SunLink(US:SSY)2024-11-12 20:06Financial Performance - Net revenues for the three months ended September 30, 2024, were $7,923,000, a decrease of 7.4% from $8,555,000 in the same period of 2023[62]. - Pharmacy net revenues decreased by $632,000 or 7% compared to the same period last fiscal year, attributed to lower retail pharmacy scripts filled and lower durable medical equipment orders shipped[64]. - Operating loss for the three months ended September 30, 2024, was $1,194,000, a significant increase of 165.3% from a loss of $450,000 in the same period of 2023[62]. - Loss from continuing operations before income taxes was $442,000 for the three months ended September 30, 2024, compared to a loss of $426,000 in the same period of 2023, representing a 3.8% increase[62]. - The company's net loss for the three months ended September 30, 2024, was $549, or a loss of $0.08 per fully diluted share, compared to a net loss of $1,344, or a loss of $0.19 per fully diluted share for the same period in 2023[78]. - The loss from discontinued operations after income taxes was $107 for the quarter ended September 30, 2024, compared to a loss of $916 for the same period in 2023[73]. Costs and Expenses - Costs and expenses for the three months ended September 30, 2024, were $9,117,000, compared to $9,005,000 in 2023, reflecting a 1.2% increase[65]. - The cost of goods sold as a percentage of net revenues increased to 56.5% in Q3 2024 from 55.8% in Q3 2023, while salaries, wages, and benefits rose to 38.9% from 30.6%[66]. Asset Sales and Gains - The company recorded a gain of $694,000 on the sale of assets during the three months ended September 30, 2024[62]. - The company completed the sale of the Trace Extended Care Facility for approximately $7,100,000, resulting in net proceeds of approximately $6,522,000 retained for working capital[59]. - The company recorded a gain of $5,584 during the fiscal year ended June 30, 2024, from the sale of the Trace Extended Care Facility, with net proceeds of approximately $6,522 retained for working capital[75]. - The company sold its minority equity ownership investment in a subsidiary for cash of $1,064, resulting in a pre-tax gain of $665 for the quarter ended September 30, 2024[68]. Cash and Liquidity - The company expects to use existing cash primarily to sustain operations and fund activities related to extraordinary transactions when available[59]. - The company had unrestricted cash on hand of $7,529 at September 30, 2024, and expects to receive approximately $1,932 from the sale of Trace Real Estate on October 9, 2024[79]. Future Expectations and Investments - The company anticipates purchasing approximately $800 of capitalizable durable medical equipment (DME) over the next twelve months, subject to demand and supply challenges[82]. - Contractual obligations related to noncancelable operating leases at September 30, 2024, totaled $488, with $339 due within one year[81]. Operational Metrics - Institutional pharmacy scripts filled increased by 10% in the three months ended September 30, 2024, compared to the same period in 2023[64]. - The company recorded a loss of $962,000 on the Trace Hospital Assets Sale during the year ended June 30, 2024[59]. - For the three months ended September 30, 2024, the company reported an operating loss of $1,194, compared to an operating loss of $450 for the same period in 2023, attributed to a 7% decrease in net revenues[67]. - The company recognized a valuation allowance of $8,183 against deferred tax assets as of September 30, 2024, indicating that it is unlikely to realize these assets due to historical tax losses[71].