Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 26, 2019 | Dec. 31, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SSY | ||
Entity Registrant Name | SUNLINK HEALTH SYSTEMS INC | ||
Entity Central Index Key | 0000096793 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 6,986,855 | ||
Entity Public Float | $ 4,884,050 | ||
Entity File Number | 1-12607 | ||
Entity Tax Identification Number | 310621189 | ||
Entity Address, Address Line One | 900 Circle 75 Parkway | ||
Entity Address, Address Line Two | Suite 1120 | ||
Entity Address, City or Town | Atlanta | ||
Entity Address, State or Province | Georgia | ||
Entity Address, Postal Zip Code | 30339 | ||
City Area Code | 770 | ||
Local Phone Number | 933-7000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 7,742 | $ 3,456 |
Receivables—net | 4,715 | 4,823 |
Inventory | 2,016 | 1,854 |
Prepaid expenses and other assets | 2,185 | 2,977 |
Total current assets | 16,658 | 13,110 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 273 | 754 |
Buildings and improvements | 5,429 | 5,823 |
Equipment and fixtures | 13,818 | 13,290 |
Property, plant and equipment, at cost | 19,520 | 19,867 |
Less accumulated depreciation | 14,277 | 13,971 |
Property, plant and equipment—net | 5,243 | 5,896 |
NONCURRENT ASSETS: | ||
Intangible assets—net | 1,353 | 1,470 |
Income tax receivable | 153 | 305 |
Assets held for sale | 249 | 4,510 |
Other noncurrent assets | 763 | 885 |
Total noncurrent assets | 2,518 | 7,170 |
TOTAL ASSETS | 24,419 | 26,176 |
CURRENT LIABILITIES: | ||
Accounts payable | 1,564 | 1,239 |
Current maturities of long-term debt, net of debt issuance costs | 2,836 | 255 |
Accrued payroll and related taxes | 1,960 | 1,959 |
Accrued sales tax payable | 843 | 241 |
Other accrued expenses | 1,207 | 1,157 |
Total current liabilities | 8,410 | 4,851 |
LONG-TERM LIABILITIES: | ||
Long-term debt, net of debt issuance costs | 127 | 2,803 |
Noncurrent liability for professional liability risks | 705 | 996 |
Other noncurrent liabilities | 134 | 340 |
Total long-term liabilities | 966 | 4,139 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred Shares, authorized and unissued, 2,000 shares | 0 | 0 |
Common Shares, no par value; authorized, 12,000 shares; issued and outstanding, 6,987 shares at June 30, 2019 and 7,347 shares at June 30, 2018 | 3,493 | 3,673 |
Additional paid-in capital | 10,745 | 10,947 |
Retained earnings | 1,058 | 2,743 |
Accumulated other comprehensive loss | (253) | (177) |
Total Shareholders’ Equity | 15,043 | 17,186 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 24,419 | $ 26,176 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, authorized | 2,000,000 | 2,000,000 |
Preferred shares, unissued | 2,000,000 | 2,000,000 |
Common shares, without par value | ||
Common shares, authorized | 12,000,000 | 12,000,000 |
Common shares, issued | 6,987,000 | 7,347,000 |
Common shares, outstanding | 6,987,000 | 7,347,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Earnings and Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Revenues | $ 45,618 | $ 45,209 |
Costs and expenses: | ||
Cost of goods sold | 18,529 | |
Salaries, wages and benefits | 19,191 | 18,610 |
Supplies | 1,241 | 1,238 |
Other operating expenses | 3,895 | 3,657 |
Rent and lease expense | 609 | 615 |
Impairments | 129 | 0 |
Depreciation and amortization | 1,486 | 1,531 |
Electronic Health Records incentive payments | (68) | (21) |
Operating loss | (2,314) | (1,112) |
Other income (expense): | ||
Gain on economic damages claim, net | 22 | 944 |
Interest expense, net | (241) | (359) |
Loss on extinguishment of debt—net | 0 | (238) |
Gain on sale of assets—net | 455 | 194 |
Loss from continuing operations before income taxes | (2,078) | (571) |
Income tax benefit | (82) | (345) |
Loss from continuing operations | (1,996) | (226) |
Earnings (loss) from discontinued operations, net of income taxes | 242 | (1,367) |
Net loss | (1,754) | (1,593) |
Other comprehensive income (loss) | (76) | 150 |
Comprehensive loss | $ (1,830) | $ (1,443) |
Continuing operations: | ||
Basic | $ (0.28) | $ (0.03) |
Diluted | (0.28) | (0.03) |
Discontinued operations: | ||
Basic | 0.03 | (0.17) |
Diluted | 0.03 | (0.17) |
Net loss: | ||
Basic | (0.25) | (0.19) |
Diluted | $ (0.25) | $ (0.19) |
Weighted-average common shares outstanding: | ||
Basic | 7,149 | 8,283 |
Diluted | 7,149 | 8,283 |
Product [Member] | ||
Costs and expenses: | ||
Cost of goods sold | $ 18,941 | $ 18,529 |
Service [Member] | ||
Costs and expenses: | ||
Cost of goods sold | $ 2,508 | $ 2,162 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Jun. 30, 2017 | $ 21,693 | $ 4,581 | $ 13,103 | $ 4,336 | $ (327) |
Beginning Balance,Shares at Jun. 30, 2017 | 9,163 | ||||
Net loss | (1,593) | $ 0 | 0 | (1,593) | 0 |
Minimum pension liability adjustment, net of tax | 150 | 0 | 0 | 0 | 150 |
Share-based compensation | 8 | $ 0 | 8 | 0 | 0 |
Share-based compensation, shares | 0 | ||||
Shares repurchased | (3,072) | $ (908) | (2,164) | 0 | 0 |
Shares repurchased, shares | (1,816) | ||||
Ending Balance at Jun. 30, 2018 | $ 17,186 | $ 3,673 | 10,947 | 2,743 | (177) |
Ending Balance, Shares at Jun. 30, 2018 | 7,347,000 | 7,347 | |||
Net loss | $ (1,754) | $ 0 | 0 | (1,754) | 0 |
Minimum pension liability adjustment, net of tax | (7) | 0 | 0 | 0 | (7) |
Adoption of ASU 2018-02 | 0 | 0 | 0 | 69 | (69) |
Share-based compensation | 1 | $ 0 | 1 | 0 | 0 |
Share-based compensation, shares | 0 | ||||
Shares repurchased | $ (383) | $ (180) | (203) | 0 | 0 |
Shares repurchased, shares | (359,959) | (360) | |||
Ending Balance at Jun. 30, 2019 | $ 15,043 | $ 3,493 | $ 10,745 | $ 1,058 | $ (253) |
Ending Balance, Shares at Jun. 30, 2019 | 6,987,000 | 6,987 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Minimum pension liabilities net adjustment tax | $ 0 | $ 103 |
Accumulated Other Comprehensive Loss [Member] | ||
Minimum pension liabilities net adjustment tax | $ 0 | $ 103 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (1,754) | $ (1,593) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,728 | 1,858 |
Share-based compensation | 1 | 8 |
Impairments | 129 | 0 |
Gain (loss) on sale of business | (2,136) | 113 |
Gain on disposal of property, plant and equipment | (455) | (194) |
Change in assets and liabilities: | ||
Receivables | 108 | 1,083 |
Inventory | (162) | 132 |
Prepaid expenses and other assets | 1,049 | 12 |
Accounts payable and accrued expenses | 1,190 | (391) |
Third-party payor settlements | (218) | (368) |
Net activities of discontinued operations | (907) | (264) |
Net cash provided by (used in) operating activities | (1,427) | 396 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of Parkside | 6,899 | 0 |
Proceeds from sale of property, plant & equipment | 937 | 425 |
Expenditures for property, plant and equipment—continuing operations | (1,272) | (1,132) |
Expenditures for property, plant and equipment—discontinued operations | (172) | (729) |
Net cash provided by (used in) investing activities | 6,392 | (1,436) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common shares | (383) | (3,072) |
Receipt of restricted cash | 0 | 1,000 |
Payment of long-term debt – continuing operations | (296) | (3,926) |
Net cash used in financing activities | (679) | (5,998) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,286 | (7,038) |
CASH AND CASH EQUIVALENTS: | ||
Beginning of year | 3,456 | 10,494 |
End of year | 7,742 | 3,456 |
Cash paid for: | ||
Income taxes | 0 | 0 |
Interest | 222 | 319 |
Parkside [Member] | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Gain (loss) on sale of business | (2,136) | 0 |
Chestatee [Member] | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Gain (loss) on sale of business | $ 0 | $ 113 |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | SUNLINK HEALTH SYSTEMS, INC. AND SUBSIDIARIES SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (amounts in thousands) Column A Column B Column C Column D Column E Allowance for Doubtful Accounts Balance at Beginning Of Year Charged to Cost and Expenses Currency Translation/ Acquisition/ (Disposition) Deductions from Reserves Balance at End of Year Year Ended June 30, 2019 $ 529 $ 807 $ — $ (821 ) $ 515 Year Ended June 30, 2018 $ 552 $ 1,212 $ — $ (1,235 ) $ 529 Deferred Income Tax Asset Valuation Allowance Balance at Beginning Of Year Charged to Cost and Expenses/ (Benefit) Currency Translation/ Acquisition/ (Disposition) Deductions from Reserves Balance at End of Year Year Ended June 30, 2019 $ 8,373 $ 252 $ — $ — $ 8,625 Year Ended June 30, 2018 $ 11,120 $ (2,747 ) $ — $ — $ 8,373 |
Business Operations
Business Operations | 12 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Operations | 1. BUSINESS OPERATIONS SunLink Health Systems, Inc., through subsidiaries (“SunLink”, “we”, “our”, “ours”, “us” or the “Company”), owns businesses which are providers of healthcare services in certain markets in the United States. SunLink’s business is composed of the ownership of two business segments: Healthcare Services • A subsidiary which owns and operates Trace Regional Hospital and Floy Dyer Nursing Home (“Trace”), an 84 licensed-bed acute care hospital, located in Houston, Mississippi, which includes an 18-bed geriatric psychology unit (“GPU”), and a 66-bed nursing home. This facility focuses primarily on senior healthcare services. • A subsidiary which owns a medical building and approximately four (4) acres of land in Clanton, Alabama. A portion of the medical office building is currently partially rented to two tenants. • A subsidiary which owns twelve (12) acres of unimproved land in Fulton, Missouri • A subsidiary which owns approximately five (5) acres of unimproved land in Houston, Mississippi • A subsidiary, SunLink Health Systems Technology (SHS Technology), which provides information technology (IT) to outside customers and to SunLink subsidiaries. Pharmacy The Pharmacy segment, which is composed of four operational areas: • Retail pharmacy products and services, consisting of retail pharmacy sales conducted in rural markets at two locations in Louisiana • Institutional pharmacy services consisting of the provision of specialty and non-specialty pharmaceutical and biological products to institutional clients or to patients in institutional settings, such as nursing homes, assisted living facilities, behavioral and specialty hospitals, hospice, and correctional facilities. • Non-institutional Pharmacy services consisting of the provision of specialty and non-specialty pharmaceutical and biological products to clients or patients in non-institutional settings including private residential homes. • Durable medical equipment products and services (“DME”), consisting primarily of the sale and rental of products for institutional clients or to patients in institutional settings and patient-administered home care. SunLink subsidiaries have conducted the Healthcare Services business since 2001 and the Pharmacy operations since 2008. Our Pharmacy segment currently is operated through Carmichael’s Cashway Pharmacy, Inc. (“Carmichael”), a subsidiary of our SunLink ScriptsRx, LLC subsidiary. Throughout these notes to the consolidated financial statements, SunLink Health Systems, Inc., and its consolidated subsidiaries are referred to on a collective basis as “SunLink”, “we”, “our”, “ours”, “us” or the “Company.” This drafting style is not meant to indicate that the publicly traded Company or any particular subsidiary of the Company owns or operates any asset, business or property. The Trace, pharmacy operations and businesses described in this filing are owned and operated by distinct and indirect subsidiaries of SunLink Health System, Inc. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation — The consolidated financial statements include the accounts of SunLink and its subsidiaries. All significant intercompany transactions and balances have been eliminated. Management Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates made by management involve reserves for adjustments to net patient service revenues, evaluation of the recoverability of assets, including accounts receivable and intangible assets, and the assessment of litigation and contingencies, including income taxes and related tax asset valuation allowances, all as discussed in more detail in the remainder of these notes to the consolidated financial statements. Actual results could differ materially from these estimates. Net Patient Service Revenue — Effective July 1, 2018, the Company adopted the provisions of Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” (“ASC 606”), which supersedes most existing revenue recognition guidance, including industry-specific healthcare guidance, by applying the full retrospective method for all periods presented. ASC 606 provides for a single comprehensive principles-based standard for the recognition of revenue across all industries through the application of the following five-step process: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of the provisions of ASC 606 had no material impact on the Company’s current or historical financial position, results of operations or cash flows. Additionally, management does not anticipate that the provisions of ASC 606 will have a material impact on the amount or timing of when the Company recognizes revenue prospectively. However, in accordance with ASC 606, the Company now recognizes the majority of its previously reported provision for doubtful accounts, primarily related to its self-pay patient population, as a direct reduction to revenues as an implicit pricing concession, instead of separately as a discrete deduction to arrive at revenue, and the related presentation of the allowance for doubtful accounts has been eliminated for all periods presented. Subsequent material events that alter the payor’s ability to pay are recorded as bad debt expense. The Company’s revenue recognition and accounts receivable policies are more fully described in Note 5. SunLink’s subsidiaries have agreements with third-party payors that provide for payments at amounts different from established charges. Payment arrangements vary and include prospectively determined rates per discharge, reimbursed costs, discounted charges and per diem payments. Patient service revenues are reported as services are rendered at the estimated net realizable amounts from patients, third-party payors, and others. Estimated net realizable amounts are estimated based upon contracts with third-party payors, published reimbursement rates, and historical reimbursement percentages pertaining to each payor type. Estimated reductions in revenues to reflect agreements with third-party payors and estimated retroactive adjustments under such reimbursement agreements are accrued during the period the related services are rendered and are adjusted in future periods as interim and final settlements are determined. Significant changes in reimbursement levels for services under government and private programs could significantly impact the estimates used to accrue such revenue deductions. At June 30, 2019, there were no material claims or disputes with third-party payors. Charity Care —SunLink’s subsidiary hospital provides care to patients who meet certain criteria under its charity care policy without charge or at amounts less than its established rates. Because SunLink subsidiaries do not pursue collection of amounts determined to qualify as charity, they are not reported as revenue. SunLink’s subsidiary hospital provided $48 and $8, of charity care in the fiscal years ended June 30, 2019 and 2018, respectively. Concentrations of Credit Risk —SunLink’s Healthcare Services segment subsidiaries grant unsecured credit to their patients, most of who reside in the service area of the subsidiaries’ facilities and are insured under third-party agreements. Medicare and Medicaid patient accounts represent SunLink’s only significant concentrations of credit risk. For SunLink’s Healthcare Services segment, Medicare net revenues were approximately 49% and 50% of net revenues for the years ended June 30, 2019 and 2018, respectively. For SunLink’s Healthcare Services segment, Medicaid was approximately 33% and 31% net revenues for the years ended June 30, 2019 and 2018, respectively. For SunLink’s Healthcare Services segment, Medicare receivables were approximately 42% and 45% of receivables—net at June 30, 2019 and 2018, respectively, while Medicaid receivables were approximately 26% and 36% of receivables—net at June 30, 2019 and 2018, respectively. SunLink’s Pharmacy segment subsidiary grants unsecured credit to individual customers and institutional customers. Individual customers primarily are insured under third-party agreements, including Medicare and Medicaid, while the institutional customers are granted credit according to their determined credit risk. Medicare receivables were approximately 17% and 19% of the Pharmacy segment’s receivables at June 30, 2019 and 2018, respectively, while Medicaid receivables were approximately 17% and 18% of the Pharmacy segments receivable at June 30, 2019 and 2018, respectively. Approximately 66% and 63% of the Pharmacy’s net receivables at June 30, 2019 and 2018, respectively, were