AAC Holdings Continues Expansion of Outpatient Strategy with Acquisition of Sober Living Beds in Arlington, Texas for $5.35 M...
April 19 2016 - 06:30AM
Business Wire
AAC Holdings, Inc. (NYSE: AAC), through one of its subsidiaries,
today announced it acquired a 100-room hotel in Arlington, Texas
for $5.35 million in cash and expects to convert it into sober
living beds. The acquisition was funded with proceeds provided by
the Deerfield subordinated credit facility.
Located less than three miles from AAC’s 130-bed Greenhouse
residential facility and its new Greenhouse outpatient center, the
hotel currently operates as the Econo Lodge Inn and Suites Six
Flags. AAC expects the 100-room sober living property to generate
approximately $5 million in incremental revenue and approximately
$2 million in incremental Adjusted EBITDA for the Company’s
Greenhouse outpatient center in 2017.
“With the visits generated by our new Greenhouse outpatient
facility in Arlington, we are running at maximum capacity with our
current sober living arrangements,” said Michael Cartwright,
Chairman and Chief Executive Officer of AAC Holdings. “The
additional 100-room sober living capacity will enable us to
continue serving clients from both Greenhouse facilities as well as
meet the growing demands for intensive outpatient treatment from
the Dallas-Fort Worth community.”
About American Addiction Centers
American Addiction Centers is a leading provider of inpatient
substance abuse treatment services. AAC treats clients who are
struggling with drug addiction, alcohol addiction, and co-occurring
mental/behavioral health issues. AAC currently operates 26
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
@AAC_Tweet.
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, “Holdings” or the “Company”) possible or assumed
future results of operations, including descriptions of 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 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 point of care and definitive
lab testing; (iv) our failure to successfully achieve growth
through acquisitions and de novo expansions; (v) uncertainties
regarding the timing of the closing of acquisitions; (vi) the
possibility that a governmental entity may prohibit, delay or
refuse to grant approval for the consummation of acquisitions;
(vii) our failure to achieve anticipated financial results from
prior or pending acquisitions; (viii) a disruption in our ability
to perform diagnostic drug testing services; (ix) maintaining
compliance with applicable regulatory authorities, licensure and
permits to operate our facilities and lab; (x) a disruption in our
business related to the recent indictment of certain of our
subsidiaries and current and former employees, including a former
senior executive; (xi) our inability to agree on conversion and
other terms for the balance of convertible debt; (xii) our
inability to meet our covenants in our loan documents; (xiii) our
inability to obtain senior lender consent to exceed the current $50
million limit in unsecured subordinated debt; (xiv) our inability
to integrate newly acquired facilities; (xv) a disruption to our
business and reputational and potential economic risks associated
with the civil securities claims brought by shareholders; and (xvi)
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160419005593/en/
SCR PartnersInvestor Contact:Tripp Sullivan,
615-760-1104IR@contactAAC.comorMedia Contact:Cynthia Johnson,
615-587-7728Mediarequest@contactAAC.com
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