SunLink Health Systems, Inc. Announces Fiscal 2019 First Quarter Results
ATLANTA--(BUSINESS WIRE)--Nov 14, 2018--SunLink Health Systems, Inc. (NYSE American: SSY) today announced a loss from continuing operations of $817,000 (a loss of $0.11 per fully diluted share) for its first fiscal quarter ended September 30, 2018 compared to a loss of $224,000, (a loss of $0.02 per fully diluted share) for the quarter ended September 30, 2017. Net loss for the quarter ended September 30, 2018 was a loss of $880,000 (a loss of $0.12 per fully diluted share) compared to a net loss of $277,000 (a loss of $0.03 per fully diluted share) for the quarter ended September 30, 2017.
Consolidated net revenues from continuing operations for the quarters ended September 30, 2018 and 2017 were $12,052,000 and $13,243,000, respectively, a decrease of 9% in the current fiscal year’s first quarter compared to the comparable quarter of the prior fiscal year. Healthcare Services Segment net revenues of $5,536,000 for the quarter ended September 30, 2018 decreased $118,000 (2%) primarily due to decreased Medicare net revenues. The Pharmacy Segment revenues of $6,516,000 in the quarter ended September 30, 2018 reflected a decrease of $1,073,000, (14%) below revenues for the comparable quarter of the prior fiscal year. The decrease in Pharmacy Segment revenues was due primarily to the sale of one of two retail pharmacy locations in January 2018 and higher durable medical equipment revenues in the preceding year which were realized from a temporary adjustment in Medicare reimbursement under the provisions of the 21stCentury Act.
SunLink incurred an operating loss for the quarter ended September 30, 2018 of $758,000, compared to an operating loss for the quarter ended September 30, 2017 of $99,000. The increased loss in the current year resulted from lower net revenues and from higher salaries, wages and benefits as a percentage of net revenues.
Loss from discontinued operations was $63,000 ($0.01 per fully diluted share) for the quarter ended September 30, 2018 compared to a loss from discontinued operations of $53,000 ($0.01 per fully diluted share) for the quarter ended September 30, 2017. The loss from discontinued operations for the current fiscal quarter resulted primarily from certain retained liabilities from sold facilities.
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, 2018 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov.
Adjusted earnings before income taxes, interest, depreciation and amortization
Earnings before income taxes, interest, depreciation and amortization (“EBITDA”) represent the sum of income before income taxes, interest, depreciation and amortization. We understand that certain industry analysts and investors generally consider EBITDA to be one measure of the liquidity of the company, and it is presented to assist analysts and investors in analyzing the ability of the company to generate cash, service debt and to satisfy capital requirements. We believe increased EBITDA is an indicator of improved ability to service existing debt and to satisfy capital requirements. EBITDA, however, is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income as a measure of operating performance or to cash liquidity. Because EBITDA is not a measure determined in accordance with accounting principles generally accepted in the United States of America and is thus susceptible to varying calculations, EBITDA, as presented, may not be comparable to other similarly titled measures of other corporations. Net cash provided by (used in) operations for the fiscal quarter ended September 30, 2018 and 2017, respectively, is shown below. Healthcare Services Adjusted EBITDA and Pharmacy Adjusted EBITDA is the EBITDA for those facilities without any allocation of corporate overhead, impairment charges, and gains on sale of businesses.
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CONTACT: Robert M. Thornton, Jr.
Chief Executive Officer
KEYWORD: UNITED STATES NORTH AMERICA GEORGIA
INDUSTRY KEYWORD: HEALTH GENERAL HEALTH MANAGED CARE
SOURCE: SunLink Health Systems, Inc.
Copyright Business Wire 2018.
PUB: 11/14/2018 04:10 PM/DISC: 11/14/2018 04:10 PM