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FRANKLIN, Tenn.--(BUSINESS WIRE)--Oct 31, 2022--
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced financial results for the third quarter ended September 30, 2022.
Third Quarter Highlights
Third Quarter Results
The Company reported revenue of $666.7 million for the third quarter of 2022, compared with $587.6 million for the third quarter of 2021. Adjusted EBITDA was $162.8 million for the third quarter of 2022, compared with $141.9 million for the same period last year. Excluding income from the PRF, Adjusted EBITDA was $155.1 million for the third quarter of 2022.
The Company recorded income from the PRF of $7.7 million in the third quarter of 2022. The Company will continue to review the remaining $14.2 million of American Rescue Plan (“ARP”) Rural Payments held on its balance sheet as of September 30, 2022, for the potential recognition of additional income. Financial guidance for 2022 does not include the recognition of additional income in the fourth quarter of 2022 beyond the $16.2 million recorded in the nine months ended September 30, 2022.
Net income attributable to Acadia stockholders for the third quarter of 2022 was $71.1 million, or $0.78 per diluted share. Adjusted income from continuing operations attributable to Acadia stockholders was $0.86 per diluted share for the third quarter of 2022. Excluding income from the PRF, adjusted income from continuing operations was $0.80 per diluted share for the third quarter of 2022. Adjustments to income include transaction-related expenses and the income tax effect of adjustments to income. A reconciliation of all non-GAAP financial results in this press release begins on page 10.
For the third quarter of 2022, Acadia’s same facility revenue increased 10.2% compared with the third quarter of 2021, including an increase in revenue per patient day of 6.9% and an increase in patient days of 3.1%.
Chris Hunter, Chief Executive Officer of Acadia Healthcare Company, remarked, “We continued to see robust demand for our behavioral healthcare services during the third quarter. We executed our strategy with favorable results across our key performance metrics including continued navigation through a tight labor market. We are fortunate to have an experienced and dedicated team of employees and clinicians across our operations who have worked tirelessly to meet the needs of those seeking treatment for mental health and substance use issues.
Strategic Investments for Long-Term Growth
“We have progressed on our key growth initiatives across all our service lines this year. We continue to make critical investments in our business to support sustained long-term growth through four distinct pathways. Facility expansions are our first and most efficient growth pathway as we can expand services in established markets with our existing infrastructure and experienced staff. We added 132 beds to our existing facilities during the third quarter, bringing our total number of bed additions to 210 for the first nine months of the year. We are on track to meet our goal of adding approximately 300 beds in 2022.
“For our second growth pathway, we continue to develop wholly owned de novo facilities that meet the critical demand for behavioral healthcare services in underserved markets. There are significant opportunities across the country to address this unmet need at the local community level. We opened a 60-bed children’s hospital in early July, as the first stage of our Montrose Behavioral Health Hospital operations in Chicago. In addition to the children’s hospital, we expect to begin operations at our 101-bed adult hospital and the outpatient facility in 2023 following the renovations of these facilities.
“We continue to identify opportunities to expand our network of CTCs to address the critical need for addiction treatment, specifically for patients dealing with opioid use disorder. During the third quarter, we opened new CTCs in Indiana and Florida. This brings our total to four CTCs opened this year, supporting our objective to open at least six new CTCs in 2022. As the opioid crisis has continued to escalate across the country, our CTC facilities and programs are playing a vital role in addressing this national epidemic.
“A third important pathway for growth for Acadia is forming strategic partnerships with leading health systems across the country. We are proud to work with a growing number of premier health systems to expand behavioral healthcare treatment options in their respective communities. By working together, we can leverage our behavioral health expertise and implement best practices to deliver high quality care and positive clinical outcomes for more patients. During the third quarter, we opened a new facility with our joint venture partner, Covenant Health, in Knoxville, Tennessee. We also broke ground on a new state-of-the-art behavioral health treatment and teaching hospital with our joint venture partner, Henry Ford Health, in the Detroit, Michigan metropolitan area. We expect to commence operations at Maple Heights Behavioral Health, our joint venture with Lutheran Health Network of Indiana during the fourth quarter. An important aspect of many of our joint venture partnerships is the academic focus and training of future clinicians. During the quarter, our Belmont Behavioral Health Hospital in Philadelphia entered into a formal affiliation agreement with Thomas Jefferson University’s Sidney Kimmel Medical College and Jefferson Health in Philadelphia, Pennsylvania, to further teaching and clinical care opportunities for students in behavioral healthcare.
