AAC (AACH) 10-Q 8 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 04, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	AAC
Entity Registrant Name	AAC Holdings, Inc.
Entity Central Index Key	1,606,180
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,707,101

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 13,276	$ 18,750
Accounts receivable, net of allowances	80,410	60,934
Prepaid expenses and other current assets	3,233	6,840
Total current assets	96,919	86,524
Property and equipment, net	136,171	109,724
Goodwill	134,674	108,722
Intangible assets, net	10,759	9,470
Other assets	1,819	1,609
Total assets	380,342	316,049
Current liabilities
Accounts payable	10,304	7,878
Accrued liabilities	21,302	21,653
Current portion of long-term debt	8,617	3,611
Current portion of long-term debt – related party		1,195
Total current liabilities	40,223	34,337
Deferred tax liabilities		1,195
Long-term debt, net of current portion	180,809	140,335
Other long-term liabilities	4,307	3,694
Total liabilities	225,339	179,561
Stockholders’ equity
Common stock, $0.001 par value: 70,000,000 shares authorized, 23,706,294 and 22,813,809 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	23	23
Additional paid-in capital	144,876	121,923
Retained earnings	18,641	19,708
Total stockholders’ equity	163,540	141,654
Noncontrolling interest	(8,537)	(5,166)
Total stockholders’ equity including noncontrolling interest	155,003	136,488
Total liabilities and stockholders’ equity	$ 380,342	$ 316,049

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	70,000,000	70,000,000
Common stock, shares issued	23,706,294	22,813,809
Common stock, shares outstanding	23,706,294	22,813,809

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Client related revenue	$ 68,491	$ 53,695	$ 199,423	$ 150,302
Other revenue	2,037	3,677	7,995	3,677
Total revenues	70,528	57,372	207,418	153,979
Operating expenses
Salaries, wages and benefits	36,479	23,777	104,641	61,884
Advertising and marketing	4,687	5,790	13,593	15,527
Professional fees	5,278	3,383	13,454	6,713
Client related services	7,040	4,438	17,459	10,831
Other operating expenses	6,817	5,695	20,618	16,044
Rentals and leases	2,108	1,583	5,532	3,442
Provision for doubtful accounts	4,794	5,366	15,220	12,925
Litigation settlement	940	859	1,090	2,379
Depreciation and amortization	4,629	1,921	12,769	4,937
Acquisition-related expenses	468	937	2,428	2,917
Total operating expenses	73,240	53,749	206,804	137,599
(Loss) income from operations	(2,712)	3,623	614	16,380
Interest expense, net (change in fair value of interest rate swaps of ($141) and $137 and $49 and $683, respectively)	1,927	1,203	5,850	2,426
Other expense (income), net	130	32	87	(28)
(Loss) Income before income tax expense	(4,769)	2,388	(5,323)	13,982
Income tax (benefit) expense	(758)	644	(885)	5,003
Net (loss) income	(4,011)	1,744	(4,438)	8,979
Less: net loss attributable to noncontrolling interest	1,486	708	3,371	1,747
Net (loss) income attributable to AAC Holdings, Inc. stockholders	(2,525)	2,452	(1,067)	10,726
Net (loss) income available to AAC Holdings, Inc. common stockholders	$ (2,525)	$ 2,452	$ (1,067)	$ 10,045
Basic earnings per common share	$ (0.11)	$ 0.11	$ (0.05)	$ 0.47
Diluted earnings per common share	$ (0.11)	$ 0.11	$ (0.05)	$ 0.46
Weighted-average shares outstanding:
Basic	22,957,834	21,922,374	22,607,194	21,471,063
Diluted	22,957,834	22,031,133	22,607,194	21,651,654
BHR | Series A Preferred Stock
Operating expenses
BHR Series A Preferred Unit dividends				$ (147)
Redemption of BHR Series A Preferred Units				$ (534)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Swap
Change in fair value of interest rate swaps	$ (141)	$ 137	$ 49	$ 683

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	Total	Townsend Acquisition	Solutions Acquisition	AAC Holdings, Inc.	AAC Holdings, Inc.Townsend Acquisition	AAC Holdings, Inc.Solutions Acquisition	Common StockAAC Holdings, Inc.	Common StockAAC Holdings, Inc.Townsend Acquisition	Common StockAAC Holdings, Inc.Solutions Acquisition	Common StockMarketing IntangiblesAAC Holdings, Inc.	Additional Paid-in Capital	Additional Paid-in CapitalTownsend Acquisition	Additional Paid-in CapitalSolutions Acquisition	Retained Earnings	Noncontrolling Interest
Balance at Dec. 31, 2015	$ 136,488			$ 141,654			$ 23				$ 121,923			$ 19,708	$ (5,166)
Balance, share at Dec. 31, 2015							22,813,809
Common stock granted and issued under stock incentive plan, net of forfeitures, amount	6,752			6,752							6,752
Common stock granted and issued under stock incentive plan, net of forfeitures, share							73,961
Effect of employee stock purchase plan	771			771							771
Effect of employee stock purchase plan, shares							44,174
Acquisition of certain assets		$ 9,112	$ 6,318		$ 9,112	$ 6,318						$ 9,112	$ 6,318
Acquisition of certain assets, shares								447,369	309,871	17,110
Net (loss)	(4,438)			(1,067)										(1,067)	(3,371)
Balance at Sep. 30, 2016	$ 155,003			$ 163,540			$ 23				$ 144,876			$ 18,641	$ (8,537)
Balance, shares at Sep. 30, 2016							23,706,294

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net (loss) income	$ (4,438)	$ 8,979
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for doubtful accounts	15,220	12,925
Depreciation and amortization	12,769	4,937
Equity compensation	6,840	4,144
Loss on disposal of property and equipment	163
Amortization of debt issuance costs	404	156
Deferred income taxes	(904)	(704)
Changes in operating assets and liabilities:
Accounts receivable	(32,867)	(35,934)
Prepaid expenses and other assets	1,387	(3,920)
Accounts payable	1,973	4,383
Accrued liabilities	949	10,018
Other long term liabilities	(180)	840
Net cash provided by operating activities	1,316	5,824
Cash flows from investing activities:
Purchase of property and equipment	(29,985)	(42,779)
Acquisition of subsidiaries, net of cash acquired	(19,150)	(83,971)
Escrow funds held on acquisition		(500)
Purchase of intangible assets		(540)
Purchase of other assets, net		(50)
Net cash used in investing activities	(49,135)	(127,840)
Cash flows from financing activities:
Proceeds from revolving line of credit, net	20,000	47,000
Proceeds from long-term debt, net	27,500	73,802
Payments on long-term debt and capital leases	(3,960)	(26,546)
Repayment of long-term debt — related party	(1,195)	(542)
Repayment of subordinated notes payable		(945)
Net cash provided by financing activities	42,345	84,240
Net change in cash and cash equivalents	(5,474)	(37,776)
Cash and cash equivalents, beginning of period	18,750	48,540
Cash and cash equivalents, end of period	13,276	10,764
Cash and cash equivalents paid for:
Interest, net of capitalized interest	3,690	2,178
Income taxes, net of refunds	2,626	1,200
Accrued purchase of property and equipment	1,205
Acquisition of equipment through capital lease	1,536
BHR | Series A Preferred Stock
Cash flows from financing activities:
Redemption of BHR Series A Preferred Units		(8,529)
Solutions Acquisition
Supplemental information on non-cash investing and financing transactions:
Purchase price	12,968
Buyer common stock issued	(6,318)
Cash paid for acquisition	6,650
Townsend Acquisition
Supplemental information on non-cash investing and financing transactions:
Purchase price	21,612
Buyer common stock issued	(9,112)
Cash paid for acquisition	$ 12,500
Clinical Services Of Rhode Island Inc
Supplemental information on non-cash investing and financing transactions:
Purchase price		2,008
Buyer common stock issued		(1,343)
Cash paid for acquisition		665
Referral Solutions Group Acquisition
Supplemental information on non-cash investing and financing transactions:
Purchase price		56,653
Buyer common stock issued		(24,173)
Cash paid for acquisition		32,480
Taj Media Acquisition
Supplemental information on non-cash investing and financing transactions:
Purchase price		3,907
Buyer common stock issued		(1,667)
Cash paid for acquisition		$ 2,240

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	1. Description of Business AAC Holdings, Inc. (collectively with its subsidiaries, the “Company” or “AAC Holdings”) was incorporated on February 12, 2014. The Company is headquartered in Brentwood, Tennessee and provides substance abuse treatment services for individuals with drug and alcohol addiction. In addition to the Company’s substance abuse treatment services, the Company performs drug testing and diagnostic laboratory services, provides physician services to clients and operates a broad portfolio of internet assets that service millions of website visits each month serving families and individuals struggling with addiction and seeking treatment options. As of September 30, 2016, the Company, through its subsidiaries, operated 12 residential substance abuse treatment facilities and 18 standalone outpatient centers.

