Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2014
Commission File Number: 001-34563
CONCORD MEDICAL SERVICES HOLDINGS LIMITED
18/F, Tower A, Global Trade Center
36 North Third Ring Road East, Dongcheng District
Beijing 100013
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
Table of Contents
Table of Contents
TABLE OF CONTENTS
Exhibit 99.1 – Press release: Concord Medical Reports First Quarter 2014 Financial Results
Table of Contents
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CONCORD MEDICAL SERVICES HOLDINGS LIMITED | ||||
| By: | /s/ Jianyu Yang | |||
| Name: | Jianyu Yang | |||
| Title: | Chairman and Chief Executive Officer | |||
Date: May 27, 2014
Exhibit 99.1
Concord Medical Reports First Quarter 2014 Financial Results and Reiterates Full Year 2014 Earnings Guidance
BEIJING, May 21, 2014 — Concord Medical Services Holdings Limited (“Concord Medical” or the “Company”) (NYSE: CCM), a leading hospital management company and operator of the largest network of radiotherapy and diagnostic imaging centers in China, today announced its unaudited consolidated financial results for the first quarter ended March 31, 2014[1].
First Quarter 2014 Highlights
| • | Total net revenue, which consists of net revenues generated from the network business and hospital business, was RMB252.6 million ($40.6 million) in the first quarter of 2014, a 23.9% increase from RMB203.9 million in the first quarter of 2013. |
| • | Gross profit in the first quarter of 2014 was RMB85.7 million ($13.8 million), a 19.9% increase from RMB71.5 million in the first quarter of 2013. |
| • | Net income attributable to ordinary shareholders in the first quarter of 2014 was RMB26.7 million ($4.3 million), a 35.4% increase from RMB19.7 million in the first quarter of 2013. |
| • | Basic and diluted earnings per American Depositary Share (“ADS”)[2] in the first quarter of 2014 were RMB0.59 ($0.10) and RMB0.58 ($0.10), respectively, compared with RMB0.44 ($0.07) in the first quarter of 2013. |
| • | Adjusted EBITDA[3] (non-GAAP) in the first quarter of 2014 was RMB97.1 million ($15.6 million), a 16.1% increase from RMB83.6 million in the first quarter of 2013. |
Dr. Jianyu Yang, Chairman and Chief Executive Officer of Concord Medical, stated, “We are pleased to deliver robust performance in the first quarter of 2014. Total net revenue increased by 24% as compared to the first quarter of 2013 to RMB253 million. Our network and hospital business segments have experienced steady revenue growth, due to increasing patient demand driven by wider social insurance coverage and from the contribution of our new centers opened since 2013. Importantly, we experienced very strong profit growth during the quarter as net profit increased by 35% as compared to the first quarter of 2013 to RMB27 million, attributable to our strong revenue growth as well as our ongoing efforts to control cost, especially management cost.”
“China is entering a high-incidence period of cancer, which is becoming a major healthcare challenge the country is facing. According to the World Health Organization’s World Cancer Report 2014, the total number of cancer incidence and death in China in 2012 was 3 million and 2.2 million, respectively. The report also predicts that new cancer incidence in China will rise significantly from current levels in the future.”
Notes:
| [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 RMB6.2164 to US$1.00, the effective noon buying rate as of March 31, 2014 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] | Definition of adjusted EBITDA: Adjusted EBITDA is defined as net income plus interest, taxes, depreciation and amortization, share-based compensation expenses and other adjustments. Other adjustments include foreign exchange gain, loss from disposal of property, plant and equipment and other income or expense. |
Dr. Yang continued, “Recently, the Chinese government has issued a series of new policies encouraging private investment in the healthcare services sector. The new policy initiatives have provided Concord Medical with the guidelines necessary to establish our planned specialty hospitals. With our planned cancer hospitals in Shanghai and Guangzhou, along with our growing radiotherapy centers around the country and our established Chang’an Hospital, Concord Medical is rapidly becoming a nationwide hospital management company with a strong focus on cancer treatment, diagnosis and prevention.”
