ATC Healthcare Announces Third Quarter 2007 Results of Operations.Revenue up 24% from Third Quarter Last Year 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 ), a leader in medical staffing, today reported results for its third quarter of fiscal year end 2007, which ended November 30, 2006. Three-Month Results Revenues increased by $4.4 million, or 24%, from $18.2 million for the third quarter ended November 30, 2005 to $22.6 million for the third quarter ended November 30, 2006. Service costs represent all direct costs of providing services to our clients. Service costs were 79.0% of total revenues in the third quarter ended in 2006 as compared to 75.9 % for the third quarter ended in 2005. Income from operations decreased by $124 thousand from $241 thousand for the third quarter ended in 2005 to $117 thousand for the third quarter ended in 2006. Net loss increased by $193 thousand from $(269) thousand or $(.01) 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 for the third quarter ended in 2005, to a loss of $(462) thousand or $(.02) per basic and diluted share for the third quarter ended in 2006. EBTDAS ("earnings before taxes, depreciation and amortization and stock-based compensation expense") net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $200 thousand for the third quarter ended in 2006 compared to a loss of $114 thousand for the third quarter ended in 2005. For an explanation of the non-GAAP measure "EBTDAS from continuing operations" and of the importance of that term for our business, please see the discussion under "Earnings Measurement Quality" below. EBTDAS from continuing operations is compared to the GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure "net (loss) from continuing operations" in the reconciliation at the end of this release. Nine-Month Results Revenues increased by $12.3 million, or 23%, from $53.2 million for the nine months ended November 30, 2005 to $65.6 million for the nine months ended November 30, 2006. Service costs were 78.4% of total revenues in the nine months ended in 2006 as compared to 76.5% for the nine months ended in 2005. Income from operations increased by $391 thousand from $210 thousand for the nine months ended in 2005 to income of $601 thousand for the nine months ended in 2006. Net loss improved by decreasing $1.2 million from a net loss of $(2.2) million (including a loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $(577) thousand) for the nine months ended in 2005, to a net loss of $(943) thousand in the nine months ended in 2006. Basic and diluted loss per share was $(.08) for the nine months ended in 2005 and basic and diluted loss per share was $(.04) for the nine months ended in 2006. EBTDAS from continuing operations was a loss of $211 thousand for the nine months ended in 2006 compared to a loss of $1.1 million for the nine months ended in 2005. Management Comments "Continued revenue growth of 24% and 23%, respectively, in the three and nine months ended in 2006 compared to 2005, is very positive," remarked David Savitsky, Chief Executive Officer. "As anticipated, our acquisition of Critical Nursing Solutions in early June has contributed nicely to these revenue increases. Equally exciting is that our existing offices have shown significant organic growth as well, and in certain sun-belt territories we expect very strong performance this winter," added Savitsky. "As we continue to grow revenues, and improve margins, we look forward to ATC attaining profitability." ATC Third Quarter Earnings Call In conjunction with this release, management will host a conference call to discuss the earnings release at 1:00 PM EST EST electroshock therapy. EST abbr. electroshock therapy , on Wednesday, January 17, 2007. To listen to the call, participants in the US and Canada should dial: (800) 946-0720, five minutes prior to the start time of the call. The access code is 5707145. A telephonic replay of the call may be accessed by dialing (888) 203-1112 and entering access code 5707145. The replay will be available from 3:30 PM EST, on January 17, 2007 until midnight, Central Standard Time, January 19, 2007. This release, along with any additional financial or statistical information to be presented on the call, will be archived on the Corporate Press Releases section of our website, www.atchealthcare.com Forward Looking Statements Certain statements contained in this release that are not statements of historical facts are "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The words -- "believe", "expect", "anticipate", "intend", "will", and similar expressions are examples of words that identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding our future financial position, timing of future revenue, business strategy and cost savings. These forward-looking statements are based on our current beliefs, as well as assumptions we have made based upon information currently available to us. These forward-looking statements may be affected by the risks and uncertainties in our business and are qualified in their entirety by the cautionary statements and risk factor disclosure contained in our filings with the Securities and Exchange Commission, including our 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, 2006. We do not assume, and expressly disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. , any obligation to update these forward-looking statements. Earnings Measurement Quality - GAAP vs. Non-GAAP The company provides supplemental information regarding its operational performance using certain non-GAAP financial measures, which excludes primarily non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. . The company uses "EBTDAS from continuing operations" to provide an indication of the company's baseline performance before charges that are considered by management to be outside of the company's core operating results. EBTDAS represents earnings from continuing operations less taxes, depreciation and amortization and stock-based compensation expense. The company believes this non-GAAP financial measure provides a good measure of performance for the company because it represents the amount realized “Amount Realized” is one of two variables in the formula used to compute gains and losses when determining gross income for tax purposes. The Amount Realized – Adjusted Basis tells the amount of Realized Gain (if positive) or Realized Loss (if negative). from revenue after all operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . While non-GAAP financial measures are not an alternative to generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting used in 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. ("GAAP"), the company's management uses this non-GAAP financial measure to evaluate the company's historical and prospective financial performance in the ordinary course of business. The company believes that providing to the company's investors the non-GAAP financial measure, in addition to the most comparable GAAP presentation, allows the investors to better evaluate the company's progress and its financial results over time and to compare the company's results with the results of the company's competitors. About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other healthcare facilities with 56 locations in 35 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 resource 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, long-term, and "traveling" contract assignments. To learn more about the company's services, visit their website at www.atchealthcare.com. [TABLE OMITTED] [TABLE OMITTED] |
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