Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Nov. 13, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
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 | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 7,346,814 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 3,393 | $ 3,456 |
Receivables - net | 4,606 | 4,823 |
Inventory | 1,905 | 1,894 |
Prepaid expense and other assets | 2,687 | 2,937 |
Total current assets | 12,591 | 13,110 |
Property, plant and equipment, at cost | 30,441 | 29,995 |
Less accumulated depreciation | 19,967 | 19,589 |
Property, plant and equipment - net | 10,474 | 10,406 |
Noncurrent Assets: | ||
Intangible assets - net | 1,441 | 1,470 |
Income tax receivable | 305 | 305 |
Other noncurrent assets | 902 | 885 |
Total noncurrent assets | 2,648 | 2,660 |
TOTAL ASSETS | 25,713 | 26,176 |
Current liabilities: | ||
Accounts payable | 1,432 | 1,239 |
Current maturities of long-term debt, net of debt issuance costs | 260 | 255 |
Accrued payroll and related taxes | 2,154 | 1,959 |
Due to third party payors | 542 | 290 |
Other accrued expenses | 1,010 | 1,108 |
Total current liabilities | 5,398 | 4,851 |
Long-Term Liabilities | ||
Long-term debt, net of debt issuance costs | 2,737 | 2,803 |
Noncurrent liability for professional liability risks | 941 | 996 |
Other noncurrent liabilities | 330 | 340 |
Total long-term liabilities | 4,008 | 4,139 |
Commitment and Contingencies | ||
Shareholders' Equity | ||
Preferred Shares, authorized and unissued, 2,000 shares | 0 | 0 |
Common Shares, without par value: Issued and outstanding, 7,347 shares at September 30, 2018 and at June 30, 2018 | 3,673 | 3,673 |
Additional paid-in capital | 10,948 | 10,947 |
Retained earnings | 1,863 | 2,743 |
Accumulated other comprehensive loss | (177) | (177) |
Total Shareholders' Equity | 16,307 | 17,186 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 25,713 | $ 26,176 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred shares, authorized | 2,000,000 | 2,000,000 |
Preferred shares, unissued | 2,000,000 | 2,000,000 |
Common shares, without par value | ||
Common shares, issued | 7,347,000 | 7,347,000 |
Common shares, outstanding | 7,347,000 | 7,347,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Earnings (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net Revenues | $ 12,052 | $ 13,243 |
Costs and Expenses | ||
Salaries, wages and benefits | 5,947 | 5,764 |
Supplies | 410 | 425 |
Other operating expenses | 1,274 | 1,442 |
Rent and lease expense | 137 | 154 |
EHR incentive payments | 0 | (17) |
Depreciation and amortization | 418 | 429 |
Operating Loss | (758) | (99) |
Other Income (Expense): | ||
Gains on sale of assets | 2 | 2 |
Interest expense, net | (61) | (127) |
Loss from Continuing Operations before income taxes | (817) | (224) |
Income Tax expense | 0 | 0 |
Loss from Continuing Operations | (817) | (224) |
Loss from Discontinued Operations, net of tax | (63) | (53) |
Net Loss | (880) | (277) |
Other comprehensive income | 0 | 0 |
Comprehensive Loss | $ (880) | $ (277) |
Continuing Operations: | ||
Basic | $ (0.11) | $ (0.02) |
Diluted | (0.11) | (0.02) |
Discontinued Operations: | ||
Basic | (0.01) | (0.01) |
Diluted | (0.01) | (0.01) |
Net Loss: | ||
Basic | (0.12) | (0.03) |
Diluted | $ (0.12) | $ (0.03) |
Weighted-Average Common Shares Outstanding: | ||
Basic | 7,347 | 9,163 |
Diluted | 7,347 | 9,163 |
Product [Member] | ||
Costs and Expenses | ||
Cost of goods sold | $ 3,917 | $ 4,458 |
Service [Member] | ||
Costs and Expenses | ||
Cost of goods sold | $ 707 | $ 687 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net Cash Provided by Operating Activities | $ 458 | $ 233 |
Cash Flows Provided by (Used in) Investing Activities: | ||
Expenditures for property, plant and equipment - continuing operations | (456) | (684) |
Proceeds from sale of other assets | 2 | 2 |
Net Cash Used in Investing Activities | (454) | (682) |
Cash Flows Used in Financing Activities: | ||
Payments on long-term debt | (67) | (136) |
Net Cash Used in Financing Activities | (67) | (136) |
Net decrease in Cash and Cash Equivalents | (63) | (585) |
Cash and Cash Equivalents Beginning of Period | 3,456 | 10,494 |
Cash and Cash Equivalents End of Period | 3,393 | 9,909 |
Cash Paid for: | ||
Interest | 55 | 111 |
Income taxes | $ 0 | $ 0 |
Basis of Presentation and Adopt
Basis of Presentation and Adoption of Recently Issued Accounting Standards | 3 Months Ended |
Sep. 30, 2018 | |
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, 2018 and for the three month periods ended September 30, 2018 and 2017 have been prepared in accordance with Rule 10-01 S-X 10-K Adoption of Recently Issued Accounting Standards ASC 606, “Revenue from Contracts with Customers” Effective July 1, 2018, the Company adopted the provisions of Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” (“ASC 606”), which supersedes most existing revenue recognition guidance, including industry-specific healthcare guidance, by applying the full retrospective method for all periods presented. ASC 606 provides for a single comprehensive principles-based standard for the recognition of revenue across all industries through the application of the following five-step process: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of the provisions of ASC 606 had no material impact on the Company’s current or historical financial position, results of operations or cash flows. Additionally, management does not anticipate that the provisions of ASC 606 will have an impact on the amount or timing of when the Company recognizes revenue prospectively. However, in accordance with ASC 606, the Company now recognizes the majority of its previously reported provision for doubtful accounts, primarily related to its self-pay |
