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Revenue Increases to
Updates 2018 Financial Guidance
For the second quarter of 2018, Acadia’s total same facility revenue
increased 5.2% compared with the second quarter of 2017, including a
1.7% increase in patient days and a 3.4% increase in revenue per patient
day. Total same facility EBITDA margin declined 60 basis points to
25.7%. U.S. same facility revenue increased 5.0%, including a 1.9%
increase in patient days and a 3.1% increase in revenue per patient day.
U.S. same facility EBITDA margin declined 30 basis points to 28.1%.
Acadia today updated its financial guidance for 2018 to reflect a lower
exchange rate in the second half of the year as well as higher interest
rates. The Company now assumes an exchange rate of
-
Revenue for 2018 in a range of
$3.02 billion to $3.06 billion ; -
Adjusted EBITDA for 2018 in a range of
$632 million to $639 million ; and -
Adjusted earnings per diluted share for 2018 in a range of
$2.52 to$2.56 .
The Company’s guidance does not include the impact of any future acquisitions or transaction-related expenses.
EBITDA is defined as net income adjusted for net income (loss) attributable to noncontrolling interests, provision for income taxes, net interest expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for equity-based compensation expense, transaction-related expenses and debt extinguishment costs. Adjusted income is defined as net income adjusted for transaction-related expenses, tax reform impact, debt extinguishment costs and income tax effect of adjustments to income.
Acadia will hold a conference call to discuss its first quarter
financial results at 9:00 a.m. Eastern Time on
Risk Factors
This news release contains forward-looking statements. Generally, words
such as “may,” “will,” “should,” “could,” “anticipate,” “expect,”
“intend,” “estimate,” “plan,” “continue,” and “believe” or the negative
of or other variation on these and other similar expressions identify
forward-looking statements. These forward-looking statements are made
only as of the date of this news release. We do not undertake to update
or revise the forward-looking statements, whether as a result of new
information, future events or otherwise. Forward-looking statements are
based on current expectations and involve risks and uncertainties and
our future results could differ significantly from those expressed or
implied by our forward-looking statements. Factors that may cause actual
results to differ materially include, without limitation, (i) potential
difficulties operating our business in light of political and economic
instability in the
About Acadia
Acadia is a provider of behavioral healthcare services. At
Acadia Healthcare Company, Inc. | |||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||
Revenue before provision for doubtful accounts | $ | 765,738 | $ | 725,643 | $ | 1,507,979 | $ | 1,414,984 | |||||||||||||
Provision for doubtful accounts | - | (9,747 | ) | - | (19,894 | ) | |||||||||||||||
Revenue | 765,738 | 715,896 | 1,507,979 | 1,395,090 | |||||||||||||||||
Salaries, wages and benefits (including equity-based compensation expense of $7,129, $7,436, $14,048 and $14,832, respectively) |
416,741 | 383,595 | 828,269 | 760,016 | |||||||||||||||||
Professional fees | 53,461 | 46,321 | 107,479 | 89,730 | |||||||||||||||||
Supplies | 30,133 | 28,639 | 59,497 | 56,348 | |||||||||||||||||
Rents and leases | 20,236 | 19,435 | 40,524 | 38,406 | |||||||||||||||||
Other operating expenses | 87,282 | 83,122 | 175,513 | 166,833 | |||||||||||||||||
Depreciation and amortization | 39,928 | 35,201 | 79,701 | 68,814 | |||||||||||||||||
Interest expense, net | 45,812 | 43,505 | 91,055 | 86,262 | |||||||||||||||||
