By MATT BLOIS
The Brentwood health care company American Addiction Centers won’t file an annual report on time, according to a document filed with the Securities and Exchange Commission.
The company stated in the document that it couldn’t file the 2018 report by the due date without “unreasonable effort or expense.” In previous years, the company filed the annual report in late February or early March.
AAC attributes the delay to an analysis of its estimates of accounts receivable, including its client-related diagnostic services accounts receivable.
The late filing notice comes a few weeks after the company reported major problems during the fourth quarter of 2018.
Excluding a company AAC purchased in 2018, new admissions fell by nearly 20 percent in the last few months of 2018. The average number of patients at clinics and outpatient visits also fell sharply.
Patient volumes have fallen steeply since last summer when a change to Google’s search algorithm made it hard to find the company’s clinics online. Now, AAC says it’s looking to cut costs and sell some properties.
AAC announced in December a plan to reduce costs by $15 million. In March, the company reported that it hard already reduced annual expenses by $30 million. It also took out an $11 million loan at a high interest rate.
In the fourth quarter report, CEO Michael Cartwright said he hopes a marketing push will help increase patient numbers and get the company back on track.
The company reported some operating results in March, but a full financial report and a conference call were delayed. The company still hasn’t released those results or held a conference call.
In an SEC document, the company says it expects to file the annual report within 15 calendar days of the due date.
Shares of AAC (Ticker: AAC) fell to about $1.72 Wednesday morning. They have fallen more than 75 percent over the past six months, pushing the company’s market capitalization to about $45 million.