“For our fourth pathway, we focus on identifying strategic acquisition opportunities that allow us to leverage our scale and expertise, make necessary investments for expansion and add service offerings to further enhance the continuum of care. We are fortunate to have a strong balance sheet that supports our ability to pursue acquisitions along with opportunities through our other important growth pathways,” added Hunter.
Cash and Liquidity
Maintaining a strong financial position is a top priority for Acadia, providing the flexibility to pursue its growth initiatives and make strategic investments in its business. As of September 30, 2022, the Company had $93.4 million in cash and cash equivalents. The Company had $515 million available under its $600 million revolving credit facility and its net leverage ratio was approximately 2.1x as of September 30, 2022.
During the third quarter, the Company substantially completed its repayment of amounts received pursuant to the Medicare Accelerated and Advanced Payment Program under the CARES Act. Of the $45.2 million of advanced payments received in 2020, the Company repaid a total of $25.1 million in 2021 and made additional payments of $18.9 million through the first nine months of 2022. The Company will pay off the remaining balance of $1.2 million in the fourth quarter of 2022. In the third quarter of 2022, the Company repaid the remaining half of the approximately $39.3 million of 2020 payroll tax deferrals, which eliminated this liability.
Financial Guidance
Acadia today narrowed its previously announced financial guidance for 2022, as follows:
| 2022 Guidance Range | |||
Revenue | $2.58 to $2.60 billion | |||
Adjusted EBITDA, including income from the PRF | $611 to $621 million | |||
Adjusted EBITDA, excluding income from the PRF | $595 to $605 million | |||
Adjusted earnings per diluted share, including | ||||
income from the PRF | $3.13 to $3.23 | |||
Adjusted earnings per diluted share, excluding | ||||
income from the PRF | $3.00 to $3.10 | |||
Interest expense | Approximately $70 million | |||
Tax rate | 25% to 26% | |||
Depreciation and amortization expense | Approximately $120 million | |||
Stock compensation expense | Approximately $30 million | |||
Operating cash flows | $360 to $400 million | |||
Expansion capital expenditures | $210 to $230 million | |||
Maintenance capital expenditures | Approximately $60 million |
The Company’s guidance does not include the impact of any future acquisitions, divestitures or transaction-related expenses.
Looking Ahead
Hunter added, “We look forward to hosting Acadia’s first Investor Day on Wednesday, December 7, 2022, in New York City. Our management team will provide an in-depth look at our diverse service lines and our strategic initiatives to advance our leadership position in the behavioral healthcare industry.
“We are excited about the opportunities ahead for Acadia, as we remain focused on our primary objective to extend our market reach through our four defined growth pathways. Demand for our services continues to grow, and we believe we are well positioned to maintain our strong growth trajectory and meet our development targets for the year. Without question, the critical need for behavioral health treatment has become a primary focus for health officials, medical professionals, and lawmakers across the country, with depression and anxiety issues further amplified by the strains of the COVID-19 pandemic. Recent data from the Centers for Disease Control and Prevention showed the U.S. suicide rate rose four percent in 2021 after two consecutive years of declines, highlighting the critical need for early assessment and intervention. As a leading provider of behavioral healthcare services, we play a vital role in addressing this need, and we believe we have the right strategy in place to make a positive difference. We are proud of the important work we are doing as we continue to pursue a strategic direction that delivers greater value for our patients, the communities we serve, and our stockholders.”
Conference Call
Acadia will hold a conference call to discuss its third quarter financial results at 9:00 a.m. Eastern Time on November 1, 2022. A live webcast of the conference call will be available at www.acadiahealthcare.com in the “Investors” section of the website. The webcast of the conference call will be available for 30 days.