“With the strong financial results from the first quarter, we reiterate our 2014 full year financial guidance of earnings in the range of $0.45 to $0.50 per ADS, or $20.3 million to $22.5 million in net income attributable to ordinary shareholders. Construction will start with one specialty cancer hospital during 2014,” concluded Dr. Yang.
Recent Developments
IFC Loan - During the first quarter, the Company drew down $20 million convertible loan from the IFC. The funds will be used for the Guangzhou Concord Cancer Hospital project. The Company plans to draw down the remaining $30 million loan facility in the near future.
Shanghai Concord Cancer Hospital - On April 4, 2014, the Company announced it will establish Shanghai Concord Cancer Hospital (“Shanghai Concord”) - a premium cancer hospital - in Shanghai New Hongqiao International Medical Center. Shanghai Concord plans to open 400 beds and adopts the domestic and internationally advanced therapeutic methods, medical process and management system. It plans to install the most advanced cancer diagnosis and treatment equipment and multidiscipline system. When completed, the hospital will become a leading cancer hospital in China and Asia.
MD Anderson Consulting Agreement - The Company has signed a consulting agreement to engage The University of Texas MD Anderson Cancer Center (“MD Anderson”) as a consultant for its cancer hospital projects under planning in Shanghai and Beijing. According to the agreement, MD Anderson will provide consulting services to Concord Medical with respect to the enhancement of its cancer care program for the Company’s two projects, Shanghai Concord Cancer Hospital and Beijing Concord Cancer Hospital. This agreement is an arm’s-length contract with regular commercial terms.
First Quarter 2014 Results by Segment
Network business
The Company added two radiotherapy centers and two diagnosis centers in the first quarter of 2014, bringing the total number of centers in operation to 140 in 55 cities around China as of March 31, 2014. As of the same date, the Company entered into agreements to establish four additional centers.
Net revenues from the network business were RMB142.6 million ($22.9 million) for the first quarter of 2014, representing an increase of 27.7% from RMB111.7 million for the first quarter of 2013, primarily due to an increase in the number of patients in the Company’s existing centers, especially diagnostic centers, as well as contribution from the new centers opened during 2013.
Gross profit margin of the network business was 53.3% for the first quarter of 2014, as compared with 55.4% for the first quarter of 2013. The lower gross profit margin was primarily due to increased compensation, consumables and other operating costs at our centers.
Capital expenditure of the network business was RMB7.1 million ($1.1 million) for the first quarter of 2014, compared with RMB33.8 million in the first quarter of 2013.
Selling expenses in the network business were RMB21.7 million ($3.5 million) for the first quarter of 2014, representing an increase of 32.2% from the first quarter of 2013. The increase was contributed by selling expenses relating to our telemedicine and web business of RMB2.6 million ($0.4 million). The Company also incurred higher marketing and promotion expenses relating to newly opened centers.
General and administrative expenses in the network business were RMB21.1 million ($3.4 million), compared with RMB20.9 million for the first quarter of 2013.
Accounts receivable from the network business was RMB270.4 million ($43.5 million) as of March 31, 2014, compared to RMB272.3 million as of December 31, 2013. The average period of sales outstanding for accounts receivable, or Days Sales Outstanding (DSO), was 171 days for the first quarter of 2014, compared to 130 days for the fourth quarter of 2013.
As of March 31, 2014, the Company, not including Chang’an Hospital, had bank credit lines of RMB2,333.7 million ($375.4 million), of which RMB853.1 million ($137.2 million) were utilized.
During the first quarter of 2014, the Company handled 7,056 patient treatment cases and 83,624 patient diagnostic cases in the network, representing a 6.1% decrease and 17.6% increase from the first quarter of 2013, respectively.
