guanghua School of Management. Since 2006, he has been serving as a director of the Mirrlees Institute of Economic Policy Research and an associate director of the Institute of Poverty Research at Peking University. Prior to returning to Peking University as a professor, he served as an assistant professor of the economics department at the University of California, Los Angeles from 1997 to 2005. From 2000 to 2001, he served as a visiting assistant professor at the economics department and the Cowles Foundation of Yale University. Dr. Cai holds a Ph.D. in Economics and an M.A. in Statistics from Stanford University, an M.A. in Economics from Peking University and a B.A. in Mathematics from Wuhan University. He has received various national recognitions in China, including being named as a National Chang Jiang Scholar and a National Outstanding Young Researcher and his academic papers have been published in renowned journals such as the American Economic Review, the Rand Journal of Economics, the Journal of Public Economics, the Journal of Economic Theory, and the Economic Journal.
Fourth Quarter 2009 Results
Concord Medical reported total net revenues of RMB86.8 million ($12.7 million) for the fourth quarter of 2009, a 24.3% increase from the corresponding period in 2008, primarily due to an increase in patient cases from existing centers and the opening of new centers.
Cost of revenues in the fourth quarter of 2009 was RMB25.0 million (US$3.7 million), a 45.2% increase from the corresponding period in 2008, primarily due to an increase in depreciation costs related to new equipment installation in 2009.
Gross profit margin in the fourth quarter of 2009 was 71.2% as compared to 71.4% in the previous quarter and 75.3% in the corresponding period in 2008. The year-over-year decrease was primarily due to sale of equipments, which had a higher margin, accounting for a higher portion of total net revenues in the fourth quarter of 2008.
Operating expenses, consisting of selling expenses and general and administrative expenses, were RMB13.3 million ($2.0 million) in the fourth quarter of 2009 as compared to RMB9.7 million in the previous quarter and RMB8.6 million in the corresponding period in 2008. The quarter-over-quarter increase was mainly due to an increase in salary and compensation expenses related to business expansion, and RMB1.0 million in share-based compensation expenses associated with certain option grants in November 2009.
Operating income was RMB48.4 million ($7.1 million) in the fourth quarter of 2009, representing a 10.2% increase from the corresponding period in 2008. Operating income excluding share-based compensation expenses (non-GAAP) was RMB49.4 million ($7.2 million), a 12.5% increase from the corresponding period in 2008.
Income tax expense was RMB10.7 million ($1.6 million), compared to an income tax expense of RMB10.7 million in the corresponding period in 2008. The effective tax rate for the fourth quarter of 2009 was 22.9% as compared to 23.0% in the third quarter of 2009 and 21.5% for the corresponding period in 2008.
Net income was RMB35.9 million ($5.3 million), representing an 8.2% decrease from the corresponding period in 2008. This decrease was primarily due to a RMB7.7 million one-time gain recognized as other income in the fourth quarter of 2008. Both basic and diluted earnings per ADS for the fourth quarter of 2009 amounted to RMB0.69($0.10).
Net income excluding share-based compensation expenses (non-GAAP) was RMB36.9 million ($5.4 million), a 5.6% decrease from the corresponding period in 2008. Both basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) for the fourth quarter of 2009 amounted to RMB0.72($0.11).
Adjusted EBITDA (non-GAAP), was RMB 72.1 million ($10.6 million) for the fourth quarter of 2009, representing a 22.3% increase from the corresponding period in 2008.
As of December 31, 2009, the Company had total fixed assets valued at RMB584.9 million ($85.7 million) and cash and cash equivalents of RMB1, 037.2 million ($152.0 million).
As of December 31, 2009, the Company had bank credit lines totaling RMB2,145 million (US$314.2 million).
Accounts receivable was RMB111.3 million ($16.3 million) as of December 31, 2009, compared to RMB119.1 million as of September 30, 2009 and RMB92.8 million as of December 31, 2008. The sequential decrease was mainly due to enhanced cash flow management. Days sales outstanding decreased to approximately 120 days in the fourth quarter of 2009 from approximately 128 days in the previous quarter.
Fiscal Year 2009 Results
Total net revenues in 2009 were RMB292.4 million ($42.8 million), representing a 70.2% increase from RMB171.8 million in 2008, primarily due to (i) an increase in patient cases from existing centers and the opening of new centers, and (ii) consolidation of China Medstar's revenues for the entire fiscal year 2009 as compared to for the last five months of 2008, as a result of the acquisition of China Medstar being completed in July 2008.