Debt extinguishment costs | - | 810 | 940 | 810 | |||||||||||||||||
Transaction-related expenses | 2,887 | 9,052 | 7,655 | 13,171 | |||||||||||||||||
Total expenses | 696,480 | 649,680 | 1,390,633 | 1,280,390 | |||||||||||||||||
Income before income taxes | 69,258 | 66,216 | 117,346 | 114,700 | |||||||||||||||||
Provision for income taxes | 10,368 | 16,578 | 7,582 | 30,289 | |||||||||||||||||
Net income | 58,890 | 49,638 | 109,764 | 84,411 | |||||||||||||||||
Net (income) loss attributable to noncontrolling interests | (54 | ) | (8 | ) | (109 | ) | 177 | ||||||||||||||
Net income attributable to Acadia Healthcare Company, Inc. | $ | 58,836 | $ | 49,630 | $ | 109,655 | $ | 84,588 | |||||||||||||
Earnings per share attributable to Acadia Healthcare Company, Inc. stockholders: |
|||||||||||||||||||||
Basic | $ | 0.67 | $ | 0.57 | $ | 1.26 | $ | 0.97 | |||||||||||||
Diluted | $ | 0.67 | $ | 0.57 | $ | 1.26 | $ | 0.97 | |||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||
Basic | 87,303 | 86,954 | 87,205 | 86,859 | |||||||||||||||||
Diluted | 87,467 | 87,080 | 87,351 | 86,997 |
Acadia Healthcare Company, Inc. | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(Unaudited) | ||||||||||
June 30, | December 31, | |||||||||
2018 | 2017 | |||||||||
(In thousands) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 79,463 | $ | 67,290 | ||||||
Accounts receivable, net | 329,256 | 296,925 | ||||||||
Other current assets | 80,503 | 107,335 | ||||||||
Total current assets | 489,222 | 471,550 | ||||||||
Property and equipment, net | 3,103,331 | 3,048,130 | ||||||||
Goodwill | 2,739,303 | 2,751,174 | ||||||||
Intangible assets, net | 91,566 | 87,348 | ||||||||
Deferred tax assets | 3,664 | 3,731 | ||||||||
Derivative instrument assets | 24,989 | 12,997 | ||||||||
Other assets | 51,072 | 49,572 | ||||||||
Total assets | $ | 6,503,147 | $ | 6,424,502 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current liabilities: | ||||||||||
Current portion of long-term debt | $ | 33,264 | $ | 34,830 | ||||||
Accounts payable | 130,228 | 102,299 | ||||||||
Accrued salaries and benefits | 102,840 | 99,047 | ||||||||
Other accrued liabilities | 127,786 | 141,213 | ||||||||
Total current liabilities | 394,118 | 377,389 | ||||||||
Long-term debt | 3,187,788 | 3,205,058 | ||||||||
Deferred tax liabilities | 78,340 | 80,333 | ||||||||
Other liabilities | 160,809 | 166,434 | ||||||||
Total liabilities | 3,821,055 | 3,829,214 | ||||||||
Redeemable noncontrolling interests | 28,791 | 22,417 | ||||||||
Equity: | ||||||||||
Common stock | 873 | 871 | ||||||||
Additional paid-in capital | 2,530,083 | 2,517,545 | ||||||||
Accumulated other comprehensive loss | (415,883 | ) | (374,118 | ) | ||||||
Retained earnings | 538,228 | 428,573 | ||||||||
Total equity | 2,653,301 | 2,572,871 | ||||||||
Total liabilities and equity | $ | 6,503,147 | $ | 6,424,502 |
Acadia Healthcare Company, Inc. | ||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||
(Unaudited) | ||||||||||||
Six Months Ended June 30, | ||||||||||||
2018 | 2017 | |||||||||||
(In thousands) | ||||||||||||
Operating activities: | ||||||||||||
Net income | $ | 109,764 | $ | 84,411 | ||||||||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | ||||||||||||
Depreciation and amortization | 79,701 | 68,814 | ||||||||||
Amortization of debt issuance costs | 5,124 | 4,845 | ||||||||||
Equity-based compensation expense | 14,048 | 14,832 | ||||||||||
Deferred income taxes | (3,978 | ) | 17,096 | |||||||||
Debt extinguishment costs | 940 | 810 | ||||||||||
Other | 1,040 | 6,558 | ||||||||||
Change in operating assets and liabilities: | ||||||||||||
Accounts receivable, net | (26,104 | ) | (22,404 | ) | ||||||||
