[February 21, 2018] |
|
Acadia Healthcare Reports Fourth Quarter Revenue of $724.5 Million, EPS of $0.80 and Adjusted EPS of $0.61
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced financial
results for the fourth quarter and year ended December 31, 2017. Revenue
increased 3.1% for the quarter to $724.5 million from $702.9 million for
the fourth quarter of 2016. Net income attributable to Acadia
stockholders was $69.6 million, or $0.80 per diluted share, for the
fourth quarter of 2017 compared with $41.8 million, or $0.48 per diluted
share, for the fourth quarter of 2016. Results for the fourth quarter of
2017 include a non-cash decrease in the provision for income taxes of
$20.2 million from the impact of the Tax Cuts and Jobs Act of 2017 on
net deferred tax liabilities. This estimate will continue to be
evaluated as further information becomes available. Adjusted income from
continuing operations attributable to Acadia stockholders per diluted
share ("adjusted EPS") was $0.61 for the fourth quarter of 2017 compared
with $0.59 for the fourth quarter of 2016, excluding the impact of a tax
benefit of $20.2 million due to the Tax Cuts and Jobs Act of 2017;
transaction-related expenses of $5.4 million and $14.8 million for the
fourth quarter of 2017 and 2016, respectfully; and debt extinguishment
costs of $0.8 million and loss on divestiture of $4.1 million for the
fourth quarter of 2016. A reconciliation of all non-GAAP financial
results in this release appears beginning on page 8.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, commented,
"We are pleased with our results for the fourth quarter of 2017. We note
that the results for the fourth quarter of 2016 include revenue of
approximately $30 million and adjusted EPS of approximately $0.05 from
22 facilities in the U.K. that were divested on November 30, 2016."
Same facility revenue for Acadia's U.S. operations increased 6.6% for
the fourth quarter of 2017 from the fourth quarter of 2016, with a 3.1%
increase in patient days and a 3.3% increase in revenue per patient day.
U.S. same facility EBITDA margin was 26.3% for the latest quarter,
unchanged from the fourth quarter of 2016.
Same facility revenue for Acadia's U.K. operations increased 3.7% for
the fourth quarter of 2017 compared with the fourth quarter of 2016,
with a 1.5% increase in patient days and a 2.2% increase in revenue per
patient day. U.K. same facility EBITDA margin was 21.1% for the fourth
quarter compared with 22.3% for the fourth quarter of 2016. Mr. Jacobs
added, "The fourth quarter results for our operations in the U.K. met
our revised expectations. Our results still reflect a lower census than
normal and continued pressure from higher agency labor expense,
primarily for nurses and other clinical staff, due to tightening in the
U.K. labor market."
Total same facility revenue for the fourth quarter of 2017 increased
5.6%, with a 2.4% increase in patient days and a 3.1% increase in
revenue per patient day. Total same facility EBITDA margin was 24.5% for
the fourth quarter of 2017 compared with 24.9% for the fourth quarter of
2016. The growth in same facility revenue reflected the addition of 750
beds to existing and new facilities in 2017, of which 398 beds opened in
the fourth quarter. The Company expects to add more than 800 beds to
existing and new facilities in 2018.
Acadia's consolidated adjusted EBITDA for the fourth quarter of 2017 was
$153.5 million, or 21.2% of revenue, compared with $149.5 million, or
21.3% of revenue, for the fourth quarter of 2016.
Acadia today established its financial guidance for 2018 and the first
quarter of 2018, as follows:
-
Revenue for 2018 in a range of $3.04 billion to $3.08 billion;
-
Adjusted EBITDA for 2018 in a range of $637 million to $644 million;
-
Adjusted earnings per diluted share for 2018 in a range of $2.42 to
$2.48;
-
Adjusted earnings per diluted share for the first quarter of 2018 in a
range of $0.47 to $0.49; and
-
An exchange rate of $1.35 per British Pound Sterling and a tax rate of
approximately 21%.
