Atc Healthcare (AMEX:AHN)
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ATC Healthcare, Inc. (AMEX:AHN),
a leader in medical staffing, today reported results for its second
quarter of fiscal year end 2007, which ended August 31, 2006.
Three Month Results
Revenues increased by $5.1 million, or 29%, from $17.9 million for the
second quarter ended August 31, 2005 to $23.0 million for the second
quarter ended August 31, 2006. Service costs represent all direct costs
of providing services to our clients. Service costs were 78.4% of total
revenues in the second quarter ended in 2006 as compared to 76.3% for
the second quarter ended in 2005. Income from operations increased by
$92 thousand, or 52%, from $178 thousand for the second quarter ended in
2005 to $270 thousand for the second quarter ended in 2006. Net loss
improved by decreasing $248 thousand, or 50%, from $(494) thousand or
$(.02) per basic and diluted share for the second quarter ended in 2005,
to a loss of $(246) thousand or $(.01) per basic and diluted share for
the second quarter ended in 2006.
EBTDAS net income (loss) from continuing operations was income of $1
thousand for the second quarter ended in 2006 compared to a loss of
$(342) thousand for the second quarter ended in 2005. For an explanation
of the non-GAAP measure "EBTDAS from continuing operations" and of the
importance of that term for our business, please see the discussion
under "Earnings Measurement Quality" below. EBTDAS from continuing
operations is compared to the GAAP measure "net income (loss) from
continuing operations" in the reconciliation at the end of this release.
Six Month Results
Revenues increased by $8.0 million, or 23%, from $34.9 million for the
six months ended August 31, 2005 to $42.9 million for the six months
ended August 31, 2006. Service costs were 78.1% of total revenues in the
six months ended in 2006 as compared to 77.0% for the six months ended
in 2005. Income (loss) from operations increased by $591 thousand from a
loss of $(107) thousand for the six months ended in 2005 to income of
$484 thousand for the six months ended in 2006. Net loss improved by
decreasing $1.4 million from a net loss of $(1.9) million (including a
loss from discontinued operations of $(577) thousand) for the six months
ended in 2005, to a net loss of $(494) thousand in the six months ended
in 2006. Basic and diluted loss per share was $(.07) for the six months
ended in 2005 and basic and diluted loss per share was $(.02) for the
six months ended in 2006.
EBTDAS from continuing operations was a loss of $(11) thousand for the
six months ended in 2006 compared to a loss of $(976) thousand for the
six months ended in 2005.
Management Comments
“We are very pleased to see revenue growth of
29% and 23%, respectively, in the three and six months ended in 2006
compared to 2005,” remarked David Savitsky,
Chief Executive Officer. “As projected, our
acquisition of Critical Nursing Solutions in early June has contributed
nicely to these revenue increases. Equally exciting is that our existing
offices have shown significant organic growth as well. In addition, the
company has continued to produce significant improvement in its
operating results,” added Savitsky.
ATC Second Quarter Earnings Call
In conjunction with this release, management will host a conference call
to discuss the earnings release at 1:00 PM EDT, on Tuesday, October 17,
2006. To listen to the call, participants in the US and Canada should
dial: (800) 263-8506, five minutes prior to the start time of the call.
The access code is 3226435. A telephonic replay of the call may be
accessed by dialing (888) 203-1112 and entering access code 3226435. The
replay will be available from 3:30 PM EDT, on October 17, 2006 until
midnight October 19, 2006. This release, along with any additional
financial or statistical information to be presented on the call, will
be archived on the Corporate Press Releases section of our website, www.atchealthcare.com
Forward Looking Statements
Certain statements contained in this release that are not statements of
historical facts are “forward-looking
statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. The words —
“believe”, “expect”,
“anticipate”, “intend”,
“will”, and
similar expressions are examples of words that identify forward-looking
statements. Forward-looking statements include, without limitation,
statements regarding our future financial position, timing of future
revenue, business strategy and cost savings. These forward-looking
statements are based on our current beliefs, as well as assumptions we
have made based upon information currently available to us. These
forward-looking statements may be affected by the risks and
uncertainties in our business and are qualified in their entirety by the
cautionary statements and risk factor disclosure contained in our
filings with the Securities and Exchange Commission, including our
annual report on Form 10-K for the year ended February 28, 2006. We do
not assume, and expressly disclaim, any obligation to update these
forward-looking statements.
