SunLink Health Systems, Inc. (NYSE MKT: SSY) today announced net
earnings of $3,023,000 or $0.32 per fully diluted share for its
first fiscal quarter ended September 30, 2016 compared to a net
loss of $1,668,000, or a loss of $0.18 per fully diluted share, for
the quarter ended September 30, 2015. The net earnings in the
current year’s quarter are due to the gain on the previously
announced sale of a subsidiary hospital, Chestatee Regional
Hospital in Dahlonega, GA. The company had a loss from continuing
operations for its first fiscal quarter ended September 30, 2016 of
$1,250,000 or a loss of $0.13 per fully diluted share, compared to
a loss from continuing operations of $1,133,000 or a loss of $0.12
per fully diluted share, for the quarter ended September 30,
2015.
Consolidated net revenues from continuing operations for the
quarters ended September 30, 2016 and 2015 were $13,046,000 and
$16,584,000, respectively, a decrease of 21% in the current year’s
first quarter. Healthcare Facilities Segment net revenues in the
quarter ended September 30, 2016 of $5,455,000 decreased $3,340,000
in the current year’s quarter primarily as a result of the closure
one hospital in June 2016. The Specialty Pharmacy Segment revenues
of $7,341,000 in the quarter ended September 30, 2016 decreased
$226,000, or 5.2%, over the comparable quarter of the prior year
due primarily to lower durable medical equipment revenues.
The company had an operating loss from continuing operations for
the quarter ended September 30, 2016 of $953,000, compared to an
operating loss from continuing operations for the quarter ended
September 30, 2015 of $1,166,000. Despite the lower net revenues
this year, the operating loss decreased due to the closure of an
unprofitable hospital last fiscal year.
Earnings from discontinued operations were $4,273,000 ($0.45 per
fully diluted share) for the quarter ended September 30, 2016
compared to a loss from discontinued operations of $535,000 ($0.06
per fully diluted share) for the quarter ended September 30, 2015,
respectively. The earnings from discontinued operations for the
current year result from a pre-tax gain of $7,246,000 on the August
2016 sale of a subsidiary’s Chestatee Regional Hospital in
Dahlonega, GA.
SunLink Health Systems, Inc. is the parent company of
subsidiaries that own and operate healthcare facilities in the
Southeast and a pharmacy company in Louisiana. Each of the
company’s healthcare facilities is operated locally with a strategy
of linking patients’ needs with dedicated physicians and healthcare
professionals. For additional information on SunLink Health
Systems, Inc., please visit the company’s website at
www.sunlinkhealth.com.
This press release may contain certain statements of a
forward-looking nature. The statements contained herein which are
not historical facts are considered forward-looking statements
under federal securities laws. Such forward-looking statements are
based on the beliefs of our management as well as assumptions made
by and information currently available to them. The company has no
obligation to update such forward-looking statements. Actual
results may vary significantly from these forward-looking
statements.
Adjusted earnings before income taxes,
interest, depreciation and amortization
Earnings before income taxes, interest, depreciation and
amortization (“EBITDA”) represent the sum of income before income
taxes, interest, depreciation and amortization. We understand that
certain industry analysts and investors generally consider EBITDA
to be one measure of the liquidity of the company, and it is
presented to assist analysts and investors in analyzing the ability
of the company to generate cash, service debt and to satisfy
capital requirements. We believe increased EBITDA is an indicator
of improved ability to service existing debt and to satisfy capital
requirements. EBITDA, however, is not a measure of financial
performance under accounting principles generally accepted in the
United States of America and should not be considered an
alternative to net income as a measure of operating performance or
to cash liquidity. Because EBITDA is not a measure determined in
accordance with accounting principles generally accepted in the
United States of America and is thus susceptible to varying
calculations, EBITDA, as presented, may not be comparable to other
similarly titled measures of other corporations. Net cash used in
operations for the three months ended September 30, 2016 and 2015,
respectively, is shown below. Healthcare Facilities Adjusted EBITDA
and Specialty Pharmacy Adjusted EBITDA is the EBITDA for those
facilities without any allocation of corporate overhead, impairment
charges and gains on sale of businesses.
