BRENTWOOD, Tenn., May 9, 2019 /PRNewswire/ -- AAC Holdings, Inc.
(NYSE: AAC) ("the Company" or "AAC") announced financial results
for the first quarter and year ended March
31, 2019.
First Quarter 2019 Operational and Financial
Highlights:
(All comparisons are to the comparable
prior-year period, unless otherwise noted)
- Total inpatient census improved by 26% at March 31, 2019 compared to December 31, 2018
- New admissions increased 24% to 4,641
- Outpatient visits increased 31% to 39,717
- Total revenue was $55.4
million
- Implemented over $30 million in
expected annualized expense reductions that are benefiting 2019
operating margins, leading to over a 20% sequential decrease in
operating costs in the First Quarter compared to the Fourth Quarter
2018
- Closed a $30 million incremental
term loan with existing lenders to provide additional
liquidity
"Despite the challenges we faced last year, we've started this
year with positive momentum and I'm confident that we will see
continued improvement throughout the remainder 2019," said Michael
Cartwright, AAC Chairman & Chief Executive Officer.
"Inpatient census has begun to improve in early 2019 with inpatient
census up by over 25% at March 2019
compared to December 2018. The
initiatives in sales and marketing have begun to show results as we
continue to enhance our community and online outreach resources to
better help those who need our help."
"We also improved liquidity and reduce operating expenses during
the first quarter of 2019," Cartwright said. "We closed the
$30 million incremental term loan that provided additional
liquidity in March 2019 and continue
to be focused on cost reduction initiatives. The expense savings
initiatives implemented in late 2018 and in the first quarter of
2019 that are expected to total over $30 million in annualized
savings are now being realized and had a positive impact on the
first quarter of 2019."
"Finally, I am excited to announce that we will be sharing our
long-term strategic vision for the future on a call on Monday, May 13th," Cartwright
continued. "Today's call will focus on the first quarter of 2019,
but on the call next week on Monday, I will layout my vision for
the Company over the course of the next decade to be best in class
clinical care, on-line content and science and technology – all
while unlocking value for our shareholders."
Cost Savings Initiatives
The Company enacted a series of cost savings initiatives during
the fourth quarter of 2018 and into the first quarter of 2019 which
are expected to result in over $30 million of annualized cost
savings. These initiatives have included reductions in the
Company's corporate expenses, consolidation of its Las Vegas market, consolidation of the its
southern California market, the
sale of the Company's New Orleans
operations, and the consolidation of its lab operations.
Incremental Term Loan and Amendment of Existing Credit
Facility
In March 2019, the Company closed
a $30 million incremental term loan with its existing lenders.
In addition, the Company amended its existing secured credit
facility to, among other items, provide increased flexibility with
respect to certain financial covenants.
Evaluation of Strategic Alternatives in AAC's Real Estate
Portfolio
The Company has commenced a process to generate additional value
from its real estate portfolio consisting of treatment centers
located across the United States.
Management's goal is to leverage the portfolio to create additional
liquidity, lower its cost of capital and enhance shareholder value.
Real estate strategic alternatives could include further sale
leasebacks of individual facilities or larger portions of the
Company's real estate portfolio.
First Quarter 2019 Financial Results
On a sequential basis revenue decreased by 3.6% in the first
quarter of 2019 compared to the fourth quarter of 2018 primarily
due to lower average daily census for the quarter. Our inpatient
census at March 31, 2019 increased by
approximately 26% when compared to December
31, 2018. However, our total average daily census for the
first quarter of 2019 compared to the fourth quarter of 2018
decreased by approximately 4.9% due to a lower starting point of
census in the first quarter of 2019. Operating expenses on a
sequential basis decreased by approximately 22.9% to $69.5 million for the first quarter of 2019
compared to $90.2 for the fourth
quarter of 2018. This was primarily due to the benefit from the
cost savings initiatives enacted during the fourth quarter for 2018
and into the first quarter of 2019 which are expected to result in
over $30 million of annualized cost
savings.
