Attached files
| file | filename |
|---|---|
| EX-99.4 - EX-99.4 - SUNLINK HEALTH SYSTEMS INC | d228048dex994.htm |
| EX-99.3 - EX-99.3 - SUNLINK HEALTH SYSTEMS INC | d228048dex993.htm |
| EX-99.2 - EX-99.2 - SUNLINK HEALTH SYSTEMS INC | d228048dex992.htm |
| EX-99.1 - EX-99.1 - SUNLINK HEALTH SYSTEMS INC | d228048dex991.htm |
| 8-K - FORM 8-K - SUNLINK HEALTH SYSTEMS INC | d228048d8k.htm |
Exhibit 99.5
SUNLINK HEALTH SYSTEMS, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
The business strategy of SunLink Health Systems, Inc. (“SunLink” or the “Company”) is to focus its efforts on improving internal operations of its existing its pharmacy business and healthcare facilities and on the sale or disposition of its underperforming assets. The Company considers dispositions of 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, prevailing reimbursement rates for drugs and medical services 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, subject to available funds, potential healthcare facility upgrades and improvements.
On August 19, 2016, the Company’s Southern Health Corporation of Dahlonega, (“Dahlonega”) d/b/a Chestatee Regional Hospital (“Chestatee”) subsidiary sold substantially all of the assets and certain liabilities of Chestatee Regional Hospital (“Chestatee”) in Dahlonega, Georgia through an Asset Purchase Agreement (“the Agreement”) with Durall Capital Holdings, LLC (“Buyer”) for $15,000,000 subject to adjustment for the book value of certain assets purchased and certain liabilities assumed at the sale date. A portion of the net proceeds will be allotted for the payment of debt and the balance will retained for working capital and general corporate purposes.
As of the June 30, 2015 balance sheet, the total assets sold by Chestatee were approximately 15.87% percent of SunLink’s total assets and, accordingly, constituted the disposition of discontinued operations under ASC 205, Presentation of Financial Statements, and ASC 360, Property, Plant, and Equipment.
1
SUNLINK HEALTH SYSTEMS, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
As of March 31, 2016
(All amounts in thousands)
| Historical SunLink March 31, 2016 As Reported |
Pro Forma Adjustments |
Pro Forma Results | ||||||||||||
| Current Assets: |
||||||||||||||
| Cash and cash equivalents |
$ | 3,889 | $ | 14,330 | (a) | $ | 18,219 | |||||||
| Receivables, net |
8,463 | (1,656 | ) | (b) | 6,807 | |||||||||
| Inventory |
3,618 | (612 | ) | (b) | 3,006 | |||||||||
| Prepaid expenses and other |
2,440 | (348 | ) | (b) | 2,092 | |||||||||
|
|
|
|
|
|
|
|||||||||
| Total Current Assets |
18,410 | 11,714 | 30,124 | |||||||||||
| Property, plant and equipment, net |
21,854 | (7,734 | ) | (b) | 14,120 | |||||||||
| Goodwill & Intangible assets |
3,192 | — | 3,192 | |||||||||||
| Other noncurrent assets |
1,463 | — | 1,463 | |||||||||||
|
|
|
|
|
|
|
|||||||||
| Total Assets |
$ | 44,919 | $ | 3,980 | $ | 48,899 | ||||||||
|
|
|
|
|
|
|
|||||||||
| Current Liabilities: |
||||||||||||||
| Accounts payable |
$ | 4,975 | $ | (1,967 | ) | (b) | $ | 3,008 | ||||||
| Accrued payroll and related taxes |
3,189 | (576 | ) | (b) | 2,613 | |||||||||
| Current maturities of long-term debt |
8,123 | — | 8,123 | |||||||||||
| Other current liabilities |
2,769 | (75 | ) | (b) | 2,694 | |||||||||
|
|
|
|
|
|
|
|||||||||
| Total Current Liabilities |
19,056 | (2,618 | ) | 16,438 | ||||||||||
| Long-term debt |
3,321 | — | 3,321 | |||||||||||
| Noncurrent liability for prof. liability risks |
1,217 | — | 1,217 | |||||||||||
| Other long-term liabilities |
566 | — | 566 | |||||||||||
| Shareholders’ Equity: |
||||||||||||||
| Common shares |
4,722 | — | 4,722 | |||||||||||
| Additional paid-in capital |
13,529 | — | 13,529 | |||||||||||
| Retained earnings |
2,882 | 6,598 | (c) | 9,480 | ||||||||||
| Accumulated other comprehensive loss |
(374 | ) | — | (374 | ) | |||||||||
|
|
|
|
|
|
|
|||||||||
| Total Shareholders’ Equity |
20,759 | 6,598 | 27,357 | |||||||||||
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|
|||||||||
| Total Liabilities and Shareholders’ Equity |
$ | 44,919 | $ | 3,980 | $ | 48,899 | ||||||||
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|
|
|
|||||||||
The accompanying notes are an integral part of this unaudited pro forma balance sheet.
