BEIJING, June 1, 2011 /PRNewswire-Asia-FirstCall/ -- China
Medical Technologies, Inc. (the "Company") (Nasdaq: CMED), a
leading China-based advanced
in-vitro diagnostic ("IVD") company, announced its unaudited
financial results for the fourth fiscal quarter ("4Q FY2010") and
the full fiscal year ended March 31,
2011 ("FY2010") today.
4Q
FY2010 Highlights
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For the Three Months Ended
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March 31, 2010
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March 31, 2011
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March 31, 2011
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RMB
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RMB
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US$
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% change
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(in thousands except for per ADS information)
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Net revenues
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175,728
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230,414
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35,187
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31.1%
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Net income
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4,820
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16,095
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2,458
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233.9%
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Diluted earnings per ADS*
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0.19
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0.61
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0.09
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221.1%
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Non-GAAP net income
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51,476
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75,002
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11,454
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45.7%
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Non-GAAP diluted earnings per ADS*
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1.98
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2.84
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0.43
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43.4%
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Adjusted EBITDA
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99,591
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140,244
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21,417
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40.8%
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FY2010 Highlights
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For the Year Ended
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March 31, 2010
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March 31, 2011
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March 31, 2011
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RMB
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RMB
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US$
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% change
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(in thousands except for per ADS information)
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Net revenues
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723,071
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842,366
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128,639
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16.5%
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Net income (loss)
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(69,582)
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82,619
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12,617
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-
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Diluted earnings (loss) per ADS*
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(2.65)
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3.14
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0.48
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-
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Non-GAAP net income
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187,295
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273,056
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41,699
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45.8%
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Non-GAAP diluted earnings per ADS*
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7.13
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10.39
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1.59
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45.7%
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Adjusted EBITDA
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387,580
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493,254
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75,326
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27.3%
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Outlook for first fiscal quarter ending
June 30, 2011
- Target net revenues are expected to range from RMB232.0 million (US$35.4
million) to RMB234.0 million (US$35.7
million), representing a year-over-year increase of 24.6% -
25.7%.
- Target non-GAAP net income is expected to range from
RMB73.0 million (US$11.1 million) to RMB74.0 million
(US$11.3 million), representing a
year-over-year increase of 28.0% - 29.8%.
- Target non-GAAP diluted earnings per ADS* is expected to range
from RMB2.75 (US$0.42) to RMB2.79 (US$0.43), representing a year-over-year increase
of 26.1% - 28.0%.
Outlook for full fiscal year ending
March 31, 2012
- Target net revenues are expected to range from RMB970.0 million (US$148.1
million) to RMB995.0 million (US$151.9 million), representing a year-over-year
increase of 15.2% - 18.1%.
- Target non-GAAP net income is expected to range from
RMB310.0 million (US$47.3 million) to RMB318.0 million
(US$48.6 million), representing a
year-over-year increase of 13.5% - 16.5%. The slightly lower growth
rate in non-GAAP net income is primarily due to the full year
impact of additional interest expense arising from new convertible
notes issued in December 2010.
- Target non-GAAP diluted earnings per ADS* is expected to range
from RMB11.70 (US$1.79) to RMB12.00 (US$1.83), representing a year-over-year increase
of 12.6% - 15.5%.
The above targets are based on the Company's current views on
the operating and market conditions, which are subject to
change.
*One American Depositary Share
("ADS") = 10 ordinary
shares
See "Non-GAAP Measure Disclosures" below, where the impact of
certain items on reported results is discussed.
"We are pleased with the quarterly results, in particular, the
continued growth of our molecular diagnostic business during the
seasonally weak quarter. We expect our FISH business and HPV-DNA
chip business to drive our growth in the following quarters,"
commented Mr. Xiaodong Wu, Chairman
and Chief Executive Officer of the Company. "We will continue to
expand our product offering in FISH probes and PCR assays as well
as develop a new SPR analyzer through investment in research and
development. We will leverage our established sales networks to
introduce our new products to our hospital customers. In addition,
we are working on several initiatives to support our sustainable
growth including discussion with a leading independent laboratory
testing service group in China for
a potential collaboration to promote the use of molecular
diagnostic tests to the group's hospital customers."
Mr. Sam Tsang, Chief Financial
Officer of the Company commented, "We issued new convertible notes
in December 2010 to extend our debt
maturity profile. We have been focusing to improve our leverage
profile and have reduced our net debt to adjusted EBITDA ratio from
5.1 times to 3.3 times. However, we believe that we are still
maintaining relatively high leverage, and the continued improvement
in our leverage to the level of 2 times or below is our priority.
We have been very cautious in making capital expenditures and did
not consider new acquisition and will continue to do so. Meanwhile,
we will maintain our investment in product research and development
which will support our future growth. We will also continue to
invest in our direct sales network to attract and retain Tier 1
hospitals which are major consumers in China's healthcare industry."
4Q FY2010 Unaudited Financial Results
The Company reported net revenues of RMB230.4 million (US$35.2
million) for 4Q FY2010, representing a 31.1% increase from
the corresponding period of FY2009.
The Company's revenues are currently generated from two
segments, molecular diagnostic systems and immunodiagnostic
systems. The molecular diagnostic system segment includes FISH
products and SPR products while the immunodiagnostic system segment
consists of ECLIA products. The customers of the molecular
diagnostic system segment, that is, Tier 1 hospitals in
China, are being served by the
Company's direct sales personnel.
Molecular diagnostic system sales for 4Q FY2010 were
RMB146.6 million (US$22.4 million), representing a 45.3% increase
from the corresponding period of FY2009. The year-over-year
increase was primarily due to the increase in usage of the
Company's FISH probes by existing and new hospital customers as
well as the sales of SPR-based HPV-DNA chips of RMB11.9 million (US$1.8
million) to hospitals during 4Q FY2010.
Immunodiagnostic system sales for 4Q FY2010 were RMB83.8 million (US$12.8
million), representing a 12.0% increase from the
corresponding period of FY2009. The year-over-year increase was
primarily due to the increase in sales of the Company's ECLIA
reagent kits to existing and new distributors.