Three Months Ended September
30, 2016 2015
Healthcare Facilties Adjusted EBITDA $ 251,000 $ (317,000 )
Specialty Pharmacy Adjusted EBITDA 62,000 119,000 Corporate
overhead costs (822,000 ) (541,000 ) Taxes and interest expense
(365,000 ) 32,000 Other non-cash expenses and net change in
operating assets and liabilities (2,316,000 )
(108,000 ) Net cash used in operations $ (3,190,000 ) $ (815,000 )
SUNLINK HEALTH SYSTEMS, INC.
ANNOUNCES FISCAL 2017 FIRST QUARTER RESULTS Amounts
in 000's, except per share and volume amounts
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended September
30,
2016
2015 % of Net % of Net Amount
Revenues Amount Revenues
Operating revenues (net of contractual allowances) $ 13,079 100.3 %
$ 17,300 104.3 % Less provision for bad debts of Healthcare
Facilities Segment 33 0.3 % 716
4.3 % Net Revenues 13,046 100.0 % 16,584 100.0 % Costs and
Expenses: Cost of goods sold 4,636 35.5 % 4,597 27.7 % Salaries,
wages and benefits 5,845 44.8 % 8,317 50.2 % Provision for bad
debts of Specialty Pharmacy Segment 91 0.7 % 222 1.3 % Supplies 436
3.3 % 916 5.5 % Purchased services 708 5.4 % 869 5.2 % Other
operating expenses 1,710 13.1 % 2,201 13.3 % Rents and leases 129
1.0 % 201 1.2 % Depreciation and amortization 444
3.4 % 427 2.6 % Operating Loss (953 ) -7.3 %
(1,166 ) -7.0 % Interest Expense - net (221 ) -1.7 % (217 )
-1.3 % Gain on extinguishment of debt 46 0.4 % - 0.0 % Gain (loss)
on sale of assets 22 0.2 % 1 0.0
% Loss from Continuing Operations before Income Taxes (1,106
) -8.5 % (1,382 ) -8.3 % Income Tax Expense (Benefit) 144
1.1 % (249 ) -1.5 % Loss from Continuing
Operations (1,250 ) -9.6 % (1,133 ) -6.8 % Earnings (Loss) from
Discontinued Operations, net of tax 4,273 32.8
% (535 ) -3.2 % Net Earnings (Loss) $ 3,023
23.2 % $ (1,668 ) -10.1 % Loss Per Share from Continuing
Operations: Basic $ (0.13 ) $ (0.12 ) Diluted $ (0.13 ) $ (0.12 )
Earnings (Loss) Per Share from Discontinued Operations: Basic $
0.45 $ (0.06 ) Diluted $ 0.45 $ (0.06 ) Net Earnings
(Loss) Per Share: Basic $ 0.32 $ (0.18 ) Diluted $ 0.32
$ (0.18 ) Weighted Average Common Shares Outstanding: Basic
9,443 9,443 Diluted 9,443
9,443
HEALTHCARE FACILITIES VOLUME
STATISTICS Admissions 124 269 Nursing Home Patient Days
14,433 14,521
SUMMARY BALANCE SHEETS Sept. 30,
June 30, 2016 2016 ASSETS Cash and Cash
Equivalents $ 12,801 $ 3,261 Accounts Receivable - net 5,906 6,166
Other Current Assets 5,331 8,465 Property Plant and Equipment, net
10,692 12,994 Long-term Assets 5,933 13,219
$ 40,663 $ 44,105 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities $ 14,364 $ 20,051
Long-term Debt and Other Noncurrent Liabilities 3,738 4,565
Shareholders' Equity 22,561 19,489 $
40,663 $ 44,105
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version on businesswire.com: http://www.businesswire.com/news/home/20161110006491/en/
SunLink Health Systems, Inc.Robert M. Thornton, Jr.,
770-933-7004Chief Executive Officer
Sunlink Health Systems (AMEX:SSY)
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