AAC breaks down its revenues between client related revenue and
non-client related revenue. Client related revenue includes: (1)
inpatient treatment facility services and related professional
services; (2) outpatient facility services, related professional
services and sober living services; and (3) client related
diagnostic services, which includes point of care drug testing and
client related diagnostic laboratory services. Non-client related
revenue includes marketing and diagnostic services provided to
third parties as well as addiction services provided to individuals
in the criminal justice system.
Total revenue was $55.4 million
compared with $81.2 million in the
same period in the prior year.
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
Increase/
(Decrease)
|
|
%
Change
|
Inpatient treatment
facility services
|
|
$
|
44,889
|
|
|
$
|
66,874
|
|
|
$
|
(21,985)
|
|
|
(32.9)
|
Outpatient facility
and sober living services
|
|
|
6,454
|
|
|
|
8,946
|
|
|
|
(2,492)
|
|
|
(27.9)
|
Client related
diagnostic services
|
|
|
2,146
|
|
|
|
2,810
|
|
|
|
(664)
|
|
|
(23.6)
|
Total client related
revenue
|
|
|
53,489
|
|
|
|
78,630
|
|
|
|
(25,141)
|
|
|
(32.0)
|
Non-client related
revenue
|
|
|
1,881
|
|
|
|
2,557
|
|
|
|
(676)
|
|
|
(26.4)
|
Total
revenues
|
|
$
|
55,370
|
|
|
$
|
81,187
|
|
|
$
|
(25,817)
|
|
|
(31.8)
|
Inpatient treatment facility revenue decreased 32.9% to
$44.9 million compared with
$66.9 million in the same period in
the prior year.
Outpatient and sober living facility revenue decreased 27.9% to
$6.5 million compared with
$8.9 million in the same period in
the prior year.
Client related diagnostic services revenue decreased 23.6% to
$2.1 million compared with
$2.8 million in the same period in
the prior year.
Non-client related revenue decreased 26.4% to $1.9 million compared with $2.6 million in the same period in the prior
year.
Net loss attributable to AAC Holdings, Inc. common stockholders
was ($22.0) million, or $(0.90) per diluted common share, compared with
net income attributable to AAC Holdings, Inc. common stockholders
of $1.1 million, or $0.04 per diluted common share, in the prior-year
period.
Adjusted EBITDA decreased to $(6.5)
million compared with $17.9
million in the prior year. Adjusted EBITDA, is a non-GAAP
financial measure. Tables reconciling these non-GAAP measures to
the most directly comparable GAAP measures are included at the end
of this release.
Balance Sheet and Cash Flows
As of March 31, 2019, AAC
Holdings' balance sheet reflected cash and cash equivalents of
$17.9 million, net property and
equipment of $163.0 million and total
debt of $342.0 million (current and
long-term portions). In March 2019,
we closed on a $30 million
incremental term loan that provides the company with additional
liquidity.
Cash flows used in operations totaled $9.6 million and maintenance capital expenditures
totaled $0.7 million for the first
quarter of 2019.
Earnings Conference Call
The Company will host a
conference call and live audio webcast on Thursday, May 9,
2019, at 9:00 a.m. CT to further discuss these results.
The number to call for this interactive teleconference is
1-877-224-7960. A replay of the conference call will be available
through May 23, 2019, by dialing 877-344-7529 and entering the
replay access code, 10131526.
The live audio webcast of the Company's quarterly
conference call will also be available online in the Investor
Relations section of the Company's website
at ir.americanaddictioncenters.org.
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.
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 AAC Holdings, Inc.'s (collectively with its
subsidiaries; "AAC Holdings" or the "Company") 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; and (xiii)
general economic conditions, as well as other risks discussed in
the "Risk Factors" section of the Company's Annual Report on Form
10-K for the year ended December 31,
2018 and other filings with the Securities and Exchange
Commission. As a result of these factors, we cannot assure you that
the forward-looking statements in this release will prove to be
accurate. Investors should not place undue reliance upon
forward-looking statements.