About Acadia
Acadia is a leading provider of behavioral healthcare services across the United States. As of September 30, 2022, Acadia operated a network of 242 behavioral healthcare facilities with approximately 10,800 beds in 39 states and Puerto Rico. With more than 22,500 employees serving approximately 70,000 patients daily, Acadia is the largest stand-alone behavioral healthcare company in the U.S. Acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics.
Forward-Looking Information
This press 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 press 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) the impact of the COVID-19 pandemic, including, without limitation, disruption to the U.S. economy and financial markets; reduced admissions and patient volumes; and increased costs relating to labor, supply chain and other expenditures; (ii) the impact of vaccine and other pandemic-related mandates imposed by local, state and federal authorities; (iii) potential difficulties in successfully integrating the operations of acquired facilities or realizing the expected benefits and synergies of our facility expansions, acquisitions, joint ventures and de novo transactions; (iv) Acadia’s ability to add beds, expand services, enhance marketing programs and improve efficiencies at its facilities; (v) potential reductions in payments received by Acadia from government and third-party payors; (vi) the occurrence of patient incidents, governmental investigations, litigation and adverse regulatory actions, which could adversely affect the price of our common stock and result in substantial payments and incremental regulatory burdens; (vii) the risk that Acadia may not generate sufficient cash from operations to service its debt and meet its working capital and capital expenditure requirements; (viii) potential disruptions to our information technology systems or a cybersecurity incident; and (ix) potential operating difficulties, labor costs, client preferences, changes in competition and general economic or industry conditions that may prevent Acadia from realizing the expected benefits of its business strategies. These factors and others are more fully described in Acadia’s periodic reports and other filings with the SEC.
| Acadia Healthcare Company, Inc. | |||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||||
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| |||
| (In thousands, except per share amounts) | |||||||||||||||||
| Revenue | $ | 666,732 |
| $ | 587,559 |
| $ | 1,935,104 |
| $ | 1,720,914 |
| |||||
Salaries, wages and benefits (including equity-based compensation expense of $7,240, $8,923, $21,745 and $24,988, respectively) |
| 352,582 |
|
| 309,118 |
|
| 1,027,732 |
|
| 922,684 |
| |||||
| Professional fees |
| 40,367 |
|
| 35,602 |
|
| 117,718 |
|
| 101,915 |
| |||||
| Supplies |
| 25,570 |
|
| 23,743 |
|
| 74,291 |
|
| 67,698 |
| |||||
| Rents and leases |
| 11,339 |
|
| 9,658 |
|
| 33,780 |
|
| 28,690 |
| |||||
| Other operating expenses |
| 88,993 |
|
| 76,502 |
|
| 255,355 |
|
| 222,263 |
| |||||
| Income from provider relief fund |
| (7,656 | ) |
| — |
|
| (16,206 | ) |
| — |
| |||||
| Depreciation and amortization |
| 29,573 |
|
| 27,805 |
|
| 87,627 |
|
| 78,349 |
| |||||
| Interest expense, net |
| 18,003 |
|
| 15,706 |
|
| 50,355 |
|
| 61,420 |
| |||||
| Debt extinguishment costs |
| — |
|
| — |
|
| — |
|
| 24,650 |
| |||||
| Loss on impairment |
| — |
|
| 1,079 |
|
| — |
|
| 24,293 |
| |||||
| Transaction-related expenses |
| 10,859 |
|
| 3,035 |
|
| 18,381 |
|
| 9,320 |
| |||||
| Total expenses |
| 569,630 |
|
| 502,248 |
|
| 1,649,033 |
|
| 1,541,282 |
| |||||