Other current assets | 9,953 | 20,457 | ||||||||||
Other assets | 2,761 | 1,809 | ||||||||||
Accounts payable and other accrued liabilities | 21,066 | (4,893 | ) | |||||||||
Accrued salaries and benefits | 4,364 | (9,157 | ) | |||||||||
Other liabilities | (793 | ) | 5,257 | |||||||||
Net cash provided by continuing operating activities | 217,886 | 188,435 | ||||||||||
Net cash used in discontinued operating activities | (572 | ) | (829 | ) | ||||||||
Net cash provided by operating activities | 217,314 | 187,606 | ||||||||||
Investing activities: | ||||||||||||
Cash paid for capital expenditures | (161,555 | ) | (117,521 | ) | ||||||||
Cash paid for real estate acquisitions | (8,857 | ) | (22,850 | ) | ||||||||
Other | (3,337 | ) | (5,938 | ) | ||||||||
Net cash used in investing activities | (173,749 | ) | (146,309 | ) | ||||||||
Financing activities: | ||||||||||||
Principal payments on long-term debt | (23,246 | ) | (17,275 | ) | ||||||||
Common stock withheld for minimum statutory taxes, net | (2,134 | ) | (3,678 | ) | ||||||||
Other | (5,172 | ) | (2,270 | ) | ||||||||
Net cash used in financing activities | (30,552 | ) | (23,223 | ) | ||||||||
Effect of exchange rate changes on cash | (840 | ) | 4,297 | |||||||||
Net increase in cash and cash equivalents | 12,173 | 22,371 | ||||||||||
Cash and cash equivalents at beginning of the period | 67,290 | 57,063 | ||||||||||
Cash and cash equivalents at end of the period | $ | 79,463 | $ | 79,434 |
Acadia Healthcare Company, Inc. | |||||||||||||||||||||
Operating Statistics | |||||||||||||||||||||
(Unaudited, Revenue in thousands) | |||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2018 | 2017 | % Change | 2018 | 2017 | % Change | ||||||||||||||||
Same Facility Results (a,d) | |||||||||||||||||||||
Revenue | $ | 730,681 | $ | 694,730 | 5.2% | $ | 1,440,285 | $ | 1,366,845 | 5.4% | |||||||||||
Patient Days | 1,127,834 | 1,108,621 | 1.7% | 2,226,128 | 2,185,539 | 1.9% | |||||||||||||||
Admissions | 41,930 | 40,279 | 4.1% | 82,900 | 80,534 | 2.9% | |||||||||||||||
Average Length of Stay (b) | 26.9 | 27.5 | -2.3% | 26.9 | 27.1 | -1.0% | |||||||||||||||
Revenue per Patient Day | $ | 648 | $ | 627 | 3.4% | $ | 647 | $ | 625 | 3.5% | |||||||||||
EBITDA margin | 25.7% | 26.3% | -60 bps | 25.0% | 25.1% | -10 bps | |||||||||||||||
U.S. Same Facility Results (a) | |||||||||||||||||||||
Revenue | $ | 474,266 | $ | 451,805 | 5.0% | $ | 932,989 | $ | 884,091 | 5.5% | |||||||||||
Patient Days | 627,400 | 615,951 | 1.9% | 1,236,700 | 1,213,215 | 1.9% | |||||||||||||||
Admissions | 39,564 | 37,992 | 4.1% | 78,109 | 75,900 | 2.9% | |||||||||||||||
Average Length of Stay (b) | 15.9 | 16.2 | -2.2% | 15.8 | 16.0 | -0.9% | |||||||||||||||
Revenue per Patient Day | $ | 756 | $ | 734 | 3.1% | $ | 754 | $ | 729 | 3.5% | |||||||||||
EBITDA margin | 28.1% | 28.4% | -30 bps | 27.2% | 27.2% | 0 bps | |||||||||||||||
U.K. Same Facility Results (a,d) | |||||||||||||||||||||
Revenue | $ | 256,415 | $ | 242,925 | 5.6% | $ | 507,296 | $ | 482,754 | 5.1% | |||||||||||
Patient Days | 500,434 | 492,670 | 1.6% | 989,428 | 972,324 | 1.8% | |||||||||||||||
Admissions | 2,366 | 2,287 | 3.5% | 4,791 | 4,634 | 3.4% | |||||||||||||||
Average Length of Stay (b) | 211.5 | 215.4 | -1.8% | 206.5 | 209.8 | -1.6% | |||||||||||||||
Revenue per Patient Day | $ | 512 | $ | 493 | 3.9% | $ | 513 | $ | 496 | 3.3% | |||||||||||
EBITDA margin | 21.3% | 22.4% | -110 bps | 20.8% | 21.2% | -40 bps | |||||||||||||||
U.S. Facility Results (c) | |||||||||||||||||||||
Revenue | $ | 481,470 | $ | 461,067 | 4.4% | $ | 943,875 | $ | 900,965 | 4.8% | |||||||||||
Patient Days | 635,766 | 624,047 | 1.9% | 1,248,655 | 1,224,499 | 2.0% | |||||||||||||||
