Mon, Sep 30, 6:39 PM (90 days ago)
SunLink Health Systems, Inc. reported a net loss of $1,527 for the fiscal year ended June 30, 2024, compared to a loss of $1,795 in the previous year. Net revenues decreased by 5.4% to $32,440, driven by reduced pharmacy sales, particularly in retail pharmacy, which fell by 14.2%. Operating expenses rose, resulting in an operating loss of $2,411, compared to a profit of $74 in 2023. The company’s cost of goods sold increased to 56.3% of revenues, primarily due to decreased sales and increased labor costs. SunLink's pharmacy operations heavily rely on Medicare and Medicaid, accounting for approximately 67% of revenues. The company continues to face challenges from the aftereffects of the COVID-19 pandemic, including labor shortages and supply chain disruptions. Strategically, SunLink is pursuing asset sales, including the sale of the Trace Regional Hospital and related facilities, to enhance liquidity. The completion of these transactions is uncertain, with a potential impairment loss of $1,974 recorded. Future outlook remains cautious, with significant risks from regulatory changes and economic conditions affecting healthcare spending.