ATLANTA--(BUSINESS WIRE)--SunLink Health Systems, Inc. (NYSE American: SSY) today announced earnings from continuing operations of $203,000 ($0.03 per fully diluted share) for its second fiscal quarter ended December 31, 2019 compared to earnings of $258,000, ($0.04 per fully diluted share) for the quarter ended December 31, 2018. Net loss for the quarter ended December 31, 2019 was $42,000 (or a loss of $0.01 per fully diluted share) compared to net earnings of $305,000 ($0.04 per fully diluted share) for the quarter ended December 31, 2018.
During the quarters ended December 31, 2019 and 2018, the Company reported the following items:
Quarters ended |
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December 31, |
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2019 |
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2018 |
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| Prior year cost report settlement in the Healthcare Services segment | $ | 107,000 | $ |
(15,000 |
) |
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| Revenue from amended sales tax returns and accruals in the Pharmacy segment |
|
267,000 |
|
|
0 |
|
||
| Gain on sale of assets |
|
86,000 |
|
|
452,000 |
|
||
| Loss on early extinguishment of debt |
|
(160,000 |
) |
|
0 |
|
||
Consolidated net revenues from continuing operations for the quarters ended December 31, 2019 and 2018 were $12,805,000 and $12,151,000, respectively, an increase of 5% in the current fiscal year’s second quarter compared to the comparable quarter of the prior fiscal year. Net revenues increased in the current fiscal quarter primarily due to increased nursing home net revenues and the prior year cost report settlements in the Healthcare Services segment, and increased Pharmacy segment revenues, including the amended sales tax accrual in the Pharmacy segment.
SunLink reported an operating profit for the quarter ended December 31, 2019 of $281,000, compared to an operating loss for the quarter ended December 31, 2018 of $134,000.
Loss from discontinued operations was $245,000 (or a loss of $0.04 per fully diluted share) for the quarter ended December 31, 2019 compared to earnings from discontinued operations of $47,000 ($0.01 per fully diluted share) for the quarter ended December 31, 2018. Results from discontinued operations in the current year include expenses incurred in connection with retained professional liability claims and workers compensation claims associated with sold businesses as well as settlement of a lawsuit relating to one such business.
SunLink had approximately 4% fewer fully diluted weighted average common shares outstanding for the three months ended December 31, 2019 compared to the comparable quarter last year due to share repurchases in December 2018.
For the six months ended December 31, 2019, SunLink reported earnings from continuing operations of $60,000 ($0.01 per fully diluted share) compared to a loss from continuing operations of $528,000 (or a loss of $0.07 per fully diluted share) for the six months ended December 31, 2018. For the six months ended December 31, 2019, SunLink reported a net loss of $303,000 (or a loss of $0.04 per fully diluted share) compared to a net loss of $575,000 (or a loss of $0.08 per fully diluted share) for the six months ended December 31, 2018. Loss from discontinued operations were $363,000 (or a loss of $0.05 per fully diluted share) for the six months ended December 31, 2019 compared to a loss from discontinued operations of $47,000 (or a loss of $0.01 per fully diluted share) for the six months ended December 31, 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 |
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FISCAL 2020 SECOND QUARTER RESULTS |
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Amounts in 000's, except per share and volume amounts |
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CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) |
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Three Months Ended December 31, |
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Six Months Ended December 31, |
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2019 |
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2018 |
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2019 |
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2018 |
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% of Net |
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% of Net |
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% of Net |
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% of Net |
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Amount |
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Revenues |
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Amount |
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Revenues |
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Amount |
|
Revenues |
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Amount |
|
Revenues |
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| Net Revenues | $ |
12,805 |
|
|
100.0 |
% |
$ |
12,151 |
|
100.0 |
% |
$ |
24,457 |
|
100.0 |
% |
$ |
22,358 |
|
100.0 |
% |
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| Costs and Expenses: | ||||||||||||||||||||||||||||||
| Cost of goods sold |
|
5,097 |
|
|
39.8 |
% |
|
5,255 |
|
43.2 |
% |
|
9,441 |
|
38.6 |
% |
|
9,172 |
|
41.0 |
% |
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| Salaries, wages and benefits |
|
4,849 |
|
|
37.9 |
% |
|
4,620 |
|
38.0 |
% |
|
9,758 |
|
39.9 |
% |
|
9,294 |
|
41.6 |
% |
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| Supplies |
|
334 |
|
|
2.6 |
% |
|
324 |
|
2.7 |
% |
|
653 |
|
2.7 |
% |
|
612 |
|
2.7 |
% |
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| Purchased services |
