Financial Information by Segment

9 Months Ended

Mar. 31, 2019

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 March 31, 2019 and 2018 and for the three and nine months then ended is as follows:

	Healthcare Services			Pharmacy			Corporate and Other			Total
As of and for the three months ended March 31, 2019,
Net revenues from external customers	$	3,966		$	8,395		$	0		$	12,361
Operating profit (loss)		(61	)		65			(492	)		(488	)
Depreciation and amortization		82			284			1			367
Assets		8,758			8,519			9,783			27,060
Expenditures for property, plant and equipment		(23	)		246			0			223
As of and for the three months ended March 31, 2018,
Net revenues from external customers	$	3,810		$	7,523		$	0		$	11,333
Operating profit (loss)	$	124		$	(367	)	$	(477	)		(720	)
Depreciation and amortization		86			297			0			383
Assets		14,394			9,104			4,293			27,791
Expenditures for property, plant and equipment		15			263			0			278
As of and for the nine months ended March 31, 2019,
Net revenues from external customers	$	11,738		$	22,981		$	0		$	34,719
Operating profit (loss)		48			69			(1,465	)		(1,348	)
Depreciation and amortization		248			806			2			1,056
Assets		8,758			8,519			9,783			27,060
Expenditures for property, plant and equipment		179			688			0			867
As of and for the nine months ended March 31, 2018,
Net revenues from external customers	$	11,810		$	23,180		$	0		$	34,990
Operating profit (loss)		530			285			(1,313	)		(498	)
Depreciation and amortization		249			845			2			1,096
Assets		14,394			9,104			4,293			27,791
Expenditures for property, plant and equipment		291			522			0			813