Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | May 11, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SSY | |
Entity Registrant Name | SUNLINK HEALTH SYSTEMS INC | |
Entity Central Index Key | 96,793 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,162,608 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 11,237 | $ 3,261 |
Restricted cash | 1,000 | 0 |
Receivables - net | 6,300 | 6,166 |
Inventory | 2,171 | 2,612 |
Deferred income tax asset | 0 | 624 |
Current assets held for sale | 0 | 2,461 |
Prepaid expense and other assets | 2,784 | 2,768 |
Total current assets | 23,492 | 17,892 |
Property, plant and equipment, at cost | 31,669 | 33,914 |
Less accumulated depreciation | 20,986 | 20,920 |
Property, plant and equipment - net | 10,683 | 12,994 |
Noncurrent Assets: | ||
Intangible assets - net | 2,589 | 2,695 |
Goodwill | 461 | 461 |
Deferred income tax asset | 0 | 1,698 |
Noncurrent assets held for sale | 0 | 7,633 |
Other noncurrent assets | 908 | 732 |
Total noncurrent assets | 3,958 | 13,219 |
TOTAL ASSETS | 38,133 | 44,105 |
Current liabilities: | ||
Accounts payable | 1,851 | 3,391 |
Current maturities of long-term debt | 503 | 7,473 |
Accrued payroll and related taxes | 2,398 | 2,872 |
Due to third party payors | 630 | 1,883 |
Current liabilities held for sale | 0 | 2,745 |
Other accrued expenses | 1,258 | 1,687 |
Total current liabilities | 6,640 | 20,051 |
Long-Term Liabilities | ||
Long-term debt, net of debt issuance costs | 6,327 | 2,979 |
Noncurrent liability for professional liability risks | 879 | 1,161 |
Other noncurrent liabilities | 283 | 425 |
Total long-term liabilities | 7,489 | 4,565 |
Commitment and Contingencies | ||
Shareholders' Equity | ||
Preferred Shares, authorized and unissued, 2,000 shares | 0 | 0 |
Common Shares, without par value: Issued and outstanding, 9,163 shares at March 31, 2017 and 9,444 at June 30, 2016 | 4,581 | 4,722 |
Additional paid-in capital | 13,099 | 13,539 |
Retained earnings | 6,744 | 1,648 |
Accumulated other comprehensive loss | (420) | (420) |
Total Shareholders' Equity | 24,004 | 19,489 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 38,133 | $ 44,105 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Jun. 30, 2016 |
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 | 9,163,000 | 9,444,000 |
Common shares, outstanding | 9,163,000 | 9,444,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Earnings (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||||
Operating revenues (net of contractual allowances) | $ 13,883 | $ 16,418 | $ 41,321 | $ 50,834 |
Less provision for bad debts of Healthcare Facilities Segment | 184 | 213 | 321 | 1,461 |
Net revenues | 13,699 | 16,205 | 41,000 | 49,373 |
Costs and Expenses | ||||
Cost of goods sold | 5,523 | 5,614 | 15,592 | 15,582 |
Salaries, wages and benefits | 5,872 | 7,675 | 17,476 | 23,918 |
Provision for bad debts of Specialty Pharmacy Segment | 126 | 69 | 342 | 429 |
Supplies | 455 | 647 | 1,373 | 2,486 |
Purchased services | 692 | 761 | 2,113 | 2,510 |
Other operating expenses | 1,194 | 1,958 | 4,015 | 6,125 |
Rent and lease expense | 142 | 191 | 409 | 582 |
Depreciation and amortization | 466 | 477 | 1,376 | 1,356 |
Operating Loss | (771) | (1,187) | (1,696) | (3,615) |
Other Income, (Expense): | ||||
Gain on sale of assets | 2 | 5 | 3,019 | 12 |
Loss on extinguishment of debt - net | 0 | 0 | (243) | 0 |
Interest expense - net | (129) | (211) | (507) | (637) |
Earnings (Loss) from Continuing Operations before income taxes | (898) | (1,393) | 573 | (4,240) |
Income tax expense (benefit) | (8) | (1) | (236) | 6,851 |
Earnings (Loss) from Continuing Operations | (890) | (1,392) | 809 | (11,091) |
Earnings (Loss) from Discontinued Operations, net of tax | (135) | (443) | 4,287 | (1,758) |
Net Earnings (Loss) | (1,025) | (1,835) | 5,096 | (12,849) |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive Earnings (Loss) | $ (1,025) | $ (1,835) | $ 5,096 | $ (12,849) |
Continuing Operations: | ||||
Basic | $ (0.10) | $ (0.15) | $ 0.09 | $ (1.17) |
Diluted | (0.10) | (0.15) | 0.09 | (1.17) |
Discontinued Operations: | ||||
Basic | (0.01) | (0.05) | 0.46 | (0.19) |
Diluted | (0.01) | (0.05) | 0.45 | (0.19) |
Net Earnings (Loss): | ||||
Basic | (0.11) | (0.19) | 0.54 | (1.36) |
Diluted | $ (0.11) | $ (0.19) | $ 0.54 | $ (1.36) |
Weighted-Average Common Shares Outstanding: | ||||
Basic | 9,334 | 9,443 | 9,408 | 9,443 |
Diluted | 9,334 | 9,443 | 9,429 | 9,443 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net Cash Used in Operating Activities | $ (4,999) | $ (291) |
Cash Flows from Investing Activities: | ||
Proceeds from sale of Chestatee | 14,620 | 0 |
Proceeds from sale of medical office building and other assets | 4,942 | 0 |
Expenditures for property, plant and equipment - continuing operations | (1,097) | (1,127) |
Expenditures for property, plant and equipment - discontinued operations | 0 | (66) |
Net Cash Provided by (Used in) Investing Activities | 18,465 | (1,193) |
Cash Flows from Financing Activities: | ||
Payments on long-term debt - continuing operation | (3,850) | (601) |
Repurchase of common shares | (640) | 0 |
Deposit of restricted cash | (1,000) | 0 |
Net Cash Used in Financing Activities | (5,490) | (601) |
Net increase (decrease) in Cash and Cash Equivalents | 7,976 | (2,085) |
Cash and Cash Equivalents Beginning of Period | 3,261 | 5,974 |
Cash and Cash Equivalents End of Period | 11,237 | 3,889 |
Cash Paid for: | ||
Interest | 458 | 579 |
Income taxes | $ 141 | $ 78 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. –Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements as of March 31, 2017 and for the three and nine month periods ended March 31, 2017 and 2016 have been prepared in accordance with Rule 10-01 S-X 10-K |
Business Operations