|
753 |
|
|
5.9 |
% |
|
585 |
|
4.8 |
% |
|
1,456 |
|
6.0 |
% |
|
1,154 |
|
5.2 |
% |
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| Other operating expenses |
|
994 |
|
|
7.8 |
% |
|
982 |
|
8.1 |
% |
|
2,097 |
|
8.6 |
% |
|
1,995 |
|
8.9 |
% |
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| Rents and leases |
|
147 |
|
|
1.1 |
% |
|
168 |
|
1.4 |
% |
|
306 |
|
1.3 |
% |
|
303 |
|
1.4 |
% |
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| Depreciation and amortization |
|
350 |
|
|
2.7 |
% |
|
351 |
|
2.9 |
% |
|
685 |
|
2.8 |
% |
|
689 |
|
3.1 |
% |
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| Operating Profit (Loss ) |
|
281 |
|
|
2.2 |
% |
|
(134 |
) |
-1.1 |
% |
|
61 |
|
0.2 |
% |
|
(861 |
) |
-3.9 |
% |
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| Interest Expense - net |
|
(4 |
) |
|
0.0 |
% |
|
(60 |
) |
-0.5 |
% |
|
(34 |
) |
-0.1 |
% |
|
(121 |
) |
-0.5 |
% |
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| Loss on extinguishment of debt, net |
|
(160 |
) |
|
-1.2 |
% |
|
0 |
|
0.0 |
% |
|
(160 |
) |
-0.7 |
% |
|
0 |
|
0.0 |
% |
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| Gains on sale of assets |
|
86 |
|
|
0.7 |
% |
|
452 |
|
3.7 |
% |
|
193 |
|
0.8 |
% |
|
454 |
|
2.0 |
% |
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| Earnings (Loss) from Continuing Operations before Income Taxes | 203 |
1.6 |
% | 258 |
2.1 |
% | 60 |
0.2 |
% | (528 |
) | -2.4 |
% | |||||||||||||||||
| Income Tax expense (benefit) |
|
0 |
|
|
0.0 |
% |
|
0 |
|
0.0 |
% |
|
0 |
|
0.0 |
% |
|
0 |
|
0.0 |
% |
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| Earnings (Loss) from Continuing Operations |
|
203 |
|
|
1.6 |
% |
|
258 |
|
2.1 |
% |
|
60 |
|
0.2 |
% |
|
(528 |
) |
-2.4 |
% |
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| Earnings (Loss) from Discontinued Operations, net of tax |
|
(245 |
) |
|
-1.9 |
% |
|
47 |
|
0.4 |
% |
|
(363 |
) |
-1.5 |
% |
|
(47 |
) |
-0.2 |
% |
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| Net Earnings (Loss) | $ |
(42 |
) |
|
-0.3 |
% |
$ |
305 |
|
2.5 |
% |
$ |
(303 |
) |
-1.2 |
% |
$ |
(575 |
) |
-2.6 |
% |
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| Earnings (Loss) Per Share from Continuing Operations: | ||||||||||||||||||||||||||||||
| Basic | $ |
0.03 |
|
$ |
0.04 |
|
$ |
0.01 |
|
$ |
(0.07 |
) |
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| Diluted | $ |
0.03 |
|
$ |
0.04 |
|
$ |
0.01 |
|
$ |
(0.07 |
) |
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| Earnings (Loss) Per Share from Discontinued Operations: | ||||||||||||||||||||||||||||||
| Basic | $ |
(0.04 |
) |
$ |
0.01 |
|
$ |
(0.05 |
) |
$ |
(0.01 |
) |
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| Diluted | $ |
(0.04 |
) |
$ |
0.01 |
|
$ |
(0.05 |
) |
$ |
(0.01 |
) |
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| Net Earnings (Loss) Per Share: | ||||||||||||||||||||||||||||||
| Basic | $ |
(0.01 |
) |
$ |
0.04 |
|
$ |
(0.04 |
) |
$ |
(0.08 |
) |
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| Diluted | $ |
(0.01 |
) |
$ |
0.04 |
|
$ |
(0.04 |
) |
$ |
(0.08 |
) |
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| Weighted Average Common Shares Outstanding: | ||||||||||||||||||||||||||||||
| Basic |
|
6,986 |
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|
7,271 |
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|
6,986 |
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|
7,309 |
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| Diluted |
|
6,992 |
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|
7,278 |
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|
7,012 |
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|
7,309 |
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| HEALTHCARE FACILITIES VOLUME STATISTICS | ||||||||||||||||||||||||||||||
| Hospital and Nursing Home Admissions |
|
97 |
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|
129 |
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|
220 |
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|
243 |
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| Hospital and Nursing Home Patient Days |
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6,890 |
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|
6,768 |
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|
13,851 |
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|
13,198 |
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| SUMMARY BALANCE SHEETS | December 31, |
|
June 30, |
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2019 |
|
2019 |
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| ASSETS | ||||||||||||||||||||||||||||||
| Cash and Cash Equivalents | $ |
4,607 |
|
$ |
7,742 |
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| Accounts Receivable - net |
|
5,627 |
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|
4,715 |
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| Other Current Assets |
|
4,150 |
|
|
4,201 |
|
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| Property Plant and Equipment, net |
|
5,412 |
|
|
5,243 |
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| Long-term Assets |
|
3,027 |
|
|
2,518 |
|
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$ |
22,823 |
|
$ |
24,419 |
|
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| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||
| Current Liabilities | $ |
6,440 |
|
$ |
8,410 |
|
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| Long-term Debt and Other Noncurrent Liabilities |
|
1,621 |
|
|
966 |
|
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| Shareholders' Equity |
|
14,762 |
|
|
15,043 |
|
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$ |
22,823 |
|
$ |
24,419 |
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