SunLink Health Systems, Inc. Announces Fiscal 2018 Third Quarter Results

By a News Reporter-Staff News Editor at Investment Weekly News -- SunLink Health Systems, Inc. (NYSE American: SSY) announced a Loss from Continuing Operations of $604,000, or a loss of $0.08 per fully diluted share, for its third fiscal quarter ended March 31, 2018 compared to a Loss from Continuing Operations of $890,000, or a loss of $0.10 per fully diluted share, for the quarter ended March 31, 2017. The Net Loss for the quarter ended March 31, 2018 was $588,000, or a loss of $0.08 per fully diluted share compared to a Net Loss of $1,025,000, or a loss of $0.11 per fully diluted share, for the quarter ended March 31, 2017. Weighted average common shares outstanding for the quarter ended March 31, 2018 were 7,417,000 compared to 9,334,000 for the same quarter last year as a primarily as a result of the 1,746,000 common shares repurchased by the Company in December 2017.

Consolidated Net Revenues for the quarters ended March 31, 2018 and 2017 were $13,417,000 and $13,699,000, respectively, a decrease of 2% in the current year's third fiscal quarter compared to the comparable quarter of the prior fiscal year. Healthcare Services segment net revenues of $5,657,000 for the quarter ended March 31, 2018 increased $156,000 (3%) over last year's third quarter primarily due to increased nursing home revenues and reduced bad debts. Pharmacy segment net revenues of $7,760,000 in the quarter ended March 31, 2018 decreased $438,000 (5%) from the comparable quarter of the prior fiscal year due to decreased revenues in both Retail and Institutional Pharmacy operations this year.

SunLink reported an Operating Loss for the quarter ended March 31, 2018 of $731,000, compared to a $771,000 Operating Loss for the quarter ended March 31, 2017. The quarter ended March 31, 2018 includes a $183,000 gain on the January 2018 sale of certain Retail Pharmacy assets. Interest Expense of $56,000 for the quarter ended March 31, 2018 reflected a decrease of $73,000 from the quarter ended March 31, 2017 as a result of the $3,856,000 in debt repayments during the nine months ended March 31, 2018.

Earnings from Discontinued Operations were $16,000, or $0.00 per fully diluted share, for the quarter ended March 31, 2018 compared to a Loss from Discontinued Operations of $135,000, or a loss of $0.01 per fully diluted share, for the quarter ended March 31, 2017.

For the nine months ended March 31, 2018, SunLink reported a Loss from Continuing Operations of $29,000, or a loss of $0.00 per fully diluted share, compared to Earnings from Continuing Operations of $809,000, $0.09 per fully diluted share, for the comparable nine month period of the prior year. The Loss from Continuing Operations for the nine months period ended March 31, 2018 as compared to Earnings from Continuing Operations for the nine month period last year results from the significantly lower gains on the sale of assets during the first nine months of fiscal 2018. For the nine months ended March 31, 2018, SunLink reported a Net Loss of $139,000, or a loss of $0.02 per fully diluted share, compared to Net Earnings of $5,096,000, $0.54 per fully diluted share, for the nine months ended March 31, 2017. Loss from Discontinued Operations was $110,000, or a loss of $0.01 per fully diluted share, for the nine months ended March 31, 2018 compared to Earnings from Discontinued Operations of $4,287,000, $0.45 per fully diluted share, for the nine months ended March 31, 2017. The Earnings from Discontinued Operations for the nine months of the prior year resulted from a pre-tax gain of $7,270,000 on the August 2016 sale of a hospital.

Consolidated Net Revenues for the nine months ended March 31, 2018 and 2017 were $40,658,000 and $41,000,000 respectively, a decrease of 1% in the current nine months. Healthcare Services Segment net revenues in the nine months ended March 31, 2018 of $17,033,000 represented a decrease of $21,000 (1%) resulting from lower nursing home revenues in the first nine months of the fiscal year. The Pharmacy Segment net revenues of $23,625,000 in the nine months ended March 31, 2018 represented a decrease of $321,000, (1%) from the comparable nine months of the prior year due primarily to lower Retail and Institutional Pharmacy revenues.

SunLink had an Operating Loss for the nine months ended March 31, 2018 of $910,000, compared to an Operating Loss for the nine months ended March 31, 2017 of $1,696,000.

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 healthcare professionals. For additional information on SunLink Health Systems, Inc., please visit the Company's website.

Keywords for this news article include: Business, Finance and Investment, SunLink Health Systems Inc.

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