Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 14, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SUNLINK HEALTH SYSTEMS INC | |
Entity Central Index Key | 0000096793 | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
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 File Number | 1-12607 | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 31-0621189 | |
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 | GA | |
Entity Address, Postal Zip Code | 30339 | |
City Area Code | 770 | |
Local Phone Number | 933-7000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | SSY | |
Title of 12(b) Security | Common Shares without par value | |
Security Exchange Name | NYSEAMER | |
Preferred Share Purchase Rights [Member] | ||
Document Information [Line Items] | ||
No Trading Symbol Flag | true | |
Title of 12(b) Security | Preferred Share Purchase Rights |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 7,670 | $ 7,742 |
Receivables – net | 5,136 | 4,715 |
Inventory | 1,989 | 2,016 |
Prepaid expense and other assets | 2,271 | 2,185 |
Total current assets | 17,066 | 16,658 |
Property, plant and equipment, at cost | 19,742 | 19,520 |
Less accumulated depreciation | 14,553 | 14,277 |
Property, plant and equipment – net | 5,189 | 5,243 |
Noncurrent Assets: | ||
Intangible assets – net | 1,324 | 1,353 |
Income tax receivable | 153 | 153 |
Assets held for sale | 0 | 249 |
Right of use assets | 1,317 | 0 |
Other noncurrent assets | 762 | 763 |
Total noncurrent assets | 3,556 | 2,518 |
TOTAL ASSETS | 25,811 | 24,419 |
Current liabilities: | ||
Accounts payable | 1,555 | 1,564 |
Current maturities of long-term debt, net of debt issuance costs | 2,772 | 2,836 |
Accrued payroll and related taxes | 2,195 | 1,960 |
Accrued sales tax payable | 1,061 | 843 |
Current operating lease liabilities | 498 | 0 |
Other accrued expenses | 1,164 | 1,207 |
Total current liabilities | 9,245 | 8,410 |
Long-Term Liabilities | ||
Long-term debt, net of debt issuance costs | 115 | 127 |
Noncurrent liability for professional liability risks | 662 | 705 |
Long-term operating lease liabilities | 822 | 0 |
Other noncurrent liabilities | 157 | 134 |
Total long-term liabilities | 1,756 | 966 |
Commitment and Contingencies | ||
Shareholders’ Equity | ||
Preferred Shares, authorized and unissued, 2,000 shares | 0 | 0 |
Issued and outstanding, 6,987 shares at September 30, 2019 and at June 30, 2019 | 3,493 | 3,493 |
Additional paid-in capital | 10,773 | 10,745 |
Retained earnings | 797 | 1,058 |
Accumulated other comprehensive loss | (253) | (253) |
Total Shareholders’ Equity | 14,810 | 15,043 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 25,811 | $ 24,419 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
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, issued | 6,987,000 | 6,987,000 |
Common shares, outstanding | 6,987,000 | 6,987,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Earnings (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net revenues | $ 11,652 | $ 10,207 |
Costs and Expenses | ||
Salaries, wages and benefits | 4,909 | 4,674 |
Supplies | 319 | 288 |
Other operating expenses | 1,103 | 1,013 |
Rent and lease expense | 159 | 135 |
Depreciation and amortization | 335 | 338 |
Operating Loss | (220) | (727) |
Other Income (Expense): | ||
Gains on sale of assets | 107 | 2 |
Interest expense, net | (30) | (61) |
Loss from Continuing Operations before income taxes | (143) | (786) |
Income Tax Benefit | 0 | 0 |
Loss from Continuing Operations | (143) | (786) |
Loss from Discontinued Operations, net of tax | (118) | (94) |
Net Loss | (261) | (880) |
Other comprehensive income | 0 | 0 |
Comprehensive Loss | $ (261) | $ (880) |
Continuing Operations: | ||
Basic | $ (0.02) | $ (0.11) |
Diluted | (0.02) | (0.11) |
Discontinued Operations: | ||
Basic | (0.02) | (0.01) |
Diluted | (0.02) | (0.01) |
Net Loss: | ||
Basic | (0.04) | (0.12) |
Diluted | $ (0.04) | $ (0.12) |
Weighted-Average Common Shares Outstanding: | ||
Basic | 6,987 | 7,347 |
Diluted | 6,987 | 7,347 |
Product [Member] | ||
Costs and Expenses | ||
Cost of goods sold | $ 4,344 | $ 3,917 |
Service [Member] | ||
Costs and Expenses | ||
Cost of goods sold | $ 703 | $ 569 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Cash Flows [Abstract] | ||
Net Cash Provided by (Used in) Operating Activities | $ (95) | $ 458 |
Cash Flows Provided by (Used in) Investing Activities: | ||
Expenditures for property, plant and equipment - continuing Operations | (251) | (412) |
Expenditures for property, plant and equipment - discontinued Operations | 0 | (44) |
Proceeds from sale of other assets | 355 | 2 |
Net Cash Provided by (Used in) Investing Activities | 104 | (454) |
Cash Flows Used in Financing Activities: | ||
Payments on long-term debt | (81) | (67) |
Net Cash Used in Financing Activities | (81) | (67) |
Net Decrease in Cash and Cash Equivalents | (72) | (63) |
Cash and Cash Equivalents Beginning of Period | 7,742 | 3,456 |
Cash and Cash Equivalents End of Period | 7,670 | 3,393 |
Cash Paid for: | ||
Interest | 52 | 55 |
Income taxes | (11) | 0 |
Non-cash investing and financing activities: | ||
Assets acquired under capital lease obligations | $ 0 | $ 0 |
Basis of Presentation and Adopt
Basis of Presentation and Adoption of Recently Issued Accounting Standards | 3 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Adoption of Recently Issued Accounting Standards | Note 1. –Basis of Presentation and Adoption of Recently Issued Accounting Standards Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements as of September 30, 2019 and for the three month periods ended September 30, 2019 and 2018 have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and, as such, do not include all information required by accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated June 30, 2019 balance sheet included in this interim filing has been derived from the audited financial statements at that date but does not include all of the information and related notes required by GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements included in the SunLink Health Systems, Inc. (“SunLink”, “we”, “our”, “ours”, “us” or the “Company”) Annual Report on Form 10-K for the fiscal year ended June 30, 2019, filed with the SEC on September 27, 2019. In the opinion of management, the Condensed Consolidated Financial Statements, which are unaudited, include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position and results of operations for the periods indicated. The results of operations for the three month period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. 