AAC HOLDINGS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Unaudited
|
(Dollars in
thousands, except share data)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
2019
|
|
|
March 31,
2018
|
Revenues
|
|
|
|
|
|
|
Client related
revenue
|
$
|
53,489
|
|
|
$
|
78,630
|
Non-client related
revenue
|
|
1,881
|
|
|
|
2,557
|
Total
revenues
|
|
55,370
|
|
|
|
81,187
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
40,553
|
|
|
|
40,084
|
Client related
services
|
|
6,041
|
|
|
|
7,747
|
Advertising and
marketing
|
|
3,295
|
|
|
|
2,599
|
Professional
fees
|
|
4,122
|
|
|
|
3,650
|
Other operating
expenses
|
|
11,363
|
|
|
|
10,588
|
Rentals and
leases
|
|
2,000
|
|
|
|
2,116
|
Litigation
settlement
|
|
(1,238)
|
|
|
|
2,791
|
Depreciation and
amortization
|
|
4,344
|
|
|
|
5,464
|
Gain on
sale
|
|
(1,010)
|
|
|
|
—
|
Acquisition-related
expenses
|
|
—
|
|
|
|
305
|
Total operating
expenses
|
|
69,470
|
|
|
|
75,344
|
(Loss) income from
operations
|
|
(14,100)
|
|
|
|
5,843
|
Interest expense,
net
|
|
10,260
|
|
|
|
6,709
|
Other (benefit)
expense, net
|
|
(211)
|
|
|
|
9
|
Loss before income
tax benefit
|
|
(24,149)
|
|
|
|
(875)
|
Income tax
benefit
|
|
(33)
|
|
|
|
(38)
|
Net loss
|
|
(24,116)
|
|
|
|
(837)
|
Less: net loss
attributable to noncontrolling interest
|
|
2,097
|
|
|
|
1,893
|
Net (loss) income
attributable to AAC Holdings, Inc.
common
stockholders
|
$
|
(22,019)
|
|
|
$
|
1,056
|
|
|
|
|
|
|
|
Basic (loss) earnings
per common share
|
$
|
(0.90)
|
|
|
$
|
0.04
|
Diluted (loss)
earnings per common share
|
$
|
(0.90)
|
|
|
$
|
0.04
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
24,495,163
|
|
|
|
23,744,208
|
Diluted
|
|
24,495,163
|
|
|
|
23,781,604
|
AAC HOLDINGS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Unaudited
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
March
31
|
|
December
31
|
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
17,869
|
|
$
|
5,409
|
Accounts receivable,
net of allowances
|
|
|
45,684
|
|
|
47,860
|
Prepaid expenses and
other current assets
|
|
|
2,518
|
|
|
10,695
|
Total current
assets
|
|
|
66,071
|
|
|
63,964
|
Property and
equipment, net
|
|
|
163,045
|
|
|
166,921
|
Right-of-use assets,
net
|
|
|
30,243
|
|
|
—
|
Goodwill
|
|
|
198,952
|
|
|
198,952
|
Intangible assets,
net
|
|
|
10,834
|
|
|
12,063
|
Other
assets
|
|
|
11,079
|
|
|
10,377
|
Total
assets
|
|
$
|
480,224
|
|
$
|
452,277
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
17,167
|
|
$
|
13,507
|
Accrued and other
current liabilities
|
|
|
28,669
|
|
|
30,544
|
Accrued
litigation
|
|
|
4,827
|
|
|
8,000
|
Current portion of
lease liability
|
|
|
5,645
|
|
|
—
|
Current portion of
long-term debt
|
|
|
332,925
|
|
|
309,394
|
Total current
liabilities
|
|
|
389,233
|
|
|
361,445
|
Deferred tax
liabilities
|
|
|
1,137
|
|
|
1,227
|
Long-term debt, net
of current portion and debt issuance costs
|
|
|
9,039
|
|
|
9,764
|
Lease liability, net
of current portion
|
|
|
29,681
|
|
|
—
|
Financing lease
obligation, net of current portion
|
|
|
24,384
|
|
|
24,421
|
Other long-term
liabilities
|
|
|
8,229
|
|
|
13,147
|
Total
liabilities
|
|
|
461,703
|
|
|
410,004
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
42,758
|
|
|
64,413
|
Noncontrolling
