A year after the parent of American Addiction Centers reported heavy losses due to a Google algorithm change that slashed its call center traffic and saw its stock fall more than 40 percent in a day, Brentwood-based AAC Holdings is still underperforming.
Shares of AAC (Ticker: AACH) were down nearly 20 percent to 78 cents Tuesday afternoon after its leaders reported a $16.1 million net loss in the three months ended Sept. 30, worse than the $13.2 million it lost during the same period last year. (Second-quarter losses this year were $19.1 million.)
AAC's revenues slid 24 percent from $77.5 million in 2018's Q3 to $58.9 million this year — and that's after the company attempted to double down on digital traffic initiatives led by new chief digital and marketing officer Stephen Ebbett. Traffic for many of the company's marketing directories, such as rehabs.com, declined during the quarter. AAC executives did not take questions after their earnings call Tuesday morning, which lasted all of 10 minutes.
On the call, AAC CEO Michael Cartwright did tout his team's cuts to operating expenses, which in the third quarter came out to nearly $61.1 million. That was down 28 percent year over year, fairly in line with AAC's revenue declines.
Cartwright and his team also lowered their full-year guidance, which hints at an underwhelming fourth quarter to come. Following their second quarter, AAC's leaders said they were projecting full-year revenues in the range of $255 million to $275 million and adjusted EBITDA of $16 million to $21 million. They now have dropped those forecasts to $230 million to $240 million and $6 million to $8 million, respectively.
Tuesday's unusual financial report — which featured no year-over-year comparisons of quarterly results in addition to the short conference call without analyst questions — comes shortly after AAC restocked its board and finalized an exit from the New York Stock Exchange, which delisted the company after five years of trading, to over-the-counter trading.
This story was first reported in our sister publication the Nashville Post.