ssy-10q_20220930.htm

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-12607

SUNLINK HEALTH SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Ohio

31-0621189

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

900 Circle 75 Parkway, Suite 690, Atlanta, Georgia 30339

(Address of principal executive offices)

(Zip Code)

(770) 933-7000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered Symbol(s)
Common Shares without par value	SSY	NYSE American
Preferred Share Purchase Rights

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filings requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (of for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

The number of Common Shares, without par value, outstanding as of November 14, 2022 was 7,031,603 .

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SUNLINK HEALTH SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	September 30,
	2022		June 30,
	(unaudited)		2022
ASSETS
Current Assets:
Cash and cash equivalents	$	4,951	$	6,794
Receivables - net		4,686		4,624
Inventory		1,842		1,748
Employee retention credits receivable		1,761		1,761
Prepaid expense and other assets		2,166		1,888
Total current assets		15,406		16,815
Property, plant and equipment, at cost		23,859		23,920
Less accumulated depreciation		15,377		15,703
Property, plant and equipment - net		8,482		8,217
Noncurrent Assets:
Intangible assets - net		1,195		1,201
Right of use assets		1,113		1,187
Other noncurrent assets		630		523
Total noncurrent assets		2,938		2,911
TOTAL ASSETS	$	26,826	$	27,943
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,831	$	1,347
Current maturities of long-term debt		41		40
Accrued payroll and related taxes		1,344		1,520
Accrued sales tax		2,777		2,600
Unearned CARES Act Funds		469		519
Current operating lease liabilities		354		352
Other accrued expenses		1,347		1,313
Total current liabilities		8,163		7,691
Long-Term Liabilities
Long-term debt		3		14
Noncurrent liability for professional liability risks		87		86
Long-term operating lease liabilities		780		857
Deferred income taxes		69		69
Other noncurrent liabilities		114		106
Total long-term liabilities		1,053		1,132
Commitments and Contingencies
Shareholders’ Equity
Preferred Shares, authorized and unissued, 2,000 shares		0		0
Common Shares, without par value:
Issued and outstanding, 7,032 shares at September 30, 2022 and 6,954 at June 30, 2022		3,516		3,478
Additional paid-in capital		10,746		10,736
Retained earnings

SEC Form 10-Q filed by SunLink Health Systems Inc.