ATC Healthcare Announces Third Quarter 2004 Results of Operations, Office Closing and Restructuring Charge.Business Editors LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Jan. 13, 2004 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 third quarter of fiscal year end 2004, which ended November November: see month. 30, 2003. Revenues for the third quarter ended November 30, 2003 were $32.4 million compared to $38.3 million for the quarter ended November 30, 2002. Revenue continues to be impacted by reduced demand for temporary nurses as hospitals continue to experience flat to declining admission rates. Service costs were 79.2% of total revenues in the third quarter of fiscal year end 2004 as compared to 76.5% in the third quarter of the prior year. Margins have decreased due to the decreased demand for temporary nurses, which has increased the competitive environment pressuring fees. Loss from operations for the quarter ended November 30, 2003 was $1.9 million after office closing and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $2.6 million versus income from operation of $917 thousand for the quarter ended November 30, 2002. Excluding the office closing and restructuring charge income from operations was $678 thousand. Net loss for the quarter ended November 30, 2003 was $5.0 million or $(.20) 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 $1.3 million or $(.05) per diluted share for the quarter ended November 30, 2002. Six Month Results ATC reported revenues of $100.1 million for the nine months ended November 30, 2003, a decrease of 13.0% from revenues of $115.0 million for the same time period last year. Revenue continues to be impacted by reduced demand for temporary nurses as hospitals continue to experience flat to declining admission rates. Service costs were 78.7% of total revenues for the nine months of fiscal 2004 as compared to 76.3% for the nine months of fiscal 2003. Margins have decreased due to the decreased demand for temporary nurses, which has increased the competitive environment pressuring fees. Loss from operations was $1.0 million for the nine months ended November 30, 2003 after the recording of the Office closing and Restructuring charge as compared to income from operations of $3.7 million for the same period last year. The Company recorded a net loss of $5.9 million or $(.25) per basic and diluted share for the first nine months of fiscal 2004 versus a net loss of $379 thousand or $(.02) per basic and diluted share for the first nine months of fiscal 2003. David Savitsky, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , remarked that "our results for the third quarter are indicative of the difficult decisions we have had to make as ATC continues to make progress in reducing its costs and taking other steps, so that the Company can return to profitability next fiscal year. Our income from operations before the office closing and restructuring charge has grown over the prior quarter and we've we've Contraction of we have. we've have recently been awarded a Federal Supply Schedule (FSS FSS Federal Supply Service (US General Services Administration) FSS Flight Service Station FSS Family Self-Sufficiency FSS Fixed Satellite Service FSS Forensic Science Service (Great Britain) ) contract." Mr Savitsky continued "Additionally, as part of a program to grow our Licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. business, we've just opened a new location in (Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. , MD) and are in active discussions with other prospective Licensees at this time." In conjunction with this release, management will host a teleconference Thursday, January 15th at 11:30 am Eastern Time. The dial in number 1-800-930-1344. There will be a 48 hour replay. The replay number is 888-203-1112 from within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and 719-457-0820 Internationally. Code 6055105 About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other health care facilities with 50 locations in 23 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended February 28, 2003 as filed with the Securities and Exchange Commission on June 13, 2003.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
For the Three Months For the Nine Months
Ended (unaudited) Ended
November 30, November 30, November 30, November 30,
2003 2002 2003 2002
------- ------ ------ ------
REVENUES:
Service revenues $32,383 $38,282 $100,066 $114,961
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COSTS AND EXPENSES:
Service costs 25,649 29,291 78,847 87,826
General and
administrative
expenses 5,476 7,517 17,890 22,035
Depreciation and
amortization 580 557 1,761 1,434
Office closing and
restructuring
charge 2,589 2,589
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Total operating
expenses 34,294 37,365 101,087 111,295
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(LOSS) INCOME
FROM OPERATIONS (1,911) 917 (1,021) 3,666
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INTEREST AND OTHER EXPENSES
(INCOME):
Interest expense,
net 1,095 735 3,058 2,244
Other (income), net 6 (89) (229)
Expense related to
TLCS liability 2,293 2,293
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Total interest and
other expenses 1,095 3,034 2,969 4,308
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LOSS BEFORE
INCOME TAXES (3,006) (2,117) (3,990) (642)
INCOME TAX (BENEFIT)
PROVISION 2,041 (868) 1,929 (263)
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NET LOSS $(5,047) $(1,249) $(5,920) $(379)
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DIVIDENDS ACCRETED
TO PREFERRED
SHAREHOLDERS 17 50
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LOSS ATTRIBUTABLE
TO COMMON
SHAREHOLDERS $(5,064) $(1,249) $(5,970) $(379)
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LOSS PER COMMON SHARE -
BASIC: $(.20) $(.05) $(.25) $(.02)
======================================================================
LOSS PER COMMON SHARE -
DILUTED $(.20) $(.05) $(.25) $(.02)
======================================================================
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
Basic 24,882 23,792 24,325 23,748
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Diluted 24,882 23,792 24,325 23,748
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