Gross margin was 61.4% for 4Q FY2010 which decreased
year-over-year from 64.9% for the corresponding period of FY2009.
The year-over-year decrease was primarily due to the classification
of amortization of SPR intangible assets from operating expenses to
cost of revenues after the commencement of sales of HPV-DNA chips
in 2Q FY2010 which offset the positive impact on more contribution
from the sales of FISH probes which generate higher gross margin.
Non-GAAP gross margin was 82.4% for 4Q FY2010 which increased
year-over-year from 77.7% for the corresponding period of FY2009.
The year-over-year increase in non-GAAP gross margin was primarily
due to more contribution from the sales of FISH probes which
generate higher gross margin.
Research and development expenses were RMB12.6 million (US$1.9
million) for 4Q FY2010, representing a 21.8% year-over-year
increase. Non-GAAP research and development expenses were
RMB11.4 million (US$1.7 million) for 4Q FY2010, representing a
28.0% year-over-year increase. The year-over-year increase was
primarily due to product research and development for SPR analyzers
and PCR assays.
Sales and marketing expenses were RMB24.0
million (US$3.7 million) for
4Q FY2010, representing a 43.9% year-over-year increase. Non-GAAP
sales and marketing expenses were RMB23.8
million (US$3.6 million) for
4Q FY2010, representing a 42.7% year-over-year increase. The
year-over-year increase was primarily due to an increase in direct
sales efforts for molecular diagnostic systems.
General and administrative expenses were RMB25.4 million (US$3.9
million) for 4Q FY2010, representing a 5.1% year-over-year
decrease. Non-GAAP general and administrative expenses were
RMB18.4 million (US$2.8 million) for 4Q FY2010, representing a
5.0% year-over-year increase.
Interest expense on convertible notes was RMB34.6 million (US$5.3
million) for 4Q FY2010. Non-GAAP interest expense on
convertible notes was RMB33.2 million
(US$5.1 million) for 4Q FY2010. As of
March 31, 2011, the Company's
outstanding convertible notes of US$22.7
million, US$248.0 million and
US$150.0 million bear interest at
3.5%, 4% and 6.25% per annum, respectively, and will mature in
November 2011, August 2013 and December
2016, respectively.
Interest expense related to amortization of convertible notes
issuance costs was RMB4.2 million
(US$0.6 million) for 4Q FY2010.
Interest expense related to amortization of share lending costs
was RMB2.4 million (US$0.4 million) for 4Q FY2010.
Income tax expense was RMB28.1
million (US$4.3 million) for
4Q FY2010. The high effective tax rate was due to certain expenses
of the Company such as stock compensation expense, amortization of
acquired intangible assets and interest expense of convertible
notes were not deductible for income tax purpose. In addition, the
Company was required to accrue for withholding income tax on
distributable earnings generated in China.
Net income was RMB16.1 million
(US$2.5 million) for 4Q FY2010, which
improved significantly from RMB4.8
million for the corresponding period of FY2009. Non-GAAP net
income was RMB75.0 million
(US$11.5 million) for 4Q FY2010,
representing a 45.7% increase from the corresponding period of
FY2009. The significant year-over-year increase was primarily due
to the increase in both molecular diagnostic system sales and
immunodiagnostic system sales.
Earnings before interest, taxes, depreciation and amortization
("EBITDA") was RMB133.3 million
(US$20.4 million) for 4Q FY2010,
representing an 18.0% increase from the corresponding period of
FY2009. The year-over-year increase in EBITDA was primarily due to
the increase in both molecular diagnostic system sales and
immunodiagnostic system sales.
Adjusted EBITDA was RMB140.2
million (US$21.4 million) for
4Q FY2010, representing a 40.8% increase from the corresponding
period of FY2009. The reason for the increase is also due to
increased sales in 4Q FY2010.
Stock compensation expense for 4Q FY2010 was RMB8.5 million (US$1.3
million), of which RMB0.1
million was allocated to cost of revenues, RMB1.2 million to research and development
expenses, RMB0.2 million to sales and
marketing expenses and RMB7.0 million
to general and administrative expenses.
Amortization of acquired intangible assets for 4Q FY2010 was
RMB48.2 million (US$7.4 million) which was all allocated to cost
of revenues.
As of March 31, 2011, the
Company's cash and cash equivalents were RMB1,123.8 million (US$171.6 million). Net cash generated from
operating activities for 4Q FY2010 was RMB37.3 million (US$5.7
million). Net cash generated from investing activities for
4Q FY2010 was RMB18.8 million
(US$2.9 million). Net cash used in
financing activities for 4Q FY2010 was RMB48.9 million (US$7.5
million).
As of March 31, 2011, the
Company's net accounts receivable was RMB481.1 million (US$73.5
million), representing an increase of 21.0% from the balance
at December 31, 2010. The increase in
net accounts receivable was primarily due to the increase in
molecular diagnostic system sales to hospital customers.
FY2010 Unaudited Financial Results
Net revenues were RMB842.4 million
(US$128.6 million) for FY2010,
representing a 16.5% year-over-year increase. The year-over-year
increase in revenues was primarily due to the increase in molecular
diagnostic system sales.
Gross margin was 60.3% for FY2010 which decreased year-over-year
from 67.1% for FY2009. The year-over-year decrease was primarily
due to the classification of amortization of SPR intangible assets
from operating expenses to cost of revenues after the commencement
of sales of HPV-DNA chips in 2Q FY2010 which offset the positive
impact on more contribution from the sales of FISH probes which
generate higher gross margin. Non-GAAP gross margin was 80.3% for
FY2010 which increased year-over-year from 79.6% for FY2009. The
year-over-year increase in non-GAAP gross margin was primarily due
to more contribution from the sales of FISH probes which generate
higher gross margin.
Research and development expenses were RMB46.5 million (US$7.1
million) for FY2010, representing a 9.9% year-over-year
increase. Non-GAAP research and development expenses were
RMB41.5 million (US$6.3 million) for FY2010, representing a 15.5%
year-over-year increase. The year-over-year increase was primarily
due to product research and development for FISH probes, SPR
analyzers and PCR assays.
