AAC Holdings Commences Development of 150-Bed Treatment Center in New Jersey

Ringwood Brings De Novo Pipeline to 442 Beds and Total Investment of $42.5 Million

BRENTWOOD, Tenn. & RINGWOOD, N.J.--()--AAC Holdings, Inc. (NYSE: AAC) announced that it has commenced development of a 150-bed residential treatment center at the site of a former convent on 96 acres in Ringwood, New Jersey. The facility is expected to be completed in the first half of 2018 with a projected capital investment of approximately $25 million.

Approximately 60 minutes from LaGuardia and Newark Airports and close to the New Jersey Botanical Garden and Ringwood Manor, the facility will be located on the former Mount St. Francis, which was previously home to the Sisters of St. Francis of Philadelphia. The original manor home was constructed in 1861, and AAC purchased the convent and surrounding grounds in February 2015.

Ringwood becomes the fifth project in AAC’s de novo pipeline, which now includes 194 residential beds and 248 sober living/program housing beds for a total capital investment of $42.5 million. Earlier today, AAC opened a new 93-bed Chemical Dependency Recovery Hospital in Aliso Viejo, California; only the eighth such hospital in the state.

Michael Cartwright, Chairman and Chief Executive Officer of AAC Holdings, noted, “We believe our large flagship out-of-network facilities have set the standard for clinical excellence in markets such as Dallas, Las Vegas and Tampa. They have also served as catalysts for expanding our continuum of treatment through residential, outpatient and sober living in their surrounding markets. We have a growing presence in the Mid-Atlantic, and Ringwood will complement an existing business development team in the region as well as a residential treatment facility and outpatient center in New Jersey.”

“Having previously pushed back the initial timetable on this facility as we prioritized capital for other de novo projects and acquisitions, we are pleased that the continued cash flow from operations and completion of Laguna Treatment Hospital allow us to get this much anticipated project into development.”

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

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

Release Summary

AAC Holdings Commences Development of 150-Bed Treatment Center in New Jersey

Contacts

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