SunLink Health Systems, Inc. (NYSE American: SSY) today
announced a loss from continuing operations of $1,436,000 (or a
loss of $0.20 per fully diluted share) for its fourth fiscal
quarter ended June 30, 2023 compared to a loss from continuing
operations of $2,317,000 (or a loss of $0.33 per fully diluted
share) for the fourth fiscal quarter ended June 30, 2022. Net loss
for the quarter ended June 30, 2023 was $1,426,000 (or a loss of
$0.20 per fully diluted share) compared to a net loss of $2,365,000
(or a loss of $0.34 per fully diluted share) for the quarter ended
June 30, 2022. The fiscal quarter ended June 30, 2023 included
Provider Relief Funds (“PRF”) of $449,000 (pre-tax).
Consolidated net revenues for the fiscal quarters ended June 30,
2023 and 2022 were $10,987,000 and $9,881,000, respectively, an
increase of 11% in the current year’s quarter above those in the
comparable quarter of the prior fiscal year. Pharmacy Segment net
revenues increased 11% above those of the comparable fiscal quarter
of the prior fiscal year due to an 8% increase retail and
institutional pharmacy scripts filled in the fiscal quarter ended
June 30, 2023, and the Healthcare Services Segment net revenues
increased 13% from those of the comparable fiscal quarter of the
prior year, due primarily to increased nursing home patient
days.
SunLink reported an operating loss for the quarter ended June
30, 2023 of $1,975,000 compared to an operating loss for the
quarter ended June 30, 2022 of $2,211,000. The decrease in
operating loss from last year’s comparable quarter was due
primarily to the increased net revenues this fiscal year,
notwithstanding increased costs in all reported expense categories
except salaries, wages, and benefits, supplies and rent, which
declined slightly.
Earnings from discontinued operations were $10,000 (or $0.00 per
fully diluted share) for the quarter ended June 30, 2023 compared
to a loss from discontinued operations of $48,000 (or $0.01 per
fully diluted share) for the quarter ended June 30, 2022.
Loss from continuing operations for the twelve months ended June
30, 2023 was $1,655,000 (or a loss of $0.24 per fully diluted
share) compared to a loss from continuing operations for the twelve
months ended June 30, 2022 of $1,722,000 ($0.25 per fully diluted
share). Net loss for the twelve months ended June 30, 2023 was
$1,795,000 (or a loss of $0.26 per fully diluted share) compared to
a net loss of $2,009,000 ($0.29 per fully diluted share) for the
twelve months ended June 30, 2022.
The twelve months ended June 30, 2023, included recognition of
(i) net revenues of $2,615,000 from the reversal of reserves for
certain sales taxes previously accrued by the Pharmacy Segment as
the Company determined during the second fiscal quarter that, based
upon discussions with and correspondence from taxing authorities
and consultation with external legal counsel, it was more likely
than not that such accrued sales taxes will not be payable, and
(ii) PRF of $510,000 (pre-tax). The twelve months ended June 30,
2022 included forgiveness of Paycheck Protection Plan (“PPP”) loans
of $3,010,000 (pre-tax) and PRF of $720,000 (pre-tax).
Consolidated net revenues for the twelve months ended June 30,
2023 and 2022 were $47,949,000 and $41,344,000, respectively, an
increase of 16% in the current year’s twelve months above such
revenues in the comparable twelve months of the prior fiscal year.
Healthcare Services Segment net revenues increased 8% above those
of the comparable period of the prior fiscal year due to increased
nursing home days this fiscal year, and the Pharmacy Segment net
revenues increased 20% above those of the comparable period of the
prior fiscal year due to the recognition of income from reversal of
reserves for certain sales taxes previously accrued, as well as
increased retail, institutional pharmacy and Durable Medical
Equipment sales this fiscal year.
SunLink reported an operating loss for the twelve months ended
June 30, 2023 of $2,322,000 compared to an operating loss for the
twelve months ended June 30, 2022 of $5,340,000. The decreased
operating loss for this fiscal year was due primarily to the
previously mentioned recognition of income from the reversal of
reserves for certain accrued sales taxes of $2,615,000 in this
year’s second fiscal quarter.
Loss from discontinued operations was $140,000 (or a loss of
$0.02 per fully diluted share) for the twelve months ended June 30,
2023 compared to a loss from discontinued operations of $287,000
(or $0.04 per fully diluted share) for the twelve months ended June
30, 2022.
The Company’s cash and cash equivalents on June 30, 2023 were
$4,486,000, a decline of $2,308,000 from June 30, 2022, due to the
twelve month’s operating loss and capital expenditures of
$2,000,000 by both the Healthcare Service and Pharmacy
Segments.
COVID-19 Pandemic
The Company continued to experience adverse after-effects of the
COVID-19 pandemic in the quarter ended June 30, 2023 and believes
such effects will likely continue to affect its assets and
operations in the foreseeable future particularly salaries and
wages pressure, workforce shortages, supply chain disruption and
broad inflationary pressures. Our ability to make estimates of any
such continuing effects of evolving strains of COVID-19 on future
revenues, expenses or changes in accounting judgments that have had
or are reasonably likely to have a material effect on our financial
statements is very limited, depending as they do on the severity
and length thereof; as well as any further government actions
and/or regulatory changes intended to address such effects.
