American Renal Associates Holdings, Inc. Announces Delay in Release of Fourth Quarter and Year-End 2018 Earnings, Filing of 2018 10-K

BEVERLY, Mass.–(BUSINESS WIRE)–American Renal Associates Holdings, Inc. (NYSE: ARA) (the “Company”), a
leading provider of outpatient dialysis services, today announced that
it will delay the filing of its Annual Report on Form 10-K for the
fiscal year ended December 31, 2018 (the “2018 Form 10-K”) and the
issuance of its earnings release for the fourth quarter and full year
2018. The Company also reported certain preliminary operating data for
the fourth quarter and full year 2018. The Company will not hold an
investor call regarding its financial results at this time.

Preliminary Operating Data for Fourth Quarter and Fiscal 2018

As of December 31, 2018, the Company provided services at 241 outpatient
dialysis clinics serving 16,543 patients, compared to 228 outpatient
dialysis clinics serving 15,637 patients as of December 31, 2017.

Treatment Volume: Total dialysis treatments for the fourth
quarter of 2018 were 600,190, representing an increase of 6.1% over the
fourth quarter of 2017. Non-acquired treatment growth was 4.9%, and
acquired treatment growth was 1.2% for the fourth quarter of 2018.
Fourth quarter 2018 normalized total treatment growth was 5.6%, and
normalized non-acquired treatment growth was 4.5% as compared to the
prior year period. Total dialysis treatments for the year ended December
31, 2018 were 2,311,037, compared to 2,191,172 for the year ended
December 31, 2017, representing an increase of 5.5% over the prior year
period. Non-acquired treatment growth was 4.4%, and acquired treatment
growth was 1.1% for the year ended December 31, 2018. Full-year 2018
normalized total treatment growth was 6.1% and normalized non-acquired
treatment growth was 5.0% as compared to the prior year period.

Clinic Activity: During the fourth quarter of 2018, the
Company opened five de novo clinics and acquired one clinic. For the
year ended December 31, 2018, the Company opened 13 de novo clinics,
acquired one clinic and sold one clinic. As of December 31, 2018, the
Company had 28 signed clinics scheduled to open in the future.

Review of Revenue Recognition Methodology

As previously disclosed, in October 2018, the Staff of the Securities
and Exchange Commission (“SEC”) requested that the Company voluntarily
provide documents and information relating to certain revenue
recognition, collections and related matters. Following receipt of the
SEC request, the Company responded by producing documents and
information to the Staff and expects to continue to cooperate with the
SEC by providing additional documents and information to the Staff in
the future. In addition, the Audit Committee (the “Audit Committee”) of
the Board of Directors of the Company began an examination of the
Company’s revenue recognition methodology and related accounting
matters, such as internal control over financial reporting related to
revenue recognition and related matters, with the assistance of legal
counsel that reports to the Audit Committee, as well as independent
accounting advisors retained by the Audit Committee’s counsel.

The Audit Committee’s review is continuing. With the assistance of its
advisors, the Audit Committee is examining reserve computations and
other accounting practices that could have an impact on accounts
receivable and revenue for the fiscal year ended December 31, 2018, as
well as the previously reported fiscal years ended December 31, 2014,
2015, 2016 and 2017, the fiscal quarters within those fiscal years and
the first three fiscal quarters of 2018. The Audit Committee is
continuing to evaluate whether and how any such adjustments will affect
individual quarters and years during the affected period, and the
Company does not expect to comment further on the Audit Committee’s
review until it is completed. However, the Company currently believes
that the filing of its 2018 Form 10-K will be delayed and has informed
the Company’s independent registered public accounting firm and the
Staff of the SEC accordingly. While the operating data presented above
in this press release are preliminary in nature, the Company does not
believe they will be affected by the ongoing review.

The Audit Committee and the Board are continuing to evaluate these
matters and are working diligently to complete their review so that the
Company can file its 2018 Form 10-K and make any related disclosures as
promptly as practicable.

The Company remains committed to its Core Values and to delivering high
quality care to patients, together with its physician partners.

About American Renal Associates

American Renal Associates (“ARA”) is a leading provider of outpatient
dialysis services in the United States. As of December 31, 2018, ARA
operated 241 dialysis clinic locations in 27 states and the District of
Columbia serving approximately 16,500 patients with end stage renal
disease. ARA operates principally through a physician partnership model,
in which it partners with approximately 400 local nephrologists to
develop, own and operate dialysis clinics. ARA’s Core Values emphasize
taking good care of patients, providing physicians with clinical
autonomy and operational support, hiring and retaining the best possible
staff and providing best practices management services. For more
information about American Renal Associates, visit www.americanrenal.com.

Forward-Looking Statements

Statements in this Current Report on Form 8-K that are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements regarding the Audit Committee’s
review and related matters, are based upon currently available
information, operating plans and projections about future events and
trends. Terminology such as “anticipate,” “believe,” “contemplate,”
“estimate,” “expect,” “forecast,” “intend,” “may,” “objective,”
“outlook,” “plan,” “potential,” “project,” “seek,” “should,” “strategy,”
“target” or “will” or variations of such words or similar expressions
are intended to identify forward-looking statements, although not all
forward-looking statements contain such terms. Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from those predicted in such
forward-looking statements. Such risks and uncertainties include: that
the Audit Committee’s review of the matters described above is ongoing,
including with respect to the amounts at issue and the periods to which
they relate; that the Audit Committee’s review of the matters described
above may take longer to complete than currently anticipated; that the
Company may take longer to file its 2018 Form 10-K than anticipated;
that the 2018 Form 10-K may include revisions to, or restatements of,
the Company’s financial statements for prior periods; and that the
Company may report one or more material weaknesses in the Company’s
internal control over financial reporting and may conclude that its
disclosure controls and procedures required by the Securities Exchange
Act of 1934 were not effective.

As discussed above, the Company’s 2018 Form 10-K may include information
about previously reported periods that varies, possibly materially, from
the information provided in the past with respect to those periods, and
the 2018 Form 10-K may include information that varies, possibly
materially, from expectations for the fourth quarter and year ended
December 31, 2018. For additional information and other factors that
could cause the Company’s actual results to materially differ from those
set forth herein, please see the Company’s filings with the SEC,
including its annual report on Form 10-K for the year ended December 31,
2017 filed with the SEC and subsequent reports on Forms 10-Q and 8-K.
Investors are cautioned not to place undue reliance on any such
forward-looking statements, which speak only as of the date they are
made. The Company undertakes no obligation to update any forward-looking
statement, whether as a result of new information, future events or
otherwise.

Contacts

American Renal Associates Holdings, Inc.
Darren Lehrich
Telephone:
(978) 522-6063; Email: dlehrich@americanrenal.com