Hospital business
Net revenues from the hospital business were RMB110.0 million ($17.7 million) for the first quarter of 2014, an increase of 19.2% from the first quarter of 2013. Net revenues from the hospital business for the first quarter of 2014 were comprised of:
| • | outpatient revenues of RMB25.1 million ($4.0 million), representing 23% of the net revenues from the hospital business; |
| • | inpatient revenues of RMB36.5 million ($5.9 million), representing 33% of the net revenues from the hospital business; and |
| • | medicine revenues of RMB48.4 million ($7.8 million), representing 44% of the net revenues from the hospital business. |
Cost of service for the hospital business for the first quarter of 2014 was RMB100.3 million ($16.1 million), of which the medicine cost was RMB41.7 million ($6.7 million) and the medical service cost was RMB58.6 million ($9.4 million).
Gross profit margin of the hospital business was 8.8% for the first quarter of 2014, as compared with 10.5% from the first quarter of 2013. The lower gross profit margin was primarily due to higher compensation costs to the medical team in 2014.
Capital expenditure of the hospital business was RMB7.8 million ($1.3 million) for the first quarter of 2014, compared with RMB9.8 million for the first quarter of 2013.
General and administrative expenses in the hospital business were RMB4.4 million ($0.7 million) for the first quarter of 2014, compared with RMB4.5 million for the first quarter of 2013.
As of March 31, 2014, Chang’an Hospital had accounts receivable of RMB41.7 million ($6.7 million), compared to RMB41.6 million as of December 31, 2013. The number of days sales outstanding was 34 days, compared to 32 days for the fourth quarter of 2013. The accounts receivable was mainly from medical revenues covered by various government-sponsored insurance programs. Chang’an Hospital settles the balance with the local social insurance bureau on a periodic basis.
Chang’an Hospital received 151,980 outpatients and 7,679 inpatients for the first quarter of 2014. The average bed utilization for the quarter was 81.5%. The average number of days of hospital stay was 8.8 days per patient for the quarter. Chang’an Hospital operated 1,015 beds as of March 31, 2014.
Chang’an Hospital is a leading private-owned for-profit general hospital, located in Xi’an, Shanxi Province. Established in 2002, Chang’an Hospital had 57 departments with over 1,383 medical and non-medical staff as of March 31, 2014.
2014 Outlook
For the fiscal year of 2014, the Company expects earnings in the range of $0.45 to $0.50 per ADS, or $20.3 million to $22.5 million in Net Income Attributable to Ordinary Shareholders. Construction will start with one specialty cancer hospital during 2014.
These estimates are based on current market and operating conditions, are subject to change, and may be impacted positively or negatively by factors outside the Company’s control, including but not limited to macroeconomic events in the markets in which the Company operates. See “Safe Harbor Statement” below for additional information regarding forward-looking statements.
Conference Call Information
Concord Medical’s management will hold an earnings conference call at 8:00 a.m. Eastern Daylight Time on May 22, 2014 (8:00 p.m. Beijing/Hong Kong time on May 22, 2014).
Dial-in details for the earnings conference call are as follows:
| U.S. Toll Free: | 1-866-519-4004 | |
| U.K. Toll Free: | 08082346646 | |
| International: | 65 67239381 | |
| China Toll Free: | 400-620-8038 / 800-819-0121 | |
| Hong Kong Toll Free: | 800-930-346 | |
| Passcode: | CCM |
A replay of the conference call may be accessed by phone at the following numbers for 7 days:
| U.S. Toll Free: | 1-855-452-5696 | |
| International: | +61 2 8199 0299 | |
| Conference ID: | 45145100 |
Additionally, a live and archived webcast of this conference call will be available at http://ir.concordmedical.com/.
About Concord Medical
Concord Medical Services Holdings Limited operates the largest network of radiotherapy and diagnostic imaging centers in China, measured by revenues and the number of centers in operation and is the parent of Chang’an Hospital. As of March 31, 2014, the Company operated a network of 140 centers with 80 hospital partners that spanned 55 cities and 25 provinces and administrative regions in China. Under long-term arrangements with top-tier hospitals in China, Concord Medical provides radiotherapy and diagnostic imaging equipment and manages the daily operations of these centers, which are located on the premises of its hospital partners. The Company also provides ongoing training to doctors and other medical professionals in its network of centers to ensure a high level of clinical care for patients. For more information, please see http://ir.concordmedical.com/.
