[February 24, 2015] |
|
AAC Holdings, Inc. Reports Fourth Quarter and Full Year 2014 Results
AAC Holdings, Inc. (NYSE: AAC), the parent holding company of American
Addiction Centers, Inc., announced its results for the fourth quarter
and year ended December 31, 2014. All comparisons included in this
release are for the fourth quarter of 2014 to the fourth quarter of 2013
unless otherwise noted.
Fourth Quarter 2014 Financial Highlights:
-
Revenues increased 32% to $37.2 million
-
Net income available to stockholders per diluted share increased to
$0.15 from a net loss of $(0.14)
-
Net income increased to $3.3 million from a net loss of $(2.0) million
-
Adjusted EBITDA increased to $6.6 million from a loss of $(1.1) million
-
Client admissions increased 35% to 1,276
-
Average daily census increased 35% to 418
-
Average net daily revenue increased 1% to $890
De Novo, Acquisition and Corporate Highlights:
-
Expanded de novo pipeline to 438 beds and total investment of $59.1
million
-
Announced acquisitions totaling $15 million and annualized revenue of
$8.5 million
-
Secured new space for corporate headquarters and growing call center
for late 2015
Revenues in the fourth quarter of 2014 increased to $37.2 million
compared with $28.1 million in the fourth quarter of 2013 and $36.6
million in the third quarter of 2014. Net income available to
stockholders increased to $3.1 million, or $0.15 per diluted share,
compared with a net loss of $(1.9) million, or $(0.14) per diluted
share, in the fourth quarter of 2013 and net income available of $2.2
million, or $0.14 per diluted share, in the third quarter of 2014.
Adjusted EBITDA was $6.6 million compared with $(1.1) million in the
fourth quarter of 2013 and $6.7 million in the third quarter of 2014.
Adjusted EBITDA is a non-GAAP financial measure. A table reconciling net
income to Adjusted EBITDA is included in this release.
Michael Cartwright, Chairman and Chief Executive Officer of AAC
Holdings, noted, "We maintained a strong pace in the fourth quarter with
results in line with our previous expectations, solid facility and
operating metrics, and the sourcing of attractive new growth
opportunities. The continued build out of our outpatient center network
complements the significant expansion of our de novo bed pipeline.
Securing new space for our growing call center and an anticipated new
credit facility will help ensure that we can adequately support this
growth."
Year Ended December 31, 2014
Revenues for 2014 increased 15% to $133.0 million compared with $115.7
million for 2013. Net income available to stockholders was $6.9 million,
or $0.41 per diluted share, compared with $1.8 million, or $0.12 per
diluted share, for 2013. Adjusted EBITDA increased 82% to $21.1 million
compared with $11.6 million for 2013. Included in 2013 results are $2.6
million related to a litigation settlement and $0.8 million of
restructuring expenses primarily related to centralizing the Company's
call centers.
De Novo Activity and Pipeline
During the fourth quarter of 2014, the Company completed construction of
its new $2.6 million outpatient center in Las Vegas. The new outpatient
center, which provides step-down capacity for AAC's Desert Hope
residential facility, received licensure on January 8, 2015 and began
treating clients.
In January 2015, the Company added 31 beds, 24 of which were detox beds,
to its Forterus facility in Temecula, California, increasing capacity at
the facility to 107 beds.
In January 2015, the Company entered into a definitive agreement to
acquire an 84-bed hospital in Aliso Viejo, California for an aggregate
of $13.5 million in cash. Closing of the acquisition is expected to
occur in the second quarter of 2015. AAC will begin renovation of the
facility in the second quarter of 2015 and expects to apply for a
license to operate as a Chemical Dependency Recovery Hospital. The
Company anticipates it will invest an additional approximately $5
million for renovations and construction, which will include the
addition of up to 40 beds (bringing the total up to 124 beds) and has
targeted completion for the first half of 2016.
In February 2015, AAC purchased a former convent and a total of 96 acres
in Ringwood, New Jersey for $6.5 million in cash. Renovation of the
existing structure and grounds is anticipated to begin summer 2015 with
a targeted opening late in the second half of 2016. The renovated
facility will be a 150-bed residential treatment facility and the
Company anticipates an additional investment of approximately $16
million.
The Company's new $2.4 million outpatient center in Arlington, Texas was
completed in January 2015 and, pending licensure, is expected to begin
treating clients in the second quarter of 2015. The Company expects to
complete construction of the 164-bed, $18.1 million residential facility
in Tampa, Florida in the second half of 2015.
