AAC Holdings Inc. (OTC: AACH), the parent company of American Addiction Centers, continued its attempt to cut costs and mitigate financial troubles in the third quarter of 2019.
In Q3, it cut operating expenses by $23 million, or 28%, compared to the same quarter a year prior. However, the company still reported a loss of $13.1 million for the quarter.
On top of that, its cost cutting efforts weren’t enough to keep the Brentwood, Tennessee-based company from being delisted from the New York Stock Exchange (NYSE) early in Q4, after it fell below the NYSE’s continued listing standard.
CEO Michael Cartright addressed the transition on a Q3 earnings call Tuesday, reassuring investors that the company would remain public.
“We are finalizing our plans to be listed on a new exchange,” Cartright said. “The stock is currently traded on the OTC under the ticker symbol AACH. We will remain a publicly traded company and still follow all of the same SEC reporting requirements that we have historically followed.”
The operator of the American Addiction Centers first went public back in 2014. Meanwhile, American Addiction Centers itself, which operates 11 inpatient facilities, 24 outpatient centers and four sober-living residences nationwide, dates back to 2007.
While the company has struggled as of late, executives are hopeful things are improving.
“Though we still have a lot of work to do, I am pleased with the sequential progress we have been making this year,” Cartright said. “For the third consecutive quarter, we continue to see positive momentum in 2019.”
Cartright credited the ongoing expense saving initiatives implemented in late 2018 for continuing to have a positive impact. Some examples include the consolidation of the company’s Las Vegas, southern California and southern Florida markets, as well as the sale of operations in Louisiana and the consolidation of lab operations and reduction of corporate expenses.
“There are several additional vendor cost saving initiatives that we have been working on that will result in further corporate expense savings beginning in 2020,” Cartright said.
AACH posted $58.9 million in revenue in Q3, down 7% from Q2.
Leaders on the call also adjusted full year guidance for revenue in the range of $230 million to $240 million, with adjusted EBITA in the range of $6 million to $8 million.
In 2018, AACH posted $295.8 in revenue.