BRENTWOOD, Tenn., Feb. 21, 2018 /PRNewswire/ -- Today AAC
Holdings, Inc. (NYSE: AAC) announced financial results for the
fourth quarter and year ended December 31,
2017.
Fourth Quarter 2017 Operational and Financial
Highlights:
(All comparisons are to the comparable
prior-year period, unless otherwise noted)
- Total revenue increased 19% to $86.1
million
- Average daily residential revenue (ADR) increased 58% to
$1,054 and average revenue per
outpatient visit (ARV) increased 16% to $418
- Total average daily census (ADC) increased to 995 compared with
962
- Outpatient visits increased 37% to 21,651
- Net loss available to AAC Holdings, Inc. common stockholders
was $18.8 million, or ($0.80) per diluted common share, including a
charge of $23.3 million or
($0.70) per diluted common share, for
estimated legal settlement costs and a charge of $3.5 million, or ($0.15) per diluted common share, related to the
estimated impact of the Tax Cuts and Jobs Act on net deferred tax
assets.
- Adjusted EBITDA increased 35% to $15.1
million (see non-GAAP reconciliation herein)
- Adjusted earnings per diluted common share was $0.10 compared with $0.15 per diluted common share (see non-GAAP
reconciliation herein)
- Days sales outstanding (DSO) decreased by 10 days to 101
"Our strong fourth quarter capped off a year of solid
performance, providing excellent momentum as we head into the new
year. In 2017, we expanded our outpatient and sober living
offerings, consolidated facilities in Southern California, Southern Florida and Louisiana to accelerate operational
efficiencies, increased our borrowing capacity with a new
$210 million secured term loan
facility and a $55 million revolving
credit facility, and announced the pending acquisition of AdCare,"
said Michael Cartwright, Chairman
and Chief Executive Officer of AAC Holdings, Inc. "Of course,
delivering excellent clinical client care remains our top focus,
and our effectiveness in executing against this vision is
illustrated in the recent findings of our 12-month clinical
outcomes study and in investments we are making in clinical and
other technology to further improve client experiences, safety and
outcomes."
Fourth Quarter 2017 Financial Results
AAC breaks down its revenues between client related revenue and
non-client related revenue. Client related revenue includes: (1)
residential 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. Prior period results have been conformed to the
current period presentation.
Total revenue increased 19% to $86.1
million compared with $72.4
million in the same period in the prior year.
Residential treatment facility revenue increased 40% to
$71.5 million compared with
$51.2 million in the same period in
the prior year. ADR increased 58% to $1,054 compared with $667 in the same period in the prior year.
Outpatient and sober living facility revenue increased 59% to
$9.0 million compared with
$5.7 million in the same period in
the prior year. ARV increased 16% to $418 compared with $360 in the same period in the prior year.
Client related diagnostic services revenue was down 78% to
$3.1 million compared with
$14.2 million in the same period in
the prior year. The decrease in client related diagnostic services
is a result of previously anticipated lower reimbursements combined
with a shift in the mix of client related diagnostic services from
higher reimbursed tests to lower reimbursed tests.
Non-client related revenue increased 104% to $2.5 million compared with $1.2 million in the same period in the prior
year.
Net loss available to AAC Holdings, Inc. common stockholders was
$18.8 million, or ($0.80) per diluted common share, compared with
net income available to AAC Holdings, Inc. common stockholders of
$0.5 million, or $0.02 per diluted common share, in the prior-year
period. Included in the net loss available to AAC Holdings, Inc.
common stockholders is the accrued litigation liability of
$23.3 million, or ($0.70) per diluted common share, related to the
estimated settlement of the Tennessee class action litigation and the
Nevada derivative litigation
matters. Also included in the net loss available to AAC Holdings,
Inc. common stockholders is a non-cash increase in the Company's
provision for income taxes of $3.5
million, or ($0.15) per
diluted common share, related to the estimated impact of the Tax
Cuts and Jobs Act on the net deferred tax assets. These estimates
may be refined as further information becomes available.