| Income from continuing operations before income taxes |
| 97,102 |
|
| 85,311 |
|
| 286,071 |
|
| 179,632 |
| |||||
| Provision for income taxes |
| 24,056 |
|
| 17,411 |
|
| 69,183 |
|
| 42,948 |
| |||||
| Income from continuing operations |
| 73,046 |
|
| 67,900 |
|
| 216,888 |
|
| 136,684 |
| |||||
| Loss from discontinued operations, net of taxes |
| — |
|
| — |
|
| — |
|
| (12,641 | ) | |||||
| Net income |
| 73,046 |
|
| 67,900 |
|
| 216,888 |
|
| 124,043 |
| |||||
| Net income attributable to noncontrolling interests |
| (1,947 | ) |
| (1,774 | ) |
| (4,873 | ) |
| (3,686 | ) | |||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 71,099 |
| $ | 66,126 |
| $ | 212,015 |
| $ | 120,357 |
| |||||
| Basic earnings per share attributable to Acadia Healthcare Company, Inc. stockholders: | |||||||||||||||||
| Income from continuing operations attributable to Acadia Healthcare Company, Inc. | $ | 0.79 |
| $ | 0.74 |
| $ | 2.37 |
| $ | 1.50 |
| |||||
| Loss from discontinued operations |
| — |
|
| — |
|
| — |
| $ | (0.14 | ) | |||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 0.79 |
| $ | 0.74 |
| $ | 2.37 |
| $ | 1.36 |
| |||||
| Diluted earnings per share attributable to Acadia Healthcare Company, Inc. stockholders: | |||||||||||||||||
| Income from continuing operations attributable to Acadia Healthcare Company, Inc. | $ | 0.78 |
| $ | 0.73 |
| $ | 2.31 |
| $ | 1.47 |
| |||||
| Loss from discontinued operations |
| — |
|
| — |
|
| — |
| $ | (0.14 | ) | |||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 0.78 |
| $ | 0.73 |
| $ | 2.31 |
| $ | 1.33 |
| |||||
| Weighted-average shares outstanding: | |||||||||||||||||
| Basic |
| 89,833 |
|
| 88,962 |
|
| 89,607 |
|
| 88,684 |
| |||||
| Diluted |
| 91,723 |
|
| 90,889 |
|
| 91,668 |
|
| 90,604 |
|
| Acadia Healthcare Company, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
September 30, |
| December 31, | ||||||
2022 |
| 2021 | ||||||
(In thousands) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 93,419 | $ | 133,813 |
| |||
| Accounts receivable, net |
| 315,999 |
| 281,332 |
| |||
| Other current assets |
| 112,238 |
| 79,886 |
| |||
| Total current assets |
| 521,656 |
| 495,031 |
| |||
| Property and equipment, net |
| 1,908,993 |
| 1,771,159 |
| |||
| Goodwill |
| 2,207,912 |
| 2,199,937 |
| |||
| Intangible assets, net |
| 75,920 |
| 70,145 |
| |||
| Deferred tax assets |
| 2,983 |
| 3,080 |
| |||
| Operating lease right-of-use assets |
| 135,627 |
| 133,761 |
| |||
| Other assets |
| 90,014 |
| 94,965 |
| |||
| Total assets | $ | 4,943,105 | $ | 4,768,078 |
| |||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 21,250 | $ | 18,594 |
| |||
| Accounts payable |
| 116,045 |
| 98,575 |
| |||
| Accrued salaries and benefits |
| 109,654 |
| 137,845 |
| |||
| Current portion of operating lease liabilities |
| 25,770 |
| 23,348 |
| |||
| Other accrued liabilities |
| 128,294 |
| 126,499 |
| |||
| Total current liabilities |
| 401,013 |
| 404,861 |
| |||
| Long-term debt |
| 1,379,306 |
| 1,478,626 |
| |||
| Deferred tax liabilities |
| 94,446 |
| 74,368 |
| |||
| Operating lease liabilities |
| 117,473 |
| 116,841 |
| |||
| Other liabilities |
| 118,923 |
| 110,505 |
| |||
| Total liabilities |
| 2,111,161 |
| 2,185,201 |
| |||
| Redeemable noncontrolling interests |
| 88,236 |
| 65,388 |
| |||
| Equity: | ||||||||
| Common stock |
| 899 |
| 890 |
| |||
| Additional paid-in capital |
| 2,650,545 |
| 2,636,350 |
| |||
| Retained earnings (accumulated deficit) |
| 92,264 |
| (119,751 | ) | |||
| Total equity |
| 2,743,708 |
| 2,517,489 |
| |||
| Total liabilities and equity | $ | 4,943,105 | $ | 4,768,078 |
|
