SunLink Health Systems Inc (SSY, Financial) filed Quarterly Report for the period ended 2009-09-30.
SunLink Health Systems, Inc. operates two business segments, the United States community hospital segment and the United Kingdom housewares segment. The U.S. community hospital segment is comprised of community hospitals and related businesses in the U.S., which are operated through its subsidiary, SunLink Healthcare Corp. The United Kingdom housewares segment manufactures and distributes, through its Beldray Limited subsidiary, housewares products in the United Kingdom. Sunlink Health Systems Inc has a market cap of $11.2 million; its shares were traded at around $2.35 with a P/E ratio of 7.3 and P/S ratio of 0.1. Sunlink Health Systems Inc had an annual average earning growth of 7.1% over the past 5 years.
Net revenue for the three months ended September 30, 2009 and 2008, included $437 and $431, respectively, from state indigent care programs. Net revenues included a decrease of $100 and an increase of $248 for the three months ended September 30, 2009 and 2008, respectively, for the settlements and filings of prior year Medicare and Medicaid cost reports.
Cost and expenses for Corporate Overhead including depreciation and amortization, was $1,259 and $1,530 for the three months ended September 30, 2009 and 2008, respectively. The decrease in the quarter ended September 30, 2009 was primarily due to lower stock option expense and $0 of strategic alternative expense in the current years quarter compared to $92 in the same quarter of the prior year.
Interest expense was $967 and $1,254 for the three months ended September 30, 2009 and 2008, respectively. The decrease in fiscal years 2009 and 2008 interest expense resulted from the accrual of derivative interest expense of $310 recorded in the quarter ended September 30, 2008 related to the Carmichael acquisition. The former owners of Carmichael (Sellers) received 334,448 common shares of SunLink as partial consideration for the SunLinks purchase of Carmichael in April 2008. SunLink was obligated to pay to the Sellers the difference between the market value at business sale date and the price per share received for any shares sold less $1.00 per share if these shares are sold within a year. The derivative interest expense of $310 for the three months ended September 30, 2008 resulted from the change in the calculated liability for the obligation. In March 2009, SunLink and the Sellers reached an agreement to cancel SunLinks share price guarantee in exchange for a one-year extension of a consulting agreement with one of the Sellers, assumption by SunLink of certain disputed pre-acquisition expenses that SunLink determined were the obligation of the Sellers, and payment by SunLink of certain post closing items.
Income tax expense of $583 ($526 federal tax expense and $57 state tax expense) and income tax benefit of $566 ($519 federal tax benefit and $47 state tax benefit) were recorded for the three months ended September 30, 2009 and 2008, respectively. The high effective income tax rate of 51.5% for the quarter ended September 30, 2009 resulted from the tax non-deductibility of $429 of goodwill included in the net assets of the home health businesses sold during the period.
Earnings from continuing operations were $549 ($0.07 earnings per fully diluted share) for the quarter ended September 30, 2009 compared to loss from continuing operations of $603 ($0.08 loss per fully diluted share) for the quarter ended September 30, 2008. Earnings from continuing operations in the current years quarter increased from the prior years quarter due to the sale of three of our home health agencies in September 2009.
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SunLink Health Systems, Inc. operates two business segments, the United States community hospital segment and the United Kingdom housewares segment. The U.S. community hospital segment is comprised of community hospitals and related businesses in the U.S., which are operated through its subsidiary, SunLink Healthcare Corp. The United Kingdom housewares segment manufactures and distributes, through its Beldray Limited subsidiary, housewares products in the United Kingdom. Sunlink Health Systems Inc has a market cap of $11.2 million; its shares were traded at around $2.35 with a P/E ratio of 7.3 and P/S ratio of 0.1. Sunlink Health Systems Inc had an annual average earning growth of 7.1% over the past 5 years.
Highlight of Business Operations:
Net revenues for the quarter ended September 30, 2009 were $37,493 with a total of 6,423 equivalent admissions and revenue per equivalent admission of $5,837 compared to net revenues of $37,067 with a total of 6,123 equivalent admissions and revenue per equivalent admission of $6,054 for the quarter ended September 30, 2008.Net revenue for the three months ended September 30, 2009 and 2008, included $437 and $431, respectively, from state indigent care programs. Net revenues included a decrease of $100 and an increase of $248 for the three months ended September 30, 2009 and 2008, respectively, for the settlements and filings of prior year Medicare and Medicaid cost reports.
Cost and expenses for Corporate Overhead including depreciation and amortization, was $1,259 and $1,530 for the three months ended September 30, 2009 and 2008, respectively. The decrease in the quarter ended September 30, 2009 was primarily due to lower stock option expense and $0 of strategic alternative expense in the current years quarter compared to $92 in the same quarter of the prior year.
Interest expense was $967 and $1,254 for the three months ended September 30, 2009 and 2008, respectively. The decrease in fiscal years 2009 and 2008 interest expense resulted from the accrual of derivative interest expense of $310 recorded in the quarter ended September 30, 2008 related to the Carmichael acquisition. The former owners of Carmichael (Sellers) received 334,448 common shares of SunLink as partial consideration for the SunLinks purchase of Carmichael in April 2008. SunLink was obligated to pay to the Sellers the difference between the market value at business sale date and the price per share received for any shares sold less $1.00 per share if these shares are sold within a year. The derivative interest expense of $310 for the three months ended September 30, 2008 resulted from the change in the calculated liability for the obligation. In March 2009, SunLink and the Sellers reached an agreement to cancel SunLinks share price guarantee in exchange for a one-year extension of a consulting agreement with one of the Sellers, assumption by SunLink of certain disputed pre-acquisition expenses that SunLink determined were the obligation of the Sellers, and payment by SunLink of certain post closing items.
Income tax expense of $583 ($526 federal tax expense and $57 state tax expense) and income tax benefit of $566 ($519 federal tax benefit and $47 state tax benefit) were recorded for the three months ended September 30, 2009 and 2008, respectively. The high effective income tax rate of 51.5% for the quarter ended September 30, 2009 resulted from the tax non-deductibility of $429 of goodwill included in the net assets of the home health businesses sold during the period.
Earnings from continuing operations were $549 ($0.07 earnings per fully diluted share) for the quarter ended September 30, 2009 compared to loss from continuing operations of $603 ($0.08 loss per fully diluted share) for the quarter ended September 30, 2008. Earnings from continuing operations in the current years quarter increased from the prior years quarter due to the sale of three of our home health agencies in September 2009.
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