interest
|
|
|
(24,237)
|
|
|
(22,140)
|
Total
stockholders' equity including noncontrolling
interest
|
|
|
18,521
|
|
|
42,273
|
Total liabilities
and stockholders' equity
|
|
$
|
480,224
|
|
$
|
452,277
|
AAC HOLDINGS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Unaudited
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
2019
|
|
|
March 31,
2018
|
Cash flows used in
operating activities:
|
|
|
|
|
|
|
Net loss
|
$
|
(24,116)
|
|
|
$
|
(837)
|
Adjustments to
reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
4,344
|
|
|
|
5,464
|
Equity
compensation
|
|
364
|
|
|
|
798
|
Loss on disposal of
property and equipment
|
|
145
|
|
|
|
34
|
Amortization of debt
issuance costs
|
|
1,243
|
|
|
|
637
|
Deferred income
taxes
|
|
(90)
|
|
|
|
436
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
2,176
|
|
|
|
(3,843)
|
Prepaid expenses and
other assets
|
|
7,808
|
|
|
|
1,485
|
Accounts
payable
|
|
3,660
|
|
|
|
(4,739)
|
Accrued and other
current liabilities
|
|
4,250
|
|
|
|
4,141
|
Accrued
litigation
|
|
(3,173)
|
|
|
|
(22,300)
|
Other long-term
liabilities
|
|
(6,194)
|
|
|
|
(275)
|
Net cash used in
operating activities
|
|
(9,583)
|
|
|
|
(18,999)
|
Cash flows used in
investing activities:
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(913)
|
|
|
|
(7,305)
|
Acquisition of
subsidiaries
|
|
—
|
|
|
|
(65,185)
|
Sale of
subsidiary
|
|
887
|
|
|
|
—
|
Net cash used in
investing activities
|
|
(26)
|
|
|
|
(72,490)
|
Cash flows
provided by financing activities:
|
|
|
|
|
|
|
Payments on 2017
Credit Facility
|
|
(1,924)
|
|
|
|
(1,724)
|
Proceeds from 2019
Priming Facility, net of deferred financing costs
|
|
24,284
|
|
|
|
—
|
Proceeds from 2017
Credit Facility, net of deferred financing costs
|
|
250
|
|
|
|
94,432
|
Payments on finance
leases and other
|
|
(291)
|
|
|
|
(221)
|
Payments on AdCare
Note
|
|
(250)
|
|
|
|
—
|
Payment of employee
taxes for net share settlement
|
|
—
|
|
|
|
(475)
|
Net cash provided by
financing activities
|
|
22,069
|
|
|
|
92,012
|
Net change in cash
and cash equivalents
|
|
12,460
|
|
|
|
523
|
Cash and cash
equivalents, beginning of period
|
|
5,409
|
|
|
|
13,818
|
Cash and cash
equivalents, end of period
|
$
|
17,869
|
|
|
$
|
14,341
|
AAC HOLDINGS,
INC.
|
OPERATING
METRICS
|
Unaudited
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
2019
|
|
|
March 31,
2018
|
Operating
Metrics:
|
|
|
|
|
|
|
New
admissions1
|
|
4,641
|
|
|
|
3,739
|
Average daily
inpatient census2
|
|
740
|
|
|
|
773
|
Average daily sober
living census3
|
|
213
|
|
|
|
254
|
Total average daily
census
|
|
953
|
|
|
|
1,027
|
Average episode
length (days)4
|
|
19
|
|
|
|
25
|
Average daily
inpatient revenue5
|
$
|
674
|
|
|
$
|
961
|
Revenue per
admission6
|
$
|
11,525
|
|
|
$
|
21,030
|
Outpatient
visits7
|
|
39,717
|
|
|
|
30,313
|
Revenue per
outpatient visit8
|
$
|
162
|
|
|
$
|
295
|
Client related
diagnostic services9
|
|
4%
|
|
|
|
4%
|
Inpatient bed count
at end of period10
|
|
996
|
|
|
|
1,112
|
Effective inpatient
bed count at end of period11
|
|
992
|
|
|
|
1,108
|
Average effective
inpatient bed utilization12
|
|
75%
|
|
|
|
78%
|
|
|
|
|
|
|
|
1
Represents total client admissions at our inpatient facilities for
the periods presented.
