AAC Holdings Expands in California with Opening of Laguna Treatment Hospital

State’s Newest Chemical Dependency Recovery Hospital to Help Fill Growing Need for Detoxification Beds

BRENTWOOD, Tenn. & LAGUNA BEACH, Calif.--()--AAC Holdings, Inc. (NYSE: AAC) announced that the State of California’s Department of Public Health has issued a license for Laguna Treatment Hospital, LLC, an indirect subsidiary of AAC, to operate a new 93-bed Chemical Dependency Recovery Hospital in Aliso Viejo, the first such hospital designation for an AAC treatment center.

Acquired by AAC in early 2015 for an aggregate of $13.5 million, the hospital previously operated as a memory care center. The Company has invested approximately $5 million in renovations. Consistent with past practice for its new de novo projects, AAC has staffed the hospital to ramp up admissions over the next 12 to 18 months and will begin taking patients immediately.

“We are pleased to once again work with the State of California to license one of our facilities and to be able to open this hospital on the timeline we projected over a year ago,” said Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings. “Laguna Treatment Hospital fills a unique and rapidly expanding need for detoxification beds in the United States and particularly in California. With very few licensed Chemical Dependency Recovery Hospitals in the state, we expect this hospital to not only serve our existing 180 beds in San Diego and Temecula but to also provide high acuity detox services for the estimated 900 treatment clinics and centers in Southern California.”

About American Addiction Centers

American Addiction Centers is a leading provider of inpatient substance abuse treatment services. We treat clients who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We operate substance abuse treatment facilities located throughout the United States. These facilities are focused on delivering effective clinical care and treatment solutions. For more information, please find us at AmericanAddictionCenters.org or follow us on Twitter @AAC_Tweet.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are made only as of the date of this release. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “may,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements may include information concerning AAC Holdings, Inc.’s (collectively with its subsidiaries, “Holdings” or the “Company”) possible or assumed future results of operations, including descriptions of Holdings’ revenues, profitability, outlook and overall business strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from the information contained in the forward-looking statements. These risks, uncertainties and other factors include, without limitation: (i) our inability to operate our facilities; (ii) our reliance on our sales and marketing program to continuously attract and enroll clients; (iii) a reduction in reimbursement rates by certain third-party payors for inpatient and outpatient services and point of care and definitive lab testing; (iv) our failure to successfully achieve growth through acquisitions and de novo expansions; (v) uncertainties regarding the timing of the closing of acquisitions; (vi) the possibility that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of acquisitions; (vii) our failure to achieve anticipated financial results from prior or pending acquisitions; (viii) a disruption in our ability to perform diagnostic drug testing services; (ix) maintaining compliance with applicable regulatory authorities, licensure and permits to operate our facilities and lab; (x) a disruption in our business related to the recent indictment of certain of our subsidiaries and current and former employees, including a former senior executive; (xi) our inability to agree on conversion and other terms for the balance of convertible debt; (xii) our inability to meet our covenants in our loan documents; (xiii) our inability to obtain senior lender consent to exceed the current $50 million limit in unsecured subordinated debt; (xiv) our inability to integrate newly acquired facilities; (xv) a disruption to our business and reputational and potential economic risks associated with the civil securities claims brought by shareholders; and (xvi) general economic conditions, as well as other risks discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission. As a result of these factors, we cannot assure you that the forward-looking statements in this release will prove to be accurate. Investors should not place undue reliance upon forward looking statements.

Contacts

Investor Contact:
SCR Partners
Tripp Sullivan, 615-760-1104
IR@contactAAC.com
or
Media Contact:
Cynthia Johnson, 615-587-7728
Mediarequest@contactAAC.com

Release Summary

AAC Holdings Expands in California with Opening of Laguna Treatment Hospital

Contacts

Investor Contact:
SCR Partners
Tripp Sullivan, 615-760-1104
IR@contactAAC.com
or
Media Contact:
Cynthia Johnson, 615-587-7728
Mediarequest@contactAAC.com