| Acadia Healthcare Company, Inc. | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| (Unaudited) | |||||||||
Nine Months Ended September 30, | |||||||||
| 2022 |
|
|
| 2021 |
| |||
| (In thousands) | |||||||||
| Operating activities: | |||||||||
| Net income | $ | 216,888 |
| $ | 124,043 |
| |||
| Adjustments to reconcile net income to net cash provided by continuing operating activities: | |||||||||
| Depreciation and amortization |
| 87,627 |
|
| 78,349 |
| |||
| Amortization of debt issuance costs |
| 2,440 |
|
| 3,265 |
| |||
| Equity-based compensation expense |
| 21,745 |
|
| 24,988 |
| |||
| Deferred income taxes |
| 20,176 |
|
| 8,995 |
| |||
| Loss from discontinued operations, net of taxes |
| — |
|
| 12,641 |
| |||
| Debt extinguishment costs |
| — |
|
| 24,650 |
| |||
| Loss on impairment |
| — |
|
| 24,293 |
| |||
| Other |
| 2,422 |
|
| 881 |
| |||
| Change in operating assets and liabilities, net of effect of acquisitions: | |||||||||
| Accounts receivable, net |
| (35,538 | ) |
| (8,610 | ) | |||
| Other current assets |
| (28,692 | ) |
| (2,758 | ) | |||
| Other assets |
| 3,373 |
|
| (15,846 | ) | |||
| Accounts payable and other accrued liabilities |
| 7,729 |
|
| 6,358 |
| |||
| Accrued salaries and benefits |
| (8,831 | ) |
| 18,820 |
| |||
| Other liabilities |
| 10,303 |
|
| (11,633 | ) | |||
| Government relief funds |
| (32,617 | ) |
| (12,058 | ) | |||
| Net cash provided by continuing operating activities |
| 267,025 |
|
| 276,378 |
| |||
| Net cash provided by discontinued operating activities |
| — |
|
| 253 |
| |||
| Net cash provided by operating activities |
| 267,025 |
|
| 276,631 |
| |||
| Investing activities: | |||||||||
| Cash paid for capital expenditures |
| (208,792 | ) |
| (156,624 | ) | |||
| Proceeds from U.K. Sale |
| — |
|
| 1,511,020 |
| |||
| Settlement of foreign currency derivatives |
| — |
|
| (84,795 | ) | |||
| Proceeds from sale of property and equipment |
| 1,784 |
|
| 1,792 |
| |||
| Cash paid for purchase of finance lease |
| — |
|
| (31,401 | ) | |||
| Other |
| (6,802 | ) |
| 3,106 |
| |||
| Net cash (used in) provided by investing activities |
| (213,810 | ) |
| 1,243,098 |
| |||
| Financing activities: | |||||||||
| Borrowings on long-term debt |
| — |
|
| 425,000 |
| |||
| Borrowings on revolving credit facility |
| — |
|
| 430,000 |
| |||
| Principal payments on revolving credit facility |
| (85,000 | ) |
| (330,000 | ) | |||
| Principal payments on long-term debt |
| (13,281 | ) |
| (5,313 | ) | |||
| Repayment of long-term debt |
| — |
|
| (2,227,935 | ) | |||
| Payment of debt issuance costs |
| — |
|
| (7,964 | ) | |||
| Repurchase of shares for payroll tax withholding, net of proceeds from stock option exercises |
| (7,541 | ) |
| 16,072 |
| |||
| Contributions from noncontrolling partners in joint ventures |
| 13,178 |
|
| 1,800 |
| |||
| Distributions to noncontrolling partners in joint ventures |
| (1,004 | ) |
| (926 | ) | |||
| Other |
| 39 |
|
| (6,914 | ) | |||
| Net cash used in financing activities |
| (93,609 | ) |
| (1,706,180 | ) | |||
| Effect of exchange rate changes on cash |
| — |
|
| 4,067 |
| |||
| Net decrease in cash and cash equivalents |
| (40,394 | ) |
| (182,384 | ) | |||
| Cash and cash equivalents at beginning of the period |
| 133,813 |
|
| 378,697 |
| |||
| Cash and cash equivalents at end of the period | $ | 93,419 |
| $ | 196,313 |
|
| Acadia Healthcare Company, Inc. | |||||||||||||||||||||||
| Operating Statistics | |||||||||||||||||||||||
| (Unaudited, Revenue in thousands) | |||||||||||||||||||||||
Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||||||||||
| 2022 |
|
|
| 2021 |
|
| % Change |
|