Sales and marketing expenses were RMB88.2
million (US$13.5 million) for
FY2010, representing a 37.7% year-over-year increase. Non-GAAP
sales and marketing expenses were RMB87.5
million (US$13.4 million) for
FY2010, representing a 36.6% year-over-year increase. The
year-over-year increase was primarily due to an increase in direct
sales efforts for molecular diagnostic systems.
General and administrative expenses were RMB96.6 million (US$14.7
million) for FY2010, representing a 33.3% year-over-year
decrease. Non-GAAP general and administrative expenses were
RMB65.4 million (US$10.0 million) for FY2010, representing a 40.8%
year-over-year decrease. The year-over-year decrease was primarily
because the Company incurred costs for the independent internal
investigation in FY2009 which did not recur in FY2010.
Net income was RMB82.6 million
(US$12.6 million) for FY2010, which
improved significantly from net loss of RMB69.6 million for FY2009. Non-GAAP net income
was RMB273.1 million (US$41.7 million) for FY2010, representing a 45.8%
year-over-year increase from FY2009.
EBITDA was RMB531.2 million
(US$81.1 million) for FY2010,
representing a 43.1% year-over-year increase from FY2009.
Adjusted EBITDA was RMB493.3
million (US$75.3 million) for
FY2010, representing a 27.3% year-over-year increase from
FY2009.
Stock compensation expense for FY2010 was RMB37.2 million (US$5.7
million), of which RMB0.4
million was allocated to cost of revenues, RMB4.9 million to research and development
expenses, RMB0.7 million to sales and
marketing expenses and RMB31.2
million to general and administrative expenses.
Amortization of acquired intangible assets for FY2010 was
RMB196.0 million (US$29.9 million), of which RMB168.7 million was allocated to cost of
revenues and RMB27.3 million to
operating expenses.
For the convenience of readers, certain RMB amounts have been
translated into U.S. dollars at the rate of RMB6.5483 to US$1.00, the noon buying rate in
New York City for cable transfers
of RMB per U.S. dollar as set forth in the H.10 weekly statistical
release of the Federal Reserve Board, as of Thursday, March 31, 2011. No representation is
made that the RMB amounts could have been or could be converted
into U.S. dollars at that rate or at any other rate on March 31, 2011 or at any other dates.
Product Development Plan
The Company plans to focus on the following product development
activities with respect to its molecular diagnostic products:
FISH
- to develop more applications in the areas of prenatal
diagnosis, cancer detection and companion diagnostics for cancer
targeted drugs through internal research and development.
SPR
- to develop a new automated analyzer for hospitals and
independent laboratories to conduct HPV tests using our DNA chips
through internal research and development.
PCR
- to develop more assays in the area of companion diagnostics for
cancer targeted drugs through internal research and
development.
Update on Receivable from Chengxuan
As of March 31, 2011, the
remaining amount of the receivable from Chengxuan, a company which
is one of the Company's major shareholders and is owned by Mr.
Xiaodong Wu, was reduced from
US$18 million to US$15 million. This
receivable relates to the sale of the Company's HIFU business to
Chengxuan. Subsequently, Chengxuan paid US$8
million to the Company and indicated that the remaining
balance of US$7 million together with
interest thereon will be paid in full before June 30, 2011.
Non-GAAP Measure Disclosures
The Company reported its operating results in accordance with
U.S. generally accepted accounting principles ("GAAP") for the
three months and the year ended March 31,
2010 and 2011, respectively. The Company also presented
non-GAAP information, which included EBITDA and adjusted EBITDA,
for the three months and the year ended March 31, 2010 and 2011, respectively. The
non-GAAP measures are defined below:
- Non-GAAP gross profit represents gross profit reported
in accordance with GAAP, excluding the effects of stock
compensation expense and amortization of acquired intangible
assets.
- Non-GAAP gross margin represents non-GAAP gross profit
divided by net revenues.
- Non-GAAP research and development expenses represent
research and development expenses reported in accordance with GAAP,
excluding the effects of stock compensation expense.
- Non-GAAP sales and marketing expenses represent sales
and marketing expenses reported in accordance with GAAP, excluding
the effects of stock compensation expense.
- Non-GAAP general and administrative expenses represent
general and administrative expenses reported in accordance with
GAAP, excluding the effects of stock compensation expense.
- Non-GAAP operating income represents operating income
reported in accordance with GAAP, excluding the effects of stock
compensation expense and amortization of acquired intangible
assets.
- Non-GAAP interest expense on convertible notes
represents interest expense on convertible notes reported in
accordance with GAAP, excluding the effects of non-cash interest
expense of convertible notes.
- Non-GAAP interest expense on amortization of share
lending costs represents the exclusion of interest expense on
amortization of share lending costs reported in accordance with
GAAP, as this item is non-cash.
- Non-GAAP other income (expense),
net represents other income and expense, net reported in
accordance with GAAP, excluding the effects of gain on repurchase
of convertible notes as well as high yield note offering
expenses.
- Non-GAAP net income represents net income reported in
accordance with GAAP, excluding the effects of stock compensation
expense, amortization of acquired intangible assets, non-cash
interest expense of convertible notes, interest expense for
amortization of share lending costs, gain on repurchase of
convertible notes as well as high yield note offering
expenses.
- Non-GAAP earnings per ADS represents non-GAAP net income
divided by the weighted average number of ADSs used in computing
basic and diluted earnings per ADS in accordance with GAAP.
- EBIT represents net income reported in accordance with
GAAP, excluding the effects of interest income, interest expense
and income tax expense.
- EBITDA represents net income reported in accordance with
GAAP, excluding the effects of interest income, interest expense,
income tax expense, depreciation and amortization.
- Adjusted EBITDA represents EBITDA excluding the effects
of stock compensation expense, gain on repurchase of convertible
notes as well as high yield note offering expenses.
Non-GAAP financial measures are used by the Company in its
financial and operating decision-making because management believes
they reflect the Company's ongoing business in a manner that allows
meaningful period-to-period comparison. The Company's management
believes that these non-GAAP financial measures provide useful
information to investors and others in understanding and evaluating
the Company's current operating performance and future prospects in
the same manner as management does, if they so choose.
