ATC Healthcare Announces Second Quarter 2006 Results of Operations; Sales grow 5% over the first quarter.LAKE SUCCESS, N.Y. -- ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered Healthcare, Inc. (AMEX AMEX See: American Stock Exchange :AHN AHN Athens, GA, USA (Airport Code) AHN Army Health Nurse (US Army) AHN Aetna Hispanic Network AHN Allied Health Network AHN Ad Hoc Network - News), a national leader in medical staffing, today reported results for its second quarter of fiscal year end 2006, which ended August 31, 2005. Three Month Results Revenues for the second quarter ended August 31, 2005 were $17.9 million compared to $17.5 million (net of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ) for the quarter ended August 31, 2004. Service costs were 76.5% of total revenues in the second quarter of fiscal year end 2006 as compared to 78.4% for the second quarter of fiscal year 2005. Income from operations for the quarter ended August 31, 2005 equaled $178 thousand versus a loss of $(758) thousand for the quarter ended August 31, 2004. Net loss for the quarter ended August 31, 2005 was $(494) thousand or $(.02) per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share versus a net loss of $(248) thousand including income from discontinued operations of $227 thousand or a loss of $(.01) per basic and diluted share for the quarter ended August 31, 2004. Six Month Results ATC reported revenues of $34.9 million (net of discontinued operations) for the first six months of fiscal 2006, as compared to revenue of $36.3 million (net of discontinued operations) for the first six months of fiscal 2005. Service costs were 77.0% of total revenues for the first six months of fiscal 2006 as compared to 76.7% for the first six months of fiscal 2005. Loss from operations was $(107) thousand for the six months ended August 31, 2005 as compared to $(658) thousand for the same period last year. The Company recorded a net loss of $(1.8) million including a loss from discontinued operations of $(577) thousand (or $(.07) per basic and diluted share for the first six months of fiscal 2006 versus net loss of $(286) thousand including income from discontinued operations of $472 thousand or $(.01) per basic and diluted share for the first six months of fiscal 2005. "We continue to see growth quarter over quarter and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that this can continue for the rest of the year. During the second quarter we completed the restructure of our balance sheet by converting over $8.1 million in debt to preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . In addition, we are pleased with the growth in our government division and recent announcements about a $4 million award in New Jersey and participating in a contract with the Department of Health and Human Services Noun 1. Department of Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979 Health and Human Services, HHS that could bring $10 million in sales annually. Finally, we've we've Contraction of we have. we've have begun to see the release of escrow funds Noun 1. escrow funds - funds held in escrow cash in hand, finances, funds, monetary resource, pecuniary resource - assets in the form of money from the sale of our AllCare Division", stated David Savitsky, Chief Executive Officer. In conjunction with this release, management will host a teleconference Thursday Thursday: see week. , October October: see month. 20, 2005 at 2 pm Eastern Time. The dial in number for the call Domestic code 1-800-946-0741 Code 4216868. There will be a 48 hour replay. The replay number is 888-203-1112 Code 4216868. About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics, and other health care facilities with 52 locations in 31 states. ATC provides supplemental staffing, outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. 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 Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. , long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , and "traveling" contract assignments. To learn more about the company's services, visit their web site at www.atchealthcare.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results could differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in ATC Healthcare, Inc. Annual Report on Form 10-K/A for the year ended February February: see month. 28, 2005 as filed with the Securities and Exchange Commission on September September: see month. 26, 2005.
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 (unaudited) Ended
August 31, August 31, August 31, August 31,
2005 2004 2005 2004
REVENUES:
Service revenues $17,932 $17,571 $34,942 $36,254
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COSTS AND EXPENSES:
Service costs $13,691 $13,825 26,911 27,819
General and
administrative
expenses 3,936 4,340 7,853 8,761
Depreciation and
amortization 127 164 285 332
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Total operating
expenses 17,754 18,329 35,049 36,912
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INCOME (LOSS) FROM
OPERATIONS 178 (758) (107) (658)
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INTEREST AND OTHER
EXPENSES (INCOME):
Interest expense, net 710 555 1,241 1,101
Other expense (income),
net (63) (689) (87) (701)
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Total interest and
other expenses
(income) 647 (134) 1,154 400
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LOSS FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES (469) (624) (1,261) (1,058)
INCOME TAX PROVISION
(BENEFIT) 25 (149) 50 (300)
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LOSS FROM CONTINUING
OPERATIONS (494) (475) (1,311) (758)
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DISCONTINUED OPERATIONS:
(LOSS) INCOME FROM
DISCONTINUED OPERATIONS
NET OF TAX PROVISION FOR
THE THREE MONTHS OF $0
IN 2005 AND $176 in
2004 AND FOR THE SIX
MONTHS OF $0 AND $352
RESPECTIVELY -- 227 (577) 472
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NET LOSS (494) (248) (1,888) (286)
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Dividends accreted to
Preferred Shareholders 17 17 34 34
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NET LOSS ATTRIBUTABLE
TO COMMON SHAREHOLDERS (511) (265) $(1,922) $ (320)
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(LOSS) INCOME EARNINGS
PER SHARE:
(LOSS) FROM CONTINUING
OPERATIONS:
(LOSS) PER COMMON
SHARE - BASIC $ (.02) $ (.02) $ (.05) $ (.03)
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(LOSS) PER COMMON
SHARE - DILUTED $ (.02) $ (.02) $ (.05) $ (.03)
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(LOSS) INCOME FROM
DISCONTINUED OPERATIONS:
(LOSS) INCOME PER
COMMON SHARE-BASIC $ (.00) $ .01 $ (.02) $ .02
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(LOSS) INCOME PER
COMMON SHARE-DILUTED $ (.00) $ .01 $ (.02) $ .02
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NET LOSS
(LOSS) PER COMMON
SHARE-BASIC $ (.02) $ (.01) $ (.07) $ (.01)
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(LOSS) PER COMMON
SHARE-DILUTED $ (.02) $ (.01) $ (.07) $ (.01)
============================================
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
Basic 29,674 24,925 28,585 24,918
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Diluted 29,674 24,925 28,585 24,918
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