Concord Medical Services Holdings Limited (CCM) posted loss in the fourth-quarter primarily due to a goodwill impairment charge of $47.7 million and one-time bad debt and other provisions of $7.8 million.
Net loss was RMB310.0 million or $49.3 million, compared to net income of RMB43.7 million in the fourth quarter of 2010. Loss per ADS in the fourth quarter of 2011 amounted to RMB6.56 or $1.04, compared to earnings per ADS of RMB 0.87 in the fourth quarter of 2010.
Non-GAAP net income was RMB41.7 million or $6.6 million, compared to non-GAAP net income of RMB48.0 million in the fourth quarter of 2010.
Non-GAAP earnings per ADS in the fourth quarter of 2011 were RMB0.87 or $0.14, compared to non-GAAP earnings per ADS of RMB 0.96 in the fourth quarter of 2010.
Total net revenues were RMB114.1 million or $18.1 million, representing a 1.1% increase from the fourth quarter of 2010.
The company expects 2012 total net revenues to be in the range of RMB590 million to RMB630 million, or 30%-40% year-over-year growth.
Concord Medical Services Holdings also announced that it signed a purchase agreement to acquire 52% of the equity interest of Chang'an Hospital in a cash transaction for approximately RMB248 million or $39.4 million. Chang'an Hospital is a private-owned general hospitals in China, located in Xi'an City, Shaanxi Province, China.
The transaction is expected to close in the second quarter or the beginning of the third quarter of calendar 2012, subject to certain closing conditions and government approvals. The acquisition is expected to be accretive to CCM earnings per share beginning at the third quarter of 2012.
by RTT Staff Writer
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