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 particular asset, business or property. Each operation and business described in this filing is owned and operated by a distinct and indirect subsidiaries of SunLink Health System, Inc. Adoption of Recently Issued Accounting Standards ASC 842, “Leases” – On July 1, 2019, the Company adopted cumulative accounting standard updates initially issued by the Financial Accounting Standards Board (“FASB”) that amend the accounting for leases and are codified as Accounting Standards Codification (“ASC”) 842. These lease accounting changes require operating leases be recorded on the balance sheet through the recognition of a liability for the discounted present value of future fixed lease payments and a corresponding right-of-use (“ROU”) asset. The Company’s accounting for finance leases remained substantially unchanged from its prior accounting for capital leases. The ROU asset recorded at commencement of the lease represents the right to use the underlying asset over the lease term in exchange for the lease payments. Leases with an initial term of 12 months or less which do not have an option to purchase the underlying asset that is deemed reasonably certain to be exercised are not recorded on the balance sheet; rather, rent expense for these leases is recognized on a straight-line basis over the lease term, or when incurred if a month-to-month lease. When readily determinable, the Company uses the interest rate implicit in a lease to determine the present value of future lease payments. For leases where the implicit rate is not readily determinable, the Company’s incremental borrowing rate is utilized. Our lease agreements do not contain any material residual value guarantees. The Company elected the amended transition requirements allowed for by the FASB in Accounting Standards Update (“ASU”) 2018-11, which provides relief from requirements to recast prior comparative periods under ASC 842. As a result, the prior year comparative financial statements have not been restated to reflect the adoption of ASC 842. Additionally, the Company elected the “package of practical expedients” available in ASC 842 whereby an entity need not reassess expired contracts for lease identification or classification as a finance or operating lease, or reassess the initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. Certain of the Company’s lease agreements have lease and non-lease components, which for the majority of leases the Company accounts for separately when the actual lease and non-lease components are determinable. For equipment leases with immaterial non-lease components incorporated into the fixed rent payment, the Company accounts for the lease and non-lease components as a single lease component in determining the lease payment. The adoption of ASC 842 on July 1, 2019 resulted in the Company recording $1,423 of operating lease liabilities and an equal amount of ROU assets with no impact on retained earnings. The adoption did not have a material impact on the Company’s condensed consolidated statement of operations or condensed consolidated statement of cash flows for the three months ended September 30, 2019. |
Business Operations
Business Operations | 3 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business Operations | Note 2. – Business Operations Business Operations SunLink Health Systems, Inc., through subsidiaries 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 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. . |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 3. – Discontinued Operations All of the businesses discussed in the note below are reported as discontinued operations and the condensed consolidated financial statements for all prior periods have been adjusted to reflect this presentation. Results for all of the businesses included in discontinued operations are presented in the following table: Three Months Ended September 30, 2019 2018 Net Revenues: Parkside $ 14 $ 1,845 Sold Hospitals 10 7 $ 24 $ 1,852 Loss before income taxes: Parkside $ (60 ) $ (58 ) Sold Hospitals (33 ) (11 ) Life sciences and engineering (25 ) (25 ) Earnings (Loss) from operations before income taxes (118 ) (94 ) Income tax expense 0 0 Earnings (Loss) from discontinued operations $ (118 ) $ (94 ) 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 was $2,136 in the fiscal year ended June 30, 2019. 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 hospital (“Sold Hospitals”) during the period July 2, 2012 to August 19, 2016. The loss before income taxes of the Sold Hospitals results primarily from the effects of retained professional liability insurance and 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 three months ended September 30, 2019 and 2018, respectively. The components of pension expense for the three months ended September 30, 2019 and 2018, respectively, were as follows: Three Months Ended September 30, 2019 2018 Interest Cost $ 14 $ 14 Expected return on assets (9 ) (9 ) Amortization of prior service cost 20 20 Net pension expense $ 25 $ 25 SunLink contributed $33 to the plan in the three months ended September 30, 2019 and expects to contribute an additional $100 during the remaining three fiscal quarters of the fiscal year ending June 30, 2020. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Sep. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
Shareholders' Equity | Note 4. – Shareholders’ Equity 2018 Common Share Repurchase Program – On November 29, 2018, the Company announced a share repurchase program (“2018 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 2018 Program, and that its Board of Directors had authorized an additional 450,000 shares to be purchased under the 2018 Program. As of September 30, 2019, a total of 359,959 shares had been repurchased at a cost of $372, excluding fees and expenses relating to the offer. A total of 359,959 shares were purchased in open market transactions or privately negotiation transactions pursuant to the 2018 Program before its termination on October 3, 2019. The chart below shows by month the total shares repurchased and average price per share paid for the 2018 Program prior to its termination. 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 2019 Common Share Repurchase Program – On October 8, 2019, the Company announced a share repurchase program (“2019 Program”) approved by its Board of Directors which authorizes the Company to purchase up to $750 of its common shares in the open market. As of the date of this filing, no shares have been repurchased under the 2019 Program. Stock-Based Compensation – For the three months ended September 30, 2019 and 2018, the Company recognized $28 and $1, respectively, in stock-based compensation for options issued to employees and directors of the Company. The fair value of the share options granted was estimated using the Black-Scholes option-pricing model. There were 50,000 share options granted under the 2011 Director Stock Option Plan during the three months ended September 30, 2019, and no shares granted under the 2011 Director Stock Option Plan during the three months ended September 30, 2018. |