Adjusted EBITDA increased 35% to $15.1
million compared with $11.1
million for the same period in the prior year. Adjusted net
income available to AAC Holdings, Inc. common stockholders
decreased to $2.4 million, or
$0.10 per diluted common share,
compared with $3.4 million, or
$0.15 per diluted common share, for
the same period in the prior year. Adjusted EBITDA, adjusted net
income available to AAC Holdings, Inc. common stockholders and
adjusted diluted earnings per share are non-GAAP financial
measures. Tables reconciling these non-GAAP measures to the most
directly comparable GAAP measures are included at the end of this
release.
Full Year 2017 Financial Results
Total revenue for the year ended December
31, 2017 increased 14% to $317.6
million compared with $279.8
million in the prior year.
Residential treatment facility revenue increased 30% to
$247.0 million compared with
$189.5 million in the prior year. ADR
increased 38% to $873 compared with
$633 in the prior year.
Outpatient and sober living facility revenue increased 74% to
$29.1 million for the year ended
December 31, 2107 compared with
$16.7 million in the prior year. ARV
increased 19% to $403 compared with
$339 in the prior year.
Client related diagnostic services revenue was down 50% to
$32.5 million compared with
$64.4 million in the prior year. As
is the case with fourth quarter results, this decrease is the
result of previously anticipated lower reimbursements combined with
a shift in the mix of client related diagnostic services from
higher reimbursed tests to lower reimbursed tests.
Non-client related revenue decreased 1% to $9.1 million for the year ended December 31, 2017 compared with $9.2 million in the in the prior year.
Net loss available to AAC Holdings, Inc. common stockholders was
$20.6 million, or ($0.88) per diluted common share, for the year
ended December 31, 2017, compared
with net loss available to AAC Holdings, Inc. common stockholders
of $0.6 million, or ($0.03) per diluted common share, in the prior
year. Included in the net loss available to AAC Holdings, Inc.
common stockholders is an accrued litigation liability of
$23.3 million, or ($0.70) per diluted common share, and the
non-cash increase in the Company's provision for income taxes of
$3.5 million, or ($0.15) per diluted common share, outlined
above.
Adjusted EBITDA increased 20% to $57.1
million for the year ended December
31, 2017 compared with $47.7
million for the prior year. Adjusted net income available to
AAC Holdings, Inc. common stockholders decreased to $13.9 million, or $0.60 per diluted common share, compared with
$16.2 million, or $0.71 per diluted common share, for the same
period in the prior year. Adjusted EBITDA, adjusted net income
available to AAC Holdings, Inc. common stockholders and adjusted
diluted earnings per share are non-GAAP financial measures. 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 December 31, 2017, AAC
Holdings' balance sheet reflected cash and cash equivalents of
$13.8 million, net property and
equipment of $152.5 million and total
debt of $201.2 million, net of debt
issuance costs of $7.2 million.
Cash flows provided by operations totaled $5.3 million for the fourth quarter of 2017
compared with cash flows used in operations of $1.2 million in the prior year period. Capital
expenditures in the fourth quarter of 2017 totaled $5.9 million.
Days sales outstanding continue to improve and were 101 days for
the fourth quarter of 2017 compared with 106 days for the third
quarter of 2017 and 111 for the prior-year period. Total cash
collections increased 15% for the year ended December 31, 2017 as compared to the year ended
December 31, 2016.
2018 Outlook
In May 2014, the FASB issued
Accounting Standards Codification (ASC) Topic 606, "Revenue from
Contracts with Customers," a replacement of Revenue Recognition
Topic 605. The Company adopted ASC 606 on January 1, 2018. Under ASC 606, the majority of
the provision for doubtful accounts, which historically was
reported as an operating expense, will now be reported as a direct
reduction to revenue in 2018. This change in presentation will
reduce revenues and operating expenses by the same amount and is
not expected to have an effect on net income or earnings per
share.