Basis of Presentation and Recen

Basis of Presentation and Recently Issued Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Recently Issued Accounting Pronouncements	2. Principles of Consolidation The Company conducts its business through limited liability companies and C-corporations, each of which is a direct or indirect wholly owned subsidiary of the Company. The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and the accounts of variable interest entities (“VIEs”) in which the Company is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. The Company consolidated seven professional groups (“Professional Groups”) that constituted VIEs as of September 30, 2016. The Professional Groups are responsible for the supervision and delivery of medical services to the Company’s clients. The Company provides management services to the Professional Groups. Based on the Company’s ability to direct the activities that most significantly impact the economic performance of the Professional Groups, provide necessary funding and the obligation and likelihood of absorbing all expected gains and losses, the Company has determined that it is the primary beneficiary of these Professional Groups. The accompanying condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015 include assets of $1.3 million and $1.4 million and liabilities of $1.0 million and $0.6 million related to the VIEs, respectively. The accompanying condensed consolidated statements of operations include net loss attributable to noncontrolling interest of $1.5 million and $0.7 million related to the VIEs for the three months ended September 30, 2016 and 2015, respectively, and net loss of $3.4 million and $1.7 million for the nine months ended September 30, 2016 and 2015, respectively. The accompanying condensed consolidated financial statements are unaudited, with the exception of the December 31, 2015 balance sheet, which is consistent with the audited financial statements at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for a complete set of financial statements. The information contained in these condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the fiscal year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 9, 2016. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Recent Pronouncements In August 2016 the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). Among other clarifications, ASU 2016-15 clarifies the classification of payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, which will now be included in the Financing Activities section in the Statements of Cash Flows. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s results of operations. In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 requires that all excess tax benefits and tax deficiencies resulting from share-based payments be recognized as income tax expense or benefit in the income statement, which eliminates the accounting for additional paid-in capital pools. ASU 2016-09 also allows companies to make an entity-wide policy election to either estimate the number of stock-based awards that are expected to vest or account for forfeitures as they occur. With regards to the Statement of Cash Flows, both inflows and outflows of cash related to excess tax benefits will be classified as operating activities, whereas prior to this update, excess tax benefits as cash inflows were to be classified as financing activities. Also, cash paid by an employer when directly withholding shares for tax-withholding purposes (“net share settlement”) will now be classified as a financing activity. The new standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of ASU 2016-09 is not expected to have a material impact on the Company’s results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact that adoption of ASU 2016-02 will have on its consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust its financial statements for changes to provisional amounts that are identified during the measurement-period following the consummation of a business combination. Instead, ASU 2015-16 requires these types of adjustments to be made during the reporting period in which they are identified and would require additional disclosure or separate presentation of the portion of the adjustment that would have been recorded in the previously reported periods as if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those years, with earlier application permitted for financial statements that have not been issued. The adoption of ASU 2015-16 did not have a material impact on the Company’s results of operations. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software.” The update was effective for financial statements issued for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. ASU 2015-05 provides guidance for customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. An entity can elect to adopt the amendments either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The adoption of ASU 2015-05 on January 1, 2016 did not have a material impact on the Company’s condensed consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers”, which outlines a single comprehensive model for recognizing revenue and supercedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. Companies across all industries will use a new five-step model to recognize revenue from customer contracts. The new standard, which replaces nearly all existing GAAP and International Financial Reporting Standards revenue recognition guidance, will require significant management judgment in addition to changing the way many companies recognize revenue in their financial statements. The standard is effective for public entities for annual and interim periods beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of this standard will have on its revenue recognition policies and procedures, financial position, result of operations, cash flows, financial disclosures and control framework.

Other Revenue

Other Revenue	9 Months Ended
	Sep. 30, 2016
Health Care Organization Revenue [Abstract]
Other Revenue	3. Other Revenue Our other revenue consists primarily of service charges from the delivery of quality targeted leads to behavioral and mental health service businesses through our operating subsidiary Referral Solutions Group, LLC (“RSG”), which was acquired on July 2, 2015 (the ‘RSG Acquisition”) and diagnostic laboratory services provided to clients of third-party addiction treatment providers. Revenue is recognized when persuasive evidence of an arrangement exists, services have been rendered, the fee for services is fixed or determinable, and collectability of the fee is reasonably assured.

General and Administrative Cost

General and Administrative Costs	9 Months Ended
	Sep. 30, 2016
General And Administrative Costs [Abstract]
General and Administrative Costs	4. The majority of the Company’s expenses are “cost of revenue” items. Costs that could be classified as general and administrative expenses include the Company’s corporate overhead costs, which were $20.7 million and $13.4 million for the three months ended September 30, 2016 and 2015, respectively, and $55.8 million and $32.6 million for the nine months ended September 30, 2016 and 2015, respectively.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share	5. Earnings Per Share Earnings per share (“EPS”) is calculated using the two-class method required for participating securities. Undistributed earnings allocated to these participating securities are subtracted from net income in determining net income attributable to common stockholders. Net losses, if any, are not allocated to these participating securities. Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. For the calculation of diluted EPS, net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities, including awards under stock-based payment arrangements. Diluted EPS attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding during the period. The following tables reconcile the numerator and denominator used in the calculation of basic and diluted EPS for the three and nine months ended September 30, 2016 and 2015 (in thousands except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator Net income attributable to AAC Holdings, Inc. $ (2,525 ) $ 2,452 $ (1,067 ) $ 10,726 Less: Series A Preferred Unit dividends — — — (147 ) Less: Redemption of BHR Series A Preferred Units — — — (534 ) Net income attributable to common shares $ (2,525 ) $ 2,452 $ (1,067 ) $ 10,045 Denominator Weighted-average common shares outstanding – basic 22,957,834 21,922,374 22,607,194 21,471,063 Dilutive securities — 108,759 — 180,591 Weighted-average common shares outstanding – diluted 22,957,834 22,031,133 22,607,194 21,651,654 Basic earnings per common share $ (0.11 ) $ 0.11 $ (0.05 ) $ 0.47 Diluted earnings per common share $ (0.11 ) $ 0.11 $ (0.05 ) $ 0.46

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Acquisitions	6. Acquisitions On April 1, 2016, the Company acquired certain assets of Wetsman Forensic Medicine, L.L.C. (d/b/a Townsend) and its affiliates (“Townsend”), a substance abuse treatment provider in Louisiana that operated seven in-network outpatient centers delivering intensive outpatient treatment as well as a 32-bed in-network facility located in Scott, Louisiana, of which 20 beds are licensed for detoxification and inpatient treatment, and an in-network lab that services these facilities (the “Townsend Acquisition”), for total consideration of $13.5 million in cash and 447,369 in restricted shares of AAC Holdings’ common stock. The purchase agreement includes provisions for contingent consideration of up to $2.0 million, consisting of cash and shares of AAC Holdings’ common stock currently held in escrow, if certain financial targets for the year ending December 31, 2016 are met. Based on the preliminary assessment, the Company recorded the full $2.0 million of contingent consideration as part of the purchase price, which is dependent on completion of valuations being performed by independent valuation specialists. The purchase price was based upon arms-length negotiations between the Company and Townsend, an unrelated third party, that resulted in a premium to the fair value of the net assets acquired and, correspondingly, the recognition of goodwill. The amount recorded for goodwill is consistent with the Company’s intentions for the acquisition and is deductible for income tax purposes. On May 3, 2016, the Company acquired certain assets of Solutions Recovery, Inc., its affiliates and associated real estate assets (collectively, “Solutions”) for total consideration of $6.8 million in cash and 309,871 of restricted shares of AAC Holdings’ common stock (the “Solutions Acquisition”). Solutions provides detoxification, residential and intensive outpatient treatment as well as sober living services in the greater Las Vegas, Nevada area. The purchase price was based upon arms-length negotiations between the Company and Solutions, an unrelated third party, that resulted in a premium to the fair value of the net assets acquired and, correspondingly, the recognition of goodwill. The amount recorded for goodwill is consistent with the Company’s intentions for the acquisition and is deductible for income tax purposes. Each of these acquisitions was accounted for as a business combination in accordance with FASB ASC 805, Business Combinations . The Company recorded each transaction based upon the fair value of the consideration paid. This consideration was preliminarily allocated to the assets acquired and liabilities assumed at the corresponding acquisition dates, based on their fair values. The Company is further assessing the valuation of receivables, assumed liabilities, real property, intangible assets, and contingent consideration, some of which are dependent on the completion of valuations being performed by independent valuation specialists. The preliminary allocation of assets acquired and liabilities assumed at the corresponding acquisition dates, based on their fair values are as follows (in thousands): Townsend Solutions Total Accounts receivable $ 1,149 $ 680 $ 1,829 Property and equipment 872 5,220 6,092 Goodwill 19,755 6,130 25,885 Intangible assets 1,200 1,228 2,428 Total Assets acquired 22,976 13,258 36,234 Accrued liabilities 364 190 554 Net assets acquired $ 22,612 $ 13,068 $ 35,680 Acquisition-related costs for the acquisitions were expensed in acquisition-related expenses in the consolidated statements of operations. The results of operations for the acquired entities from the respective acquisition dates are included in the condensed consolidated statements of operations for both the three and nine months ended September 30, 2016, and include revenues of $5.2 million and $10.4 million, respectively. The following presents the unaudited pro forma revenues and income before taxes of the combined entity had the acquisitions occurred on the first day of the period presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Total revenues $ 70,528 $ 62,823 $ 215,368 $ 168,692 (Loss) income before income tax expense $ (4,769 ) $ 2,386 $ (3,082 ) $ 13,873