Cost of revenues in 2009 was RMB87.6 million (US$12.8 million), representing a 92.0% increase from RMB45.6 million in 2008, primarily due to the an increase depreciation cost related to the opening of new centers and the resulting increase in salaries and benefits to additional personnel employed and assigned to the new centers.
Gross profit margin in 2009 was 70.1%, compared to 73.5% in 2008. This decrease was primarily due to (i) higher operating costs associated with having a bigger number of new centers in their ramp-up periods, and (ii) an increase in the number of centers that offered diagnostic imaging services, which generally have a lower margin than radiotherapy treatment services.
Selling expenses in 2009 were RMB7.7 million ($1.1 million), representing a 39.6% increase from RMB5.5 million in 2008, which was primarily due to increases in headcount and marketing and other expenses to support increased business development efforts. Selling expenses as a percentage of total net revenues decreased to 2.6% in 2009 from 3.2% in 2008 mainly due to economies of scale.
General and administrative expenses in 2009 were RMB29.8 million ($4.4 million), representing a 58.0% increase from RMB18.9 million in 2008, which was primarily due to (i) increases in headcount and travel expenses, and (ii) increases in auditing expenses and share based compensation charges. General and administrative expenses as a percentage of total net revenues decreased to 10.2% in 2009 from 11.0% in 2008 mainly due to economies of scale.
Share-based compensation expenses, which were allocated to related operating expense items, were RMB1.0 million ($0.1 million) in 2009, compared to RMB4.2 million in 2008.
Operating income in 2009 was RMB167.4 million ($24.5 million), a 64.4% increase from RMB101.8 million in 2008. Operating income excluding share-based compensation expenses (non-GAAP) in 2009 was RMB168.4 million ($24.7 million), representing a 58.8% increase from 2008.
Income tax expense was RMB36.4 million ($5.3 million), compared to an income tax expense of RMB23.3 million in 2008. The effective tax rate for 2009 was 22.6% as compared to 22.8% in 2008.
Net income in 2009 was RMB124.8 million ($18.3 million), representing a 57.9% increase from RMB79.1 million in 2008. Both basic and diluted earnings per ADS for 2009 amounted to RMB1.86($0.27).
Net income excluding share-based compensation expenses (non-GAAP) in 2009 was RMB125.8 million ($18.4 million), reflecting a 51.1% increase from RMB83.3 million in 2008. Both basic and diluted earnings per ADS excluding share-based compensation expenses (non-GAAP) in 2009 were RMB1.92($0.28).
Capital expenditures were RMB168.8 million ($24.7 million) in 2009, compared to RMB31.6 million in 2008. The increase was primarily due to the opening of new centers.
Adjusted EBITDA (non-GAAP) was RMB246.6 million ($36.1 million) in 2009, representing a 71.0% increase from RMB144.2 million in 2008.
Outlook for Fiscal Year 2010
Concord Medical expects to generate total net revenues in an estimated range of RMB360 million to RMB390 million in 2010, which would represent a 23.1% to 33.4% increase from 2009.
The Company intends to open 30 to 35 new radiotherapy and diagnostic imaging centers in 2010. The Company expects total capital expenditures related to these new centers to be in the range of RMB350 million to RMB400 million.
This forecast reflects Concord Medical's current and preliminary view, which is subject to change.
Conference Call Information
Concord Medical's management will hold an earnings conference call at 8:00 AM on March 18, 2010 U.S. Eastern Time (8:00 PM on March 18, 2010Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
US: + 1.866.700.7477
China: + 10.800.152.1490 (North) / 10.800.130.0399 (South)
Hong Kong: + 800.96.3844
International: + 1.617.213.8840
Passcode: 27971809
A replay of the conference call may be accessed by phone at the following number until March 25, 2010:
US: + 1.888.286.8010
International: + 1.617.801.6888
Passcode: 36785545
Additionally, a live and archived webcast of this conference call will be available at http://ir.cmsholdings.com/ .