AAC introduces its guidance for the full year 2018 in the table
below. Results for 2018 full year guidance have been provided
inclusive of ASC 606, and for comparability only, 2018 full year
guidance has also been provided excluding the impact of ASC 606
(dollars in millions, except share data):
|
|
Full Year 2018
Guidance
|
|
|
As Currently
Reported
|
|
Adjusted for
Adoption of ASC
606 on January 1,
2018
|
Total
Revenues
|
|
$325 -
$335
|
|
$290 -
$300
|
Residential
treatment facility revenue
|
|
$258 -
$260
|
|
$234 -
$236
|
Outpatient and
sober living facility revenue
|
|
$38 -
$42
|
|
$35 -
$39
|
Client related
diagnostic services revenue (includes point of care drug
testing and client related diagnostic laboratory services
revenue)
|
|
$18 -
$21
|
|
$12 -
$15
|
Non-client related
revenue (includes third-party marketing and
laboratory services)
|
|
$11 -
$12
|
|
$9 -
$10
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$62 - $65
|
|
$62 - $65
|
Adjusted Earnings per
Diluted Common Share
|
|
$0.70 -
$0.75
|
|
$0.70 -
$0.75
|
The Company expects an annual effective tax rate of 24% to 26%
and diluted weighted-average common shares outstanding of
approximately 24 million for the year.
This outlook above does not include the impact of any future
acquisitions, including the pending acquisition of AdCare,
transaction-related costs, litigation settlement or expenses
related to legal defenses.
With respect to the "2018 Outlook" above, reconciliation of
adjusted EBITDA and adjusted earnings per diluted common share
guidance to the closest corresponding GAAP measure on a
forward-looking basis is not available without unreasonable
efforts. This inability results from the inherent difficulty in
forecasting generally and quantifying certain projected amounts
that are necessary for such reconciliations. In particular,
sufficient information is not available to calculate certain
adjustments required for such reconciliations, including de novo
start-up and other expense and acquisition-related expenses. We
expect these adjustments may have a potentially significant impact
on future GAAP financial results.
Earnings Conference Call
The Company will host a conference call and live audio webcast
on Thursday, February 22, 2018, at 10:00 a.m. CT to
further discuss these results. The number to call for this
interactive teleconference is 412-542-4144. A replay of the
conference call will be available through March 1, 2018, by
dialing 412-317-0088 and entering the replay access code, 10117072.
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) our inability to effectively
operate our facilities; (ii) our reliance on our 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 diagnostics laboratory
revenue; (iv) an increase in our provision for doubtful accounts
based on the aging of receivables; (v) our failure to successfully
achieve growth through acquisitions and de novo projects; (vi)
uncertainties regarding the timing of the closing of acquisitions,
including the pending acquisition of AdCare; (vii) the possibility
that a governmental entity may prohibit, delay or refuse to grant
approval for the consummation of an acquisition; (viii) our failure
to achieve anticipated financial results from contemplated and