Earnings Measurement Quality - GAAP vs. Non-GAAP
The company provides supplemental information regarding its operational
performance using certain non-GAAP financial measures, which excludes
primarily non-cash charges. The company uses “EBTDAS
from continuing operations” to provide an
indication of the company’s baseline
performance before charges that are considered by management to be
outside of the company’s core operating
results. EBTDAS represents earnings from continuing operations less
taxes, depreciation and amortization and stock-based compensation
expense. The company believes this non-GAAP financial measure provides a
good measure of performance for the company because it represents the
amount realized from revenue after all operating expenses. While
non-GAAP financial measures are not an alternative to generally accepted
accounting principles used in the United States (“GAAP”),
the company’s management uses this non-GAAP
financial measure to evaluate the company’s
historical and prospective financial performance in the ordinary course
of business. The company believes that providing to the company’s
investors the non-GAAP financial measure, in addition to the most
comparable GAAP presentation, allows the investors to better evaluate
the company’s progress and its financial
results over time and to compare the company’s
results with the results of the company’s
competitors.
About ATC Healthcare, Inc.
ATC is a national leader in medical staffing personnel to hospitals,
nursing homes, clinics and other healthcare facilities with 59 locations
in 34 states. ATC provides supplemental staffing, outsourcing and human
resource solutions to hospitals, nursing homes, medical and research
facilities and industry. Drawing from a pool of over 15,000 healthcare
professionals spanning more than 50 specialties, the company supplies
both clinical and non-clinical personnel for short-term, long-term, and “traveling”
contract assignments. To learn more about the company’s
services, visit their website at www.atchealthcare.com.
ATC HEALTHCARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
For the Three Months
For the Six Months
Ended
Ended
August 31,
August 31,
August 31,
August 31,
2006
2005
2006
2005
REVENUES:
Service revenues
$
23,063
$
17,932
$
42,918
$
34,942
COSTS AND EXPENSES:
Service Costs
18,083
13,691
33,526
26,911
General and administrative expenses
4,581
3,936
8,658
7,853
Depreciation and amortization
129
127
250
285
Total operating expenses
22,793
17,754
42,434
35,049
INCOME (LOSS) FROM OPERATIONS
270
178
484
(107)
INTEREST AND OTHER EXPENSE (INCOME):
Interest expense, net
495
710
982
1,241
Other expense (income), net
5
(63)
(45)
(87)
Total interest and other expense (income)
500
647
937
1,154
LOSS BEFORE INCOME TAXES
(230)
(469)
(453)
(1,261)
INCOME TAX PROVISION
16
25
28
50
NET LOSS FROM CONTINUING OPERATIONS
(246)
(494)
(481)
(1,311)
DISCONTINUED OPERATIONS
-
-
-
(577)
NET LOSS
(246)
(494)
(481)
(1,888)
Dividends accreted to Preferred Stockholders
254
17
373
34
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
(500)
$
(511)
$
(854)
$
(1,922)
(LOSS) PER SHARE:
(LOSS) FROM CONTINUING OPERATIONS:
(LOSS) PER COMMON SHARE - BASIC
$
(.01)
$
(.02)
$
(.02)
$
(.05)
(LOSS) PER COMMON SHARE - DILUTED
$
(.01)
$
(.02)
$
(.02)
$
(.05)
(LOSS) FROM DISCONTINUED OPERATIONS:
(LOSS) PER COMMON SHARE - BASIC
$
------
$
---------
$
-------
$
(.02)
(LOSS) PER COMMON SHARE - DILUTED
$
------
$
------
$
------
$
(.02)
NET LOSS:
(LOSS) PER COMMON SHARE - BASIC
$
(.01)
$
(.02)
$
(.02)
$
(.07)
(LOSS) PER COMMON SHARE - DILUTED
$
(.01)
$
(.02)
$
(.02)
$
(.07)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic
39,076
29,674
38,662
28,585
Diluted
39,076
29,674
38,662
28,585
RECONCILIATION OF UNAUDITED LOSS FROM CONTINUING OPERATIONS TO
EBTDAS FROM CONTINUING OPERATIONS (In thousands)
For the Three Months
Ended
For the Six Months
Ended
August 31,
August 31,
August 31,
August 31,
2006
2005
2006
2005
NET LOSS FROM CONTINUING OPERATIONS
$
(246)
$
(494)
$
(481)
$
(1,311)
Add back:
Income taxes
16
25
28
50
Depreciation and amortization
129
127
250
285
Stock-based compensation expense
102
--
192
--
EBTDAS FROM CONTINUING OPERATIONS
$
1
$
(342)
$
(11)
$
(976)
ATC Healthcare, Inc. (AMEX:AHN), a leader in medical staffing,
today reported results for its second quarter of fiscal year end 2007,
which ended August 31, 2006.
