SunLink(US:SSY)2024-09-30 18:38Revenue and Income - Revenue sources for the year ended June 30, 2024, included Medicare at 44.8%, Medicaid at 20.4%, and commercial insurance and other sources at 34.8%[117] - A 1% change in net revenues during fiscal year 2024 would result in an after-tax income change of approximately $324,000 or diluted earnings per share of $0.05[115] - If the overall estimated contractual discount percentage on commercial revenues during 2024 were changed by 1%, the after-tax income from continuing operations would change by approximately $40,000[117] - Net revenues for the fiscal year ended June 30, 2024, were $32,440, a decrease of 5.4% from $34,280 in 2023[124] - The company reported a net loss of $1,527 for the year ended June 30, 2024, compared to a net loss of $1,795 for the year ended June 30, 2023, indicating a reduction in loss of approximately 15%[136] Operating Performance - Operating loss for the fiscal year ended June 30, 2024, was $2,411 compared to an operating profit of $74 in 2023, representing an increase in loss of $2,485[127] - Total scripts filled increased by 6.0%, while Durable Medical Equipment (DME) sales orders decreased by 5.2% for the year ended June 30, 2024[125] - Retail pharmacy sales decreased by 14.2% for the year ended June 30, 2024, due to a 12.0% decrease in per script net revenues[125] - Institutional pharmacy sales increased by 2.2% for the year ended June 30, 2024, due to a 9.7% increase in per script net revenues[125] - Net revenues from discontinued operations decreased to $7,980 in fiscal year 2024 from $13,690 in fiscal year 2023, representing a decline of approximately 41%[135] - Operating loss from discontinued operations improved to a loss of $2,142 in fiscal year 2024 compared to a loss of $2,536 in fiscal year 2023[135] Cost and Expenses - Cost of goods sold as a percentage of net revenues increased to 56.3% in 2024 from 54.2% in 2023[126] - Salaries, wages, and benefits as a percentage of net revenues increased to 32.6% in 2024 from 29.6% in 2023[126] Cash Flow and Liquidity - The company has unrestricted cash on hand of $7,170 as of June 30, 2024, which is the primary source of liquidity for operational needs[137] - The company anticipates funding capital expenditures primarily from cash on hand, with no estimate for other capital expenditures expected to be lower than fiscal years 2024 and 2023[138] - The company is currently unaware of trends or uncertainties likely to cause a material change in its cash expenditures beyond the next twelve months[138] Assets and Liabilities - Intangible assets include an indefinite-lived trade name valued at $1,180 as of June 30, 2024, and 2023[118] - The reserve for professional and general liability claims as of June 30, 2024, is $333, compared to $190 in 2023[121] - Total increases for professional and general liability coverage were $569 for the year ended June 30, 2024, and $386 for 2023[121] - The company recognized a valuation allowance of $8,287 against deferred tax assets, resulting in no net long-term deferred income tax asset at June 30, 2024[129] - The company had approximately $24,458 of estimated net operating loss carry-forwards available for future use, expiring primarily between fiscal years 2025 and 2038[131] - The complexity of claims and the extended period to settle them complicate the estimation process for professional and general liability reserves[121] Insurance and Risk Management - The company has maintained insurance for individual malpractice claims exceeding a self-insured retention amount[120] - Changes in insurance costs may affect the self-insurance retention level chosen each year[120] - The reserve for professional and general liability claims reflects the current estimate of all outstanding losses, including incurred but not reported losses[120] Future Projections - Future cash flow estimates are based on assumptions regarding revenue and expense growth rates, patient volumes, and changes in payor mix[119] - The company expects to purchase approximately $1,000 of capitalizable durable medical equipment (DME) in the next twelve months[138] - An impairment loss of $1,974 was reported at December 31, 2023, to reduce the net value of the Trace hospital assets to the sale proceeds under the revised agreement[133] - The sale of the Trace Extended Care & Rehab facility generated net proceeds of approximately $6,522, which will be retained for working capital and general corporate purposes[133] - The company has no outstanding debt as of June 30, 2024[138]