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Friday November 17th, 2017 6:16PM

SunLink Health Systems, Inc. Announces Fiscal 2017 Fourth Quarter and Annual Results

By The Associated Press

ATLANTA--(BUSINESS WIRE)--Sep 28, 2017--SunLink Health Systems, Inc. (NYSE American: SSY) today announced a loss from continuing operations of $2,768,000 or a loss of $0.30 per fully diluted share for its fourth fiscal quarter ended June 30, 2017 compared to a loss of $823,000, or a loss of $0.09 per fully diluted share, for the quarter ended June 30, 2016. Included in the loss for the fourth fiscal quarter ended June 30, 2017 is a $1,427,000 pre-tax impairment charge to write down the goodwill and unamortized intangible assets of SunLink’s Pharmacy Segment. Net loss for the quarter ended June 30, 2017 was a loss of $2,408,000 or a loss of $0.26 per fully diluted share compared to a net loss of $1,234,000 or a loss of $0.13 per fully diluted share for the quarter ended June 30, 2016. Income tax benefit from continuing operations was $276,000 for the quarter ended June 30, 2017 compared to income tax benefit of $2,293,000 for the quarter ended June 30, 2016. The results for the fourth fiscal quarter of 2016 include non-cash income tax benefits of $2,322,000 which correspondingly reduced the valuation allowance of the company’s deferred income tax assets available to offset future taxable income.

Consolidated net revenues from continuing operations for the quarters ended June 30, 2017 and 2016 were $12,288,000 and $14,060,000, respectively, a decrease of 13% in the current fiscal year’s fourth quarter compared to the comparable quarter of the prior fiscal year. Healthcare Services Segment net revenues of $5,328,000 for the quarter ended June 30, 2017 decreased $1,160,000 (18%) in the current fiscal year’s quarter primarily as a result of the closure of one hospital in June 2016. The Pharmacy Segment revenues of $6,960,000 in the quarter ended June 30, 2017 decreased $612,000, (8%), below revenues for the comparable quarter of the prior fiscal year due to lower revenues in all product categories.

SunLink had an operating loss for the quarter ended June 30, 2017 of $2,814,000, compared to an operating loss for the quarter ended June 30, 2016 of $2,908,000.

Earnings from discontinued operations were $360,000 ($0.04 per fully diluted share) for the quarter ended June 30, 2017 compared to a loss from discontinued operations of $411,000 (a loss of $0.04 per fully diluted share) for the quarter ended June 30, 2016. The earnings from discontinued operations for the current fiscal year resulted primarily from positive settlements of prior years’ Medicare cost reports at a previously sold hospital.

For the fiscal year ended June 30, 2017, SunLink reported a loss from continuing operations of $1,959,000 (a loss of $0.21 per fully diluted share) compared to a loss of $11,914,000 (a loss of $1.26 per fully diluted share) for the comparable period of the prior fiscal year. For the fiscal year ended June 30, 2017, SunLink reported net earnings of $2,688,000 ($0.29 per fully diluted share) compared to a net loss of $14,083,000(a loss of $1.49 per fully diluted share) for the fiscal year ended June 30, 2016. The loss from continuing operations for the fiscal year ended June 30, 2016 included a non-cash charge in income tax expense of $7,350,000 to fully reserve the company’s deferred income tax assets. Earnings from discontinued operations were $4,647,000 ($0.50 per fully diluted share) for the fiscal year ended June 30, 2017 compared to a loss from discontinued operations of $2,169,000 (a loss of $0.23 per fully diluted share) for the fiscal year ended June 30, 2016. The earnings from discontinued operations for the current fiscal year resulted from a pre-tax gain of $7,265,000 on the August 2016 sale of a hospital.

Consolidated net revenues from continuing operations for the fiscal year ended June 30, 2017 and 2016 were $53,288,000 and $63,433,000, respectively, a decrease of 16% in the current fiscal year. Healthcare Services Segment net revenues in the fiscal year ended June 30, 2017 of $22,381,000 represented a decrease of $8,836,000 (28%) in the current fiscal year resulting primarily from the closure of one hospital in June 2016. The Pharmacy Segment revenues of $30,907,000 in the fiscal year ended June 30, 2017 represented a decrease of $1,309,000, (4%) over the comparable fiscal year of the prior fiscal year due primarily to lower durable medical equipment and retail pharmacy revenues.

SunLink had an operating loss for the fiscal year ended June 30, 2017 of $4,510,000, compared to an operating loss for the fiscal year ended June 30, 2016 of $6,523,000.

SunLink Health Systems, Inc. is the parent company of subsidiaries that own and operate healthcare businesses in the Southeast. Each of the Company’s healthcare businesses is operated locally with a strategy of linking patients’ needs with dedicated physicians and 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, 2017 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 used in operations for the fiscal year ended June 30, 2017 and 2016, 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.

This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20170928006366/en.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Online - Georgia News, AP Business Wire - Georgia, AP Business - Industries, AP Business - Health Care
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