About Concord Medical
Concord Medical operates the largest network of radiotherapy and diagnostic imaging centers in China in terms of revenues and the total number of centers in operation per available statistics. The Company currently operates a network of more than 80 centers spanning 36 cities and 21 provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals in China, the Company provides radiotherapy and diagnostic imaging equipments and manages the daily operations of these centers located on its hospital partners' premises. The Company also provides ongoing training to doctors and other medical personnel in its network of centers to ensure a high level of clinical care for patients.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions. In particular, many of the statements from management in this press release and the section under "Outlook for First Quarter 2010" are forward-looking in nature. These forward looking statements are based upon management's current views and expectations with respect to future events and are not a guarantee of future performance. Furthermore, these statements are, by their nature, subject to a number of risks and uncertainties that could cause actual performance and results to differ materially from those discussed in the forward-looking statements as a result of a number of factors. Such factors include: the number of new radiotherapy and diagnostic imaging centers opened; the increase in the number of patients in existing centers; the establishment of specialty cancer hospitals; changes in the healthcare industry in China, including changes in the healthcare policies and regulations of the PRC government; and technological or therapeutic changes affecting the field of cancer treatment and diagnostic imaging. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission at www.sec.gov. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Statement Regarding Unaudited Financial Information
The Company's independent auditors are in the process of completing an audit of the Company's U.S. GAAP financial statements for 2009. These unaudited 2009 numbers disclosed in this announcement are, therefore, subject to change.
About Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with United States Generally Accepted Accounting Principles (GAAP), Concord Medical uses certain non-GAAP measures. The Company presents certain of its financial information that is adjusted from results based on GAAP to exclude the impact of share-based compensation expense. The Company believes excluding share-based compensation expense from its non-GAAP financial measures is useful for its management and investors to assess and analyze the Company's core operating results as such expense is not directly attributable to the underlying performance of the Company's business operations and do not impact its cash earnings. Concord Medical also believes these non-GAAP measures excluding share-based compensation expense are important in helping investors to understand the Company's current financial performance and future prospects and to compare business trends among different reporting periods on a consistent basis. In addition, Concord Medical also presents the non-GAAP measure of Adjusted EBITDA, which is defined in this announcement as net (loss) income plus interest, taxes, depreciation and amortization, share-based compensation expenses and other adjustments. Other adjustments include change in fair value of convertible notes, foreign exchange loss and other income. Furthermore, Adjusted EBITDA eliminates the impact of items that the Company does not consider indicative of the performance of its network of centers. The Company believes investors will similarly use Adjusted EBITDA as one of the key metrics to evaluate its financial performance and to compare its current operating results with corresponding historical periods and with other companies in the healthcare services industry. The presentation of these additional measures should not be considered a substitute for or superior to GAAP results or as being comparable to results reported or forecasted by other companies. The non-GAAP measures have been reconciled to GAAP measures in the attached financial statements.
Concord Medical Services Holdings Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(in thousand)
December September
31, 2008* 30, 2009 December 31, 2009
RMB RMB RMB US$
ASSETS
Current assets
Cash 353,991 285,703 1,037,239 151,956
Restricted cash, current portion 2,012 293 43
Accounts receivable 92,772 119,127 111,328 16,310