2
SUNLINK HEALTH SYSTEMS, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
As of June 30, 2015
(All amounts in thousands)
| Historical | ||||||||||||||
| SunLink | ||||||||||||||
| June 30, 2015 | Pro Forma | |||||||||||||
| As Reported | Adjustments | Pro Forma Results | ||||||||||||
| Current Assets: |
||||||||||||||
| Cash and cash equivalents |
$ | 5,974 | $ | 15,000 | (a) | $ | 20,974 | |||||||
| Receivables, net |
9,625 | (1,946 | ) | (b) | 7,679 | |||||||||
| Inventory |
3,758 | (611 | ) | (b) | 3,147 | |||||||||
| Deferred income tax asset |
1,967 | (846 | ) | (d) | 1,121 | |||||||||
| Prepaid expenses and other |
3,768 | (232 | ) | (b) | 3,536 | |||||||||
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|
|
|
|
|
|||||||||
| Total Current Assets |
25,092 | 11,365 | 36,457 | |||||||||||
| Property, plant and equipment, net |
22,333 | (8,090 | ) | (b) | 14,243 | |||||||||
| Goodwill & Intangible assets |
3,298 | — | 3,298 | |||||||||||
| Noncurrent deferred income tax asset |
4,885 | (592 | ) | (e) | 4,293 | |||||||||
| Other noncurrent assets |
1,520 | — | 1,520 | |||||||||||
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|
|||||||||
| Total Assets |
$ | 57,128 | $ | 2,683 | $ | 59,811 | ||||||||
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|
|||||||||
| Current Liabilities: |
||||||||||||||
| Accounts payable |
$ | 4,459 | $ | (1,471 | ) | (c) | $ | 2,988 | ||||||
| Accrued payroll and related taxes |
3,946 | (471 | ) | (b) | 3,475 | |||||||||
| Current maturities of long-term debt |
816 | — | 816 | |||||||||||
| Other current liabilities |
1,543 | 896 | (d) | 2,439 | ||||||||||
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|
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|
|
|
|||||||||
| Total Current Liabilities |
10,764 | (1,046 | ) | 9,718 | ||||||||||
| Long-term debt |
11,229 | — | 11,229 | |||||||||||
| Noncurrent liability for prof. liability risks |
894 | — | 894 | |||||||||||
| Other long-term liabilities |
681 | — | 681 | |||||||||||
| Shareholders’ Equity: |
||||||||||||||
| Common shares |
4,722 | — | 4,722 | |||||||||||
| Additional paid-in capital |
13,481 | — | 13,481 | |||||||||||
| Retained earnings |
15,731 | 3,729 | (f) | 19,460 | ||||||||||
| Accumulated other comprehensive loss |
(374 | ) | — | (374 | ) | |||||||||
|
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|
|||||||||
| Total Shareholders’ Equity |
33,560 | 3,729 | 37,289 | |||||||||||
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|||||||||
| Total Liabilities and Shareholders’ Equity |
$ | 57,128 | $ | 2,683 | $ | 59,811 | ||||||||
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|
|||||||||
The accompanying notes are an integral part of this unaudited pro forma balance sheet.