Accounts Receivable and Allowan

Accounts Receivable and Allowance for Doubtful Accounts	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Accounts Receivable and Allowance for Doubtful Accounts	7. A summary of activity in the Company’s allowance for doubtful accounts is as follows (in thousands): Balance at December 31, 2015 $ 16,877 Additions charged to provision for doubtful accounts 15,220 Accounts written off, net of recoveries (7,574 ) Balance at September 30, 2016 $ 24,523 For the nine months ended September 30, 2016, approximately 11.0% of the Company’s revenues were reimbursed by Anthem Blue Cross Blue Shield of Colorado; 10.7% by Blue Cross Blue Shield of Texas; 10.3% by Aetna; and 10.3% by Blue Cross Blue Shield of Florida. No other payor accounted for more than 10% of revenue reimbursements for the nine months ended September 30, 2016. For the nine months ended September 30, 2015, approximately 15.9% of the Company’s revenues were reimbursed by Anthem Blue Cross Blue Shield of Colorado; 13.2% by Blue Cross Blue Shield of Texas; 11.4% by Blue Cross Blue Shield of California

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2016
Property Plant And Equipment [Abstract]
Property and Equipment, net	8. Property and Equipment, net Property and equipment consisted of the following (in thousands): September 30, December 31, 2016 2015 Land $ 14,519 $ 13,380 Buildings and improvements 101,401 77,412 Equipment and software 24,056 16,149 Construction in progress 21,958 17,424 Total property and equipment 161,934 124,365 Less accumulated depreciation (25,763 ) (14,641 ) Property and equipment, net $ 136,171 $ 109,724

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	9. Goodwill and Intangible Assets The Company’s business comprises a single reporting segment for impairment test purposes. Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired. Goodwill and intangible assets with indefinite lives are not amortized but instead are tested for impairment at least annually or whenever events or changes in circumstances indicate the carrying value may not be recoverable. If the carrying value of goodwill exceeds its implied fair value, an impairment loss is recorded. The Company has no intangible assets with indefinite useful lives other than goodwill. The Company’s goodwill balances as of September 30, 2016 and December 31, 2015 were $134.7 million and $108.7 million, respectively. The increase in goodwill is primarily the result of the acquisitions of Townsend and Solutions as discussed in Note 6, as well as adjustments to the preliminary allocation of consideration to assets acquired and liabilities assumed. Balance at December 31, 2015 $ 108,722 Townsend Acquisition 19,755 Solutions Acquisition 6,130 Oxford Acquisition 67 Balance at September 30, 2016 $ 134,674 Other identifiable intangible assets and related accumulated amortization consisted of the following as of September 30, 2016 and December 31, 2015 (in thousands): Gross Carrying Value Accumulated Amortization September 30, December 31, September 30, December 31, 2016 2015 2016 2015 Trademarks 5,322 $ 4,052 1,321 $ 955 Non-compete agreements 1,587 1,257 1,059 838 Marketing intangibles 5,651 5,651 778 355 Leasehold interests 1,498 670 159 34 Other 51 51 33 29 $ 14,109 $ 11,681 $ 3,350 $ 2,211 Changes to the carrying value of identifiable assets during the year ended December 31, 2015 were as follows (in thousands): Balance at December 31, 2015 $ 9,470 Amortization expense (1,139 ) Townsend Acquisition 1,200 Solutions Acquisition 1,228 Balance at September 30, 2016 $ 10,759

Debt

Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Debt	10 . Debt A summary of the Company’s debt obligations, net of unamortized discounts and debt issuance costs, is as follows (in thousands): September 30, December 31, 2016 2015 Non-related party debt: Senior secured loans, net of issuance costs $ 138,804 $ 118,936 Subordinated debt 48,894 24,240 Capital lease obligations 1,728 770 Total non-related party debt 189,426 143,946 Less current portion (8,617 ) (3,611 ) Total non-related party debt, long-term $ 180,809 $ 140,335 Related party debt: Acquisition related debt $ — $ 1,195 Less current portion — (1,195 ) Total related party debt, long-term $ — $ — 2015 Credit Facility On March 9, 2015, the Company entered into a five year senior secured credit facility (the “2015 Credit Facility”) with Bank of America, N.A., as administrative agent for the lenders party thereto. The 2015 Credit Facility initially consisted of a $50.0 million revolver and a $75.0 million term loan. The Company incurred approximately $2.0 million in debt issuance costs related to underwriting and other professional fees, of which approximately $1.1 million related to the revolver and approximately $0.9 million related to the term loan. The Company deferred these costs over the term of the 2015 Credit Facility. On July 13, 2016, the Company increased its 2015 Credit Facility to $171.3 million, consisting of a $50.0 million revolving credit facility and a $121.3 million term loan. The facility is scheduled to mature in March 2020 and bears interest at LIBOR plus a margin between 2.25% to 3.25% or a base rate plus a margin between 1.25% and 2.25%, in each case depending on the Company’s leverage ratio. The facility has an accordion feature that provides for an additional $75.0 million of borrowing capacity under the credit facility, subject to certain consents and conditions, including obtaining additional commitments from lenders. The 2015 Credit Facility requires quarterly term loan principal repayments for the outstanding term loan of $1.6 million at December 31, 2016, $2.3 million for March 31, 2017 to December 31, 2017, $3.9 million from March 31, 2018 to December 31, 2018, and $4.7 million from March 31, 2019 to December 31, 2019, with the remaining principal balance of the term loan due on the maturity date of March 9, 2020. Repayment of the revolving loan is due on the maturity date of March 9, 2020. The 2015 Credit Facility generally requires quarterly interest payments. Borrowings under the 2015 Credit Facility are guaranteed by the Company and each of its subsidiaries and are secured by a lien on substantially all of the Company’s and its subsidiaries’ assets. Borrowings under the 2015 Credit Facility bear interest at a rate tied to the Company’s Consolidated Total Leverage Ratio (defined as Consolidated Funded Indebtedness to Consolidated EBITDA, in each case as defined in the credit agreement). Eurodollar Rate Loans with respect to the 2015 Credit Facility bear interest at the Applicable Rate plus the Eurodollar Rate (each as defined in the credit agreement) (based upon the LIBOR Rate (as defined in the credit agreement) prior to commencement of the interest rate period). Base Rate Loans with respect to the 2015 Credit Facility bear interest at the Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.0% (the interest rate at September 30, 2016 was 3.88%). In addition, the Company is required to pay a commitment fee on undrawn amounts under the 2015 Credit Facility of 0.35% to 0.50% depending on the Company’s Consolidated Total Leverage Ratio (the commitment fee rate at September 30, 2016 was 0.50%). The Applicable Rates and the unused commitment fees of the 2015 Credit Facility are based upon the following tiers: Pricing Tier Consolidated Total Leverage Ratio Eurodollar Rate Loans Base Rate Loans Commitment Fee 1 > 3.25 % 2.25 % 0.50 % 2 > 3.00 % 2.00 % 0.45 % 3 > 2.75 % 1.75 % 0.40 % 4 > 2.50 % 1.50 % 0.35 % 5 < 2.00:1.00 2.25 % 1.25 % 0.35 % The 2015 Credit Facility requires the Company to comply with customary affirmative, negative and financial covenants, including a Consolidated Fixed Charge Coverage Ratio, Consolidated Total Leverage Ratio and a Consolidated Senior Secured Leverage Ratio (each as defined in the credit agreement). The Company may be required to pay all of its indebtedness immediately if the Company defaults on any of the financial or other restrictive covenants contained in the 2015 Credit Facility. The financial covenants include maintenance of the following: • Fixed Charge Coverage Ratio may not be less than 1.50:1.00 as of the end of any fiscal quarter. • Consolidated Total Leverage Ratio: may not be greater than the following levels as of the end of each fiscal quarter: Measurement Period Ending Maximum Consolidated Total Leverage Ratio September 30, 2016 4.25:1.00 December 31, 2016 4.25:1.00 March 31, 2017 and each fiscal quarter thereafter 4.00:1.00 • Consolidated Senior Secured Leverage Ratio may not be greater than the following levels as of the end of each fiscal quarter: Measurement Period Ending Maximum Consolidated Senior Secured Leverage Ratio September 30, 2016 3.75:1.00 December 31, 2016 3.75:1.00 March 31, 2017 and each fiscal quarter thereafter 3.50:1.00 As of September 30, 2016, the Company was in compliance with all applicable covenants. The Company incurred approximately $1.4 million in initial debt issuance costs related to underwriting and other professional fees and deferred these costs over the term of the 2015 Credit Facility. In the third quarter of 2015, the Company incurred an additional $0.5 million of issuance costs payable to its creditors and deferred these costs over the remaining term of the 2015 Credit Facility. As of September 30, 2016, our total borrowings under the $50.0 million revolver portion of the 2015 Credit Facility were $20.0 million and $2.7 million in standby letters of credit issued for various corporate purposes resulting in $27.3 million available to the Company. 2015 Subordinated Debt On October 2, 2015, the Company entered into two financing facilities with affiliates of Deerfield Management Company, L.P. (“Deerfield”). The financing facilities consist of $25.0 million of subordinated convertible debt and up to $25.0 million of unsecured subordinated debt, together with an incremental facility of up to an additional $50.0 million of subordinated convertible debt (subject to certain conditions) (the “Deerfield Facility”). The Company issued $25.0 million of subordinated convertible debt at closing and used the proceeds to fund acquisitions, its de novo projects and for general corporate purposes. The $25.0 million of subordinated convertible debt bears interest at an annual rate of 2.50% and matures on September 30, 2021. The $25.0 million of subordinated convertible debt funded at closing is convertible into shares of the Company’s common stock at $30.00 per share. In the second quarter of 2016, the Company issued $25.0 million of the unsecured subordinated debt and used the proceeds to fund the acquisitions of Townsend, the hotel in Arlington, Texas and Solutions. The unsecured subordinated debt bears interest at an annual rate of 12.0% and matures on October 2, 2020. The Company incurred approximately $1.4 million in debt issuance costs related to underwriting and other professional fees and deferred these costs over the term of the debt. As of September 30, 2016, both the $25.0 million of subordinated convertible debt, bearing interest at 2.5%, and the $25.0 million of unsecured subordinated debt, bearing interest at 12.0%, were outstanding. Acquisition Related Debt At December 31, 2015, the Company had outstanding notes payables of $1.2 million resulting from the seller financing of the acquisition of certain assets of AJG Solutions and its subsidiaries and the equity of B&B Holdings INTL LLC (collectively, the “TSN Acquisition”). On February 29, 2016, the Company paid in full the outstanding balance, including principal of $1.2 million and accrued interest of $0.2 million. Interest Rate Swap Agreements In July 2014, the Company entered into two interest rate swap agreements to mitigate its exposure to fluctuations in interest rates. As of September 30, 2016, the interest rate swap agreements had notional amounts of $11.0 million and $7.5 million and interest rates of 4.73% and 4.21%, respectively. The notional amounts of the swap agreements represent amounts used to calculate the exchange of cash flows and are not the Company’s assets or liabilities. The interest payments under these agreements are settled on a net basis. The Company has not designated the interest rate swaps as cash flow hedges, and therefore, the changes in the fair value of the interest rate swaps are included within interest expense in the condensed consolidated statements of operations. The fair value of the interest rate swaps at September 30, 2016 and December 31, 2015 represented a liability of $513,000 and $464,000, respectively, and is reflected in other long-term liabilities on the condensed consolidated balance sheets. Refer to Note 13 for further discussion of fair value of the interest rate swap agreements. The Company’s credit risk related to these agreements is considered low because the swap agreements are with a creditworthy financial institution. The following table sets forth our interest rate swap agreements at September 30, 2016 (dollars in thousands): Notional Maturity Fair Amount Date Value Pay-fixed interest rate swap $ 7,498 May 2018 $ (114 ) Pay-fixed interest rate swap 10,971 August 2019 (399 ) Total $ 18,469 $ (513 )