Prepayment and other current
assets 43,566 56,869 83,926 12,295
Deferred tax assets, current
portion 2,649 2,776 3,168 464
Total current assets 492,978 466,487 1,235,954 181,068
Non-current assets
Property, plant and equipment,
net 349,121 557,433 584,869 85,684
Goodwill 300,163 300,163 300,163 43,974
Acquired intangible assets, net 181,838 161,450 155,345 22,758
Deposits for non-current assets 167,200 147,851 131,881 19,321
Deferred tax assets, non-current
portion 12,650 12,648 19,700 2,886
Other non-current assets 10,445 10,782 11,532 1,689
Deferred initial public offering
expense -- 11,207 -- --
Restricted cash, non-current
portion -- 5,233 4,421 648
Total non-current assets 1,021,417 1,206,767 1,207,911 176,960
Total assets 1,514,395 1,673,254 2,443,865 358,028
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Short-term bank borrowing 20,800 30,000 11,500 1,685
Long-term bank borrowings,
current portion 39,840 44,880 35,647 5,222
Accounts payable 9,741 9,744 9,759 1,430
Accrual for purchase of
property, plant and equipment 1,881 25,839 12,043 1,764
Obligations under capital
leases, current portion 3,719 3,582 3,582 525
Accrued expenses and other
liabilities 42,444 44,221 48,663 7,128
Income tax payable 17,041 22,864 14,642 2,145
Deferred revenue, current
portion 12,656 13,395 10,401 1,524
Payable for acquisition of a
subsidiary and business
components 28,016 6,500 -- --
Dividends payable 10,788 35,428 -- --
Amounts due to related parties 3,607 1,607 1,546 226
Total current liabilities 190,533 238,060 147,783 21,649
Non-current liabilities
Long-term bank borrowings, non-
current portion 52,120 104,912 102,755 15,054
Deferred revenue, non-current
portion 6,314 5,470 5,188 760
Obligations under capitalized
leases, non-current portion 11,656 8,719 8,074 1,183
Lease deposit 3,215 3,269 1,000 147
Deferred tax liabilities, non-
current portion 20,078 18,189 25,317 3,709
Total non-current liabilities 93,383 140,559 142,334 20,853
Total liabilities 283,916 378,619 290,117 42,502
Commitments and contingencies
Mezzanine equity
Series A contingently redeemable
convertible preferred shares 254,358 269,017 -- --
Series B contingently redeemable
convertible preferred shares 411,101 434,036 -- --
Shareholders' equity
Ordinary shares 55 55 108 16
Additional paid-in capital 1,113,150 1,113,204 2,671,910 391,437
Accumulated other comprehensive
(loss) income (3,822) (4,037) (3,987) (584)
Accumulated deficit (544,363) (517,640) (514,283) (75,343)
Total shareholders' equity 565,020 591,582 2,153,748 315,526
Total liabilities, preferred
shares and shareholders' equity 1,514,395 1,673,254 2,443,865 358,028
*Amounts for the year ended December 31, 2008 were derived from the
December 31, 2008 audited consolidated financial statements.
Concord Medical Services Holdings Co., Ltd.
Unaudited Condensed Consolidated Statements of Income
(in thousand, except per ADS data)
For the Three Months Ended
December September
31, 2008 30, 2009 December 31, 2009
RMB RMB RMB US$
Revenue, net of business
tax, value-added tax and
related surcharges
Lease and management
services 60,765 70,892 75,225 11,021
Management services 5,158 6,689 8,643 1,266
Other, net 3,873 408 2,911 426
Total net revenues 69,796 77,989 86,779 12,713
Cost of revenues
Lease and management
services (10,375) (15,703) (18,793) (2,753)
Amortisation of acquired
intangibles (6,826) (6,624) (6,105) (894)
Management services (35) (2) (122) (18)
Total cost of revenues (17,236) (22,329) (25,020) (3,665)
Gross profit 52,560 55,660 61,759 9,048
Operating expenses
Selling expenses (2,222) (1,476) (3,212) (470)
General and administrative
expenses (6,401) (8,211) (10,134) (1,485)
Operating income 43,937 45,973 48,413 7,094
Interest expense (2,162) (1,671) (2,011) (295)
Foreign exchange (loss)
income (312) (97) 5 1
Gain from disposal of
equipment 266 -- -- --
Interest income 314 176 125 18
Other income 7,734 -- -- --
Income before income taxes 49,777 44,381 46,532 6,818
Income tax expense (10,724) (10,199) (10,662) (1,562)
Net income 39,053 34,182 35,870 5,256
Accretion of Series A
contingently redeemable
convertible preferred
shares (8,057) (7,948) (6,199) (908)
Accretion of Series B
contingently redeemable
convertible preferred
shares (304,763) (12,791) (9,976) (1,461)
Net (loss) income
attributable to ordinary
shareholders (273,767) 13,443 19,695 2,886
(Loss) income per ADS
Basic /Diluted (11.66) 0.57 0.69 0.10
Weighted average number of
ADS outstanding:
Basic /Diluted 23,476,033 23,476,033 29,057,729 29,057,729
Concord Medical Services Holdings Co., Ltd.
