SunLink Health Systems, Inc. Announces Fiscal 2025 First Quarter Results
SunLink Health Systems (NYSE American: SSY) reported Q1 fiscal 2025 results with a loss from continuing operations of $442,000 ($0.06 per share), compared to $428,000 loss in Q1 2024. The company sold non-core assets for $1,465,000, resulting in a $694,000 pre-tax gain. Net loss was $549,000 ($0.08 per share), improved from $1,344,000 loss year-over-year. Consolidated revenues decreased to $7,923,000 from $8,555,000, with pharmacy revenues declining 7%. The company's operating loss widened to $1,194,000 from $450,000 due to decreased revenues and higher operating costs. The Board is actively pursuing extraordinary corporate transactions, including potential mergers.
SunLink Health Systems (NYSE American: SSY) ha riportato i risultati del primo trimestre fiscale 2025 con una perdita dalle operazioni continuative di 442.000 dollari (0,06 dollari per azione), rispetto a una perdita di 428.000 dollari nel primo trimestre del 2024. L'azienda ha venduto beni non strategici per 1.465.000 dollari, generando un guadagno ante imposte di 694.000 dollari. La perdita netta è stata di 549.000 dollari (0,08 dollari per azione), migliorando rispetto a una perdita di 1.344.000 dollari anno dopo anno. I ricavi consolidati sono diminuiti a 7.923.000 dollari, rispetto a 8.555.000 dollari, con i ricavi farmaceutici in calo del 7%. La perdita operativa dell'azienda è aumentata a 1.194.000 dollari, rispetto a 450.000 dollari, a causa della diminuzione dei ricavi e dei costi operativi più elevati. Il Consiglio sta attivamente perseguendo straordinarie operazioni aziendali, incluse potenziali fusioni.
SunLink Health Systems (NYSE American: SSY) informó los resultados del primer trimestre fiscal 2025 con una pérdida de las operaciones continuas de 442,000 dólares (0.06 dólares por acción), en comparación con una pérdida de 428,000 dólares en el primer trimestre de 2024. La compañía vendió activos no estratégicos por 1,465,000 dólares, resultando en una ganancia previa a impuestos de 694,000 dólares. La pérdida neta fue de 549,000 dólares (0.08 dólares por acción), mejorando desde una pérdida de 1,344,000 dólares año tras año. Los ingresos consolidados disminuyeron a 7,923,000 dólares desde 8,555,000 dólares, con los ingresos de farmacias cayendo un 7%. La pérdida operativa de la compañía se amplió a 1,194,000 dólares desde 450,000 dólares debido a la disminución de ingresos y mayores costos operativos. La Junta está buscando activamente transacciones corporativas extraordinarias, incluidas posibles fusiones.
SunLink Health Systems (NYSE American: SSY)는 2025 회계연도 1분기 결과로 지속 운영에서 442,000달러(주당 0.06달러)의 손실을 기록했으며, 이는 2024년 1분기 428,000달러의 손실과 비교됩니다. 이 회사는 비핵심 자산을 1,465,000달러에 판매하여 694,000달러의 세전 이익을 얻었습니다. 순손실은 549,000달러(주당 0.08달러)로, 연간 1,344,000달러의 손실에서 개선되었습니다. 총수익은 8,555,000달러에서 7,923,000달러로 감소했으며, 약국 수익은 7% 줄었습니다. 이 회사의 운영 손실은 수익 감소와 증가한 운영 비용으로 인해 450,000달러에서 1,194,000달러로 확대되었습니다. 이사회는 잠재적 합병을 포함한 비상식적인 기업 거래를 적극적으로 추진하고 있습니다.
SunLink Health Systems (NYSE American: SSY) a annoncé les résultats du premier trimestre fiscal 2025 avec une perte des opérations continues de 442 000 dollars (0,06 dollar par action), contre une perte de 428 000 dollars au premier trimestre 2024. L'entreprise a vendu des actifs non essentiels pour 1 465 000 dollars, ce qui a entraîné un gain avant impôts de 694 000 dollars. La perte nette s'élevait à 549 000 dollars (0,08 dollar par action), s'améliorant par rapport à une perte de 1 344 000 dollars d'une année sur l'autre. Les revenus consolidés ont diminué, passant de 8 555 000 dollars à 7 923 000 dollars, avec une baisse de 7 % des revenus de pharmacie. La perte d'exploitation de l'entreprise a augmenté, passant de 450 000 dollars à 1 194 000 dollars en raison de la baisse des revenus et de la hausse des coûts d'exploitation. Le Conseil d'administration cherche activement à réaliser des transactions corporatives extraordinaires, y compris des fusions potentielles.