3
UNAUDITED PRO FORMA COMBINED STATEMENT OF EARNINGS AND LOSS
FOR THE NINE MONTHS ENDED MARCH 31, 2016
(Amounts in thousands, except per share amounts)
| Historical | ||||||||||||||
| SunLink | ||||||||||||||
| Nine Months | ||||||||||||||
| Ended | ||||||||||||||
| March 31, 2016 | Pro Forma | Pro Forma | ||||||||||||
| As Reported | Adjustments | Results | ||||||||||||
| Net revenues |
$ | 60,729 | $ | (11,357 | ) | (a) | $ | 49,372 | ||||||
| Cost of goods sold |
15,582 | — | 15,582 | |||||||||||
| Salaries, wages and benefits |
30,787 | (6,997 | ) | (a) | 23,790 | |||||||||
| Provision for bad debts of pharmacy segment |
429 | — | 429 | |||||||||||
| Supplies |
4,654 | (2,168 | ) | (a) | 2,486 | |||||||||
| Purchased Services |
3,722 | (1,200 | ) | (a) | 2,522 | |||||||||
| Other operating expenses |
7,778 | (1,545 | ) | (a) | 6,233 | |||||||||
| Rents and leases |
945 | (363 | ) | (a) | 582 | |||||||||
| Depreciation and amortization |
1,778 | (422 | ) | (a) | 1,356 | |||||||||
| Electronic Health Records incentives |
100 | (93 | ) | (a) | 7 | |||||||||
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|
|||||||||
| Operating profit |
(5,046 | ) | 1,431 | (3,615 | ) | |||||||||
| Interest expense - net |
(637 | ) | — | (637 | ) | |||||||||
| Interest income |
— | — | — | |||||||||||
| Gain (Loss) on sale of assets |
12 | — | 12 | |||||||||||
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|||||||||
| Earnings (Loss) from Continuing Operations before Income Taxes |
(5,671 | ) | 1,431 | (4,240 | ) | |||||||||
| Income tax expense (benefit) |
6,852 | — | 6,852 | |||||||||||
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| Earning (Loss) from Continuing Operations |
$ | (12,523 | ) | $ | 1,431 | $ | (11,092 | ) | ||||||
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| Earnings (Loss) per Share from Continuing Operations: |
||||||||||||||
| Basic |
$ | (1.33 | ) | $ | (1.17 | ) | ||||||||
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|||||||||||
| Diluted |
$ | (1.33 | ) | $ | (1.17 | ) | ||||||||
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|||||||||||
| Weighted-average common shares outstanding: |
||||||||||||||
| Basic |
9,443 | 9,443 | ||||||||||||
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|
|||||||||||
| Diluted |
9,443 | 9,443 | ||||||||||||
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|
|||||||||||
The accompanying notes are an integral part of this unaudited pro forma statement of earnings.
