Exhibit 99.1

AAC Holdings, Inc. Reports Fourth Quarter and Full Year 2016 Results

BRENTWOOD, Tenn. – (February 27, 2017) AAC Holdings, Inc. (NYSE: AAC) announced its results for the fourth quarter and year ended December 31, 2016. All comparisons included in this release are to the comparable prior year period unless otherwise noted.

Fourth Quarter and Full Year 2016 Operational and Financial Highlights:

Amendment of Senior Secured Credit Agreement

De Novo and Acquisition Highlights:

“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.”

"Looking ahead to 2017, we remain focused on delivering exceptional clinical quality, driving revenue and reducing our operating costs.  We expect to increase our business development team by over 50% to drive utilization of our beds which will in turn drive better margins at our facilities.  We expect a significant decrease of de novo start-up expenses in 2017.  Our Laguna Treatment Hospital should generate significant margin contribution in 2017 now that we have received JCAHO accreditation, and Townsend and Solutions should substantially increase their contribution from last year.  We also expect the standalone lab business, including third-party lab, to deliver similar financial results as we experienced in 2016 while continuing to decrease as a percentage of our total revenue.  In terms of reducing our operating costs, we completed a 5% reduction of our workforce across the company on February 3rd that we expect will result in total savings of over $8 million in 2017.”

"Looking beyond 2017, we are committed to continuing to diversify our payor mix as we expect to further expand our in-network beds and explore government pay options at our hospitals and outpatient centers.  Based on our current pipeline, we expect to have over 1,600 residential and sober living beds by the end of 2018, representing an opportunity for us to grow our business by over 50% in the next three to five years.”

Fourth Quarter 2016 compared with Fourth Quarter 2015

Revenues in the fourth quarter of 2016 increased to $72.4 million compared with $58.3 million for the same period in the prior year. Revenues were positively impacted by acquisitions and de novo projects, as well as an increase in average daily residential census and outpatient visits at our 18 standalone outpatient centers. As expected, our average daily residential revenue declined 5% to $802 for the fourth quarter of 2016 from $840 for the same period in 2015. The year-over-year decline in the average daily residential revenue was significantly impacted by a greater percentage of client related revenues being derived from in-network beds in 2016 as compared with the same period in the prior year combined with a decrease in point-of-care drug testing and diagnostic laboratory services as a percentage of client related revenue.  Point-of-care and diagnostic laboratory services as a percentage of client related revenue were 20% for the quarter, flat when compared to the prior year, and decreased from 28% in the prior year to 24% for the 2016 year.

Operating expenses increased to $73.6 million in the fourth quarter of 2016 from $60.4 million in the prior year period primarily related to the growth in our residential average daily census and outpatient visits combined with an increase in salaries, wages and benefits. Salaries, wages and benefits, as a percentage of total revenues, were 50% in the fourth quarter of 2016, flat when compared with the prior year.

Net income to stockholders was $0.5 million, or $0.02 per diluted common share, in the fourth quarter of 2016 compared with net income of $0.4 million, or $0.02 per diluted common share, in the prior year period. Adjusted EBITDA increased to $11.1 million compared with $9.4 million for the same period in the prior year. Adjusted net income available to stockholders decreased to $3.4 million, or $0.15 per diluted common share, compared with $3.8 million, or $0.17 per diluted common share, for the same period in the prior year. Adjusted net income available to stockholders, adjusted diluted earnings per share and Adjusted EBITDA are non-GAAP financial measures. Tables reconciling these non-GAAP measures to the most directly comparable GAAP measures, net income available to stockholders, diluted earnings per common share and net income, respectively, are included in this release.

De Novo Activity and Bed Expansion Pipeline

By the end of the fourth quarter of 2016, Laguna Treatment Hospital was treating an average of 37 clients out of 50 staffed beds. The facility received Joint Commission (JCAHO) accreditation on February 14, 2017 and is licensed for 93 beds.

At the 100-bed Oxford Treatment Center in Mississippi, an additional 24 detoxification and 48 sober living beds are currently anticipated to be completed by the end of the second quarter of 2017.

The Company currently anticipates having 124 sober living beds at Resolutions Arlington opened by the end of the second quarter of 2017.

The Company continued development of a 150-bed residential treatment center in Ringwood, New Jersey which is expected to open in 2018.