The presentation of this additional financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. For a reconciliation of the non-GAAP financial measures to
the most directly comparable GAAP financial measures, please see
the financial information included with this earnings
announcement.
Conference Call
The Company's senior management team will host an earnings
conference call at 8:00 a.m. U.S.
Eastern Time on June 2, 2011 (or
8:00 p.m. Beijing/Hong
Kong time on the same date) to discuss the results following
this earnings announcement.
The dial-in details for the live conference call are as
follows:
- U.S. Toll Free
Number 1-800-215-2410
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- International
Dial-in Number 1-617-597-5410
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Passcode: CMEDCALL
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A live webcast of the conference call will be available on
http://ir.chinameditech.com.
A replay of this webcast will be available for one month on this
website.
A telephone replay of the call will be available after the
conclusion of the conference call through 10:00 a.m. U.S. Eastern Time on June 3, 2011.
The dial-in details for the replay are as follows:
- U.S. Toll Free
Number 1-888-286-8010
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- International
Dial-in Number 1-617-801-6888
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Passcode: 61583099
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About China Medical Technologies, Inc.
China Medical Technologies, Inc. is a leading China-based advanced IVD company using
molecular diagnostic technologies including Fluorescent in situ
Hybridization (FISH) and Surface Plasmon Resonance (SPR) and an
immunodiagnostic technology, Enhanced Chemiluminescence Immunoassay
(ECLIA), to develop, manufacture and distribute diagnostic products
used for the detection of various cancers, diseases and disorders
as well as companion diagnostic tests for targeted cancer drugs.
The Company generates all of its revenues in China through the sale of diagnostic
consumables including FISH probes, SPR-based DNA chips and ECLIA
reagent kits to hospitals which are recurring users of the
consumables for their patients. The Company sells FISH probes and
SPR chips to large hospitals through its direct sales personnel and
ECLIA reagent kits to small and mid-size hospitals through
distributors. For more information, please visit
http://www.chinameditech.com.
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 "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar
statements. Among other things, the quotations from management in
this press release, as well as its outlook for the first fiscal
quarter ending June 30, 2011 and full
fiscal year ending March 31, 2012,
contain forward-looking statements. Such statements involve certain
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Further
information regarding these and other risks is included in the
Company's filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F. The Company does not
undertake any obligation to update any forward-looking statement as
a result of new information, future events or otherwise, except as
required under applicable law.
Contacts
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Sam Tsang and Winnie
Yam
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Tel: 852-2511-9808
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Email: IR@chinameditech.com
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China Medical Technologies,
Inc.
Unaudited Condensed
Consolidated Balance
Sheets
|
|
|
As of
|
|
|
December 31, 2010
|
|
March 31, 2011
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands)
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
1,119,384
|
|
1,123,818
|
|
171,620
|
|
Trade accounts receivable, net
|
397,739
|
|
481,096
|
|
73,469
|
|
Inventories
|
16,640
|
|
19,273
|
|
2,943
|
|
Prepayments and other receivables
|
10,521
|
|
18,952
|
|
2,894
|
|
Due from a related party
|
118,800
|
|
98,225
|
|
15,000
|
|
Total current assets
|
1,663,084
|
|
1,741,364
|
|
265,926
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
144,251
|
|
139,448
|
|
21,295
|
|
Land use rights
|
6,906
|
|
6,859
|
|
1,047
|
|
Goodwill
|
8,654
|
|
8,654
|
|
1,322
|
|
Intangible assets, net
|
3,042,474
|
|
2,973,358
|
|
454,066
|
|
Convertible notes issuance costs
|
60,163
|
|
55,817
|
|
8,524
|
|
Share lending costs
|
25,133
|
|
22,562
|
|
3,445
|
|
Total assets
|
4,950,665
|
|
4,948,062
|
|
755,625
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Trade accounts payable
|
44,477
|
|
44,502
|
|
6,796
|
|
Accrued liabilities and other payables
|
174,978
|
|
191,120
|
|
29,186
|
|
Convertible notes
|
186,763
|
|
146,081
|
|
22,308
|
|
Income taxes payable
|
63,859
|
|
77,954
|
|
11,904
|
|
Total current liabilities
|
470,077
|
|
459,657
|
|
70,194
|
|
|
|
|
|
|
|
|
Convertible notes
|
2,626,800
|
|
2,606,223
|
|
398,000
|
|
Deferred income taxes
|
84,936
|
|
91,596
|
|
13,988
|
|
Total liabilities
|
3,181,813
|
|
3,157,476
|
|
482,182
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
Ordinary shares US$0.1 par value:
|
|
|
|
|
|
|
500,000,000 authorized; 322,680,001 issued and
outstanding as of December 31, 2010 and March 31,
2011
|
258,840
|
|
258,840
|
|
39,528
|
|
Additional paid-in capital
|
869,439
|
|
875,448
|
|
133,691
|
|
Treasury stock
|
(201,362)
|
|
(201,362)
|
|
(30,750)
|
|
Accumulated other comprehensive loss
|
(76,923)
|
|
(77,293)
|
|
(11,804)
|
|
Retained earnings
|
918,858
|
|
934,953
|
|
142,778
|
|
Total shareholders' equity
|
1,768,852
|
|
1,790,586
|
|
273,443
|
|
Total liabilities and shareholders' equity
|
4,950,665
|
|
4,948,062
|
|
755,625
|
|
|
|
|
|
|
|
|
|
China Medical Technologies,
Inc.