| 2022 |
|
|
| 2021 |
|
| % Change | |||||
| U.S. Same Facility Results (1) | |||||||||||||||||||||||
| Revenue | $ | 640,343 |
| $ | 580,930 |
| 10.2 | % | $ | 1,859,200 |
| $ | 1,703,906 |
| 9.1 | % | |||||||
| Patient Days |
| 713,531 |
|
| 691,956 |
| 3.1 | % |
| 2,110,129 |
|
| 2,068,842 |
| 2.0 | % | |||||||
| Admissions |
| 45,445 |
|
| 45,192 |
| 0.6 | % |
| 133,204 |
|
| 136,183 |
| -2.2 | % | |||||||
| Average Length of Stay (2) |
| 15.7 |
|
| 15.3 |
| 2.5 | % |
| 15.8 |
|
| 15.2 |
| 4.3 | % | |||||||
| Revenue per Patient Day | $ | 897 |
| $ | 840 |
| 6.9 | % | $ | 881 |
| $ | 824 |
| 7.0 | % | |||||||
| Adjusted EBITDA margin (3) |
| 30.5 | % |
| 29.0 | % | 150 bps |
| 29.9 | % |
| 28.0 | % | 190 bps | |||||||||
| Adjusted EBITDA margin excluding income from provider relief fund |
| 29.3 | % |
| 29.0 | % | 30 bps |
| 29.0 | % |
| 28.0 | % | 100 bps | |||||||||
| U.S. Facility Results | |||||||||||||||||||||||
| Revenue | $ | 666,732 |
| $ | 587,559 |
| 13.5 | % | $ | 1,935,104 |
| $ | 1,720,914 |
| 12.4 | % | |||||||
| Patient Days |
| 738,702 |
|
| 701,352 |
| 5.3 | % |
| 2,179,805 |
|
| 2,088,477 |
| 4.4 | % | |||||||
| Admissions |
| 47,692 |
|
| 45,246 |
| 5.4 | % |
| 139,930 |
|
| 136,384 |
| 2.6 | % | |||||||
| Average Length of Stay (2) |
| 15.5 |
|
| 15.5 |
| -0.1 | % |
| 15.6 |
|
| 15.3 |
| 1.7 | % | |||||||
| Revenue per Patient Day | $ | 903 |
| $ | 838 |
| 7.7 | % | $ | 888 |
| $ | 824 |
| 7.7 | % | |||||||
| Adjusted EBITDA margin (3) |
| 28.7 | % |
| 28.3 | % | 40 bps |
| 28.3 | % |
| 27.7 | % | 60 bps | |||||||||
| Adjusted EBITDA margin excluding income from provider relief fund |
| 27.5 | % |
| 28.3 | % | -80 bps |
| 27.4 | % |
| 27.7 | % | -30 bps | |||||||||
| (1) Same facility results for the periods presented include facilities we have operated for more than one year and exclude certain closed services. | |||||||||||||||||||||||
| (2) Average length of stay is defined as patient days divided by admissions. | |||||||||||||||||||||||
| (3) For the three and nine months ended September 30, 2022, includes income from provider relief fund of $7.7 million and $16.2 million, respectively. |
| Acadia Healthcare Company, Inc. | ||||||||||||||||
| Reconciliation of Net Income Attributable to Acadia Healthcare Company, Inc. to Adjusted EBITDA | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||||
| 2022 |
|
|
| 2021 |
|
|
| 2022 |
|
|
| 2021 |
| ||
| (in thousands) | ||||||||||||||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 71,099 |
| $ | 66,126 |
| $ | 212,015 |
| $ | 120,357 |
| ||||
| Net income attributable to noncontrolling interests |
| 1,947 |
|
| 1,774 |
|
| 4,873 |
|
| 3,686 |
| ||||
| Loss from discontinued operations, net of taxes |
| — |
|
| — |
|
| — |
|
| 12,641 |
| ||||
| Provision for income taxes |
| 24,056 |
|
| 17,411 |
|
| 69,183 |
|
| 42,948 |
| ||||
| Interest expense, net |
| 18,003 |
|
| 15,706 |
|
| 50,355 |
|
| 61,420 |
| ||||
| Depreciation and amortization |
| 29,573 |
|
| 27,805 |
|
| 87,627 |
|
| 78,349 |
| ||||
| EBITDA |
| 144,678 |
|
| 128,822 |
|
| 424,053 |
|
| 319,401 |
| ||||
| Adjustments: | ||||||||||||||||
| Equity-based compensation expense (a) |
| 7,240 |
|
| 8,923 |
|
| 21,745 |
|
| 24,988 |
| ||||
| Transaction-related expenses (b) |
| 10,859 |
|
| 3,035 |
|
| 18,381 |
|
| 9,320 |
| ||||
| Debt extinguishment costs (c) |
| — |
|
| — |
|
| — |
|
| 24,650 |
| ||||
| Loss on impairment (d) |
| — |
|
| 1,079 |
|
| — |
|
| 24,293 |
| ||||
| Adjusted EBITDA | $ | 162,777 |
| $ | 141,859 |
| $ | 464,179 |
| $ | 402,652 |
| ||||
| Adjusted EBITDA margin |
| 24.4 | % |
| 24.1 | % |
| 24.0 | % |
| 23.4 | % | ||||
