SunLink Health Systems, Inc. Announces Fiscal 2024 First Quarter Results
SunLink Health Systems, Inc. (NYSE American: SSY) today announced a loss from continuing operations of $428,000 (or a loss of $0.06 per fully diluted share) for its first fiscal quarter ended September 30, 2023 compared to a loss from continuing operations of $605,000 (or a loss of $0.09 per fully diluted share) for the first fiscal quarter ended September 30, 2022. On November 10, 2023, the Company's subsidiary, Crown Healthcare Investments, LLC, signed an agreement with Progressive Health Group, LLC, ("Buyer") for the sale of the subsidiary that owns and operates Trace Regional Medical Center ("Trace"), which includes a hospital, a skilled nursing facility and three (3) patient clinics in Houston, MS, for approximately $8,000,000. The sale is expected to close by December 15, 2023 but is subject to, among other things, the Buyer's satisfactory completion of its due diligence investigation and a number of customary closing conditions. The results for Trace are included in discontinued operations for the current fiscal year and prior period financial information has been restated to include Trace in discontinued operations.
Net loss for the quarter ended September 30, 2023 was $1,344,000 (or a loss of $0.19 per fully diluted share) compared to a net loss of $1,558,000 (or a loss of $0.22 per fully diluted share) for the quarter ended September 30, 2022. The net loss for the quarter included a loss from discontinued operations of $916,000 (or a loss of $0.13 per fully diluted share) for the quarter ended September 30, 2023 compared to a loss from discontinued operations of $953,000 (or a loss of $0.14 per fully diluted share) for the quarter ended September 30, 2022, substantially all of which relates to Trace's results.
Consolidated net revenues for each fiscal quarters ended September 30, 2023 and 2022 were $8,555,000 and $7,449,000, respectively, an increase of 15% in the current year's quarter above those in the comparable quarter of the prior fiscal year. Pharmacy net revenues increased above those of the comparable fiscal quarter of the prior fiscal year due to a $321 refund of prior periods sales taxes paid, an 8% increase retail and institutional pharmacy scripts filled and increased DME revenue per order in the fiscal quarter ended September 30, 2023 compared to the fiscal quarter ended September 30, 2022.
SunLink reported an operating loss for the quarter ended September 30, 2023 of $450,000 compared to an operating loss for the quarter ended September 30, 2022 of $617,000. The decrease in operating loss from last year's comparable quarter was due primarily to the increased net revenues this fiscal quarter.
The Company continued to experience adverse after-effects of the COVID-19 pandemic in the quarter ended September 30, 2023 and believes such effects will likely continue to affect its assets and operations in the foreseeable future particularly salaries and wages pressure, workforce shortages, supply chain disruption and broad inflationary pressures. Our ability to make estimates of any such continuing effects of evolving strains of COVID-19 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, 2023 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov.
Keynote Presentation by Avant
Defining 5Gâ€¦5G Network Buildout Benefits and Challenges
Time: 9:00-9:30 am