Unaudited
Condensed
Consolidated
Statements of Income
and
Reconciliations of
GAAP Measures
to Non-GAAP
Measures
|
|
|
For the Three Months Ended
|
|
For the Three Months Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
As adjusted
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands except for per ADS information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues (1)
|
175,728
|
|
-
|
|
175,728
|
|
230,414
|
|
-
|
|
230,414
|
|
Cost of revenues (2)
|
(61,624)
|
|
22,423
|
|
(39,201)
|
|
(88,948)
|
|
48,295
|
|
(40,653)
|
|
Gross profit
|
114,104
|
|
22,423
|
|
136,527
|
|
141,466
|
|
48,295
|
|
189,761
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
|
|
|
|
|
|
|
|
|
|
|
|
|
development (3)
|
(10,352)
|
|
1,440
|
|
(8,912)
|
|
(12,612)
|
|
1,208
|
|
(11,404)
|
|
Sales and marketing (3)
|
(16,695)
|
|
-
|
|
(16,695)
|
|
(24,017)
|
|
192
|
|
(23,825)
|
|
General and
|
|
|
|
|
|
|
|
|
|
|
|
|
administrative (3)
|
(26,743)
|
|
9,252
|
|
(17,491)
|
|
(25,381)
|
|
7,009
|
|
(18,372)
|
|
Amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
SPR intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
assets (4)
|
(27,343)
|
|
27,343
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Total operating expenses
|
(81,133)
|
|
38,035
|
|
(43,098)
|
|
(62,010)
|
|
8,409
|
|
(53,601)
|
|
Operating income
|
32,971
|
|
60,458
|
|
93,429
|
|
79,456
|
|
56,704
|
|
136,160
|
|
Interest income
|
4,155
|
|
-
|
|
4,155
|
|
5,779
|
|
-
|
|
5,779
|
|
Interest expense –
|
|
|
|
|
|
|
|
|
|
|
|
|
convertible notes (5)
|
(34,831)
|
|
7,618
|
|
(27,213)
|
|
(34,612)
|
|
1,387
|
|
(33,225)
|
|
Interest expense –
amortization of
convertible notes
issuance costs
|
(4,263)
|
|
-
|
|
(4,263)
|
|
(4,150)
|
|
-
|
|
(4,150)
|
|
Interest expense –
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
share lending costs (6)
|
(2,644)
|
|
2,644
|
|
-
|
|
(2,386)
|
|
2,386
|
|
-
|
|
Other income (expense),
|
|
|
|
|
|
|
|
|
|
|
|
|
net (7)
|
24,638
|
|
(24,064)
|
|
574
|
|
144
|
|
(1,570)
|
|
(1,426)
|
|
Income before
|
|
|
|
|
|
|
|
|
|
|
|
|
income tax
|
20,026
|
|
46,656
|
|
66,682
|
|
44,231
|
|
58,907
|
|
103,138
|
|
Income tax expense
|
(15,206)
|
|
-
|
|
(15,206)
|
|
(28,136)
|
|
-
|
|
(28,136)
|
|
Net income
|
4,820
|
|
46,656
|
|
51,476
|
|
16,095
|
|
58,907
|
|
75,002
|
|
Earnings per ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
- basic (8)
|
0.19
|
|
1.79
|
|
1.98
|
|
0.61
|
|
2.25
|
|
2.86
|
|
- diluted (8)
|
0.19
|
|
1.79
|
|
1.98
|
|
0.61
|
|
2.23
|
|
2.84
|
|
Weighted average
|
|
|
|
|
|
|
|
|
|
|
|
|
number of ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
- basic (8)
|
25,993,349
|
|
-
|
|
25,993,349
|
|
26,184,308
|
|
-
|
|
26,184,308
|
|
- diluted (8)
|
26,050,599
|
|
-
|
|
26,050,599
|
|
26,448,663
|
|
-
|
|
26,448,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Medical Technologies,
Inc.
Unaudited
Condensed
Consolidated
Statements of Income
and
Reconciliations of
GAAP Measures to
Non-GAAP
Measures
Convenience
Translation for Reference
Only
|
|
|
For the Three Months Ended
|
|
|
March 31, 2011
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
|
US$
|
|
US$
|
|
US$
|
|
|
(in thousands except for per ADS information)
|
|
|
|
|
|
|
|
|
Net revenues (1)
|
35,187
|
|
-
|
|
35,187
|
|
Cost of revenues (2)
|
(13,583)
|
|
7,375
|
|
(6,208)
|
|
Gross profit
|
21,604
|
|
7,375
|
|
28,979
|
|
Operating expenses
|
|
|
|
|
|
|
Research and development (3)
|
(1,926)
|
|
185
|
|
(1,741)
|
|
Sales and marketing (3)
|
(3,668)
|
|
30
|
|
(3,638)
|
|
General and administrative (3)
|
(3,876)
|
|
1,070
|
|
(2,806)
|
|
Amortization of SPR intangible assets (4)
|
-
|
|
-
|
|
-
|
|
Total operating expenses
|
(9,470)
|
|
1,285
|
|
(8,185)
|
|
Operating income
|
12,134
|
|
8,660
|
|
20,794
|
|
Interest income
|
883
|
|
-
|
|
883
|
|
Interest expense – convertible notes (5)
|
(5,286)
|
|
212
|
|
(5,074)
|
|
Interest expense – amortization of
|
|
|
|
|
|
|
convertible notes issuance costs
|
(634)
|
|
-
|
|
(634)
|
|
Interest expense – amortization of
|
|
|
|
|
|
|
share lending costs (6)
|
(364)
|
|
364
|
|
-
|
|
Other income (expense), net (7)
|
22
|
|
(240)
|
|
(218)
|
|
Income before income tax
|
6,755
|
|
8,996
|
|
15,751
|
|
Income tax expense
|
(4,297)
|
|
-
|
|
(4,297)
|
|
Net income
|
2,458
|
|
8,996
|
|
11,454
|
|
Earnings per ADS
|
|
|
|
|
|
|
- basic (8)
|
0.09
|
|
0.35
|
|
0.44
|
|
- diluted (8)
|
0.09
|
|
0.34
|
|
0.43
|
|
Weighted average number of ADS
|
|
|
|
|
|
|
- basic (8)
|
26,184,308
|
|
-
|
|
26,184,308
|
|
- diluted (8)
|
26,448,663
|
|
-
|
|
26,448,663
|
|
For the convenience of readers,
certain RMB amounts have been translated into U.S. dollars at the
rate of
RMB6.5483 to US$1.00,
the noon buying rate in New York City for cable transfers of RMB
per U.S. dollar as
set forth in the H.10 weekly
statistical release of the Federal Reserve Board, as of
Thursday,
March 31,
2011.