Business Operations
Business Operations | 3 Months Ended |
Sep. 30, 2018 | |
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 provide healthcare products and services in certain markets in the southeastern United States. Unless the context indicates otherwise, all references to “SunLink,” “we,” “our,” “ours,” “us” and the “Company” refer to SunLink Health Systems, Inc. and our consolidated subsidiaries. References to our specific operations refer to operations conducted through our subsidiaries and references to “we,” “our,” “ours,” and “us” in such context refer to the operations of our subsidiaries. Our business is composed of two business segments, the Healthcare Services segment and the Pharmacy segment. Our Healthcare Services segment subsidiaries own and operate an 84- 66- 100- The business strategy of SunLink is to focus its efforts on expanding the services and improving the operations and profitability of its existing Healthcare Services and Pharmacy business while seeking to sell certain of its subsidiaries’ underperforming assets. The Company is investing in upgrades and improvements to certain of its Healthcare Services and Pharmacy businesses. The Company has used a portion of the cash proceeds from dispositions of assets to pay down debt and certain other liabilities, to repurchase common shares in tender offers completed in February and December 2017, and to make improvements to its Healthcare Services businesses. The Company may also use existing cash, as well as any net proceeds from future dispositions, if any, to prepay debts, return capital to shareholders including through potential public or private purchases of shares, improve its existing businesses, make selective acquisitions of Healthcare Services and Pharmacy businesses and for other general corporate purposes. There is no assurance that any further dispositions 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. 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, 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 private payors, and other corporate objectives. The Company believes certain facilities in its Healthcare Services segment as well as its Pharmacy segment continue to under-perform, and the Company has engaged advisors to assist it in evaluating the possible sale of assets in its Healthcare Services and its Pharmacy business lines. On October 11, 2018, the Company sold a vacant medical office building and approximately two adjacent acres of undeveloped land. After expenses, the Company received net proceeds from the sale of approximately $935 which will be retained for working capital and general corporate purposes. The pre-tax gain |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 Net Revenues: Sold Hospitals $ (6 ) $ (12 ) $ (6 ) $ (12 ) Earnings (Loss) before income taxes: Sold Hospitals $ (38 ) $ (17 ) Life sciences and engineering (25 ) (36 ) Earnings (Loss) before income taxes (63 ) (53 ) Income tax expense 0 0 Earnings (Loss) from discontinued operations $ (63 ) $ (53 ) Sold Hospitals Life Sciences and Engineering Segment The components of pension expense for the three months ended September 31, 2018 and 2017, respectively, were as follows: Three Months Ended September 30, 2018 2017 Interest Cost $ 14 $ 14 Expected return on assets (9 ) (9 ) Amortization of prior service cost 20 31 Net pension expense $ 25 $ 36 SunLink contributed $25 to the plan in the three months ended September 30, 2018 and expects to contribute an additional $75 during the last three fiscal quarter of the fiscal year ending June 30, 2019. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Sep. 30, 2018 | |
Federal Home Loan Banks [Abstract] | |
Shareholders' Equity | Note 4. – Shareholders’ Equity Stock-Based Compensation – |
Revenue Recognition and Account
Revenue Recognition and Accounts Receivables | 3 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Revenue Recognition and Accounts Receivables | Note 5. – Revenue Recognition and Accounts Receivables Revenue Recognition Effective July 1, 2018, the Company adopted the provisions of Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” which supersedes most existing revenue recognition guidance, including industry-specific healthcare guidance, by applying the full retrospective method for all periods presented. ASC 606 provides for a single comprehensive principles-based standard for the recognition of revenue across all industries through the application of the following five-step process: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of the provisions of ASC 606 had no material impact on the Company’s current or historical financial position, results of operations or cash flows. Additionally, management does not anticipate that the provisions of ASC 606 will have an impact on the amount or timing of when the Company recognizes revenue prospectively. However, in accordance with ASC 606 the Company now recognizes the majority of its previously reported provision for doubtful accounts, primarily related to its self-pay Disaggregation of Revenue The Company disaggregates revenue from contracts with its patients by