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, (benefit from) 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, debt extinguishment
costs, loss on divestiture and gain on foreign currency derivatives.
Adjusted income is defined as net income adjusted for
transaction-related expenses, tax reform impact, debt extinguishment
costs, loss on divestiture, gain on foreign currency derivatives and
income tax effect of adjustments to income.
Acadia will hold a conference call to discuss its fourth quarter
financial results at 9:00 a.m. Eastern Time on Thursday, February 22,
2018. 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 through March 8, 2018.
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 U.K. and globally following the referendum in the
U.K. on June 23, 2016, in which voters approved an exit from the
European Union, or Brexit; (ii) the impact of fluctuations in foreign
exchange rates, including the devaluation of the British Pound Sterling
(GBP) relative to the U.S. Dollar (USD) following the Brexit vote; (iii)
Acadia's ability to complete acquisitions and successfully integrate the
operations of acquired facilities; (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 and governmental investigations, which could adversely affect
the price of our common stock and result in substantial fines 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; and (viii)
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
strategy. These factors and others are more fully described in Acadia's
periodic reports and other filings with the SEC.
About Acadia
Acadia is a provider of behavioral healthcare services. At December 31,
2017, Acadia operated a network of 582 behavioral healthcare facilities
with approximately 17,800 beds in 39 states, the United Kingdom and
Puerto Rico. Acadia provides behavioral health and addiction services to
its patients in a variety of settings, including inpatient psychiatric
hospitals, specialty treatment facilities, residential treatment centers
and outpatient clinics.
|
Acadia Healthcare Company, Inc.
|
Condensed Consolidated Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Revenue before provision for doubtful accounts
|
|
$
|
733,538
|
|
|
$
|
713,784
|
|
|
$
|
2,877,234
|
|
|
$
|
2,852,823
|
|
Provision for doubtful accounts
|
|
|
(9,026
|
)
|
|
|
(10,896
|
)
|
|
|
(40,918
|
)
|
|
|
(41,909
|
)
|
Revenue
|
|
|
724,512
|
|
|
|
702,888
|
|
|
|
2,836,316
|
|
|
|
2,810,914
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and benefits (including equity-based compensation
expense of $4,460, $7,356, $23,467 and $28,345, respectively)
|
|
|
390,582
|
|
|
|
384,297
|
|
|
|
1,536,160
|
|
|
|
1,541,854
|
|
Professional fees
|
|
|
53,451
|
|
|
|
47,516
|
|
|
|
196,223
|
|
|
|
185,486
|
|
Supplies
|
|
|
29,439
|
|
|
|
28,976
|
|
|
|
114,439
|
|
|
|
117,425
|
|
Rents and leases
|
|
|
19,320
|
|
|
|
18,335
|
|
|
|
76,775
|
|
|
|
73,348
|
|
Other operating expenses
|
|
|
82,666
|
|
|
|
81,606
|
|
|
|
331,827
|
|
|
|
312,556
|
|
Depreciation and amortization
|
|
|
37,754
|
|
|
|
33,958
|
|
|
|
143,010
|
|
|
|
135,103
|
|
Interest expense, net
|
|
|
45,230
|
|
|
|
46,010
|
|
|
|
176,007
|
|
|
|
181,325
|
|
Debt extinguishment costs
|
|
|
-
|
|
|
|
842
|
|
|
|
810
|
|
|
|
4,253
|
|
Loss on divestiture
|
|
|
-
|
|
|
|
4,070
|
|
|
|
-
|
|
|
|
178,809
|
|
Gain on foreign currency derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(523
|
)
|
Transaction-related expenses
|
|
|
5,431
|
|
|
|
14,840
|
|
|
|
24,267
|
|
|
|
48,323
|
|
Total expenses
|
|
|
663,873
|
|
|
|
660,450
|
|
|
|
2,599,518
|
|
|
|
2,777,959
|
|
Income before income taxes
|
|
|
60,639
|
|
|
|
42,438
|
|
|
|
236,798
|
|
|
|
32,955
|
|
(Benefit from) provision for income taxes
|
|
|
(9,050
|
)
|
|
|
1,012
|
|
|
|
37,209
|
|
|
|
28,779
|
|
Net income
|
|
|
69,689
|
|
|
|
41,426
|
|
|
|
199,589
|
|
|
|
4,176
|
|
Net (income) loss attributable to noncontrolling interests
|
|
|
(60
|
)
|
|
|
392
|
|
|
|
246
|
|
|
|
1,967
|
|
Net income attributable to Acadia Healthcare Company, Inc.