Business Operations | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Operations | Note 2. – Business Operations Business Operations SunLink owns businesses which are providers of healthcare services in certain non-urban • The Healthcare Facilities Segments, which is composed of: • A subsidiary which owns and operates an 84-licensed-bed, 18-bed 66-bed • A subsidiary which owns and operates a 100-bed • A subsidiary which owns a medical office building and approximately two acres of unimproved land in Dahlonega, Georgia and a subsidiary which owns approximately 12 acres of unimproved land in Fulton, Missouri. • A subsidiary which owns a closed hospital building and a medical office building in Clanton, Alabama, a portion of which is currently rented to an unaffiliated healthcare provider. • The Specialty Pharmacy Segment, which is composed of four operational areas: • Pharmacy products and services which are conducted in rural markets at three locations in Louisiana; • Institutional pharmacy services consisting of the provision of specialty and non-specialty • Specialty pharmacy services; and • Durable medical equipment consisting primarily of products for nursing homes and patient-administered home care. SunLink subsidiaries have conducted the healthcare facilities business since 2001 and the specialty pharmacy operations since 2008. Our Specialty Pharmacy Segment currently is operated through Carmichael’s Cashway Pharmacy, Inc. (“Carmichael”), a subsidiary of our SunLink ScriptsRx, LLC subsidiary. The business strategy of SunLink is to focus its efforts on improving internal operations of the existing pharmacy business and healthcare facilities subsidiaries and on the sale or disposition of its subsidiaries’ underperforming assets. The Company considers the disposition of business segments, facilities and operations based on a variety of factors in addition to under-performance, including asset values, return on investments and competition from existing and potential competitors, capital improvement needs, the prevailing reimbursement environment under various Federal and state programs (e.g., Medicare and Medicaid) and by private payors, corporate strategy and other corporate objectives. The Company also is considering potential upgrades and improvements to certain of its healthcare facilities. The Company believes certain facilities in its Healthcare Facilities Segment as well as its Speciality Pharmacy Segment continue to under-perform, and the Company has engaged advisors to assist it in evaluating the possible sale of its specialty pharmacy business lines. The Company has used cash proceeds from recent dispositions of assets to pay off certain liabilities and to repurchase common shares in a tender offer completed in February 2017. The Company may use a portion of its existing cash, as well as any net proceeds from future dispositions, if any, to prepay debt, return capital to shareholders including through potential public or private purchases of share, make improvements to existing facilities, and for other general corporate purposes. There can be no assurance that any further dispositions, if any, will be authorized by the Company’s Board of Directors or, if authorized, that any such transactions will be completed or, if completed, will result in net cash proceeds to the Company on a before or after tax basis. 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 SunLink Health Systems, Inc. or any particular subsidiary of SunLink Health Systems, Inc. owns or operates any asset, business, or property. The Trace Hospital, pharmacy operations and businesses described in this filing are owned and operated by distinct and indirect subsidiaries of SunLink Health System, Inc. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Mar. 31, 2017 | |
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 Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Net Revenues: Chestatee Hospital $ — $ 3,771 $ 2,369 $ 11,357 Other Sold Hospitals (68 ) 17 (288 ) 148 $ (68 ) $ 3,788 $ 2,081 $ 11,505 Earnings (Loss) before income taxes: Chestatee Hospital $ (104 ) $ (322 ) $ 83 $ (1,432 ) Other Sold Hospitals (69 ) (85 ) (304 ) (219 ) Life sciences and engineering (37 ) (36 ) (112 ) (107 ) Gain on sale of Chestatee Hospital 0 0 7,270 0 Earnings (Loss) before income taxes (210 ) (443 ) 6,937 (1,758 ) Income tax expense (benefit) (75 ) 0 2,650 0 Earnings (Loss) from discontinued operations $ (135 ) $ (443 ) $ 4,287 $ (1,758 ) Chestatee Hospital pre-tax Other Sold Hospitals Life Sciences and Engineering Segment The components of pension expense for the three and nine months ended March 31, 2017 and 2016, respectively, were as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Interest Cost $ 13 $ 16 $ 39 $ 48 Expected return on assets (8 ) (8 ) (24 ) (24 ) Amortization of prior service cost 32 28 97 83 Net pension expense $ 37 $ 36 $ 112 $ 107 SunLink contributed $105 to the plan in the nine months ended March 31, 2017 and expects to contribute an additional $35 during the last quarter of the fiscal year ending June 30, 2017. |
Restricted Cash
Restricted Cash | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Restricted Cash | Note 4. – Restricted Cash Under an Fourth Amendment to the Trace RDA Loan (see Note 8. Long-Term Debt) a deposit of $1,000 into an interest bearing blocked account was made with the lender and certain financial covenants were modified. The deposit, which was made on January 13, 2017, will remain in the blocked account until compliance is achieved with respect to financial covenants in effect prior to the Amendment or until November 15, 2017, when the modified financial covenants will revert back to the pre-modification |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Note 5. – Shareholders’ Equity Common Share Purchase Tender Offer – Charter Amendments to Protect Net Operating Losses – Tax Benefits Protection Rights Plan – Stock-Based Compensation For the three months ended March 31, 2017 and 2016, the Company recognized $5 and $10, respectively, in stock based compensation for options issued to employees and directors of the Company. For the nine months ended March 31, 2017 and 2016, the Company recognized $59 and $49, 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 72,000 and 30,000 share options granted under the 2011 Director Stock Option Plan during the nine months ended March 31, 2017 and 2016, respectively. There were 45,000 share options granted under the 2005 Equity Incentive Plan during the nine months ended March 31, 2016. |
Revenue Recognition and Account