Balance Sheet and Cash Flows

As of December 31, 2016, AAC Holdings’ balance sheet reflected cash and cash equivalents of $4.0 million, net property and equipment of $141.3 million and total debt of $189.1 million. Capital expenditures in the fourth quarter of 2016 totaled $7.3 million. Cash flows used in operations totaled $1.2 million for the fourth quarter of 2016 compared with cash flows provided by operations of $0.4 million in the prior year period. Cash expenditures related to the California matter totaled $2.5 million and $1.8 million for the fourth quarters of 2016 and 2015, respectively.  Exclusive of the cash expenditures related to the California matter, we would have generated positive cash flows from operations of $1.3 million for the fourth quarter of 2016.  Days sales outstanding (“DSO”) was 111 for the fourth quarter of 2016 compared with 96 for the prior year period. Our DSO’s continue to be impacted by increased documentation requests by commercial payors prior to payment and slower collections related to laboratory services. Provision for doubtful accounts was 8.7% of total revenues for the fourth quarter of 2016 compared with 8.9% of total revenues for the prior year period.

2017 Outlook

AAC introduced its guidance for the full year 2017.  Revenues are expected to be in the range of $295 million to $305 million.   This estimate is based on average daily residential census of 890 to 900 and an average daily residential revenue of $725 to $750.

Adjusted EBITDA is expected to be in the range of $52 million to $54 million and adjusted earnings per diluted common share is expected to be in the range of $0.50 to $0.58. Assumptions also include an annual effective tax rate of 37% to 39% and diluted weighted-average common shares outstanding of approximately 23 million for the year.

This outlook does not include the impact of any future acquisitions, transaction-related costs, litigation settlement and expenses related to legal defenses.

With respect to our “2017 Outlook” above, reconciliation of adjusted EBITDA and adjusted earnings per diluted common share guidance to the closest corresponding GAAP measure on a forward-looking basis is not available without unreasonable efforts. This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliations, including de novo start-up and other expense and acquisition-related expenses. We expect these adjustments may have a potentially significant impact on our future GAAP financial results.

Earnings Conference Call

The Company will host a conference call and live audio webcast, both open for the general public to hear, on February 28, 2017, at 8:00 a.m. CT. The number to call for this interactive teleconference is (412) 542-4144. A replay of the conference call will be available through March 7, 2017, by dialing (412) 317-0088 and entering the replay access code: 10100560.

The live audio webcast of the Company’s quarterly conference call will be available online at ir.americanaddictioncenters.org. The online replay will be available on the website one hour after the call.

About American Addiction Centers

American Addiction Centers is a leading provider of inpatient and outpatient substance abuse treatment services. We treat clients who are struggling with drug addiction, alcohol addiction, and co-occurring mental/behavioral health issues. We currently operate substance abuse treatment facilities located throughout the United States. These facilities are focused on delivering effective clinical care and treatment solutions. For more information, please find us at AmericanAddictionCenters.org or follow us on Twitter.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are made only as of the date of this release. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “may,” “potential,” “predicts,” “projects,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these words. Forward-looking statements may include information concerning AAC Holdings, Inc.’s (collectively with its subsidiaries; “Holdings” or the “Company”) possible or assumed future results of operations, including descriptions of Holdings’ revenues, profitability, outlook and overall business strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results and performance to be materially different from the information contained in the forward-looking statements. These risks, uncertainties and other factors include, without limitation: (i) our inability to operate our facilities; (ii) our reliance on our sales and marketing program to continuously attract and enroll clients; (iii) a reduction in reimbursement rates by certain third-party payors for inpatient and outpatient services and point of care and definitive lab testing; (iv) our failure to successfully achieve growth through acquisitions and de novo expansions; (v) uncertainties regarding the timing of the closing of acquisitions; (vi) the possibility that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of an acquisition; (vii) our failure to achieve anticipated financial results from prior acquisitions; (viii) a disruption in our ability to perform definitive drug testing services; (ix) maintaining compliance with applicable regulatory authorities, licensure and permits to operate our facilities and lab; (x) a disruption in our business and reputation and potential economic consequences with the civil securities claims brought by shareholders; (xi) our inability to agree on conversion and other terms for the balance of convertible debt; (xii) our inability to meet our covenants in the loan documents; (xiii) our inability to obtain senior lender consent to exceed the current $50 million limit in unsecured subordinated debt; (xiv) our inability to integrate newly acquired facilities; and (xv) general economic conditions, as well as other risks discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K, and other filings with the Securities and Exchange Commission. As a result of these factors, we cannot assure you that the forward-looking statements in this release will prove to be accurate. Investors should not place undue reliance upon forward looking statements.