Revenue and Accounts Receivable
Revenue and Accounts Receivables | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Revenue And Accounts Receivable | Note 5. – Revenue and Accounts Receivables Revenues by payor were as follows for the three months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 2018 Medicare $ 5,064 $ 4,210 Medicaid 3,183 2,998 Retail and Institutional Pharmacy 1,699 1,633 Managed Care & Other Insurance 1,519 1,121 Self-pay 148 199 Rent 10 14 Other 29 32 Total Net Revenues $ 11,652 $ 10,207 Summary information for accounts receivable is as follows: September 30, 2019 June 30, 2019 Accounts receivable (net of contractual allowances) $ 5,598 $ 5,230 Less allowance for concession adjustments (462 ) (515 ) Patient accounts receivable - net $ 5,136 $ 4,715 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 three months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 Healthcare Services Pharmacy Total Balance at July 1, 2019 $ 331 $ 184 $ 515 Additions recognized as a reduction to revenues: Continuing Operations 49 63 112 Discontinued Operations (20 ) 0 (20 ) Accounts written off, net of recoveries (74 ) (71 ) (145 ) Balance at September 30, 2019 $ 286 $ 176 $ 462 Three Months Ended September 30, 2018 Healthcare Services Pharmacy Total Balance at July 1, 2018 $ 253 $ 276 $ 529 Additions recognized as a reduction to revenues: Continuing Operations 47 103 150 Discontinued Operations (19 ) 0 (19 ) Accounts written off, net of recoveries (96 ) (113 ) (209 ) Balance at September 30, 2018 $ 185 $ 266 $ 451 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6. – Intangible Assets Intangibles consist of the following, net of amortization: September 30, 2019 June 30, 2019 Pharmacy Segment Intangibles Trade Name (non-amortizing) $ 1,180 $ 1,180 Customer Relationships 1,089 1,089 Medicare License 623 623 2,892 2,892 Accumulated Amortization (1,568 ) (1,539 ) Net Intangibles $ 1,324 $ 1,353 Amortization expense was $29 and $29 for the three months ended September 30, 2019 and 2018, respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7. –Long-Term Debt Long-term debt consisted of the following: September 30, 2019 June 30, 2019 Trace RDA Loan $ 2,928 $ 2,999 Capital Lease 148 159 Less unamortized debt issuance costs (189 ) (195 ) Less current maturities (2,772 ) (2,836 ) Long-term Debt $ 115 $ 127 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. The Trace RDA Loan interest rate is the prime rate (as published in the Wall Street Journal) plus 1% with a floor of 5.5%, (6.0% at September 30, 2019). The Trace RDA Loan is collateralized by real estate and equipment of Trace and is partially guaranteed under the U.S. Department of Agriculture, Rural Development Business and Industry Program. The Trace RDA Loan contains various covenants, terms and conditions, including financial restrictions and limitations, and affirmative and negative covenants and is guaranteed by SunLink. The covenants include financial covenants measured on a quarterly basis that require Trace to comply with a ratio of current assets to current liabilities, debt service coverage, fixed charge ratio, and funded debt to EBITDA, all as defined in the Trace RDA Loan. 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 filing this report. Trace was in compliance with the covenants as measured at September 30, 2019, but since the non-compliance for June 30, 2019 has not been waived, the entire amount of the Trace RDA loan is classified as current at September 30, 2019. 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 ability of Trace to continue to make the required debt service payments under the Trace RDA Loan depends on, among other things, available cash resources and its ability to retain or generate sufficient cash, including from operating activities and asset sales. If available cash resources were at any time insufficient or Trace were unable to retain or 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. On October 7, 2019, the Company made a $2,500 pre-payment on the Trace RDA loan. The pre-payment was made with cash on hand. The Company expects to report in the quarter ended December 31, 2019 a non-cash loss on early extinguishment of debt relating to the pre-payment of approximately $160. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. – Income Taxes Income tax benefit of $0 ($0 federal and state tax expense) and income tax expense of $0 ($0 federal tax expense and state tax expense) was recorded for continuing operations for the three months ended September 30, 2019 and 2018, respectively. 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. At September 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 $8,673 against the deferred tax asset so that there is no net long-term deferred income tax asset or liability at September 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 September 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 September 30, 2019, the Company had approximately $18,200 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. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 9. – Leases The Company has operating leases and a financing lease relating to its pharmacy operations, medical office buildings, certain medical equipment and office equipment. All lease agreements generally require the Company to pay maintenance, repairs, property taxes and insurance costs, which are variable amounts based on actual costs. Variable lease costs also include escalating rent payments that are not fixed at commencement but are based on an index determined in future periods over the lease term based on changes in the Consumer Price Index or other measure of cost inflation. Some leases include one or more options to renew the lease at the end of the initial term, with renewal terms that generally extend the lease at the then market rental rates. Leases may also include an option to buy the underlying asset at or a short time prior to the termination of the lease. All such options are at the Company’s discretion and are evaluated at the commencement of the lease, with only those that are reasonably certain of exercise included in determining the appropriate lease term. The components of lease cost and rent expense for the three months ended September 30, 2019 are as follows: Three Months Ended Lease Cost September 30, 2019 Operating lease cost: Operating lease cost $ 147 Short-term rent expense 5 Variable lease cost 7 Total operating lease cost $ 159 Finance lease cost: Amortization right-of-use assets $ 9 Interest on finance lease liabilities 3 Total finance lease cost $ 12 Supplemental balance sheet information to leases was as follows: As of Balance Sheet Classifications September 30, 2019 Operating Leases: Operating Lease ROU Assets ROU Assets $ 1,317 Finance Leases: Finance Lease ROU Assets Property, plant and equipment 203 Accumulated amortization Accumulated depreciation 22 Current finance lease liabilities Current maturities of long-term debt 33 Long-term finance lease liabilities Long-term debt 115 Supplemental cash flow and other information related to leases as of and for the three months ended September 30, 2019 are as follows: Three Months Ended Other information September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 139 Operating cash flows from finance leases 3 Financing cash flow from finance leases 8 Right-of-use assets obtained in exchange for new finance lease liabilities 0 Right-of-use assets obtained in exchange for new operating lease liabilities 148 Weighted-average remaining lease term: Operating leases 4.16 years Finance leases 3.84 years Weighted-average discount rate: Operating leases 6.54 % Finance leases 5.53 % Commitments relating to non-cancellable operating and finance leases as of September 30, 2019 for each of the next five years and thereafter are as follows: Payments due within Operating Leases Finance Leases 1 year $ 579 $ 31 2 years 392 42 3 years 261 42 4 years 104 41 5+ years 271 17 Total minimum future payments 1,607 173 Less: Imputed interest (287 ) (25 ) Total liabilities 1,320 148 Less: Current portion (498 ) (33 ) Long-term liabilities $ 822 $ 115 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. – Commitments and Contingencies Contractual obligations, commitments and contingencies related to outstanding debt and interest on outstanding debt from continuing operations at September 30, 2019 were as follows: Payments due within: Long-Term Debt Interest on Outstanding Debt 1 year $ 2,961 $ 187 2 years 35 7 3 years 37 5 4 years 40 2 5+ years 3 0 $ 3,076 $ 201 Contingencies do not reflect potential amounts for claims, litigation and other uncertainties, which matters are not probable or cannot be estimated, such as for certain professional liabilities and contract matters, including those relating to prior assets sales. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11. – Related Party Transactions A director of the Company is a member of a law firm which provides services to SunLink. The Company expensed an aggregate of $118 and $76 for legal services to this law firm in the three months ended September 30, 2019 and 2018, respectively. Included in the Company’s condensed consolidated balance sheets at September 30, 2019 and June 30, 2019 is $100 and $47, respectively, of amounts payable to this law firm. |
Asset Sale
Asset Sale | 3 Months Ended |
Sep. 30, 2019 | |
Asset Sale [Abstract] | |
Asset Sale | Note 12. – Asset Sale On September 9, 2019, the Company sold approximately 11.4 acres of undeveloped land in Fulton, MO. After expenses, the Company received net proceeds from the sale of $348, which was retained for working capital and general corporate purposes. The pre-tax gain on the sale of property was $100 and is included in the Company’s three months results ended September 30, 2019. |
Financial Information by Segmen
Financial Information by Segment | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | Note 13. – Financial Information by Segment 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 SunLink’s chief executive officer and other members of SunLink’s 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). At the beginning of the current fiscal year, the Company modified the approach to certain assets, and expense allocations to calculate segment assets, operating profit and depreciation and amortization. All prior year amounts have been changed to consistently apply the changed allocation method used in the current year. Segment information as of September 30, 2019 and 2018 and for the three months then ended is as follows: Healthcare Services Pharmacy Corporate and Other Total As of and for the three months ended September 30, 2019, Net revenues from external customers $ 4,232 $ 7,420 $ 0 $ 11,652 Operating profit (loss) 168 263 (651 ) (220 ) Depreciation and amortization 88 246 1 335 Assets 8,641 8,452 8,718 25,811 Expenditures for property, plant and equipment 38 213 0 251 As of and for the three months ended September 30, 2018, Net revenues from external customers $ 3,691 $ 6,516 $ 0 $ 10,207 Operating loss (216 ) (57 ) (454 ) (727 ) Depreciation and amortization 82 256 0 338 Assets 13,451 8,067 4,195 25,713 Expenditures for property, plant and equipment 143 269 0 412 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. – Subsequent Events 2019 Common Share Repurchase Program – On October 8, 2019, the Company announced a share repurchase program approved by its Board of Directors that authorizes the Company to purchase up to $750 of its common shares in the open market. As of the date of this filing, no shares have been repurchased under this program. Trace RDA On October 7, 2019, the Company made a $2,500 pre-payment to the Trace RDA loan. The pre-payment was made with cash on hand. The Company expects to report, in the quarter ended December 31, 2019, a non-cash loss on early extinguishment of debt relating to the pre-payment of approximately $160 |
Basis of Presentation and Ado_2