Unaudited Condensed Consolidated Statements of Income
(in thousand, except per ADS data)
Twelve
months ended
December Twelve months ended
31, 2008 December 31, 2009
RMB RMB US$
Revenue, net of business tax, value-
added tax and related surcharges
Lease and management services 155,061 260,162 38,114
Management services 12,677 28,739 4,210
Other, net 4,051 3,535 518
Total net revenues 171,789 292,436 42,842
Cost of revenues
Lease and management services (25,046) (60,937) (8,927)
Amortisation of acquired intangibles (20,497) (26,493) (3,881)
Management services (54) (131) (19)
Total cost of revenues (45,597) (87,561) (12,828)
Gross profit 126,192 204,875 30,014
Operating expenses:
Selling expenses (5,497) (7,675) (1,124)
General and administrative expenses (18,869) (29,821) (4,369)
Operating income 101,826 167,379 24,521
Interest expense (7,455) (6,891) (1,010)
Change in fair value of convertible
notes (464) -- --
Foreign exchange loss (325) (213) (31)
Gain from disposal of equipment 658 -- --
Interest income 430 948 139
Other income 7,734 -- --
Income before income taxes 102,404 161,223 23,619
Income tax expense (23,335) (36,396) (5,332)
Net income 79,069 124,827 18,287
Accretion of Series A contingently
redeemable convertible preferred
shares (270,343) (30,050) (4,402)
Accretion of Series B contingently
redeemable convertible preferred
shares (304,763) (48,359) (7,085)
Net (loss) income attributable to
ordinary shareholders (496,037) 46,418 6,800
(Loss) income per ADS
Basic/Diluted (25.89) 1.86 0.27
Weighted average number of ADS
outstanding:
Basic/Diluted 19,160,467 24,882,926 24,882,926
Reconciliations of non-GAAP results of operations measures to the nearest
comparable GAAP measures (*) (in RMB thousands, unaudited)
Three months ended December 31, 2008
Non-GAAP
GAAP Result Adjustment Results
Operating profit 43,937 -- 43,937
Net income 39,053 -- 39,053
Net income attributable to
ordinary shareholders -- -- --
Basic (Loss) earning per ADS (11.66) -- (11.66)
Diluted (Loss) earning per ADS (11.66) -- (11.66)
Three months ended September 30, 2009
Non-GAAP
GAAP Result Adjustment Results
Operating profit 45,973 -- 45,973
Net income 34,182 -- 34,182
Net income attributable to
ordinary shareholders -- -- --
Basic (Loss) earning per ADS 0.57 -- 0.57
Diluted (Loss) earning per ADS 0.57 -- 0.57
Three months ended December 31, 2009
Non-GAAP
GAAP Result Adjustment Results
Operating profit 48,413 1,007 49,420
Net income 35,870 1,007 36,877
Net income attributable to
ordinary shareholders -- -- --
Basic (Loss) earning per ADS 0.69 0.03 0.72
Diluted (Loss) earning per ADS 0.69 0.03 0.72
Twelve months ended December 31, 2008
Non-GAAP
GAAP Result Adjustment Results
Operating profit 101,826 4,215 106,041
Net income 79,067 4,215 83,282
Net income attributable to
ordinary shareholders -- -- --
Basic (Loss) earning per ADS (25.89) 0.22 (25.67)
Diluted (Loss) earning per ADS (25.89) 0.22 (25.67)
Twelve months ended December 31, 2009
Non-GAAP
GAAP Result Adjustment Results
Operating profit 167,379 1,007 168,386
Net income 124,827 1,007 125,834
Net income attributable to
ordinary shareholders -- -- --
Basic (Loss) earning per ADS 1.86 0.06 1.92
Diluted (Loss) earning per ADS 1.86 0.06 1.92
(*) The adjustment is only for share-based compensation.
Reconciliation from net income to adjusted EBITDA(*)
(in RMB thousands, unaudited)
Three Three Three Twelve Twelve
months months months months months
ended ended ended ended ended
December September December December December
31, 2008 30, 2009 31, 2009 31, 2009 31, 2008
Net income 39,053 34,182 35,870 124,827 79,069
Interest expense, net 1,848 1,495 1,886 5,943 7,025
Income taxes expense
(benefit) 10,724 10,199 10,662 36,396 23,335
Depreciation and
amortization 15,042 19,132 22,685 78,174 38,126
Share-based
compensation -- -- 1,007 1,007 4,215
Other adjustments (7,688) 97 (5) 213 (7,603)
Adjusted EBITDA 58,979 65,105 72,105 246,560 144,167
(*) Definition of adjusted EBITDA: Adjusted EBITDA is defined as net
(loss) income plus interest, taxes, depreciation and amortization,
share-based compensation expenses and other adjustments. Other
adjustments include change in fair value of convertible notes, foreign
exchange loss and other income.
For investor and media inquiries please contact:
China
Stephanie Song
Concord Medical Services
Phone: +86-10-5957-5287
Email: stephanie.song@cmsholdings.com
Lilian Wong
Brunswick Group, LLC
Phone: +86-10-6566-2256
Email: lwong@brunswickgroup.com
U.S.
Nicki Kahner
Brunswick Group, LLC
Phone: +1-212-333-3810
Email: nkahner@brunswickgroup.com
SOURCE Concord Medical Services Holdings Limited