| Adjusted EBITDA excluding income from provider relief fund | $ | 155,121 |
| $ | 141,859 |
| $ | 447,973 |
| $ | 402,652 |
| ||||
| Adjusted EBITDA margin excluding income from provider relief fund |
| 23.3 | % |
| 24.1 | % |
| 23.1 | % |
| 23.4 | % | ||||
| See footnotes on page 12. |
| Acadia Healthcare Company, Inc. | ||||||||||||||
| Reconciliation of Net Income Attributable to Acadia Healthcare Company, Inc. to | ||||||||||||||
| Adjusted Income Attributable to Acadia Healthcare Company, Inc. | ||||||||||||||
| (Unaudited) | ||||||||||||||
Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
| 2022 |
|
|
| 2021 |
|
| 2022 |
|
|
| 2021 | ||
| (in thousands, except per share amounts) | ||||||||||||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 71,099 |
| $ | 66,126 | $ | 212,015 |
| $ | 120,357 | ||||
| Loss from discontinued operations, net of taxes |
| — |
|
| — |
| — |
|
| 12,641 | ||||
| Adjustments to income: | ||||||||||||||
| Transaction-related expenses (b) |
| 10,859 |
|
| 3,035 |
| 18,381 |
|
| 9,320 | ||||
| Debt extinguishment costs (c) |
| — |
|
| — |
| — |
|
| 24,650 | ||||
| Loss on impairment (d) |
| — |
|
| 1,079 |
| — |
|
| 24,293 | ||||
| Provision for income taxes |
| 24,056 |
|
| 17,411 |
| 69,183 |
|
| 42,948 | ||||
| Adjusted income from continuing operations before income taxes attributable to Acadia Healthcare Company, Inc. |
| 106,014 |
|
| 87,651 |
| 299,579 |
|
| 234,209 | ||||
| Income tax effect of adjustments to income (e) |
| (49,514 | ) |
| 22,508 |
| - |
|
| 62,709 | ||||
| Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. |
| 155,528 |
|
| 65,143 |
| 299,579 |
|
| 171,500 | ||||
| Income from provider relief fund, net of taxes |
| (5,579 | ) |
| — |
| (11,809 | ) |
| — | ||||
| Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. excluding income from provider relief fund | $ | 149,949 |
| $ | 65,143 | $ | 287,770 |
| $ | 171,500 | ||||
| Weighted-average shares outstanding - diluted |
| 91,723 |
|
| 90,889 |
| 91,668 |
|
| 90,604 | ||||
| Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. per diluted share | $ | 1.70 |
| $ | 0.72 | $ | 3.27 |
| $ | 1.89 | ||||
| Income from provider relief fund, net of taxes, per diluted share |
| (0.06 | ) |
| — |
| (0.13 | ) |
| — | ||||
| Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc., excluding income from provider relief fund, per diluted share | $ | 1.64 |
| $ | 0.72 | $ | 3.14 |
| $ | 1.89 | ||||
| See footnotes on page 12. |
| Acadia Healthcare Company, Inc. | |||||||||||
| Footnotes | |||||||||||
| We have included certain financial measures in this press release, including those listed below, which are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the SEC. These non-GAAP financial measures include, and are defined, as follows: | |||||||||||
| • EBITDA: net income attributable to Acadia Healthcare Company, Inc. adjusted for net income attributable to noncontrolling interests, loss from discontinued operations, net of taxes, provision for income taxes, net interest expense and depreciation and amortization. | |||||||||||
| • Adjusted EBITDA: EBITDA adjusted for equity-based compensation expense, transaction-related expenses, debt extinguishment costs and loss on impairment. | |||||||||||
| • Adjusted EBITDA excluding income from provider relief fund: Adjusted EBITDA adjusted for income from provider relief fund. | |||||||||||
| • Adjusted EBITDA margin: Adjusted EBITDA divided by revenue. | |||||||||||
| • Adjusted EBITDA margin excluding income from provider relief fund: Adjusted EBITDA excluding income from provider relief fund divided by revenue. | |||||||||||