SunLink Health Systems (NYSE American: SSY) berichtete über die Ergebnisse des ersten Quartals des fiskalischen Jahres 2025 mit einem Verlust aus fortgeführten Betrieben von 442.000 USD (0,06 USD pro Aktie), verglichen mit einem Verlust von 428.000 USD im ersten Quartal 2024. Das Unternehmen hat nicht zum Kerngeschäft gehörende Vermögenswerte für 1.465.000 USD verkauft, was zu einem vorsteuerlichen Gewinn von 694.000 USD führte. Der Nettoverlust betrug 549.000 USD (0,08 USD pro Aktie) und verbesserte sich im Vergleich zu einem Verlust von 1.344.000 USD im Vorjahr. Die konsolidierten Einnahmen sanken von 8.555.000 USD auf 7.923.000 USD, wobei die Einnahmen aus der Apotheke um 7% zurückgingen. Der operative Verlust des Unternehmens weitete sich von 450.000 USD auf 1.194.000 USD aus, bedingt durch gesunkene Einnahmen und gestiegene Betriebskosten. Der Vorstand strebt aktiv außergewöhnliche Unternehmensgeschäfte an, einschließlich möglicher Fusionen.
- Sale of non-core assets generated $1,465,000 cash with $694,000 pre-tax gain
- Net loss improved to $549,000 from $1,344,000 year-over-year
- Sale of Trace Regional Hospital real estate for $1,932,000
- Loss from continuing operations increased to $442,000
- Consolidated revenues declined 7.4% to $7,923,000
- Operating loss widened to $1,194,000 from $450,000
- Pharmacy revenues decreased 7% year-over-year
- Ongoing challenges from post-COVID effects including wage pressure and workforce shortages
Insights
The Q1 FY2025 results reveal concerning operational challenges at SunLink Health Systems. While the company reduced its net loss to
Core operations are deteriorating, with consolidated revenues declining by
Net loss for the quarter ended September 30, 2024 was
The Company’s indirect subsidiary, Southern Health Corporation of
Consolidated net revenues for the fiscal quarters ended September 30, 2024 and 2023 were
SunLink reported an operating loss for the quarter ended September 30, 2024 of
Business Strategy
The Board of Directors of SunLink believes management of the Company should, among other things, actively pursue one or more extraordinary corporate transactions, any of which transactions may involve merger or consolidation with a compatible third party, as a result of which the Company's shareholders may not hold a majority of the equity in, or otherwise control the resulting entity. The Company is seeking to achieve a merger or other transaction which, among other things, provides the potential for growth in revenue and profitability on what it believes is a reasonable risk/reward basis as well as an increase in size over which to spread the costs of public company status.
COVID-19 Pandemic
The Company continues to experience post-COVID-19 pandemic after-effects in its quarter and believes it will likely to continue experience these effects on its assets and operations in the foreseeable future particularly from salaries and wages pressure, workforce shortages, supply chain disruption and broad inflationary pressures. Our ability to make estimates of any such continuing effects 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 a pharmacy business and an information technology business in the Southeast. 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, 2024 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov.