4
SUNLINK HEALTH SYSTEMS, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF EARNINGS AND LOSS
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
(Amounts in thousands, except per share amounts)
| Historical | ||||||||||||||
| SunLink Fiscal Year Ended June 30, 2015 As Reported |
Pro Forma Adjustments |
Pro Forma Results |
||||||||||||
| Net revenues |
$ | 91,833 | $ | (18,086 | ) | (a) | $ | 73,747 | ||||||
| Cost of goods sold |
21,042 | — | 21,042 | |||||||||||
| Salaries, wages and benefits |
43,127 | (9,506 | ) | (a) | 33,621 | |||||||||
| Provision for bad debts of pharmacy segment |
363 | — | 363 | |||||||||||
| Supplies |
7,429 | (3,063 | ) | (a) | 4,366 | |||||||||
| Purchased Services |
5,229 | (1,613 | ) | (a) | 3,616 | |||||||||
| Other operating expenses |
9,345 | (2,690 | ) | (a) | 6,655 | |||||||||
| Rents and leases |
1,335 | (279 | ) | (a) | 1,056 | |||||||||
| Insurance settlement |
(1,000 | ) | (1,000 | ) | ||||||||||
| Depreciation and amortization |
2,479 | (642 | ) | (a) | 1,837 | |||||||||
| Electronic Health Records incentives |
(50 | ) | 21 | (a) | (29 | ) | ||||||||
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|
|||||||||
| Operating profit |
2,534 | (314 | ) | 2,220 | ||||||||||
| Interest expense - net |
(861 | ) | — | (861 | ) | |||||||||
| Interest income |
— | — | — | |||||||||||
| Gain (Loss) on sale of assets |
21 | — | 21 | |||||||||||
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|||||||||
| Earnings (Loss) from Continuing Operations before Income Taxes |
1,694 | (314 | ) | 1,380 | ||||||||||
| Income tax expense (benefit) |
1,020 | (129 | ) | (b) | 891 | |||||||||
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|||||||||
| Earning (Loss) from Continuing Operations |
$ | 674 | $ | (185 | ) | $ | 489 | |||||||
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| Earnings (Loss) per Share from Continuing Operations: |
||||||||||||||
| Basic |
$ | 0.07 | $ | 0.05 | ||||||||||
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|||||||||||
| Diluted |
$ | 0.07 | $ | 0.05 | ||||||||||
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|||||||||||
| Weighted-average common shares outstanding: |
||||||||||||||
| Basic |
9,443 | 9,443 | ||||||||||||
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|
|
|
|||||||||||
| Diluted |
9,496 | 9,496 | ||||||||||||
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|
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|
|||||||||||
The accompanying notes are an integral part of this unaudited pro forma statement of earnings.
5
SUNLINK HEALTH SYSTEMS, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF EARNINGS AND LOSS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
(Amounts in thousands, except per share amounts)
| SunLink Fiscal Year Ended June 30, 2014 As Reported |
Pro Forma Adjustments |
Pro Forma Results |
||||||||||||
| Net revenues |
$ | 91,974 | $ | (18,205 | ) | (a) | $ | 73,769 | ||||||
| Cost of goods sold |
22,110 | — | 22,110 | |||||||||||
| Salaries, wages and benefits |
42,831 | (10,061 | ) | (a) | 32,770 | |||||||||
| Provision for bad debts of pharmacy segment |
255 | — | (a) | 255 | ||||||||||
| Supplies |
7,608 | (3,372 | ) | (a) | 4,236 | |||||||||
| Purchased Services |
5,095 | (1,807 | ) | (a) | 3,288 | |||||||||
| Other operating expenses |
11,686 | (2,544 | ) | (a) | 9,142 | |||||||||
| Rents and leases |
1,382 | (505 | ) | (a) | 877 | |||||||||
| Depreciation and amortization |
3,119 | (797 | ) | (a) | 2,322 | |||||||||
| Electronic Health Records incentives |
(3,416 | ) | 1,142 | (a) | (2,274 | ) | ||||||||
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|||||||||
| Operating loss |
1,304 | (261 | ) | 1,043 | ||||||||||
| Interest expense - net |
(944 | ) | — | (944 | ) | |||||||||
| Interest income |
— | — | — | |||||||||||
| Gain (Loss) on sale of assets |
(41 | ) | — | (41 | ) | |||||||||
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|
|||||||||
| Loss from Continuing Operations before Income Taxes |
319 | (261 | ) | 58 | ||||||||||
| Income tax expense (benefit) |
652 | (91 | ) | (b) | 561 | |||||||||
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| Loss from Continuing Operations |
$ | (333 | ) | $ | (170 | ) | $ | (503 | ) | |||||
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|||||||||
| Loss per Share from Continuing Operations: |
||||||||||||||
| Basic |
$ | (0.04 | ) | $ | (0.05 | ) | ||||||||
|
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|
|||||||||||
| Diluted |
$ | (0.04 | ) | $ | (0.05 | ) | ||||||||
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|||||||||||
| Weighted-average common shares outstanding: |
||||||||||||||
| Basic |
9,443 | 9,443 | ||||||||||||
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|
|
|
|||||||||||
| Diluted |
9,456 | 9,456 | ||||||||||||
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|
|
|
|
|||||||||||
The accompanying notes are an integral part of this unaudited pro forma statement of earnings.