Basis of Presentation and Adoption of Recently Issued Accounting Standards (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements as of September 30, 2019 and for the three month periods ended September 30, 2019 and 2018 have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (“SEC”) and, as such, do not include all information required by accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated June 30, 2019 balance sheet included in this interim filing has been derived from the audited financial statements at that date but does not include all of the information and related notes required by GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements included in the SunLink Health Systems, Inc. (“SunLink”, “we”, “our”, “ours”, “us” or the “Company”) Annual Report on Form 10-K for the fiscal year ended June 30, 2019, filed with the SEC on September 27, 2019. In the opinion of management, the Condensed Consolidated Financial Statements, which are unaudited, include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position and results of operations for the periods indicated. The results of operations for the three month period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. 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 particular asset, business or property. Each operation and business described in this filing is owned and operated by a distinct and indirect subsidiaries of SunLink Health System, Inc. |
Adoption of Recently Issued Accounting Standards | Adoption of Recently Issued Accounting Standards ASC 842, “Leases” – On July 1, 2019, the Company adopted cumulative accounting standard updates initially issued by the Financial Accounting Standards Board (“FASB”) that amend the accounting for leases and are codified as Accounting Standards Codification (“ASC”) 842. These lease accounting changes require operating leases be recorded on the balance sheet through the recognition of a liability for the discounted present value of future fixed lease payments and a corresponding right-of-use (“ROU”) asset. The Company’s accounting for finance leases remained substantially unchanged from its prior accounting for capital leases. The ROU asset recorded at commencement of the lease represents the right to use the underlying asset over the lease term in exchange for the lease payments. Leases with an initial term of 12 months or less which do not have an option to purchase the underlying asset that is deemed reasonably certain to be exercised are not recorded on the balance sheet; rather, rent expense for these leases is recognized on a straight-line basis over the lease term, or when incurred if a month-to-month lease. When readily determinable, the Company uses the interest rate implicit in a lease to determine the present value of future lease payments. For leases where the implicit rate is not readily determinable, the Company’s incremental borrowing rate is utilized. Our lease agreements do not contain any material residual value guarantees. The Company elected the amended transition requirements allowed for by the FASB in Accounting Standards Update (“ASU”) 2018-11, which provides relief from requirements to recast prior comparative periods under ASC 842. As a result, the prior year comparative financial statements have not been restated to reflect the adoption of ASC 842. Additionally, the Company elected the “package of practical expedients” available in ASC 842 whereby an entity need not reassess expired contracts for lease identification or classification as a finance or operating lease, or reassess the initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. Certain of the Company’s lease agreements have lease and non-lease components, which for the majority of leases the Company accounts for separately when the actual lease and non-lease components are determinable. For equipment leases with immaterial non-lease components incorporated into the fixed rent payment, the Company accounts for the lease and non-lease components as a single lease component in determining the lease payment. The adoption of ASC 842 on July 1, 2019 resulted in the Company recording $1,423 of operating lease liabilities and an equal amount of ROU assets with no impact on retained earnings. The adoption did not have a material impact on the Company’s condensed consolidated statement of operations or condensed consolidated statement of cash flows for the three months ended September 30, 2019. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | Results for all of the businesses included in discontinued operations are presented in the following table: Three Months Ended September 30, 2019 2018 Net Revenues: Parkside $ 14 $ 1,845 Sold Hospitals 10 7 $ 24 $ 1,852 Loss before income taxes: Parkside $ (60 ) $ (58 ) Sold Hospitals (33 ) (11 ) Life sciences and engineering (25 ) (25 ) Earnings (Loss) from operations before income taxes (118 ) (94 ) Income tax expense 0 0 Earnings (Loss) from discontinued operations $ (118 ) $ (94 ) |
Components of Pension Expense | The components of pension expense for the three months ended September 30, 2019 and 2018, respectively, were as follows: Three Months Ended September 30, 2019 2018 Interest Cost $ 14 $ 14 Expected return on assets (9 ) (9 ) Amortization of prior service cost 20 20 Net pension expense $ 25 $ 25 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Federal Home Loan Banks [Abstract] | |
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 2018 Program prior to its termination. 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 |
Revenue and Accounts Receivab_2
Revenue and Accounts Receivables (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Summary of Revenues by Payor | Revenues by payor were as follows for the three months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 2018 Medicare $ 5,064 $ 4,210 Medicaid 3,183 2,998 Retail and Institutional Pharmacy 1,699 1,633 Managed Care & Other Insurance 1,519 1,121 Self-pay 148 199 Rent 10 14 Other 29 32 Total Net Revenues $ 11,652 $ 10,207 |
Summary Information for Accounts Receivable | Summary information for accounts receivable is as follows: September 30, 2019 June 30, 2019 Accounts receivable (net of contractual allowances) $ 5,598 $ 5,230 Less allowance for concession adjustments (462 ) (515 ) Patient accounts receivable - net $ 5,136 $ 4,715 |
