AHN Atc Healthcare,

Fifth graf, first sentence should read Thursday, June 16th (sted Tuesday, June 16th) and replay number in same graf should read 1-888-203-1112 (sted 1-888-203-112) The corrected release reads: ATC HEALTHCARE ANNOUNCES FISCAL YEAR END 2005 RESULTS OF OPERATIONS ATC Healthcare, Inc. (AMEX:AHN - News), a national leader in medical staffing, today announced results for its fourth quarter and fiscal year end 2005, which ended February 28, 2005. Revenues for the fourth quarter ended February 29, 2005 net of discontinued operations were $15.7 million compared to $18.1 million for the quarter ended February 29, 2004. Net loss for the quarter ended February 28, 2005 was $8.8 million including a loss on discontinued operations of $4.2 million or $0.35 per diluted share (EPS), versus net loss of $277,000 including income from discontinued operations of $775,000 or $0.01 per diluted share for the quarter ended February 29, 2004. Revenues net of discontinued operations for the year ended February 28, 2005, were $67.9 million compared to $81.2 million for the year ended February 29, 2004. Loss from operations net of discontinued operations for the year ended February 28, 2005 was $8.5 million versus loss from operations net of discontinued operations of $7.9 million in the prior fiscal year. Net loss for the year ended February 28, 2005 including discontinued operations was $10.5 million or $0.42 per diluted share (EPS), versus net loss of $6.2 million or $0.25 per diluted share for the year ended February 29, 2004. February 28, 2005 year end results were negatively impacted by a $5.3 million charge to write-off goodwill associated with the closing of offices and the sale of the AllCare Nursing business and a deferred tax valuation allowance of $2.5 million. February 29, 2004 year end results were negatively impacted by a $2.6 million office closing and restructuring reserve taken in the third quarter. In conjunction with this release, management will host a teleconference Thursday, June 16, 2005 at 1:00 pm Eastern Time. The dial in number is 1-800-967-7184 confirmation code 4239236. There will be a 48 hour replay. The replay number is 1-888-203-1112, code 4239236. About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics and other health care facilities with 49 locations doing business in 31 states. ATC provides supplemental staffing, outsourcing and human resources 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 web site at www.atchealthcare.com. This press release contains forward-looking statements. 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 for the year ended February 28, 2005 as filed with the Securities and Exchange Commission on June 13, 2005. -0- *T ATC HEALTHCARE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) For the Three Months For the Year Ended (unaudited) Ended February February February February 28, 29, 28, 29, 2005 2004 2005 2004 -------- --------- --------- --------- REVENUES: Service revenues $ 15,683 $ 18,052 $ 67,937 $81,210 ---------------------------------------------------------------------- COSTS AND EXPENSES: Service costs 13,862 14,324 54,732 63,205 General and administrative expenses 3,896 4,019 17,033 19,207 Depreciation and amortization 199 176 700 1,419 Office closing and restructuring charge 982 -- 1,431 2,589 ---------------------------------------------------------------------- Total operating expenses 18,939 18,519 73,896 86,420 ---------------------------------------------------------------------- LOSS FROM OPERATIONS (3,256) (467) (5,959) (5,210) ---------------------------------------------------------------------- INTEREST AND OTHER EXPENSES (INCOME): Interest expense, net 568 560 2,191 1,863 Other expense (income), net (223) (53) (914) (139) Expense related to TLCS liability -- -- (2,293) -- ---------------------------------------------------------------------- Total interest and other expenses 345 507 (1,016) 1,724 ---------------------------------------------------------------------- LOSS FORM CONTINUING OPERATIONS BEFORE INCOME TAXES (3,601) (974) (4,943) (6,934) INCOME TAX PROVISION 2,526 61 3,516 938 ---------------------------------------------------------------------- NET LOSS FROM CONTINUING OPERATIONS $ (6,127) $ (1,035)$ (8,459) $(7,872) ---------------------------------------------------------------------- DISCONTINUED OPERATIONS NET(LOSS) INCOME FROM DISCONTINUED OPERATIONS $ (2,695) $ 775 $ (1,945) $ 1,692 ---------------------------------------------------------------------- NET LOSS ($8,822) ($260) (10,404) $(6,180) ---------------------------------------------------------------------- DIVIDENDS ACCRETED TO PREFERRED SHAREHOLDERS $ 17 $ 17 $ 70 $ 67 NET LOSS AVAILABLE TO COMMON SHAREHOLDERS $ (8,839) $ (277)$(10,474) $(6,247) ---------------------------------------------------------------------- (LOSS) INCOME EARNINGS PER SHARE: ( Loss) income from continuing operations: (Loss) income per common share Basic and Diluted $ (0.24) $ (0.04)$ (0.34) $ (0.32) ====================================================================== (Loss) income from discontinued operations: (Loss) income Per common share Basic and Diluted $ (0.11) $ 0.03 $ (0.08) $ 0.07 ====================================================================== NET LOSS PER COMMON SHARE BASIC AND DILUTED $ (0.35) $ (0.01)$ (0.42) $ (0.25) ====================================================================== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 25,695 24,899 25,113 24,468 ====================================================================== Diluted 25,695 24,899 25,113 24,468 ====================================================================== *T