prior acquisitions, including the pending AdCare acquisition; (ix)
a disruption in our ability to perform diagnostics laboratory
services; (x) maintaining compliance with applicable regulatory
authorities, licensure and permits to operate our facilities and
laboratories; (xi) a disruption in our 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 our loan documents;
(xiii) our inability to effectively integrate acquired facilities;
and (xiv) general economic conditions, as well as other risks
discussed in the "Risk Factors" section of the Company's Annual
Report on Form 10-K, 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
|
|
Twelve Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
Revenues
|
|
|
|
|
|
|
|
Client related
revenue
|
$
83,679
|
|
$
71,146
|
|
$
308,538
|
|
$
270,569
|
Non-client related
revenue
|
2,457
|
|
1,206
|
|
9,103
|
|
9,201
|
Total
revenues
|
86,136
|
|
72,352
|
|
317,641
|
|
279,770
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
38,401
|
|
36,432
|
|
146,390
|
|
141,073
|
Client related
services
|
7,409
|
|
6,987
|
|
27,031
|
|
24,446
|
Provision for
doubtful accounts
|
11,149
|
|
6,265
|
|
36,914
|
|
21,485
|
Advertising and
marketing
|
2,200
|
|
4,682
|
|
12,315
|
|
18,275
|
Professional
fees
|
3,316
|
|
3,014
|
|
12,638
|
|
16,468
|
Other operating
expenses
|
11,015
|
|
9,009
|
|
36,309
|
|
29,627
|
Rentals and
leases
|
1,675
|
|
1,831
|
|
7,514
|
|
7,363
|
Litigation
settlement
|
23,607
|
|
202
|
|
23,607
|
|
1,292
|
Depreciation and
amortization
|
5,759
|
|
4,917
|
|
21,504
|
|
17,686
|
Acquisition-related
expenses
|
567
|
|
263
|
|
1,162
|
|
2,691
|
Total operating
expenses
|
105,098
|
|
73,602
|
|
325,384
|
|
280,406
|
Loss from
operations
|
(18,962)
|
|
(1,250)
|
|
(7,743)
|
|
(636)
|
Interest expense,
net
|
5,739
|
|
2,325
|
|
16,811
|
|
8,175
|
Gain on contingent
consideration
|
—
|
|
(1,350)
|
|
—
|
|
(1,350)
|
Loss on
extinguishment of debt
|
—
|
|
—
|
|
5,435
|
|
—
|
Other expense
(income), net
|
39
|
|
(587)
|
|
116
|
|
(500)
|
Loss before income
tax benefit
|
(24,740)
|
|
(1,638)
|
|
(30,105)
|
|
(6,961)
|
Income tax
benefit
|
(4,559)
|
|
(335)
|
|
(5,018)
|
|
(1,220)
|
Net loss
|
(20,181)
|
|
(1,303)
|
|
(25,087)
|
|
(5,741)
|
Less: net loss
attributable to noncontrolling interest
|
1,359
|
|
1,781
|
|
4,508
|
|
5,152
|
Net (loss) income
available to AAC Holdings, Inc.
common stockholders
|
$
(18,822)
|
|
$
478
|
|
$
(20,579)
|
|
$
(589)
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per common share
|
$
(0.80)
|
|
$
0.02
|
|
$
(0.88)
|
|
$
(0.03)
|
Diluted (loss)
earnings per common share
|
$
(0.80)
|
|
$
0.02
|
|
$
(0.88)
|
|
$
(0.03)
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
23,396,502
|
|
23,048,474
|
|
23,277,444
|
|
22,718,117
|
Diluted
|
23,396,502
|
|
23,061,065
|
|
23,277,444
|
|
22,718,117
|
AAC HOLDINGS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Unaudited
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
13,818
|
|
$
3,964
|
Accounts receivable,
net of allowances
|
|
94,096
|
|
87,334
|
Prepaid expenses and
other current assets
|
|
4,022
|
|
5,181
|
Total current
assets
|
|
111,936
|
|
96,479
|
Property and
equipment, net
|
|
152,548
|
|
141,307
|
Goodwill
|
|
134,396