No representation is made that
the RMB amounts could have been or could be converted
into U.S. dollars at
that rate or at any other rate
on March 31,
2011 or at any
other dates.
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
(1) Net revenues
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
- Molecular diagnostic systems
|
100,897
|
|
146,635
|
|
22,393
|
|
- Immunodiagnostic systems
|
74,831
|
|
83,779
|
|
12,794
|
|
|
175,728
|
|
230,414
|
|
35,187
|
|
Molecular diagnostic systems
|
|
|
|
|
|
|
- HPV-DNA chips
|
-
|
|
11,922
|
|
1,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Non-GAAP
numbers exclude stock compensation expense and
amortization of acquired
intangible assets.
|
|
|
|
For the Three Months Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
|
|
|
|
|
|
|
Stock compensation expense
|
-
|
|
110
|
|
17
|
|
Amortization of acquired intangible assets
|
22,423
|
|
48,185
|
|
7,358
|
|
|
22,423
|
|
48,295
|
|
7,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Non-GAAP
numbers exclude stock compensation expense.
|
|
(4) Non-GAAP
numbers exclude amortization of
acquired intangible
assets.
|
|
(5) Non-GAAP
numbers exclude non-cash interest expense of
convertible notes.
|
|
(6) Non-GAAP
numbers exclude interest expense for
amortization of share lending costs.
|
|
(7) Non-GAAP
numbers exclude gain on repurchase of
convertible notes.
|
|
|
|
For the Three Months Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
|
|
|
|
|
|
|
Gain on repurchase of convertible notes
|
24,064
|
|
1,570
|
|
240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8) Interest
expense and amortization in connection with convertible notes
were not added back
in computing GAAP diluted earnings per ADS because
they were
anti-dilutive. Non-GAAP earnings per ADS
represents non-GAAP net
income divided by the weighted average number of ADSs used in
computing basic and diluted earnings per ADS in accordance with
GAAP.
|
|
(9) As a result of the
adoption of new authoritative
guidance governing the
accounting for own-share lending arrangements
in contemplation of convertible debt issuance or other financing,
effective on April 1, 2010, the Company adjusted
relevant numbers in the unaudited condensed consolidated statements
of income for
the three months ended March 31,
2010 retrospectively in accordance
with GAAP.
|
|
|
China Medical Technologies,
Inc.
Unaudited
Condensed
Consolidated
Statements of Income
and
Reconciliations of
GAAP Measures
to Non-GAAP
Measures
|
|
|
For the Year
Ended
|
|
For the Year
Ended
|
|
|
March 31,
2010
|
|
March 31,
2011
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
RMB
|
|
|
As
adjusted
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands except for per ADS information)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues (1)
|
723,071
|
|
-
|
|
723,071
|
|
842,366
|
|
-
|
|
842,366
|
|
Cost of revenues (2)
|
(237,550)
|
|
89,720
|
|
(147,830)
|
|
(334,682)
|
|
169,086
|
|
(165,596)
|
|
Gross profit
|
485,521
|
|
89,720
|
|
575,241
|
|
507,684
|
|
169,086
|
|
676,770
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
|
|
|
|
|
|
|
|
|
|
|
|
|
development (3)
|
(42,293)
|
|
6,335
|
|
(35,958)
|
|
(46,469)
|
|
4,946
|
|
(41,523)
|
|
Sales and marketing (3)
|
(64,055)
|
|
-
|
|
(64,055)
|
|
(88,182)
|
|
672
|
|
(87,510)
|
|
General and
|
|
|
|
|
|
|
|
|
|
|
|
|
administrative (3)
|
(144,671)
|
|
34,102
|
|
(110,569)
|
|
(96,567)
|
|
31,151
|
|
(65,416)
|
|
Amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
SPR intangible
|
|
|
|
|
|
|
|
|
|
|
|
|
assets (4)
|
(109,395)
|
|
109,395
|
|
-
|
|
(27,329)
|
|
27,329
|
|
-
|
|
Total operating expenses
|
(360,414)
|
|
149,832
|
|
(210,582)
|
|
(258,547)
|
|
64,098
|
|
(194,449)
|
|
Operating income
|
125,107
|
|
239,552
|
|
364,659
|
|
249,137
|
|
233,184
|
|
482,321
|
|
Interest income
|
13,456
|
|
-
|
|
13,456
|
|
20,882
|
|
-
|
|
20,882
|
|
Interest expense –
|
|
|
|
|
|
|
|
|
|
|
|
|
convertible notes (5)
|
(141,123)
|
|
30,477
|
|
(110,646)
|
|
(131,918)
|
|
22,628
|
|
(109,290)
|
|
Interest expense –
amortization of
convertible notes
issuance costs
|
(17,402)
|
|
-
|
|
(17,402)
|
|
(16,009)
|
|
-
|
|
(16,009)
|
|
Interest expense –
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization of
|
|
|
|
|
|
|
|
|
|
|
|
|
share lending costs (6)
|
(10,912)
|
|
10,912
|
|
-
|
|
(9,731)
|
|
9,731
|
|
-
|
|
Other income (expense),
|
|
|
|
|
|
|
|
|
|
|
|
|
net (7)
|
24,848
|
|
(24,064)
|
|
784
|
|
64,086
|
|
(75,106)
|
|
(11,020)
|
|
Income (loss) before
|
|
|
|
|
|
|
|
|
|
|
|
|
income tax
|
(6,026)
|
|
256,877
|
|
250,851
|
|
176,447
|
|
190,437
|
|
366,884
|
|
Income tax expense
|
(63,556)
|
|
-
|
|
(63,556)
|
|
(93,828)
|
|
-
|
|
(93,828)
|
|
Net income (loss)
|
(69,582)
|
|
256,877
|
|
187,295
|
|
82,619
|
|
190,437
|
|
273,056
|
|
Earnings (loss) per ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
- basic (8)
|
(2.65)
|
|
9.78
|
|
7.13
|
|
3.16
|
|
7.30
|
|
10.46
|
|
- diluted (8)
|
(2.65)
|
|
9.78
|
|
7.13
|
|
3.14
|
|
7.25
|
|
10.39
|
|
Weighted average
|
|
|
|
|
|
|
|
|
|
|
|
|
number of ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
- basic (8)
|
26,254,639
|
|
-
|
|
26,254,639
|
|
26,114,768
|
|
-
|
|
26,114,768
|
|
- diluted (8)
|
26,254,639
|
|
-
|
|
26,254,639
|
|
26,280,000
|
|
-
|
|
26,280,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Medical Technologies,
Inc.