2 Represents average daily client census at all of
our inpatient facilities.
3 Represents average daily client census at our
sober living facilities.
4 Average episode length is the
consecutive number of days from admission to discharge
that a client stays at an AAC inpatient
facility and, when applicable, an AAC sober
living facility.
5 Average daily inpatient revenue is calculated as
total revenues from all of our inpatient facilities during the
period, divided by the product of the number of days in the period
multiplied by average daily inpatient census.
6 Revenue per admission is calculated by dividing
total client related revenue by new admissions.
7 Represents the total number of outpatient
visits at our standalone outpatient centers during the periods
presented.
8 Revenue per outpatient visit is calculated as
total revenues from all of our standalone outpatient facilities
divided by the number of outpatient visits during the
period.
9 Client related diagnostic services revenue, as a
percentage of client related revenue, includes point-of-care and
client related diagnostic laboratory services.
10 Inpatient bed count at end of period includes
all beds at inpatient facilities.
11 Effective bed count at end of period represents
the number of beds for which our facilities are staffed based on
planned census.
12 Average effective inpatient bed utilization
represents average daily inpatient census divided by the average
effective inpatient bed count during the applicable
period.
|
AAC HOLDINGS,
INC.
|
SUPPLEMENTAL
RECONCILIATION OF NON-GAAP DISCLOSURES
|
Unaudited
|
(Dollars in
thousands)
|
Reconciliation of
Adjusted EBITDA to Net Loss (Income) Attributable to AAC Holdings,
Inc. Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2019
|
|
|
March 31,
2018
|
Net (loss) income
attributable to AAC Holdings, Inc. common
stockholders
|
|
$
|
(22,019)
|
|
|
$
|
1,056
|
Non-GAAP
Adjustments1:
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
10,260
|
|
|
|
6,709
|
Depreciation and
amortization
|
|
|
4,344
|
|
|
|
5,464
|
Income tax
benefit
|
|
|
(33)
|
|
|
|
(38)
|
Net loss attributable
to noncontrolling interest
|
|
|
(2,097)
|
|
|
|
(1,893)
|
Stock-based
compensation
|
|
|
364
|
|
|
|
798
|
Litigation settlement,
regulatory and California
matter related expense
|
|
|
(988)
|
|
|
|
3,202
|
Acquisition-related
expense
|
|
|
28
|
|
|
|
429
|
De novo start-up and
other expense
|
|
|
—
|
|
|
|
428
|
Transaction
costs
|
|
|
1,517
|
|
|
|
—
|
Recruitment and
retention expense
|
|
|
375
|
|
|
|
—
|
Employee severance
expense
|
|
|
1,098
|
|
|
|
911
|
Facility closure
operating losses and expense
|
|
|
647
|
|
|
|
792
|
Adjusted
EBITDA
|
|
$
|
(6,504)
|
|
|
$
|
17,858
|
1 Adjusted EBITDA,
adjusted net (loss) income attributable to AAC Holdings, Inc.
common stockholders and adjusted diluted earnings per common share
(herein collectively referred to as "Non-GAAP Disclosures") are
"non-GAAP financial measures" as defined under the rules and
regulations promulgated by the U.S. Securities and Exchange
Commission, each of which are defined below. Management has chosen
to present these Non‐GAAP Disclosures to investors to enable
additional analyses of past, present and future operating
performance and as a supplemental means of evaluating operations
absent the effect of certain items that we do not consider
indicative of our ongoing core operating performance or are
non-cash items. Certain of these items may recur in the future.