Revenue Recognition and Accounts Receivables | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Revenue Recognition and Accounts Receivables | Note 6. – Revenue Recognition and Accounts Receivables The Company’s subsidiaries recognize revenues in the period in which services are provided. Accounts receivable primarily consist of amounts due from third-party payors and patients. The Company’s subsidiaries’ ability to collect outstanding receivables is critical to their results of operations and cash flows. Amounts the Company’s subsidiaries receive for treatment of patients covered by governmental programs such as Medicare and Medicaid and other third-party payors such as health maintenance organizations (“HMOs”), preferred provider organizations (“PPOs”) and other private insurers are generally less than the Company’s subsidiaries’ established billing rates. Additionally, to provide for accounts receivable that could become uncollectible in the future an allowance for doubtful accounts is established to reduce the carrying value of such receivables to their estimated net realizable value. Accordingly, the revenues and accounts receivable reported in the accompanying unaudited condensed consolidated financial statements are recorded at the net amount expected to be received. Revenues by payor were as follows for the three and nine months ended March 31, 2017 and 2016: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Healthcare Facilities Segment: Medicare $ 2,079 $ 3,199 $ 6,447 $ 9,202 Medicaid 2,285 3,006 7,185 9,235 Self-pay 86 107 356 1,231 Managed Care & Other Insurance 871 1,411 2,248 5,840 Other 92 35 374 102 Revenues before provision for doubtful accounts 5,413 7,758 16,610 25,610 Provision for doubtful accounts (184 ) (213 ) (321 ) (1,461 ) Healthcare Facilities Segment Net Revenues 5,229 7,545 16,289 24,149 Pharmacy Segment Net Revenues 8,198 8,509 23,946 24,644 Other Revenues 272 151 765 580 Total Net Revenues $ 13,699 $ 16,205 $ 41,000 $ 49,373 The net revenues of the Healthcare Facilities Segments included increases of $38 and $385 resulting from prior years’ Medicare cost report settlements for the three and nine months ended March 31, 2017 and increases (reductions) of $140 and ($662) resulting from prior years’ Medicare cost report settlements for the three and nine months ended March 31, 2016. The net revenues of the Pharmacy Segment are presented net of contractual adjustments. The provision for bad debts of the Pharmacy Segment is presented as a component of operating expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss. Summary information for accounts receivable is as follows: March 31 June 30, 2017 2016 Accounts receivable (net of contractual allowances) $ 7,010 $ 7,157 Less allowance for doubtful accounts (710 ) (991 ) Patient accounts receivable - net $ 6,300 $ 6,166 The following is a summary of the activity in the allowance for doubtful accounts for the Healthcare Facilities Segment and the Pharmacy Segment for the three and nine months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 Healthcare Facilities Pharmacy Total Balance at January 1, 2017 $ 332 $ 400 $ 732 Additions recognized as a reduction to revenues: Continuing Operations 184 126 310 Discontinued Operations (14 ) — (14 ) Accounts written off, net of recoveries (180 ) (138 ) (318 ) Balance at March 31, 2017 $ 322 $ 388 $ 710 NIne Months Ended March 31, 2017 Healthcare Facilities Pharmacy Total Balance at July 1, 2016 $ 624 $ 367 $ 991 Additions recognized as a reduction to revenues: Continuing Operations 321 342 663 Discontinued Operations 378 — 378 Accounts written off, net of recoveries (1,001 ) (321 ) (1,322 ) Balance at March 31, 2017 $ 322 $ 388 $ 710 Three Months Ended March 31, 2016 Healthcare Facilities Pharmacy Total Balance at January 1, 2016 $ 4,055 $ 432 $ 4,487 Additions recognized as a reduction to revenues: Continuing Operations 213 69 282 Discontinued Operations 530 — 530 Accounts written off, net of recoveries (1,698 ) (146 ) (1,844 ) Balance at March 31, 2016 $ 3,100 $ 355 $ 3,455 Nine Months Ended March 31, 2016 Healthcare Facilities Pharmacy Total Balance at July 1, 2015 $ 4,962 $ 385 $ 5,347 Additions recognized as a reduction to revenues: Continuing Operations 1,461 429 1,890 Discontinued Operations 2,116 — 2,116 Accounts written off, net of recoveries (5,439 ) (459 ) (5,898 ) Balance at March 31, 2016 $ 3,100 $ 355 $ 3,455 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. - Goodwill and Intangible Assets SunLink’s goodwill and intangible assets are composed of: March 31, June 30, 2017 2016 Pharmacy Segment Goodwill $ 461 $ 461 Intangibles consist of the following, net of amortization: March 31, June 30, 2017 2016 Pharmacy Segment Intangibles Trade Name (non-amortizing) 2,000 2,000 Customer Relationships 1,089 1,089 Medicare License 769 769 3,858 3,858 Accumulated Amortization (1,269 ) (1,163 ) Net Intangibles $ 2,589 $ 2,695 Amortization expense was $35 and $35 for the three months ended March 31, 2017 and 2016, respectively. Amortization expense was $106 and $106 for the nine months ended March 31, 2017 and 2016, respectively. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8. –Long-Term Debt Long-term debt consisted of the following: March 31, June 30, 2017 2016 Trace RDA Loan $ 7,321 $ 7,698 SHPP RDA Loan 0 1,950 Carmichael Notes 0 1,508 Capital lease obligations and other 17 32 Total 7,338 11,188 Less unamortized debt issuance costs (508 ) (736 ) Less current maturities (503 ) (7,473 ) $ 6,327 $ 2,979 Trace RDA Loan and Trace Working Capital Loan— The Trace RDA Loan has a term of 15 years with monthly payments of principal and interest until repaid. The Trace RDA Loan bears a floating rate of interest equal to the greater of (i) the prime rate (as published in The Wall Street Journal) plus 1.5%, or (ii) 6% (6.0% at March 31, 2017). 