SunLink Health Systems, Inc. (NYSE Amex Equities: SSY) today reported an operating profit from continuing operations for the quarter ended December 31, 2010 of $171,000 compared to an operating profit for the quarter ended December 31, 2009 of $77,000. Adjusted EBITDA at SunLink’s Healthcare Facilities Segment (a non-GAAP measure of the liquidity of a company) in the second fiscal quarter increased to $2,863,000 from $2,479,000 in the comparable quarter a year ago. Adjusted EBITDA for SunLink’s Specialty Pharmacy Segment in the quarter ended December 31, 2010 increased to $386,000 from $336,000 in the comparable quarter a year ago.

For the six-month period ended December 31, 2010, the company reported an operating loss of $2,437,000 compared to an operating profit of $2,125,000 in the same fiscal period a year ago. The operating profit for the six months ended December 31, 2009 included a pre-tax gain of $2,342,000 relating to the sale of three home health businesses. Adjusted EBITDA for the six-month period at SunLink’s Healthcare Facilities Segment was $2,821,000 compared to $4,308,000 in the comparable period last year. Adjusted EBITDA for SunLink’s Specialty Pharmacy Segment in the six-month period was $569,000 versus $996,000 a year ago.

Commenting on the results, Robert M. Thornton, Jr., CEO of SunLink, stated, “We have seen encouraging initial results from our initiatives to improve the operating results in our business segments, and we continue to pursue revenue and cost initiatives in both segments. However, there is still a great deal of work left to do. Over the last six months we have invested $673,000 in capital for improvements and upgrades in our facilities. We have also implemented programs in each facility to aggressively market our hospitals, physicians and clinics to our communities. We have spent over $250,000 to upgrade our technology and systems, and added two corporate information technology personnel to make our operations more efficient and create a better experience for our patients and physicians. We believe these initiatives position us to generate positive returns from an economic upturn and maintain appropriate discipline during these difficult times.”

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