Acquisition Activity
During the fourth quarter of 2014, the Company signed a definitive
agreement to acquire Recovery First, an operator of a 56-bed in-network,
inpatient substance abuse treatment facility in the greater Fort
Lauderdale, Florida area, for $13.0 million in cash. The acquisition
subsequently closed in February 2015.
In January 2015, the Company signed a definitive agreement to acquire
Clinical Services of Rhode Island, an operator of three outpatient
treatment facilities in Greenville, Portsmouth and South Kingstown,
Rhode Island, for $650,000 in cash and $1.3 million in restricted shares
of the Company's common stock. The acquisition is expected to close
during the second quarter of 2015.
Balance Sheet and Cash Flows from Operations
As of December 31, 2014, AAC Holdings' balance sheet reflected cash and
cash equivalents of $48.5 million and total debt and mezzanine equity of
$36.5 million. Capital expenditures in the fourth quarter of 2014
totaled $3.6 million. Cash flows provided by operations totaled $2.2
million for the fourth quarter of 2014 compared with $2.1 million in the
prior-year period and $5.8 million in the third quarter of 2014. Days
sales outstanding (DSO) was 71 for the fourth quarter of 2014 compared
with 81 for the fourth quarter of 2013 and 69 for the third quarter of
2014.
The Company has a commitment from Bank of America and SunTrust to lead a
syndicated secured credit facility that is expected to consist of term
debt and a revolver. The Company expects to close the new credit
facility in the first quarter of 2015.
2015 Outlook
The Company is providing the following outlook for 2015 in lieu of
formal financial guidance at this time. This outlook does not include
the impact of any future acquisitions and transaction-related costs.
Revenues - Based on the revenues from the fourth quarter of 2014,
the addition of new beds at our Forterus facility and the previously
disclosed acquisition of Recovery First, the Company expects utilization
of the current 580 beds to remain in the 85% to 90% range for 2015 with
Average Daily Revenue in the mid-to-high $800-range. The Company expects
to receive a full year benefit from our new outpatient center in Las
Vegas and a three-quarter benefit from our new outpatient center in
Arlington, Texas. The Company also expects to receive an economic
benefit from the new Tampa facility in the fourth quarter of 2015.
Adjusted EBITDA and Diluted EPS - The Company expects Adjusted
EBITDA margins to remain in a range comparable to what the Company
experienced in the second half of 2014 with a slight benefit from the
addition of Recovery First and the new Forterus beds. The Company
expects an annual tax rate of 38% to 40%.
Earnings Conference Call
The Company will host a conference call and live audio webcast, both
open for the general public to hear, on Wednesday, February 25, 2015, at
11:00 a.m. ET to discuss fourth quarter and fiscal year 2014 financial
results and business highlights. The number to call for this interactive
teleconference is (412) 317-6016. A replay of the conference call will
be available through March 5, 2015, by dialing (412) 317-0088 and
entering the replay access code, 10059403.
The live audio webcast of the Company's quarterly conference call will
be available online in the Investor Relations section of the Company's
website at www.americanaddictioncenters.com.
The online replay will be available in the Investor Relations section of
the Company's website one hour after the call.
About American Addiction Centers
American Addiction Centers is a leading provider of inpatient substance
abuse treatment services. We treat adults as well as adolescents who are
struggling with drug addiction, alcohol addiction, and co-occurring
mental/behavioral health issues. We operate eight substance abuse
treatment facilities and one mental health facility specializing in
overeating disorders. Located throughout the United States, these
facilities are focused on delivering effective clinical care and
treatment solutions.