|
|
134,396
|
Intangible assets,
net
|
|
8,829
|
|
10,356
|
Deferred tax assets,
net
|
|
8,010
|
|
598
|
Other
assets
|
|
12,556
|
|
748
|
Total
assets
|
|
$
428,275
|
|
$
383,884
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
4,579
|
|
$
9,155
|
Accrued and other
current liabilities
|
|
27,661
|
|
25,780
|
Accrued
litigation
|
|
23,607
|
|
962
|
Current portion of
long-term debt
|
|
4,722
|
|
9,445
|
Total current
liabilities
|
|
60,569
|
|
45,342
|
Long-term debt, net
of current portion and debt issuance costs
|
|
196,451
|
|
179,661
|
Financing lease
obligation, net of current portion
|
|
24,541
|
|
—
|
Other long-term
liabilities
|
|
10,546
|
|
4,093
|
Total
liabilities
|
|
292,107
|
|
229,096
|
|
|
|
|
|
Stockholders'
equity
|
|
150,994
|
|
165,106
|
Noncontrolling
interest
|
|
(14,826)
|
|
(10,318)
|
Total stockholders'
equity including noncontrolling interest
|
|
136,168
|
|
154,788
|
Total liabilities
and stockholders' equity
|
|
$
428,275
|
|
$
383,884
|
AAC HOLDINGS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Unaudited
|
(Dollars in
thousands)
|
|
|
|
|
|
Twelve Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(25,087)
|
|
$
(5,741)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Provision for
doubtful accounts
|
36,914
|
|
21,485
|
Depreciation and
amortization
|
21,504
|
|
17,686
|
Equity
compensation
|
7,513
|
|
8,823
|
Loss on disposal of
property and equipment
|
55
|
|
163
|
Loss on
extinguishment of debt
|
5,435
|
|
—
|
Gain on contingent
consideration
|
—
|
|
(1,350)
|
Amortization of debt
issuance costs
|
1,564
|
|
633
|
Deferred income
taxes
|
(7,412)
|
|
(1,793)
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(43,676)
|
|
(45,838)
|
Prepaid expenses and
other assets
|
(6,725)
|
|
2,510
|
Accounts
payable
|
(4,576)
|
|
824
|
Accrued
liabilities
|
4,685
|
|
3,135
|
Accrued
litigation
|
22,645
|
|
—
|
Other long-term
liabilities
|
6,453
|
|
(394)
|
Net cash provided by
operating activities
|
19,292
|
|
143
|
Cash flows from
investing activities:
|
|
|
|
Purchase of property
and equipment
|
(33,041)
|
|
(37,304)
|
Acquisition of
subsidiaries
|
—
|
|
(18,825)
|
Change in funds held
on acquisition
|
(1,000)
|
|
(325)
|
Net cash used in
investing activities
|
(34,041)
|
|
(56,454)
|
Cash flows from
financing activities:
|
|
|
|
Payments on 2015
Credit Facility and Deerfield Facility
|
(211,094)
|
|
(5,376)
|
Proceeds from 2015
Credit Facility and Deerfield Facility,
net of deferred financing costs
|
18,000
|
|
48,930
|
Payments on 2017
Credit Facility
|
(17,126)
|
|
—
|
Proceeds from 2017
Credit Facility, net of deferred financing costs
|
211,073
|
|
—
|
Proceeds from
financing lease obligation, net of deferred financing
costs
|
24,621
|
|
—
|
Payments on capital
leases
|
(791)
|
|
(834)
|
Repayment of
long-term debt — related party
|
—
|
|
(1,195)
|
Change in funds held
on acquisition
|
1,000
|
|
—
|
Payment of employee
taxes for net share settlement
|
(1,080)
|
|
—
|
Net cash provided by
financing activities
|
24,603
|
|
41,525
|
Net change in cash
and cash equivalents
|
9,854
|
|
(14,786)
|
Cash and cash
equivalents, beginning of period
|
3,964
|
|
18,750
|
Cash and cash
equivalents, end of period
|
$
13,818
|
|
$
3,964
|
AAC HOLDINGS,
INC.