Admissions | 40,519 | 38,092 | 6.4% | 79,451 | 76,063 | 4.5% | |||||||||||||||
Average Length of Stay (b) | 15.7 | 16.4 | -4.2% | 15.7 | 16.1 | -2.4% | |||||||||||||||
Revenue per Patient Day | $ | 757 | $ | 739 | 2.5% | $ | 756 | $ | 736 | 2.7% | |||||||||||
EBITDA margin | 27.0% | 27.9% | -90 bps | 26.2% | 26.7% | -50 bps | |||||||||||||||
U.K. Facility Results (c,d) | |||||||||||||||||||||
Revenue | $ | 284,268 | $ | 270,716 | 5.0% | $ | 564,104 | $ | 539,221 | 4.6% | |||||||||||
Patient Days | 676,901 | 684,195 | -1.1% | 1,342,472 | 1,355,915 | -1.0% | |||||||||||||||
Admissions | 2,712 | 2,611 | 3.9% | 5,474 | 5,313 | 3.0% | |||||||||||||||
Average Length of Stay (b) | 249.6 | 262.0 | -4.8% | 245.2 | 255.2 | -3.9% | |||||||||||||||
Revenue per Patient Day | $ | 420 | $ | 396 | 6.1% | $ | 420 | $ | 398 | 5.7% | |||||||||||
EBITDA margin | 19.1% | 20.4% | -130 bps | 18.7% | 19.5% | -80 bps | |||||||||||||||
Total Facility Results (c,d) | |||||||||||||||||||||
Revenue | $ | 765,738 | $ | 731,783 | 4.6% | $ | 1,507,979 | $ | 1,440,186 | 4.7% | |||||||||||
Patient Days | 1,312,667 | 1,308,242 | 0.3% | 2,591,127 | 2,580,414 | 0.4% | |||||||||||||||
Admissions | 43,231 | 40,703 | 6.2% | 84,925 | 81,376 | 4.4% | |||||||||||||||
Average Length of Stay (b) | 30.4 | 32.1 | -5.5% | 30.5 | 31.7 | -3.8% | |||||||||||||||
Revenue per Patient Day | $ | 583 | $ | 559 | 4.3% | $ | 582 | $ | 558 | 4.3% | |||||||||||
EBITDA margin | 24.1% | 25.1% | -100 bps | 23.4% | 24.0% | -60 bps | |||||||||||||||
(a) Results for the periods presented exclude the elderly care division of our U.K. operations and certain closed services. | |||||||||||||||||||||
(b) Average length of stay is defined as patient days divided by admissions. | |||||||||||||||||||||
(c) Results for the periods presented exclude certain closed services. | |||||||||||||||||||||
(d) Revenue and revenue per patient day for the three and six months ended June 30, 2017 is adjusted to reflect the foreign currency exchange rate for the comparable periods of 2018 in order to eliminate the effect of changes in the exchange rate. The exchange rate used in the adjusted revenue and revenue per patient day amounts for the three and six months ended June 30, 2017 is 1.36 and 1.38, respectively. |
Acadia Healthcare Company, Inc. | ||||||||||||||
Reconciliation of Net Income Attributable to Acadia Healthcare Company, Inc. to Adjusted EBITDA | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
(in thousands) | ||||||||||||||
Net income attributable to Acadia Healthcare Company, Inc. | $ | 58,836 | $ | 49,630 | $ | 109,655 | $ | 84,588 | ||||||
Net income (loss) attributable to noncontrolling interests | 54 | 8 | 109 | (177 | ) | |||||||||
Provision for income taxes | 10,368 | 16,578 | 7,582 | 30,289 | ||||||||||
Interest expense, net | 45,812 | 43,505 | 91,055 | 86,262 | ||||||||||
Depreciation and amortization | 39,928 | 35,201 | 79,701 | 68,814 | ||||||||||
EBITDA | 154,998 | 144,922 | 288,102 | 269,776 | ||||||||||
Adjustments: | ||||||||||||||
Equity-based compensation expense (a) | 7,129 | 7,436 | 14,048 | 14,832 | ||||||||||
Transaction-related expenses (b) | 2,887 | 9,052 | 7,655 | 13,171 | ||||||||||
Debt extinguishment costs (c) | - | 810 | 940 | 810 | ||||||||||
Adjusted EBITDA | $ | 165,014 | $ | 162,220 | $ | 310,745 | $ | 298,589 | ||||||
See footnotes on page 9. |
Acadia Healthcare Company, Inc. | ||||||||||||||||||
Reconciliation of Adjusted Income Attributable to Acadia Healthcare Company, Inc. to | ||||||||||||||||||
Net Income Attributable to Acadia Healthcare Company, Inc. | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
Net income attributable to Acadia Healthcare Company, Inc. | $ | 58,836 | $ | 49,630 | $ | 109,655 | $ | 84,588 | ||||||||||