Stockholders' Equity and Mezzan

Stockholders' Equity and Mezzanine Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stockholders' Equity and Mezzanine Equity	11. Stockholders’ Equity and Mezzanine Stock Based Compensation Plans On January 13, 2016, the Company granted 110,000 shares of restricted common stock to employees pursuant to the Company’s 2014 Equity Incentive Plan (the “Plan”). The shares vest quarterly over a period of three years. Additionally, on January 13, 2016, the Company granted an aggregate 30,000 shares of fully vested common stock . The Company recognized $2.1 million and $1.3 million in equity-based compensation expense for the three months ended September 30, 2016 and 2015, respectively, and $6.8 million and $4.1 million in equity-based compensation expense for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016, there was $14.1 million of unrecognized compensation expense related to unvested restricted stock, which is expected to be recognized over the remaining weighted average vesting period of 2.0 years. A summary of share activity under the Plan is set forth below: Weighted- average Grant Shares Date Fair Value Unvested at January 1, 2016 777,019 $ 24.99 Granted 140,000 16.24 Vested (252,427 ) 16.64 Forfeitures (20,167 ) 19.69 Unvested at September 30, 2016 644,425 $ 23.20 Employee Stock Purchase Plan In January 2016 and July 2016, the Company issued 15,445 and 28,729 shares of the Company’s common stock under its Employee Stock Purchase Plan (“ESPP”), respectively, at a purchase price of $19.06 and $18.52 per share, respectively, in connection with employee deductions of $0.2 million contributed in the July 1, 2015 through December 31, 2015 ESPP option period and $0.4 million contributed in the January 1, 2016 through June 30, 2016 ESPP option period. For the three and nine months ended September 30, 2016, the Company recognized $0.1 million and $0.3 million of compensation expense related to the ESPP during each period, respectively. For the three and nine months ended September 30, 2015, the Company recognized $45,000 and $0.2 million, respectively, of compensation expense related to the ESPP. Mezzanine Equity On February 25, 2015, the Company exercised its call provision and redeemed 100% of the outstanding Series A Preferred Units of Behavioral Healthcare Realty, LLC for a total redemption price of approximately $8.5 million, which included $0.2 million for the 3.0% call premium and $0.3 million for unpaid preferred returns.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The provision for income taxes for the three and nine months ended September 30, 2016 reflects an income tax benefit of $0.8 million and $0.9 million at an effective tax rate of 15.9% and 16.6%, respectively, compared to income tax expense for the three and nine months ended September 30, 2015 of $0.6 million and $5.0 million, respectively, at an effective rate of 27.0% and 35.8%, respectively. The change in effective tax rate is primarily due to the effect of permanent tax differences when compared to pre-tax book income as well as discrete items pertaining to stock compensation and other tax credits. The Internal Revenue Service is currently conducting a routine examination of the Company’s 2013 tax return. The results of such examination and impact on the Company’s results of operation are not known at this time.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	13. Fair Value of Financial Instruments The carrying amounts reported at September 30, 2016 and December 31, 2015 for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities approximate fair value because of the short-term maturity of these instruments and are categorized as Level 1 within the GAAP fair value hierarchy. The Company has debt with variable and fixed interest rates. The fair value of debt with fixed interest rates was determined using the quoted market prices of debt instruments with similar terms and maturities, which are considered Level 2 inputs. The fair value of debt with variable interest rates was also measured using Level 2 inputs, including good faith estimates of the market value for the particular debt instrument, which represent the amount an independent market participant would provide based upon market observations and other factors relevant under the circumstances. The carrying value of such debt approximated its estimated fair value at September 30, 2016 and December 31, 2015. The Company has entered into interest rate swap agreements to manage exposure to fluctuations in interest rates. Fair value of the interest rate swaps is determined using a pricing model based on published interest rates and other observable market data. The fair value was determined after considering the potential impact of collateralization, adjusted to reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk. The fair value measurement of interest rate swaps utilizes Level 2 inputs. At September 30, 2016, the fair value of the interest rate swaps represented a liability of $0.5 million. Refer to Note 10 for further discussion of the interest rate swap agreements.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies State of California On October 21, 2016, American Addiction Centers, Inc. (formerly known as Forterus, Inc.), Forterus Health Care Services, Inc., and ABTTC, Inc. (collectively, the “Defendants,” each of which is a direct or indirect subsidiary of AAC Holdings) agreed to the entry of a Permanent Injunction and Final Judgment (the “PIFJ”) with the Bureau of Medi-Cal Fraud and Elder Abuse of the Office of the Attorney General of the State of California (“BMFEA”) relating to the criminal charges filed against the Defendants in connection with the death of a client in 2010 at one of the Company’s former locations. The PIFJ generally provides, among other things and subject to certain limitations, that the State of California (i) dismiss all criminal charges against the Defendants in connection with the case entitled People v. McCausland, et al. Pursuant to the terms of the PIFJ, among other things and subject to certain limitations, Defendants shall (i) institute a three-year compliance program (the “Compliance Program”) with respect its California facilities that includes, to the extent not already established, that certain policies and procedures are maintained or developed and implemented to promote each covered facility’s compliance with applicable statutes, regulations and the PIFJ, under the responsibility of AAC Holdings’ Chief Compliance Officer; (ii) establish a Compliance Committee composed of the Compliance Officer and senior personnel responsible for overseeing clinical operations to address issues raised by the Compliance Officer in connection with the Compliance Program and (iii) establish an oversight committee of its board of directors (the “Board”), or a committee of the Board, to review the adequacy and responsiveness of the Compliance Program. In addition, for a period of 30 months following the effective date of the PIFJ, the Defendants shall retain a qualified independent monitor, appointed by BMFEA after consultation with the Defendants, to assess the effectiveness of the Defendants’ quality control systems and patient care. The PIFJ also provides that the Defendants will pay $549,986 toward the costs of the investigation and $200,000 as a civil monetary penalty, the total of which was accrued at September 30, 2016 and is included in litigation settlement on the statement of operations for the three months ended September 30, 2016. Subsequent to September 30, 2016, these amounts were paid in full. With respect to the individual defendants, the California Attorney General’s office elected not to re-try Kristopher McCausland, and all criminal charges against Mr. McCausland were dismissed. All felony charges were also dismissed against Jerrod Menz and James Fent, and their criminal cases were resolved pursuant to their agreements not to contest misdemeanor charges, which will ultimately be eligible for dismissal upon their satisfying certain conditions required by the court. Shareholder Litigation On August 24, 2015, a shareholder filed a purported class action in the United States District Court for the Middle District of Tennessee against the Company and certain of its current and former officers ( Kasper v. AAC Holdings, Inc. et al. and Tenzyk c. AAC Holdings, Inc. et al.) consolidating these two described actions into one action. On April 14, 2016, the Company and the individual defendants filed a motion to dismiss the complaint for failure to state a claim. On July 1, 2016, the court denied the motion to dismiss. In a related matter, on November 28, 2015, a shareholder filed a derivative action on behalf of AAC Holdings, Inc. in the Eighth Judicial District Court for Clark County, Nevada ( Bushansky v. Jerrod N. Menz et al.) against AAC’s board of directors and certain of its officers alleging that these directors and officers breached their fiduciary duties and engaged in mismanagement and illegal conduct. On January 19, 2016, the Court entered an Order staying this litigation pending the earlier of the close of discovery in the related securities class action pending in Tennessee or the deadline for appealing any dismissal of the securities class action. The Company intends to defend these actions vigorously. At this time, the Company cannot predict the results of litigation with certainty and cannot estimate the amount or range of loss, if any. Other The New Jersey Department of Banking and Insurance (“NJ-DOBI”) and Leading Edge Recovery Center, LLC (“Leading Edge”), a former indirect operating subsidiary of American Addiction Centers, Inc. that was acquired in September 2012 and was subsequently closed in 2013, are negotiating a possible resolution to certain information provided to NJ-DOBI following Leading Edge’s recent claim settlement with Horizon Blue Cross Blue Shield of New Jersey. Based on these discussions, the Company has recorded an aggregate $350,000