| SUNLINK HEALTH SYSTEMS, INC. ANNOUNCES | |||||||||||||||
| FISCAL 2025 FIRST QUARTER RESULTS | |||||||||||||||
| Amounts in 000's, except per share | |||||||||||||||
| CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) | |||||||||||||||
| Three Months Ended September 30, | |||||||||||||||
2024 |
2023 |
||||||||||||||
| % of Net | % of Net | ||||||||||||||
| Amount | Revenues | Amount | Revenues | ||||||||||||
| Net revenues | $ |
7,923 |
|
|
100.0 |
% |
$ |
8,555 |
|
100.0 |
% |
||||
| Costs and Expenses: | |||||||||||||||
| Cost of goods sold |
|
4,475 |
|
|
56.5 |
% |
|
4,771 |
|
55.8 |
% |
||||
| Salaries, wages and benefits |
|
3,078 |
|
|
38.8 |
% |
|
2,617 |
|
30.6 |
% |
||||
| Supplies |
|
34 |
|
|
0.4 |
% |
|
34 |
|
0.4 |
% |
||||
| Purchased services |
|
319 |
|
|
4.0 |
% |
|
286 |
|
3.3 |
% |
||||
| Other operating expenses |
|
804 |
|
|
10.1 |
% |
|
906 |
|
10.6 |
% |
||||
| Rent and leases |
|
94 |
|
|
1.2 |
% |
|
91 |
|
1.1 |
% |
||||
| Depreciation and amortization |
|
313 |
|
|
4.0 |
% |
|
300 |
|
3.5 |
% |
||||
| Operating loss |
|
(1,194 |
) |
|
-15.1 |
% |
|
(450 |
) |
-5.3 |
% |
||||
| Interest Income - net |
|
58 |
|
|
0.7 |
% |
|
22 |
|
0.3 |
% |
||||
| Gain on sale of assets |
|
694 |
|
|
8.8 |
% |
|
2 |
|
0.0 |
% |
||||
| Loss from Continuing Operations before | |||||||||||||||
| Income Taxes |
|
(442 |
) |
|
-5.6 |
% |
|
(426 |
) |
-5.0 |
% |
||||
| Income Tax expense |
|
0 |
|
|
0.0 |
% |
|
2 |
|
0.0 |
% |
||||
| Loss from Continuing Operations |
|
(442 |
) |
|
-5.6 |
% |
|
(428 |
) |
-5.0 |
% |
||||
| Loss from Discontinued Operations, net of tax |
|
(107 |
) |
|
-1.4 |
% |
|
(916 |
) |
-10.7 |
% |
||||
| Net Loss | $ |
(549 |
) |
|
-6.9 |
% |
$ |
(1,344 |
) |
-15.7 |
% |
||||
| Loss Per Share from Continuing Operations: | |||||||||||||||
| Basic | $ |
(0.06 |
) |
$ |
(0.06 |
) |
|||||||||
| Diluted | $ |
(0.06 |
) |
$ |
(0.06 |
) |
|||||||||
| Loss Per Share from Discontinued Operations: | |||||||||||||||
| Basic | $ |
(0.02 |
) |
$ |
(0.13 |
) |
|||||||||
| Diluted | $ |
(0.02 |
) |
$ |
(0.13 |
) |
|||||||||
| Net Loss Per Share: | |||||||||||||||
| Basic | $ |
(0.08 |
) |
$ |
(0.19 |
) |
|||||||||
| Diluted | $ |
(0.08 |
) |
$ |
(0.19 |
) |
|||||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic |
|
7,041 |
|
|
7,033 |
|
|||||||||
| Diluted |
|
7,041 |
|
|
7,033 |
|
|||||||||
| SUMMARY BALANCE SHEETS | September 30, | June 30, | |||||||||||||
2024 |
2024 |
||||||||||||||
| ASSETS | |||||||||||||||
| Cash and Cash Equivalents | $ |
7,529 |
|
$ |
7,170 |
|
|||||||||
| Receivable - net |
|
3,011 |
|
|
3,371 |
|
|||||||||
| Current Assets Held for Sale |
|
1,915 |
|
|
1,959 |
|
|||||||||
| Other Current Assets |
|
3,161 |
|
|
3,164 |
|
|||||||||
| Property Plant and Equipment, net |
|
2,316 |
|
|
2,809 |
|
|||||||||
| Long-term Assets |
|
1,697 |
|
|
2,139 |
|
|||||||||
$ |
19,629 |
|
$ |
20,612 |
|
||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
| Current Liabilities | $ |
3,851 |
|
$ |
4,213 |
|
|||||||||
| Noncurrent Liabilities |
|
354 |
|
|
426 |
|
|||||||||
| Shareholders' Equity |
|
15,424 |
|
|
15,973 |
|
|||||||||
$ |
19,629 |
|
$ |
20,612 |
|
||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112751937/en/
Robert M. Thornton, Jr.
Chief Executive Officer
(770) 933-7004
Source: SunLink Health Systems, Inc.
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