U.S. Markets closed

Corporate News Blog - AAC Holdings to Open New Detoxification Unit in New Orleans East Hospital; Set to Add 36 Beds to its Portfolio

LONDON, UK / ACCESSWIRE / October 2, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for AAC Holdings, Inc. (NYSE: AAC), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=AAC. The Company announced on September 29, 2017, that it has received licensure for its new Townsend Recovery Center New Orleans in New Orleans, Louisiana. The 36-bed facility has been leased from the New Orleans East Hospital and is scheduled to open on October 09, 2017. The facility, located on the 5th floor of Townsend Recovery Centre New Orleans has 36 beds, provides detoxification and residential treatment services, and will be operated by the Townsend clinical staff. American Addiction Centers (AAC) Holdings is a leading provider of inpatient and outpatient substance abuse treatment services. For immediate access to our complimentary reports, including today's coverage, register for free now at:

http://protraderdaily.com/register/

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AAC. Go directly to your stock of interest and access today's free coverage at:

http://protraderdaily.com/optin/?symbol=AAC

The Announcement

AAC Holdings views this agreement as a step to fill a critical community need, by offering a long-term recovery. The additional beds would enable the Company to support Townsend Treatment Centers and Townsend Outpatient Center along with other treatment providers in Louisiana. The New Orleans East Hospital is an 80-bed site located on the site of the former Pendleton Memorial Hospital that was destroyed by the hurricane, Katrina, in 2005.

Townsend is a part of the Company's treatment center portfolio and is a leading provider of treatment services in south Louisiana and is known for its treatment model, named The Townsend Way. The personalized approach includes addressing the genetic components of the addiction and utilizing pharmacogenetics to offer physicians with vital information about which medications would be the most beneficial for each patient.

The AdCare Acquisition

Prior to the announcement, on September 13, 2017, AAC Holdings announced that it entered into a definitive agreement to acquire AdCare, Inc., and its affiliated and associated real estate assets for a total consideration of $85 million. Through this acquisition, AAC Holdings intended to accelerate its longstanding plan to diversify into government pay, hence leveraging an existing outpatient and business development presence in New England and would continue to expand on its hospital strategy.

AdCare, founded in 1986, is a leading provider of addiction treatment in New England with over 6,000 hospitals and residential admission with over 115,000 outpatient visits every year. AdCare generated revenues of $51 million for the 12-month period ended June 30, 2017, with adjusted EBITDA of $8.5 million. Its revenues during the period were 59% related to Medical reimbursement, 19% from Medicaid reimbursement, and 22% from in-network contracts. The transaction was anticipated to close in H1 2018 and was expected to be financed through a combination of proceeds from the issuance of an incremental term loan under the Company's senior secured loan facility cash on hand, and seller-financing, and $5 million of restricted shares of the Company's common stock.

Company Growth Prospects

On August 07, 2017, AAC Holdings announced that it had signed a definitive agreement to sell its two standalone outpatient facilities and two sober living facilities in the US for $25 million in cash to MedEquities Realty Trust (NYSE:MRT). The Company, concurrently, with the sale, leased the facilities from MedEquities pursuant to a 15-year triple-net lease at an initial lease rate of 8.75%. The Company intended to deploy the proceeds to pay down borrowings under its revolving credit facility and fund its de novo activities.

Last Close Stock Review

On Friday, September 29, 2017, the stock closed the trading session at $9.93, falling 3.03% from its previous closing price of $10.24. A total volume of 79.32 thousand shares have exchanged hands. AAC Holdings' stock price skyrocketed 7.82% in the last one month, 43.29% in the past three months, and 16.41% in the previous six months. Furthermore, since the start of the year, shares of the Company have soared 37.15%. The stock currently has a market cap of $246.36 million.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily