BRENTWOOD, Tenn., Aug. 12, 2019 /PRNewswire/ -- AAC Holdings,
Inc. (NYSE: AAC) (the "Company") announced preliminary estimated
operational and financial results for the second quarter ended
June 30, 2019.
Second Quarter 2019 Highlights:
(All comparisons are to first quarter ended March 31, 2019, unless otherwise
noted)
- Average effective inpatient utilization improved to 81% from
75%
- Total inpatient average daily census improved 8% to 802 from
740
- New admissions increased 4% to 4,830 from 4,641
The Company expects to report sequential improvement in both
revenue and adjusted EBITDA for the quarter ended June 30,
2019. (Adjusted EBITDA is a non-GAAP financial measure and a table
reconciling this non-GAAP measure to the most directly comparable
GAAP measure will be provided with the Company's reports on results
of operations for Q2 2019.)
The Company is also considering numerous initial proposals from
third party investment firms as a result of the strategic
transaction process being led by Cantor Fitzgerald &
Co.
"We expect to show sequential improvement in our results again
this quarter," said Michael
Cartwright, AAC Chairman and CEO. "And as we continue our
upturn in operational results, we are excited by the investment
interest in our company and are engaged in talks with numerous
well-regarded financing sources."
Quarterly Report on Form 10-Q
In connection with this
press release, the Company will file a Form 12b-25 with the United
States Securities and Exchange Commission permitting
additional time to file its Quarterly Report on Form 10-Q for the
period ended June 30, 2019. The Company is engaged in
discussions with lenders under its senior credit facilities to
address issues relating to the Company's liquidity and compliance
with certain covenants and obligations thereunder. The Form 12b-25
filing will be available online in the Investor Relations section
of the Company's website
at ir.americanaddictioncenters.org.
Cautionary Statement Regarding Preliminary Nature of the
Highlights
The foregoing highlights are preliminary
estimates of the operational and financial highlights that the
Company expects to report for the second quarter ended
June 30, 2019. As a result, there is a possibility that our
final results will vary, possibly materially, from these
preliminary estimates.
About American Addiction Centers
American Addiction
Centers is a leading provider of inpatient and outpatient substance
abuse treatment services. We treat clients who are struggling with
drug addiction, alcohol addiction, and co-occurring
mental/behavioral health issues. We currently operate substance
abuse treatment facilities located throughout the United States. These facilities are
focused on delivering effective clinical care and treatment
solutions. For more information, please find us at
AmericanAddictionCenters.org or follow us on Twitter
@AAC_Tweet.
Forward Looking Statements
This release contains
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are made only as
of the date of this release. In some cases, you can identify
forward-looking statements by terms such as "anticipates,"
"believes," "could," "estimates," "expects," "may," "potential,"
"predicts," "projects," "should," "will," "would," and similar
expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these words.
Forward-looking statements may include information concerning the
Company's possible or assumed future results of operations,
including descriptions of the Company's revenue, profitability,
outlook and overall business strategy. These statements involve
known and unknown risks, uncertainties and other factors that may
cause our actual results and performance to be materially different
from the information contained in the forward-looking statements.
These risks, uncertainties and other factors include, without
limitation: (i) the Company's inability to effectively operate
its facilities; (ii) the Company's reliance on its sales and
marketing program to continuously attract and enroll clients;
(iii) a reduction in reimbursement rates by certain
third-party payors for inpatient and outpatient services and
point-of-care and definitive lab testing; (iv) the Company's
failure to successfully achieve growth through acquisitions and de
novo projects; (v) risks associated with estimates of the
value of accounts receivable or deterioration in collectability of
accounts receivable; (vi) a failure to achieve anticipated
financial results from contemplated and prior acquisitions;
(vii) the possibility that a governmental entity may prohibit,
delay or refuse to grant approval for the consummation of an
acquisition; (viii) the Company's failure to achieve
anticipated financial results from contemplated and prior
acquisitions; (ix) a disruption in the Company's ability to
perform diagnostic laboratory services; (x) maintaining
compliance with applicable regulatory authorities, licensure and
permits to operate the Company's facilities and laboratories;
(xi) a disruption in the Company's business and reputational
and economic risks associated with the civil securities claims
brought by shareholders or claims by various parties;
(xii) inability to meet the covenants in the Company's loan
documents or lack of borrowing capacity, including the Company's
inability to enter into forbearance agreements and amendments with
its lenders with respect to certain events of default;
(xiii) any ability to successful raise capital to meet the
Company's liquidity needs; and (xiv) general economic
conditions, as well as other risks discussed in the "Risk Factors"
section of the Company's most recently filed Annual Report on Form
10-K and other filings with the Securities and Exchange Commission.
As a result of these factors, the Company cannot provide assurance
that the forward-looking statements in this release will prove to
be accurate. Investors should not place undue reliance upon
forward-looking statements.
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SOURCE AAC Holdings, Inc.