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 three months ended September 30, 2019 and 2018: Three Months Ended September 30, 2019 Healthcare Services Pharmacy Total Balance at July 1, 2019 $ 331 $ 184 $ 515 Additions recognized as a reduction to revenues: Continuing Operations 49 63 112 Discontinued Operations (20 ) 0 (20 ) Accounts written off, net of recoveries (74 ) (71 ) (145 ) Balance at September 30, 2019 $ 286 $ 176 $ 462 Three Months Ended September 30, 2018 Healthcare Services Pharmacy Total Balance at July 1, 2018 $ 253 $ 276 $ 529 Additions recognized as a reduction to revenues: Continuing Operations 47 103 150 Discontinued Operations (19 ) 0 (19 ) Accounts written off, net of recoveries (96 ) (113 ) (209 ) Balance at September 30, 2018 $ 185 $ 266 $ 451 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangibles consist of the following, net of amortization: September 30, 2019 June 30, 2019 Pharmacy Segment Intangibles Trade Name (non-amortizing) $ 1,180 $ 1,180 Customer Relationships 1,089 1,089 Medicare License 623 623 2,892 2,892 Accumulated Amortization (1,568 ) (1,539 ) Net Intangibles $ 1,324 $ 1,353 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following: September 30, 2019 June 30, 2019 Trace RDA Loan $ 2,928 $ 2,999 Capital Lease 148 159 Less unamortized debt issuance costs (189 ) (195 ) Less current maturities (2,772 ) (2,836 ) Long-term Debt $ 115 $ 127 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Cost and Rent Expense | The components of lease cost and rent expense for the three months ended September 30, 2019 are as follows: Three Months Ended Lease Cost September 30, 2019 Operating lease cost: Operating lease cost $ 147 Short-term rent expense 5 Variable lease cost 7 Total operating lease cost $ 159 Finance lease cost: Amortization right-of-use assets $ 9 Interest on finance lease liabilities 3 Total finance lease cost $ 12 |
Summary of Supplemental Balance Sheet Information | Supplemental balance sheet information to leases was as follows: As of Balance Sheet Classifications September 30, 2019 Operating Leases: Operating Lease ROU Assets ROU Assets $ 1,317 Finance Leases: Finance Lease ROU Assets Property, plant and equipment 203 Accumulated amortization Accumulated depreciation 22 Current finance lease liabilities Current maturities of long-term debt 33 Long-term finance lease liabilities Long-term debt 115 |
Summary of Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow and other information related to leases as of and for the three months ended September 30, 2019 are as follows: Three Months Ended Other information September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 139 Operating cash flows from finance leases 3 Financing cash flow from finance leases 8 Right-of-use assets obtained in exchange for new finance lease liabilities 0 Right-of-use assets obtained in exchange for new operating lease liabilities 148 Weighted-average remaining lease term: Operating leases 4.16 years Finance leases 3.84 years Weighted-average discount rate: Operating leases 6.54 % Finance leases 5.53 % |
Summary of Non-cancellable Operating and Finance Leases | Commitments relating to non-cancellable operating and finance leases as of September 30, 2019 for each of the next five years and thereafter are as follows: Payments due within Operating Leases Finance Leases 1 year $ 579 $ 31 2 years 392 42 3 years 261 42 4 years 104 41 5+ years 271 17 Total minimum future payments 1,607 173 Less: Imputed interest (287 ) (25 ) Total liabilities 1,320 148 Less: Current portion (498 ) (33 ) Long-term liabilities $ 822 $ 115 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations, Commitments and Contingencies | Contractual obligations, commitments and contingencies related to outstanding debt and interest on outstanding debt from continuing operations at September 30, 2019 were as follows: Payments due within: Long-Term Debt Interest on Outstanding Debt 1 year $ 2,961 $ 187 2 years 35 7 3 years 37 5 4 years 40 2 5+ years 3 0 $ 3,076 $ 201 |
Financial Information by Segm_2
Financial Information by Segment (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information as of September 30, 2019 and 2018 and for the three months then ended is as follows: Healthcare Services Pharmacy Corporate and Other Total As of and for the three months ended September 30, 2019, Net revenues from external customers $ 4,232 $ 7,420 $ 0 $ 11,652 Operating profit (loss) 168 263 (651 ) (220 ) Depreciation and amortization 88 246 1 335 Assets 8,641 8,452 8,718 25,811 Expenditures for property, plant and equipment 38 213 0 251 As of and for the three months ended September 30, 2018, Net revenues from external customers $ 3,691 $ 6,516 $ 0 $ 10,207 Operating loss (216 ) (57 ) (454 ) (727 ) Depreciation and amortization 82 256 0 338 Assets 13,451 8,067 4,195 25,713 Expenditures for property, plant and equipment 143 269 0 412 |
Basis of Presentation and Ado_3
Basis of Presentation and Adoption of Recently Issued Accounting Standards - Additional Information (Detail) - USD ($) | Sep. 30, 2019 | Jul. 01, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 1,320,000 | ||
Operating lease ROU assets | $ 1,317,000 | $ 0 | |
Accounting Standards Codification (“ASC”) 842 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating lease liabilities | $ 1,423,000 | ||
Operating lease ROU assets | 1,423,000 | ||
Impact on retained earnings | $ 0 |
Business Operations - Additiona
Business Operations - Additional Information (Detail) | 3 Months Ended |
Sep. 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] | Acute Care Hospital [Member] | Mississippi [Member] | |
Business And Organization [Line Items] | |
Number of licensed-bed owned and operated by a subsidiary | 84 |
Number of bed in nursing home owned and operated by subsidiary | 66 |
Number of bed in geriatric psychology subsidiary | 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 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net Revenues: | ||
Net revenues | $ 24 | $ 1,852 |
Loss before income taxes: | ||
Loss before income taxes | (118) | (94) |
Income tax expense | 0 | 0 |
Earnings (Loss) from discontinued operations | (118) | (94) |
Parkside [Member] | ||
Net Revenues: | ||
Net revenues | 14 | 1,845 |
Loss before income taxes: | ||
Loss before income taxes | (60) | (58) |
Sold Hospitals [Member] | ||
Net Revenues: | ||
Net revenues | 10 | 7 |
Loss before income taxes: | ||
Loss before income taxes | (33) | (11) |
Life Sciences and Engineering [Member] | ||
Loss before income taxes: | ||
Loss before income taxes | $ (25) | $ (25) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 17, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
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 | ||