|
OPERATING
METRICS
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
Operating
Metrics:
|
|
|
|
|
|
|
|
New
admissions1
|
3,018
|
|
3,078
|
|
12,299
|
|
11,849
|
Average daily
residential census2
|
737
|
|
835
|
|
775
|
|
818
|
Average daily sober
living census3
|
258
|
|
127
|
|
197
|
|
103
|
Total average daily
census
|
995
|
|
962
|
|
972
|
|
921
|
Average episode
length (days)4
|
28
|
|
28
|
|
28
|
|
28
|
Average daily
residential revenue5
|
$
1,054
|
|
$
667
|
|
$
873
|
|
$
633
|
Average net daily
residential revenue6
|
$
967
|
|
$
630
|
|
$
800
|
|
$
597
|
Revenue per
admission7
|
$
27,727
|
|
$
23,114
|
|
$
25,086
|
|
$
22,835
|
Outpatient
visits8
|
21,651
|
|
15,817
|
|
72,155
|
|
49,173
|
Average revenue per
outpatient visit9
|
$
418
|
|
$
360
|
|
$
403
|
|
$
339
|
Client related
diagnostic services10
|
4%
|
|
20%
|
|
11%
|
|
24%
|
Residential bed count
at end of period11
|
939
|
|
1,140
|
|
939
|
|
1,140
|
Effective residential
bed count at end of period12
|
939
|
|
1,067
|
|
939
|
|
1,067
|
Average effective
residential bed utilization13
|
78%
|
|
79%
|
|
78%
|
|
82%
|
Days sales
outstanding14
|
101
|
|
111
|
|
108
|
|
114
|
|
|
1
|
Represents total
client admissions at our residential facilities for the periods
presented.
|
2
|
Represents average
daily client census at all of our residential
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
residential facility and, when applicable, an AAC sober
living facility.
|
5
|
Average daily
residential revenue is calculated as total revenues from all of
our residential facilities, less client related diagnostic
services revenue, during the period divided by the product of the
number of days in the period multiplied by average daily
residential census.
|
6
|
Average net daily
residential revenue is calculated as total revenues from all of
our residential facilities, less client related diagnostic
services revenue, and less provision for doubtful accounts during
the period, divided by the product of the number of days in the
period multiplied by average daily residential census.
|
7
|
Revenue per admission
is calculated by dividing total client related revenue by new
admissions.
|
8
|
Represents the total
number of outpatient visits at our standalone outpatient centers
during the periods presented.
|
9
|
Average revenue per
outpatient visit is calculated as total revenues from all of
our standalone outpatient facilities, less client related
diagnostic services revenue, during the period divided by the
number of outpatient visits during the period.
|
10
|
Client related
diagnostic services revenue, as a percentage of client related
revenue, includes point-of-care and client related diagnostic
laboratory services.
|
11
|
Residential bed count
at end of period includes all beds at inpatient
facilities.
|
12
|
Effective bed count
at end of period represents the number of beds for which our
facilities are staffed based on planned census.
|
13
|
Average effective
residential bed utilization represents average daily residential
census divided by the average effective residential bed count
during the applicable period.
|
14
|
Days sales
outstanding is calculated as accounts receivable, net of allowance
for doubtful accounts, at the end of the period divided by revenues
per day. Revenues per day is calculated by dividing revenues for
the period by the number of days in the period.
|
AAC HOLDINGS,
INC.
|
SUPPLEMENTAL
RECONCILIATION OF NON-GAAP DISCLOSURES
|
Unaudited
|
(Dollars in
thousands)
|
Reconciliation of
Adjusted EBITDA to Net (Loss) Income Available to AAC Holdings,
Inc. Common Stockholders
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
Net (loss) income
available to AAC Holdings, Inc. common stockholders
|
$
(18,822)
|
|
$
478
|
|
$
(20,579)
|
|
$
(589)
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
Interest
expense
|
5,739
|
|
2,325
|
|
16,811
|
|
8,175
|
Depreciation and
amortization
|
5,759
|
|
4,917
|
|
21,504
|
|
17,686
|
Income tax
benefit
|
(4,559)
|
|
(335)
|
|
(5,018)
|
|
(1,220)
|
Net loss attributable
to noncontrolling interest
|
(1,359)
|
|
(1,781)
|
|
(4,508)
|
|
(5,152)
|
Stock-based
compensation and related tax reimbursements
|
1,465
|
|
1,984
|
|
7,513
|
|
8,823
|
Litigation settlement
and California matter related expense
|
24,028
|
|
1,093
|
|
25,031
|
|
8,690
|
Acquisition-related
expense
|
647
|
|
406
|
|
1,431
|
|
3,252
|
De novo start-up and
other expense
|
243
|
|
3,395
|
|
5,109
|
|
8,663
|
Employee severance
expense
|
1,662
|
|
—
|
|
3,447
|
|
—
|
Loss on
extinguishment of debt
|
—
|
|
—
|
|
5,435
|
|
—
|
Gain on contingent
consideration
|
—
|
|
(1,350)
|
|
—
|
|
(1,350)
|
Facility closure
operating losses and expense
|
266
|
|
—
|
|
972
|
|
771
|
Adjusted
EBITDA
|
$
15,069
|
|
$
11,132
|
|
$
57,148
|
|
$
47,749
|
|
Adjusted EBITDA,
adjusted net income available 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 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 income (loss) available 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 and
California matter related expense, acquisition-related expense
(which includes professional services for accounting, legal,
valuation services and licensing expenses), de novo start-up and
other expenses, employee severance expense, loss on extinguishment
of debt, gain on contingent consideration and facility closure
operating losses and expense.