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' possible or assumed future results
of operations, including descriptions of AAC Holdings' revenues,
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 operate our facilities; (ii) our ability to integrate
newly acquired facilities; (iii) our reliance on our sales and marketing
program to continuously attract and enroll clients; (iv) a reduction in
reimbursement rates by certain third-party payors; (v) our failure to
successfully achieve growth through acquisitions and de novo expansions;
and (vi) general economic conditions and other similar matters, as well
as other risks discussed in the "Risk Factors" section of the Company's
registration statement on Form S-1, as amended, 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 INCOME STATEMENTS
|
Unaudited
|
(Dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31, 2013
|
|
|
September 30, 2014
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
December 31, 2014
|
Revenues
|
|
|
$
|
28,060
|
|
|
|
$
|
36,599
|
|
|
|
$
|
37,166
|
|
|
|
$
|
115,741
|
|
|
|
$
|
132,968
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
|
|
|
13,881
|
|
|
|
|
15,625
|
|
|
|
|
14,958
|
|
|
|
|
46,856
|
|
|
|
|
54,707
|
|
Advertising and marketing
|
|
|
|
3,725
|
|
|
|
|
3,910
|
|
|
|
|
4,694
|
|
|
|
|
13,493
|
|
|
|
|
15,683
|
|
Professional fees
|
|
|
|
3,000
|
|
|
|
|
1,722
|
|
|
|
|
1,458
|
|
|
|
|
10,277
|
|
|
|
|
8,075
|
|
Client related services
|
|
|
|
2,747
|
|
|
|
|
2,789
|
|
|
|
|
2,794
|
|
|
|
|
7,986
|
|
|
|
|
10,794
|
|
Other operating expenses
|
|
|
|
2,971
|
|
|
|
|
4,064
|
|
|
|
|
3,903
|
|
|
|
|
11,615
|
|
|
|
|
13,518
|
|
Rentals and leases
|
|
|
|
485
|
|
|
|
|
536
|
|
|
|
|
630
|
|
|
|
|
4,634
|
|
|
|
|
2,106
|
|
Provision for doubtful accounts
|
|
|
|
3,117
|
|
|
|
|
2,180
|
|
|
|
|
2,923
|
|
|
|
|
10,950
|
|
|
|
|
11,391
|
|
Litigation settlement
|
|
|
|
88
|
|
|
|
|
118
|
|
|
|
|
129
|
|
|
|
|
2,588
|
|
|
|
|
487
|
|
Restructuring
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
806
|
|
|
|
|
-
|
|
Depreciation and amortization
|
|
|
|
875
|
|
|
|
|
1,209
|
|
|
|
|
1,225
|
|
|
|
|
3,003
|
|
|
|
|
4,662
|
|
Total operating expenses
|
|
|
|
30,889
|
|
|
|
|
32,153
|
|
|
|
|
32,714
|
|
|
|
|
112,208
|
|
|
|
|
121,423
|
|
Income from operations
|
|
|
|
(2,829
|
)
|
|
|
|
4,446
|
|
|
|
|
4,452
|
|
|
|
|
3,533
|
|
|
|
|
11,545
|
|
Interest expense
|
|
|
|
231
|
|
|
|
|
845
|
|
|
|
|
322
|
|
|
|
|
1,390
|
|
|
|
|
1,872
|
|
Acquisition-related expenses
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
845
|
|
|
|
|
-
|
|
|
|
|
845
|
|
Other expense (income), net
|
|
|
|
(59
|
)
|
|
|
|
65
|
|
|
|
|
(173
|
)
|
|
|
|
36
|
|
|
|
|
(93
|
)
|
Income (loss) before income tax expense
|
|
|
|
(3,001
|
)
|
|
|
|
3,536
|
|
|
|
|
3,458
|
|
|
|
|
2,107
|
|
|
|
|
8,921
|
|
Income tax (benefit) expense
|
|
|
|
(1,033
|
)
|
|
|
|
1,511
|
|
|
|
|
185
|
|
|
|
|
615
|
|
|
|
|
2,555
|
|
Net income (loss)
|
|
|
|
(1,968
|
)
|
|
|
|
2,025
|
|
|
|
|
3,273
|
|
|
|
|
1,492
|
|
|
|
|
6,366
|
|
Less: net (income) loss attributable to noncontrolling interest
|
|
|
|
23
|
|
|
|
|
433
|
|
|
|
|
81
|
|
|
|
|
(706
|
)
|
|
|
|
1,182
|
|
Net income (loss) attributable to AAC Holdings, Inc. stockholders