Life Sciences and Engineering [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Contribution to pension plan | $ 33 | ||
Expected contribution to pension plan during the remaining fiscal year | $ 100 |
Discontinued Operations - Compo
Discontinued Operations - Components of Pension Expense (Detail) - Life Sciences and Engineering [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Type [Extensible List] | us-gaap:PensionPlansDefinedBenefitMember | us-gaap:PensionPlansDefinedBenefitMember |
Interest Cost | $ 14 | $ 14 |
Expected return on assets | (9) | (9) |
Amortization of prior service cost | 20 | 20 |
Net pension expense | $ 25 | $ 25 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Nov. 14, 2019 | Oct. 03, 2019 | Dec. 13, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 08, 2019 | Nov. 29, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock repurchased during period, shares | 359,959 | ||||||
Share-based compensation, amount recognized | $ 28,000 | $ 1,000 | |||||
2011 Director Stock Option Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Options granted | 50,000 | 0 | |||||
2018 Common Share Repurchase Program [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock repurchased during period, shares | 300,000 | 359,959 | |||||
Additional shares authorized for purchase | 450,000 | ||||||
Stock repurchased during period value excluding fees and expenses | $ 372,000 | ||||||
2018 Common Share Repurchase Program [Member] | Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares authorized to be repurchased | 300,000 | ||||||
2018 Common Share Repurchase Program [Member] | Subsequent Event [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock repurchased during period, shares | 359,959 | ||||||
2019 Common Share Repurchase Program [Member] | Subsequent Event [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock repurchased during period, shares | 0 | ||||||
2019 Common Share Repurchase Program [Member] | Subsequent Event [Member] | Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Amount of shares authorized to be repurchased | $ 750,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Total Share Repurchased and Average Price Per Share Paid for the Program (Detail) | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Shares Purchased | shares | 359,959 |
Average Price Per Share Paid | $ / shares | $ 1.03 |
November 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Shares Purchased | shares | 1,235 |
Average Price Per Share Paid | $ / shares | $ 1.14 |
December 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total Shares Purchased | shares | 358,724 |
Average Price Per Share Paid | $ / shares | $ 1.03 |
Revenue and Accounts Receivab_3
Revenue and Accounts Receivables - Summary of Revenue by Payor (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | $ 11,652 | $ 10,207 |
Medicare [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 5,064 | 4,210 |
Medicaid [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 3,183 | 2,998 |
Retail and Institutional Pharmacy [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 1,699 | 1,633 |
Managed Care & Other Insurance [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 1,519 | 1,121 |
Self-Pay [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 148 | 199 |
Rent [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | 10 | 14 |
Other [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Net Revenues | $ 29 | $ 32 |
Revenue and Accounts Receivab_4
Revenue and Accounts Receivables - Summary Information for Accounts Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Receivables [Abstract] | ||||
Accounts receivable (net of contractual allowances) | $ 5,598 | $ 5,230 | ||
Less allowance for concession adjustments | (462) | (515) | $ (451) | $ (529) |
Patient accounts receivable - net | $ 5,136 | $ 4,715 |
Revenue and Accounts Receivab_5
Revenue and Accounts Receivables - Summary of Allowance for Concession Adjustments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Beginning balance | $ 515 | $ 529 |
Accounts written off, net of recoveries | (145) | (209) |
Ending balance | 462 | 451 |
Continuing Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | 112 | 150 |
Discontinued Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | (20) | (19) |
Healthcare Services Segment [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Beginning balance | 331 | 253 |
Accounts written off, net of recoveries | (74) | (96) |
Ending balance | 286 | 185 |
Healthcare Services Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | 49 | 47 |
Healthcare Services Segment [Member] | Discontinued Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | (20) | (19) |
Pharmacy Segment [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Beginning balance | 184 | 276 |
Accounts written off, net of recoveries | (71) | (113) |
Ending balance | 176 | 266 |
Pharmacy Segment [Member] | Continuing Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | 63 | 103 |
Pharmacy Segment [Member] | Discontinued Operations [Member] | ||
Segment Reporting Revenue Reconciling Item [Line Items] | ||
Additions recognized as a reduction to revenues | $ 0 | $ 0 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total | $ 1,324 | $ 1,353 |
Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross | 2,892 | 2,892 |
Accumulated Amortization | (1,568) | (1,539) |
Total | 1,324 | 1,353 |
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 | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 29 | $ 29 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||
Capital Lease | $ 148 | $ 159 |
Less unamortized debt issuance costs | (189) | (195) |
Less current maturities | (2,772) | (2,836) |
Long-term Debt | 115 | 127 |
Trace RDA Loan [Member] | ||
Debt Instrument [Line Items] | ||
Trace RDA Loan | $ 2,928 | $ 2,999 |
Long-Term Debt (Trace RDA Loan)
Long-Term Debt (Trace RDA Loan) - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 07, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Debt Instrument [Line Items] | ||||
Prepayment of loan | $ 81 | $ 67 | ||
Trace RDA Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity period | 15 years | |||
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 | 6.00% | |||
Trace RDA Loan [Member] | Scenario, Forecast [Member] | ||||
Debt Instrument [Line Items] | ||||
Non-cash loss on early extinguishment of debt | $ 160 | |||
Trace RDA Loan [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Prepayment of loan | $ 2,500 | |||