Three Month Results
Revenues increased by $5.1 million, or 29%, from $17.9 million for
the second quarter ended August 31, 2005 to $23.0 million for the
second quarter ended August 31, 2006. Service costs represent all
direct costs of providing services to our clients. Service costs were
78.4% of total revenues in the second quarter ended in 2006 as
compared to 76.3% for the second quarter ended in 2005. Income from
operations increased by $92 thousand, or 52%, from $178 thousand for
the second quarter ended in 2005 to $270 thousand for the second
quarter ended in 2006. Net loss improved by decreasing $248 thousand,
or 50%, from $(494) thousand or $(.02) per basic and diluted share for
the second quarter ended in 2005, to a loss of $(246) thousand or
$(.01) per basic and diluted share for the second quarter ended in
2006.
EBTDAS net income (loss) from continuing operations was income of
$1 thousand for the second quarter ended in 2006 compared to a loss of
$(342) thousand for the second quarter ended in 2005. For an
explanation of the non-GAAP measure "EBTDAS from continuing
operations" and of the importance of that term for our business,
please see the discussion under "Earnings Measurement Quality" below.
EBTDAS from continuing operations is compared to the GAAP measure "net
income (loss) from continuing operations" in the reconciliation at the
end of this release.
Six Month Results
Revenues increased by $8.0 million, or 23%, from $34.9 million for
the six months ended August 31, 2005 to $42.9 million for the six
months ended August 31, 2006. Service costs were 78.1% of total
revenues in the six months ended in 2006 as compared to 77.0% for the
six months ended in 2005. Income (loss) from operations increased by
$591 thousand from a loss of $(107) thousand for the six months ended
in 2005 to income of $484 thousand for the six months ended in 2006.
Net loss improved by decreasing $1.4 million from a net loss of $(1.9)
million (including a loss from discontinued operations of $(577)
thousand) for the six months ended in 2005, to a net loss of $(494)
thousand in the six months ended in 2006. Basic and diluted loss per
share was $(.07) for the six months ended in 2005 and basic and
diluted loss per share was $(.02) for the six months ended in 2006.
EBTDAS from continuing operations was a loss of $(11) thousand for
the six months ended in 2006 compared to a loss of $(976) thousand for
the six months ended in 2005.
Management Comments
"We are very pleased to see revenue growth of 29% and 23%,
respectively, in the three and six months ended in 2006 compared to
2005," remarked David Savitsky, Chief Executive Officer. "As
projected, our acquisition of Critical Nursing Solutions in early June
has contributed nicely to these revenue increases. Equally exciting is
that our existing offices have shown significant organic growth as
well. In addition, the company has continued to produce significant
improvement in its operating results," added Savitsky.
ATC Second Quarter Earnings Call
In conjunction with this release, management will host a
conference call to discuss the earnings release at 1:00 PM EDT, on
Tuesday, October 17, 2006. To listen to the call, participants in the
US and Canada should dial: (800) 263-8506, five minutes prior to the
start time of the call. The access code is 3226435. A telephonic
replay of the call may be accessed by dialing (888) 203-1112 and
entering access code 3226435. The replay will be available from 3:30
PM EDT, on October 17, 2006 until midnight October 19, 2006. This
release, along with any additional financial or statistical
information to be presented on the call, will be archived on the
Corporate Press Releases section of our website, www.atchealthcare.com
Forward Looking Statements
Certain statements contained in this release that are not
statements of historical facts are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
The words -- "believe", "expect", "anticipate", "intend", "will", and
similar expressions are examples of words that identify
forward-looking statements. Forward-looking statements include,
without limitation, statements regarding our future financial
position, timing of future revenue, business strategy and cost
savings. These forward-looking statements are based on our current
beliefs, as well as assumptions we have made based upon information
currently available to us. These forward-looking statements may be
affected by the risks and uncertainties in our business and are
qualified in their entirety by the cautionary statements and risk
factor disclosure contained in our filings with the Securities and
Exchange Commission, including our annual report on Form 10-K for the
year ended February 28, 2006. We do not assume, and expressly
disclaim, any obligation to update these forward-looking statements.
Earnings Measurement Quality - GAAP vs. Non-GAAP
The company provides supplemental information regarding its
operational performance using certain non-GAAP financial measures,
which excludes primarily non-cash charges. The company uses "EBTDAS
from continuing operations" to provide an indication of the company's
baseline performance before charges that are considered by management
to be outside of the company's core operating results. EBTDAS
represents earnings from continuing operations less taxes,
depreciation and amortization and stock-based compensation expense.