6
SUNLINK HEALTH SYSTEMS, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF EARNINGS AND LOSS
FOR THE FISCAL YEAR ENDED JUNE 30, 2013
(Amounts in thousands, except per share amounts)
| SunLink Fiscal Year Ended June 30, 2013 As Reported |
Pro Forma Adjustments |
Pro Forma Results |
||||||||||||||
| Net revenues |
$ | 95,119 | $ | (19,944 | ) | (a | ) | $ | 75,175 | |||||||
| Cost of goods sold |
22,363 | — | 22,363 | |||||||||||||
| Salaries, wages and benefits |
45,327 | (10,711 | ) | (a | ) | 34,616 | ||||||||||
| Provision for bad debts of pharmacy segment |
514 | — | 514 | |||||||||||||
| Supplies |
8,105 | (3,345 | ) | (a | ) | 4,760 | ||||||||||
| Purchased Services |
5,920 | (1,636 | ) | (a | ) | 4,284 | ||||||||||
| Other operating expenses |
12,716 | (2,943 | ) | (a | ) | 9,773 | ||||||||||
| Rents and leases |
1,532 | (425 | ) | (a | ) | 1,107 | ||||||||||
| Impairment of goodwill and intangible assets |
789 | — | 789 | |||||||||||||
| Depreciation and amortization |
3,486 | (1,052 | ) | (a | ) | 2,434 | ||||||||||
| Electronic Health Records incentives |
(3,777 | ) | 1,312 | (a | ) | (2,465 | ) | |||||||||
|
|
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|
|
|
|
|||||||||||
| Operating loss |
(1,856 | ) | (1,144 | ) | (3,000 | ) | ||||||||||
| Interest expense - net |
(1,533 | ) | (1 | ) | (a | ) | (1,534 | ) | ||||||||
| Interest income |
— | — | — | |||||||||||||
| Gain (Loss) on sale of assets |
||||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Loss from Continuing Operations before Income Taxes |
(3,389 | ) | (1,145 | ) | (4,534 | ) | ||||||||||
| Income tax expense (benefit) |
(1,521 | ) | (496 | ) | (b | ) | (2,017 | ) | ||||||||
|
|
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|
|
|
|
|||||||||||
| Loss from Continuing Operations |
$ | (1,868 | ) | $ | (649 | ) | $ | (2,517 | ) | |||||||
|
|
|
|
|
|
|
|||||||||||
| Loss per Share from Continuing Operations: |
||||||||||||||||
| Basic |
$ | (0.20 | ) | $ | (0.27 | ) | ||||||||||
|
|
|
|
|
|||||||||||||
| Diluted |
$ | (0.20 | ) | $ | (0.27 | ) | ||||||||||
|
|
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|
|||||||||||||
| Weighted-average common shares outstanding: |
||||||||||||||||
| Basic |
9,445 | 9,445 | ||||||||||||||
|
|
|
|
|
|||||||||||||
| Diluted |
9,445 | 9,445 | ||||||||||||||
|
|
|
|
|
|||||||||||||
The accompanying notes are an integral part of this unaudited pro forma statement of earnings.
7
SUNLINK HEALTH SYSTEMS, INC.
Notes to Unaudited Pro Forma Condensed Combined Financial Statements
(All amounts in thousands, except per share amounts)
| 1. | BASIS OF PRO FORMA PRESENTATION |
The business strategy of SunLink Health Systems, Inc. (“SunLink” or the “Company”) is to focus its efforts on improving internal operations of its existing its pharmacy business and healthcare facilities and on the sale or disposition of its underperforming assets. The Company considers dispositions of 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, prevailing reimbursement rates for drugs and medical services 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, subject to available funds, potential healthcare facility upgrades and improvements.