|
AAC HOLDINGS,
INC.
|
SUPPLEMENTAL
RECONCILIATION OF NON-GAAP DISCLOSURES
|
Unaudited
|
(Dollars in
thousands, except per share amounts)
|
Reconciliation of
Adjusted Net Income Available to AAC Holdings, Inc. Common
Stockholders to Net (Loss) Income Available to AAC Holdings, Inc.
Common
Stockholders
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
Net (loss) income
available to AAC Holdings, Inc. common stockholders
|
$
(18,822)
|
|
$
478
|
|
$
(20,579)
|
|
$
(589)
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
Litigation settlement
and California matter related expense
|
24,028
|
|
1,093
|
|
25,031
|
|
8,690
|
Acquisition-related
expense
|
647
|
|
406
|
|
1,431
|
|
3,252
|
De novo start-up and
other expense
|
243
|
|
3,395
|
|
5,109
|
|
8,663
|
Employee severance
expense
|
1,662
|
|
—
|
|
3,447
|
|
—
|
Loss on
extinguishment of debt
|
—
|
|
—
|
|
5,435
|
|
—
|
Gain on contingent
consideration
|
—
|
|
(1,350)
|
|
—
|
|
(1,350)
|
Facility closure
operating losses and expense
|
266
|
|
—
|
|
972
|
|
771
|
Income tax effect of
non-GAAP adjustments
|
(5,658)
|
|
(621)
|
|
(6,906)
|
|
(3,234)
|
Adjusted net income
available to AAC Holdings, Inc. common
stockholders
|
$
2,366
|
|
$
3,401
|
|
$
13,940
|
|
$
16,203
|
Weighted-average
common shares outstanding - diluted
|
23,396,502
|
|
23,061,065
|
|
23,277,444
|
|
22,718,117
|
GAAP diluted (loss)
earnings per common share
|
$
(0.80)
|
|
$
0.02
|
|
$
(0.88)
|
|
$
(0.03)
|
Adjusted earnings per
diluted common share
|
$
0.10
|
|
$
0.15
|
|
$
0.60
|
|
$
0.71
|
|
Management defines
adjusted net income available to AAC Holdings, Inc. common
stockholders as net income (loss) available to AAC Holdings, Inc.
common stockholders adjusted for litigation settlement and
California matter related expense, acquisition-related expense
(which includes professional services for accounting, legal,
valuation services and licensing expenses), de novo start-up and
other expenses, employee severance expense, loss on extinguishment
of debt, gain on contingent consideration, 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 available to AAC
Holdings, Inc. common stockholders as opposed to net income
available to AAC Holdings, Inc. common stockholders.
|
View original
content:http://www.prnewswire.com/news-releases/aac-holdings-inc-reports-fourth-quarter-and-full-year-2017-results-300602378.html
SOURCE AAC Holdings, Inc.