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 covenants include financial covenants measured on a quarterly basis which 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 September 30, 2016 and June 30, 2016, Trace was not in compliance with the debt service coverage, fixed charge ratio and funded debt to EBITDA ratios. The Company received a waiver of these non-compliances pre-modification non-compliance SHPP RDA Loan Carmichael Notes ASU 2016-3, “Simplifying the Presentation of Debt Issuance Costs” (“ASU”) 2016-3, 2016-3”). ASU 2016-3 2016-3 2016-3 The following is a summary of the line items impact of the adoption of ASU 2016-3 As Adjustments As Originally for the Adoption Currently Reported of ASU 2015-3 Reported Prepaid expense and other current assets $ 2,777 $ (9 ) $ 2,768 Total current assets $ 17,901 $ (9 ) $ 17,892 Other noncurrent assets $ 1,459 $ (727 ) $ 732 Total noncurrent assets $ 13,946 $ (727 ) $ 13,219 Total Assets $ 44,841 $ (736 ) $ 44,105 Current maturities of long-term debt $ 8,012 $ (539 ) $ 7,473 Total current liabilities $ 20,590 $ (539 ) $ 20,051 Long-term debt $ 3,176 $ (197 ) $ 2,979 Total long-term liabilities $ 4,762 $ (197 ) $ 4,565 Total Liabilities and Shareholders’ Equity $ 44,841 $ (736 ) $ 44,105 |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. – Income Taxes Income tax benefit of $8 ($32 federal tax benefit and $24 state tax expense) and income tax benefit of $1 ($0 federal tax expense and $1 state tax benefit) was recorded for continuing operations for the three months ended March 31, 2017 and 2016, respectively. Income tax benefit of $236 ($221 federal tax benefit and $15 state tax benefit) and income tax expense of $6,851 ($6,210 federal tax expense and $641 state tax expense) was recorded for continuing operations for the nine months ended March 31, 2017 and 2016, 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 March 31, 2017, 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 $10,206 against the deferred tax asset so that there is no net long-term deferred income tax asset or liability at March 31, 2017. 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 March 31, 2017 that all the deferred tax assets should have full valuation allowances was the three-year cumulative pre-tax For Federal income tax purposes, at March 31, 2017, the Company had approximately $11,100 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. The net operating loss carryforwards expire in 2024. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. – Commitments and Contingencies Sale of Hospital Facilities Contractual Obligations, Commitments and Contingencies Contractual obligations, commitments and contingencies related to outstanding debt, non-cancelable Interest on Payments Long-Term Operating Outstanding due in: Debt Leases Debt 1 year $ 503 $ 545 $ 396 2 years 561 402 400 3 years 596 336 366 4 years 634 243 328 5+ years 5,044 59 803 $ 7,338 $ 1,585 $ 2,293 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11. - Related Party Transactions A director of the Company and the Company’s former corporate secretary are members of two different law firms, each of which provides services to SunLink. The Company has expensed an aggregate of $109 and $71 for legal services to these law firms in the three months ended March 31, 2017 and 2016, respectively. The Company has expensed an aggregate of $481 and $204 for legal services to these law firms in the nine months ended March 31, 2017 and 2016, respectively. Included in the Company’s condensed consolidated balance sheets at March 31, 2017 and June 30, 2016 is $21 and $75, respectively, of amounts payable to these law firms. |
Financial Information by Segmen
Financial Information by Segment | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | Note 12. - 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 Facilities 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 March 31, 2017 and 2016 and for the three and nine months then ended is as follows: Healthcare Corporate Facilities Pharmacy and Other Total As of and for the three months ended March 31, 2017 Net revenues from external customers $ 5,229 $ 8,198 $ 272 $ 13,699 Operating loss (112 ) (324 ) (335 ) (771 ) Depreciation and amortization 150 289 27 466 Assets 12,458 11,519 14,156 38,133 Expenditures for property, plant and equipment 24 264 1 289 As of and for the three months ended March 31, 2016 Net revenues from external customers $ 7,545 $ 8,509 $ 151 $ 16,205 Operating loss (638 ) — (549 ) (1,187 ) Depreciation and amortization 186 246 45 477 Assets 26,288 12,135 6,496 44,919 Expenditures for property, plant and equipment 8 292 2 302 As of and for the nine months ended March 31, 2017 Net revenues from external customers $ 16,289 $ 23,946 $ 765 $ 41,000 Operating profit (loss) 443 (511 ) (1,628 ) (1,696 ) Depreciation and amortization 497 810 69 1,376 Assets 12,458 11,519 14,156 38,133 Expenditures for property, plant and equipment 246 739 112 1,097 As of and for the nine months ended March 31, 2016 Net revenues from external customers $ 24,149 $ 24,644 $ 580 $ 49,373 Operating profit (loss) (2,134 ) 216 (1,697 ) (3,615 ) Depreciation and amortization 545 666 145 1,356 Assets 26,288 12,135 6,496 44,919 Expenditures for property, plant and equipment 93 1,031 3 1,127 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
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 Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Net Revenues: Chestatee Hospital $ — $ 3,771 $ 2,369 $ 11,357 Other Sold Hospitals (68 ) 17 (288 ) 148 $ (68 ) $ 3,788 $ 2,081 $ 11,505 Earnings (Loss) before income taxes: Chestatee Hospital $ (104 ) $ (322 ) $ 83 $ (1,432 ) Other Sold Hospitals (69 ) (85 ) (304 ) (219 ) Life sciences and engineering (37 ) (36 ) (112 ) (107 ) Gain on sale of Chestatee Hospital 0 0 7,270 0 Earnings (Loss) before income taxes (210 ) (443 ) 6,937 (1,758 ) Income tax expense (benefit) (75 ) 0 2,650 0 Earnings (Loss) from discontinued operations $ (135 ) $ (443 ) $ 4,287 $ (1,758 ) |
Components of Pension Expense | The components of pension expense for the three and nine months ended March 31, 2017 and 2016, respectively, were as follows: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Interest Cost $ 13 $ 16 $ 39 $ 48 Expected return on assets (8 ) (8 ) (24 ) (24 ) Amortization of prior service cost 32 28 97 83 Net pension expense $ 37 $ 36 $ 112 $ 107 |
Revenue Recognition and Accou19