On August 19, 2016, the Company’s Southern Health Corporation of Dahlonega, (“Dahlonega”) d/b/a Chestatee Regional Hospital (“Chestatee”) subsidiary sold substantially all of the assets and certain liabilities of Chestatee Regional Hospital (“Chestatee”) in Dahlonega, Georgia through an Asset Purchase Agreement (“the Agreement”) with Durall Capital Holdings, LLC (“Buyer”) for $15,000,000 subject to adjustment for the book value of certain assets purchased and certain liabilities assumed at the sale date. A portion of the net proceeds will be allotted for the payment of debt and the balance will retained for working capital and general corporate purposes.
As of the June 30, 2015 balance sheet, the total assets sold by Chestatee were approximately 15.87% percent of SunLink’s total assets and, accordingly, constituted the disposition of discontinued operations under ASC 205, Presentation of Financial Statements, and ASC 360, Property, Plant, and Equipment.
8
SUNLINK HEALTH SYSTEMS, INC.
Notes to Unaudited Pro Forma Combined Condensed Financial Statements
(All amounts in thousands, except for per share)
| 2. | DESCRIPTION OF PROFORMA ADJUSTMENTS TO MARCH 31, 2016 PROFORMA COMBINED BALANCE SHEET: |
| (a) |
Cash proceeds from sale of Chestatee remaining at beginning of year | $ | 15,000 | |||||||
| Payment of expenses of sale accrued at June 30, 2015 | (300 | ) | ||||||||
| Payment of income taxes payable accrued at June 30, 2015 on gain on sale of Chestatee | (997 | ) | ||||||||
| Increase cash due to elimination of net loss of Chestatee | 627 | |||||||||
|
|
|
|||||||||
| Adjustment to Cash | $ | 14,330 | ||||||||
|
|
|
|||||||||
| (b) |
Assets and liability sold or assumed by the buyer: | |||||||||
| Receivables, net | $ | (1,656 | ) | |||||||
|
|
|
|||||||||
| Inventory | $ | (612 | ) | |||||||
|
|
|
|||||||||
| Prepaid expenses and other | $ | (348 | ) | |||||||
|
|
|
|||||||||
| Property, plant and equipment, net | $ | (7,734 | ) | |||||||
|
|
|
|||||||||
| Accounts payable | $ | (1,967 | ) | |||||||
|
|
|
|||||||||
| Accrued payroll and related taxes | $ | (576 | ) | |||||||
|
|
|
|||||||||
| Other current liabilities | $ | (75 | ) | |||||||
|
|
|
|||||||||
| (c) |
Retained earnings: |
|||||||||
| Pro forma adjustment fiscal year ended June 30, 2015 |
$ | 3,729 | ||||||||
| Elimination of net loss of Chestatee nine months ended March 31, 2016 |
1,431 | |||||||||
| Reduced income tax expense nine months ended March 31, 2016 due to lower valuation required in period due to change in deferred assets assets from sale of Chestatee |
1,438 | |||||||||
|
|
|
|||||||||
| $ | 6,598 | |||||||||
|
|
|
9
SUNLINK HEALTH SYSTEMS, INC.
