Atlanta, Georgia (September 9, 2002) - SunLink Health Systems, Inc. (AMEX: SSY) today announced net earnings of $56,000 or $0.01 per share for the quarter ended June 30, 2002, which included a loss from discontinued operations of $62,000, compared to a net loss of $4,316,000 or $0.87 per share for the quarter ended June 30, 2001, which included a loss from discontinued operations of $3,997,000 or $0.81 per share. The loss from discontinued operations for the quarter ended June 30, 2001 included losses of $3,989,000 for the discontinued housewares segment whose operating subsidiary, Beldray Limited, was sold October 5, 2001.
SunLink reported earnings from continuing operations for its fourth fiscal quarter ended June 30, 2002 of $118,000 or $0.02 per share compared to a loss of $319,000 or $0.06 per share for the quarter ended June 30, 2001. The Company's operating profit for the quarter ended June 30, 2002 was $1,022,000 (before net interest expense of $778,000 and income tax expense of $126,000) compared to an operating profit for the quarter ended June 30, 2001 of $323,000 (before net interest expense of $642,000). Included in the operating profit for the quarter ended June 30, 2002 were favorable reimbursement settlements of $449,000.
Consolidated net revenues for the three months ended June 30, 2002 and 2001 were $22,086,000 and $20,527,000, respectively. The increased net revenue in the current year resulted from increased equivalent admissions, increased surgeries and the favorable reimbursement settlements.
The Corporation purchased six community hospitals and related businesses on February 1, 2001 and changed its fiscal year end from March 31 to June 30 on August 20, 2001. Consolidated net revenues for the fiscal year ended June 30, 2002 were $87,457,000. Net revenues for the five months ended June 30, 2001 were $34,166,000. Net earnings for the fiscal year ended June 30, 2002 were $833,000 or $0.17 per share which included earnings from discontinued operations of $931,000 or $0.19 per share. The Company reported a loss from continuing operations for the year ended June 30, 2002 of $98,000 or $0.02 per share composed of an operating profit of $2,979,000, offset by net interest expense of $2,951,000 and income tax expense of $126,000.
SunLink Health Systems, Inc. operates six community hospitals and related businesses in the southeast and midwest. Each SunLink facility is the only hospital in its community. SunLink's operating strategy is to link patients' needs with dedicated physicians and health professionals to deliver quality, efficient medical care in each community it serves. The Company changed its name to SunLink Health Systems, Inc. from KRUG International Corp. in August 2001.
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 March 31, 2001.
The Company will conduct a conference call on Tuesday September 10, 2002 at 11:00 a.m. Eastern Time to discuss its quarterly results. To participate in the conference call, please call 1-800-243-6403. A replay of the call will be available shortly after the call and will continue to be available for 30 days at 1-800-839-6713.
Go to Annual Results