Safe Harbor Statement
This news release may contain “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. 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; technological or therapeutic changes affecting the field of cancer treatment and diagnostic imaging; and possible effects on consumers and hospitals, hospital construction, and suppliers, as a result of inflation and the Chinese government’s policies and actions to control inflation. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. The Company does not assume any obligation to update any forward-looking statement, except as required by law.
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 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 current 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 income plus interest, taxes, depreciation and amortization, share-based compensation expenses, and other adjustments. Other adjustments include foreign exchange losses and other expense income. Furthermore, Adjusted EBITDA eliminates the impact of items that the Company does not consider to be indicative of the performance of the network business and hospital business. 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 information.
For more information, please contact:
Concord Medical Services
Mr. Adam J. Sun (Chinese and English)
+86 10 5957 5266
adam.sun@concordmedical.com
Mr. Ting Jia (Chinese and English)
+86 10 5903 6688 (ext. 809)
ting.jia@concordmedical.com
Ms. Gloria Huang (Chinese and English)
+86 10 5903 6688 (ext. 639)
gloria.huang@concordmedical.com
ICR Inc.
In China:
Ms. Rene Jiang
+86 10 6583-7521
rene.jiang@icrinc.com
In the United States:
Mr. William Zima
+1 203-682-8233
William.Zima@icrinc.com
Concord Medical Services Holdings Co., Ltd.
Consolidated Balance Sheets
(in thousands)
| December 31, 2013 | March 31, 2014 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| ASSETS |
||||||||||||
| Current assets |
||||||||||||
| Cash and cash equivalents |
283,033 | 221,448 | 35,623 | |||||||||
| Restricted cash, current portion |
422,140 | 417,554 | 67,170 | |||||||||
| Accounts receivable |
313,909 | 312,076 | 50,202 | |||||||||
| Inventories |
19,717 | 15,968 | 2,569 | |||||||||
| Prepayments and other current assets |
111,480 | 113,367 | 18,237 | |||||||||
| Net investments in direct financing leases, current portion |
128,814 | 133,431 | 21,464 | |||||||||
| Deferred tax assets, current portion |
10,652 | 12,747 | 2,051 | |||||||||
| Amount due from related parties |
10,265 | 11,901 | 1,914 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current assets |
1,300,010 | 1,238,492 | 199,230 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-current assets |
||||||||||||
| Property, plant and equipment, net |
1,492,573 | 1,460,465 | 234,936 | |||||||||
| Goodwill |
292,885 | 292,885 | 47,115 | |||||||||
| Intangible assets, net |
116,843 | 108,700 | 17,486 | |||||||||
| Deposits for non-current assets |
76,669 | 78,282 | 12,593 | |||||||||
| Net investments in direct financing leases, non-current portion |
199,467 | 179,365 | 28,854 | |||||||||
| Deferred tax assets, non-current portion |
17,721 | 16,591 | 2,669 | |||||||||
| Equity method investments |
217,413 | 230,215 | 37,033 | |||||||||
| Other non-current assets |
86,847 | 86,708 | 13,948 | |||||||||
| Prepaid land lease payments |
140,201 | 138,991 | 22,359 | |||||||||
| Indemnification assets |
59,518 | 59,518 | 9,574 | |||||||||
| Loan to a non-controlling shareholder of a subsidiary |
93,410 | 72,609 | 11,680 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-current assets |
2,793,547 | 2,724,329 | 438,247 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
4,093,557 | 3,962,821 | 637,477 | |||||||||
|
|
|
|
|
|
|
|||||||
| LIABILITIES AND EQUITY |
||||||||||||
