AAC Holdings, Inc. (AAC) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.60 million, or $ 0.03 a share in the quarter, against a net profit of $0.59 million, or $0.03 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.77 million, or $0.12 a share compared with $4.35 million or $0.20 a share, a year ago. Revenue during the quarter grew 11.77 percent to $73.04 million from $65.35 million in the previous year period. Total expenses were 99.23 percent of quarterly revenues, up from 97.85 percent for the same period last year. That has resulted in a contraction of 139 basis points in operating margin to 0.77 percent.
Operating income for the quarter was $0.56 million, compared with $1.41 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.66 million compared with $12.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 105 basis points in the quarter to 17.33 percent from 18.38 percent in the last year period.
"We are on track with our major initiatives for 2017 to deliver exceptional clinical quality, drive revenue, reduce operating costs and complete our planned bed expansion activity for the remainder of 2017," noted Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings, Inc. "We are focused on providing a full continuum of care to our clients that includes detoxification services in hospital environments, residential treatment facilities, outpatient services, sober living options and industry leading diagnostic capabilities. Our added bed capacity will complement the expansion of our business development team and call center as we look to increase admissions in the second half of the year to drive higher utilization and operating margins."
Operating cash flow improves marginally
AAC Holdings, Inc. has generated cash of $4.36 million from operating activities during the quarter, up 1.80 percent or $0.08 million, when compared with the last year period. The company has spent $10.69 million cash to meet investing activities during the quarter as against cash outgo of $7.57 million in the last year period.
Cash flow from financing activities was $8.25 million for the quarter as against cash outgo of $2.22 million in the last year period.
Cash and cash equivalents stood at $5.88 million as on Mar. 31, 2017, down 55.58 percent or $7.36 million from $13.24 million on Mar. 31, 2016.
Working capital increases
AAC Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $55.38 million as at Mar. 31, 2017, up 9.80 percent or $4.95 million from $50.43 million on Mar. 31, 2016. Current ratio was at 2.12 as on Mar. 31, 2017, down from 2.61 on Mar. 31, 2016.
Days sales outstanding went up to 96 days for the quarter compared with 86 days for the same period last year.
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