private insurance and institutional customers’ receivables. Net revenues for the Pharmacy segment for the fiscal year ended June 30, 2019 and 2018 were approximately 35% and 35% Medicare, respectively, and approximately 29% and 26% Medicaid, respectively. Cash and Cash Equivalents —Cash and cash equivalents consist of all funds in banks and short-term liquid investments with an original maturity of three months or less. Cash is deposited with commercial banks and at June 30, 2019 was $1,742, of which approximately $762 totaled amounts greater than the federally insured limits. At June 30, 2019, the Company’s cash equivalents were composed of $5,250 of overnight repurchase agreements and a $750 three-month certificate of deposit with a U.S. bank, of which the full balance of the certificate of deposit is greater than the federally insured limit. The Company accounts for these agreements as cash equivalents in accordance with FASB ASC 305-10-20. The investing of cash in amounts greater than the insurable limits with major well-capitalized financial institutions mitigates the risk of the deposited cash and the certificate of deposit. The overnight repurchase agreements are 102% collateralized by U. S. government backed securities with the Company’s U.S. bank. The U.S. Government backed collateralized securities are of high credit quality which mitigates any significant risk to the credit rating or interest rate risk of the agreements. Inventory —Inventory consists of medical and pharmacy supplies. Medical supplies are valued at the lower of cost or market, using the first-in, first-out method. Pharmacy supplies are stated at the lower of cost (standard cost method), or net realizable value. Use of this method does not result in a material difference from the methods required by generally accepted accounting principles in the United States of America. Allowance for Concession Adjustments —Substantially all of SunLink’s subsidiaries’ receivables result from providing healthcare services to hospital facility patients and from providing pharmacy services and products to customers. Accounts receivable are reduced by an allowance for doubtful accounts estimated to become uncollectible in the future. For the Healthcare Services segment, an allowance percentage is calculated based generally upon its historical collection experience for each type of payor. The allowance amount is computed by applying allowance percentages to receivable amounts included in specific payor categories. Significant changes in reimbursement levels for services under government and private programs could significantly impact the estimates used to determine the allowance for doubtful accounts. Accounts receivable are written off after all collection efforts have failed, normally within 120 days after the date of discharge of the patient or service to the patient or customer. For the Pharmacy segment operations, an allowance percentage is calculated based upon past credit history with customers and their current financial condition. Accounts receivable are written off against the allowance for concession adjustments when they are deemed uncollectible. Property, Plant, and Equipment —Property, plant, and equipment, including equipment subject to capital leases, is recorded at cost. Depreciation is recognized over the estimated useful lives of the assets, which range from 3 to 45 years, on a straight-line basis. Generally, furniture and fixtures are depreciated over 5 to 10 years, machinery and equipment over 10 years, and buildings over 25 to 45 years. Leasehold improvements and leased machinery and equipment are depreciated over the lease term or estimated useful life of the asset, whichever is shorter, and range from 5 to 15 years. For the Pharmacy segment, durable medical equipment is depreciated over 3 years. Expenditures for major renewals and replacements are capitalized. Expenditures for maintenance and repairs are charged to operating expense as incurred. When property items are retired or otherwise disposed of, amounts applicable to such items are removed from the related asset and accumulated depreciation accounts and any resulting gain or loss is credited or charged to income. Depreciation expense totaled $1,369 and $1,414 for the years ended June 30, 2019 and 2018, respectively. Risk Management —SunLink and its subsidiaries are exposed to various risks of loss from professional liability and other claims and casualties; theft of, damage to, and destruction of assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters (including earthquakes and hurricanes); and employee health, dental and accident benefits. Commercial insurance coverage is purchased for a portion of claims arising from such matters. When, in management’s judgment, claims are sufficiently identified, a liability is accrued for estimated costs and losses under such claims, net of estimated insurance recoveries except where applicable laws, rules or regulations require us to report the gross estimate of potential or estimated losses. The recorded liability for professional liability risks includes an estimate of liability for claims assumed at the acquisition and for claims incurred after the acquisition of a business. These amounts are based on actuarially determined estimates. The Company self-insures for workers’ compensation risk. The estimated liability for workers’ compensation risk includes estimates of the ultimate costs for both reported claims and claims incurred but not reported. The Company is also self-insured for employee health risks. The estimated liability for employee health risk includes estimates of the ultimate costs for both reported claims and claims incurred but not reported. The Company accrues an estimate of losses resulting from workers’ compensation and professional liability claims to the extent they are not covered by insurance. These accruals are estimated quarterly based upon management’s review of claims reported and historical loss data. The Company records a liability pertaining to pending litigation if it is probable a loss has been incurred and accrues the most likely amount of loss based on the information available. If no amount within the range of losses estimated from the information available is more likely than any other amount in the range of loss, the minimum amount in the range of loss is accrued. Because of uncertainties surrounding the nature of litigation and the ultimate liability to SunLink and its subsidiaries, if any, estimates are revised as additional facts become known. Long-lived Assets —SunLink and its subsidiaries periodically assesses the recoverability of assets based on its expectations of future profitability and the undiscounted cash flows of the related operations and, when circumstances dictate, adjust the carrying value of the asset to estimated fair value. These factors, along with management’s plans with respect to the operations, are considered in assessing the recoverability of long-lived assets. Goodwill and Intangibles —Goodwill represents the cost of acquired businesses in excess of fair value of identifiable tangible and intangible net assets purchased. Goodwill has an indefinite life and is not subject to periodic amortization. However, goodwill is tested at least annually for impairment, using a fair value methodology, in lieu of amortization. Definite-life intangible assets are amortized on a straight-line basis over their estimated useful lives, generally for periods ranging from 2 to 30 years. SunLink and its subsidiaries evaluate the reasonableness of the useful lives of intangible assets and they are tested for impairment as conditions warrant. Income Taxes —SunLink accounts for income taxes using an asset and liability approach and the recognition of deferred tax assets and liabilities for expected future tax consequences. SunLink considers all expected future events other than proposed enactments of changes in the income tax law or rates. When management determines that it is more likely than not that a portion of or none of the net deferred tax asset will be realized through future taxable earnings or implementation of tax planning strategies, management provides a valuation allowance for the portion not expected to be realized. Share-Based Compensation —The Company issues common share options to key employees and directors under various shareholder-approved plans. Share-based compensation expense of $1 and $8 for the fiscal years ended June 30, 2019 and 2018, respectively, was recorded in salaries, wages and benefits expense for share options issued to employees and directors of the Company. The fair value of the share options was estimated using the Black-Scholes option pricing model. The historical volatility is used to calculate the estimated volatility in this model. Fair Value of Financial Instruments —The recorded values of cash, receivables, and payables approximate their fair values because of the relatively short maturity of these instruments. Similarly, the fair value of long-term debt is estimated to approximate the recorded value due to its current variable interest rate. Fair Value Measurements —Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company utilizes the U.S. Generally Accepted Accounting Principles (“GAAP”) fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumption about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The inputs used to measure fair value are classified into the following fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 includes values determined using pricing models, discounted cash flow methodologies, or similar techniques reflecting the Company’s own assumptions. In instances where the determination of the fair value hierarchy measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment of factors specific to the asset or liability. Earnings (Loss) per Share —Earnings (loss) per common share is based on the weighted-average number of common shares and dilutive common share equivalents outstanding for each period presented, including vested and unvested shares issued under SunLink’s 2005 Equity Incentive Plan, and the 2011 Director Stock Option Plan. Common share equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. Instead of a two-step impairment model, if the carrying amount of a reporting unit exceeds its fair value as determined in step one of the impairment test, an impairment loss is measured at the amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This ASU is effective for any interim or annual impairment tests for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is evaluating what impact it will have on its consolidated financial position and results of operations. In March 2017, the FASB issued ASU 2017-07, which changes the presentation of the components of net periodic benefit cost for sponsors of defined benefit plans for pensions. Under the changes in this ASU, the service cost component of net periodic benefit cost will be reported in the same Statement of Operations and Comprehensive Earnings and Loss line as other employee compensation costs arising from services during the reporting period. The other components of net periodic benefit cost will be presented separately in a line item outside of operating income. This ASU was effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company adopted this ASU on July 1, 2018. The Company has only one defined benefit plan for pension which is frozen for new participants and the cost of the plan is reported in discontinued operations. Since the changes required in this new ASU only change the income statement classification of the components of net periodic benefit cost, no changes to the presentation of income from continuing operations nor net income was required. In May 2014, the FASB issued ASU 2014-9, “Revenue from Contracts with Customers”, along with subsequent amendments, updates and an extension of the effective date (collectively, the “New Revenue Standard” or “ASC 606”), which supersedes most existing revenue recognition guidance, including industry-specific healthcare guidance. This Standard was adopted July 1, 2018. See Note 5 Revenue Recognition and Accounts Receivable for further discussion. In February 2018, the FASB issued Accounting Standards Update 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2016, the FASB issued ASU 2016-02, which amends the accounting for leases, requiring lessees to recognize most leases on their balance sheet with a right-of-use asset and a corresponding lease liability. Leases will be classified as either finance or operating leases, which will impact the expense recognition of such leases over the lease term. The ASU also modifies the lease classification criteria for lessors and eliminates some of the real estate leasing guidance previously applied for certain leasing transactions. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is required to adopt this ASU on July 1, 2019. In July 2018, the FASB issued ASU 2018-11, which provides entities relief from the transition requirements in ASU 2016-02 by allowing them to elect not to recast prior comparative periods. The Company plans to elect this method of transition upon adoption of this ASU. Because of the few number of leases the Company utilizes to support its operations, |
Restricted Cash
Restricted Cash | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Restricted Cash | 3. RESTRICTED CASH Under the Fourth Amendment to the Trace RDA Loan dated January 6, 2017 (see Note 9. Long-Term Debt), a deposit of $1,000 in a blocked interest bearing account was held by the lender. Under the Fifth Amendment to the Trace RDA Loan dated December 26, 2017, the blocked account was eliminated. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | 4. DISCONTINUED OPERATIONS All of the businesses discussed below are reported as discontinued operations and the consolidated financial statements for all prior periods have been adjusted to reflect this presentation. Parkside Nursing Home — On March 17, 2019, a subsidiary of the Company sold its Parkside Ellijay Nursing Home (“Parkside”) and related real estate for $7,300 subject to adjustment for the book value of certain assets and liabilities on the sale date. The pre-tax gain on the sale is $2,136, which is also subject to adjustment for the book value of certain assets and liabilities on the sale date. The net proceeds of the sale were retained for working capital and general corporate purposes. Sold Hospitals – Subsidiaries of the Company have sold substantially all of the assets of four hospitals (“Other Sold Hospitals”) during the period July 2, 2012 to August 19, 2016. The income (loss) before income taxes of the Other Sold Hospitals results primarily from the effects of prior year Medicare and Medicaid cost report settlements and retained professional liability claims expenses. Life Sciences and Engineering Segment —SunLink retained a defined benefit retirement plan which covered substantially all of the employees of this segment when the segment was sold in fiscal 1998. Effective February 28, 1997, the plan was amended to freeze participant benefits and close the plan to new participants. Pension expense and related tax benefit or expense is reflected in the results of operations for this segment for the fiscal years ended June 30, 2019 and 2018. Results for all the businesses included in discontinued operations are presented in the following table: Discontinued Operations—Summary Statement of Earnings Information 2019 2018 Net Revenues: Parkside $ 5,574 $ 6,960 Sold Hospitals (581 ) 82 $ 4,993 $ 7,042 Loss Before Income Taxes: Parkside $ (756 ) $ (1,006 ) Sold Hospitals (919 ) (89 ) Life sciences and engineering (137 ) (159 ) Loss before income taxes (1,812 ) (1,254 ) Gain (Loss) on Sale: Parkside 2,136 0 Sold Hospitals 0 (113 ) Gain (Loss) on Sale 2,136 (113 ) Income tax expense 82 0 Earnings (Loss) from discontinued operations $ 242 $ (1,367 ) |
Revenue Recognition and Account
