2012 Q4 Form 10-Q Financial Statement

#000119312513060336 Filed on February 14, 2013

View on sec.gov

Income Statement

Concept 2012 Q4 2012 Q2 2011 Q4
Revenue $30.39M $26.63M $31.40M
YoY Change -3.24% 4061.41% -22.54%
Cost Of Revenue $1.896M $4.910M $1.858M
YoY Change 2.05% 14.19% -77.99%
Gross Profit $28.49M $21.72M $29.54M
YoY Change -3.57% -693.44% -7.97%
Gross Profit Margin 93.76% 81.55% 94.08%
Selling, General & Admin $18.35M $17.22M $17.74M
YoY Change 3.44% -777.95% -31.11%
% of Gross Profit 64.41% 79.28% 60.05%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $989.0K $1.020M $1.120M
YoY Change -11.7% -3.77% -21.13%
% of Gross Profit 3.47% 4.7% 3.79%
Operating Expenses $22.29M $15.95M $22.27M
YoY Change 0.09% 26483.33% -30.23%
Operating Profit -$974.0K $5.770M -$1.059M
YoY Change -8.03% -255.11% -688.33%
Interest Expense $647.0K -$980.0K $1.031M
YoY Change -37.25% -44.0% -131.92%
% of Operating Profit -16.98%
Other Income/Expense, Net $1.024M $0.00 $613.0K
YoY Change 67.05% -100.0%
Pretax Income -$1.621M $4.780M -$2.090M
YoY Change -22.44% -125.39% -31.48%
Income Tax -$226.0K $1.630M -$693.0K
% Of Pretax Income 34.1%
Net Earnings $3.935M $5.114M -$935.0K
YoY Change -520.86% -145.42% -47.18%
Net Earnings / Revenue 12.95% 19.2% -2.98%
Basic Earnings Per Share $0.42 $0.54 -$0.10
Diluted Earnings Per Share $0.42 $0.54 -$0.10
COMMON SHARES
Basic Shares Outstanding 9.446M shares 9.448M shares 9.448M shares
Diluted Shares Outstanding 9.446M shares 9.448M shares 9.448M shares

Balance Sheet

Concept 2012 Q4 2012 Q2 2011 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.500M $2.100M $500.0K
YoY Change 1600.0% -71.23% -58.33%
Cash & Equivalents $7.733M $2.057M $500.0K
Short-Term Investments
Other Short-Term Assets $10.60M $11.20M $10.10M
YoY Change 4.95% -19.42% 5.21%
Inventory $3.922M $3.884M $4.300M
Prepaid Expenses
Receivables $14.23M $13.23M $16.10M
Other Receivables $700.0K $200.0K $2.100M
Total Short-Term Assets $37.86M $30.62M $33.20M
YoY Change 14.03% -29.45% -7.78%
LONG-TERM ASSETS
Property, Plant & Equipment $30.39M $30.08M $31.90M
YoY Change -4.74% -10.74% -19.24%
Goodwill $461.0K $461.0K
YoY Change
Intangibles $3.248M $3.320M
YoY Change
Long-Term Investments
YoY Change
Other Assets $1.735M $894.0K $11.00M
YoY Change -84.23% -90.97% 2650.0%
Total Long-Term Assets $39.85M $48.55M $47.70M
YoY Change -16.46% 0.32% -21.03%
TOTAL ASSETS
Total Short-Term Assets $37.86M $30.62M $33.20M
Total Long-Term Assets $39.85M $48.55M $47.70M
Total Assets $77.70M $79.17M $80.90M
YoY Change -3.95% -13.76% -16.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.402M $6.934M $7.900M
YoY Change 6.35% -7.55% -9.2%
Accrued Expenses $6.900M $7.200M $7.400M
YoY Change -6.76% -8.86% -17.78%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $5.931M $6.700M
YoY Change -100.0% 11.91% 139.29%
Long-Term Debt Due $9.488M $9.350M $2.100M
YoY Change 351.81% 345.24% -93.07%
Total Short-Term Liabilities $33.37M $31.81M $32.60M
YoY Change 2.37% 1.64% -35.7%
LONG-TERM LIABILITIES
Long-Term Debt $6.435M $13.74M $20.90M
YoY Change -69.21% -53.58% 895.24%
Other Long-Term Liabilities $724.0K $907.0K $4.700M
YoY Change -84.6% -81.1% 17.5%
Total Long-Term Liabilities $12.49M $18.07M $25.60M
YoY Change -51.23% -47.48% 319.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $33.37M $31.81M $32.60M
Total Long-Term Liabilities $12.49M $18.07M $25.60M
Total Liabilities $45.86M $49.88M $58.20M
YoY Change -21.21% -24.19% -1.19%
SHAREHOLDERS EQUITY
Retained Earnings $14.05M $11.54M
YoY Change
Common Stock $4.725M $4.724M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $31.80M $29.30M $22.60M
YoY Change
Total Liabilities & Shareholders Equity $77.70M $79.17M $80.90M
YoY Change -3.95% -13.76% -16.08%

