ATC Healthcare Revenue Increases 25% for the First Quarter of Fiscal 2008 from the Comparable Quarter

  
    
  
  
    
      ATC Healthcare, Inc. (AMEX:AHN), a leader in medical staffing, today 
      reported results for its first quarter of fiscal 2008, which ended May 
      31, 2007.
    
    
      Revenues increased by $4.9 million, or 25%, to $24.8 million for the 
      first quarter of Fiscal 2008, compared to $19.8 million for same period 
      last year. The increase in revenues resulted primarily from strong 
      growth in the Company’s travel nurse unit as 
      well as increased business in ATC’s per diem 
      nursing division. In addition, the June 2006 acquisition of Critical 
      Nursing Solutions continued to provide increased revenues during the 
      first quarter. Service costs were 78.7% of total revenues for the first 
      quarter of fiscal 2008 compared to 77.8% the same period last year. 
      Service costs represent all direct costs of providing services to our 
      clients. The increase was due primarily to higher wages and benefits 
      paid to nurses based on the market conditions during the quarter. The 
      Company is continuing to pursue higher margin business throughout the 
      remainder of Fiscal 2008.
    
    
      Income from operations for the first quarter of Fiscal 2008 increased 
      71% to $354 thousand compared to $207 thousand for the same period last 
      year. Net loss for the first quarter decreased 59% to $140 thousand 
      compared to $235 thousand for the same period last year. The Company 
      continues to work diligently on executing its plan, with the goal of 
      attaining profitability in Fiscal 2008.
    
    
      “We are happy with the continued revenue 
      growth of 25%,” stated David Savitsky, Chief 
      Executive Officer. “During the first quarter 
      we experienced strong growth in both our traveling nurse and per diem 
      nurse units, as demand for nurses continues to increase. During the 
      quarter we opened a new office in San Diego, California in 
      response to an increased demand for medical personnel and believe this 
      new office will help achieve additional growth in the 
      important California marketplace. The entire ATC team is not only 
      focused on continued revenue growth but more importantly on attaining 
      profitability through higher margin business and maintaining good 
      control of costs."
    
    
      ATC First Quarter Earnings Call
    
    
      The conference call will take place at 4:15 p.m. EDT on Tuesday, July 
      17, 2007. Anyone interested in participating should dial 1-888-469-6384 
      if calling within the United States or 1-480-629-9564 if calling 
      internationally approximately 5 to 10 minutes prior to 4:15 p.m. 
      Participants should ask for the ATC Healthcare 2007 First Quarter 
      Financial Results conference call. There will be a playback available 
      until July 24, 2007. To listen to the playback, please call 
      1-800-406-7325 if calling within the United States or 1-303-590-3030 if 
      calling internationally. Please use the pass code 3759512 for replay.
    
    
      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.
    
    
      About ATC Healthcare, Inc.
    
    
      ATC is a national leader in medical staffing personnel to hospitals, 
      nursing homes, clinics and other healthcare facilities with 52 locations 
      in 31 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
        
      
      
        
          CONSOLIDATED STATEMENTS OF OPERATIONS
        
      
      
        
          (In thousands, except per share data)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          For the Three Months Ended
        
      
      
        
        
        
        
        
          May 31, 2007
        
        
        
        
          May 31, 2006
        
      
      
        
        
        
        
        
          (Unaudited)
        
      
      
        
          REVENUES:
        
        
        
        
        
        
        
        
        
      
      
        
          Service revenues
        
        
        
        
          $
        
        
          24,824
        
        
           
        
        
           
        
        
          $
        
        
          19,848
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          COSTS AND EXPENSES:
        
        
        
        
        
        
        
        
        
      
      
        
          Service Costs
        
        
        
        
        
        
          19,547
        
        
        
        
        
        
        
        
          15,443
        
        
        
      
      
        
          General and administrative expenses
        
        
        
        
        
        
          4,813
        
        
        
        
        
        
        
        
          4,077
        
        
        
      
      
        
          Depreciation and amortization
        
        
        
        
           
        
        
          110
        
        
           
        
        
           
        
        
           
        
        
          121
        
        
           
        
      
      
        
          Total operating expenses
        
        
        
        
           
        
        
          24,470
        
        
           
        
        
           
        
        
           
        
        
          19,641
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          INCOME FROM OPERATIONS
        
        
        
        
           
        
        
          354
        
        
           
        
        
           
        
        
           
        
        
          207
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          INTEREST AND OTHER EXPENSE (INCOME):
        
        
        
        
        
        
        
        
        
      
      
        
          Interest expense, net
        
        
        
        
        
        
          556
        
        
        
        
        
        
        
        
          487
        
        
        
      
      
        
          Other (income) expense, net
        
        
        
        
           
        
        
          43
        
        
           
        
        
           
        
        
           
        
        
          (57
        
        
          )
        
      
      
        
          Total interest and other (income) expense
        
        
        
        
           
        
        
          599
        
        
           
        
        
           
        
        
           
        
        
          430
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LOSS BEFORE INCOME TAXES
        
        
        
        
        
        
          (245
        
        
          )
        
        
        
        
        
        
          (223
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          INCOME TAX (BENEFIT) PROVISION
        
        
        
        
           
        
        
          (105
        
        
          )
        
        
           
        
        
           
        
        
          12
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          NET LOSS
        
        
        
        
          $
        
        
          (140
        
        
          )
        
        
           
        
        
          $
        
        
          (235
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Dividends accreted to Preferred Stockholders
        
        
        
        
           
        
        
          133
        
        
           
        
        
           
        
        
           
        
        
          119
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS
        
        
        
        
          $
        
        
          (273
        
        
          )
        
        
           
        
        
          $
        
        
          (354
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Loss Per Share:
        
        
        
        
        
        
        
        
        
      
      
        
          Loss per basic and diluted common share
        
        
        
        
          $
        
        
          (0.01
        
        
          )
        
        
           
        
        
          $
        
        
          (0.01
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Weighted average basic and diluted common shares outstanding
        
        
        
        
           
        
        
          46,391
        
        
           
        
        
           
        
        
           
        
        
          38,248