| Current liabilities |
||||||||||||
| Short-term bank borrowings |
487,964 | 480,958 | 77,369 | |||||||||
| Long-term bank borrowings, current portion |
273,310 | 259,515 | 41,747 | |||||||||
| Accounts payable |
149,209 | 168,171 | 27,053 | |||||||||
| Accrual for purchase of property, plant and equipment |
49,741 | 43,126 | 6,937 | |||||||||
| Accrued expenses and other liabilities |
146,489 | 179,263 | 28,837 | |||||||||
| Income tax payable |
48,201 | 47,943 | 7,712 | |||||||||
| Deferred revenue, current portion |
15,668 | 14,774 | 2,377 | |||||||||
| Amount due to related parties, current portion |
3,217 | 1,773 | 285 | |||||||||
| Deferred tax liabilities, current portion |
860 | 860 | 138 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current liabilities |
1,174,659 | 1,196,383 | 192,455 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-current liabilities |
||||||||||||
| Long-term bank borrowings, non-current portion |
324,974 | 365,203 | 58,748 | |||||||||
| Accrued unrecognized tax benefits & surcharge, non-current portion |
67,719 | 67,719 | 10,894 | |||||||||
| Other long term liabilities |
32,769 | 33,963 | 5,463 | |||||||||
| Amount due to related parties, non-current |
26,828 | 7,528 | 1,211 | |||||||||
| Deferred tax liabilities, non-current portion |
32,891 | 33,444 | 5,380 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-current liabilities |
485,181 | 507,857 | 81,696 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
1,659,840 | 1,704,240 | 274,151 | |||||||||
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|
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| Commitments and contingencies |
||||||||||||
| EQUITY |
||||||||||||
| Ordinary shares |
105 | 105 | 17 | |||||||||
| Treasuary stock |
(5 | ) | (5 | ) | (1 | ) | ||||||
| Additional paid-in capital |
2,520,338 | 2,322,753 | 373,649 | |||||||||
| Accumulated other comprehensive loss |
(15,283 | ) | (19,896 | ) | (3,201 | ) | ||||||
| Accumulated deficit |
(383,162 | ) | (356,097 | ) | (57,283 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Total Concord Medical Services Holdings Limited shareholders’ equity |
2,121,993 | 1,946,860 | 313,181 | |||||||||
| Noncontrolling interests |
311,724 | 311,721 | 50,145 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total equity |
2,433,717 | 2,258,581 | 363,326 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities and equity |
4,093,557 | 3,962,821 | 637,477 | |||||||||
|
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|
|
|
|
|
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Concord Medical Services Holdings Limited
Consolidated Statements of Income
(in thousands, except per ADS data)
| For The Three Months Ended | ||||||||||||
| March 31, 2013 | March 31, 2014 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Revenues, net of business tax, value-added tax and related surcharges |
||||||||||||
| Network |
111,655 | 142,617 | 22,942 | |||||||||
| Hospital-Medicine income |
39,760 | 48,412 | 7,788 | |||||||||
| Hospital-Medical service income |
52,499 | 61,606 | 9,910 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total net revenues |
203,914 | 252,635 | 40,640 | |||||||||
| Cost of revenues |
||||||||||||
| Network |
(49,844 | ) | (66,644 | ) | (10,721 | ) | ||||||
| Hospital-Medicine cost |
(33,893 | ) | (41,703 | ) | (6,709 | ) | ||||||
| Hospital-Medical service cost |
(48,704 | ) | (58,612 | ) | (9,429 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Total cost of revenues |
(132,441 | ) | (166,959 | ) | (26,859 | ) | ||||||
| Gross profit |
71,473 | 85,676 | 13,781 | |||||||||
| Operating expenses |
||||||||||||
| Selling expenses |
(16,457 | ) | (21,749 | ) | (3,499 | ) | ||||||
| General and administrative expenses |