Revenue Recognition and Accounts Receivables | 12 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Revenue Recognition and Accounts Receivables | 5. REVENUE RECOGNITION AND ACCOUNTS RECEIVABLES Revenue Recognition Effective July 1, 2018, the Company adopted the provisions of Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” which supersedes most existing revenue recognition guidance, including industry-specific healthcare guidance, by applying the full retrospective method for all periods presented. ASC 606 provides for a single comprehensive principles-based standard for the recognition of revenue across all industries through the application of the following five-step process: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of the provisions of ASC 606 had no material impact on the Company’s current or historical financial position, results of operations or cash flows. Additionally, management does not anticipate that the provisions of ASC 606 will have a material impact on the amount or timing of when the Company recognizes revenue prospectively. However, in accordance with ASC 606 the Company now recognizes the majority of its previously reported provision for doubtful accounts, primarily related to its self-pay patient population, as a direct reduction to revenues as an implicit pricing concession, instead of separately as a discrete deduction to arrive at revenue, and the related presentation of the allowance for doubtful accounts has been eliminated for all periods presented. Subsequent material events that alter the payor’s ability to pay are recorded as bad debt expense. Disaggregation of Revenue The Company disaggregates revenue from contracts with its patients by reportable operating segments and payors. The Company determines that disaggregating revenue into these categories achieves the disclosure objectives to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. A reconciliation of disaggregated revenue to segment revenue is disclosed in Note 13, Financial Information by Segment. The Company’s service specific revenue recognition policies are as follows: Healthcare Services The Company’s revenue is derived primarily from providing healthcare services to patients and is recognized on the date services are provided at amounts billable to individual patients, adjusted for estimates for variable consideration. For patients under reimbursement arrangements with third-party payors, including Medicaid, Medicare and private insurers, revenue is recorded based on contractually agreed-upon amounts or rates, adjusted for estimates for variable consideration, on a per patient, daily basis or as services are performed. Pharmacy The Company’s revenue is derived primarily from providing pharmacy goods and services to patients and is recognized on the date goods and services are provided at amounts billable to individual patients, adjusted for estimates for variable consideration. Revenue is recognized when control of the promised goods or services are transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Each prescription claim represents a separate performance obligation of the Company, separate and distinct from other prescription claims under customer arrangements. Significant portions of the revenue from sales of pharmaceutical and medical products are reimbursed by the federal Medicare Part D program and, to a lesser extent, state Medicaid programs. The Company monitors its revenues and receivables from these reimbursement sources, as well as other third-party insurance payors, and reduces revenue at the revenue recognition date, to properly account for the variable consideration due to anticipated differences between billed and reimbursed amounts. Accordingly, the total net revenues and receivables reported in the Company’s financial statements are recorded at the amount expected to be ultimately received from these payors. Medicare Revenue Net healthcare services revenue is recorded under the Medicare prospective payment system based on an episode payment rate that is subject to adjustment based on certain variables including, but not limited to: (a) an outlier payment if patient care was unusually costly; (b) a low utilization payment adjustment if the number of visits was fewer than five; (c) a partial payment if the patient transferred to another provider or the Company received a patient from another provider before completing the episode; (d) a payment adjustment based upon the level of therapy services required; (e) the number of episodes of care provided to a patient, regardless of whether the same provider provided care for the entire series of episodes; (f) changes in the base episode payments established by the Medicare program; (g) adjustments to the base episode payments for case mix and geographic wages; and (h) recoveries of overpayments. The Company makes adjustments to Medicare revenue on completed episodes to reflect differences between estimated and actual payment amounts, an inability to obtain appropriate billing documentation or authorizations acceptable to the payor and other reasons unrelated to credit risk. Revenue is also adjusted for estimates for variable consideration. Therefore, the Company believes that its reported net service revenue and patient accounts receivable will be the net amounts to be realized from Medicare for services rendered. In addition to revenue recognized on completed services, the Company also recognizes a portion of revenue associated with services in progress. Services in progress are days of care that begin during the reporting period but were not completed as of the end of the period. As such, the Company estimates revenue and recognizes it on a daily basis. The primary factors underlying this estimate are the number of services in progress at the end of the reporting period, expected Medicare revenue per episode and its estimate of the average percentage complete based on services performed. Non-Medicare Revenue The Company recognizes revenue in a similar manner as it recognizes Medicare revenue for service-based rates that are paid by other insurance carriers, including Medicare Advantage programs; however, these rates can vary based upon the negotiated terms. Revenue is recorded on an accrual basis based upon the date of service at amounts equal to its established or estimated per-visit rates, and adjusted for estimates for variable consideration, as applicable. Impact of New Revenue Guidance on Financial Statement Line Items The following tables summarize the impacts of adopting ASC 606 on the Company’s condensed consolidated statements of operations and comprehensive earnings (loss). There was no impact to the condensed consolidated balance sheet as of June 30, 2018 or condensed consolidated statements of cash flows for the year ended June 30, 2018. The majority of which was previously presented as bad debt expense of the Pharmacy Segment under operating expenses has been incorporated as an implicit price concession factored into the calculation of net revenues. Subsequent material events that alter the payor’s ability to pay are recorded as bad debt expense. There is no material change, related to the adoption of ASC 606, for the presentation of the Company’s Fiscal 2018 revenues or prior years. Historically, the Company only presented total revenue for all revenue services in “Operating Revenues”. What was previously presented as provision for bad debts of Pharmacy segment under operating expenses has been incorporated as an implicit price concession factored into the calculation of net revenues, as shown in the “Adjustments” line in the table below. The Condensed Consolidated Statement of Operations and Comprehensive Earnings (Loss) for the year June 30, 2018 has been restated to reflect the adoption of ASC 606. Subsequent material events that alter the payor’s ability to pay are recorded as bad debt expense. Prior period results reflect reclassifications, for comparative purposes, related to the adoption of ASC 606, for the presentation of the Company’s revenues. Historically, the Company only presented total revenue for all revenue services. This reclassification had no effect on the reported results of operations. Net revenues, costs of goods sold and operating expenses for the fiscal year ended June 30, 2018 as reclassified are summarized in the following tables: Fiscal Year Ended June 30, 2018 Operating revenues (net of contractual adjustments) $ 46,450 Less provision for bad debts of Healthcare Services segment (538) Adjustment for bad debts of Pharmacy segment (703 ) Net Revenues $ 45,209 Total Cost of goods sold $ 18,529 Adjustment for bad debts of Pharmacy segment 0 Cost of goods sold $ 18,529 Total Operating Expenses $ 47,024 Adjustment for bad debts of Pharmacy segment (703 ) Total Operating Expenses $ 46,321 Practical Expedients and Exemptions The Company’s contracts with its patients have an original duration of one year or less, therefore, the Company uses the practical expedient applicable to its contracts and does not consider the time value of money. Further, because of the short duration of these contracts, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. In addition, the Company has applied the practical expedient provided by ASC 340, Other Assets and Deferred Costs, and all incremental customer contract acquisition costs are expensed as they are incurred because the amortization period would have been one year or less. The Company’s revenues by payor were as follows for the years ended June 30, 2019 and 2018: 2019 2018 Medicare $ 18,183 $ 18,446 Medicaid 13,871 12,636 Retail and Institutional Pharmacy 6,649 6,505 Managed Care & Other Insurance 6,220 6,922 Self-pay 505 502 Rent 63 68 Other 127 130 Total Net Revenues $ 45,618 $ 45,209 Summary information for receivables is as follows: June 30, 2019 2018 Patient and customer accounts receivable (net of contractual allowances) $ 5,230 $ 5,352 Less allowance for concession allowances (515 ) (529 ) Patient and customer accounts receivable—net $ 4,715 $ 4,823 The following is a summary of the activity in the allowance for concession adjustments for the Healthcare Services segment and the Pharmacy segment for the fiscal years ended June 30, 2019 and 2018: Fiscal year ended June 30, 2019 Healthcare Services Pharmacy Total Balance at July 1, 2018 $ 253 $ 276 $ 529 Additions recognized as a reduction to revenues: Continuing operations 401 416 817 Discontinued operations (10 ) 0 (10 ) Accounts written off, net of recoveries (313 ) (508 ) (821 ) Balance at June 30, 2019 $ 331 $ 184 $ 515 Fiscal year ended June 30, 2018 Healthcare Services Pharmacy Total Balance at July 1, 2017 $ 328 $ 224 $ 552 Additions recognized as a reduction to revenues: Continuing operations 538 703 1,241 Discontinued operations (29 ) 0 (29 ) Accounts written off, net of recoveries (584 ) (651 ) (1,235 ) Balance at June 30, 2018 $ 253 $ 276 $ 529 Net revenues included a decrease of $15 for the year ended June 30, 2019 from the settlement of prior year Medicare and Medicaid cost reports. Net revenues included an increase of $135 for the year ended June 30, 2018 from the settlement of prior year Medicare and Medicaid cost reports. |
Inventory
Inventory | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | 6. INVENTORY Inventory consisted of the following: June 30, 2019 2018 Healthcare Services segment, supplies inventory $ 157 $ 155 Pharmacy segment, goods held for sale 1,859 1,699 $ 2,016 $ 1,854 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of Long-Lived Assets | 7. IMPAIRMENT OF LONG-LIVED ASSETS Impairment of Note Receivable— In conjunction with the 2014 settlement of a lawsuit, the Company received a five-year promissory note in the principal amount of $600 maturing in October 2019. The note was secured by a non-recourse mortgage on an approximately 24.74 acres of real property in Ellijay, Georgia. The terms of the Note and mortgage provide that if the owner of the real property did not pay the note at maturity, then the Company may foreclose and take title of the real property. The obligors have notified the Company that they propose conveying the real property to the Company in lieu of payment of the note. The market value of the note was estimated to be $500 when received based on an appraisal of the real property at that time. A subsequent appraisal of the real property has reduced the value of the property to $371. As a result, an impairment of the note of $129 has been recorded in the fourth quarter of the fiscal year ended June 30, 2019. The Company expects to obtain title to the real property in full satisfaction of the note in the fiscal year ending June 30, 2020. Impairment of Intangible Assets— See footnote 8. Intangible Assets for discussion of impairment analysis of Intangible Assets. Impairment analysis —For the purposes of these analyses, our estimates of fair value are based on a combination of the income approach, which estimates the fair value based on future discounted cash flows, and the market approach, which estimates the fair value based on comparable market prices. Estimates of fair value for reporting units fall under Level 3 of the fair value hierarchy. Estimates of future discounted cash flows are based on assumptions and projections we believe to be currently reasonable and supportable. These assumptions take into account revenue and expense growth rates, patient volumes, changes in payor mix, and changes in legislation and other payor payment patterns. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. INTANGIBLE ASSETS SunLink’s Pharmacy segment has intangible assets related to its Carmichael acquisition, which consists of:b Intangible assets: June 30, 2019 2018 Pharmacy segment Trade Name $ 1,180 $ 1,180 Customer Relationships 1,089 1,089 Medicare License 623 623 2,892 2,892 Accumulated Amortization (1,539 ) (1,422 ) Total $ 1,353 $ 1,470 Impairment testing —During the fourth quarters of fiscal 2019 and 2018, we completed our annual impairment test of certain intangible assets and no impairment was indicated. The Trade Name intangible asset under the Pharmacy segment is a non-amortizing intangible asset. Customer Relationships intangible asset is being amortized over 12 years and Medicare License intangible asset is being amortized over 15 years. Amortization expense was $117 for the fiscal years ended June 30, 2019 and 2018, respectively. Annual amortization of amortizing intangibles for the next five years is as follows: 2020 $ 100 2021 26 2022 26 2023 21 2024 and thereafter 0 Total $ 173 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 9. LONG-TERM DEBT Long-term debt consisted of the following: June 30, 2019 2018 Trace RDA Loan $ 2,999 $ 3,277 Capital lease obligations 159 0 Total 3,158 3,277 Less unamortized debt costs (195 ) (219 ) Less current maturities (2,836 ) (255 ) $ 127 $ 2,803 Trace RDA Loan— Southern Health Corporation of Houston, Inc. (“Trace”) a wholly owned subsidiary of the Company, closed on a $9,975 Mortgage Loan Agreement (“Trace RDA Loan”) with a bank, dated as of July 5, 2012. The Trace RDA Loan has a term of 15 years with level monthly payments of principal and interest until repaid. On December 26, 2017, the Fifth Amendment to Loan Agreement, Modification of Note and Waiver (“Modification”) was entered into by Trace and the bank. Under the Modification, Trace made a $3,548 prepayment on the Trace RDA Loan. The monthly principal and interest payments on the Trace RDA Loan were reduced, the interest rate was reduced to the prime rate (as published in the Wall Street Journal) plus 1% with a floor of 5.5%, (6.5% at June 30, 2019) and certain loan covenants were modified. The Trace RDA Loan is collateralized by real estate and equipment of Trace in Houston, MS, and is partially guaranteed under the U.S. Department of Agriculture, Rural Development Business and Industry Program. The Trace RDA Loan contains various terms and conditions, including financial restrictions and limitations, and affirmative and negative covenants. The loan is guaranteed by SunLink. At June 30, 2019, Trace was not in compliance with the debt service coverage, fixed charge coverage and funded debt to EBITDA ratios. The Company is discussing with the lender a waiver of this non-compliance but a waiver of non-compliance has not been received as of the date of the filing of this report. Since Trace was in non-compliance with these covenants at a measurement date, if the lender were to declare an event of default and accelerate the maturity of the indebtedness, either Trace or SunLink under its guarantee could be required to repay the loan in advance of its maturity which would require a substantial amount of our cash and any such repayment could restrict our current and future operations, which could negatively affect our ability to manage our operations and liquidity. No event of default has been declared by the lender as of the date of the filing of this report nor is such a declaration currently anticipated . The Company continues to discuss a waiver to this non-compliance but a waiver of the non-compliance has not been received as of September 27, 2019. Indebtedness of $2,535, net of unamortized debt costs, as of June 30, 2019, is presented in current liabilities in the consolidated balance sheet as a result of the financial covenant non-compliance at that date. The ability of Trace to continue to make the required debt service payments under the Trace RDA Loan depends on, among other things, its ability to generate sufficient cash, including from operating activities and asset sales. If Trace is unable to generate sufficient cash to meet debt service payments on the Trace RDA Loan, including in the event the lender were to declare an event of default and accelerate the maturity of the indebtedness, such failure could have material adverse effects on the Company. The Trace RDA Loan is guaranteed by the Company and one subsidiary. Debt Commitments —Annual required payments of debt and contractual commitments for interest on long-term debt are shown in the following table. The interest rate on variable interest debt is calculated at the interest rate at June 30, 2019. Debt Interest 2020 $ 3,031 $ 186 2021 34 8 2022 36 5 2023 39 3 2024 18 0 Total $ 3,158 $ 202 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Shareholders' Equity | 10. SHAREHOLDERS’ EQUITY Employee and Directors Stock Option Plans —The 2011 Director Stock Option Plan was approved by SunLink’s shareholders at the Annual Meeting of Shareholders on November 7, 2011. This plan permits the grant of options to non-employee directors of SunLink for the purchase of up to 300,000 common shares through November 2021. No options were granted during the fiscal years ended June 30, 2019 and 2018, respectively. No options have been exercised under this plan. Options outstanding under the plan were 250,000 shares at June 30, 2019. Options for 50,000 shares may be granted under this Plan. The 2005 Equity Incentive Plan was approved by SunLink’s shareholders at the Annual Meeting of Shareholders on November 7, 2005. This plan permitted the grant of options to employees, non-employee directors and service providers of SunLink for the purchase of up to 800,000 common shares plus the number of unused shares under the 2001 Plans, which is 30,675, by November 2015. This Plan restricted the number of Incentive Stock Options to 700,000 shares and Restricted Stock Awards to 200,000 shares. The combination of Incentive Stock Options and Restricted Stock Awards cannot exceed 800,000 shares plus the number of unused shares under the 2001 Plans. Each award of Restricted Shares reduces the number of share options to be granted by four option shares for each Restricted Share awarded. No options have been exercised under this Plan. No options shares were granted during the fiscal years ended June 30, 2019 and 2018, respectively. Options outstanding under this Plan were 345,000 at June 30, 2019. No additional awards may be granted under this Plan. The activity of Company’s share options is shown in the following table: Number of Shares Weighted- Average Exercise Price Range of Exercise Prices Options outstanding June 30, 2017 680,142 $ 1.80 $0.71 - $8.00 Granted 0 N/A N/A Forfeited (29,142 ) 8.00 8.00 Options outstanding June 30, 2018 651,000 $ 1.52 $0.71 - $2.51 Granted 0 N/A N/A Forfeited (56,000 ) 1.46 $0.71 - $2.51 Options outstanding June 30, 2019 595,000 $ 1.53 $0.71 - $2.09 Options exercisable June 30, 2018 636,000 $ 1.52 $0.71 - $2.51 Options exercisable June 30, 2019 595,000 $ 1.53 $0.71 - $2.09 For the fiscal years ended June 30, 2019 and 2018, the Company recognized $1 and $8, respectively, of compensation expense for share options issued. As of June 30, 2019, there was no unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the Plans. Information with respect to stock options outstanding and exercisable at June 30, 2019 is as follows: Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in years) Number Exercisable $ 0.71 15,000 4.22 15,000 $ 1.21 60,000 7.21 60,000 $ 1.22 190,000 3.18 190,000 $ 1.49 90,000 5.19 90,000 $ 1.67 50,000 2.37 50,000 $ 1.79 70,000 6.20 70,000 $ 2.09 120,000 2.20 120,000 595,000 4.01 595,000 No options were exercised during the years ended June 30, 2019 and 2018. As of June 30, 2019 and 2018, the aggregate intrinsic value of options outstanding and options exercisable were $74 and $0, respectively. Common Share Purchase Transactions Common On November 21, 2017. SunLink commenced a tender offer for the purchase of a portion of its common shares at a price of $1.60 per share (the “Offer”). The offer expired on December 21, 2017 with 3,726,000 common shares tendered. In accordance with the terms and conditions of the Offer, the Company accepted for payment a total of approximately 1,746,000 shares at a price of $1.60 per share for a total cost of $2,794, excluding fees and expenses relating to the offer. Common Share Purchase – On June 5, 2018, the Company purchased 70,000 common shares for $1.40 per share, or $98 in total, from a director of the Company at a price equal to the closing price on that date of the Company’s shares on the NYSE American Exchange. This purchase was approved on June 1, 2018 by the Executive Committee of the Company’ Board of Directors. Common Share Repurchase Program – On November 29, 2018, the Company announced a share repurchase program (“Program”) approved by its Board of Directors, which authorized the Company to purchase up to 300,000 shares of its common shares. On December 13, 2018, the Company announced it had purchased the 300,000 shares authorized under the program, and that its Board of Directors had authorized an additional 450,000 shares to be purchased under the Program. As of June 30, 2019, a total of 359,959 shares had been repurchased at a cost of $372, excluding fees and expensing relating to the Program. Additional shares of 390,041 remain authorized to be repurchased. The chart below shows by month the total shares repurchased and average price per share paid for the Program as of June 30, 2019. Total Shares Average Price Purchased Per Share Paid November 2018 1,235 $ 1.14 December 2018 358,724 1.03 Total 359,959 $ 1.03 Accumulated Other Comprehensive Loss —Information with respect to the balances of each classification within accumulated other comprehensive loss is as follows: Minimum Pension Liability Adjustment Accumulated Other Comprehensive Loss June 30, 2017 $ (327 ) $ (327 ) Current period change 150 150 June 30, 2018 $ (177 ) $ (177 ) Current period change (76 ) (76 ) June 30, 2019 $ (253 ) $ (253 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES The provision (benefit) for income taxes on continuing operations are as follows: 2019 2018 Current $ 0 $ 0 Deferred (82 ) (345 ) Total income tax expense (benefit) $ (82 ) $ (345 ) Net deferred income tax assets recorded in the consolidated balance sheets are as follows: June 30, 2019 2018 Net operating loss carryforward $ 6,766 $ 6,367 Depreciation expense 46 (97 ) Allowances for receivables 125 111 Accrued expenses 603 617 Intangible assets 877 1,185 Pension liabilities 141 132 Other 67 58 8,625 8,373 Less valuation allowance (8,625 ) (8,373 ) Net deferred income tax assets $ 0 $ 0 The differences between income taxes on continuing operations at the Federal statutory rate and the effective tax rate were as follows: 2019 2018 Income tax benefit at Federal statutory rate $ (436 ) $ (407 ) Changes in valuation allowance—continuing operations 378 (2,889 ) U.S. state income taxes, net of federal benefit (45 ) 1 Deferred tax rate changes 32 2,971 Other (11 ) (21 ) Total income tax benefit—continuing operations $ (82 ) $ (345 ) In accordance with the Financial Accounting Standards Board Accounting Standards Codification (‘ASC”) 740, we evaluate our deferred taxes quarterly to determine if adjustments to our valuation allowance are required based on the consideration of available positive and negative evidence using a “more likely than not” standard with respect to whether deferred tax assets will be realized. Our evaluation considers, among other factors, our historical operating results, our expectation of future results of operations, the duration of applicable statuary carryforward periods and conditions of the healthcare industry. The ultimate realization of our deferred tax assets depends primarily on our ability to generate future taxable income during the periods in which the related temporary differences in the financial basis and the tax basis of the assets become deductible. The value of our deferred tax assets will depend on applicable income tax rates. The Tax Cuts and Jobs Act (“TCJA”) was enacted on December 22, 2017. Under ASC 740, the impact of changes in tax law must be recorded in the financial statements in the reporting period that included the date of enactment. In addition, in conjunction with the TCJA, on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), which provides guidance on accounting for the tax effects of the TCJA. SAB 118 allows for recording certain effects of the TCJA as “provisional” during a one-year measurement period, which for the Company ended in the second quarter of fiscal 2019. At June 30, 2019, consistent with the above process, we evaluated the need for a valuation against our deferred tax assets and determined that it was more likely than not that none of our deferred tax assets would be realized. As a result, in accordance with ASC 740, we recognized a valuation allowance of $8,625 against the deferred tax asset so that there is no net long-term deferred income tax asset or liability at June 30, 2019. We conducted our evaluation by considering available positive and negative evidence to determine our ability to realize our deferred tax assets. In our evaluation, we gave more significant weight to evidence that was objective in nature as compared to subjective evidence. Also, more significant weight was given to evidence that directly related to our current financial performance as compared to less current evidence and future plans. The principal negative evidence that led us to determine at June 30, 2019 that all the deferred tax assets should have full valuation allowances was the three-year cumulative pre-tax loss from continuing operations as well as the underlying negative business conditions for rural healthcare businesses in which our Healthcare Services Segment businesses operate. For Federal income tax purposes, at June 30, 2019, the Company had approximately $16,700 of estimated net operating loss carry-forwards available for use in future years subject to the limitations of the provisions of Internal Revenue Code Section 382. These net operating loss carryforwards expire primarily in fiscal 2023 through fiscal 2038; however, with the enactment of the TCJA on December 22, 2017, federal net operating loss carryforwards generated in taxable years beginning after December 31, 2017 now have no expiration date. The Company’s returns for the periods prior to the fiscal year ended June 30, 2016 are no longer subject to potential federal and state income tax examination. We recorded a discrete net tax benefit of $0 during the year ended June 30, 2018 related to provisional amounts under SAB 118 for the remeasurement of U.S. deferred tax assets and liabilities due to the Federal tax rate reduction to 21%. No net tax benefit was recorded due to the Company’s full valuation allowance position. The $296 of tax benefit recorded for the year ended June 30, 2018 was due to the release of the valuation allowance on the Company’s Alternative Minimum Tax (“AMT”) Credit, which became refundable under the TCJA. No |
Employee Benefits
Employee Benefits | 12 Months Ended |
Jun. 30, 2019 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | 12. EMPLOYEE BENEFITS Defined Benefit Plans —No defined benefit plan is maintained for employees of either the Healthcare Services segment or the Pharmacy segment. Prior to 1997, SunLink maintained a defined benefit retirement plan covering substantially all of its domestic employees. Effective February 28, 1997, SunLink amended its domestic retirement plan to freeze participant benefits and closed the plan to new participants. Benefits under the frozen plan are based on years of service and level of earnings. SunLink funds the frozen plan, which is noncontributory, at a rate that meets or exceeds the minimum amounts required by the Employee Retirement Income Security Act of 1974. Since the sale of SunLink’s life sciences and engineering segment businesses in the fiscal year ended March 31, 1999, net pension expense has been classified as an expense of discontinued operations. At June 30, 2019, the plan’s assets were invested 44% in cash and short term investments, 38% in equity investments and 18% in fixed income investments. The plan’s current investment policy of primarily investing in cash and short term investments is based on the possible need for immediate liquidity as participants withdraw from the plan. The expected return on investment of 4% is based upon the plan’s historical return on assets. The plan expects to pay $88, $50, $48, $59, and $57 in pension benefits in the years ending June 30, 2020 through 2024, respectively. The plan expects to pay $430 in pension benefits for the years June 30, 2025 through 2029, in the aggregate. This assumes the plan participants elect to take monthly pension benefits as opposed to a lump sum payout when they reach age 65. The Company made a contributions of $107 and $100 to the plan during the years ended June 30, 2019 and 2018, respectively, and plans to make a contribution of $132 to the plan for the year ended June 30, 2020. The components of net pension expense for all plans (comprised solely of one domestic plan) were as follows for the fiscal years ended June 30, 2019 and 2018: 2019 2018 Service cost $ 0 $ 0 Interest cost 56 55 Expected return on assets (36 ) (36 ) Amortization of prior service cost 78 125 Settlement cost 39 15 Net pension expense $ 137 $ 159 Weighted-average assumptions: Discount rate 4.10 % 3.80 % Expected return on plan assets 4.00 % 4.00 % Rate of compensation increase 0.00 % 0.00 % Summary information for the plans (comprised solely of one domestic plan) is as follows for the fiscal years ended June 30, 2019 and 2018: 2019 2018 Change in Benefit Obligation: Benefit obligation at beginning of year $ 1,420 $ 1,506 Interest cost 56 55 Actuarial (gain)loss 90 (47 ) Benefits paid (176 ) (94 ) Benefit obligation end of year $ 1,390 $ 1,420 Change in Fair Value of Plan Assets: Beginning fair value $ 895 $ 891 Actual return on plan assets 1 (2 ) Employer contribution 107 100 Benefits paid (176 ) (94 ) Plan assets at end of year $ 827 $ 895 Funded status of the plans (563 ) (525 ) Unrecognized actuarial loss 384 376 Prepaid (accrued) benefit cost $ (179 ) $ (149 ) Amounts Recognized in Consolidated Balance Sheets Prepaid (accrued) benefit cost (179 ) (149 ) Accumulated other comprehensive loss* 384 376 Net amount recognized $ (563 ) $ (525 ) * Accumulated other comprehensive loss represents minimum pension liability adjustments. Defined Contribution Plan —SunLink has a defined contribution plan pursuant to IRS Section 401(k) covering substantially all domestic employees. SunLink matches a specified percentage of the employee’s contribution as determined periodically by its management. A match of $85 was provided for the fiscal year ended June 30, 2019. A match of $157 was provided for the fiscal year ended June 30, 2018. Plan expense for the defined contribution plan was $0 for the years ended June 30, 2019 and 2018. |
Economic Damages
Economic Damages | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Economic Damages | 13. ECONOMIC DAMAGES The Pharmacy Segment subsidiary asserted claims for economic damages in connection with the Deepwater Horizon Settlement Program related to the event which occurred in 2010. In January 2018, these claims were settled and payments of approximately $22 and $944 (net of costs and attorneys’ fees) for years ended June 30, 2019 and 2018 were received. The net settlements are recognized as a gain in the results for those respective years. |
Sale of Assets
Sale of Assets | 12 Months Ended |
Jun. 30, 2019 | |
Sale Of Assets [Abstract] | |
Sale of Assets | 14. SALE OF ASSETS On October 11, 2018, the Company sold a vacant medical office building and approximately two adjacent acres of undeveloped land. After expenses, the Company received net proceeds from the sale of $935, which was retained for working capital and general corporate purposes. The pre-tax gain on the sale of property was $452 and is included in the results for the year ended June 30, 2019. On January 11, 2018, Carmichael’s Cashway Pharmacy, Inc., a wholly owned subsidiary of the Company, sold the assets of a retail pharmacy operation it operates for approximately $410. A pre-tax gain on the sale of the assets of approximately $183 is included in the results for the year ended June 30, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. COMMITMENTS AND CONTINGENCIES Leases —The Company leases various land, buildings, and equipment under operating lease obligations having noncancelable terms ranging from one to 7 years. Rent expense was $609 and $615 for the years ended June 30, 2019 Fiscal year ending June 30: 2020 $ 592 2021 330 2022 129 2023 3 2024 0 $ 1,054 |
Sales Tax Payable
Sales Tax Payable | 12 Months Ended |
Jun. 30, 2019 | |
Payables And Accruals [Abstract] | |
Sales Tax Payable | 16. SALES TAX PAYABLE During the fiscal year ended June 30, 2019, the Pharmacy segment business amended its sales tax position to exempt from sale tax consideration any revenue from sales of products and services to beneficiaries of government insurance programs reimbursed by administrators of such programs. No sales taxes are included in the related reimbursement received from sales of such products and services from the government payers’ insurance programs. Since this position could be challenged by state and local taxing authorities, the Company has continued to accrue the sales tax payment that could be payable if this amended position is challenged and the Company does not prevail. The sales tax accrued at June 30, 2019 is $843 compared to $241 at June 30, 2018. |
Related Parties