reportable operating segments and payors. The Company determines that disaggregating revenue into these categories achieves the disclosure objectives to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. A reconciliation of disaggregated revenue to segment revenue is disclosed in Note 12, Financial Information by Segment. The Company’s service specific revenue recognition policies are as follows: Healthcare Services The Company’s revenue is derived primarily from providing healthcare services to patients and is recognized on the date services are provided at amounts billable to individual patients, adjusted for estimates for variable consideration. For patients under reimbursement arrangements with third-party payors, including Medicaid, Medicare and private insurers, revenue is recorded based on contractually agreed-upon amounts or rates, adjusted for estimates for variable consideration, on a per patient, daily basis or as services are performed. Pharmacy The Company’s revenue is derived primarily from providing pharmacy services to patients and is recognized on the date services are provided at amounts billable to individual patients, adjusted for estimates for variable consideration. Revenue is recognized when control of the promised goods or services are transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Each prescription claim represents a separate performance obligation of the Company, separate and distinct from other prescription claims under customer arrangements. Significant portions of the revenue from sales of pharmaceutical and medical products are reimbursed by the federal Medicare Part D program and, to a lesser extent, state Medicaid programs. The Company monitors its revenues and receivables from these reimbursement sources, as well as other third-party insurance payors, and reduces revenue at the revenue recognition date, to properly account for the variable consideration due to anticipated differences between billed and reimbursed amounts. Accordingly, the total net revenues and receivables reported in the Company’s financial statements are recorded at the amount expected to be ultimately received from these payors. Medicare Revenue Net healthcare services revenue is recorded under the Medicare prospective payment system based on an episode payment rate that is subject to adjustment based on certain variables including, but not limited to: (a) an outlier payment if patient care was unusually costly; (b) a low utilization payment adjustment if the number of visits was fewer than five; (c) a partial payment if the patient transferred to another provider or the Company received a patient from another provider before completing the episode; (d) a payment adjustment based upon the level of therapy services required; (e) the number of episodes of care provided to a patient, regardless of whether the same provider provided care for the entire series of episodes; (f) changes in the base episode payments established by the Medicare program; (g) adjustments to the base episode payments for case mix and geographic wages; and (h) recoveries of overpayments. The Company makes adjustments to Medicare revenue on completed episodes to reflect differences between estimated and actual payment amounts, an inability to obtain appropriate billing documentation or authorizations acceptable to the payor and other reasons unrelated to credit risk. Revenue is also adjusted for estimates for variable consideration. Therefore, the Company believes that its reported net service revenue and patient accounts receivable will be the net amounts to be realized from Medicare for services rendered. In addition to revenue recognized on completed services, the Company also recognizes a portion of revenue associated with services in progress. Services in progress are days of care that begin during the reporting period but were not completed as of the end of the period. As such, the Company estimates revenue and recognizes it on a daily basis. The primary factors underlying this estimate are the number of services in progress at the end of the reporting period, expected Medicare revenue per episode and its estimate of the average percentage complete based on services performed. Non-Medicare The Company recognizes revenue in a similar manner as it recognizes Medicare revenue for service-based rates that are paid by other insurance carriers, including Medicare Advantage programs; however, these rates can vary based upon the negotiated terms. Revenue is recorded on an accrual basis based upon the date of service at amounts equal to its established or estimated per-visit Impact of New Revenue Guidance on Financial Statement Line Items The following tables summarize the impacts of adopting ASC 606 on the Company’s condensed consolidated statements of operations and comprehensive earnings (loss). There was no impact to the condensed consolidated balance sheet as of June 30, 2018 or condensed consolidated statements of cash flows for the year ended June 30, 2018 and for the year ended June 30, 2017, respectively. The majority of what was previously presented as bad debt expense of the Pharmacy Segment under operating expenses has been incorporated as an implicit price concession factored into the calculation of net revenues. Subsequent material events that alter the payor’s ability to pay are recorded as bad debt expense. There is no material change, related to the adoption of ASC 606, for