Basis of Presentation and Rec22

Basis of Presentation and Recently Issued Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Recent Pronouncements	Recent Pronouncements In August 2016 the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). Among other clarifications, ASU 2016-15 clarifies the classification of payments for debt prepayment or debt extinguishment costs, including third-party costs, premiums paid, and other fees paid to lenders that are directly related to the debt prepayment or debt extinguishment, excluding accrued interest, which will now be included in the Financing Activities section in the Statements of Cash Flows. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s results of operations. In March 2016, the FASB issued ASU No. 2016-09, “Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 requires that all excess tax benefits and tax deficiencies resulting from share-based payments be recognized as income tax expense or benefit in the income statement, which eliminates the accounting for additional paid-in capital pools. ASU 2016-09 also allows companies to make an entity-wide policy election to either estimate the number of stock-based awards that are expected to vest or account for forfeitures as they occur. With regards to the Statement of Cash Flows, both inflows and outflows of cash related to excess tax benefits will be classified as operating activities, whereas prior to this update, excess tax benefits as cash inflows were to be classified as financing activities. Also, cash paid by an employer when directly withholding shares for tax-withholding purposes (“net share settlement”) will now be classified as a financing activity. The new standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The adoption of ASU 2016-09 is not expected to have a material impact on the Company’s results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact that adoption of ASU 2016-02 will have on its consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust its financial statements for changes to provisional amounts that are identified during the measurement-period following the consummation of a business combination. Instead, ASU 2015-16 requires these types of adjustments to be made during the reporting period in which they are identified and would require additional disclosure or separate presentation of the portion of the adjustment that would have been recorded in the previously reported periods as if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those years, with earlier application permitted for financial statements that have not been issued. The adoption of ASU 2015-16 did not have a material impact on the Company’s results of operations. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software.” The update was effective for financial statements issued for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, with early adoption permitted. ASU 2015-05 provides guidance for customer’s accounting for fees paid in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. An entity can elect to adopt the amendments either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The adoption of ASU 2015-05 on January 1, 2016 did not have a material impact on the Company’s condensed consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board issued ASU 2014-09, “Revenue from Contracts with Customers”, which outlines a single comprehensive model for recognizing revenue and supercedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. Companies across all industries will use a new five-step model to recognize revenue from customer contracts. The new standard, which replaces nearly all existing GAAP and International Financial Reporting Standards revenue recognition guidance, will require significant management judgment in addition to changing the way many companies recognize revenue in their financial statements. The standard is effective for public entities for annual and interim periods beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of this standard will have on its revenue recognition policies and procedures, financial position, result of operations, cash flows, financial disclosures and control framework.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Earnings Per Share	The following tables reconcile the numerator and denominator used in the calculation of basic and diluted EPS for the three and nine months ended September 30, 2016 and 2015 (in thousands except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator Net income attributable to AAC Holdings, Inc. $ (2,525 ) $ 2,452 $ (1,067 ) $ 10,726 Less: Series A Preferred Unit dividends — — — (147 ) Less: Redemption of BHR Series A Preferred Units — — — (534 ) Net income attributable to common shares $ (2,525 ) $ 2,452 $ (1,067 ) $ 10,045 Denominator Weighted-average common shares outstanding – basic 22,957,834 21,922,374 22,607,194 21,471,063 Dilutive securities — 108,759 — 180,591 Weighted-average common shares outstanding – diluted 22,957,834 22,031,133 22,607,194 21,651,654 Basic earnings per common share $ (0.11 ) $ 0.11 $ (0.05 ) $ 0.47 Diluted earnings per common share $ (0.11 ) $ 0.11 $ (0.05 ) $ 0.46

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2016
Business Acquisition [Line Items]
Schedule of Revenues and Income Before Income Taxes	The following presents the unaudited pro forma revenues and income before taxes of the combined entity had the acquisitions occurred on the first day of the period presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Total revenues $ 70,528 $ 62,823 $ 215,368 $ 168,692 (Loss) income before income tax expense $ (4,769 ) $ 2,386 $ (3,082 ) $ 13,873
Acquired Entities
Business Acquisition [Line Items]
Schedule of Assets Acquired and Liabilities Assumed at Acquisition Date	This consideration was preliminarily allocated to the assets acquired and liabilities assumed at the corresponding acquisition dates, based on their fair values. The Company is further assessing the valuation of receivables, assumed liabilities, real property, intangible assets, and contingent consideration, some of which are dependent on the completion of valuations being performed by independent valuation specialists. The preliminary allocation of assets acquired and liabilities assumed at the corresponding acquisition dates, based on their fair values are as follows (in thousands): Townsend Solutions Total Accounts receivable $ 1,149 $ 680 $ 1,829 Property and equipment 872 5,220 6,092 Goodwill 19,755 6,130 25,885 Intangible assets 1,200 1,228 2,428 Total Assets acquired 22,976 13,258 36,234 Accrued liabilities 364 190 554 Net assets acquired $ 22,612 $ 13,068 $ 35,680

Accounts Receivable and Allow25

Accounts Receivable and Allowance for Doubtful Accounts (Tables)	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
Summary of Allowance for Doubtful Accounts	A summary of activity in the Company’s allowance for doubtful accounts is as follows (in thousands): Balance at December 31, 2015 $ 16,877 Additions charged to provision for doubtful accounts 15,220 Accounts written off, net of recoveries (7,574 ) Balance at September 30, 2016 $ 24,523

