Revenue during the quarter grew 24.14 percent to $72.35 million from $58.28 million in the previous year period. Operating margin for the quarter stood at negative 1.73 percent as compared to a negative 3.69 percent for the previous year period.

Operating loss for the quarter was $1.25 million, compared with an operating loss of $2.15 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $11.13 million compared with $9.39 million in the prior year period. At the same time, adjusted EBITDA margin contracted 72 basis points in the quarter to 15.39 percent from 16.11 percent in the last year period.

"2016 was a year of significant growth as we grew from 897 to 1,140 residential beds, and we expanded into the sober living space with the addition of over 150 beds to facilitate our outpatient business," noted Michael Cartwright, chairman and chief executive officer of AAC Holdings, Inc. "The combination of organic and acquisition growth enabled us to increase our admissions by over 50%, while leveraging a significant decrease in our advertising and marketing costs. With the growth in residential and outpatient facility revenue, we were able to reduce the percentage of total revenue from our point-of-care drug testing and diagnostic laboratory services. However, despite the improvement in top-line growth, the over $8 million invested in de novo start-up expenses and approximately $8 million of expense incurred on the California legal matter contributed to a slight net loss to stockholders for the year."

For financial year 2017, AAC Holdings, Inc. expects revenue to be in the range of $295 million to $305 million for financial year 2017. The company projects diluted earnings per share to be in the range of $0.50 to $0.58 on adjusted basis.

The company has spent $56.45 million cash to meet investing activities during the year as against cash outgo of $143.40 million in the last year.

Cash flow from financing activities was $41.52 million for the year, down 61.34 percent or $65.89 million, when compared with the last year.

Cash and cash equivalents stood at $3.96 million as on Dec. 31, 2016, down 78.86 percent or $14.79 million from $18.75 million on Dec. 31, 2015.

Working capital decreases marginally
AAC Holdings, Inc. has witnessed a decline in the working capital over the last year. It stood at $51.14 million as at Dec. 31, 2016, down 2.01 percent or $1.05 million from $52.19 million on Dec. 31, 2015. Current ratio was at 2.13 as on Dec. 31, 2016, down from 2.52 on Dec. 31, 2015.

Days sales outstanding went up to 56 days for the quarter compared with 48 days for the same period last year.

Debt increases substantially
AAC Holdings, Inc. has witnessed an increase in total debt over the last one year. It stood at $189.11 million as on Dec. 31, 2016, up 31.37 percent or $45.16 million from $143.95 million on Dec. 31, 2015. Total debt was 49.26 percent of total assets as on Dec. 31, 2016, compared with 45.55 percent on Dec. 31, 2015. Debt to equity ratio was at 1.22 as on Dec. 31, 2016, up from 1.05 as on Dec. 31, 2015.