|
|
$
|
69,629
|
|
|
$
|
41,818
|
|
|
$
|
199,835
|
|
|
$
|
6,143
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to Acadia Healthcare Company, Inc.
stockholders:
|
|
|
|
|
|
Basic
|
|
$
|
0.80
|
|
|
$
|
0.48
|
|
|
$
|
2.30
|
|
|
$
|
0.07
|
|
Diluted
|
|
$
|
0.80
|
|
|
$
|
0.48
|
|
|
$
|
2.30
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
87,052
|
|
|
|
86,668
|
|
|
|
86,948
|
|
|
|
85,701
|
|
Diluted
|
|
|
87,166
|
|
|
|
86,890
|
|
|
|
87,060
|
|
|
|
85,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acadia Healthcare Company, Inc.
|
Condensed Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
|
(In thousands)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
67,290
|
|
|
$
|
57,063
|
|
Accounts receivable, net of allowance for doubtful accounts of
$39,803 and $38,916, respectively
|
|
|
296,925
|
|
|
|
263,327
|
|
Other current assets
|
|
|
107,335
|
|
|
|
107,537
|
|
Total current assets
|
|
|
471,550
|
|
|
|
427,927
|
|
Property and equipment, net
|
|
|
3,048,130
|
|
|
|
2,703,695
|
|
Goodwill
|
|
|
2,751,174
|
|
|
|
2,681,188
|
|
Intangible assets, net
|
|
|
87,348
|
|
|
|
83,310
|
|
Deferred tax assets - noncurrent
|
|
|
3,731
|
|
|
|
3,780
|
|
Derivative instruments
|
|
|
12,997
|
|
|
|
73,509
|
|
Other assets
|
|
|
49,572
|
|
|
|
51,317
|
|
Total assets
|
|
$
|
6,424,502
|
|
|
$
|
6,024,726
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
34,830
|
|
|
$
|
34,805
|
|
Accounts payable
|
|
|
102,299
|
|
|
|
80,034
|
|
Accrued salaries and benefits
|
|
|
99,047
|
|
|
|
105,068
|
|
Other accrued liabilities
|
|
|
141,213
|
|
|
|
122,958
|
|
Total current liabilities
|
|
|
377,389
|
|
|
|
342,865
|
|
Long-term debt
|
|
|
3,205,058
|
|
|
|
3,253,004
|
|
Deferred tax liabilities - noncurrent
|
|
|
80,333
|
|
|
|
78,520
|
|
Other liabilities
|
|
|
166,434
|
|
|
|
164,859
|
|
Total liabilities
|
|
|
3,829,214
|
|
|
|
3,839,248
|
|
Redeemable noncontrolling interests
|
|
|
22,417
|
|
|
|
17,754
|
|
Equity:
|
|
|
|
Common stock
|
|
|
871
|
|
|
|
867
|
|
Additional paid-in capital
|
|
|
2,517,545
|
|
|
|
2,496,288
|
|
Accumulated other comprehensive loss
|
|
|
(374,118
|
)
|
|
|
(549,570
|
)
|
Retained earnings
|
|
|
428,573
|
|
|
|
220,139
|
|
Total equity
|
|
|
2,572,871
|
|
|
|
2,167,724
|
|
Total liabilities and equity
|
|
$
|
6,424,502
|
|
|
$
|
6,024,726
|
|
|
|
|
|
|
|
Acadia Healthcare Company, Inc.