SunLink Health Systems, Inc. is the parent company of
subsidiaries that own and operate healthcare properties and
businesses in the Southeast. Each of the Company’s businesses is
operated locally with a strategy of linking patients’ needs with
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,
2022 and other filings with the Securities and Exchange Commission
which can be located at www.sec.gov.
SUNLINK HEALTH SYSTEMS, INC. ANNOUNCES FISCAL 2023 FOURTH
QUARTER AND ANNUAL RESULTS Amounts in 000's, except per
share CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
Three Months Ended June
30,
Twelve Months Ended June
30,
2023
2022
2023
2022
% of Net
% of Net
% of Net
% of Net
Amount
Revenues
Amount
Revenues
Amount
Revenues
Amount
Revenues
Net revenues
$
10,987
100.0
%
$
9,881
100.0
%
$
47,949
100.0
%
$
41,344
100.0
%
Costs and Expenses: Cost of goods sold
4,929
44.9
%
4,248
43.0
%
18,571
38.7
%
16,416
39.7
%
Salaries, wages and benefits
4,677
42.6
%
4,783
48.4
%
19,193
40.0
%
19,006
46.0
%
Supplies
349
3.2
%
397
4.0
%
1,363
2.8
%
1,276
3.1
%
Purchased services
1,047
9.5
%
936
9.5
%
4,116
8.6
%
3,546
8.6
%
Other operating expenses
1,245
11.3
%
1,135
11.5
%
4,763
9.9
%
4,345
10.5
%
Rents and leases
119
1.1
%
133
1.3
%
500
1.0
%
552
1.3
%
Depreciation and amortization
596
5.4
%
460
4.7
%
1,765
3.7
%
1,543
3.7
%
Operating loss
(1,975
)
-18.0
%
(2,211
)
-22.4
%
(2,322
)
-4.8
%
(5,340
)
-12.9
%
Interest Income (expense) - net
74
0.7
%
3
0.0
%
120
0.3
%
(15
)
0.0
%
Forgiveness of PPP loans and accrued interest
0
0.0
%
0
0.0
%
0
0.0
%
3,010
7.3
%
Federal pandemic stimulus- provider relief funds
449
4.1
%
0
0.0
%
510
1.1
%
720
1.7
%
Gain (lLss)n sale of assets
16
0.1
%
(2
)
0.0
%
30
0.1
%
10
0.0
%
Loss from Continuing Operations before Income Taxes
(1,436
)
-13.1
%
(2,210
)
-22.4
%
(1,662
)
-3.5
%
(1,615
)
-3.9
%
Income Tax (benefit) expense
0
0.0
%
107
1.1
%
(7
)
0.0
%
107
0.3
%
Earnings (Loss) from Continuing Operations
(1,436
)
-13.1
%
(2,317
)
-23.4
%
(1,655
)
-3.5
%
(1,722
)
-4.2
%
Loss from Discontinued Operations, net of tax
10
0.1
%
(48
)
-0.5
%
(140
)
-0.3
%
(287
)
-0.7
%
Net Loss
$
(1,426
)
-13.0
%
$
(2,365
)
-23.9
%
$
(1,795
)
-3.7
%
$
(2,009
)
-4.9
%
Loss Per Share from Continuing Operations: Basic
$
(0.20
)
$
(0.33
)
$
(0.24
)
$
(0.25
)
Diluted
$
(0.20
)
$
(0.33
)
$
(0.24
)
$
(0.25
)
Earnings (Loss) Per Share from Discontinued Operations: Basic
$
0.00
$
(0.01
)
$
(0.02
)
$
(0.04
)
Diluted
$
0.00
$
(0.01
)
$
(0.02
)
$
(0.04
)
Net Loss Per Share: Basic
$
(0.20
)
$
(0.34
)
$
(0.26
)
$
(0.29
)
Diluted
$
(0.20
)
$
(0.34
)
$
(0.26
)
$
(0.29
)
Weighted Average Common Shares Outstanding: Basic
7,032
6,954
7,019
6,945
Diluted
7,032
6,954
7,019
6,945
SUMMARY BALANCE SHEETS
June 30,
June 30,
2023
2022
ASSETS Cash and Cash Equivalents
$
4,486
$
6,794
Receivable - net
4,251
4,624
Other Current Assets
3,537
5,397
Property Plant and Equipment, net
8,281
8,217
Long-term Assets
2,714
2,911
$
23,269
$
27,943
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities
$
4,869
$
7,691
Long-term Debt and Other Noncurrent Liabilities
983
1,132
Shareholders' Equity
17,417
19,120
$
23,269
$
27,943
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230928254829/en/
Robert M. Thornton, Jr. Chief Executive Officer
(770) 933-7004
Sunlink Health Systems (AMEX:SSY)
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