The company believes this non-GAAP financial measure provides a good
measure of performance for the company because it represents the
amount realized from revenue after all operating expenses. While
non-GAAP financial measures are not an alternative to generally
accepted accounting principles used in the United States ("GAAP"), the
company's management uses this non-GAAP financial measure to evaluate
the company's historical and prospective financial performance in the
ordinary course of business. The company believes that providing to
the company's investors the non-GAAP financial measure, in addition to
the most comparable GAAP presentation, allows the investors to better
evaluate the company's progress and its financial results over time
and to compare the company's results with the results of the company's
competitors.
About ATC Healthcare, Inc.
ATC is a national leader in medical staffing personnel to
hospitals, nursing homes, clinics and other healthcare facilities with
59 locations in 34 states. ATC provides supplemental staffing,
outsourcing and human resource solutions to hospitals, nursing homes,
medical and research facilities and industry. Drawing from a pool of
over 15,000 healthcare professionals spanning more than 50
specialties, the company supplies both clinical and non-clinical
personnel for short-term, long-term, and "traveling" contract
assignments. To learn more about the company's services, visit their
website at www.atchealthcare.com.
-0-
*T
ATC HEALTHCARE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
For the Three For the Six
Months Months
Ended Ended
August August August
31, August 31, 31, 31,
2006 2005 2006 2005
------------------------------------
REVENUES:
Service revenues $23,063 $17,932 $42,918 $34,942
----------------------------------------------------------------------
COSTS AND EXPENSES:
Service Costs 18,083 13,691 33,526 26,911
General and administrative
expenses 4,581 3,936 8,658 7,853
Depreciation and amortization 129 127 250 285
----------------------------------------------------------------------
Total operating expenses 22,793 17,754 42,434 35,049
----------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS 270 178 484 (107)
----------------------------------------------------------------------
INTEREST AND OTHER EXPENSE (INCOME):
Interest expense, net 495 710 982 1,241
Other expense (income), net 5 (63) (45) (87)
----------------------------------------------------------------------
Total interest and other expense
(income) 500 647 937 1,154
----------------------------------------------------------------------
LOSS BEFORE INCOME TAXES (230) (469) (453) (1,261)
INCOME TAX PROVISION 16 25 28 50
----------------------------------------------------------------------
NET LOSS FROM CONTINUING
OPERATIONS (246) (494) (481) (1,311)
----------------------------------------------------------------------
DISCONTINUED OPERATIONS - - - (577)
NET LOSS (246) (494) (481) (1,888)
Dividends accreted to Preferred
Stockholders 254 17 373 34
----------------------------------------------------------------------
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $ (500) $ (511) $ (854)$(1,922)
======================================================================
(LOSS) PER SHARE:
(LOSS) FROM CONTINUING OPERATIONS:
(LOSS) PER COMMON SHARE - BASIC$ (.01) $ (.02) $ (.02)$ (.05)
====================================
(LOSS) PER COMMON SHARE -
DILUTED $ (.01) $ (.02) $ (.02)$ (.05)
====================================
(LOSS) FROM DISCONTINUED
OPERATIONS:
(LOSS) PER COMMON SHARE - BASIC$ ------ $------- $-------$ (.02)
====================================
(LOSS) PER COMMON SHARE -
DILUTED $ ------ $ ------ $ ------$ (.02)
====================================
NET LOSS:
(LOSS) PER COMMON SHARE - BASIC$ (.01) $ (.02) $ (.02)$ (.07)
====================================
(LOSS) PER COMMON SHARE -
DILUTED $ (.01) $ (.02) $ (.02)$ (.07)
====================================
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 39,076 29,674 38,662 28,585
======================================================================
Diluted 39,076 29,674 38,662 28,585
======================================================================
RECONCILIATION OF UNAUDITED LOSS FROM CONTINUING OPERATIONS TO EBTDAS
FROM CONTINUING OPERATIONS (In thousands)
For the Three For the Six
Months Months
Ended Ended
August August August
31, August 31, 31, 31,
2006 2005 2006 2005
------------------------------------
NET LOSS FROM CONTINUING
OPERATIONS $ (246) $ (494) $ (481)$(1,311)
Add back:
Income taxes 16 25 28 50
Depreciation and amortization 129 127 250 285
Stock-based compensation expense 102 -- 192 --
------------------------------------
EBTDAS FROM CONTINUING OPERATIONS
$ 1 $ (342) $ (11)$ (976)
====================================
*T