Cashflow Statement

Concept 2012 Q4 2012 Q2 2011 Q4
OPERATING ACTIVITIES
Net Income $3.935M $5.114M -$935.0K
YoY Change -520.86% -145.42% -47.18%
Depreciation, Depletion And Amortization $989.0K $1.020M $1.120M
YoY Change -11.7% -3.77% -21.13%
Cash From Operating Activities $2.710M $3.740M $330.0K
YoY Change 721.21% -48.63% -113.69%
INVESTING ACTIVITIES
Capital Expenditures $417.0K -$900.0K -$180.0K
YoY Change -331.67% 233.33% -10.0%
Acquisitions
YoY Change
Other Investing Activities $8.310M -$380.0K -$70.00K
YoY Change -11971.43% 46.15% 133.33%
Cash From Investing Activities $7.880M -$1.270M -$250.0K
YoY Change -3252.0% 139.62% 4.17%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -3.370M -1.280M 30.00K
YoY Change -11333.33% 412.0% -97.0%
NET CHANGE
Cash From Operating Activities 2.710M 3.740M 330.0K
Cash From Investing Activities 7.880M -1.270M -250.0K
Cash From Financing Activities -3.370M -1.280M 30.00K
Net Change In Cash 7.220M 1.190M 110.0K
YoY Change 6463.64% -81.69% -106.67%
FREE CASH FLOW
Cash From Operating Activities $2.710M $3.740M $330.0K
Capital Expenditures $417.0K -$900.0K -$180.0K
Free Cash Flow $2.293M $4.640M $510.0K
YoY Change 349.61% -38.54% -123.08%

