SunLink Health Systems' fiscal year ended June 30, 2009 and fourth-quarter results announced

SunLink Health Systems, Inc. (NYSE Amex: SSY) today announced earnings from continuing operations for its fourth fiscal quarter ended June 30, 2009 of $850,000, or $0.11 per fully diluted share, compared to earnings from continuing operations of $579,000, or $0.07 per fully diluted share, for the quarter ended June 30, 2009. For the fiscal year ended June 30, 2009, SunLink reported earnings from continuing operations of $1,067,000, or $0.13 per fully diluted share, compared to earnings of $2,009,000, or $0.26 per fully diluted share, for the fiscal year ended June 30, 2008.

SunLink reported net earnings of $891,000, or $0.11 per fully diluted share, for the quarter ended June 30, 2009, compared to net earnings of $427,000, or $0.05 per fully diluted share, for the comparable quarter a year ago. For the fiscal year ended June 30, 2009, SunLink reported net earnings of $912,000, or $0.11 per fully diluted share compared to net earnings of $1,616,000, or $0.21 per share, for the fiscal year ended June 30, 2008.

Consolidated net revenues for the quarters ended June 30, 2009 and 2008 were $49,255,000 and $43,819,000, respectively, an increase of 12.4% for the fourth fiscal quarter. SunLink’s Specialty Pharmacy segment, which began business when it acquired Carmichael’s Cashway Pharmacy, Inc. on April 22, 2008, added $10,599,000 of net revenue for the quarter ended June 30, 2009 compared to $7,059,000 last year. The Healthcare Facilities segment net revenues for the quarter ended June 30, 2009 was $38,656,000 compared to $36,760,000 for the comparable quarter a year ago. The most recent fourth quarter’s results included an aggregate of $775,000 from state indigent care programs and positive prior year third-party payor settlements compared to $1,612,000 in the quarter ended June 30, 2008. Consolidated net revenues for the fiscal year ended June 30, 2009 increased by 25.8% to $199,254,000 compared to $158,431,000 in the comparable period a year ago. The Specialty Pharmacy segment had $47,329,000 of net revenue for the year ended June 30, 2009 compared to $7,059,000 for the prior fiscal year. The Healthcare Facilities segment net revenues for the fiscal year ended June 30, 2009 were $151,925,000 compared to $151,372,000 for the fiscal year ended June 30, 2008.

The company’s operating profit for the quarter ended June 30, 2009 was $2,354,000, or 4.8% of net revenues, compared to an operating profit for the quarter ended June 30, 2008 of $1,679,000, or 3.8% of net revenues. Operating profit as a percentage of net revenues increased in the fiscal year ended June 30, 2009 due to operating profit added by the Specialty Pharmacy segment. Operating profit for the fiscal year ended June 30, 2009 was $5,679,000, or 2.9% of net revenues, compared to $5,405,000, or 3.4% of net revenues, for the fiscal year ended June 30, 2008. Adjusted EBITDA (a non-GAAP measure of the liquidity of the company) at SunLink’s Healthcare Facilities segment for the fourth fiscal quarter increased to $4,005,000 from $3,867,000 in the comparable quarter a year ago. Adjusted EBITDA for SunLink’s Specialty Pharmacy segment was $1,205,000 in the fourth fiscal quarter compared to $821,000 in the comparable quarter a year ago which included Specialty Pharmacy results for 71 days.