AHN Atc Healthcare,

ATC Healthcare, Inc. (AMEX:AHN), a national leader in medical staffing, today reported results for its third quarter of fiscal year end 2006, which ended November 30, 2005. Three Month Results Revenues for the third quarter ended November 30, 2005 were $18.2 million compared to $16.0 million (net of discontinued operations) for the quarter ended November 30, 2004. Service costs were 75.9% of total revenues in the third quarter of fiscal year end 2006 as compared to 81.4% in the third quarter of the prior year. Income from operations for the quarter ended November 30, 2005 was $237 thousand versus a loss from operations of $(2.1) million for the quarter ended November 30, 2004. Net loss for the quarter ended November 30, 2005 was $(269) thousand or $(.01) per basic and diluted share versus a net loss of $(1.3) million including loss from discontinued operations of $(74) thousand or a loss of $(.05) per basic and diluted share for the quarter ended November 30, 2004. Nine Month Results ATC reported revenues of $53.2 million (net of discontinued operations) for the nine months ended November 30, 2005, as compared to revenues of $52.3 million (net of discontinued operations) for same time period last year. Service costs were 76.6% of total revenues for the nine months ended November 30, 2005 as compared to 78.2% for the nine months ended November 30, 2004. Income from continuing operations was $130 thousand for the nine months ended November 30, 2005 as compared to a loss from continuing operations of $(2.7) million for the same period last year. The Company recorded a net loss of $(2.2) million including a loss from discontinued operations of $(577) thousand or $(.08) per basic and diluted share for the nine months ended November 30, 2005 versus a net loss of $(1.6) million including income from discontinued operations of $397 thousand or $(.07) per basic and diluted share for the nine months ended November 30, 2004. David Savitsky, CEO, remarked "We're pleased that the third quarter continued to show improvement both in consecutive and same quarter results in sales and operating income. We believe that the programs we've put in place to open new locations, grow our government sales and expand international nurse recruitment will have a strong impact in the next fiscal year. Also, as a result of restructuring of back office staff, and lower interest rates with our revolving loan facility, we've been able to decrease both General and Administrative cost, as well as interest expense." In conjunction with this release, management will host a teleconference Thursday, January 19th at 1:00pm Eastern Time. The dial in number 800-967-7144 confirmation code# 1423287. There will be a 48 hour replay. The replay number is, 888-203-1112 , Code 1423287. About ATC Healthcare, Inc. ATC is a national leader in medical staffing personnel to hospitals, nursing homes, clinics, and other health care facilities with 52 locations 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/A for the year ended February 28, 2005 as filed with the Securities and Exchange Commission on September 26, 2005. -0- *T ATC HEALTHCARE, INC. AND SUBSIDIARIES 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, 2005 2004 2005 2004 ---- ---- ---- ---- REVENUES: Service revenues $18,219 $16,000 $53,161 $52,254 ---------------------------------------------------------------------- COSTS AND EXPENSES: Service costs $13,824 $13,021 40,735 40,840 General and administrative expenses 4,003 4,451 11,856 13,212 Depreciation and amortization 155 170 440 502 Restructuring Charges -- 449 -- 449 ---------------------------------------------------------------------- Total operating expenses 17,982 18,091 53,031 55,003 ---------------------------------------------------------------------- INCOME (LOSS) FROM OPERATIONS 237 (2,091) 130 (2,749) ---------------------------------------------------------------------- INTEREST AND OTHER EXPENSES (INCOME): Interest expense, net 512 486 1,753 1,587 Other expense (income), net (6) (2,292) (93) (2,993) ---------------------------------------------------------------------- Total interest and other expenses (income) 506 (1,806) 1,660 (1,406) ---------------------------------------------------------------------- LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (269) (285) (1,530) (1,343) INCOME TAX PROVISION (BENEFIT) 0 939 50 636 ---------------------------------------------------------------------- LOSS FROM CONTINUING OPERATIONS (269) (1,224) (1,580) (1,979) ---------------------------------------------------------------------- DISCONTINUED OPERATIONS: (LOSS) INCOME FROM DISCONTINUED OPERATIONS NET OF TAX PROVISION FOR THE THREE MONTHS OF $0 IN 2005 AND $0 in 2004 AND FOR THE NINE MONTHS OF $0 AND $353 RESPECTIVELY: -- (74) (577) 397 ---------------------------------------------------------------------- NET LOSS (269) (1,298) (2,157) (1,582) ---------------------------------------------------------------------- Dividends accreted to Preferred Shareholders 120 17 154 53 ---------------------------------------------------------------------- NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (389) (1,315) $(2,311) $(1,635) ====================================================================== (LOSS) INCOME EARNINGS PER SHARE: (LOSS) FROM CONTINUING OPERATIONS: (LOSS) PER COMMON SHARE- BASIC $ (.01) $ (.05) $ (.06) $ (.08) =================================================== (LOSS) PER COMMON SHARE - DILUTED $ (.01) $ (.05) $ (.06) $ (.08) =================================================== (LOSS) INCOME FROM DISCONTINUED OPERATIONS: (LOSS) INCOME PER COMMON SHARE-BASIC $ (.00) $ (.00) $ (.02) $ .01 =================================================== (LOSS) INCOME PER COMMON SHARE - DILUTED $ (.00) $ (.00) $ (.02) $ .01 =================================================== NET LOSS (LOSS) PER COMMON SHARE-BASIC $ (.01) $ (.05) $ (.08) $ (.07) =================================================== (LOSS) PER COMMON SHARE - DILUTED $ (.01) $ (.05) $ (.08) $ (.07) =================================================== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 33,930 24,934 30,338 24,919 ====================================================================== Diluted 33,930 24,934 30,338 24,919 ====================================================================== *T