American Renal Associates Holdings, Inc. (NYSE:ARA) Files An 8-K Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
Item 3.01
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On April 3, 2019, American Renal Associates Holdings, Inc. (the “Company”) received a notice from the New York Stock Exchange (the “NYSE”) indicating that the Company is not in compliance with the NYSE’s continued listing requirements under the timely filing criteria outlined in Section802.01E of the NYSE Listed Company Manual as a result of the Company’s failure to timely file its Annual Report on Form10-Kfor the fiscal year ended December31, 2018 (the “2018 Form10-K”).
As disclosed in a Form 12b-25 filed with the Securities and Exchange Commission (the “SEC”) on March 8, 2019, the Company was unable to file the 2018 Form 10-K within the prescribed time period without unreasonable effort or expense due to an ongoing review of the Company’s revenue recognition methodology and related accounting matters being conducted by the Audit Committee (the “Audit Committee”) of the Board of Directors (the “Board”) of the Company. The Company issued a press release, which it filed with a Current Report on Form 8-K on March 8, 2019, disclosing the delay in the filing of its 2018 Form 10-K and the reasons therefor. In addition, on March 27, 2019, the Company filed a Current Report on Form 8-K the (“March 27 Form 8-K”) that described, among other things, certain preliminary findings of the Audit Committee’s ongoing review and the Board’s determination that the Company’s previously issued consolidated financial statements and other financial data for the prior fiscal periods identified therein should be restated and should no longer be relied upon. The Company intends to file the 2018 Form10-Kand the restated results for the prior fiscal periods identified in the March 27 Form 8-K with the SEC as soon as practicable.
The NYSE informed the Company that, under the NYSE’s rules, the Company will have six months from April 3, 2019 to file the 2018 Form10-Kwith the SEC. The Company can regain compliance with the NYSE continued listing requirements at any time before that date by filing the 2018 Form10-Kwith the SEC. If the Company fails to file the 2018 Form10-Kbefore the NYSE’ssix-monthcompliance deadline, the NYSE may grant, in its sole discretion, an extension of up to six additional months for the Company to regain compliance, depending on the specific circumstances.
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About American Renal Associates Holdings, Inc. (NYSE:ARA)
American Renal Associates Holdings, Inc. is a dialysis services provider in the United States. The Company focuses on joint venture partnerships with physicians. The Company’s segment is the ownership and operation of dialysis clinics. It provides patient care and clinical outcomes to patients suffering from the advanced stage of chronic kidney disease, known as end stage renal disease (ESRD). It operates clinics through a joint venture (JV) model, in which it partners with local nephrologists to develop, own and operate dialysis clinics. Each of its clinics is maintained as a separate joint venture in which it has the controlling interest, and its nephrologist partners and other joint venture partners have a non-controlling interest. The Company opens over 20 de novo clinics each year. The Company has owned and operated over 190 dialysis clinics in partnership with approximately 350 nephrologist partners treating over 13,000 patients in over 20 states and the District of Columbia.