Related Parties | 12 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | 17. RELATED PARTIES A director of the Company is a member of a law firm which provides services to SunLink. The Company has expensed an aggregate of $306 and $229 to the law firm in the fiscal years ended June 30, 2019 and 2018, respectively. Included in the Company’s consolidated balance sheets at June 30, 2019 and 2018 is $47 and $10 of amounts payable to the law firm. On June 5, 2018, the Company purchased 70,000 common shares for $1.40 per share, or $98 in total, from a director of the Company at a price equal to the closing price on the date of the Company’s common shares on the NYSE American Exchange. This purchase was approved on June 1, 2018 by the Executive Committee of the Company’ Board of Directors. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. SUBSEQUENT EVENTS Sale of property — On September 9, 2019, the Company sold approximately 11.4 acres of undeveloped land. After expenses, the Company received net proceeds from the sale of $348, which is being retained for working capital needs and general corporate purposes. The pre-tax gain on the sale is approximately $100 which will be included in the results for the fiscal quarter ended September 30, 2019. Stock option issuance — Stock option forfeiture — |
Financial Information by Segmen
Financial Information by Segments | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Segments | 19. FINANCIAL INFORMATION BY SEGMENTS Under ASC Topic No. 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group is composed of the chief executive officer and members of senior management. Our two reportable operating segments are Healthcare Services and Pharmacy. We evaluate performance of our operating segments based on revenue and operating profit (loss). Segment information for the fiscal years ended June 30, 2019 and 2018 is as follows: Healthcare Services Pharmacy Corporate and Other Total 2019 Net Revenues from external customers $ 15,453 $ 30,165 $ 0 $ 45,618 Operating loss (538 ) 147 (1,923 ) (2,314 ) Depreciation and amortization 336 1,147 3 1,486 Assets 7,612 8,273 8,534 24,419 Expenditures for property, plant and equipment 309 961 2 1,272 2018 Net Revenues from external customers $ 15,745 $ 29,464 $ 0 $ 45,209 Operating loss 687 (119 ) (1,680 ) (1,112 ) Depreciation and amortization 339 1,189 3 1,531 Assets 13,991 7,937 4,248 26,176 Expenditures for property, plant and equipment 318 814 0 1,132 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. EARNINGS PER SHARE (Share Amounts in Thousands) Earnings (loss) per share and shares outstanding information for the years ended June 30, 2019 and 2018 is as follows: 2019 2018 Amount Per Share Amount Amount Per Share Amount Loss from continuing operations $ (1,996 ) $ (226 ) Basic: Weighted-average shares outstanding 7,149 $ (0.28 ) 8,283 $ (0.03 ) Diluted: Weighted-average shares outstanding 7,149 $ (0.28 ) 8,283 $ (0.03 ) Earnings (loss) from discontinued operations $ 242 $ (1,367 ) Basic: Weighted-average shares outstanding 7,149 $ 0.03 8,283 $ (0.17 ) Diluted: Weighted-average shares outstanding 7,149 $ 0.03 8,283 $ (0.17 ) Net Loss $ (1,754 ) $ (1,593 ) Basic: Weighted-average shares outstanding 7,149 $ (0.25 ) 8,283 $ (0.19 ) Diluted: Weighted-average shares outstanding 7,149 $ (0.25 ) 8,283 $ (0.19 ) Weighted-average number of shares outstanding—basic 7,149 8,283 Effect of dilutive director, employee and guarantor options and outstanding common share warrants 0 0 Weighted-average number of shares outstanding—diluted 7,149 8,283 Share options of 31 and 61 for the years ended June 30, 2019 and 2018 are not included in the computation of diluted earnings per share because their effect would be antidilutive. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of SunLink and its subsidiaries. All significant intercompany transactions and balances have been eliminated. |
Management Estimates | Management Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates made by management involve reserves for adjustments to net patient service revenues, evaluation of the recoverability of assets, including accounts receivable and intangible assets, and the assessment of litigation and contingencies, including income taxes and related tax asset valuation allowances, all as discussed in more detail in the remainder of these notes to the consolidated financial statements. Actual results could differ materially from these estimates. |
Net Patient Service Revenue | Net Patient Service Revenue — Effective July 1, 2018, the Company adopted the provisions of Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” (“ASC 606”), which supersedes most existing revenue recognition guidance, including industry-specific healthcare guidance, by applying the full retrospective method for all periods presented. ASC 606 provides for a single comprehensive principles-based standard for the recognition of revenue across all industries through the application of the following five-step process: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of the provisions of ASC 606 had no material impact on the Company’s current or historical financial position, results of operations or cash flows. Additionally, management does not anticipate that the provisions of ASC 606 will have a material impact on the amount or timing of when the Company recognizes revenue prospectively. However, in accordance with ASC 606, the Company now recognizes the majority of its previously reported provision for doubtful accounts, primarily related to its self-pay patient population, as a direct reduction to revenues as an implicit pricing concession, instead of separately as a discrete deduction to arrive at revenue, and the related presentation of the allowance for doubtful accounts has been eliminated for all periods presented. Subsequent material events that alter the payor’s ability to pay are recorded as bad debt expense. The Company’s revenue recognition and accounts receivable policies are more fully described in Note 5. SunLink’s subsidiaries have agreements with third-party payors that provide for payments at amounts different from established charges. Payment arrangements vary and include prospectively determined rates per discharge, reimbursed costs, discounted charges and per diem payments. Patient service revenues are reported as services are rendered at the estimated net realizable amounts from patients, third-party payors, and others. Estimated net realizable amounts are estimated based upon contracts with third-party payors, published reimbursement rates, and historical reimbursement percentages pertaining to each payor type. Estimated reductions in revenues to reflect agreements with third-party payors and estimated retroactive adjustments under such reimbursement agreements are accrued during the period the related services are rendered and are adjusted in future periods as interim and final settlements are determined. Significant changes in reimbursement levels for services under government and private programs could significantly impact the estimates used to accrue such revenue deductions. At June 30, 2019, there were no material claims or disputes with third-party payors. |
Charity Care | Charity Care —SunLink’s subsidiary hospital provides care to patients who meet certain criteria under its charity care policy without charge or at amounts less than its established rates. Because SunLink subsidiaries do not pursue collection of amounts determined to qualify as charity, they are not reported as revenue. SunLink’s subsidiary hospital provided $48 and $8, of charity care in the fiscal years ended June 30, 2019 and 2018, respectively. |
Concentrations of Credit Risk | Concentrations of Credit Risk —SunLink’s Healthcare Services segment subsidiaries grant unsecured credit to their patients, most of who reside in the service area of the subsidiaries’ facilities and are insured under third-party agreements. Medicare and Medicaid patient accounts represent SunLink’s only significant concentrations of credit risk. For SunLink’s Healthcare Services segment, Medicare net revenues were approximately 49% and 50% of net revenues for the years ended June 30, 2019 and 2018, respectively. For SunLink’s Healthcare Services segment, Medicaid was approximately 33% and 31% net revenues for the years ended June 30, 2019 and 2018, respectively. For SunLink’s Healthcare Services segment, Medicare receivables were approximately 42% and 45% of receivables—net at June 30, 2019 and 2018, respectively, while Medicaid receivables were approximately 26% and 36% of receivables—net at June 30, 2019 and 2018, respectively. SunLink’s Pharmacy segment subsidiary grants unsecured credit to individual customers and institutional customers. Individual customers primarily are insured under third-party agreements, including Medicare and Medicaid, while the institutional customers are granted credit according to their determined credit risk. Medicare receivables were approximately 17% and 19% of the Pharmacy segment’s receivables at June 30, 2019 and 2018, respectively, while Medicaid receivables were approximately 17% and 18% of the Pharmacy segments receivable at June 30, 2019 and 2018, respectively. Approximately 66% and 63% of the Pharmacy’s net receivables at June 30, 2019 and 2018, respectively, were private insurance and institutional customers’ receivables. Net revenues for the Pharmacy segment for the fiscal year ended June 30, 2019 and 2018 were approximately 35% and 35% Medicare, respectively, and approximately 29% and 26% Medicaid, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents consist of all funds in banks and short-term liquid investments with an original maturity of three months or less. Cash is deposited with commercial banks and at June 30, 2019 was $1,742, of which approximately $762 totaled amounts greater than the federally insured limits. At June 30, 2019, the Company’s cash equivalents were composed of $5,250 of overnight repurchase agreements and a $750 three-month certificate of deposit with a U.S. bank, of which the full balance of the certificate of deposit is greater than the federally insured limit. The Company accounts for these agreements as cash equivalents in accordance with FASB ASC 305-10-20. The investing of cash in amounts greater than the insurable limits with major well-capitalized financial institutions mitigates the risk of the deposited cash and the certificate of deposit. The overnight repurchase agreements are 102% collateralized by U. S. government backed securities with the Company’s U.S. bank. The U.S. Government backed collateralized securities are of high credit quality which mitigates any significant risk to the credit rating or interest rate risk of the agreements. |
Inventory | Inventory —Inventory consists of medical and pharmacy supplies. Medical supplies are valued at the lower of cost or market, using the first-in, first-out method. Pharmacy supplies are stated at the lower of cost (standard cost method), or net realizable value. Use of this method does not result in a material difference from the methods required by generally accepted accounting principles in the United States of America. |
Allowance for Concession Adjustments | Allowance for Concession Adjustments —Substantially all of SunLink’s subsidiaries’ receivables result from providing healthcare services to hospital facility patients and from providing pharmacy services and products to customers. Accounts receivable are reduced by an allowance for doubtful accounts estimated to become uncollectible in the future. For the Healthcare Services segment, an allowance percentage is calculated based generally upon its historical collection experience for each type of payor. The allowance amount is computed by applying allowance percentages to receivable amounts included in specific payor categories. Significant changes in reimbursement levels for services under government and private programs could significantly impact the estimates used to determine the allowance for doubtful accounts. Accounts receivable are written off after all collection efforts have failed, normally within 120 days after the date of discharge of the patient or service to the patient or customer. For the Pharmacy segment operations, an allowance percentage is calculated based upon past credit history with customers and their current financial condition. Accounts receivable are written off against the allowance for concession adjustments when they are deemed uncollectible. |
Property, Plant, and Equipment | Property, Plant, and Equipment —Property, plant, and equipment, including equipment subject to capital leases, is recorded at cost. Depreciation is recognized over the estimated useful lives of the assets, which range from 3 to 45 years, on a straight-line basis. Generally, furniture and fixtures are depreciated over 5 to 10 years, machinery and equipment over 10 years, and buildings over 25 to 45 years. Leasehold improvements and leased machinery and equipment are depreciated over the lease term or estimated useful life of the asset, whichever is shorter, and range from 5 to 15 years. For the Pharmacy segment, durable medical equipment is depreciated over 3 years. Expenditures for major renewals and replacements are capitalized. Expenditures for maintenance and repairs are charged to operating expense as incurred. When property items are retired or otherwise disposed of, amounts applicable to such items are removed from the related asset and accumulated depreciation accounts and any resulting gain or loss is credited or charged to income. Depreciation expense totaled $1,369 and $1,414 for the years ended June 30, 2019 and 2018, respectively. |
Risk Management | Risk Management —SunLink and its subsidiaries are exposed to various risks of loss from professional liability and other claims and casualties; theft of, damage to, and destruction of assets; business interruption; errors and omissions; employee injuries and illnesses; natural disasters (including earthquakes and hurricanes); and employee health, dental and accident benefits. Commercial insurance coverage is purchased for a portion of claims arising from such matters. When, in management’s judgment, claims are sufficiently identified, a liability is accrued for estimated costs and losses under such claims, net of estimated insurance recoveries except where applicable laws, rules or regulations require us to report the gross estimate of potential or estimated losses. The recorded liability for professional liability risks includes an estimate of liability for claims assumed at the acquisition and for claims incurred after the acquisition of a business. These amounts are based on actuarially determined estimates. The Company self-insures for workers’ compensation risk. The estimated liability for workers’ compensation risk includes estimates of the ultimate costs for both reported claims and claims incurred but not reported. The Company is also self-insured for employee health risks. The estimated liability for employee health risk includes estimates of the ultimate costs for both reported claims and claims incurred but not reported. The Company accrues an estimate of losses resulting from workers’ compensation and professional liability claims to the extent they are not covered by insurance. These accruals are estimated quarterly based upon management’s review of claims reported and historical loss data. The Company records a liability pertaining to pending litigation if it is probable a loss has been incurred and accrues the most likely amount of loss based on the information available. If no amount within the range of losses estimated from the information available is more likely than any other amount in the range of loss, the minimum amount in the range of loss is accrued. Because of uncertainties surrounding the nature of litigation and the ultimate liability to SunLink and its subsidiaries, if any, estimates are revised as additional facts become known. |
Long-lived Assets | Long-lived Assets —SunLink and its subsidiaries periodically assesses the recoverability of assets based on its expectations of future profitability and the undiscounted cash flows of the related operations and, when circumstances dictate, adjust the carrying value of the asset to estimated fair value. These factors, along with management’s plans with respect to the operations, are considered in assessing the recoverability of long-lived assets. |
Goodwill and Intangibles | Goodwill and Intangibles —Goodwill represents the cost of acquired businesses in excess of fair value of identifiable tangible and intangible net assets purchased. Goodwill has an indefinite life and is not subject to periodic amortization. However, goodwill is tested at least annually for impairment, using a fair value methodology, in lieu of amortization. Definite-life intangible assets are amortized on a straight-line basis over their estimated useful lives, generally for periods ranging from 2 to 30 years. SunLink and its subsidiaries evaluate the reasonableness of the useful lives of intangible assets and they are tested for impairment as conditions warrant. |
