SSY

Regional Health Properties reported consolidated revenue of $53.16 million for the year, driven by expanded Healthcare Services and the addition of Pharmacy Services, and delivered net income of $3.37 million, or $1.09 per share, reflecting post‑merger gains and preferred dividend impacts. Revenue grew sharply year‑over‑year as the company shifted properties to operated models and integrated the SunLink acquisition. Management attributes improved operating income partly to a $2.706 million gain on an asset sale and a bargain purchase gain recorded post‑merger.

Financial Highlights

• Total revenues: $53.160 million, up $34.825 million (189.9%) year‑over‑year, driven by Healthcare Services expansion and addition of Pharmacy Services.
• Gross profit: $(1.042) million (Total revenues $53.160M less Total expenses $54.202M), reflecting higher operating costs including patient care and cost of goods sold.
• Income from operations: $1.664 million, improving $1.503 million (933.5%) year‑over‑year; includes a $2.706 million gain on asset sale.
• Net income: $3.370 million, improved $6.588 million year‑over‑year (from a $(3.218) M loss to $3.370M) driven by a bargain purchase gain.
• Net income (loss) per share attributable to Regional Health Properties — Basic/Diluted: $1.09, reflecting post‑merger earnings and the impact of preferred dividends.

Business Highlights

• Revenue mix and channel shift: The company transitioned multiple properties from leased to operated, expanding its Healthcare Services footprint and reducing reliance on real estate rental income.
• M&A and strategic integration: Completed the SunLink merger (August 14, 2025), adding Pharmacy Services, contributing material post‑merger cash and synergy opportunities.
• Operational cost focus: Expanded operations increased labor and other operating expenses; management is prioritizing occupancy, script counts, collections, and labor management to drive operational recovery.
• Asset optimization: Sold Coosa Valley for $10.6 million, restructured leases, and moved underperforming assets into the operated model to improve performance.

Original SEC Filing: REGIONAL HEALTH PROPERTIES, INC [ RHEP ] - 10-K - Apr. 02, 2026