Notes to Unaudited Pro Forma Combined Condensed Financial Statements
(All amounts in thousands, except for per share)
| 3. | DESCRIPTION OF PROFORMA ADJUSTMENTS TO JUNE 30, 2015 PROFORMA COMBINED BALANCE SHEET: |
| (a) |
Cash proceeds from sale of Chestatee |
$ | 15,000 | |||||||||||
|
|
|
|||||||||||||
| (b) |
Assets and liability sold or assumed by the buyer: |
|||||||||||||
| Receivables, net |
$ | (1,946 | ) | |||||||||||
|
|
|
|||||||||||||
| Inventory |
$ | (611 | ) | |||||||||||
|
|
|
|||||||||||||
| Prepaid expenses and other |
$ | (232 | ) | |||||||||||
|
|
|
|||||||||||||
| Property, plant and equipment, net |
$ | (8,090 | ) | |||||||||||
|
|
|
|||||||||||||
| Accrued payroll and related taxes |
$ | (471 | ) | |||||||||||
|
|
|
|||||||||||||
| (c) |
Accounts payable |
|||||||||||||
| Liability assumed by buyer |
$ | (1,771 | ) | |||||||||||
| Expenses of sale |
300 | |||||||||||||
|
|
|
|||||||||||||
| Change in Accounts Payable |
$ | (1,471 | ) | |||||||||||
|
|
|
|||||||||||||
| (d) |
Other current liabilities: |
|||||||||||||
| Liability assumed by the buyer: |
$ | (101 | ) | |||||||||||
| Income tax on gain sale of Chestatee |
$ | 2,435 | ||||||||||||
| Current deferred tax asset attributable to Chestatee |
(846 | ) | ||||||||||||
| Non current deferred tax asset attributable to Chestatee |
59 | |||||||||||||
| Net operating loss carryforward used to decrease income tax payable |
(651 | ) | ||||||||||||
|
|
|
|||||||||||||
| Income tax payable on gain on sale |
997 | |||||||||||||
|
|
|
|||||||||||||
| Change in Other Current Liabilities |
$ | 896 | ||||||||||||
|
|
|
|||||||||||||
| (d) |
Current deferred income tax asset: |
|||||||||||||
| Current deferred tax asset attributable to Chestatee |
$ | (846 | ) | |||||||||||
|
|
|
|||||||||||||
| (e) |
Noncurrent deferred tax asset: |
|||||||||||||
| Non current deferred tax asset attributable to Chestatee |
$ | 59 | ||||||||||||
| Net operating loss carryforward used to decrease income tax payable |
(651 | ) | ||||||||||||
|
|
|
|||||||||||||
| $ | (592 | ) | ||||||||||||
|
|
|
|||||||||||||
| (f) |
Retained earnings: |
|||||||||||||
| Pro forma gain on sale of Chestatee |
||||||||||||||
| Cash paid |
$ | 15,000 | ||||||||||||
| Assets sold |
(10,879 | ) | ||||||||||||
| Liabilities assumed by buyer |
2,343 | |||||||||||||
| Income tax expense payable on gain on sale |
(2,435 | ) | ||||||||||||
| expenses paid for sale transaction |
(300 | ) | ||||||||||||
|
|
|
|||||||||||||
| Gain on sale after tax |
$ | 3,729 | ||||||||||||
|
|
|
10
SUNLINK HEALTH SYSTEMS, INC.
Notes to Unaudited Pro Forma Combined Condensed Financial Statements
(All amounts in thousands, except for per share)
| 4. | DESCRIPTION OF PROFORMA ADJUSTMENTS TO PROFORMA STATEMENT OF EARNINGS AND LOSS FOR THE NINE MONTHS ENDED MARCH 31, 2016 |
| (a) | Elimination of results of Chestatee |
11
SUNLINK HEALTH SYSTEMS, INC.
Notes to Unaudited Pro Forma Combined Condensed Financial Statements
(All amounts in thousands, except for per share)
| 4. | DESCRIPTION OF PROFORMA ADJUSTMENTS TO PROFORMA STATEMENT OF EARNINGS AND LOSS FOR THE FISCAL YEAR ENDED JUNE 30, 2015. |
| (a) | Elimination of results of Chestatee. |
| (b) | Adjust tax expense for elimination of Chestatee. |
12
SUNLINK HEALTH SYSTEMS, INC.
Notes to Unaudited Pro Forma Combined Condensed Financial Statements
(All amounts in thousands, except for per share)
| 5. | DESCRIPTION OF PROFORMA ADJUSTMENTS TO PROFORMA STATEMENT OF EARNINGS AND LOSS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 |
| (a) | Elimination of results of Chestatee. |
| (b) | Adjust tax expense for elimination of Chestatee. |
13
SUNLINK HEALTH SYSTEMS, INC.
Notes to Unaudited Pro Forma Combined Condensed Financial Statements
(All amounts in thousands, except for per share)
| 5. | DESCRIPTION OF PROFORMA ADJUSTMENTS TO PROFORMA STATEMENT OF EARNINGS AND LOSS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 |
| (a) | Elimination of results of Chestatee. |
| (b) | Adjust tax expense for elimination of Chestatee. |
14