Revenue Recognition and Accounts Receivables (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Summary of Revenues | Revenues by payor were as follows for the three and nine months ended March 31, 2017 and 2016: Three Months Ended Nine Months Ended March 31, March 31, 2017 2016 2017 2016 Healthcare Facilities Segment: Medicare $ 2,079 $ 3,199 $ 6,447 $ 9,202 Medicaid 2,285 3,006 7,185 9,235 Self-pay 86 107 356 1,231 Managed Care & Other Insurance 871 1,411 2,248 5,840 Other 92 35 374 102 Revenues before provision for doubtful accounts 5,413 7,758 16,610 25,610 Provision for doubtful accounts (184 ) (213 ) (321 ) (1,461 ) Healthcare Facilities Segment Net Revenues 5,229 7,545 16,289 24,149 Pharmacy Segment Net Revenues 8,198 8,509 23,946 24,644 Other Revenues 272 151 765 580 Total Net Revenues $ 13,699 $ 16,205 $ 41,000 $ 49,373 |
Summary Information for Accounts Receivable | Summary information for accounts receivable is as follows: March 31 June 30, 2017 2016 Accounts receivable (net of contractual allowances) $ 7,010 $ 7,157 Less allowance for doubtful accounts (710 ) (991 ) Patient accounts receivable - net $ 6,300 $ 6,166 |
Summary of Allowance for Doubtful Accounts | The following is a summary of the activity in the allowance for doubtful accounts for the Healthcare Facilities Segment and the Pharmacy Segment for the three and nine months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 Healthcare Facilities Pharmacy Total Balance at January 1, 2017 $ 332 $ 400 $ 732 Additions recognized as a reduction to revenues: Continuing Operations 184 126 310 Discontinued Operations (14 ) — (14 ) Accounts written off, net of recoveries (180 ) (138 ) (318 ) Balance at March 31, 2017 $ 322 $ 388 $ 710 NIne Months Ended March 31, 2017 Healthcare Facilities Pharmacy Total Balance at July 1, 2016 $ 624 $ 367 $ 991 Additions recognized as a reduction to revenues: Continuing Operations 321 342 663 Discontinued Operations 378 — 378 Accounts written off, net of recoveries (1,001 ) (321 ) (1,322 ) Balance at March 31, 2017 $ 322 $ 388 $ 710 Three Months Ended March 31, 2016 Healthcare Facilities Pharmacy Total Balance at January 1, 2016 $ 4,055 $ 432 $ 4,487 Additions recognized as a reduction to revenues: Continuing Operations 213 69 282 Discontinued Operations 530 — 530 Accounts written off, net of recoveries (1,698 ) (146 ) (1,844 ) Balance at March 31, 2016 $ 3,100 $ 355 $ 3,455 Nine Months Ended March 31, 2016 Healthcare Facilities Pharmacy Total Balance at July 1, 2015 $ 4,962 $ 385 $ 5,347 Additions recognized as a reduction to revenues: Continuing Operations 1,461 429 1,890 Discontinued Operations 2,116 — 2,116 Accounts written off, net of recoveries (5,439 ) (459 ) (5,898 ) Balance at March 31, 2016 $ 3,100 $ 355 $ 3,455 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | SunLink’s goodwill and intangible assets are composed of: March 31, June 30, 2017 2016 Pharmacy Segment Goodwill $ 461 $ 461 |
Intangible Assets | Intangibles consist of the following, net of amortization: March 31, June 30, 2017 2016 Pharmacy Segment Intangibles Trade Name (non-amortizing) 2,000 2,000 Customer Relationships 1,089 1,089 Medicare License 769 769 3,858 3,858 Accumulated Amortization (1,269 ) (1,163 ) Net Intangibles $ 2,589 $ 2,695 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following: March 31, June 30, 2017 2016 Trace RDA Loan $ 7,321 $ 7,698 SHPP RDA Loan 0 1,950 Carmichael Notes 0 1,508 Capital lease obligations and other 17 32 Total 7,338 11,188 Less unamortized debt issuance costs (508 ) (736 ) Less current maturities (503 ) (7,473 ) $ 6,327 $ 2,979 |
Summary of Line Items Impacted by the Adoption of ASU 2016-3 | The following is a summary of the line items impact of the adoption of ASU 2016-3 As Adjustments As Originally for the Adoption Currently Reported of ASU 2015-3 Reported Prepaid expense and other current assets $ 2,777 $ (9 ) $ 2,768 Total current assets $ 17,901 $ (9 ) $ 17,892 Other noncurrent assets $ 1,459 $ (727 ) $ 732 Total noncurrent assets $ 13,946 $ (727 ) $ 13,219 Total Assets $ 44,841 $ (736 ) $ 44,105 Current maturities of long-term debt $ 8,012 $ (539 ) $ 7,473 Total current liabilities $ 20,590 $ (539 ) $ 20,051 Long-term debt $ 3,176 $ (197 ) $ 2,979 Total long-term liabilities $ 4,762 $ (197 ) $ 4,565 Total Liabilities and Shareholders’ Equity $ 44,841 $ (736 ) $ 44,105 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations, Commitments and Contingencies | Contractual obligations, commitments and contingencies related to outstanding debt, non-cancelable Interest on Payments Long-Term Operating Outstanding due in: Debt Leases Debt 1 year $ 503 $ 545 $ 396 2 years 561 402 400 3 years 596 336 366 4 years 634 243 328 5+ years 5,044 59 803 $ 7,338 $ 1,585 $ 2,293 |
Financial Information by Segm23
Financial Information by Segment (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 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 March 31, 2017 and 2016 and for the three and nine months then ended is as follows: Healthcare Corporate Facilities Pharmacy and Other Total As of and for the three months ended March 31, 2017 Net revenues from external customers $ 5,229 $ 8,198 $ 272 $ 13,699 Operating loss (112 ) (324 ) (335 ) (771 ) Depreciation and amortization 150 289 27 466 Assets 12,458 11,519 14,156 38,133 Expenditures for property, plant and equipment 24 264 1 289 As of and for the three months ended March 31, 2016 Net revenues from external customers $ 7,545 $ 8,509 $ 151 $ 16,205 Operating loss (638 ) — (549 ) (1,187 ) Depreciation and amortization 186 246 45 477 Assets 26,288 12,135 6,496 44,919 Expenditures for property, plant and equipment 8 292 2 302 As of and for the nine months ended March 31, 2017 Net revenues from external customers $ 16,289 $ 23,946 $ 765 $ 41,000 Operating profit (loss) 443 (511 ) (1,628 ) (1,696 ) Depreciation and amortization 497 810 69 1,376 Assets 12,458 11,519 14,156 38,133 Expenditures for property, plant and equipment 246 739 112 1,097 As of and for the nine months ended March 31, 2016 Net revenues from external customers $ 24,149 $ 24,644 $ 580 $ 49,373 Operating profit (loss) (2,134 ) 216 (1,697 ) (3,615 ) Depreciation and amortization 545 666 145 1,356 Assets 26,288 12,135 6,496 44,919 Expenditures for property, plant and equipment 93 1,031 3 1,127 |
Business Operations - Additiona
Business Operations - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2017aSegmentBedAreasLocation | |
