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SunLink Health Systems, Inc. Announces Fiscal 2020 First Quarter Results

November 14, 2019

ATLANTA--(BUSINESS WIRE)--Nov 14, 2019--

SunLink Health Systems, Inc. (NYSE American: SSY) today announced a loss from continuing operations of $143,000 (a loss of $0.02 per fully diluted share) for its first fiscal quarter ended September 30, 2019 compared to a loss of $786,000, (a loss of $0.11 per fully diluted share) for the quarter ended September 30, 2018. Net loss for the quarter ended September 30, 2019 was $261,000 (a loss of $0.04 per fully diluted share) compared to a net loss of $880,000 ( a loss of $0.12 per fully diluted share) for the quarter ended September 30, 2018. During the quarter ended September 30, 2019, SunLink sold approximately 11.4 acres of undeveloped land. After expenses, SunLink received $348,000 proceeds of the sale and included in continuing operations a pre-tax gain on the sale of $100,000.

Consolidated net revenues from continuing operations for the quarters ended September 30, 2019 and 2018 were $11,652,000 and $10,207,000, respectively, an increase of 14% in the current fiscal year’s first quarter compared to the comparable quarter of the prior fiscal year. Net revenues increased in the current fiscal quarter primarily due to increased hospital and nursing home net revenues and increased retail pharmacy, institutional pharmacy and durable medical equipment revenues.

SunLink incurred an operating loss for the quarter ended September 30, 2019 of $220,000, compared to an operating loss for the quarter ended September 30, 2018 of $727,000.

Loss from discontinued operations was $118,000 (a loss of $0.02 per fully diluted share) for the quarter ended September 30, 2019 compared to a loss from discontinued operations of $94,000 ($0.01 per fully diluted share) for the quarter ended September 30, 2018. Results from discontinued operations in the current year include expenses incurred in connection with retained professional liability claims and workers compensation claims of sold businesses.

SunLink had approximately 5% fewer fully diluted weighted average common shares outstanding for the three months ended September 30, 2019 compared to the comparable quarter last year due to share repurchases in December 2018.

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, 2019 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov.

SUNLINK HEALTH SYSTEMS, INC. ANNOUNCES
FISCAL 2020 FIRST QUARTER RESULTS
Amounts in 000's, except per share and volume amounts
 
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

Three Months Ended September 30,

2019

 

2018

 

 

% of Net

 

 

 

% of Net

Amount

 

Revenues

 

Amount

 

Revenues

Net Revenues

$

11,652

 

 

100.0

%

$

10,207

 

100.0

%

Costs and Expenses:
Cost of goods sold

 

4,344

 

 

37.3

%

 

3,917

 

38.4

%

Salaries, wages and benefits

 

4,909

 

 

42.1

%

 

4,674

 

45.8

%

Supplies

 

319

 

 

2.7

%

 

288

 

2.8

%

Purchased services

 

703

 

 

6.0

%

 

569

 

5.6

%

Other operating expenses

 

1,103

 

 

9.5

%

 

1,013

 

9.9

%

Rents and leases

 

159

 

 

1.4

%

 

135

 

1.3

%

Depreciation and amortization

 

335

 

 

2.9

%

 

338

 

3.3

%

Operating Loss

 

(220

)

 

-1.9

%

 

(727

)

-7.1

%

 
Interest Expense - net

 

(30

)

 

-0.3

%

 

(61

)

-0.6

%

Gains on sale of assets

 

107

 

 

0.9

%

 

2

 

0.0

%

 
Loss from Continuing Operations before Income Taxes

 

(143

)

 

-1.2

%

 

(786

)

-7.7

%

Income Tax expense (benefit)

 

0

 

 

0.0

%

 

0

 

0.0

%

Loss from Continuing Operations

 

(143

)

 

-1.2

%

 

(786

)

-7.7

%

Loss from Discontinued Operations, net of tax

 

(118

)

 

-1.0

%

 

(94

)

-0.9

%

Net Earnings

$

(261

)

 

-2.2

%

$

(880

)

-8.6

%

Loss Per Share from Continuing Operations:
Basic

$

(0.02

)

$

(0.11

)

Diluted

$

(0.02

)

$

(0.11

)

Loss Per Share from Discontinued Operations:
Basic

$

(0.02

)

$

(0.01

)

Diluted

$

(0.02

)

$

(0.01

)

Net Loss Per Share:
Basic

$

(0.04

)

$

(0.12

)

Diluted

$

(0.04

)

$

(0.12

)

Weighted Average Common Shares Outstanding:
Basic

 

6,987

 

 

7,347

 

Diluted

 

6,987

 

 

7,347

 

 
HEALTHCARE FACILITIES VOLUME STATISTICS
 
Hospital and Nursing Home Admissions

 

123

 

 

114

 

Hospital and Nursing Home Patient Days

 

6,961

 

 

6,430

 

 
SUMMARY BALANCE SHEETS

September 30,

 

June 30,

2019

 

2019

ASSETS
Cash and Cash Equivalents

$

7,670

 

$

7,742

 

Accounts Receivable - net

 

5,136

 

 

4,715

 

Other Current Assets

 

4,260

 

 

4,201

 

Property Plant and Equipment, net

 

5,189

 

 

5,243

 

Long-term Assets

 

3,556

 

 

2,518

 

$

25,811

 

$

24,419

 

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities

$

9,245

 

$

8,410

 

Long-term Debt and Other Noncurrent Liabilities

 

1,756

 

 

966

 

Shareholders' Equity

 

14,810

 

 

15,043

 

$

25,811

 

$

24,419

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191114005465/en/

CONTACT: Robert M. Thornton, Jr.

Chief Executive Officer

(770) 933-7004

KEYWORD: UNITED STATES NORTH AMERICA GEORGIA

INDUSTRY KEYWORD: HEALTH PRACTICE MANAGEMENT

SOURCE: SunLink Health Systems, Inc.

Copyright Business Wire 2019.

PUB: 11/14/2019 09:03 AM/DISC: 11/14/2019 09:03 AM

http://www.businesswire.com/news/home/20191114005465/en