Financial Information by Segment

9 Months Ended

Mar. 31, 2020

Note 15. – 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, 2020 and 2019 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, 2020,
Net revenues from external customers	$	4,034		$	8,633	$	0		$	12,667
Operating profit (loss)		104			334		(476	)		(38	)
Depreciation and amortization		91			279		1			371
Assets		7,712			9,821		4,741			22,274
Expenditures for property, plant and equipment		116			219		1			336
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 nine months ended March 31, 2020,
Net revenues from external customers	$	12,580		$	24,544	$	0		$	37,124
Operating profit (loss)		569			1,115		(1,661	)		23
Depreciation and amortization		268			785		3			1,056
Assets		7,712			9,821		4,741			22,274
Expenditures for property, plant and equipment		171			712		1			884
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