AAC Holdings (AAC) Misses Q1 EPS by 77c, Revenues Miss

AAC Holdings (NYSE: AAC) reported Q1 EPS of ($0.79), $0.77 worse than the analyst estimate of ($0.02). Revenue for the quarter came in at $55.4 million versus the consensus estimate of $75.17 million.

• 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."

For earnings history and earnings-related data on AAC Holdings (AAC) click here.

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