|
Condensed Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
|
(In thousands)
|
Operating activities:
|
|
|
|
|
Net income
|
|
$
|
199,589
|
|
|
$
|
4,176
|
|
Adjustments to reconcile net income to net cash provided by
continuing operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
143,010
|
|
|
|
135,103
|
|
Amortization of debt issuance costs
|
|
|
9,855
|
|
|
|
10,324
|
|
Equity-based compensation expense
|
|
|
23,467
|
|
|
|
28,345
|
|
Deferred income tax expense
|
|
|
31,372
|
|
|
|
28,647
|
|
Debt extinguishment costs
|
|
|
810
|
|
|
|
4,253
|
|
Loss on divestiture
|
|
|
-
|
|
|
|
178,809
|
|
Gain on foreign currency derivatives
|
|
|
-
|
|
|
|
(523
|
)
|
Other
|
|
|
11,412
|
|
|
|
4,715
|
|
Change in operating assets and liabilities, net of effect of
acquisitions:
|
|
|
|
|
Accounts receivable, net
|
|
|
(28,570
|
)
|
|
|
(15,718
|
)
|
Other current assets
|
|
|
20,808
|
|
|
|
(20,648
|
)
|
Other assets
|
|
|
(3,176
|
)
|
|
|
(4,354
|
)
|
Accounts payable and other accrued liabilities
|
|
|
(10,113
|
)
|
|
|
22,693
|
|
Accrued salaries and benefits
|
|
|
(8,988
|
)
|
|
|
(8,572
|
)
|
Other liabilities
|
|
|
11,794
|
|
|
|
4,484
|
|
Net cash provided by continuing operating activities
|
|
|
401,270
|
|
|
|
371,734
|
|
Net cash used in discontinued operating activities
|
|
|
(1,693
|
)
|
|
|
(10,256
|
)
|
Net cash provided by operating activities
|
|
|
399,577
|
|
|
|
361,478
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Cash paid for acquisitions, net of cash acquired
|
|
|
(18,191
|
)
|
|
|
(683,455
|
)
|
Cash paid for capital expenditures
|
|
|
(274,177
|
)
|
|
|
(307,472
|
)
|
Cash paid for real estate acquisitions
|
|
|
(41,057
|
)
|
|
|
(40,757
|
)
|
Settlement of foreign currency derivatives
|
|
|
-
|
|
|
|
523
|
|
Cash received on divestitures
|
|
|
-
|
|
|
|
373,266
|
|
Other
|
|
|
(3,101
|
)
|
|
|
(2,470
|
)
|
Net cash used in investing activities
|
|
|
(336,526
|
)
|
|
|
(660,365
|
)
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Borrowings on long-term debt
|
|
|
-
|
|
|
|
1,480,000
|
|
Borrowings on revolving credit facility
|
|
|
-
|
|
|
|
179,000
|
|
Principal payments on revolving credit facility
|
|
|
-
|
|
|
|
(337,000
|
)
|
Principal payments on long-term debt
|
|
|
(34,805
|
)
|
|
|
(49,941
|
)
|
Repayment of assumed debt
|
|
|
-
|
|
|
|
(1,348,389
|
)
|
Repayment of long-term debt
|
|
|
(22,500
|
)
|
|
|
(200,594
|
)
|
Payment of debt issuance costs
|
|
|
-
|
|
|
|
(36,649
|
)
|
Issuance of common stock, net
|
|
|
-
|
|
|
|
685,097
|
|
Common stock withheld for minimum statutory taxes, net
|
|
|
(3,455
|
)
|
|
|
(8,846
|
)
|
Other
|
|
|
686
|
|
|
|
(3,837
|
)
|
Net cash (used in) provided by financing activities
|
|
|
(60,074
|
)
|
|
|
358,841
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
7,250
|
|
|
|
(14,106
|
)
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
10,227
|
|
|
|
45,848
|
|
Cash and cash equivalents at beginning of the period
|
|
|
57,063
|
|
|
|
11,215
|
|
Cash and cash equivalents at end of the period
|
|
$
|
67,290
|
|
|
$
|
57,063
|
|
|
|
|
|
|
Effect of acquisitions:
|
|
|
|
|
Assets acquired, excluding cash
|
|
$
|
19,649
|
|
|
$
|
2,516,880
|
|
Liabilities assumed
|
|
|
(1,458
|
)
|
|
|
(1,616,543
|
)
|
Issuance of common stock in connection with acquisition
|
|
|
-
|
|
|
|
(216,882
|
)
|
Cash paid for acquisitions, net of cash acquired
|
|
$
|
18,191
|
|
|
$
|
683,455
|
|
|
|
|
|
|
|
Acadia Healthcare Company, Inc.