(25,403 | ) | (25,479 | ) | (4,099 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Operating income |
29,613 | 38,448 | 6,183 | |||||||||
| Interest expenses |
(9,276 | ) | (13,510 | ) | (2,173 | ) | ||||||
| Foreign exchange gain, net |
2 | 1,249 | 201 | |||||||||
| (Loss) gain on disposal of property, plant and equipment |
(110 | ) | 2,572 | 414 | ||||||||
| Interest income |
5,443 | 6,029 | 970 | |||||||||
| Share of net profit of equity investees |
4,238 | 3,829 | 616 | |||||||||
| Other (loss) income, net |
(58 | ) | 1,367 | 220 | ||||||||
|
|
|
|
|
|
|
|||||||
| Income before income taxes |
29,852 | 39,984 | 6,431 | |||||||||
| Income tax expenses |
(10,812 | ) | (12,922 | ) | (2,079 | ) | ||||||
| Net income |
19,040 | 27,062 | 4,352 | |||||||||
|
|
|
|
|
|
|
|||||||
| Net income attributable to noncontrolling interests |
(643 | ) | 405 | 65 | ||||||||
| Net income attributable to ordinary shareholders |
19,683 | 26,657 | 4,287 | |||||||||
|
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|
|
|
|
|
|||||||
| Earnings per ADS |
||||||||||||
| Basic |
0.44 | 0.59 | 0.10 | |||||||||
| Diluted |
0.44 | 0.58 | 0.10 | |||||||||
| Weighted average number of ADS outstanding: |
||||||||||||
| Basic |
45,098,232 | 44,945,433 | 44,945,433 | |||||||||
| Diluted |
45,098,232 | 46,523,047 | 46,523,047 | |||||||||
| Other comprehensive income (loss), net of tax |
||||||||||||
| Foreign currency translation |
125 | (4,613 | ) | (742 | ) | |||||||
| Total other comprehensive income (loss), net of tax |
125 | (4,613 | ) | (742 | ) | |||||||
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|
|
|
|
|
|
|||||||
| Comprehensive income |
19,165 | 22,449 | 3,610 | |||||||||
|
|
|
|
|
|
|
|||||||
| Comprehensive (loss) income attributable to noncontrolling interests |
(643 | ) | 405 | 65 | ||||||||
|
|
|
|
|
|
|
|||||||
| Comprehensive income attributable to Concord Medical Services Holdings Limited’s shareholders |
19,808 | 22,044 | 3,545 | |||||||||
|
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|
|
|
|
|
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Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures (*) (in RMB thousands, unaudited)
| For the three months ended March 31, 2013 | For the three months ended March 31, 2014 | |||||||||||||||||||||||
| GAAP Measure | Adjustment | Non-GAAP Measure | GAAP Measure | Adjustment | Non-GAAP Measure | |||||||||||||||||||
| Operating income |
29,613 | 2,244 | 31,857 | 38,448 | 1,845 | 40,293 | ||||||||||||||||||
| Net income |
19,040 | 2,244 | 21,284 | 27,062 | 1,845 | 28,907 | ||||||||||||||||||
| Basic earnings per ADS |
0.44 | 0.05 | 0.49 | 0.59 | 0.05 | 0.64 | ||||||||||||||||||
| Diluted earnings per ADS |
0.44 | 0.05 | 0.49 | 0.58 | 0.04 | 0.62 | ||||||||||||||||||
| (*) | The only adjustment is share-based compensation. |
Reconciliation from net income to adjusted EBITDA(*) (in RMB thousands, unaudited)
| For the three months ended | For the three months ended | |||||||
| March 31, 2013 | March 31, 2014 | |||||||
| Net income |
19,040 | 27,062 | ||||||
| Interest expenses, net |
3,833 | 7,481 | ||||||
| Income tax expenses |
10,812 | 12,922 | ||||||
| Depreciation and amortization |
47,473 | 52,936 | ||||||
| Share-based compensation |
2,244 | 1,845 | ||||||
| Other adjustments |
166 | (5,188 | ) | |||||
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| Adjusted EBITDA |
83,568 | 97,058 | ||||||
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| (*) | Definition of adjusted EBITDA: Adjusted EBITDA is defined as net income plus interest, taxes, depreciation and amortization, share-based compensation expenses and other adjustments. Other adjustments include foreign exchange gain, gain (loss) from disposal of property, plant and equipment and other income or expense. |