Trace RDA Loan [Member] | Mortgages [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan agreement amount | $ 9,975 | |||
Date of loan agreement | Jul. 5, 2012 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 0 | $ 0 |
Federal tax expense (benefit) | 0 | 0 |
State tax expense (benefit) | 0 | $ 0 |
Deferred income tax valuation allowance | 8,673,000 | |
Net long-term deferred income tax asset or liability | 0 | |
Net operating loss carry-forward | $ 18,200,000 | |
Net operating loss carryforward expiration year | 2023 through fiscal 2038 |
Lease - Components of Lease Cos
Lease - Components of Lease Cost and Rent Expense (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Operating lease cost: | |
Operating lease cost | $ 147 |
Short-term rent expense | 5 |
Variable lease cost | 7 |
Total operating lease cost | 159 |
Finance lease cost: | |
Amortization right-of-use assets | 9 |
Interest on finance lease liabilities | 3 |
Total finance lease cost | $ 12 |
Lease - Summary of Supplemental
Lease - Summary of Supplemental Balance Sheet Information to Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Operating Leases: | ||
Operating Lease ROU Assets | $ 1,317 | $ 0 |
Finance Leases: | ||
Finance Lease ROU Assets | $ 203 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Accumulated amortization | $ 22 | |
Current finance lease liabilities | $ 33 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtCurrent | |
Long-term finance lease liabilities | $ 115 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent |
Lease - Summary of Supplement_2
Lease - Summary of Supplemental Cash Flow and Other Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 139 |
Operating cash flows from finance leases | 3 |
Financing cash flow from finance leases | 8 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 0 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 148 |
Weighted-average remaining lease term: | |
Operating leases | 4 years 1 month 28 days |
Finance leases | 3 years 10 months 2 days |
Weighted-average discount rate: | |
Operating leases | 6.54% |
Finance leases | 5.53% |
Lease - Summary of Non-cancella
Lease - Summary of Non-cancellable Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Leases [Abstract] | ||
1 year | $ 579 | |
2 years | 392 | |
3 years | 261 | |
4 years | 104 | |
5+ years | 271 | |
Total minimum future payments | 1,607 | |
Less: Imputed interest | (287) | |
Total liabilities | 1,320 | |
Less: Current portion | (498) | $ 0 |
Long-term liabilities | 822 | $ 0 |
1 year | 31 | |
2 years | 42 | |
3 years | 42 | |
4 years | 41 | |
5+ years | 17 | |
Total minimum future payments | 173 | |
Less: Imputed interest | (25) | |
Total liabilities | 148 | |
Less: Current portion | (33) | |
Long-term finance lease liabilities | $ 115 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Contractual Obligations, Commitments and Contingencies (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Long-Term Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due within 1 year | $ 2,961 |
Payments due within 2 years | 35 |
Payments due within in 3 years | 37 |
Payments due within 4 years | 40 |
Payments due within 5+ years | 3 |
Contractual obligations, commitments and contingencies | 3,076 |
Interest on Outstanding Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due within 1 year | 187 |
Payments due within 2 years | 7 |
Payments due within in 3 years | 5 |
Payments due within 4 years | 2 |
Payments due within 5+ years | 0 |
Contractual obligations, commitments and contingencies | $ 201 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Management [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | |||
Legal services to these law firms | $ 118 | $ 76 | |
Amount payable to law firms | $ 100 | $ 47 |
Asset Sale - Additional Informa
Asset Sale - Additional Information (Detail) $ in Thousands | Sep. 09, 2019USD ($)a | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Asset Sale [Line Items] | |||
Pre-tax gain on the sale of property | $ 107 | $ 2 | |
Undeveloped Land [Member] | Fulton, MO [Member] | |||
Asset Sale [Line Items] | |||
Undeveloped land sold | a | 11.4 | ||
Proceeds from sale | $ 348 | ||
Pre-tax gain on the sale of property | $ 100 |
Financial Information by Segm_3
Financial Information by Segment - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Financial Information by Segm_4
Financial Information by Segment - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |||
Net revenues from external customers | $ 11,652 | $ 10,207 | |
Operating profit (loss) | (220) | (727) | |
Depreciation and amortization | 335 | 338 | |
Assets | 25,811 | 25,713 | $ 24,419 |
Expenditures for property, plant and equipment | 251 | 412 | |
Operating Segments [Member] | Healthcare Services Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues from external customers | 4,232 | 3,691 | |
Operating profit (loss) | 168 | (216) | |
Depreciation and amortization | 88 | 82 | |
Assets | 8,641 | 13,451 | |
Expenditures for property, plant and equipment | 38 | 143 | |
Operating Segments [Member] | Pharmacy Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues from external customers | 7,420 | 6,516 | |
Operating profit (loss) | 263 | (57) | |
Depreciation and amortization | 246 | 256 | |
Assets | 8,452 | 8,067 | |
Expenditures for property, plant and equipment | 213 | 269 | |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues from external customers | 0 | 0 | |
Operating profit (loss) | (651) | (454) | |
Depreciation and amortization | 1 | 0 | |
Assets | 8,718 | 4,195 | |
Expenditures for property, plant and equipment | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Nov. 14, 2019 | Oct. 07, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 08, 2019 |
Subsequent Event [Line Items] | ||||||
Stock repurchased during period, shares | 359,959 | |||||
Prepayment of loan | $ 81,000 | $ 67,000 | ||||
Trace RDA Loan [Member] | Scenario, Forecast [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Non-cash loss on early extinguishment of debt | $ 160,000 | |||||
Subsequent Event [Member] | Trace RDA Loan [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Prepayment of loan | $ 2,500,000 | |||||
2019 Common Share Repurchase Program [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchased during period, shares | 0 | |||||
2019 Common Share Repurchase Program [Member] | Maximum [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 750,000 |