Business And Organization [Line Items] | |
Number of segments | Segment | 2 |
Specialty Pharmacy Segment [Member] | |
Business And Organization [Line Items] | |
Number of operational areas | Areas | 4 |
Healthcare Facilities Segment [Member] | |
Business And Organization [Line Items] | |
Number of bed in nursing home owned and operated by subsidiary | 100 |
Healthcare Facilities Segment [Member] | Acute Care Hospital [Member] | |
Business And Organization [Line Items] | |
Number of licensed-bed owned and operated by a subsidiary | 84 |
Number of bed in geriatric psychiatry units owned and operated by subsidiary | 18 |
Number of bed in nursing home owned and operated by subsidiary | 66 |
Dahlonega Georgia [Member] | Healthcare Facilities Segment [Member] | |
Business And Organization [Line Items] | |
Number of acres of unimproved land | a | 2 |
Fulton Missouri [Member] | Healthcare Facilities Segment [Member] | |
Business And Organization [Line Items] | |
Number of acres of unimproved land | a | 12 |
Louisiana [Member] | Specialty Pharmacy Segment [Member] | |
Business And Organization [Line Items] | |
Number of retail locations | Location | 3 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Detail) - USD ($) $ in Thousands | Aug. 19, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Earnings (Loss) before income taxes: | |||||
Earnings (Loss) before income taxes | $ (210) | $ (443) | $ 6,937 | $ (1,758) | |
Income tax expense (benefit) | (75) | 0 | 2,650 | 0 | |
Earnings (Loss) from discontinued operations | (135) | (443) | 4,287 | (1,758) | |
Chestatee Hospital [Member] | |||||
Earnings (Loss) before income taxes: | |||||
Earnings (Loss) before income taxes | $ 7,270 | ||||
Discontinued Operations, Disposed of by Sale [Member] | |||||
Net Revenues: | |||||
Net revenues | (68) | 3,788 | 2,081 | 11,505 | |
Discontinued Operations, Disposed of by Sale [Member] | Chestatee Hospital [Member] | |||||
Net Revenues: | |||||
Net revenues | 3,771 | 2,369 | 11,357 | ||
Earnings (Loss) before income taxes: | |||||
Gain on Sale | 0 | 0 | 7,270 | 0 | |
Earnings (Loss) before income taxes | (104) | (322) | 83 | (1,432) | |
Discontinued Operations, Disposed of by Sale [Member] | Other Sold Hospitals [Member] | |||||
Net Revenues: | |||||
Net revenues | (68) | 17 | (288) | 148 | |
Earnings (Loss) before income taxes: | |||||
Earnings (Loss) before income taxes | (69) | (85) | (304) | (219) | |
Discontinued Operations, Disposed of by Sale [Member] | Life Sciences and Engineering [Member] | |||||
Earnings (Loss) before income taxes: | |||||
Earnings (Loss) before income taxes | $ (37) | $ (36) | $ (112) | $ (107) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) $ in Thousands | Aug. 19, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2014Hospital |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale | $ 14,620 | $ 0 | ||||
Earnings (Loss) before income taxes | $ (210) | $ (443) | 6,937 | $ (1,758) | ||
Number of Hospitals Sold | Hospital | 3 | |||||
Chestatee Hospital [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Earnings (Loss) before income taxes | $ 7,270 | |||||
Chestatee Hospital [Member] | Asset Purchase Agreement [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale | $ 15,000 | |||||
Life Sciences and Engineering [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contribution to pension plan | 105 | |||||
Expected contribution to pension plan during the remaining fiscal year | $ 35 |
Discontinued Operations - Compo
Discontinued Operations - Components of Pension Expense (Detail) - Life Sciences and Engineering [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest Cost | $ 13 | $ 16 | $ 39 | $ 48 |
Expected return on assets | (8) | (8) | (24) | (24) |
Amortization of prior service cost | 32 | 28 | 97 | 83 |
Net pension expense | $ 37 | $ 36 | $ 112 | $ 107 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 1,000 | $ 0 |
Trace RDA Loan [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 1,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Nov. 07, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common shares | $ 640,000 | $ 0 | |||
Shareholders threshold percentage | 4.90% | ||||
Share-based compensation, amount recognized | $ 5,000 | $ 10,000 | $ 59,000 | $ 49,000 | |
2011 Director Stock Option Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted | 72,000 | 30,000 | |||
2005 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted | 45,000 | ||||
Tender Offer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common shares | $ 640,000 | ||||
Repurchase of common shares per share | $ 1.50 | $ 1.50 | |||
Tender offer expiration period | Feb. 24, 2017 | ||||
Tender Offer [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of common shares | $ 280,800 |
Revenue Recognition and Accou30
Revenue Recognition and Accounts Receivables - Summary of Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | $ 13,883 | $ 16,418 | $ 41,321 | $ 50,834 |
Provision for doubtful accounts | (184) | (213) | (321) | (1,461) |
Net revenues | 13,699 | 16,205 | 41,000 | 49,373 |
Healthcare Facilities Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 5,413 | 7,758 | 16,610 | 25,610 |
Provision for doubtful accounts | (184) | (213) | (321) | (1,461) |
Net revenues | 5,229 | 7,545 | 16,289 | 24,149 |
Healthcare Facilities Segment [Member] | Medicare [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 2,079 | 3,199 | 6,447 | 9,202 |
Healthcare Facilities Segment [Member] | Medicaid [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 2,285 | 3,006 | 7,185 | 9,235 |
Healthcare Facilities Segment [Member] | Self-Pay [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 86 | 107 | 356 | 1,231 |
Healthcare Facilities Segment [Member] | Managed Care & Other Insurance [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 871 | 1,411 | 2,248 | 5,840 |
Healthcare Facilities Segment [Member] | Other [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 92 | 35 | 374 | 102 |
Pharmacy Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | 8,198 | 8,509 | 23,946 | 24,644 |
Other Member [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net revenues | $ 272 | $ 151 | $ 765 | $ 580 |