¹  Includes client census at all of our owned and leased residential facilities.

²  Represents the total number of outpatient visits at our stand-alone outpatient centers during the period.

³  Average daily residential revenue is calculated as total revenues from all of our owned and leased residential facilities during the period divided by the product of the number of days in the period multiplied by average daily residential census.

⁴  Average net daily residential revenue is calculated as total revenues from all of our owned and leased residential facilities less provision for doubtful accounts during the period, divided by the product of the number of days in the period multiplied by average daily residential census.

⁵  Includes total client admissions at our owned and leased residential facilities for the period presented.

⁶  Bed count at end of period includes all beds at owned and leased inpatient facilities.

⁷  Effective bed count at end of period represents beds for which our facilities are staffed based on planned census.  

⁸ Average effective bed utilization represents average daily residential census divided by the average effective beds    during the quarter.

⁹  Revenues per day is calculated by dividing the revenues for the period by the number of days in the period. Days sales outstanding is then calculated as accounts receivable, net of allowance for doubtful accounts, at the end of the period divided by revenues per day.

Adjusted EBITDA, adjusted net income available to AAC Holdings, Inc. common stockholders, and adjusted diluted earnings per common share (herein collectively referred to as "Non-GAAP Disclosures") are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the U.S. Securities and Exchange Commission, each of which are defined below.   Management believes the Non-GAAP Disclosures provide investors with additional meaningful financial information that should be considered when assessing our underlying business performance and trends. We believe the Non-GAAP Disclosures also enhance investors’ ability to compare period-to-period financial results.  The Non-GAAP Disclosures should not be considered as measures of financial performance under U.S. generally accepted accounting principles ("GAAP").   The items excluded from the Non-GAAP Disclosures are significant components in understanding and assessing our financial performance and should not be considered as an alternative to net income or other financial statement items presented in the condensed consolidated financial statements. Because the Non-GAAP Disclosures are not measures determined in accordance with GAAP, the Non-GAAP Disclosures may not be comparable to other similarly titled measures of other companies.  

Management defines Adjusted EBITDA as net income (loss) adjusted for interest expense, depreciation and amortization expense, income tax (benefit) expense, stock-based compensation and related tax reimbursements, litigation settlement and California matter related expense, acquisition-related expense (which includes professional services for accounting, legal, valuation services and licensing expenses), de novo start-up and other expenses, facility closure operating losses and expense (associated with The Academy and FitRx), gain on contingent consideration associated with our acquisition of Townsend, and bargain purchase gain associated with our acquisition of Sunrise House in the fourth quarter of 2015.

Management defines Adjusted Net Income Available to AAC Holdings, Inc. common stockholders as net income (loss) available to AAC Holdings, Inc. common stockholders adjusted for litigation settlement and California matter related expense, acquisition-related expense (which includes professional services for accounting, legal, valuation services and licensing expenses), de novo start-up and other expenses, facility closure operating losses and expense (associated with The Academy and FitRx), gain on contingent consideration associated with our acquisition of Townsend, bargain purchase gain associated with our acquisition of Sunrise House in the fourth quarter of 2015, redemption of BHR Series A Preferred Units, and the income tax effect of the non-GAAP adjustments at the then applicable effective tax rate.

Adjusted diluted earnings per common share represents diluted earnings per common share calculated using adjusted net income available to AAC Holdings, Inc. common stockholders as opposed to net income available to AAC Holdings, Inc. common stockholders.

With respect to our “2017 Outlook” above, reconciliation of adjusted EBITDA and adjusted earnings per diluted common share guidance to the closest corresponding GAAP measure on a forward-looking basis is not available without unreasonable efforts. This inability results from the inherent difficulty in forecasting generally and quantifying certain projected amounts that are necessary for such reconciliations. In particular, sufficient information is not available to calculate certain adjustments required for such reconciliations, including acquisition-related expenses and de novo start-up and other expense. We expect these adjustments may have a potentially significant impact on our future GAAP financial results.