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2016
Property Plant And Equipment [Abstract]
Components of Property and Equipment	Property and equipment consisted of the following (in thousands): September 30, December 31, 2016 2015 Land $ 14,519 $ 13,380 Buildings and improvements 101,401 77,412 Equipment and software 24,056 16,149 Construction in progress 21,958 17,424 Total property and equipment 161,934 124,365 Less accumulated depreciation (25,763 ) (14,641 ) Property and equipment, net $ 136,171 $ 109,724

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The increase in goodwill is primarily the result of the acquisitions of Townsend and Solutions as discussed in Note 6, as well as adjustments to the preliminary allocation of consideration to assets acquired and liabilities assumed. Balance at December 31, 2015 $ 108,722 Townsend Acquisition 19,755 Solutions Acquisition 6,130 Oxford Acquisition 67 Balance at September 30, 2016 $ 134,674
Components of Other Identifiable Intangible Assets	Other identifiable intangible assets and related accumulated amortization consisted of the following as of September 30, 2016 and December 31, 2015 (in thousands): Gross Carrying Value Accumulated Amortization September 30, December 31, September 30, December 31, 2016 2015 2016 2015 Trademarks 5,322 $ 4,052 1,321 $ 955 Non-compete agreements 1,587 1,257 1,059 838 Marketing intangibles 5,651 5,651 778 355 Leasehold interests 1,498 670 159 34 Other 51 51 33 29 $ 14,109 $ 11,681 $ 3,350 $ 2,211
Summary of Changes to Carrying Value of Identifiable Intangible Assets	Changes to the carrying value of identifiable assets during the year ended December 31, 2015 were as follows (in thousands): Balance at December 31, 2015 $ 9,470 Amortization expense (1,139 ) Townsend Acquisition 1,200 Solutions Acquisition 1,228 Balance at September 30, 2016 $ 10,759

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Summary of Debt Obligations, Net of Unamortized Discounts And Debt Issuance Costs	A summary of the Company’s debt obligations, net of unamortized discounts and debt issuance costs, is as follows (in thousands): September 30, December 31, 2016 2015 Non-related party debt: Senior secured loans, net of issuance costs $ 138,804 $ 118,936 Subordinated debt 48,894 24,240 Capital lease obligations 1,728 770 Total non-related party debt 189,426 143,946 Less current portion (8,617 ) (3,611 ) Total non-related party debt, long-term $ 180,809 $ 140,335 Related party debt: Acquisition related debt $ — $ 1,195 Less current portion — (1,195 ) Total related party debt, long-term $ — $ —
Schedule of Applicable Rates and Unused Commitment Fees	The Applicable Rates and the unused commitment fees of the 2015 Credit Facility are based upon the following tiers Pricing Tier Consolidated Total Leverage Ratio Eurodollar Rate Loans Base Rate Loans Commitment Fee 1 > 3.25 % 2.25 % 0.50 % 2 > 3.00 % 2.00 % 0.45 % 3 > 2.75 % 1.75 % 0.40 % 4 > 2.50 % 1.50 % 0.35 % 5 < 2.00:1.00 2.25 % 1.25 % 0.35 %
Schedule of Consolidated Total Leverage Ratio	• Consolidated Total Leverage Ratio: may not be greater than the following levels as of the end of each fiscal quarter: Measurement Period Ending Maximum Consolidated Total Leverage Ratio September 30, 2016 4.25:1.00 December 31, 2016 4.25:1.00 March 31, 2017 and each fiscal quarter thereafter 4.00:1.00
Schedule of Consolidated Senior Secured Leverage Ratio	• Consolidated Senior Secured Leverage Ratio may not be greater than the following levels as of the end of each fiscal quarter: Measurement Period Ending Maximum Consolidated Senior Secured Leverage Ratio September 30, 2016 3.75:1.00 December 31, 2016 3.75:1.00 March 31, 2017 and each fiscal quarter thereafter 3.50:1.00
Schedule of Interest Rate Swap Agreements	The following table sets forth our interest rate swap agreements at September 30, 2016 (dollars in thousands): Notional Maturity Fair Amount Date Value Pay-fixed interest rate swap $ 7,498 May 2018 $ (114 ) Pay-fixed interest rate swap 10,971 August 2019 (399 ) Total $ 18,469 $ (513 )

Stockholders' Equity and Mezz29

Stockholders' Equity and Mezzanine Equity (Tables)	9 Months Ended
	Sep. 30, 2016
2014 Equity Incentive Plan
Summary of Share Activity	A summary of share activity under the Plan is set forth below: Weighted- average Grant Shares Date Fair Value Unvested at January 1, 2016 777,019 $ 24.99 Granted 140,000 16.24 Vested (252,427 ) 16.64 Forfeitures (20,167 ) 19.69 Unvested at September 30, 2016 644,425 $ 23.20

Description of Business - Addit

Description of Business - Additional Information (Details)	Sep. 30, 2016FacilityCenter
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of operating facilities | Facility	12
Number of standalone outpatient centers | Center	18

Basis of Presentation and Rec31

Basis of Presentation and Recently Issued Accounting Pronouncements - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)ProfessionalGroup	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)ProfessionalGroup	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Business And Basis Of Presentation [Line Items]
Assets	$ 380,342		$ 380,342		$ 316,049
Liabilities	225,339		225,339		179,561
Net loss attributable to noncontrolling interest	$ 1,486	$ 708	$ 3,371	$ 1,747
VIEs
Business And Basis Of Presentation [Line Items]
Number of professional groups | ProfessionalGroup	7		7
Assets	$ 1,300		$ 1,300		1,400
Liabilities	1,000		1,000		$ 600
Net loss attributable to noncontrolling interest	$ 1,500	$ 700	$ 3,400	$ 1,700

Other Revenue - Additional Info

Other Revenue - Additional Information (Details)	9 Months Ended
	Sep. 30, 2016
Referral Solutions Group LLC
Revenues
Business acquisition, effective date of acquisition	Jul. 2, 2015

General and Administrative Co33

General and Administrative Costs - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
General And Administrative Costs [Abstract]
General and administrative expense	$ 20.7	$ 13.4	$ 55.8	$ 32.6

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 25, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator
Net income attributable to AAC Holdings, Inc.		$ (2,525)	$ 2,452	$ (1,067)	$ 10,726
Net (loss) income available to AAC Holdings, Inc. common stockholders		$ (2,525)	$ 2,452	$ (1,067)	$ 10,045
Denominator
Weighted-average common shares outstanding – basic		22,957,834	21,922,374	22,607,194	21,471,063
Dilutive securities			108,759		180,591
Weighted-average common shares outstanding – diluted		22,957,834	22,031,133	22,607,194	21,651,654
Basic earnings per common share		$ (0.11)	$ 0.11	$ (0.05)	$ 0.47
Diluted earnings per common share		$ (0.11)	$ 0.11	$ (0.05)	$ 0.46
Series A Preferred Stock
Numerator
Redemption of BHR Series A Preferred Units	$ (200)
BHR | Series A Preferred Stock
Numerator
BHR Series A Preferred Unit dividends					$ (147)
Redemption of BHR Series A Preferred Units					$ (534)

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) $ in Thousands	May 03, 2016USD ($)shares	Apr. 02, 2016USD ($)CenterBedsshares	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Business Acquisition [Line Items]
Revenue			$ 70,528	$ 57,372	$ 207,418	$ 153,979
Townsend Acquisition
Business Acquisition [Line Items]
Business acquisition cash paid		$ 13,500
Common stock issued in connection with business combination, shares restricted | shares		447,369
Number of bed treatment facility | Beds		32
Number of intensive outpatient programs | Center		7
Number of beds licensed in detoxification, inpatient treatment and in-network lab | Beds		20
Provisions for contingent consideration		$ 2,000
Contingent consideration purchase price		$ 2,000
Solutions Acquisition
Business Acquisition [Line Items]
Business acquisition cash paid	$ 6,800
Common stock issued in connection with business combination, shares restricted | shares	309,871
Acquired Entities
Business Acquisition [Line Items]
Revenue			$ 5,200		$ 10,400

Acquisitions - Schedule of Asse

Acquisitions - Schedule of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Thousands	Sep. 30, 2016	May 03, 2016	Apr. 02, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill	$ 134,674			$ 108,722
Townsend
Business Acquisition [Line Items]
Accounts receivable			$ 1,149
Property and equipment			872
Goodwill			19,755
Intangible assets			1,200
Total Assets acquired			22,976
Accrued liabilities			364
Net assets acquired			$ 22,612
Solutions
Business Acquisition [Line Items]
Accounts receivable		$ 680
Property and equipment		5,220
Goodwill		6,130
Intangible assets		1,228
Total Assets acquired		13,258
Accrued liabilities		190
Net assets acquired		$ 13,068
Acquired Entities
Business Acquisition [Line Items]
Accounts receivable	1,829
Property and equipment	6,092
Goodwill	25,885
Intangible assets	2,428
Total Assets acquired	36,234
Accrued liabilities	554
Net assets acquired	$ 35,680