|
|
|
|
(1,945
|
)
|
|
|
|
2,458
|
|
|
|
|
3,354
|
|
|
|
|
786
|
|
|
|
|
7,548
|
|
Deemed contribution-redemption of Series B Preferred Stock
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1,000
|
|
|
|
|
-
|
|
BHR Series A Preferred Unit dividend
|
|
|
|
-
|
|
|
|
|
(245
|
)
|
|
|
|
(245
|
)
|
|
|
|
-
|
|
|
|
|
(693
|
)
|
Net income (loss) available to AAC Holdings, Inc. common
stockholders
|
|
|
$
|
(1,945
|
)
|
|
|
$
|
2,213
|
|
|
|
$
|
3,109
|
|
|
|
$
|
1,786
|
|
|
|
$
|
6,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
0.14
|
|
|
|
$
|
0.15
|
|
|
|
$
|
0.13
|
|
|
|
$
|
0.41
|
|
Diluted earnings per common share
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
0.14
|
|
|
|
$
|
0.15
|
|
|
|
$
|
0.12
|
|
|
|
$
|
0.41
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
13,855,796
|
|
|
|
|
15,598,396
|
|
|
|
|
20,701,288
|
|
|
|
|
13,855,797
|
|
|
|
|
16,557,655
|
|
Diluted
|
|
|
|
14,276,723
|
|
|
|
|
15,614,380
|
|
|
|
|
20,762,593
|
|
|
|
|
14,292,937
|
|
|
|
|
16,619,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAC HOLDINGS, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
Unaudited
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2013
|
|
|
2014
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents (variable interest entity- 2013: $441;
2014: $166)
|
|
|
$
|
2,012
|
|
|
$
|
48,540
|
|
Accounts receivable, net of allowances - (variable interest
entity-2013: $169; 2014: $308)
|
|
|
|
24,567
|
|
|
|
28,718
|
|
Deferred tax assets
|
|
|
|
676
|
|
|
|
1,214
|
|
Prepaid expenses and other current assets (variable interest
entity-2013: $173; 2014: $6)
|
|
|
|
2,274
|
|
|
|
1,450
|
|
Total current assets
|
|
|
|
29,529
|
|
|
|
79,922
|
|
Property and equipment, net (variable interest entity-2013: $29,257;
2014: $0)
|
|
|
|
37,008
|
|
|
|
49,196
|
|
Goodwill
|
|
|
|
10,863
|
|
|
|
12,702
|
|
Intangible assets, net
|
|
|
|
3,496
|
|
|
|
2,935
|
|
Note receivable - related party
|
|
|
|
250
|
|
|
|
-
|
|
Other assets (variable interest entity-2013: $142; 2014: $0)
|
|
|
|
492
|
|
|
|
1,197
|
|
Total assets
|
|
|
$
|
81,638
|
|
|
$
|
145,952
|
|
|
|
|
|
|
|
|
Liabilities, mezzanine equity and stockholders' equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
1,895
|
|
|
$
|
2,001
|
|
Accrued liabilities (variable interest entity- 2013: $172; 2014:
$4,281)
|
|
|
|
10,455
|
|
|
|
10,411
|
|
Current portion of long-term debt (variable interest entity-2013:
$12,932; 2014: $0)
|
|
|
|
15,164
|
|
|
|
2,570
|
|
Current portion of long-term debt - related party
|
|
|
|
795
|
|
|
|
1,787
|
|
Total current liabilities
|
|
|
|
28,309
|
|
|
|
16,769
|
|
Deferred tax liabilities
|
|
|
|
2,329
|
|
|
|
1,479
|
|
Long-term debt, net of current portion (variable interest
entity-2013: $8,616; 2014: $0)
|
|
|
|
23,341
|
|
|
|
24,097
|
|
Long-term debt-related party, net of current portion
|
|
|
|
3,775
|
|
|
|
187
|
|
Other long-term liabilities
|
|
|
|
159
|
|
|
|
431
|
|
Total liabilities
|
|
|
|
57,913
|
|
|
|
42,963
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Mezzanine equity including noncontrolling interest
|
|
|
|
11,842
|
|
|
|
7,848
|
|
|
|
|
|
|
|
|
Stockholders' equity of AAC Holdings, Inc.
