SunLink Health Systems, Inc. Announces Fiscal 2007 First Quarter Results.ATLANTA -- SunLink Health Systems, Inc. (AMEX AMEX See: American Stock Exchange : SSY SSY Simpson Spence Young (Hong Kong shipbrokers) SSY Siddha Samadhi Yoga SSY Scottish Socialist Youth ) today announced earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for its fiscal quarter ended September 30, 2006 of $468,000, or $0.06 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to earnings from continuing operations of $1,084,000, or $0.14 per fully diluted share, for the quarter ended September 30, 2005. SunLink reported net earnings of $550,000, or $0.07 per fully diluted share for the quarter ended September 30, 2006, compared to net earnings of $1,103,000, or $0.14 per fully diluted share for the comparable quarter a year ago. The company's operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. from continuing operations for the quarter ended September 30, 2006 was $1,062,000 compared to an operating profit for the quarter ended September 30, 2005 of $1,945,000. Reduced operating profit from continuing operations for the quarter ended September 30, 2006 was due in part to $720,000 of positive prior year third-party payor settlements for last year's quarter compared to $45,000 of positive prior year third-party payor settlements in this current year's quarter. Higher costs of salaries, wages and benefits and provision for bad debts in the current year's quarter also contributed to the lower operating profit. Results for the 2007 first quarter benefited from an approximately $967,000 reduction of expense due to reducing the actuarially-determined liability for professional liability risks. Consolidated net revenues from continuing operations for the quarters ended September 30, 2006 and 2005 were $34,483,000 and $33,899,000, respectively, an increase of 1.7% in the current year. The increased net revenues resulted primarily from a $246,000 increase in revenues from state indigent indigent 1) n. a person so poor and needy that he/she cannot provide the necessities of life (food, clothing, decent shelter) for himself/herself. 2) n. one without sufficient income to afford a lawyer for defense in a criminal case. care programs, a 1.3% increase in equivalent admissions and a 0.4% increase in net revenues per equivalent admission. Robert M. Thornton, Jr., SunLink's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "Since July 1, 2005, we have recruited 16 net new physicians and spent approximately $9,500,000 for capital improvements, primarily new and replacement equipment. Although we continue to be challenged by volume and bad debt issues, we have focused our efforts on physician recruiting and internal capital improvements which we believe will position our hospitals for future growth." SunLink Health Systems, Inc. currently operates seven 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. For additional information on SunLink Health Systems, Inc., please visit the company's website at www.sunlinkhealth.com. The company will conduct a conference call on November 8, 2006 at 11:30 a.m. Eastern Time to discuss its quarterly results. To participate in the conference call, please dial 1-866-814-8482. A replay of the call will be available shortly after the call and will continue to be available for 90 days by dialing 1-888-266-2081 and entering passcode 994456 when prompted. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended June 30, 2006 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov. [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion