SunLink Health Systems, Inc. (NYSE American: SSY) today
announced a loss from continuing operations of $224,000 or a loss
of $0.02 per fully diluted share for its first fiscal quarter ended
September 30, 2017 compared to a loss of $1,250,000, or a loss of
$0.13 per fully diluted share, for the quarter ended September 30,
2016. Net loss for the quarter ended September 30, 2017 was a loss
of $277,000 or a loss of $0.03 per fully diluted share compared to
net earnings of $3,023,000 or $0.32 per fully diluted share, for
the quarter ended September 30, 2016. Earnings from discontinued
operations of $4,273 in last year’s first fiscal quarter included a
pre-tax gain on the sale of a hospital of $7,246.
Consolidated net revenues from continuing operations for the
quarters ended September 30, 2017 and 2016 were $13,363,000 and
$13,046,000, respectively, an increase of 2% in the current year’s
first fiscal quarter compared to the comparable quarter of the
prior fiscal year. Healthcare Services Segment net revenues of
$5,654,000 for the quarter ended September 30, 2017 decreased
$51,000 (1%) for last year’s first quarter primarily due to
decreased nursing home revenues. Pharmacy Segment revenues of
$7,709,000 in the quarter ended September 30, 2017 increased
$368,000 (5%) for the comparable quarter of the prior fiscal year
due to higher durable medical equipment revenues this year which
were realized from increased Medicare reimbursement under the
provisions of the 21st Century Cures Act.
SunLink had an Operating Loss for the quarter ended September
30, 2017 of $99,000, compared to an Operating Loss for the quarter
ended September 30, 2016 of $953,000.
The loss from Discontinued Operations was $53,000 (a loss of
$0.01 per fully diluted share) for the quarter ended September 30,
2017 compared to earnings from discontinued operations of
$4,273,000 ($0.45 per fully diluted share) for the quarter ended
September 30, 2016, which included a pre-tax gain on the sale of a
hospital of $7,246.
SunLink Health Systems, Inc. is the parent company of
subsidiaries that own and operate healthcare businesses in the
Southeast. Each of the Company’s healthcare businesses 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.
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 including, without limitation, statements regarding the
company’s business strategy. These forward-looking statements are
subject to certain risks, uncertainties and other factors, which
could cause actual results, performance and achievements to differ
materially from those anticipated. Certain of those risks,
uncertainties and other factors are disclosed in more detail in the
company’s Annual Report on Form 10-K for the year ended June 30,
2017 and other filings with the Securities and Exchange Commission
which can be located at www.sec.gov.
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 fiscal year ended September 30, 2017 and 2016,
respectively, is shown below. Healthcare Services Adjusted EBITDA
and Pharmacy Adjusted EBITDA is the EBITDA for those facilities
without any allocation of corporate overhead, impairment charges
and gains on sale of businesses.
Fiscal Years
Ended September 30, 2017
2016 Healthcare Services Adjusted EBITDA $ 101,000 $
57,000 Pharmacy Adjusted EBITDA 693,000 62,000 Corporate Overhead
Adjusted EBITDA (464,000 ) (628,000 ) Taxes and interest expense
(127,000 ) (365,000 )
Other non-cash expenses and net change in
operating assets and liabilities
30,000 (2,316,000 ) Net cash used in
operations $ 233,000 $ (3,190,000 )
SUNLINK HEALTH SYSTEMS, INC. ANNOUNCES
FISCAL 2018 FIRST QUARTER AND ANNUAL RESULTS
Amounts in 000's, except per share and volume amounts
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended September
30,
2017 2016 % of Net
% of Net Amount Revenues
Amount Revenues Operating revenues (net
of contractual allowances) $ 13,433 100.5 % $ 13,079 100.3 % Less
provision for bad debts of Healthcare Facilities Segment 70
0.5 % 33 0.3 % Net Revenues 13,363
100.0 % 13,046 100.0 % Costs and Expenses: Cost of goods sold 4,458
33.4 % 4,636 35.5 % Salaries, wages and benefits 5,764 43.1 % 5,845
44.8 % Provision for bad debts of Specialty Pharmacy Segment 120
0.9 % 91 0.7 % Supplies 425 3.2 % 436 3.3 % Purchased services 687
5.1 % 708 5.4 % Other operating expenses 1,442 10.8 % 1,710 13.1 %
Rents and leases 154 1.2 % 129 1.0 % Depreciation and amortization
429 3.2 % 444 3.4 % Electronic Health Records incentive programs
(17 ) -0.1 % - 0.0 %
Operating Profit (Loss)
(99 ) -0.7 % (953 ) -7.3 % Interest Expense - net (127 )
-1.0 % (221 ) -1.7 % Gain on extinguishment of debt - net - 0.0 %
46 0.4 % Gain on sale of assets 2 0.0 %
22 0.2 % Earnings (Loss) from Continuing Operations
before Income Taxes (224 ) -1.7 % (1,106 ) -8.5 % Income Tax
Expense (Benefit) - 0.0 % 144
1.1 % Earnings (Loss) from Continuing Operations (224 ) -1.7 %
(1,250 ) -9.6 % Earnings (Loss) from Discontinued Operations, net
of tax (53 ) -0.4 % 4,273 32.8 % Net
Earnings (Loss) $ (277 ) -2.1 % $ 3,023 23.2 %
Earnings (Loss) Per Share from Continuing Operations: Basic $ (0.02
) $ (0.13 ) Diluted $ (0.02 ) $ (0.13 ) Earnings (Loss) Per Share
from Discontinued Operations: Basic $ (0.01 ) $ 0.45 Diluted
$ (0.01 ) $ 0.45 Net Earnings (Loss) Per Share: Basic $
(0.03 ) $ 0.32 Diluted $ (0.03 ) $ 0.32 Weighted
Average Common Shares Outstanding: Basic 9,163
9,443 Diluted 9,163 9,443
HEALTHCARE FACILITIES VOLUME STATISTICS
Hospital and Nursing Home Admissions 166 121 Hospital and Nursing
Home Patient Days 14,745 15,434
SUMMARY BALANCE
SHEETS September 30, June 30, 2017
2017 ASSETS Cash and Cash Equivalents $ 9,909 $ 10,494
Accounts Receivable - net 5,989 5,906 Other Current Assets 6,618
6,221 Property Plant and Equipment, net 10,571 10,290 Long-term
Assets 2,315 2,425 $ 35,402 $
35,336 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities $ 12,658 $ 12,314 Long-term Debt and Other Noncurrent
Liabilities 1,322 1,329 Shareholders' Equity 21,422
21,693 $ 35,402 $ 35,336
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version on businesswire.com: http://www.businesswire.com/news/home/20171114006657/en/
SunLink Health Systems, Inc.Robert M. Thornton, Jr.,
770-933-7004Chief Executive Officer
Sunlink Health Systems (AMEX:SSY)
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