Income Taxes | Income Taxes —SunLink accounts for income taxes using an asset and liability approach and the recognition of deferred tax assets and liabilities for expected future tax consequences. SunLink considers all expected future events other than proposed enactments of changes in the income tax law or rates. When management determines that it is more likely than not that a portion of or none of the net deferred tax asset will be realized through future taxable earnings or implementation of tax planning strategies, management provides a valuation allowance for the portion not expected to be realized. |
Share-Based Compensation | Share-Based Compensation —The Company issues common share options to key employees and directors under various shareholder-approved plans. Share-based compensation expense of $1 and $8 for the fiscal years ended June 30, 2019 and 2018, respectively, was recorded in salaries, wages and benefits expense for share options issued to employees and directors of the Company. The fair value of the share options was estimated using the Black-Scholes option pricing model. The historical volatility is used to calculate the estimated volatility in this model. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments —The recorded values of cash, receivables, and payables approximate their fair values because of the relatively short maturity of these instruments. Similarly, the fair value of long-term debt is estimated to approximate the recorded value due to its current variable interest rate. |
Fair Value Measurements | Fair Value Measurements —Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company utilizes the U.S. Generally Accepted Accounting Principles (“GAAP”) fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumption about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The inputs used to measure fair value are classified into the following fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 includes values determined using pricing models, discounted cash flow methodologies, or similar techniques reflecting the Company’s own assumptions. In instances where the determination of the fair value hierarchy measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment of factors specific to the asset or liability. |
Earnings (Loss) per Share | Earnings (Loss) per Share —Earnings (loss) per common share is based on the weighted-average number of common shares and dilutive common share equivalents outstanding for each period presented, including vested and unvested shares issued under SunLink’s 2005 Equity Incentive Plan, and the 2011 Director Stock Option Plan. Common share equivalents represent the dilutive effect of the assumed exercise of the outstanding stock options. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. Instead of a two-step impairment model, if the carrying amount of a reporting unit exceeds its fair value as determined in step one of the impairment test, an impairment loss is measured at the amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This ASU is effective for any interim or annual impairment tests for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is evaluating what impact it will have on its consolidated financial position and results of operations. In March 2017, the FASB issued ASU 2017-07, which changes the presentation of the components of net periodic benefit cost for sponsors of defined benefit plans for pensions. Under the changes in this ASU, the service cost component of net periodic benefit cost will be reported in the same Statement of Operations and Comprehensive Earnings and Loss line as other employee compensation costs arising from services during the reporting period. The other components of net periodic benefit cost will be presented separately in a line item outside of operating income. This ASU was effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company adopted this ASU on July 1, 2018. The Company has only one defined benefit plan for pension which is frozen for new participants and the cost of the plan is reported in discontinued operations. Since the changes required in this new ASU only change the income statement classification of the components of net periodic benefit cost, no changes to the presentation of income from continuing operations nor net income was required. In May 2014, the FASB issued ASU 2014-9, “Revenue from Contracts with Customers”, along with subsequent amendments, updates and an extension of the effective date (collectively, the “New Revenue Standard” or “ASC 606”), which supersedes most existing revenue recognition guidance, including industry-specific healthcare guidance. This Standard was adopted July 1, 2018. See Note 5 Revenue Recognition and Accounts Receivable for further discussion. In February 2018, the FASB issued Accounting Standards Update 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2016, the FASB issued ASU 2016-02, which amends the accounting for leases, requiring lessees to recognize most leases on their balance sheet with a right-of-use asset and a corresponding lease liability. Leases will be classified as either finance or operating leases, which will impact the expense recognition of such leases over the lease term. The ASU also modifies the lease classification criteria for lessors and eliminates some of the real estate leasing guidance previously applied for certain leasing transactions. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is required to adopt this ASU on July 1, 2019. In July 2018, the FASB issued ASU 2018-11, which provides entities relief from the transition requirements in ASU 2016-02 by allowing them to elect not to recast prior comparative periods. The Company plans to elect this method of transition upon adoption of this ASU. Because of the few number of leases the Company utilizes to support its operations, |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Results for all the businesses included in discontinued operations are presented in the following table: Discontinued Operations—Summary Statement of Earnings Information 2019 2018 Net Revenues: Parkside $ 5,574 $ 6,960 Sold Hospitals (581 ) 82 $ 4,993 $ 7,042 Loss Before Income Taxes: Parkside $ (756 ) $ (1,006 ) Sold Hospitals (919 ) (89 ) Life sciences and engineering (137 ) (159 ) Loss before income taxes (1,812 ) (1,254 ) Gain (Loss) on Sale: Parkside 2,136 0 Sold Hospitals 0 (113 ) Gain (Loss) on Sale 2,136 (113 ) Income tax expense 82 0 Earnings (Loss) from discontinued operations $ 242 $ (1,367 ) |
Revenue Recognition and Accou_2
Revenue Recognition and Accounts Receivables (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Summary of Revenues by Payor | The Company’s revenues by payor were as follows for the years ended June 30, 2019 and 2018: 2019 2018 Medicare $ 18,183 $ 18,446 Medicaid 13,871 12,636 Retail and Institutional Pharmacy 6,649 6,505 Managed Care & Other Insurance 6,220 6,922 Self-pay 505 502 Rent 63 68 Other 127 130 Total Net Revenues $ 45,618 $ 45,209 |
Summary Information for Receivables | Summary information for receivables is as follows: June 30, 2019 2018 Patient and customer accounts receivable (net of contractual allowances) $ 5,230 $ 5,352 Less allowance for concession allowances (515 ) (529 ) Patient and customer accounts receivable—net $ 4,715 $ 4,823 |
Summary of Allowance for Concession Adjustments | The following is a summary of the activity in the allowance for concession adjustments for the Healthcare Services segment and the Pharmacy segment for the fiscal years ended June 30, 2019 and 2018: Fiscal year ended June 30, 2019 Healthcare Services Pharmacy Total Balance at July 1, 2018 $ 253 $ 276 $ 529 Additions recognized as a reduction to revenues: Continuing operations 401 416 817 Discontinued operations (10 ) 0 (10 ) Accounts written off, net of recoveries (313 ) (508 ) (821 ) Balance at June 30, 2019 $ 331 $ 184 $ 515 Fiscal year ended June 30, 2018 Healthcare Services Pharmacy Total Balance at July 1, 2017 $ 328 $ 224 $ 552 Additions recognized as a reduction to revenues: Continuing operations 538 703 1,241 Discontinued operations (29 ) 0 (29 ) Accounts written off, net of recoveries (584 ) (651 ) (1,235 ) Balance at June 30, 2018 $ 253 $ 276 $ 529 |
Accounting Standards Update 2014-09 [Member] | |
Summary of Net Revenues, Cost of Goods Sold and Operating Expenses as Reclassified | Net revenues, costs of goods sold and operating expenses for the fiscal year ended June 30, 2018 as reclassified are summarized in the following tables: Fiscal Year Ended June 30, 2018 Operating revenues (net of contractual adjustments) $ 46,450 Less provision for bad debts of Healthcare Services segment (538) Adjustment for bad debts of Pharmacy segment (703 ) Net Revenues $ 45,209 Total Cost of goods sold $ 18,529 Adjustment for bad debts of Pharmacy segment 0 Cost of goods sold $ 18,529 Total Operating Expenses $ 47,024 Adjustment for bad debts of Pharmacy segment (703 ) Total Operating Expenses $ 46,321 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Net | Inventory consisted of the following: June 30, 2019 2018 Healthcare Services segment, supplies inventory $ 157 $ 155 Pharmacy segment, goods held for sale 1,859 1,699 $ 2,016 $ 1,854 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | |
Intangible Assets | Intangible assets: June 30, 2019 2018 Pharmacy segment Trade Name $ 1,180 $ 1,180 Customer Relationships 1,089 1,089 Medicare License 623 623 2,892 2,892 Accumulated Amortization (1,539 ) (1,422 ) Total $ 1,353 $ 1,470 |
Annual Amortization of Amortizing Intangibles for Next Five Years | Annual amortization of amortizing intangibles for the next five years is as follows: 2020 $ 100 2021 26 2022 26 2023 21 2024 and thereafter 0 Total $ 173 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following: June 30, 2019 2018 Trace RDA Loan $ 2,999 $ 3,277 Capital lease obligations 159 0 Total 3,158 3,277 Less unamortized debt costs (195 ) (219 ) Less current maturities (2,836 ) (255 ) $ 127 $ 2,803 |
Annual Required Payments of Debt and Contractual Commitments for Interest on Long-term Debt | Debt Commitments —Annual required payments of debt and contractual commitments for interest on long-term debt are shown in the following table. The interest rate on variable interest debt is calculated at the interest rate at June 30, 2019. Debt Interest 2020 $ 3,031 $ 186 2021 34 8 2022 36 5 2023 39 3 2024 18 0 Total $ 3,158 $ 202 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Activity of Company's Share Options | The activity of Company’s share options is shown in the following table: Number of Shares Weighted- Average Exercise Price Range of Exercise Prices Options outstanding June 30, 2017 680,142 $ 1.80 $0.71 - $8.00 Granted 0 N/A N/A Forfeited (29,142 ) 8.00 8.00 Options outstanding June 30, 2018 651,000 $ 1.52 $0.71 - $2.51 Granted 0 N/A N/A Forfeited (56,000 ) 1.46 $0.71 - $2.51 Options outstanding June 30, 2019 595,000 $ 1.53 $0.71 - $2.09 Options exercisable June 30, 2018 636,000 $ 1.52 $0.71 - $2.51 Options exercisable June 30, 2019 595,000 $ 1.53 $0.71 - $2.09 |
Number of Stock Options Outstanding and Exercisable | Information with respect to stock options outstanding and exercisable at June 30, 2019 is as follows: Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life (in years) Number Exercisable $ 0.71 15,000 4.22 15,000 $ 1.21 60,000 7.21 60,000 $ 1.22 190,000 3.18 190,000 $ 1.49 90,000 5.19 90,000 $ 1.67 50,000 2.37 50,000 $ 1.79 70,000 6.20 70,000 $ 2.09 120,000 2.20 120,000 595,000 4.01 595,000 |
Summary of Total Share Repurchased and Average Price Per Share Paid for the Program | The chart below shows by month the total shares repurchased and average price per share paid for the Program as of June 30, 2019. Total Shares Average Price Purchased Per Share Paid November 2018 1,235 $ 1.14 December 2018 358,724 1.03 Total 359,959 $ 1.03 |
Classification Other Accumulated Comprehensive Loss | Accumulated Other Comprehensive Loss —Information with respect to the balances of each classification within accumulated other comprehensive loss is as follows: Minimum Pension Liability Adjustment Accumulated Other Comprehensive Loss June 30, 2017 $ (327 ) $ (327 ) Current period change 150 150 June 30, 2018 $ (177 ) $ (177 ) Current period change (76 ) (76 ) June 30, 2019 $ (253 ) $ (253 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes on Continuing Operations | The provision (benefit) for income taxes on continuing operations are as follows: 2019 2018 Current $ 0 $ 0 Deferred (82 ) (345 ) Total income tax expense (benefit) $ (82 ) $ (345 ) |
Net Deferred Income Tax Assets | Net deferred income tax assets recorded in the consolidated balance sheets are as follows: June 30, 2019 2018 Net operating loss carryforward $ 6,766 $ 6,367 Depreciation expense 46 (97 ) Allowances for receivables 125 111 Accrued expenses 603 617 Intangible assets 877 1,185 Pension liabilities 141 132 Other 67 58 8,625 8,373 Less valuation allowance (8,625 ) (8,373 ) Net deferred income tax assets $ 0 $ 0 |
Differences Between Income Taxes on Continuing Operations at Federal Statutory Rate and Effective Tax Rate | The differences between income taxes on continuing operations at the Federal statutory rate and the effective tax rate were as follows: 2019 2018 Income tax benefit at Federal statutory rate $ (436 ) $ (407 ) Changes in valuation allowance—continuing operations 378 (2,889 ) U.S. state income taxes, net of federal benefit (45 ) 1 Deferred tax rate changes 32 2,971 Other (11 ) (21 ) Total income tax benefit—continuing operations $ (82 ) $ (345 ) |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Postemployment Benefits [Abstract] | |
Components of Net Pension Expense for All Plans | The components of net pension expense for all plans (comprised solely of one domestic plan) were as follows for the fiscal years ended June 30, 2019 and 2018: 2019 2018 Service cost $ 0 $ 0 Interest cost 56 55 Expected return on assets (36 ) (36 ) Amortization of prior service cost 78 125 Settlement cost 39 15 Net pension expense $ 137 $ 159 Weighted-average assumptions: Discount rate 4.10 % 3.80 % Expected return on plan assets 4.00 % 4.00 % Rate of compensation increase 0.00 % 0.00 % |
Summary Information for Plans (Comprised Solely of One Domestic Plan) | Summary information for the plans (comprised solely of one domestic plan) is as follows for the fiscal years ended June 30, 2019 and 2018: 2019 2018 Change in Benefit Obligation: Benefit obligation at beginning of year $ 1,420 $ 1,506 Interest cost 56 55 Actuarial (gain)loss 90 (47 ) Benefits paid (176 ) (94 ) Benefit obligation end of year $ 1,390 $ 1,420 Change in Fair Value of Plan Assets: Beginning fair value $ 895 $ 891 Actual return on plan assets 1 (2 ) Employer contribution 107 100 Benefits paid (176 ) (94 ) Plan assets at end of year $ 827 $ 895 Funded status of the plans (563 ) (525 ) Unrecognized actuarial loss 384 376 Prepaid (accrued) benefit cost $ (179 ) $ (149 ) Amounts Recognized in Consolidated Balance Sheets Prepaid (accrued) benefit cost (179 ) (149 ) Accumulated other comprehensive loss* 384 376 Net amount recognized $ (563 ) $ (525 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Minimum Lease Commitments | . Minimum lease commitments as of June 30, 2019 are as follows: Fiscal year ending June 30: 2020 $ 592 2021 330 2022 129 2023 3 2024 0 $ 1,054 |
Financial Information by Segm_2
Financial Information by Segments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information for the fiscal years ended June 30, 2019 and 2018 is as follows: Healthcare Services Pharmacy Corporate and Other Total 2019 Net Revenues from external customers $ 15,453 $ 30,165 $ 0 $ 45,618 Operating loss (538 ) 147 (1,923 ) (2,314 ) Depreciation and amortization 336 1,147 3 1,486 Assets 7,612 8,273 8,534 24,419 Expenditures for property, plant and equipment 309 961 2 1,272 2018 Net Revenues from external customers $ 15,745 $ 29,464 $ 0 $ 45,209 Operating loss 687 (119 ) (1,680 ) (1,112 ) Depreciation and amortization 339 1,189 3 1,531 Assets 13,991 7,937 4,248 26,176 Expenditures for property, plant and equipment 318 814 0 1,132 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share and Shares Outstanding | Earnings (loss) per share and shares outstanding information for the years ended June 30, 2019 and 2018 is as follows: 2019 2018 Amount Per Share Amount Amount Per Share Amount Loss from continuing operations $ (1,996 ) $ (226 ) Basic: Weighted-average shares outstanding 7,149 $ (0.28 ) 8,283 $ (0.03 ) Diluted: Weighted-average shares outstanding 7,149 $ (0.28 ) 8,283 $ (0.03 ) Earnings (loss) from discontinued operations $ 242 $ (1,367 ) Basic: Weighted-average shares outstanding 7,149 $ 0.03 8,283 $ (0.17 ) Diluted: Weighted-average shares outstanding 7,149 $ 0.03 8,283 $ (0.17 ) Net Loss $ (1,754 ) $ (1,593 ) Basic: Weighted-average shares outstanding 7,149 $ (0.25 ) 8,283 $ (0.19 ) Diluted: Weighted-average shares outstanding 7,149 $ (0.25 ) 8,283 $ (0.19 ) Weighted-average number of shares outstanding—basic 7,149 8,283 Effect of dilutive director, employee and guarantor options and outstanding common share warrants 0 0 Weighted-average number of shares outstanding—diluted 7,149 8,283 |
SEC Schedule II - Schedule of V
SEC Schedule II - Schedule of Valuation and Qualifying Accounts Disclosure (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for Doubtful Accounts [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning Of Year | $ 529 | $ 552 |