the presentation of the Company’s Fiscal 2018 revenues or prior years. Historically, the Company only presented total revenue for all revenue services in “Operating Revenues”. What was previously presented as provision for bad debts of Pharmacy segment under operating expenses has been incorporated as an implicit price concession factored into the calculation of net revenues, as shown in the “Adjustments” line in the table below. The Condensed Consolidated Statement of Operations and Comprehensive Earnings (Loss) for the three months ended September 30, 2017 has been restated to reflect the adoption of ASC 606. Subsequent material events that alter the payor’s ability to pay are recorded as bad debt expense. Prior period results reflect reclassifications, for comparative purposes, related to the adoption of ASC 606, for the presentation of the Company’s revenues. Historically, the Company only presented total revenue for all revenue services. This reclassification had no effect on the reported results of operations. Revenues for the fiscal quarter ended September 30, 2017 and the fiscal years ended June 30, 2018 and June 30, 2017 are summarized in the following tables: Fiscal Quarter Ended Fiscal Years Ended June 30, September 30, 2017 2018 2017 Total Net Revenues $ 13,363 $ 52,872 $ 53,288 Adjustment for bad debts of Pharmacy segment (120 ) (703 ) (438 ) Net Revenues $ 13,243 $ 52,169 $ 52,850 Total Cost of goods sold $ 4,458 $ 18,529 $ 19,917 Adjustment for bad debts of Pharmacy segment 0 0 0 Cost of goods sold $ 4,458 $ 18,529 $ 19,917 Total Expenses $ 13,462 $ 54,866 $ 57,798 Adjustment for bad debts of Pharmacy segment (120 ) (703 ) (438 ) Total Expenses $ 13,342 $ 54,163 $ 57,360 Practical Expedients and Exemptions The Company’s contracts with its patients have an original duration of one year or less, therefore, the Company uses the practical expedient applicable to its contracts and does not consider the time value of money. Further, because of the short duration of these contracts, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. In addition, the Company has applied the practical expedient provided by ASC 340, Other Assets and Deferred Costs, and all incremental customer contract acquisition costs are expensed as they are incurred because the amortization period would have been one year or less. Revenues by payor were as follows for the three months ended September 30, 2018 and 2017: Three Months Ended 2018 2017 Medicare $ 4,520 $ 5,349 Medicaid 4,274 3,794 Retail and Institutional Pharmacy 1,633 1,686 Managed Care & Other Insurance 1,122 1,891 Self-pay 229 103 Rent 88 88 Other 186 332 Total Net Revenues $ 12,052 $ 13,243 Summary information for accounts receivable is as follows: September 30, June 30, Accounts receivable (net of contractual allowances) $ 5,057 $ 5,352 Less allowance for concession adjustments (451 ) (529 ) Patient accounts receivable - net $ 4,606 $ 4,823 The following is a summary of the activity in the allowance for concession adjustments for the Healthcare Services Segment and the Pharmacy Segment for the three months ended September 30, 2018 and 2017: 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 34 103 137 Discontinued Operations (6 ) 0 (6 ) Accounts written off, net of recoveries (96 ) (113 ) (209 ) Balance at September 30, 2018 $ 185 $ 266 $ 451 Three Months Ended September 30, 2017 Healthcare Pharmacy Total Balance at July 1, 2017 $ 328 $ 224 $ 552 Additions recognized as a reduction to revenues: Continuing Operations 70 120 190 Discontinued Operations 12 0 12 Accounts written off, net of recoveries (102 ) (152 ) (254 ) Balance at September 30, 2017 $ 308 $ 192 $ 500 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6. – Intangible Assets Intangibles consist of the following, net of amortization: September 30, June 30, 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 (1,451 ) (1,422 ) Net Intangibles $ 1,441 $ 1,470 Amortization expense was $29 and $29 for the three months ended September 30, 2018 and 2017, respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 7. –Long-Term Debt Long-term debt consisted of the following: September 30, June 30, Trace RDA Loan $ 3,210 $ 3,277 Less unamortized debt issuance costs (213 ) (219 ) Less current maturities (260 ) (255 ) Long-term Debt $ 2,737 $ 2,803 Trace RDA Loan— 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. The ability of Trace to continue to make the required debt service payments under the Trace RDA Loan depends on, among other things, its ability to generate sufficient cash, including from operating activities and asset sales. If Trace is unable to generate sufficient cash to meet debt service payments on the Trace RDA Loan, including in the event the lender were to declare an event of default and accelerate the maturity of the indebtedness, such failure could have material adverse effects on the Company. The Trace RDA Loan is guaranteed by the Company and one subsidiary. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. – Income Taxes Income tax expense of $0 ($0 federal expense and state tax expense) and income tax expense of $0 ($0 federal expense and $0 state tax expense) was recorded for continuing operations for the three months ended September 30, 2018 and 2017, 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. The Tax Cut and Jobs Act (“TCJA”) was enacted on December 22, 2017. Under ASC 740, the impact of changes in tax law must be recorded in the financial statements in the reporting period that included the date of enactment. In addition, in conjunction with the TCJA, on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which provides guidance on accounting for the tax effects of the TCJA. SAB 118 allows for recording certain effects of the TCJA as “provisional” during a one-year measurement period, which for the Company will end in the second quarter of fiscal 2019. At September 30, 2018, 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 $8,610 against the deferred tax asset so that there is no net long-term deferred income tax asset or liability at September 30, 2018. 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, 2018 that all the deferred tax assets should have full valuation allowances was the three-year cumulative pre-tax For Federal income tax purposes, at September 30, 2018, the Company had approximately $16,100 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. These net operating loss carryforwards expire primarily in fiscal 2023 through fiscal 2038; however with the enactment of the Tax Cut and Jobs Act (“TCJA”) on December 22, 2017, federal net operating loss carryforwards generated in taxable years beginning after December 31, 2017 now have no expiration date. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9. – Commitments and Contingencies Contractual obligations, commitments and contingencies related to outstanding debt, non-cancelable Payments due in: Long-Term Operating Interest on 1 year $ 260 $ 557 $ 179 2 years 301 417 178 3 years 321 229 158 4 years 341 63 137 5+ years 1,987 5 325 $ 3,210 $ 1,271 $ 977 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10. – 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 $76 and $65 for legal services to this law firm in the three months ended September 30, 2018 and 2017, respectively. Included in the Company’s condensed consolidated balance sheets at September 30, 2018 and June 30, 2018 is $65 and $10, respectively, of amounts payable to this law firm. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. – Subsequent Events On October 11, 2018, the Company sold a vacant medical office building and approximately two adjacent acres of undeveloped land. After expenses, the Company received net proceeds from the sale of approximately $935 which will be retained for working capital and general corporate purposes. The pre-tax gain |
Financial Information by Segmen
Financial Information by Segment | 3 Months Ended |
Sep. 30, 2018 | |
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 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, 2018 and 2017 and for the three months then ended is as follows: Healthcare Pharmacy Corporate Total As of and for the three months ended September 30, 2018, Net revenues from external customers $ 5,536 $ 6,516 $ 0 $ 12,052 Operating profit (loss) (247 ) (57 ) (454 ) (758 ) Depreciation and amortization 162 256 0 418 Assets 13,451 8,067 4,195 25,713 Expenditures for property, plant and equipment 187 269 0 456 As of and for the three months ended September 30, 2017 Net revenues from external customers $ 5,654 $ 7,589 $ 0 $ 13,243 Operating profit (loss) (57 ) 423 (465 ) (99 ) Depreciation and amortization 158 270 1 429 Assets 14,576 9,614 11,212 35,402 Expenditures for property, plant and equipment 476 208 0 684 |
Basis of Presentation and Ado_2
Basis of Presentation and Adoption of Recently Issued Accounting Standards (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
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, 2018 and for the three month periods ended September 30, 2018 and 2017 have been prepared in accordance with Rule 10-01 S-X 10-K |
Adoption of Recently Issued Accounting Standards | Adoption of Recently Issued Accounting Standards ASC 606, “Revenue from Contracts with Customers” Effective July 1, 2018, the Company adopted the provisions of Accounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers” (“ASC 606”), which supersedes most existing revenue recognition guidance, including industry-specific healthcare guidance, by applying the full retrospective method for all periods presented. ASC 606 provides for a single comprehensive principles-based standard for the recognition of revenue across all industries through the application of the following five-step process: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The adoption of the provisions of ASC 606 had no material impact on the Company’s current or historical financial position, results of operations or cash flows. Additionally, management does not anticipate that the provisions of ASC 606 will have an impact on the amount or timing of when the Company recognizes revenue prospectively. However, in accordance with ASC 606, the Company now recognizes the majority of its previously reported provision for doubtful accounts, primarily related to its self-pay |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 Net Revenues: Sold Hospitals $ (6 ) $ (12 ) $ (6 ) $ (12 ) Earnings (Loss) before income taxes: Sold Hospitals $ (38 ) $ (17 ) Life sciences and engineering (25 ) (36 ) Earnings (Loss) before income taxes (63 ) (53 ) Income tax expense 0 0 Earnings (Loss) from discontinued operations $ (63 ) $ (53 ) |
Components of Pension Expense | The components of pension expense for the three months ended September 31, 2018 and 2017, respectively, were as follows: Three Months Ended September 30, 2018 2017 Interest Cost $ 14 $ 14 Expected return on assets (9 ) (9 ) Amortization of prior service cost 20 31 Net pension expense $ 25 $ 36 |
