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SunLink Health Systems, Inc. Announces Fiscal 2014 Third Quarter ResultsATLANTA --(Business Wire)-- SunLink Health Systems, Inc. (NYSE MKT: SSY) today announced a loss from continuing operations for its fiscal quarter ended March 31, 2014 of $911,000 or a loss of $0.10 per fully diluted share, compared to a loss from continuing operations of $197,000 or a loss of $0.02 per fully diluted share, for the quarter ended March 31, 2013. SunLink reported a net loss for the quarter ended March 31, 2014 of $964,000, or a loss of $0.10 per fully diluted share, compared to a net loss of $186,000, or a loss of $0.02 per fully diluted share, for the quarter ended March 31, 2013. Consolidated net revenues from continuing operations for the quarters ended March 31, 2014 and 2013 were $27,718,000 and $29,240,000, respectively, a decrease of 5.2% in the current year's quarter. The Healthcare Facilities Segment net revenues in the current quarter of $17,370,000 decreased $1,490,000, or 7.9%, compared to $18,860,000 for the comparable quarter of the prior year due to lower patient volume. The Specialty Pharmacy Segment revenues of $10,217,000 in the quarter ended March 31, 2014 decreased $199,000, or 1.9%, from the comparable quarter of the prior year due primarily to a decrease in durable medical equipment sales and rental revenues. The company had an operating loss from continuing operations for the quarter ended March 31, 2014 of $998,000, compared to an operating loss from continuing operations for the quarter ended March 31, 2013 of $268,000. The operating loss increased in the current year's quarter primarily due to decreased patient volume in SunLink's Healthcare Facilities Segment. The operating profit of SunLink's Specialty Pharmacy Segment increased 25% in the third fiscal quarter compared to the comparable quarter a year ago due to a slightly higher gross profit margin and reduced operating expenses. For the nine months ended March 31, 2014, SunLink reported a loss from continuing operations of $2,098,000, or a loss of $0.22 per fully diluted share, compared to a loss of $0.34 per fully diluted share, for the comparable period last year. For the nine months ended March 31, 2014, SunLink reported a net loss of $1,895,000, or a loss of $0.20 per fully diluted share, compared to net income of $2,325,000 or $0.25 per share, for the nine months ended March 31, 2013. The net income for the nine months ended March 31, 2013 included income from discontinued operations of $5,539,000, primarily as a result of a gain on the sale of substantially all of the assets of a subsidiary which owned and operated a hospital in Dexter, Missouri. Consolidated net revenues from continuing operations for the nine months ended March 31, 2014 decreased by 2.9% to $80,360,000 compared to $82,780,000 in the comparable period a year ago. The Healthcare Facilities Segment had net revenues in the nine months ended March 31, 2014 of $53,657,000 compared to $56,372,000 for the comparable period a year ago. The Specialty Pharmacy Segment had $26,385,000 of net revenues for the nine months ended March 31, 2014 compared to $26,405,000 for the comparable nine months of the last fiscal year. SunLink had an operating loss from continuing operations for the nine months ended March 31, 2014 of $2,050,000 compared to an operating loss of $3,733,000 for the nine months ended March 31, 2013. Adjusted EBITDA (a non-GAAP measure of the liquidity of the company) for SunLink's Healthcare Facilities Segment was $2,354,000 in the nine months ended March 31, 2014, compared to $2,292,000 for the comparable period last year. Adjusted EBITDA for the nine months ended March 31, 2014 for the Specialty Pharmacy Segment was $1,181,000 compared to $794,000 for the comparable period last year. SunLink Health Systems, Inc. is the parent company of subsidiaries that operate hospitals and related businesses in the Southeast and Midwest, and a specialty pharmacy company in Louisiana. Each hospital is the only hospital in its community and is operated locally with a strategy of linking patients' needs with dedicated physicians and healthcare professionals to deliver quality efficient medical care. For additional information on SunLink Health Systems, Inc., please visit the company's website at www.sunlinkhealth.com. This press release may contain certain statements of a forward-looking nature. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements. 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 meet 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 operations for the three and nine months ended March 31, 2014 and 2013, respectively, is shown below. Healthcare Facilities Adjusted EBITDA and Specialty 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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