Acquisitions - Schedule of Reve

Acquisitions - Schedule of Revenues and Income Before Income Taxes (Details) - Acquired Entities - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Total revenues	$ 70,528	$ 62,823	$ 215,368	$ 168,692
(Loss) income before income tax expense	$ (4,769)	$ 2,386	$ (3,082)	$ 13,873

Accounts Receivable and Allow38

Accounts Receivable and Allowance for Doubtful Accounts - Summary of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Receivables [Abstract]
Balance at December 31, 2015			$ 16,877
Additions charged to provision for doubtful accounts	$ 4,794	$ 5,366	15,220	$ 12,925
Accounts written off, net of recoveries			(7,574)
Balance at September 30, 2016	$ 24,523		$ 24,523

Accounts Receivable and Allow39

Accounts Receivable and Allowance for Doubtful Accounts - Additional Information (Details) - Revenues	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Anthem Blue Cross Blue Shield | COLORADO
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	11.00%	15.90%
Blue Cross Blue Shield | TEXAS
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	10.70%	13.20%
Blue Cross Blue Shield | FLORIDA
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	10.30%
Blue Cross Blue Shield | CALIFORNIA
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed		11.40%
Aetna
Accounts Notes And Loans Receivable [Line Items]
Percentage of revenues reimbursed	10.30%	11.20%

Property and Equipment, net - C

Property and Equipment, net - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Total property and equipment	$ 161,934	$ 124,365
Less accumulated depreciation	(25,763)	(14,641)
Property and equipment, net	136,171	109,724
Land
Property Plant And Equipment [Line Items]
Total property and equipment	14,519	13,380
Building and Building Improvements
Property Plant And Equipment [Line Items]
Total property and equipment	101,401	77,412
Equipment and Software
Property Plant And Equipment [Line Items]
Total property and equipment	24,056	16,149
Construction in progress
Property Plant And Equipment [Line Items]
Total property and equipment	$ 21,958	$ 17,424

Goodwill and Intangible Asset41

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible assets	$ 0
Goodwill impairment charge		$ 0
Goodwill	$ 134,674,000	$ 108,722,000

Goodwill and Intangible Asset42

Goodwill and Intangible Assets - Summary of Increase In Goodwill Related To Acquisition (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Goodwill [Line Items]
Beginning balance	$ 108,722
Ending balance	134,674
Townsend Acquisition
Goodwill [Line Items]
Increase in goodwill acquisition	19,755
Solutions Acquisition
Goodwill [Line Items]
Increase in goodwill acquisition	6,130
Oxford Acquisition
Goodwill [Line Items]
Increase in goodwill acquisition	$ 67

Goodwill and Intangible Asset43

Goodwill and Intangible Assets - Components of Other Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 14,109	$ 11,681
Accumulated Amortization	3,350	2,211
Trademarks
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	5,322	4,052
Accumulated Amortization	1,321	955
Non-compete agreements
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	1,587	1,257
Accumulated Amortization	1,059	838
Marketing Intangibles
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	5,651	5,651
Accumulated Amortization	778	355
Leasehold interests
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	1,498	670
Accumulated Amortization	159	34
Other
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	51	51
Accumulated Amortization	$ 33	$ 29

Goodwill and Intangible Asset44

Goodwill and Intangible Assets - Summary of Changes to Carrying Value of Identifiable Intangible Assets (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Beginning balance	$ 9,470
Amortization expense	(1,139)
Ending balance	10,759
Townsend Acquisition
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Acquisition of intangibles	1,200
Solutions Acquisition
Schedule Of Finite And Indefinite Lived Other Intangible Assets [Line Items]
Acquisition of intangibles	$ 1,228

Debt - Summary of Debt Obligati

Debt - Summary of Debt Obligations, Net of Unamortized Discounts and Debt Issuance Costs (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Line Of Credit Facility [Line Items]
Total non-related party debt	$ 189,426	$ 143,946
Less current portion	(8,617)	(3,611)
Total non-related party debt, long-term	180,809	140,335
Less current portion		(1,195)
Senior Secured Term Loan
Line Of Credit Facility [Line Items]
Long term debt	138,804	118,936
Subordinated Debt
Line Of Credit Facility [Line Items]
Subordinated debt	48,894	24,240
Capital Lease Obligations
Line Of Credit Facility [Line Items]
Long term debt	$ 1,728	770
Acquisition-Related Debt
Line Of Credit Facility [Line Items]
Total related party debt		$ 1,195

Debt - Credit Facility - Additi

Debt - Credit Facility - Additional Information (Details) - 2015 Credit Facility - USD ($)	Jul. 13, 2016	Mar. 09, 2015	Sep. 30, 2016	Sep. 30, 2015
Line Of Credit Facility [Line Items]
Debt instrument, term		5 years
Credit facility borrowing capacity	$ 171,300,000
Debt issuance costs		$ 2,000,000
Repayment of outstanding debt		24,900,000
Revolving line of credit maturity month	2020-03
Maximum borrowing limit	$ 75,000,000
Description of payment of principal installments			The 2015 Credit Facility generally requires quarterly interest payments.
Description of interest rate			Applicable Rate plus the highest of (i) the federal funds rate plus 0.50%, (ii) the prime rate and (iii) the Eurodollar Rate plus 1.0% (the interest rate at September 30, 2016 was 3.88%).
Interest rate at the end of period			3.88%
Commitment fee on undrawn amounts, percentage			0.50%
Debt instrument, covenant compliance			the Company was in compliance with all applicable covenants
Deferred debt issuance costs		$ 1,400,000		$ 500,000
Minimum
Line Of Credit Facility [Line Items]
Commitment fee on undrawn amounts, percentage		0.35%
Fixed charge coverage ratio		1.50%
Maximum
Line Of Credit Facility [Line Items]
Commitment fee on undrawn amounts, percentage		0.50%
London Interbank Offered Rate (LIBOR) | Minimum
Line Of Credit Facility [Line Items]
Interest rate	2.25%
London Interbank Offered Rate (LIBOR) | Maximum
Line Of Credit Facility [Line Items]
Interest rate	3.25%
Base Rate | Minimum
Line Of Credit Facility [Line Items]
Interest rate	1.25%
Base Rate | Maximum
Line Of Credit Facility [Line Items]
Interest rate	2.25%
Revolver
Line Of Credit Facility [Line Items]
Credit facility borrowing capacity	$ 50,000,000	$ 50,000,000	$ 50,000,000
Debt issuance costs		$ 1,100,000
Revolving line of credit maturity date		Mar. 9, 2020
Long-term Line of Credit			20,000,000
Available for borrowings under revolver			27,300,000
Revolver | Standby Letters of Credit
Line Of Credit Facility [Line Items]
Long-term Line of Credit			$ 2,700,000
Term Loan
Line Of Credit Facility [Line Items]
Credit facility borrowing capacity	$ 121,300,000	$ 75,000,000
Debt issuance costs		$ 900,000
Revolving line of credit maturity date		Mar. 9, 2020
Term Loan | December 31, 2016
Line Of Credit Facility [Line Items]
Monthly principal payments		$ 1,600,000
Term Loan | March 31, 2017 to December 31, 2017
Line Of Credit Facility [Line Items]
Monthly principal payments		2,300,000
Term Loan | March 31, 2018 to December 31, 2018
Line Of Credit Facility [Line Items]
Monthly principal payments		3,900,000
Term Loan | March 31, 2019 to December 31, 2019
Line Of Credit Facility [Line Items]
Monthly principal payments		$ 4,700,000
Base Rate Loans | Federal Funds Rate
Line Of Credit Facility [Line Items]
Interest rate		0.50%
Base Rate Loans | Eurodollar Rate
Line Of Credit Facility [Line Items]
Interest rate		1.00%