|
|
|
|
8,183
|
|
|
|
97,474
|
|
Noncontrolling interest
|
|
|
|
3,700
|
|
|
|
(2,333
|
)
|
Total stockholders' equity including noncontrolling interest
|
|
|
|
11,883
|
|
|
|
95,141
|
|
Total liabilities, mezzanine equity and stockholders' equity
|
|
|
$
|
81,638
|
|
|
$
|
145,952
|
|
|
|
|
|
|
|
|
|
AAC HOLDINGS, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Unaudited
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2013
|
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
1,492
|
|
|
|
$
|
6,366
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Provision for doubtful accounts
|
|
|
|
10,950
|
|
|
|
|
11,391
|
|
Depreciation and amortization
|
|
|
|
3,003
|
|
|
|
|
4,662
|
|
Loss on disposal of property and equipment
|
|
|
|
395
|
|
|
|
|
-
|
|
Equity compensation
|
|
|
|
979
|
|
|
|
|
1,802
|
|
Accretion of BHR Series A Preferred Units
|
|
|
|
-
|
|
|
|
|
66
|
|
Amortization of discount on notes payable
|
|
|
|
32
|
|
|
|
|
32
|
|
Deferred income taxes
|
|
|
|
(1,500
|
)
|
|
|
|
(1,374
|
)
|
Decrease in fair value of contingent related-party note payable
|
|
|
|
(91
|
)
|
|
|
|
-
|
|
Changes in operating assets and liabilities (excluding acquisitions):
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(14,810
|
)
|
|
|
|
(15,155
|
)
|
Prepaid expenses and other assets
|
|
|
|
(1,287
|
)
|
|
|
|
190
|
|
Accounts payable
|
|
|
|
510
|
|
|
|
|
106
|
|
Accrued liabilities
|
|
|
|
3,611
|
|
|
|
|
(320
|
)
|
Other long term liabilities
|
|
|
|
159
|
|
|
|
|
272
|
|
Net cash provided by operating activities
|
|
|
|
3,443
|
|
|
|
|
8,038
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
(12,975
|
)
|
|
|
|
(15,584
|
)
|
Issuance of notes and other receivables - related parties
|
|
|
|
-
|
|
|
|
|
(488
|
)
|
Acquisition of subsidiaries, net of cash acquired
|
|
|
|
-
|
|
|
|
|
(3,483
|
)
|
Cash acquired in consolidation of variable interest entity
|
|
|
|
210
|
|
|
|
|
-
|
|
Escrow funds held on acquisition
|
|
|
|
-
|
|
|
|
|
(500
|
)
|
Collection of notes and other receivables - related parties
|
|
|
|
50
|
|
|
|
|
738
|
|
(Purchase) reimbursement of other assets
|
|
|
|
(429
|
)
|
|
|
|
(204
|
)
|
Net cash used in investing activities
|
|
|
|
(13,144
|
)
|
|
|
|
(19,521
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Proceeds from (payments on) revolving line of credit, net
|
|
|
|
5,851
|
|
|
|
|
(12,550
|
)
|
Proceeds from long-term debt
|
|
|
|
9,150
|
|
|
|
|
4,053
|
|
Payments on long-term debt and capital leases
|
|
|
|
(2,433
|
)
|
|
|
|
(5,742
|
)
|
Repayment of long-term debt - related party
|
|
|
|
(1,554
|
)
|
|
|
|
(2,601
|
)
|
Repurchase of common stock
|
|
|
|
(5,063
|
)
|
|
|
|
(5,710
|
)
|
Proceeds from sale of common stock - initial public offering
|
|
|
|
-
|
|
|
|
|
69,518
|
|
Proceeds from sale of common stock - private placement
|
|
|
|
7,429
|
|
|
|
|
6,089
|
|
Proceeds from sale of BHR Series A Preferred Units
|
|
|
|
-
|
|
|
|
|
8,203
|
|
Redemption of BHR Series A Preferred Units
|
|
|
|
-
|
|
|
|
|
(1,825
|
)
|
Dividends paid
|
|
|
|
-
|
|
|
|
|
(509
|
)
|
Contributions from noncontrolling interest
|
|
|
|
1,979
|
|
|
|
|
-
|
|
Distributions to noncontrolling interest
|
|
|
|
(1,396
|
)
|
|
|
|
(915
|
)
|
Redemption of noncontrolling interest
|
|
|
|
(2,990
|
)
|
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
|
10,973
|
|
|
|
|
58,011
|
|
Net increase in cash and cash equivalents
|
|
|
|
1,272
|
|
|
|
|
46,528
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
740
|
|
|
|
|
2,012
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
2,012
|
|
|
|
$
|
48,540
|
|
|
|
|
|
|
|
|
|
AAC Holdings, Inc.
|
Operating Metrics
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31, 2013
|
|
September 30, 2014
|
|
December 31, 2014
|
Operating Metrics:
|
|
|
|
|
|
|
Average daily census1
|
|
|
309
|
|
|
413
|
|
|
418
|
Average daily revenue2
|
|
$
|
987
|
|
$
|
963
|
|
$
|
966
|
Average net daily revenue3
|
|
$
|
877
|
|
$
|
906
|
|
$
|
890
|
New admissions4
|
|
|
944
|
|
|
1,275
|
|
|
1,276
|
Bed count at end of period5
|
|
|
431
|
|
|
493
|
|
|
493
|
Days sales outstanding (DSO)6
|
|
|
81
|
|
|
69
|
|
|
71
|
|
|
|
|
|
|
|
1 Includes client census at all of our owned and leased
inpatient facilities, including FitRx.