|
Operating Statistics
|
(Unaudited, Revenue in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
2017
|
|
2016
|
|
% Change
|
|
2017
|
|
2016
|
|
% Change
|
Same Facility Results (a,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
693,619
|
|
$
|
657,087
|
|
5.6%
|
|
$
|
2,602,315
|
|
$
|
2,464,289
|
|
5.6%
|
|
Patient Days
|
|
|
1,103,891
|
|
|
1,078,217
|
|
2.4%
|
|
|
4,173,465
|
|
|
4,027,440
|
|
3.6%
|
|
Admissions
|
|
|
39,120
|
|
|
37,031
|
|
5.6%
|
|
|
156,437
|
|
|
147,172
|
|
6.3%
|
|
Average Length of Stay (b)
|
|
|
28.2
|
|
|
29.1
|
|
-3.1%
|
|
|
26.7
|
|
|
27.4
|
|
-2.5%
|
|
Revenue per Patient Day
|
|
$
|
628
|
|
$
|
609
|
|
3.1%
|
|
$
|
624
|
|
$
|
612
|
|
1.9%
|
|
EBITDA margin
|
|
|
24.5%
|
|
|
24.9%
|
|
-40 bps
|
|
|
25.3%
|
|
|
25.6%
|
|
-30 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Same Facility Results (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
451,958
|
|
$
|
424,092
|
|
6.6%
|
|
$
|
1,774,461
|
|
$
|
1,665,344
|
|
6.6%
|
|
Patient Days
|
|
|
607,850
|
|
|
589,457
|
|
3.1%
|
|
|
2,429,171
|
|
|
2,318,598
|
|
4.8%
|
|
Admissions
|
|
|
36,868
|
|
|
35,029
|
|
5.2%
|
|
|
148,611
|
|
|
139,886
|
|
6.2%
|
|
Average Length of Stay (b)
|
|
|
16.5
|
|
|
16.8
|
|
-2.0%
|
|
|
16.3
|
|
|
16.6
|
|
-1.4%
|
|
Revenue per Patient Day
|
|
$
|
744
|
|
$
|
719
|
|
3.3%
|
|
$
|
730
|
|
$
|
718
|
|
1.7%
|
|
EBITDA margin
|
|
|
26.3%
|
|
|
26.3%
|
|
0 bps
|
|
|
27.0%
|
|
|
27.1%
|
|
-10 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K. Same Facility Results (a,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
241,661
|
|
$
|
232,995
|
|
3.7%
|
|
$
|
827,854
|
|
$
|
798,945
|
|
3.6%
|
|
Patient Days
|
|
|
496,041
|
|
|
488,760
|
|
1.5%
|
|
|
1,744,294
|
|
|
1,708,842
|
|
2.1%
|
|
Admissions
|
|
|
2,252
|
|
|
2,002
|
|
12.5%
|
|
|
7,826
|
|
|
7,286
|
|
7.4%
|
|
Average Length of Stay (b)
|
|
|
220.3
|
|
|
244.1
|
|
-9.8%
|
|
|
222.9
|
|
|
234.5
|
|
-5.0%
|
|
Revenue per Patient Day
|
|
$
|
487
|
|
$
|
477
|
|
2.2%
|
|
$
|
475
|
|
$
|
468
|
|
1.5%
|
|
EBITDA margin
|
|
|
21.1%
|
|
|
22.3%
|
|
-120 bps
|
|
|
21.7%
|
|
|
22.5%
|
|
-80 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Facility Results (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
454,529
|
|
$
|
426,811
|
|
6.5%
|
|
$
|
1,809,844
|
|
$
|
1,683,776
|
|
7.5%
|
|
Patient Days
|
|
|
608,353
|
|
|
589,656
|
|
3.2%
|
|
|
2,461,512
|
|
|
2,321,908
|
|
6.0%
|
|
Admissions
|
|
