Financial Information by Segment

6 Months Ended

Dec. 31, 2018

Note 13. – Financial Information by Segment

Under ASC Topic No. 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group is composed of SunLink’s chief executive officer and other members of SunLink’s senior management. Our two reportable operating segments are Healthcare Services and Pharmacy.

We evaluate performance of our operating segments based on revenue and operating profit (loss). At the beginning of the current fiscal year, the Company modified the approach to certain assets, and expense allocations to calculate segment assets, operating profit and depreciation and amortization. All prior year amounts have been changed to consistently apply the changed allocation method used in the current year. Segment information as of December 31, 2018 and 2017 and for the three and six months then ended is as follows:

	Healthcare Services		Pharmacy		Corporate and Other			Total
As of and for the three months ended December 31, 2018,
Net revenues from external customers	$	6,153	$	8,070	$	0		$	14,223
Operating profit (loss)		421		61		(519	)		(37	)
Depreciation and amortization		164		266		1			431
Assets		13,069		8,605		4,052			25,726
Expenditures for property, plant and equipment		65		173		0			238
As of and for the three months ended December 31, 2017
Net revenues from external customers	$	5,722	$	8,068	$	0		$	13,790
Operating profit (loss)		61		229		(370	)		(80	)
Depreciation and amortization		160		278		1			439
Assets		14,348		10,752		3,558			28,658
Expenditures for property, plant and equipment		337		51		0			388
As of and for the six months ended December 31, 2018,
Net revenues from external customers	$	11,689	$	14,586	$	0		$	26,275
Operating profit (loss)		174		4		(973	)		(795	)
Depreciation and amortization		326		522		1			849
Assets		13,069		8,605		4,052			25,726
Expenditures for property, plant and equipment		252		442		0			694
As of and for the six months ended December 31, 2017
Net revenues from external customers	$	11,376	$	15,657	$	0		$	27,033
Operating profit (loss)		4		652		(835	)		(179	)
Depreciation and amortization		318		548		2			868
Assets		14,348		10,752		3,558			28,658
Expenditures for property, plant and equipment		813		259		0			1,072