2 Average daily revenue is calculated as total revenues
during the period divided by the product of the number of days in
the period multiplied by average daily census.
3 Average net daily revenue is calculated as total
revenues less provision for doubtful accounts during the period
divided by the product of the number of days in the period
multiplied by average daily census.
4 Includes total client admissions for the period
presented.
5 Bed count at end of period includes all beds at owned
and leased inpatient facilities, including FitRx. In the first
quarter of 2014, we added two beds at the FitRx facility to
accommodate increased client census and eliminated six beds at The
Academy facility as a result of an expired housing lease. In
addition, the Greenhouse expansion, completed in July 2014, added
60 beds, all of which are licensed for detoxification and we added
six adolescent beds at The Academy at the end of September 2014.
6 Revenues per day is calculated by dividing the
revenues for the quarter by the number of days in the quarter.
Days sales outstanding is then calculated as accounts receivable,
net of allowance for doubtful accounts, at the end of the quarter
divided by revenues per day.
|
|
|
AAC Holdings, Inc.
|
Supplemental Reconciliation of Non-GAAP Disclosures
|
Unaudited
|
(Dollars in Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31, 2013
|
|
|
September 30, 2014
|
|
|
December 31, 2014
|
|
|
December 31, 2013
|
|
|
December 31, 2014
|
Net Income
|
|
|
$
|
(1,968
|
)
|
|
|
$
|
2,025
|
|
|
$
|
3,273
|
|
|
$
|
1,492
|
|
|
$
|
6,366
|
Non-GAAP Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
231
|
|
|
|
|
845
|
|
|
|
322
|
|
|
|
1,390
|
|
|
|
1,872
|
Depreciation and amortization
|
|
|
|
875
|
|
|
|
|
1,209
|
|
|
|
1,225
|
|
|
|
3,003
|
|
|
|
4,662
|
Income tax (benefit) expense
|
|
|
|
(1,033
|
)
|
|
|
|
1,511
|
|
|
|
185
|
|
|
|
615
|
|
|
|
2,555
|
Stock-based compensation and related tax reimbursements
|
|
|
|
726
|
|
|
|
|
911
|
|
|
|
342
|
|
|
|
1,649
|
|
|
|
3,030
|
Litigation settlement
|
|
|
|
88
|
|
|
|
|
118
|
|
|
|
129
|
|
|
|
2,588
|
|
|
|
487
|
Restructuring
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
806
|
|
|
|
-
|
Reorganization
|
|
|
|
-
|
|
|
|
|
82
|
|
|
|
238
|
|
|
|
15
|
|
|
|
1,176
|
Acquisition-related expense
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
845
|
|
|
|
-
|
|
|
|
845
|
De novo start-up expense
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
99
|
Adjusted EBITDA1
|
|
|
$
|
(1,081
|
)
|
|
|
$
|
6,701
|
|
|
$
|
6,559
|
|
|
$
|
11,558
|
|
|
$
|
21,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Adjusted EBITDA is a "non-GAAP financial measure" as
defined under the rules and regulations promulgated by the U.S.
Securities and Exchange Commission. Management defines Adjusted
EBITDA as net income adjusted for interest expense, depreciation
and amortization expense, income tax expense, stock-based
compensation and related tax reimbursements, litigation
settlement, restructuring charges, reorganization expense (which
includes certain reorganization transactions in April 2014 and
expenses associated with the amendment and restatement of our
then-existing credit facility in April 2014), acquisition-related
expense, and de novo startup expense. Where applicable, these
include professional services for accounting, legal, valuation
services and licensing expenses. Adjusted EBITDA is considered a
supplemental measure of the Company's performance and is not
required by, or presented in accordance with, generally accepted
accounting principles, or GAAP. Adjusted EBITDA is not a measure
of the Company's financial performance under GAAP and should not
be considered as an alternative to net income or any other
performance measures derived in accordance with GAAP. Management
has included information concerning Adjusted EBITDA because they
believe that such information is used by certain investors as a
measure of a company's historical performance. Management believes
this measure is frequently used by securities analysts, investors
and other interested parties in the evaluation of issuers of
equity securities, many of which present EBITDA and Adjusted
EBITDA when reporting their results. Because Adjusted EBITDA is
not determined in accordance with GAAP, it is subject to varying
calculations and may not be comparable to the Adjusted EBITDA (or
similarly titled measures) of other companies. Management's
presentation of Adjusted EBITDA should not be construed as an
inference that our future results will be unaffected by unusual or
nonrecurring items.
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