Charged to Cost and Expenses/(Benefit) | 807 | 1,212 |
Deductions from Reserves | (821) | (1,235) |
Balance at End of Year | 515 | 529 |
Deferred Income Tax Asset Valuation Allowance [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning Of Year | 8,373 | 11,120 |
Charged to Cost and Expenses/(Benefit) | 252 | (2,747) |
Balance at End of Year | $ 8,625 | $ 8,373 |
Business Operations - Additiona
Business Operations - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2019SegmentBedaAreaLocation | |
Business And Organization [Line Items] | |
Number of segments | Segment | 2 |
Healthcare Services Segment [Member] | Mississippi [Member] | |
Business And Organization [Line Items] | |
Area of unimproved land owned by subsidiary | a | 5 |
Healthcare Services Segment [Member] | Missouri [Member] | |
Business And Organization [Line Items] | |
Area of unimproved land owned by subsidiary | a | 12 |
Healthcare Services Segment [Member] | Acute Care Hospital [Member] | Mississippi [Member] | |
Business And Organization [Line Items] | |
Number of licensed-bed owned and operated by a subsidiary | Bed | 84 |
Number of bed in nursing home owned and operated by subsidiary | Bed | 66 |
Number of bed in geriatric psychology subsidiary | Bed | 18 |
Healthcare Services Segment [Member] | Medical Office Building [Member] | Alabama [Member] | |
Business And Organization [Line Items] | |
Area of land owned by subsidiary | a | 4 |
Pharmacy Segment [Member] | |
Business And Organization [Line Items] | |
Number of operational areas | Area | 4 |
Pharmacy Segment [Member] | Louisiana [Member] | Retail Pharmacy Products and Services [Member] | |
Business And Organization [Line Items] | |
Number of locations sales conducted in rural markets | Location | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Line Items] | ||
Charity care | $ 48 | $ 8 |
Cash | 1,742 | |
Cash deposits in excess of federally insured limits | $ 762 | |
Maturity period of certificates of deposit | 3 months | |
Overnight repurchase agreements collateralized by government backed securities | 102.00% | |
Accounts receivable written off period, maximum | 120 days | |
Depreciation method | Depreciation is recognized over the estimated useful lives of the assets, which range from 3 to 45 years, on a straight-line basis. | |
Description of property, plant and equipment, estimated useful lives | Estimated useful lives of the assets, which range from 3 to 45 years, on a straight-line basis. | |
Depreciation | $ 1,369 | 1,414 |
Share-based compensation | 1 | $ 8 |
ASU 2018-02 [Member] | ||
Accounting Policies [Line Items] | ||
Reclassification of stranded tax amounts from AOCI to retained earnings | $ 69 | |
Machinery and Equipment [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 10 years | |
Medical Equipment [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 3 years | |
Minimum [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 3 years | |
Definite-life intangible assets, estimated useful lives | 2 years | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Minimum [Member] | Buildings [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 25 years | |
Minimum [Member] | Leasehold Improvements and Leased Machinery and Equipment [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 5 years | |
Maximum [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 45 years | |
Definite-life intangible assets, estimated useful lives | 30 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 10 years | |
Maximum [Member] | Buildings [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 45 years | |
Maximum [Member] | Leasehold Improvements and Leased Machinery and Equipment [Member] | ||
Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful lives | 15 years | |
Overnight Repurchase Agreements [Member] | ||
Accounting Policies [Line Items] | ||
Cash equivalents | $ 5,250 | |
Certificate of Deposit with a U.S. Bank [Member] | ||
Accounting Policies [Line Items] | ||
Cash equivalents | $ 750 | |
Healthcare Services Segment [Member] | Medicare [Member] | Credit Concentration Risk [Member] | Sales Revenue, Segment [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 49.00% | 50.00% |
Healthcare Services Segment [Member] | Medicare [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 42.00% | 45.00% |
Healthcare Services Segment [Member] | Medicaid [Member] | Credit Concentration Risk [Member] | Sales Revenue, Segment [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 33.00% | 31.00% |
Healthcare Services Segment [Member] | Medicaid [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 26.00% | 36.00% |
Pharmacy Segment [Member] | Medicare [Member] | Credit Concentration Risk [Member] | Sales Revenue, Segment [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 35.00% | 35.00% |
Pharmacy Segment [Member] | Medicare [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 17.00% | 19.00% |
Pharmacy Segment [Member] | Medicaid [Member] | Credit Concentration Risk [Member] | Sales Revenue, Segment [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 29.00% | 26.00% |
Pharmacy Segment [Member] | Medicaid [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 17.00% | 18.00% |
Pharmacy Segment [Member] | Private Insurance and Institutional Customers [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | ||
Accounting Policies [Line Items] | ||
Concentrations of Credit Risk | 66.00% | 63.00% |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Trace RDA Loan [Member] | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Restricted cash | $ 1,000 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 17, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale | $ 6,899 | $ 0 | |
Pre-tax gain on the sale | 2,136 | (113) | |
Parkside [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale | $ 7,300 | ||
Pre-tax gain on the sale | $ 2,136 | $ 2,136 | $ 0 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Detail) - USD ($) $ in Thousands | Mar. 17, 2019 | Jun. 30, 2019 | Jun. 30, 2018 |
Net Revenues: | |||
Net revenues | $ 4,993 | $ 7,042 | |
Loss Before Income Taxes: | |||
Loss before income taxes | (1,812) | (1,254) | |
Gain (Loss) on Sale: | |||
Gain (Loss) on Sale | 2,136 | (113) | |
Income tax expense | 82 | 0 | |
Earnings (Loss) from discontinued operations | 242 | (1,367) | |
Parkside [Member] | |||
Net Revenues: | |||
Net revenues | 5,574 | 6,960 | |
Loss Before Income Taxes: | |||
Loss before income taxes | (756) | (1,006) | |
Gain (Loss) on Sale: | |||
Gain (Loss) on Sale | $ 2,136 | 2,136 | 0 |
Sold Hospitals [Member] | |||
Net Revenues: | |||
Net revenues | (581) | 82 | |
Loss Before Income Taxes: | |||
Loss before income taxes | (919) | (89) | |
Gain (Loss) on Sale: | |||
Gain (Loss) on Sale | 0 | (113) | |
Life Sciences and Engineering [Member] | |||
Loss Before Income Taxes: | |||
Loss before income taxes | $ (137) | $ (159) |
Revenue Recognition and Accou_3
Revenue Recognition and Accounts Receivables - Summary of Net Revenues, Cost of Goods Sold and Operating Expenses as Reclassified (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Revenues | $ 45,618 | $ 45,209 |
Cost of goods sold | 18,529 | |
Total Operating Expenses | 46,321 | |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Revenues | 46,450 | |
Cost of goods sold | 18,529 | |
Total Operating Expenses | 47,024 | |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Healthcare Services Segment [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Revenues | (538) | |
Accounting Standards Update 2014-09 [Member] | Adjustment for Bad Debts of Pharmacy Segment [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Revenues | (703) | |
Cost of goods sold | 0 | |
Total Operating Expenses | $ (703) |
Revenue Recognition and Accou_4
Revenue Recognition and Accounts Receivables - Summary of Revenue by Payor (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | $ 45,618 | $ 45,209 |
Medicare [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 18,183 | 18,446 |
Medicaid [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 13,871 | 12,636 |
Retail and Institutional Pharmacy [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 6,649 | 6,505 |
Managed Care & Other Insurance [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 6,220 | 6,922 |
Self-Pay [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 505 | 502 |
Rent [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 63 | 68 |
Other [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | $ 127 | $ 130 |
Revenue Recognition and Accou_5
Revenue Recognition and Accounts Receivables - Summary Information for Receivables (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Receivables [Abstract] | |||
Patient and customer accounts receivable (net of contractual allowances) | $ 5,230 | $ 5,352 | |
Less allowance for concession allowances | (515) | (529) | $ (552) |
Patient and customer accounts receivable—net | $ 4,715 | $ 4,823 |
Revenue Recognition and Accou_6
Revenue Recognition and Accounts Receivables - Summary of Allowance for Concession Adjustments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Beginning balance | $ 529 | $ 552 |
Accounts written off, net of recoveries | (821) | (1,235) |
Ending balance | 515 | 529 |
Continuing Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | 817 | 1,241 |
Discontinued Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | (10) | (29) |
Healthcare Services Segment [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Beginning balance | 253 | 328 |
Accounts written off, net of recoveries | (313) | (584) |
Ending balance | 331 | 253 |
Healthcare Services Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | 401 | 538 |
Healthcare Services Segment [Member] | Discontinued Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | (10) | (29) |
Pharmacy Segment [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Beginning balance | 276 | 224 |
Accounts written off, net of recoveries | (508) | (651) |
Ending balance | 184 | 276 |
Pharmacy Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | 416 | 703 |
Pharmacy Segment [Member] | Discontinued Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | $ 0 | $ 0 |
Revenue Recognition and Accou_7
Revenue Recognition and Accounts Receivables - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Receivables [Abstract] | ||
Net revenues for settlements and filings of prior year Medicare and Medicaid cost reports | $ (15) | $ 135 |
Inventory - Inventory, Net (Det
Inventory - Inventory, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory [Line Items] | ||
Inventory, net, total | $ 2,016 | $ 1,854 |
Healthcare Services Segment [Member] | ||
Inventory [Line Items] | ||
Healthcare Services segment, supplies inventory | 157 | 155 |
Pharmacy Segment [Member] | ||
Inventory [Line Items] | ||
Pharmacy segment, goods held for sale | $ 1,859 | $ 1,699 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets - Additional Information (Detail) - Promissory Note [Member] $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)a | Jun. 30, 2019USD ($)a | |
Impairment Of Long Lived Assets [Line Items] | ||
Promissory note receivable term | 5 years | |
Principal amount of promissory note | $ 600 | $ 600 |
Area of real property non-recourse mortgaged for notes receivable | a | 24.74 | 24.74 |
Promissory note maturity date | 2019-10 | |
Estimated market value of the note receivable | $ 500 | $ 500 |
Value of real property | 371 | $ 371 |
Impairment of notes receivable | $ 129 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total | $ 1,353 | $ 1,470 |
Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross | 2,892 | 2,892 |
Accumulated Amortization | (1,539) | (1,422) |
Total | 1,353 | 1,470 |
Trade Name [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 1,180 | 1,180 |
Customer Relationships [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,089 | 1,089 |
Medicare License [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 623 | $ 623 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill And Intangible Assets [Line Items] | ||
Amortization expense | $ 117 | $ 117 |
Customer Relationships [Member] | Pharmacy Segment [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Intangible asset, remaining amortization period | 12 years | |
Medicare License [Member] | Pharmacy Segment [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Intangible asset, remaining amortization period | 15 years |
Intangible Assets - Annual Amor
Intangible Assets - Annual Amortization of Amortizing Intangibles for Next Five Years (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2020 | $ 100 |
2021 | 26 |
2022 | 26 |
2023 | 21 |
2024 and thereafter | 0 |
Total | $ 173 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 159 | $ 0 |
Total | 3,158 | 3,277 |
Less unamortized debt costs | (195) | (219) |
Less current maturities | (2,836) | (255) |
Total Long-term debt, excluding current maturities | 127 | 2,803 |
Trace RDA Loan [Member] | ||
Debt Instrument [Line Items] | ||
Trace RDA Loan | $ 2,999 | $ 3,277 |
Long-Term Debt (Trace RDA Loan
Long-Term Debt (Trace RDA Loan and Trace Working Capital Loan) - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 26, 2017 | Jun. 30, 2019 | Jun. 30, 2018 |
Debt Instrument [Line Items] | |||
Prepayment of loan | $ 296 | $ 3,926 | |
Current maturities of long-term debt, net of debt issuance costs | $ 2,836 | $ 255 | |
Trace RDA Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity period | 15 years | ||
Prepayment of loan | $ 3,548 | ||
Debt instrument description | prime rate (as published in the Wall Street Journal) plus 1% with a floor of 5.5% | ||
Debt instrument interest rate, basis spread | 1.00% | ||
Debt instrument, interest rate floor | 5.50% | ||
Effective interest rate | 6.50% | ||
Current maturities of long-term debt, net of debt issuance costs | $ 2,535 | ||
Loan is guarantee description | Loan is guaranteed by the Company and one subsidiary. | ||
Trace RDA Loan [Member] | Mortgages [Member] | |||
Debt Instrument [Line Items] | |||
Loan agreement amount | $ 9,975 | ||
Date of loan agreement | Jul. 5, 2012 |
Long-Term Debt - Annual Require
Long-Term Debt - Annual Required Payments of Debt and Contractual Commitments for Interest on Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Long Term Debt By Maturity [Abstract] | ||
Debt, 2020 | $ 3,031 | |
Debt, 2021 | 34 | |
Debt, 2022 | 36 | |
Debt, 2023 | 39 | |
Debt, 2024 | 18 | |
Total | 3,158 | $ 3,277 |
Interest, 2020 | 186 | |
Interest, 2021 | 8 | |
Interest, 2022 | 5 | |
Interest, 2023 | 3 | |
Interest, 2024 | 0 | |
Interest, Total | $ 202 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Dec. 13, 2018 | Jun. 05, 2018 | Dec. 21, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Nov. 29, 2018 | Nov. 21, 2017 | Jun. 30, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Options granted | 0 | 0 | ||||||
Options outstanding | 595,000 | 651,000 | 680,142 | |||||
Share-based compensation, amount recognized | $ 1,000 | $ 8,000 | ||||||
Unrecognized compensation cost | 0 | |||||||
Aggregate intrinsic value of options exercisable | 74,000 | 0 | ||||||
Aggregate intrinsic value of options outstanding | $ 74,000 | 0 | ||||||
Stock repurchased during period, shares | 300,000 | 359,959 | ||||||
Stock repurchased during period, value | $ 383,000 | $ 3,072,000 | ||||||
Additional shares authorized for purchase | 450,000 | 390,041 | ||||||
Stock repurchased during period value excluding fees and expenses | $ 372,000 | |||||||
Common Stock [Member] | Director [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Stock repurchased during period, shares | 70,000 | |||||||
Stock repurchased during period, value | $ 98,000 | |||||||
Repurchase of common shares per share | $ 1.40 | |||||||
Common Share Purchase Tender Offer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common share purchase price per share | $ 1.60 | $ 1.60 | ||||||
Number of shares tendered | 3,726,000 | |||||||
Stock repurchased during period, shares | 1,746,000 | |||||||
Stock repurchased during period, value | $ 2,794,000 | |||||||
Share purchase program expiration date | Dec. 21, 2017 | |||||||
2005 Equity Incentive Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Plan, Description | The 2005 Equity Incentive Plan was approved by SunLink’s shareholders at the Annual Meeting of Shareholders on November 7, 2005. This plan permitted the grant of options to employees, non-employee directors and service providers of SunLink for the purchase of up to 800,000 common shares plus the number of unused shares under the 2001 Plans, which is 30,675, by November 2015. | |||||||
Options granted | 0 | 0 | ||||||
Options exercised | 0 | |||||||
Options outstanding | 345,000 | |||||||
Share options to be granted for each restricted share award | 4 | |||||||
Terms of award | This Plan restricted the number of Incentive Stock Options to 700,000 shares and Restricted Stock Awards to 200,000 shares. | |||||||
2005 Equity Incentive Plan [Member] | Incentive Stock Options [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of Shares, Restricted | 700,000 | |||||||
2005 Equity Incentive Plan [Member] | Restricted Stock Awards [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of Shares, Restricted | 200,000 | |||||||
Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares authorized to be repurchased | 300,000 | |||||||
Maximum [Member] | 2005 Equity Incentive Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Purchase of common shares | 800,000 | |||||||
2011 Director Stock Option Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Plan, Description | The 2011 Director Stock Option Plan was approved by SunLink’s shareholders at the Annual Meeting of Shareholders on November 7, 2011. This plan permits the grant of options to non-employee directors of SunLink for the purchase of up to 300,000 common shares through November 2021. | |||||||
Options granted | 0 | 0 | ||||||
Options exercised | 0 | |||||||
Options outstanding | 250,000 | |||||||
Shares available for grants | 50,000 | |||||||
2011 Director Stock Option Plan [Member] | Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Purchase of common shares | 300,000 | |||||||
2001 Plans [Member] | 2005 Equity Incentive Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares restricted under share based plan | 30,675 |
Shareholders' Equity - Activity
Shareholders' Equity - Activity of Company's Share Options (Detail) - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number of Shares, Options outstanding, Beginning balance | 651,000 | 680,142 |
Number of Shares, Granted | 0 | 0 |
Number of Shares, Forfeited | (56,000) | (29,142) |
Number of Shares, Options outstanding, Ending balance | 595,000 | 651,000 |
Exercisable, Number of Shares, Options outstanding, Ending balance | 595,000 | 636,000 |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 1.52 | $ 1.80 |
Weighted Average Exercise Price, Forfeited | 1.46 | 8 |
Options Outstanding, Weighted Average Exercise Price, Ending Balance | 1.53 | 1.52 |
Exercisable, Weighted Average Exercise Price, Ending balance | 1.53 | 1.52 |
Range of Exercise Prices, Forfeited | 8 | |
Minimum [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Outstanding Options, Range of Exercise Prices, Beginning balance | 0.71 | 0.71 |
Range of Exercise Prices, Forfeited | 0.71 | |
Outstanding Options, Range of Exercise Prices, Ending balance | 0.71 | 0.71 |
Exercisable, Range of Exercise Prices, Ending balance | 0.71 | 0.71 |
Maximum [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Outstanding Options, Range of Exercise Prices, Beginning balance | 2.51 | 8 |
Range of Exercise Prices, Forfeited | 2.51 | |
Outstanding Options, Range of Exercise Prices, Ending balance | 2.09 | 2.51 |
Exercisable, Range of Exercise Prices, Ending balance | $ 2.09 | $ 2.51 |
Shareholders' Equity - Number o
Shareholders' Equity - Number of Stock Options Outstanding and Exercisable (Detail) - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices | $ 1.53 | $ 1.52 | $ 1.80 |
Number Outstanding | 595,000 | 651,000 | 680,142 |
Weighted-Average Remaining Contractual Life (in years) | 4 years 3 days | ||
Number Exercisable | 595,000 | 636,000 | |
Range One [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices | $ 0.71 | ||
Number Outstanding | 15,000 | ||
Weighted-Average Remaining Contractual Life (in years) | 4 years 2 months 19 days | ||
Number Exercisable | 15,000 | ||
Range Two [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices | $ 1.21 | ||
Number Outstanding | 60,000 | ||
Weighted-Average Remaining Contractual Life (in years) | 7 years 2 months 15 days | ||
Number Exercisable | 60,000 | ||
Range Three [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices | $ 1.22 | ||
Number Outstanding | 190,000 | ||
Weighted-Average Remaining Contractual Life (in years) | 3 years 2 months 4 days | ||
Number Exercisable | 190,000 | ||
Range Four [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices | $ 1.49 | ||
Number Outstanding | 90,000 | ||
Weighted-Average Remaining Contractual Life (in years) | 5 years 2 months 8 days | ||
Number Exercisable | 90,000 | ||
Range Five [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices | $ 1.67 | ||
Number Outstanding | 50,000 | ||
Weighted-Average Remaining Contractual Life (in years) | 2 years 4 months 13 days | ||
Number Exercisable | 50,000 | ||
Range Six [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices | $ 1.79 | ||
Number Outstanding | 70,000 | ||
Weighted-Average Remaining Contractual Life (in years) | 6 years 2 months 12 days | ||
Number Exercisable | 70,000 | ||
Range Seven [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Exercise Prices | $ 2.09 | ||
Number Outstanding | 120,000 | ||
Weighted-Average Remaining Contractual Life (in years) | 2 years 2 months 12 days | ||
Number Exercisable | 120,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Total Share Repurchased and Average Price Per Share Paid for the Program (Detail) - $ / shares | Dec. 13, 2018 | Jun. 30, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total Shares Purchased | 300,000 | 359,959 |
Average Price Per Share Paid | $ 1.03 | |
November 2018 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total Shares Purchased | 1,235 | |
Average Price Per Share Paid | $ 1.14 | |
December 2018 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total Shares Purchased | 358,724 | |
Average Price Per Share Paid | $ 1.03 |
Shareholders' Equity - Classifi
Shareholders' Equity - Classification Other Accumulated Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Minimum Pension Liability Adjustment, Beginning balance | $ (177) | $ (327) |
Minimum Pension Liability Adjustment, Current period change | (76) | 150 |
Minimum Pension Liability Adjustment, Ending balance | (253) | (177) |
Accumulated Other Comprehensive Income (Loss), Beginning balance | (177) | (327) |
Accumulated Other Comprehensive Income (Loss), Current period change | (76) | 150 |
Accumulated Other Comprehensive Income (Loss), Ending balance | $ (253) | $ (177) |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes on Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 0 | $ 0 |
Deferred | (82) | (345) |
Total income tax expense (benefit) | $ (82) | $ (345) |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred Tax Assets Net [Abstract] | ||
Net operating loss carryforward | $ 6,766 | $ 6,367 |
Depreciation expense | 46 | (97) |
Allowances for receivables | 125 | 111 |
Accrued expenses | 603 | 617 |
Intangible assets | 877 | 1,185 |
Pension liabilities | 141 | 132 |
Other | 67 | 58 |
Gross deferred tax assets | 8,625 | 8,373 |
Less valuation allowance | (8,625) | (8,373) |
Net deferred income tax assets | $ 0 | $ 0 |
Income Taxes - Differences Betw
Income Taxes - Differences Between Income Taxes on Continuing Operations at Federal Statutory Rate and Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit at Federal statutory rate | $ (436) | $ (407) |
Changes in valuation allowance—continuing operations | 378 | (2,889) |
U.S. state income taxes, net of federal benefit | (45) | 1 |
Deferred tax rate changes | 32 | 2,971 |
Other | (11) | (21) |
Total income tax expense (benefit) | $ (82) | $ (345) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Deferred income tax valuation allowance | $ 8,625,000 | $ 8,373,000 |
Net long-term deferred income tax asset or liability | 0 | |
Net operating loss carry-forward | $ 16,700,000 | |
Net operating loss carryforward expiration year | 2023 through fiscal 2038 | |
Discrete net tax benefit | 0 | |
Federal tax rate percentage | 21.00% | |
Net tax benefit due to valuation allowance position | $ 0 | |
Provisional estimate | $ 0 | |
Federal alternative minimum tax, tax credits | 305,000 | |
Additional income tax expense benefit | 40,000 | |
Federal alternative minimum tax, tax credits | $ 296,000 | |
Tax Cuts and Jobs Act, Accounting Complete | true |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan's assets invested in cash and short term investments | 44.00% | |
Plan's assets invested in equity investments | 38.00% | |
Plan's assets invested in fixed income investments | 18.00% | |
Expected return on investment | 4.00% | |
Plan expected to pay in pension benefits, 2020 | $ 88,000 | |
Plan expected to pay in pension benefits, 2021 | 50,000 | |
Plan expected to pay in pension benefits, 2022 | 48,000 | |
Plan expected to pay in pension benefits, 2023 | 59,000 | |
Plan expected to pay in pension benefits, 2024 | 57,000 | |
Plan expected to pay in pension benefits through three years | 430,000 | |
Contribution by employer | 107,000 | $ 100,000 |
Estimated contribution by employer, next fiscal year | $ 132,000 | |
Age of participants to take monthly pension benefits | 65 years | |
Plan expenses for defined contribution plan | $ 0 | 0 |
Employee matching contribution | 85,000 | $ 157,000 |
Specialty Pharmacy Segment [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit plan maintained for employees | 0 | |
Healthcare Services Segment [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit plan maintained for employees | $ 0 |
Employee Benefits - Components
Employee Benefits - Components of Net Pension Expense for All Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | $ 56 | $ 55 |
Weighted-average assumptions: | ||
Discount rate | 4.10% | 3.80% |
Expected return on plan assets | 4.00% | 4.00% |
Rate of compensation increase | 0.00% | 0.00% |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 56 | 55 |
Expected return on assets | (36) | (36) |
Amortization of prior service cost | 78 | 125 |
Settlement cost | 39 | 15 |
Net pension expense | $ 137 | $ 159 |
Employee Benefits - Summary Inf
Employee Benefits - Summary Information for Plans (Comprised Solely of One Domestic Plan) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Change in Benefit Obligation: | ||
Benefit obligation at beginning of year | $ 1,420 | $ 1,506 |
Interest cost | 56 | 55 |
Actuarial (gain)loss | 90 | (47) |
Benefits paid | (176) | (94) |
Benefit obligation end of year | 1,390 | 1,420 |
Change in Fair Value of Plan Assets: | ||
Beginning fair value | 895 | 891 |
Actual return on plan assets | 1 | (2) |
Contribution by employer | 107 | 100 |
Benefits paid | (176) | (94) |
Plan assets at end of year | 827 | 895 |
Funded status of the plans | (563) | (525) |
Unrecognized actuarial loss | 384 | 376 |
Prepaid (accrued) benefit cost | (179) | (149) |
Amounts Recognized in Consolidated Balance Sheets | ||
Prepaid (accrued) benefit cost | (179) | (149) |
Accumulated other comprehensive loss | 384 | 376 |
Net amount recognized | $ (563) | $ (525) |
Economic Damages - Additional I
Economic Damages - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | ||
Gain on economic damages claim, net | $ 22 | $ 944 |
Pharmacy Segment [Member] | ||
Loss Contingencies [Line Items] | ||
Gain on economic damages claim, net | $ 22 | $ 944 |
Sale of Assets - Additional Inf
Sale of Assets - Additional Information (Detail) $ in Thousands | Oct. 11, 2018USD ($)a | Jan. 11, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Sale of Assets [Line Items] | ||||
Proceeds from sale | $ 6,899 | $ 0 | ||
Pre-tax gain on the sale of property | 455 | 194 | ||
Carmichael's Cashway Pharmacy, Inc [Member] | ||||
Sale of Assets [Line Items] | ||||
Proceeds from sale | $ 410 | |||
Pre-tax gain on the sale of property | $ 183 | |||
Medical Office Building And Undeveloped Land [Member] | ||||
Sale of Assets [Line Items] | ||||
Undeveloped land sold | a | 2 | |||
Proceeds from sale | $ 935 | |||
Pre-tax gain on the sale of property | $ 452 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Commitment And Contingencies [Line Items] | ||
Rent expense | $ 609 | $ 615 |
Minimum [Member] | ||
Commitment And Contingencies [Line Items] | ||
Operating lease obligations, noncancelable terms | 1 year | |
Maximum [Member] | ||
Commitment And Contingencies [Line Items] | ||
Operating lease obligations, noncancelable terms | 7 years |
Commitments and Contingencies_2
Commitments and Contingencies - Minimum Lease Commitments (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2020 | $ 592 |
2021 | 330 |
2022 | 129 |
2023 | 3 |
2024 | 0 |
Total | $ 1,054 |
Sales Tax Payable - Additional
Sales Tax Payable - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Payables And Accruals [Abstract] | ||
Sales tax accrued | $ 843 | $ 241 |
Related Parties - Additional In
Related Parties - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 13, 2018 | Jun. 05, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Related Party Transaction [Line Items] | ||||
Purchase of common shares | 300,000 | 359,959 | ||
Total cost of share purchased | $ 383 | $ 3,072 | ||
Common Shares [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase of common shares | 360 | 1,816 | ||
Total cost of share purchased | $ 180 | $ 908 | ||
Common Shares [Member] | Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Purchase of common shares | 70,000 | |||
Repurchase of common shares per share | $ 1.40 | |||
Total cost of share purchased | $ 98 | |||
Management [Member] | ||||
Related Party Transaction [Line Items] | ||||
Legal services to these law firms | 306 | 229 | ||
Amount payable to law firms | $ 47 | $ 10 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Thousands | Sep. 09, 2019USD ($)aEmployee$ / sharesshares | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares |
Subsequent Event [Line Items] | ||||
Proceeds from sale | $ | $ 6,899 | $ 0 | ||
Pre-tax gain on the sale of property | $ | $ 455 | $ 194 | ||
Unexpired stock options issued and forfeited | shares | 56,000 | 29,142 | ||
Unexpired stock option exercise price | $ / shares | $ 1.46 | $ 8 | ||
Subsequent Event [Member] | 2005 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of employees forfeited unexpired stock option | Employee | 2 | |||
Subsequent Event [Member] | Non-employee Directors [Member] | 2011 Director Stock Option Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Share options issued | shares | 50,000 | |||
Common share purchase price per share | $ / shares | $ 1.38 | |||
Share options issued to each non-employee directors | shares | 10,000 | |||
Subsequent Event [Member] | Two Employees {Member] | 2005 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Unexpired stock options issued and forfeited | shares | 165,000 | |||
Subsequent Event [Member] | Employee One [Member] | 2005 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Unexpired stock option exercise price | $ / shares | $ 1.79 | |||
Subsequent Event [Member] | Employee Two [Member] | 2005 Equity Incentive Plan [Member] | ||||
Subsequent Event [Line Items] | ||||
Unexpired stock option exercise price | $ / shares | $ 2.09 | |||
Undeveloped Land [Member] | Scenario, Forecast [Member] | ||||
Subsequent Event [Line Items] | ||||
Pre-tax gain on the sale of property | $ | $ 100 | |||
Undeveloped Land [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Undeveloped land sold | a | 11.4 | |||
Proceeds from sale | $ | $ 348 |
Financial Information by Segm_3
Financial Information by Segments - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Financial Information by Segm_4
Financial Information by Segments - Segment Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Net Revenues from external customers | $ 45,618 | $ 45,209 |
Operating loss | (2,314) | (1,112) |
Depreciation and amortization | 1,486 | 1,531 |
Assets | 24,419 | 26,176 |
Expenditures for property, plant and equipment | 1,272 | 1,132 |
Operating Segments [Member] | Healthcare Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues from external customers | 15,453 | 15,745 |
Operating loss | (538) | 687 |
Depreciation and amortization | 336 | 339 |
Assets | 7,612 | 13,991 |
Expenditures for property, plant and equipment | 309 | 318 |
Operating Segments [Member] | Pharmacy Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues from external customers | 30,165 | 29,464 |
Operating loss | 147 | (119) |
Depreciation and amortization | 1,147 | 1,189 |
Assets | 8,273 | 7,937 |
Expenditures for property, plant and equipment | 961 | 814 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net Revenues from external customers | 0 | 0 |
Operating loss | (1,923) | (1,680) |
Depreciation and amortization | 3 | 3 |
Assets | 8,534 | 4,248 |
Expenditures for property, plant and equipment | $ 2 | $ 0 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings (Loss) Per Share and Shares Outstanding (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Loss from continuing operations | $ (1,996) | $ (226) |
Weighted-average number of shares outstanding—basic | 7,149 | 8,283 |
Weighted-average number of shares outstanding—diluted | 7,149 | 8,283 |
Earnings (loss) from discontinued operations | $ 242 | $ (1,367) |
Net loss | $ (1,754) | $ (1,593) |
Effect of dilutive director, employee and guarantor options and outstanding common share warrants | 0 | 0 |
Weighted-average shares outstanding, per share | $ (0.28) | $ (0.03) |
Weighted-average shares outstanding, per share | (0.28) | (0.03) |
Weighted-average shares outstanding, per share | 0.03 | (0.17) |
Weighted-average shares outstanding, per share | 0.03 | (0.17) |
Weighted-average shares outstanding, per share | (0.25) | (0.19) |
Weighted-average shares outstanding, per share | $ (0.25) | $ (0.19) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Share options not included in diluted earnings per share | 31 | 61 |