Revenue Recognition and Accou_2
Revenue Recognition and Accounts Receivables (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Summary of Revenues | Revenues by payor were as follows for the three months ended September 30, 2018 and 2017: Three Months Ended 2018 2017 Medicare $ 4,520 $ 5,349 Medicaid 4,274 3,794 Retail and Institutional Pharmacy 1,633 1,686 Managed Care & Other Insurance 1,122 1,891 Self-pay 229 103 Rent 88 88 Other 186 332 Total Net Revenues $ 12,052 $ 13,243 |
Summary Information for Accounts Receivable | Summary information for accounts receivable is as follows: September 30, June 30, Accounts receivable (net of contractual allowances) $ 5,057 $ 5,352 Less allowance for concession adjustments (451 ) (529 ) Patient accounts receivable - net $ 4,606 $ 4,823 |
Summary of Allowance for Concession Adjustments | The following is a summary of the activity in the allowance for concession adjustments for the Healthcare Services Segment and the Pharmacy Segment for the three months ended September 30, 2018 and 2017: 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 34 103 137 Discontinued Operations (6 ) 0 (6 ) Accounts written off, net of recoveries (96 ) (113 ) (209 ) Balance at September 30, 2018 $ 185 $ 266 $ 451 Three Months Ended September 30, 2017 Healthcare Pharmacy Total Balance at July 1, 2017 $ 328 $ 224 $ 552 Additions recognized as a reduction to revenues: Continuing Operations 70 120 190 Discontinued Operations 12 0 12 Accounts written off, net of recoveries (102 ) (152 ) (254 ) Balance at September 30, 2017 $ 308 $ 192 $ 500 |
Accounting Standards Update 2014-09 [Member] | |
Summary of Revenues | Revenues for the fiscal quarter ended September 30, 2017 and the fiscal years ended June 30, 2018 and June 30, 2017 are summarized in the following tables: Fiscal Quarter Ended Fiscal Years Ended June 30, September 30, 2017 2018 2017 Total Net Revenues $ 13,363 $ 52,872 $ 53,288 Adjustment for bad debts of Pharmacy segment (120 ) (703 ) (438 ) Net Revenues $ 13,243 $ 52,169 $ 52,850 Total Cost of goods sold $ 4,458 $ 18,529 $ 19,917 Adjustment for bad debts of Pharmacy segment 0 0 0 Cost of goods sold $ 4,458 $ 18,529 $ 19,917 Total Expenses $ 13,462 $ 54,866 $ 57,798 Adjustment for bad debts of Pharmacy segment (120 ) (703 ) (438 ) Total Expenses $ 13,342 $ 54,163 $ 57,360 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangibles consist of the following, net of amortization: September 30, June 30, 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 (1,451 ) (1,422 ) Net Intangibles $ 1,441 $ 1,470 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following: September 30, June 30, Trace RDA Loan $ 3,210 $ 3,277 Less unamortized debt issuance costs (213 ) (219 ) Less current maturities (260 ) (255 ) Long-term Debt $ 2,737 $ 2,803 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations, Commitments and Contingencies | Contractual obligations, commitments and contingencies related to outstanding debt, non-cancelable Payments due in: Long-Term Operating Interest on 1 year $ 260 $ 557 $ 179 2 years 301 417 178 3 years 321 229 158 4 years 341 63 137 5+ years 1,987 5 325 $ 3,210 $ 1,271 $ 977 |
Financial Information by Segm_2
Financial Information by Segment (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and 2017 and for the three months then ended is as follows: Healthcare Pharmacy Corporate Total As of and for the three months ended September 30, 2018, Net revenues from external customers $ 5,536 $ 6,516 $ 0 $ 12,052 Operating profit (loss) (247 ) (57 ) (454 ) (758 ) Depreciation and amortization 162 256 0 418 Assets 13,451 8,067 4,195 25,713 Expenditures for property, plant and equipment 187 269 0 456 As of and for the three months ended September 30, 2017 Net revenues from external customers $ 5,654 $ 7,589 $ 0 $ 13,243 Operating profit (loss) (57 ) 423 (465 ) (99 ) Depreciation and amortization 158 270 1 429 Assets 14,576 9,614 11,212 35,402 Expenditures for property, plant and equipment 476 208 0 684 |
Business Operations - Additiona
Business Operations - Additional Information (Detail) $ in Thousands | Oct. 11, 2018USD ($)a | Dec. 31, 2018USD ($) | Sep. 30, 2018SegmentBedServices |
Business And Organization [Line Items] | |||
Number of segments | Segment | 2 | ||
Medical Office Building And Undeveloped Land [Member] | Scenario, Forecast [Member] | |||
Business And Organization [Line Items] | |||
Earnings (Loss) before income taxes | $ | $ 452 | ||
Medical Office Building And Undeveloped Land [Member] | Subsequent Event [Member] | |||
Business And Organization [Line Items] | |||
Proceeds from sale | $ | $ 935 | ||
Undeveloped land sold | a | 2 | ||
Healthcare Services Segment [Member] | Community Hospital [Member] | |||
Business And Organization [Line Items] | |||
Number of licensed-bed owned and operated by a subsidiary | 84 | ||
Healthcare Services Segment [Member] | Nursing Home [Member] | Mississippi [Member] | |||
Business And Organization [Line Items] | |||
Number of bed in nursing home owned and operated by subsidiary | 66 | ||
Healthcare Services Segment [Member] | Nursing Home [Member] | Georgia [Member] | |||
Business And Organization [Line Items] | |||
Number of bed in nursing home owned and operated by subsidiary | 100 | ||
Pharmacy Segment [Member] | Louisiana [Member] | |||
