SunLink Health Systems, Inc. Announces Fiscal 2025 First Quarter Results
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.