Unaudited
Condensed
Consolidated
Statements of Income
and
Reconciliations of
GAAP Measures
to Non-GAAP
Measures
Convenience
Translation for Reference
only
|
|
|
For the Year Ended
|
|
|
March 31, 2011
|
|
|
GAAP
|
|
Adjustments
|
|
Non-GAAP
|
|
|
US$
|
|
US$
|
|
US$
|
|
|
(in thousands except for per ADS information)
|
|
|
|
|
|
|
|
|
Net revenues (1)
|
128,639
|
|
-
|
|
128,639
|
|
Cost of revenues (2)
|
(51,110)
|
|
25,822
|
|
(25,288)
|
|
Gross profit
|
77,529
|
|
25,822
|
|
103,351
|
|
Operating expenses
|
|
|
|
|
|
|
Research and development (3)
|
(7,096)
|
|
755
|
|
(6,341)
|
|
Sales and marketing (3)
|
(13,466)
|
|
103
|
|
(13,363)
|
|
General and administrative (3)
|
(14,747)
|
|
4,757
|
|
(9,990)
|
|
Amortization of SPR intangible assets (4)
|
(4,173)
|
|
4,173
|
|
-
|
|
Total operating expenses
|
(39,482)
|
|
9,788
|
|
(29,694)
|
|
Operating income
|
38,047
|
|
35,610
|
|
73,657
|
|
Interest income
|
3,189
|
|
-
|
|
3,189
|
|
Interest expense – convertible notes (5)
|
(20,145)
|
|
3,455
|
|
(16,690)
|
|
Interest expense – amortization of
|
|
|
|
|
|
|
convertible notes issuance costs
|
(2,445)
|
|
-
|
|
(2,445)
|
|
Interest expense – amortization of
|
|
|
|
|
|
|
share lending costs (6)
|
(1,486)
|
|
1,486
|
|
-
|
|
Other income (expense), net (7)
|
9,786
|
|
(11,469)
|
|
(1,683)
|
|
Income before income tax
|
26,946
|
|
29,082
|
|
56,028
|
|
Income tax expense
|
(14,329)
|
|
-
|
|
(14,329)
|
|
Net income
|
12,617
|
|
29,082
|
|
41,699
|
|
Earnings per ADS
|
|
|
|
|
|
|
- basic (8)
|
0.48
|
|
1.12
|
|
1.60
|
|
- diluted (8)
|
0.48
|
|
1.11
|
|
1.59
|
|
Weighted average number of ADS
|
|
|
|
|
|
|
- basic (8)
|
26,114,768
|
|
-
|
|
26,114,768
|
|
- diluted (8)
|
26,280,000
|
|
-
|
|
26,280,000
|
|
For the convenience of readers,
certain RMB amounts have been translated into U.S. dollars at the
rate of
RMB6.5483 to US$1.00,
the noon buying rate in New York City for cable transfers of RMB
per U.S. dollar
as set forth in the H.10 weekly
statistical release of the Federal Reserve Board, as of
Thursday,
March 31,
2011. No
representation is made that the RMB amounts could have been or
could be converted into U.S.
dollars at that rate or at any
other rate on March 31,
2011 or at any
other dates.
|
|
|
|
|
|
|
|
|
For the Year Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
(1) Net revenues
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
- Molecular diagnostic systems
|
384,762
|
|
508,162
|
|
77,602
|
|
- Immunodiagnostic systems
|
338,309
|
|
334,204
|
|
51,037
|
|
|
723,071
|
|
842,366
|
|
128,639
|
|
Molecular diagnostic systems
|
|
|
|
|
|
|
- HPV-DNA chips
|
-
|
|
24,928
|
|
3,807
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Non-GAAP
numbers exclude stock compensation expense and
amortization of acquired
intangible assets.
|
|
|
|
For the Year Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
|
|
|
|
|
|
|
Stock compensation expense
|
-
|
|
385
|
|
59
|
|
Amortization of acquired intangible assets
|
89,720
|
|
168,701
|
|
25,763
|
|
|
89,720
|
|
169,086
|
|
25,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Non-GAAP
numbers exclude stock compensation expense.
|
|
(4) Non-GAAP
numbers exclude amortization of
acquired intangible
assets.
|
|
(5) Non-GAAP
numbers exclude non-cash interest expense of convertible
notes.
|
|
(6) Non-GAAP
numbers exclude interest expense for
amortization of share lending costs.
|
|
(7) Non-GAAP
numbers exclude gain on repurchase of convertible notes as well as
high yield note offering expenses.
|
|
|
|
For the Year Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
RMB'000
|
|
RMB'000
|
|
US$'000
|
|
|
|
|
|
|
|
|
Gain on repurchase of convertible notes
|
24,064
|
|
80,342
|
|
12,269
|
|
High yield note offering expenses
|
-
|
|
(5,236)
|
|
(800)
|
|
|
24,064
|
|
75,106
|
|
11,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8) Interest
expense and amortization in connection with convertible notes
were not added back
in computing GAAP diluted earnings per ADS because
they were
anti-dilutive. Non-GAAP earnings per ADS
represents non-GAAP net
income divided by the weighted average number of ADSs used in
computing basic and diluted earnings per ADS in accordance with
GAAP.
|
|
(9) As a result of the
adoption of new authoritative
guidance governing the
accounting for own-share lending arrangements
in contemplation of convertible debt issuance or other financing,
effective on April 1, 2010, the Company adjusted
relevant numbers in the unaudited condensed consolidated statements
of income for
the year ended
March 31,
2010 retrospectively in accordance
with GAAP.
|
|
|
China Medical Technologies,
Inc.
