ATLANTA, Sept. 30, 2024–(BUSINESS WIRE)–Sunlink Health Systems, Inc. (NYSE American: SSY) today announced a loss from continuing operations of $652,000 (per fully diluted share) for its fourth fiscal year. announced a loss of $0.09. Continuing operations loss for the fourth quarter ended June 30, 2024 was $1,021,000, or a loss of $0.15 per fully diluted share, compared to a loss for the fourth quarter ended June 30, 2023. The loss was $1,021,000.
Earnings from discontinued operations for the fourth quarter ended June 30, 2024 were $4,940,000 ($0.70 per fully diluted share) compared to The loss was $405,000, or a fully diluted loss of $0.06 per share. During the quarter ended June 30, 2024, Southern Health Corporation of Houston, Inc. (“Southern”), an indirect subsidiary of the Company, acquired the Trace Extended Care & Rehab senior care facility and related real estate located in Houston. was sold. , Mississippi earned a net income of $6,522,000 and recorded a gain on sale of $5,584,000. Southern’s results will be included in discontinued operations for the year ended June 30, 2024.
Primarily as a result of the sale of Trace Extended Care & Rehab, net income for the quarter ended June 30, 2024 was $4,288,000, or $0.61 per fully diluted share, while net loss was $1,426,000, or $0.61 per fully diluted share. (loss of $0.20 per diluted share). share) for the quarter ended June 30, 2023.
On January 22, 2024, Southern acquired Trace Regional Hospital, a vacant clinic building and three patient clinics in Chickasaw County, Mississippi (collectively, the “Trace Hospital Assets”) to Progressive Health, LLC in Houston. A revised agreement was reached to sell the property to. (“Progressive”) pursuant to which: (i) Southern will sell certain personal and intangible assets to Progressive for $500,000 pursuant to an asset purchase agreement (the “Trace Hospital Asset Sale”); We have signed a six-month net lease for . (iii) enter into an agreement to transfer the hospital, clinic building and clinic real estate (the “Trace Real Estate Lease”) for $20,000 per month; and (iii) to sell the Trace Hospital real estate (the “Trace Hospital Real Estate”). invested $2,000,000 in Progressive, Inc. and (iv) engaged Progressive Inc. under a management agreement to manage the operations of Trace Hospital, pending certain regulatory approvals, which will be received on February 29, 2024. . The Company recorded a loss of $962,000 on the sale of Trace Hospital assets on February 29, 2024. The year ended June 30, 2024 included selling expenses of $174,000. The completion of the sale of the Trace Hospital property has been extended by mutual agreement to October 4, 2024. As a result of the transaction (the “Amended Agreement”), Sunlink reported an impairment charge of $1,974,000 reducing net income on December 31, 2023. Add the value of Trace Hospital Assets and Trace Hospital Real Estate to the estimated sale proceeds under the revised agreement. The impairment allowance for Trace Hospital Real Estate remains $1,695,000 as of June 30, 2024. There can be no assurance that the sale of Trace Hospital Assets real estate will be completed.
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Consolidated net revenues for the fiscal quarters ended June 30, 2024 and 2023 were $7,913,000 and $8,010,000, respectively, and consisted primarily of pharmacy net revenues. Pharmacy net revenue for the quarter ended June 30, 2024 decreased $97,000, or 1%, compared to the prior year period as a result of lower pharmacy scripts dispensed. The quarter ended June 30, 2024 included a prior period sales tax credit of $34,000 related to such sales tax refund claims.
SunLink reported an operating loss of $675,000 for the quarter ended June 30, 2024, compared to an operating loss of $1,112,000 for the quarter ended June 30, 2023. The decrease in operating loss this year compared to last year was primarily due to an increase in gross margin on pharmacy revenue.
Sunlink reported a loss from continuing operations of $2,311,000 (loss of $0.33 per fully diluted share) for the twelve months ended June 30, 2024; The company reported earnings from continuing operations of $198,000 (or a fully diluted loss of $0.03 per share) for the 12-month period. June 30, 2023.
Income from discontinued operations for the twelve months ended June 30, 2024 was $784,000, or $0.11 per fully diluted share, compared to a loss for the twelve months ended June 30, 2023. The loss was $1,993,000 (a fully diluted loss of $0.28 per share). This was primarily due to impairment charges on the Trace Hospital Assets, Trace Extended Care and Rehabilitation Transactions, and Trace Hospital Real Estate described above.
SunLink reported a net loss of $1,795,000, or $0.26 per fully diluted share, for the twelve months ended June 30, 2024, compared to a net loss of $1,795,000, or $0.26 per fully diluted share. Reported a net loss of $1,527,000, or a fully diluted loss of $0.26 per share. 2023.
Consolidated net revenues for the twelve months ended June 30, 2024 and 2023 were $32.44 million and $34.28 million, respectively. Pharmacy’s net revenues for the twelve months ended June 30, 2023 included a $2,615,000 release from a reserve for certain previously accrued sales taxes. During the quarter, the Company determined, based on discussions and correspondence with tax authorities and discussions with outside counsel, that it is more likely than not that the sales taxes payable will not be paid. The twelve months ended June 30, 2024 include prior period sales tax refunds of $471,000. Excluding the impact of sales tax refunds and cancellations of sales taxes payable, net revenue decreased less than 1% for the twelve months ended June 30, 2024 compared to the prior year.
