SunLink Health Systems, Inc - SSY STOCK NEWS

SunLink Health Systems, Inc. (NYSE AMERICAN: SSY) has announced the completion of the sale of its formerly operated Trace Regional Hospital real estate in Houston, Mississippi. The transaction, executed by its subsidiary Southern Health of Houston, Inc., and an affiliate, yielded approximately $2,000,000, with net proceeds of about $1,932,000 to be retained for working capital and general corporate purposes.

The company anticipates recognizing a pre-tax loss of approximately $91,000 on the sale in its second fiscal quarter ending December 31, 2024. This strategic move aligns with SunLink's goal of positioning itself for a potential extraordinary transaction, as it seeks to identify opportunities that could offer shareholders future value appreciation at an acceptable risk level.

SunLink Health Systems (NYSE American: SSY) reported financial results for Q4 and FY 2024. Key highlights include:

- Q4 loss from continuing operations: $652,000 ($0.09 per share)

- Q4 earnings from discontinued operations: $4,940,000 ($0.70 per share)

- Q4 net income: $4,288,000 ($0.61 per share)

- FY 2024 loss from continuing operations: $2,311,000 ($0.33 per share)

- FY 2024 net loss: $1,527,000 ($0.22 per share)

- Sale of Trace Extended Care & Rehab for $6,522,000, with a gain of $5,584,000

- Revised agreement for sale of Trace Hospital Assets

- Consolidated net revenues for Q4: $7,913,000

- Consolidated net revenues for FY 2024: $32,440,000

The company continues to experience adverse effects from the COVID-19 pandemic, including workforce shortages and inflationary pressures.

SunLink Health Systems (NYSE:AMERICAN: SSY) announced the sale of its Trace Extended Care & Rehab facility in Houston, Mississippi, for approximately $7,100,000.

The net proceeds of about $6,500,000 will be used for working capital and general corporate purposes.

The company expects a pre-tax gain of approximately $5,700,000 in its fourth fiscal quarter ending June 30, 2024.

This sale aligns with SunLink's strategy to position itself for potential extraordinary transactions like mergers or consolidations, while also improving existing operations and disposing of non-performing assets.

SunLink Health Systems (NYSE American: SSY) reported a significant increase in losses for its third fiscal quarter ended March 31, 2024. The loss from continuing operations was $824,000 (or $0.12 per share), up from $453,000 (or $0.06 per share) in the same period last year. Net loss for the quarter was $1,396,000 (or $0.20 per share), compared to $762,000 (or $0.11 per share) last year.

This quarter's results included a $572,000 loss from discontinued operations, primarily due to a $613,000 loss on the sale of Trace Regional Hospital and associated properties.

Consolidated net revenues dropped to $7,462,000 from $8,181,000, mainly due to a 9% decrease in pharmacy net revenues. Operating loss increased to $853,000 from $467,000. The nine months ended March 31, 2024, also showed a higher net loss of $5,815,000 (or $0.83 per share), compared to $369,000 (or $0.05 per share) last year.

SunLink also reported ongoing challenges from COVID-19, including workforce shortages and inflationary pressures.

SunLink Health Systems, Inc. (NYSE American: SSY) reported a loss from continuing operations for the second fiscal quarter ended December 31, 2023, compared to earnings in 2022. The net loss included an impairment charge related to the sale of Trace Regional Hospital. The company also announced revised agreements for the sale of Trace to Progressive Health of Houston, LLC. Consolidated net revenues decreased, and the company reported an operating loss for the quarter. SunLink reported a loss from continuing operations for the six months ended December 31, 2023, with adverse effects from the COVID-19 pandemic impacting its operations.

SunLink Health Systems, Inc. (NYSE: American: SSY) announced the sale of Trace Regional Hospital and three patient clinics in Chickasaw County, MS, to Progressive Health of Houston, LLC for $500,000. SunLink expects to report an aggregate loss in the range of $1,800,000 to $2,200,000 on the sale and its real estate. The company operates healthcare properties and businesses in the Southeast.

SunLink Health Systems, Inc. (SSY) has announced an amendment to the sale agreement with Progressive Health Group, LLC for the sale of Trace Regional Medical Center, extending the closing date until January 31, 2024, on the same price and terms. SunLink is a parent company of healthcare properties and businesses in the Southeast, operating locally with a patient-focused strategy.

SunLink Health Systems, Inc. (NYSE American: SSY) announced a loss from continuing operations of $428,000 for the first fiscal quarter ended September 30, 2023, compared to $605,000 for the same period in 2022. The subsidiary, Crown Healthcare Investments, LLC, signed an agreement for the sale of Trace Regional Medical Center for approximately $8,000,000. The net loss for the quarter ended September 30, 2023, was $1,344,000 compared to $1,558,000 for the same period in 2022. Consolidated net revenues for each fiscal quarter ended September 30, 2023, and 2022 were $8,555,000 and $7,449,000, respectively, representing a 15% increase. SunLink reported an operating loss for the quarter ended September 30, 2023, of $450,000 compared to $617,000 for the same period in 2022. The company also highlighted the adverse effects of the COVID-19 pandemic on its assets and operations, including salaries and wages pressure, workforce shortages, supply chain disruption, and broad inflationary pressures.

SunLink Health Systems, Inc. (NYSE: American: SSY) has announced the sale of its subsidiary, Crown Healthcare Investments, LLC, which owns and operates Trace Regional Medical Center in Chickasaw County, MS, for approximately $8,000,000. The sale is expected to result in a pre-tax gain of approximately $1,700,000 and is scheduled to close on December 15, 2023. The proceeds of the sale will be used for general corporate purposes. Due to the sale, the company will delay filing its quarterly report with the SEC, but intends to do so within the allowed extension period.