Unaudited Condensed
Consolidated
Statements of Cash Flows
|
|
|
For the Three Months Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands)
|
|
Net cash provided by operating activities
|
59,758
|
|
37,339
|
|
5,702
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
(609)
|
|
18,789
|
|
2,869
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
(73,596)
|
|
(48,921)
|
|
(7,471)
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate change on cash
|
|
|
|
|
|
|
and cash equivalents
|
13
|
|
(2,773)
|
|
(423)
|
|
Net increase (decrease) in cash and cash equivalents
|
(14,434)
|
|
4,434
|
|
677
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
At beginning of period
|
829,887
|
|
1,119,384
|
|
170,943
|
|
At end of period
|
815,453
|
|
1,123,818
|
|
171,620
|
|
|
|
|
|
|
|
|
|
For the Year Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
(in thousands)
|
|
Net cash provided by operating activities
|
279,877
|
|
224,176
|
|
34,234
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
(715,522)
|
|
94,169
|
|
14,381
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
(205,061)
|
|
(3,000)
|
|
(458)
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate change on cash
|
|
|
|
|
|
|
and cash equivalents
|
(251)
|
|
(6,980)
|
|
(1,066)
|
|
Net increase (decrease) in cash and cash equivalents
|
(640,957)
|
|
308,365
|
|
47,091
|
|
Cash and cash equivalents:
|
|
|
|
|
|
|
At beginning of period
|
1,456,410
|
|
815,453
|
|
124,529
|
|
At end of period
|
815,453
|
|
1,123,818
|
|
171,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
China Medical Technologies,
Inc.
EBITDA and
Adjusted
EBITDA Measures
|
|
|
For the Three Months Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
As adjusted (1)
|
|
|
|
|
|
|
(in thousands)
|
|
Net income
|
4,820
|
|
16,095
|
|
2,458
|
|
Adjustments:
|
|
|
|
|
|
|
Interest income
|
(4,155)
|
|
(5,779)
|
|
(883)
|
|
Interest expense – convertible notes
|
34,831
|
|
34,612
|
|
5,286
|
|
Interest expense – amortization of convertible
notes issuance costs
|
4,263
|
|
4,150
|
|
634
|
|
Interest expense – amortization of share
lending costs
|
2,644
|
|
2,386
|
|
364
|
|
Income tax expense
|
15,206
|
|
28,136
|
|
4,297
|
|
EBIT (2)
|
57,609
|
|
79,600
|
|
12,156
|
|
Adjustments:
|
|
|
|
|
|
|
Depreciation
|
5,588
|
|
5,510
|
|
842
|
|
Amortization
|
49,766
|
|
48,185
|
|
7,358
|
|
EBITDA (3)
|
112,963
|
|
133,295
|
|
20,356
|
|
|
|
|
|
|
|
|
EBITDA (3)
|
112,963
|
|
133,295
|
|
20,356
|
|
Adjustments:
|
|
|
|
|
|
|
Stock compensation expense
|
10,692
|
|
8,519
|
|
1,301
|
|
Gain on repurchase of convertible notes
|
(24,064)
|
|
(1,570)
|
|
(240)
|
|
Adjusted EBITDA (4)
|
99,591
|
|
140,244
|
|
21,417
|
|
|
|
|
|
|
|
|
|
For the Year Ended
|
|
|
March 31, 2010
|
|
March 31, 2011
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
As adjusted (1)
|
|
|
|
|
|
|
(in thousands)
|
|
Net income (loss)
|
(69,582)
|
|
82,619
|
|
12,617
|
|
Adjustments:
|
|
|
|
|
|
|
Interest income
|
(13,456)
|
|
(20,882)
|
|
(3,189)
|
|
Interest expense – convertible notes
|
141,123
|
|
131,918
|
|
20,145
|
|
Interest expense – amortization of convertible
notes issuance costs
|
17,402
|
|
16,009
|
|
2,445
|
|
Interest expense – amortization of share
lending costs
|
10,912
|
|
9,731
|
|
1,486
|
|
Income tax expense
|
63,556
|
|
93,828
|
|
14,329
|
|
EBIT (2)
|
149,955
|
|
313,223
|
|
47,833
|
|
Adjustments:
|
|
|
|
|
|
|
Depreciation
|
22,137
|
|
21,953
|
|
3,352
|
|
Amortization
|
199,115
|
|
196,030
|
|
29,936
|
|
EBITDA (3)
|
371,207
|
|
531,206
|
|
81,121
|
|
|
|
|
|
|
|
|
EBITDA (3)
|
371,207
|
|
531,206
|
|
81,121
|
|
Adjustments:
|
|
|
|
|
|
|
Stock compensation expense
|
40,437
|
|
37,154
|
|
5,674
|
|
Gain on repurchase of convertible notes
|
(24,064)
|
|
(80,342)
|
|
(12,269)
|
|
High yield note offering expenses
|
-
|
|
5,236
|
|
800
|
|
Adjusted EBITDA (4)
|
387,580
|
|
493,254
|
|
75,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
(1) As a result of the adoption
of new authoritative guidance governing the accounting for
own-share lending arrangements in contemplation of convertible debt
issuance or other financing effective on April 1, 2010, the Company
adjusted relevant numbers in the unaudited condensed consolidated
statements of income for the three months and the year ended March
31, 2010 retrospectively in accordance with GAAP.
|
|
(2) EBIT represents net income
reported in accordance with GAAP, excluding the effects of interest
income, interest expense and income tax expense.
|
|
(3) EBITDA represents net income
reported in accordance with GAAP, excluding the effects of interest
income, interest expense, income tax expense, depreciation and
amortization.
|
|
(4) Adjusted EBITDA represents
EBITDA excluding the effects of stock compensation expense, gain on
repurchase of convertible notes as well as high yield note offering
expenses.
|
|
|
SOURCE China Medical Technologies, Inc.