Revenue Recognition and Accou31
Revenue Recognition and Accounts Receivables - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Receivables [Abstract] | ||||
Net revenues for settlements and filings of prior year Medicare cost reports | $ 38 | $ 140 | $ 385 | $ (662) |
Revenue Recognition and Accou32
Revenue Recognition and Accounts Receivable - Summary Information for Accounts Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Receivables [Abstract] | ||||||
Accounts receivable (net of contractual allowances) | $ 7,010 | $ 7,157 | ||||
Less allowance for doubtful accounts | (710) | $ (732) | (991) | $ (3,455) | $ (4,487) | $ (5,347) |
Patient accounts receivable - net | $ 6,300 | $ 6,166 |
Revenue Recognition and Accou33
Revenue Recognition and Accounts Receivable - Summary of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Beginning balance | $ 732 | $ 4,487 | $ 991 | $ 5,347 |
Accounts written off, net of recoveries | (318) | (1,844) | (1,322) | (5,898) |
Ending balance | 710 | 3,455 | 710 | 3,455 |
Continuing Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | 310 | 282 | 663 | 1,890 |
Discontinued Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | (14) | 530 | 378 | 2,116 |
Healthcare Facilities Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Beginning balance | 332 | 4,055 | 624 | 4,962 |
Accounts written off, net of recoveries | (180) | (1,698) | (1,001) | (5,439) |
Ending balance | 322 | 3,100 | 322 | 3,100 |
Healthcare Facilities Segment [Member] | Continuing Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | 184 | 213 | 321 | 1,461 |
Healthcare Facilities Segment [Member] | Discontinued Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | (14) | 530 | 378 | 2,116 |
Pharmacy Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Beginning balance | 400 | 432 | 367 | 385 |
Accounts written off, net of recoveries | (138) | (146) | (321) | (459) |
Ending balance | 388 | 355 | 388 | 355 |
Pharmacy Segment [Member] | Continuing Operations [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Additions recognized as a reduction to revenues | $ 126 | $ 69 | $ 342 | $ 429 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets - Goodwill (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Goodwill [Line Items] | ||
Goodwill | $ 461 | $ 461 |
Pharmacy Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 461 | $ 461 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Indefinite-lived Intangible Assets [Line Items] | ||
Net Intangibles | $ 2,589 | $ 2,695 |
Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross | 3,858 | 3,858 |
Accumulated Amortization | (1,269) | (1,163) |
Net Intangibles | 2,589 | 2,695 |
Trade Name [Member] | Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 2,000 | 2,000 |
Customer Relationships [Member] | Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,089 | 1,089 |
Medicare License [Member] | Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 769 | $ 769 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 35 | $ 35 | $ 106 | $ 106 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 | Feb. 16, 2016 |
Debt Instrument [Line Items] | |||
Capital lease obligations and other | $ 17 | $ 32 | |
Total | 7,338 | 11,188 | |
Total | 7,338 | 11,188 | |
Less unamortized debt issuance costs | (508) | (736) | |
Less current maturities | (503) | (7,473) | |
Total Long-term debt, excluding current maturities, total | 6,327 | 2,979 | |
Trace RDA Loan [Member] | |||
Debt Instrument [Line Items] | |||
RDA Loan | 7,321 | 7,698 | |
SHPP RDA Loan [Member] | |||
Debt Instrument [Line Items] | |||
RDA Loan | 0 | 1,950 | |
Carmichael Notes [Member] | |||
Debt Instrument [Line Items] | |||
Carmichael Notes | $ 0 | $ 1,508 | $ 1,255 |
Long-Term Debt (Trace RDA Loan
Long-Term Debt (Trace RDA Loan and Trace Working Capital Loan) - Additional Information (Detail) - Trace RDA Loan [Member] - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2016 | Jul. 11, 2012 | |
Debt Instrument [Line Items] | |||
Working Capital Loan Agreement, initiation date | Jul. 5, 2012 | ||
Working capital expiration date | Jul. 2, 2016 | ||
Debt instrument maturity period | 15 years | ||
Floating rate of interest, spread | 1.50% | ||
Floating rate of interest equal to the greater of (i) the prime rate (as published in The Wall Street Journal) plus variable or (ii) stated | 6.00% | ||
Debt instrument description | Trace RDA Loan bears a floating rate of interest equal to the greater of (i) the prime rate (as published in The Wall Street Journal) plus 1.5%, or (ii) 6% | ||
Indebtedness under the loan | $ 7,321 | $ 7,698 | |
Covenant terms | Under the Fourth Amendment, the debt service coverage, the fixed charge coverage and funded debt to EBITDA ratios were amended for periods ended December 31, 2016, March 31, 2017 and June 30, 2017 and an additional covenant was entered into requiring the deposit of $1,000 into a blocked interest bearing account with the lender. The deposit, which was made on January 13, 2017, will remain in the blocked account until Trace achieves compliance with financial covenants in effect prior to the Amendment or November 15, 2017 | ||
Interest bearing deposit under financial covenant | $ 1,000 | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Floating rate of interest equal to the greater of (i) the prime rate (as published in The Wall Street Journal) plus variable or (ii) stated | 6.00% | ||
Mortgages [Member] | |||
Debt Instrument [Line Items] | |||
Date of loan agreement | Jul. 5, 2012 | ||
Loan agreement amount | $ 9,975 |
Long-Term Debt (SHPP RDA Loan)
Long-Term Debt (SHPP RDA Loan) - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 16, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Oct. 31, 2012 |
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ 0 | $ 0 | $ (243) | $ 0 | ||
SHPP RDA Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal payment | $ 1,933 | |||||
Early repayment penalty | 97 | |||||
Unamortized prepaid loan costs | $ 192 | |||||
Gain (loss) on extinguishment of debt | $ (289) | |||||
SHPP RDA Loan [Member] | Subsidiaries [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loan agreement amount | $ 2,100 | |||||
Date of loan agreement | Oct. 31, 2012 |