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<div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Note 2. &#x2013; Business Operations</b></font></p> <!-- xbrl,body --> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><u>Business Operations</u></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">SunLink Health Systems, Inc. subsidiaries provide healthcare services in certain rural and exurban markets in the United States. SunLink&#x2019;s business is composed of the ownership of subsidiaries which operate two business segments:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Healthcare Facilities, which consist of</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Our four community hospitals which have a total of 232 licensed beds;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Our two nursing homes, which have a total of 166 licensed beds, each of which is located adjacent to a corresponding SunLink community hospital; and</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">One hospital facility and related equipment leased to a third party hospital operator. A third party has an option, through March&#xA0;15, 2013, to buy the hospital facility and equipment.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="2%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Specialty Pharmacy, which consists of</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Specialty pharmacy services;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Durable medical equipment;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Institutional pharmacy services; and</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">Retail pharmacy products and services, all of which are conducted in rural markets.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">SunLink subsidiaries have conducted the healthcare facilities business since 2001 and the specialty pharmacy business since April 2008. The Specialty Pharmacy Segment currently is operated through Carmichael&#x2019;s Cashway Pharmacy, Inc. (&#x201C;Carmichael&#x201D;), a subsidiary of SunLink ScriptsRx, LLC subsidiary, and is composed of a specialty pharmacy business acquired in April 2008 with four service lines.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">SunLink&#x2019;s Board and management have determined to focus the Company&#x2019;s strategic investments on enhancing the existing hospital portfolio, including the selective disposal of underperforming and non-strategic subsidiaries.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">On February&#xA0;5, 2013, the Company announced the commencement of a tender offer to purchase all of its common shares held by holders of 99 or fewer shares (&#x201C;odd lots&#x201D;) who owned such shares as of the close of business on January&#xA0;31, 2013 at the price of $1.50 per share in cash (&#x201C;Odd Lot Tender Offer&#x201D;). In addition to the $1.50 per share price, the Company is offering each eligible tendering holder a bonus of $100 upon completion of the Odd Lot Tender Offer for the tender of all shares&#xA0;beneficially owned by such holder which are received&#xA0;and not withdrawn prior to the date of expiration of the Odd Lot Tender Offer, currently March&#xA0;12, 2013. If all odd lot shareholders tender their shares, SunLink estimates the aggregate cost of the Offer would be approximately $199, including an estimated aggregate purchase price for the odd lot shares of approximately $18, estimated aggregate bonus payments of approximately $38 and estimated fees and expenses of approximately $143. The primary purpose of the Offer is to reduce the number of holders of record of the Company&#x2019;s common shares in order to permit the Company to deregister the common shares with the SEC. The Company&#x2019;s Board and management each believes that deregistering the Company&#x2019;s common shares will result in significant cost savings. The Offer represents a mechanism to provide odd lot shareholders, if they so elect, with the opportunity to tender all or a portion of their shares and, thereby, receive a return of capital without the usual costs associated with open market transactions.</font></p> <!-- xbrl,n --></div>
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177000
CY2012Q4 us-gaap Current State And Local Tax Expense Benefit
CurrentStateAndLocalTaxExpenseBenefit
419000
CY2012Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
-974000
CY2012Q4 us-gaap Discontinued Operation Income Loss From Discontinued Operation Before Income Tax
DiscontinuedOperationIncomeLossFromDiscontinuedOperationBeforeIncomeTax
196000
CY2012Q4 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.42
CY2012Q4 us-gaap Cost Of Goods Sold Depreciation And Amortization
CostOfGoodsSoldDepreciationAndAmortization
989000
CY2012Q4 us-gaap Interest Expense
InterestExpense
647000
CY2012Q4 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
0
CY2012Q4 us-gaap Defined Benefit Plan Interest Cost
DefinedBenefitPlanInterestCost
17000
CY2012Q4 us-gaap Income Loss From Continuing Operations Per Basic Share
IncomeLossFromContinuingOperationsPerBasicShare
-0.15
CY2012Q4 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
104000
CY2012Q4 ssy Discontinued Operation Income Tax Expense Benefit
DiscontinuedOperationIncomeTaxExpenseBenefit
3228000
CY2012Q4 us-gaap Cost Of Goods Sold
CostOfGoodsSold
6529000
CY2012Q4 us-gaap Other Cost And Expense Operating
OtherCostAndExpenseOperating
3976000
CY2012Q4 us-gaap Net Income Loss
NetIncomeLoss
3935000
CY2012Q4 us-gaap Other Expenses
OtherExpenses
1024000
CY2012Q4 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest
-1395000
CY2012Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.42
CY2012Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
9446000 shares
CY2012Q4 us-gaap Cost Of Services
CostOfServices
1896000
CY2012Q4 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
3935000
CY2012Q4 us-gaap Disposal Group Including Discontinued Operation Revenue
DisposalGroupIncludingDiscontinuedOperationRevenue
4684000
CY2012Q4 us-gaap Current Federal Tax Expense Benefit
CurrentFederalTaxExpenseBenefit
193000
CY2012Q4 us-gaap Supplies Expense
SuppliesExpense
2437000
CY2012Q4 us-gaap Revenues
Revenues
30385000
CY2012Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-226000
CY2012Q4 us-gaap Sales Revenue Net
SalesRevenueNet
27850000
CY2012Q4 us-gaap Related Party Transaction Amounts Of Transaction
RelatedPartyTransactionAmountsOfTransaction
312
CY2012Q4 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
0
CY2012Q4 us-gaap Defined Benefit Plan Expected Return On Plan Assets
DefinedBenefitPlanExpectedReturnOnPlanAssets
10000
CY2012Q4 us-gaap Income Loss From Continuing Operations Per Diluted Share
IncomeLossFromContinuingOperationsPerDilutedShare
-0.15
CY2012Q4 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
35000
CY2012Q4 us-gaap Allowance For Doubtful Accounts Receivable Period Increase Decrease
AllowanceForDoubtfulAccountsReceivablePeriodIncreaseDecrease
2712000
CY2012Q4 us-gaap Property Plant And Equipment Additions
PropertyPlantAndEquipmentAdditions
417000
CY2012Q4 us-gaap Defined Benefit Plan Amortization Of Prior Service Cost Credit
DefinedBenefitPlanAmortizationOfPriorServiceCostCredit
27000
CY2012Q4 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
24000
CY2012Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-1621000
CY2012Q4 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
458000
CY2012Q4 us-gaap Labor And Related Expense
LaborAndRelatedExpense
13386000
CY2012Q4 ssy Defined Benefit Plan Net Periodic Benefit Costs
DefinedBenefitPlanNetPeriodicBenefitCosts
34000
CY2012Q4 ssy Provision For Doubtful Accounts And Sales Return
ProvisionForDoubtfulAccountsAndSalesReturn
2535000
CY2012Q4 ssy Expenses On Physician Guarantees And Recruitment
ExpensesOnPhysicianGuaranteesAndRecruitment
20000
CY2012Q4 ssy Financing Costs And Expenses
FinancingCostsAndExpenses
2710000
CY2012Q4 ssy Net Revenue Related To Settlements And Filings Of Prior Year Reports
NetRevenueRelatedToSettlementsAndFilingsOfPriorYearReports
27000

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