Business And Organization [Line Items] | |||
Number of material service lines | Services | 4 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Discontinued Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings (Loss) before income taxes: | ||
Income tax expense | $ 0 | $ 0 |
Earnings (Loss) from discontinued operations | (63) | (53) |
Discontinued Operations, Disposed of by Sale [Member] | ||
Net Revenues: | ||
Net revenues | (6) | (12) |
Earnings (Loss) before income taxes: | ||
Earnings (Loss) before income taxes | (63) | (53) |
Discontinued Operations, Disposed of by Sale [Member] | Sold Hospitals [Member] | ||
Net Revenues: | ||
Net revenues | (6) | (12) |
Earnings (Loss) before income taxes: | ||
Earnings (Loss) before income taxes | (38) | (17) |
Discontinued Operations, Disposed of by Sale [Member] | Life Sciences and Engineering [Member] | ||
Earnings (Loss) before income taxes: | ||
Earnings (Loss) before income taxes | $ (25) | $ (36) |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) $ in Thousands | 3 Months Ended | 50 Months Ended |
Sep. 30, 2018USD ($) | Aug. 31, 2016Hospital | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of Hospitals Sold | Hospital | 4 | |
Life Sciences and Engineering [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Contribution to pension plan | $ 25 | |
Expected contribution to pension plan during the remaining fiscal year | $ 75 |
Discontinued Operations - Compo
Discontinued Operations - Components of Pension Expense (Detail) - Life Sciences and Engineering [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Interest Cost | $ 14 | $ 14 |
Expected return on assets | (9) | (9) |
Amortization of prior service cost | 20 | 31 |
Net pension expense | $ 25 | $ 36 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation, amount recognized | $ 1 | $ 5 |
2011 Director Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted | 0 | 0 |
Revenue Recognition and Accou_3
Revenue Recognition and Accounts Receivables - Summary of Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues | $ 12,052 | $ 13,243 | $ 52,169 | $ 52,850 |
Total Expenses | 13,342 | 54,163 | 57,360 | |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues | 13,363 | 52,872 | 53,288 | |
Cost of goods sold | 4,458 | 18,529 | 19,917 | |
Total Expenses | 13,462 | 54,866 | 57,798 | |
Accounting Standards Update 2014-09 [Member] | Adjustment for Bad Debts of Pharmacy Segment [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues | (120) | (703) | (438) | |
Cost of goods sold | 0 | 0 | 0 | |
Total Expenses | (120) | (703) | (438) | |
Product [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Cost of goods sold | $ 3,917 | $ 4,458 | $ 18,529 | $ 19,917 |
Revenue Recognition and Accou_4
Revenue Recognition and Accounts Receivables - Summary of Revenue by Payor (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net Revenues | $ 12,052 | $ 13,243 | $ 52,169 | $ 52,850 |
Medicare [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues before provision for doubtful accounts | 4,520 | 5,349 | ||
Medicaid [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues before provision for doubtful accounts | 4,274 | 3,794 | ||
Retail and Institutional Pharmacy [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues before provision for doubtful accounts | 1,633 | 1,686 | ||
Managed Care & Other Insurance [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues before provision for doubtful accounts | 1,122 | 1,891 | ||
Self-Pay [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues before provision for doubtful accounts | 229 | 103 | ||
Rent [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues before provision for doubtful accounts | 88 | 88 | ||
Other [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Revenues before provision for doubtful accounts | $ 186 | $ 332 |
Revenue Recognition and Accou_5
Revenue Recognition and Accounts Receivables - Summary Information for Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 |
Receivables [Abstract] | ||||
Accounts receivable (net of contractual allowances) | $ 5,057 | $ 5,352 | ||
Less allowance for concession adjustments | (451) | (529) | $ (500) | $ (552) |
Patient accounts receivable - net | $ 4,606 | $ 4,823 |
Revenue Recognition and Accou_6
Revenue Recognition and Accounts Receivables - Summary of Allowance for Concession Adjustments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Beginning balance | $ 529 | $ 552 |
Accounts written off, net of recoveries | (209) | (254) |
Ending balance | 451 | 500 |
Continuing Operations [Member] | ||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Additions recognized as a reduction to revenues | 137 | 190 |
Discontinued Operations [Member] | ||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Additions recognized as a reduction to revenues | (6) | 12 |
Healthcare Services Segment [Member] | ||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Beginning balance | 253 | 328 |
Accounts written off, net of recoveries | (96) | (102) |
Ending balance | 185 | 308 |
Healthcare Services Segment [Member] | Continuing Operations [Member] | ||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Additions recognized as a reduction to revenues | 34 | 70 |
Healthcare Services Segment [Member] | Discontinued Operations [Member] | ||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Additions recognized as a reduction to revenues | (6) | 12 |