Adjustments to income: | ||||||||||||||||||
Transaction-related expenses (b) | 2,887 | 9,052 | 7,655 | 13,171 | ||||||||||||||
Tax reform impact (d) | - | - | (10,472 | ) | - | |||||||||||||
Debt extinguishment costs (c) | - | 810 | 940 | 810 | ||||||||||||||
Income tax effect of adjustments to income (e) | (554 | ) | (2,268 | ) | (1,415 | ) | (1,469 | ) | ||||||||||
Adjusted income attributable to Acadia Healthcare Company, Inc. | $ | 61,169 | $ | 57,224 | $ | 106,363 | $ | 97,100 | ||||||||||
Weighted-average shares outstanding - diluted | 87,467 | 87,080 | 87,351 | 86,997 | ||||||||||||||
Adjusted income attributable to Acadia Healthcare Company, Inc. per diluted share |
$ | 0.70 | $ | 0.66 | $ | 1.22 | $ | 1.12 | ||||||||||
See footnotes on page 9. |
Acadia Healthcare Company, Inc. | ||
Footnotes | ||
We have included certain financial measures in this press release, including EBITDA, Adjusted EBITDA, and Adjusted income, which are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the SEC. We define EBITDA as net income adjusted for net income (loss) attributable to noncontrolling interests, provision for income taxes, net interest expense and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for equity-based compensation expense, transaction-related expenses and debt extinguishment costs. We define Adjusted income as net income adjusted for transaction-related expenses, tax reform impact, debt extinguishment costs and income tax effect of adjustments to income. | ||
EBITDA, Adjusted EBITDA, and Adjusted income are supplemental measures of our performance and are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). EBITDA, Adjusted EBITDA, and Adjusted income are not measures of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as measures of our liquidity. Our measurements of EBITDA, Adjusted EBITDA, and Adjusted income may not be comparable to similarly titled measures of other companies. We have included information concerning EBITDA, Adjusted EBITDA, and Adjusted income in this press release because we believe that such information is used by certain investors as measures of a company’s historical performance. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of issuers of equity securities, many of which present EBITDA, Adjusted EBITDA, and Adjusted income when reporting their results. Our presentation of EBITDA, Adjusted EBITDA, and Adjusted income should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. | ||
The Company is not able to provide a reconciliation of projected Adjusted EBITDA and adjusted earnings per diluted share, where provided, to expected results due to the unknown effect, timing and potential significance of transaction-related expenses and the tax effect of such expenses. | ||
(a) Represents the equity-based compensation expense of Acadia. | ||
(b) Represents transaction-related expenses incurred by Acadia related to acquisitions and integration efforts. | ||
(c) Represents debt extinguishment costs recorded in connection with the Amended and Restated Credit Agreement, including the discount and write-off of deferred financing costs. | ||
(d) Represents tax benefit related to a change in the Company’s provisional amounts recorded at December 31, 2017 related to the enactment of the Tax Cuts and Jobs Act. | ||
(e) Represents the income tax effect of adjustments to income based on tax rates of 15.2% and 24.8% for the three months ended June 30, 2018 and 2017, respectively, and 15.5% and 24.6% for the six months ended June 30, 2018 and 2017, respectively. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20180730005687/en/
Source:
Acadia Healthcare Company, Inc.
Gretchen Hommrich, 615-861-6000
Director,
Investor Relations