Debt - Schedule of Applicable R

Debt - Schedule of Applicable Rates and Unused Commitment Fees (Details) - 2015 Credit Facility	Mar. 09, 2015	Sep. 30, 2016
Line Of Credit Facility [Line Items]
Commitment Fee		0.50%
Minimum
Line Of Credit Facility [Line Items]
Commitment Fee	0.35%
Maximum
Line Of Credit Facility [Line Items]
Commitment Fee	0.50%
Pricing Tier 1
Line Of Credit Facility [Line Items]
Commitment Fee	0.50%
Pricing Tier 1 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	3.25%
Pricing Tier 1 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.25%
Pricing Tier 1 | Minimum
Line Of Credit Facility [Line Items]
Leverage Ratio	350.00%
Pricing Tier 2
Line Of Credit Facility [Line Items]
Commitment Fee	0.45%
Pricing Tier 2 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	3.00%
Pricing Tier 2 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.00%
Pricing Tier 2 | Minimum
Line Of Credit Facility [Line Items]
Leverage Ratio	300.00%
Pricing Tier 2 | Maximum
Line Of Credit Facility [Line Items]
Leverage Ratio	350.00%
Pricing Tier 3
Line Of Credit Facility [Line Items]
Commitment Fee	0.40%
Pricing Tier 3 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.75%
Pricing Tier 3 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	1.75%
Pricing Tier 3 | Minimum
Line Of Credit Facility [Line Items]
Leverage Ratio	250.00%
Pricing Tier 3 | Maximum
Line Of Credit Facility [Line Items]
Leverage Ratio	300.00%
Pricing Tier 4
Line Of Credit Facility [Line Items]
Commitment Fee	0.35%
Pricing Tier 4 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.50%
Pricing Tier 4 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	1.50%
Pricing Tier 4 | Minimum
Line Of Credit Facility [Line Items]
Leverage Ratio	200.00%
Pricing Tier 4 | Maximum
Line Of Credit Facility [Line Items]
Leverage Ratio	250.00%
Pricing Tier 5
Line Of Credit Facility [Line Items]
Commitment Fee	0.35%
Pricing Tier 5 | Eurodollar Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	2.25%
Pricing Tier 5 | Base Rate Loans
Line Of Credit Facility [Line Items]
Interest rate	1.25%
Pricing Tier 5 | Maximum
Line Of Credit Facility [Line Items]
Leverage Ratio	200.00%

Debt - Schedule of Consolidated

Debt - Schedule of Consolidated Total Leverage Ratio (Details) - 2015 Credit Facility - Maximum	Mar. 09, 2015
September 30, 2016
Line Of Credit Facility [Line Items]
Leverage Ratio	425.00%
December 31, 2016
Line Of Credit Facility [Line Items]
Leverage Ratio	425.00%
March 31, 2017 and Each Fiscal Quarter Thereafter
Line Of Credit Facility [Line Items]
Leverage Ratio	400.00%

Debt - Schedule of Consolidat49

Debt - Schedule of Consolidated Senior Secured Leverage Ratio (Details) - 2015 Credit Facility - Maximum	Mar. 09, 2015
September 30, 2016
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	375.00%
December 31, 2016
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	375.00%
March 31, 2017 and Each Fiscal Quarter Thereafter
Line Of Credit Facility [Line Items]
Consolidated Senior Secured Leverage Ratio	350.00%

Debt - 2015 Subordinated Debt -

Debt - 2015 Subordinated Debt - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 02, 2015	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Line Of Credit Facility [Line Items]
Proceeds from long-term debt			$ 27,500	$ 73,802
2.50% Subordinated Convertible Debt Maturing September 30, 2021
Line Of Credit Facility [Line Items]
Debt instrument, face amount	$ 25,000
Debt instrument, unused capacity	50,000
Proceeds from long-term debt	$ 25,000
Interest rate	2.50%
Maturity Date	Sep. 30, 2021
Conversion price per share	$ 30
Long term debt			$ 25,000
Debt instrument, interest rate			2.50%
12.0% Unsecured Subordinated Convertible Debt Maturing October 02, 2020
Line Of Credit Facility [Line Items]
Debt instrument, face amount	$ 25,000
Long term debt			$ 25,000
Debt instrument, interest rate			12.00%
12.0% Unsecured Subordinated Convertible Debt Maturing October 02, 2020 | Townsend and Solutions [Member]
Line Of Credit Facility [Line Items]
Debt instrument, face amount		$ 25,000
Interest rate		12.00%
Maturity Date		Oct. 2, 2020
2015 Subordinated Debt Issuance [Member]
Line Of Credit Facility [Line Items]
Deferred debt issuance costs	$ 1,400

Debt - Acquisition Related Debt

Debt - Acquisition Related Debt - Additional Information (Details) - Acquisition-Related Debt - TSN Acquisition - Notes Payable - USD ($) $ in Millions	Feb. 29, 2016	Dec. 31, 2015
Line Of Credit Facility [Line Items]
Amount of subordinated note payable		$ 1.2
Monthly principal payments	$ 1.2
Accrued interest	$ 0.2

Debt - Interest Rate Swap Agree

Debt - Interest Rate Swap Agreements - Additional Information (Details)	1 Months Ended	9 Months Ended
	Jul. 31, 2014Agreement	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Line Of Credit Facility [Line Items]
Number of interest rate swap agreement | Agreement	2
Interest rate swap agreement initial notional amount		$ 18,469,000
Fair value of interest rate swaps, liability		513,000	$ 464,000
Agreement Two
Line Of Credit Facility [Line Items]
Interest rate swap agreement initial notional amount		$ 10,971,000
Interest rate swap agreement percentage		4.73%
Fair value of interest rate swaps, liability		$ 399,000
Agreement One
Line Of Credit Facility [Line Items]
Interest rate swap agreement initial notional amount		$ 7,498,000
Interest rate swap agreement percentage		4.21%
Fair value of interest rate swaps, liability		$ 114,000

Debt - Schedule of Interest Rat

Debt - Schedule of Interest Rate Swap Agreements (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Line Of Credit Facility [Line Items]
Notional Amount	$ 18,469,000
Fair Value	(513,000)	$ (464,000)
Agreement One
Line Of Credit Facility [Line Items]
Notional Amount	$ 7,498,000
Maturity Date	May 31, 2018
Fair Value	$ (114,000)
Agreement Two
Line Of Credit Facility [Line Items]
Notional Amount	$ 10,971,000
Maturity Date	Aug. 31, 2019
Fair Value	$ (399,000)

Stockholders' Equity and Mezz54

Stockholders' Equity and Mezzanine Equity - Additional Information (Details) - USD ($)	Jan. 13, 2016	Feb. 25, 2015	Jul. 31, 2016	Jan. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stockholders Equity And Mezzanine Equity [Line Items]
Compensation expense					$ 2,100,000	$ 1,300,000	$ 6,800,000	$ 4,100,000
Effect of employee stock purchase plan							771,000
Series A Preferred Stock
Stockholders Equity And Mezzanine Equity [Line Items]
Preferred stock redemption percentage		100.00%
Preferred units redeemed, value		$ 8,500,000
Preferred stock redemption call premium amount		$ 200,000
Preferred stock redemption call premium percentage		3.00%
Preferred stock redemption unpaid returns		$ 300,000
Employee Stock Purchase Plan
Stockholders Equity And Mezzanine Equity [Line Items]
Compensation expense					100,000	$ 45,000	$ 300,000	$ 200,000
Employee stock purchase plan, shares issued			28,729	15,445
Purchase price per share			$ 18.52	$ 19.06
Effect of employee stock purchase plan			$ 400,000	$ 200,000
Restricted Stock | Five Non Employee Directors
Stockholders Equity And Mezzanine Equity [Line Items]
Fully vested common stock granted	30,000
2014 Equity Incentive Plan | Restricted Stock
Stockholders Equity And Mezzanine Equity [Line Items]
Stock options, granted	110,000
Share-based compensation , award vesting period							3 years
Unrecognized compensation expenses					$ 14,100,000		$ 14,100,000
Weighted average life of remaining vesting period							2 years

Stockholders' Equity and Mezz55

Stockholders' Equity and Mezzanine Equity - Summary of Share Activity (Details) - 2014 Equity Incentive Plan	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Nonvested, Number of Shares [Roll Forward]
Beginning Balance, Shares | shares	777,019
Granted, Shares | shares	140,000
Vested, Shares | shares	(252,427)
Forfeitures, Shares | shares	(20,167)
Ending Balance, Shares | shares	644,425
Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning Balance, Weighted-average Grant Date Fair Value | $ / shares	$ 24.99
Granted, Weighted-average Grant Date Fair Value | $ / shares	16.24
Vested, Weighted-average Grant Date Fair Value | $ / shares	16.64
Forfeitures, Weighted-average Grant Date Fair Value | $ / shares	19.69
Ending Balance, Weighted-average Grant Date Fair Value | $ / shares	$ 23.20

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Effective tax rates on provision for income taxes	15.90%	27.00%	16.60%	35.80%
Income tax (benefit) expense	$ (758)	$ 644	$ (885)	$ 5,003

Fair Value of Financial Instr57

Fair Value of Financial Instruments - Additional Information (Details) $ in Millions	Sep. 30, 2016USD ($)
Fair Value Disclosures [Abstract]
Fair value of interest rate swap	$ 0.5

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	Oct. 21, 2016	Sep. 30, 2016
Leading Edge Recovery Center L L C
Loss Contingencies [Line Items]
Litigation reserve		$ 350,000
State of California Case | Litigation Settlement
Loss Contingencies [Line Items]
Investigation costs for defendants		549,986
Civil monetary penalty for defendants		$ 200,000
State of California Case | Subsequent Event
Loss Contingencies [Line Items]
Compliance program term	3 years
Period following the effective date of PIFJ that Defendants shall retain a qualified independent monitor	30 months