| • Adjusted income from continuing operations before income taxes attributable to Acadia Healthcare Company, Inc.: net income attributable to Acadia Healthcare Company, Inc. adjusted for loss from discontinued operations, net of taxes, transaction-related expenses, debt extinguishment costs, loss on impairment and provision for income taxes. | |||||||||||
| • Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc.: Adjusted income from continuing operations before income taxes attributable to Acadia Healthcare Company, Inc. adjusted for the income tax effect of adjustments to income. | |||||||||||
| • Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. excluding income from provider relief fund: Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. adjusted for income from provider relief fund. | |||||||||||
| • Adjusted income attributable to Acadia Healthcare Company, Inc.: the sum of Adjusted income from continuing operations before income taxes attributable to Acadia Healthcare Company, Inc. and income tax effect of adjustments to income. | |||||||||||
| • Adjusted income attributable to Acadia Healthcare Company, Inc. excluding income from provider relief fund: Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. adjusted for income from provider relief fund. | |||||||||||
| The non-GAAP financial measures presented herein 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”). The non-GAAP financial measures presented herein 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 these non-GAAP financial measures may not be comparable to similarly titled measures of other companies. We have included information concerning the non-GAAP financial measures 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 similar non-GAAP financial measures when reporting their results. Because the non-GAAP financial measures are not measurements determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Our presentation of these non-GAAP financial measures 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 and whether including or excluding income from provider relief fund, 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 primarily related to termination, restructuring, management transition, acquisition and other similar costs. | |||||||||||
| (c) Represents debt extinguishment costs recorded during the first quarter of 2021 in connection with the redemption of the 5.625% senior notes and 6.500% senior notes and the termination of the prior credit facility. | |||||||||||
| (d) The Company opened a 260-bed replacement hospital in Pennsylvania and recorded a non-cash property impairment charge of $23.2 million for the existing facility during the second quarter of 2021. Additionally, during the third quarter of 2021, the Company recorded a $1.1 million non-cash property impairment charge for one facility in Louisiana resulting from hurricane damage. | |||||||||||
| (e) Represents the income tax effect of adjustments to income based on tax rates of 25.6% and 25.7% for the three months ended September 30, 2022 and 2021, respectively, and 25.6% and 26.8% for the nine months ended September 30, 2022 and 2021, respectively. |
View source version on businesswire.com:https://www.businesswire.com/news/home/20221031005654/en/
CONTACT: Gretchen Hommrich
Vice President, Investor Relations
(615) 861-6000
KEYWORD: TENNESSEE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: MENTAL HEALTH HEALTH INFECTIOUS DISEASES HOSPITALS PHYSICAL THERAPY OTHER HEALTH MANAGED CARE
SOURCE: Acadia Healthcare Company, Inc.
Copyright Business Wire 2022.
PUB: 10/31/2022 04:05 PM/DISC: 10/31/2022 04:06 PM
http://www.businesswire.com/news/home/20221031005654/en