Long-Term Debt (Carmichael Note
Long-Term Debt (Carmichael Notes) - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 09, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | Feb. 16, 2016 | Apr. 22, 2008 |
Debt Instrument [Line Items] | ||||||||
Gain (loss) on extinguishment of debt | $ 0 | $ 0 | $ (243) | $ 0 | ||||
Carmichael Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan agreement amount | $ 3,000 | |||||||
Interest rate percentage | 8.00% | |||||||
Date of loan agreement | Apr. 22, 2008 | |||||||
Principal and interest payment | $ 185 | |||||||
Carmichael Notes | $ 0 | $ 0 | $ 1,508 | $ 1,255 | ||||
Note due date | Oct. 22, 2017 | |||||||
Notes paid | $ 1,508 | |||||||
Accrued interest forgiven | $ 46 | |||||||
Gain (loss) on extinguishment of debt | $ 46 |
Long-Term Debt - Summary of Lin
Long-Term Debt - Summary of Line Items Impacted by the Adoption of ASU 2016-3 (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expense and other current assets | $ 2,784 | $ 2,768 | |
Total current assets | 23,492 | 17,892 | |
Other noncurrent assets | 908 | 732 | |
Total noncurrent assets | 3,958 | 13,219 | |
Total Assets | 38,133 | 44,105 | $ 44,919 |
Current maturities of long-term debt | 503 | 7,473 | |
Total current liabilities | 6,640 | 20,051 | |
Long-term debt | 6,327 | 2,979 | |
Total long-term liabilities | 7,489 | 4,565 | |
Total Liabilities and Shareholders' Equity | $ 38,133 | 44,105 | |
As Originally Reported [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expense and other current assets | 2,777 | ||
Total current assets | 17,901 | ||
Other noncurrent assets | 1,459 | ||
Total noncurrent assets | 13,946 | ||
Total Assets | 44,841 | ||
Current maturities of long-term debt | 8,012 | ||
Total current liabilities | 20,590 | ||
Long-term debt | 3,176 | ||
Total long-term liabilities | 4,762 | ||
Total Liabilities and Shareholders' Equity | 44,841 | ||
Adjustments for the Adoption of ASU 2015-3 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaid expense and other current assets | (9) | ||
Total current assets | (9) | ||
Other noncurrent assets | (727) | ||
Total noncurrent assets | (727) | ||
Total Assets | (736) | ||
Current maturities of long-term debt | (539) | ||
Total current liabilities | (539) | ||
Long-term debt | (197) | ||
Total long-term liabilities | (197) | ||
Total Liabilities and Shareholders' Equity | $ (736) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (8,000) | $ (1,000) | $ (236,000) | $ 6,851,000 |
Federal tax expense (benefit) | (32,000) | 0 | (221,000) | 6,210,000 |
State tax expense (benefit) | 24,000 | $ (1,000) | (15,000) | $ 641,000 |
Deferred income tax valuation allowance | 10,206,000 | 10,206,000 | ||
Net deferred tax assets | 0 | 0 | ||
Net operating loss carry-forward | $ 11,100,000 | $ 11,100,000 | ||
Net operating loss carryforward expiration year | 2,024 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2017Hospital | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of hospital facilities | 4 |
Commitments and Contingencies44
Commitments and Contingencies - Schedule of Contractual Obligations, Commitments and Contingencies (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Long-Term Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | $ 503 |
Payments due in 2 years | 561 |
Payments due in 3 years | 596 |
Payments due in 4 years | 634 |
Payments due in 5+ years | 5,044 |
Contractual obligations, commitments and contingencies | 7,338 |
Operating Leases [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | 545 |
Payments due in 2 years | 402 |
Payments due in 3 years | 336 |
Payments due in 4 years | 243 |
Payments due in 5+ years | 59 |
Contractual obligations, commitments and contingencies | 1,585 |
Interest on Outstanding Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | 396 |
Payments due in 2 years | 400 |
Payments due in 3 years | 366 |
Payments due in 4 years | 328 |
Payments due in 5+ years | 803 |
Contractual obligations, commitments and contingencies | $ 2,293 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Management [Member] $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)Law_Firm | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |
Related Party Transaction [Line Items] | |||||
Legal services to these law firms | $ 109 | $ 71 | $ 481 | $ 204 | |
Amount payable to law firms | $ 21 | $ 21 | $ 75 | ||
Number of law firms related to entities | Law_Firm | 2 |
Financial Information by Segm46
Financial Information by Segment - Additional Information (Detail) | 9 Months Ended |
Mar. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Financial Information by Segm47
Financial Information by Segment - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | $ 13,699 | $ 16,205 | $ 41,000 | $ 49,373 | |
Operating profit (loss) | (771) | (1,187) | (1,696) | (3,615) | |
Depreciation and amortization | 466 | 477 | 1,376 | 1,356 | |
Assets | 38,133 | 44,919 | 38,133 | 44,919 | $ 44,105 |
Expenditures for property, plant and equipment | 289 | 302 | 1,097 | 1,127 | |
Healthcare Facilities Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | 5,229 | 7,545 | 16,289 | 24,149 | |
Operating Segments [Member] | Healthcare Facilities Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | 5,229 | 7,545 | 16,289 | 24,149 | |
Operating profit (loss) | (112) | (638) | 443 | (2,134) | |
Depreciation and amortization | 150 | 186 | 497 | 545 | |
Assets | 12,458 | 26,288 | 12,458 | 26,288 | |
Expenditures for property, plant and equipment | 24 | 8 | 246 | 93 | |
Operating Segments [Member] | Pharmacy Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | 8,198 | 8,509 | 23,946 | 24,644 | |
Operating profit (loss) | (324) | (511) | 216 | ||
Depreciation and amortization | 289 | 246 | 810 | 666 | |
Assets | 11,519 | 12,135 | 11,519 | 12,135 | |
Expenditures for property, plant and equipment | 264 | 292 | 739 | 1,031 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues from external customers | 272 | 151 | 765 | 580 | |
Operating profit (loss) | (335) | (549) | (1,628) | (1,697) | |
Depreciation and amortization | 27 | 45 | 69 | 145 | |
Assets | 14,156 | 6,496 | 14,156 | 6,496 | |
Expenditures for property, plant and equipment | $ 1 | $ 2 | $ 112 | $ 3 |