Management believes the Non-GAAP Disclosures provide investors with
additional meaningful financial information that should be
considered when assessing our underlying business performance and
trends. We believe the Non-GAAP Disclosures also enhance investors'
ability to compare period-to-period financial results. The
Non-GAAP Disclosures should not be considered as measures of
financial performance under U.S. generally accepted accounting
principles ("GAAP"). The items excluded from the Non-GAAP
Disclosures are significant components in understanding and
assessing our financial performance and should not be considered as
an alternative to net income or other financial statement items
presented in the condensed consolidated financial statements.
Because the Non-GAAP Disclosures are not measures determined in
accordance with GAAP, the Non-GAAP Disclosures may not be
comparable to other similarly titled measures of other
companies.
Management defines
adjusted EBITDA as net (loss) income attributable to AAC Holdings,
Inc. common stockholders adjusted for interest expense,
depreciation and amortization expense, income tax benefit, net loss
attributable to noncontrolling interest, stock-based compensation
and related tax reimbursements, litigation settlement, certain
regulatory and California matter related expenses,
acquisition-related expense (which includes professional services
for accounting, legal, valuation services and licensing expenses),
de novo start-up and other expenses, recruitment and retention
expense, employee severance expense and facility closure operating
losses and expense.
|
AAC HOLDINGS,
INC.
|
SUPPLEMENTAL
RECONCILIATION OF NON-GAAP DISCLOSURES
|
Unaudited
|
(Dollars in
thousands, except share data)
|
Reconciliation of
Adjusted Net (Loss) Income Attributable to AAC Holdings, Inc.
Common Stockholders to Net (Loss) Income Attributable to AAC
Holdings, Inc. Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
2019
|
|
|
March 31,
2018
|
Net (loss) income
attributable to AAC Holdings, Inc. common
stockholders
|
|
$
|
(22,019)
|
|
|
$
|
1,056
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
Litigation settlement,
regulatory and
California matter
related expense
|
|
|
(988)
|
|
|
|
3,202
|
Acquisition-related
expense
|
|
|
28
|
|
|
|
429
|
De novo start-up and
other expense
|
|
|
—
|
|
|
|
428
|
Transaction
costs
|
|
|
1,517
|
|
|
|
—
|
Recruitment and
retention expense
|
|
|
375
|
|
|
|
—
|
Employee severance
expense
|
|
|
1,098
|
|
|
|
911
|
Facility closure
operating losses and expense
|
|
|
647
|
|
|
|
792
|
Income tax effect of
non-GAAP adjustments
|
|
|
(4)
|
|
|
|
(2,399)
|
Adjusted net (loss)
income attributable to AAC Holdings, Inc.
common stockholders
|
|
$
|
(19,346)
|
|
|
$
|
4,419
|
Weighted-average
common shares outstanding - diluted
|
|
|
24,495,163
|
|
|
|
23,781,604
|
GAAP diluted (loss)
income per common share
|
|
$
|
(0.90)
|
|
|
$
|
0.04
|
Adjusted (loss)
earnings per diluted common share
|
|
$
|
(0.79)
|
|
|
$
|
0.19
|
Management defines
adjusted net (loss) income attributable to AAC Holdings, Inc.
common stockholders as net (loss) income attributable to AAC
Holdings, Inc. common stockholders adjusted for litigation
settlement, certain regulatory and California matter related
expenses, acquisition-related expense (which includes professional
services for accounting, legal, valuation services and licensing
expenses), de novo start-up and other expenses, recruitment and
retention expense, employee severance expense, facility closure
operating losses and expense and the income tax effect of the
non-GAAP adjustments at the then applicable effective tax
rate.
Adjusted diluted
earnings per common share represents diluted earnings per common
share calculated using adjusted net income attributable to AAC
Holdings, Inc. common stockholders as opposed to net income
attributable to AAC Holdings, Inc. common stockholders.
|
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content:http://www.prnewswire.com/news-releases/aac-holdings-inc-reports-first-quarter-2019-results-300846987.html
SOURCE American Addiction Centers