Pharmacy Segment [Member] | ||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Beginning balance | 276 | 224 |
Accounts written off, net of recoveries | (113) | (152) |
Ending balance | 266 | 192 |
Pharmacy Segment [Member] | Continuing Operations [Member] | ||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Additions recognized as a reduction to revenues | 103 | 120 |
Pharmacy Segment [Member] | Discontinued Operations [Member] | ||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||
Additions recognized as a reduction to revenues | $ 0 | $ 0 |
Intangible Assets - Intangible
Intangible Assets - Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Indefinite-lived Intangible Assets [Line Items] | ||
Total | $ 1,441 | $ 1,470 |
Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite and Indefinite-Lived Intangible Assets, Gross | 2,892 | 2,892 |
Accumulated Amortization | (1,451) | (1,422) |
Total | 1,441 | 1,470 |
Trade Name [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 1,180 | 1,180 |
Customer Relationships [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,089 | 1,089 |
Medicare License [Member] | Specialty Pharmacy Segment [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 623 | $ 623 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
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, 2018 | Jun. 30, 2018 |
Debt Instrument [Line Items] | ||
Less unamortized debt issuance costs | $ (213) | $ (219) |
Less current maturities | (260) | (255) |
Long-term Debt | 2,737 | 2,803 |
Trace RDA Loan [Member] | ||
Debt Instrument [Line Items] | ||
RDA Loan | $ 3,210 | $ 3,277 |
Long-Term Debt (Trace RDA Loan
Long-Term Debt (Trace RDA Loan and Trace Working Capital Loan) - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 26, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||
Prepayment of loan | $ 67 | $ 136 | |
Trace RDA Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity period | 15 years | ||
Prepayment of loan | $ 3,548 | ||
Debt instrument description | Prime rate 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 | 6.25% | ||
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, 2018 | Sep. 30, 2017 | |
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 | 8,610,000 | |
Net long-term deferred income tax asset or liability | 0 | |
Net operating loss carry-forward | $ 16,100,000 | |
Net operating loss carryforward expiration year | 2023 through fiscal 2038 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Contractual Obligations, Commitments and Contingencies (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Long-Term Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | $ 260 |
Payments due in 2 years | 301 |
Payments due in 3 years | 321 |
Payments due in 4 years | 341 |
Payments due in 5+ years | 1,987 |
Contractual obligations, commitments and contingencies | 3,210 |
Operating Leases [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | 557 |
Payments due in 2 years | 417 |
Payments due in 3 years | 229 |
Payments due in 4 years | 63 |
Payments due in 5+ years | 5 |
Contractual obligations, commitments and contingencies | 1,271 |
Interest on Outstanding Debt [Member] | |
Commitment And Contingencies [Line Items] | |
Payments due in 1 year | 179 |
Payments due in 2 years | 178 |
Payments due in 3 years | 158 |
Payments due in 4 years | 137 |
Payments due in 5+ years | 325 |
Contractual obligations, commitments and contingencies | $ 977 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Management [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | |||
Legal services to these law firms | $ 76 | $ 65 | |
Amount payable to law firms | $ 65 | $ 10 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Medical Office Building And Undeveloped Land [Member] $ in Thousands | Oct. 11, 2018USD ($)a | Dec. 31, 2018USD ($) |
Scenario, Forecast [Member] | ||
Subsequent Event [Line Items] | ||
Earnings (Loss) before income taxes | $ 452 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from sale | $ 935 | |
Undeveloped land to sale | a | 2 |
Financial Information by Segm_3
Financial Information by Segment - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2018Segment | |
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 | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net revenues from external customers | $ 12,052 | $ 13,243 | $ 52,169 | $ 52,850 |
Operating profit (loss) | (758) | (99) | ||
Depreciation and amortization | 418 | 429 | ||
Assets | 25,713 | 35,402 | $ 26,176 | |
Expenditures for property, plant and equipment | 456 | 684 | ||
Operating Segments [Member] | Healthcare Services Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues from external customers | 5,536 | 5,654 | ||
Operating profit (loss) | (247) | (57) | ||
Depreciation and amortization | 162 | 158 | ||
Assets | 13,451 | 14,576 | ||
Expenditures for property, plant and equipment | 187 | 476 | ||
Operating Segments [Member] | Pharmacy Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues from external customers | 6,516 | 7,589 | ||
Operating profit (loss) | (57) | 423 | ||
Depreciation and amortization | 256 | 270 | ||
Assets | 8,067 | 9,614 | ||
Expenditures for property, plant and equipment | 269 | 208 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues from external customers | 0 | 0 | ||
Operating profit (loss) | (454) | (465) | ||
Depreciation and amortization | 0 | 1 | ||
Assets | 4,195 | 11,212 | ||
Expenditures for property, plant and equipment | $ 0 | $ 0 |