SunLink reported an operating loss of $2,411,000 for the twelve months ended June 30, 2024, compared to operating income of $74,000 for the twelve months ended June 20, 2023. Operating income for the comparable twelve-month period last year was primarily due to the release of accrued sales tax reserves.
COVID-19 pandemic
The Company continued to be adversely affected by the COVID-19 pandemic during the quarter ended June 30, 2024, due to, among other things, salary and wage pressures, labor shortages, and labor shortages. We believe that it is likely that our assets and operations will continue to be affected for the foreseeable future. Supply chain disruptions and widespread inflationary pressures. We estimate such continuing effects on future revenues, expenses, or changes in accounting judgments that have materially affected, or are reasonably likely to have materially affected, our financial statements. capacity is very limited depending on its severity and duration. as well as further government measures and regulatory changes aimed at addressing such impacts.
SunLink Health Systems, Inc. is the parent company of subsidiaries that own and operate pharmacy and information technology businesses in the Southeast. For more information about 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 that may cause actual results, performance or achievements to differ materially from those anticipated. Some of these risks, uncertainties and other factors are described in our Annual Report on Form 10-K for the year ended June 30, 2024 and other filings with the Securities and Exchange Commission located at www.sec. Disclosed in detail in the filing. government
Announced by Sunlink Health Systems Co., Ltd.
2024 Q4 and Annual Results
Amounts excluding per share are in the 000 range.
Consolidated income statement (loss)
For the three months ended June 30th
12 months ended June 30th
2024
2023
2024
2023
Net %
Net %
Net %
Net %
amount
revenue
amount
revenue
amount
revenue
amount
revenue
net revenue
$
7,913
100.0
%
$
8,010
100.0
%
$
32,440
100.0
%
$
34,280
100.0
%
Costs and expenses:
Cost of sales
4,382
55.4
%
4,929
61.5
%
18,253
56.3
%
18,571
54.2
%
Salary, wages and benefits
2,624
33.2
%
2,609
32.6
%
10,561
32.6
%
10,156
29.6
%
supplies
44
0.6
%
36
0.4
%
153
0.5
%
140
0.4
%
purchased services
298
3.8
%
319
4.0
%
1,130
3.5
%
1,107
3.2
%
Other operating expenses
735
9.3
%
744
9.3
%
3,014
9.3
%
2,598
7.6
%
Rental and lease
92
1.2
%
96
1.2
%
367
1.1
%
372
1.1
%
Depreciation and amortization
413
5.2
%
389
4.9
%
1,373
4.2
%
1,262
3.7
%
Operating income (loss)
(675
)
-8.5
%
(1,112
)
-13.9
%
(2,411
)
-7.4
%
74
0.2
%
Interest income – net
twenty three
0.3
%
74
0.9
%
93
0.3
%
87
0.3
%
Gain on sale of assets
0
0.0
%
17
0.2
%
2
0.0
%
30
0.1
%
Gains and losses from previous continuing operations
income tax
(652
)
-8.2
%
(1,021
)
-12.7
%
(2,316
)
-7.1
%
191
0.6
%
Income tax benefits
0
0.0
%
0
0.0
%
(5
)
0.0
%
(7
)
0.0
%
Profit and loss from continuing operations
(652
)
-8.2
%
(1,021
)
-12.7
%
(2,311
)
-7.1
%
198
0.6
%
Income (loss) from discontinued operations (after tax)
4,940
62.4
%
(405
)
-5.1
%
784
2.4
%
(1,993
)
-5.8
%
net loss
$
4,288
54.2
%
$
(1,426
)
-17.8
%
$
(1,527
)
-4.7
%
$
(1,795
)
-5.2
%
Earnings (loss) per share from continuing operations:
basic
$
(0.09
)
$
(0.15
)
$
(0.33
)
$
0.03
diluted
$
(0.09
)
$
(0.15
)
$
(0.33
)
$
0.03
Loss per share from discontinued operations:
basic
$
0.70
$
(0.06
)
$
0.11
$
(0.28
)
diluted
$
0.70
$
(0.06
)
$
0.11
$
(0.28
)
Net loss per share:
basic
$
0.61
$
(0.20
)
$
(0.22
)
$
(0.26
)
diluted
$
0.61
$
(0.20
)
$
(0.22
)
$
(0.26
)
Weighted average number of common shares outstanding:
basic
7,041
7,032
7,038
7,019
diluted
7,041
7,032
7,038
7,022
Summary balance sheet
June 30th
June 30th
2024
2023
assets
cash and cash equivalents
$
7,170
$
4,486
Accounts receivable – net
3,371
2,592
Current assets held for sale
1,959
1,920
Other current assets
3,164
3,276
Property, plant and equipment, net
2,809
2,717
long term assets
2,139
8,277
$
20,612
$
23,268
Debt and equity
current liabilities
$
4,213
$
4,869
Fixed debt
426
982
stockholders’ equity
15,973
17,417
$
20,612
$
23,268
View source version on businesswire.com: https://www.businesswire.com/news/home/20240930244290/en/
contact address
Robert M. Thornton Jr.
chief executive officer
(770) 933-7004