|
36,952
|
|
|
35,070
|
|
5.4%
|
|
|
151,467
|
|
|
140,691
|
|
7.7%
|
|
Average Length of Stay (b)
|
|
|
16.5
|
|
|
16.8
|
|
-2.1%
|
|
|
16.3
|
|
|
16.5
|
|
-1.5%
|
|
Revenue per Patient Day
|
|
$
|
747
|
|
$
|
724
|
|
3.2%
|
|
$
|
735
|
|
$
|
725
|
|
1.4%
|
|
EBITDA margin
|
|
|
25.5%
|
|
|
25.7%
|
|
-20 bps
|
|
|
26.3%
|
|
|
26.4%
|
|
-10 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K. Facility Results (c,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
269,983
|
|
$
|
261,393
|
|
3.3%
|
|
$
|
1,026,472
|
|
$
|
917,841
|
|
11.8%
|
|
Patient Days
|
|
|
686,708
|
|
|
691,560
|
|
-0.7%
|
|
|
2,735,132
|
|
|
2,476,178
|
|
10.5%
|
|
Admissions
|
|
|
2,554
|
|
|
2,306
|
|
10.8%
|
|
|
10,222
|
|
|
8,765
|
|
16.6%
|
|
Average Length of Stay (b)
|
|
|
268.9
|
|
|
299.9
|
|
-10.3%
|
|
|
267.6
|
|
|
282.5
|
|
-5.3%
|
|
Revenue per Patient Day
|
|
$
|
393
|
|
$
|
378
|
|
4.0%
|
|
$
|
375
|
|
$
|
371
|
|
1.2%
|
|
EBITDA margin
|
|
|
19.1%
|
|
|
20.6%
|
|
-150 bps
|
|
|
19.3%
|
|
|
20.8%
|
|
-150 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Facility Results (c,d)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
724,512
|
|
$
|
688,204
|
|
5.3%
|
|
$
|
2,836,316
|
|
$
|
2,601,617
|
|
9.0%
|
|
Patient Days
|
|
|
1,295,061
|
|
|
1,281,216
|
|
1.1%
|
|
|
5,196,644
|
|
|
4,798,086
|
|
8.3%
|
|
Admissions
|
|
|
39,506
|
|
|
37,376
|
|
5.7%
|
|
|
161,689
|
|
|
149,456
|
|
8.2%
|
|
Average Length of Stay (b)
|
|
|
32.8
|
|
|
34.3
|
|
-4.4%
|
|
|
32.1
|
|
|
32.1
|
|
0.1%
|
|
Revenue per Patient Day
|
|
$
|
559
|
|
$
|
537
|
|
4.2%
|
|
$
|
546
|
|
$
|
542
|
|
0.7%
|
|
EBITDA margin
|
|
|
23.1%
|
|
|
23.8%
|
|
-70 bps
|
|
|
23.8%
|
|
|
24.4%
|
|
-60 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Same-facility results for the periods presented exclude the 22
facilities in the U.K. sold on November 30, 2016, the elderly care
division of our U.K. operations and other closed services.
|
(b) Average length of stay is defined as patient days divided by
admissions.
|
(c) Total Facility results for the periods presented exclude the 22
facilities in the U.K. sold on November 30, 2016 and other closed
services.
|
(d) Revenue and revenue per patient day for the three months and
year ended December 31, 2016 is adjusted to reflect the foreign
currency exchange rate for the comparable periods of 2017 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 months and year ended December 31, 2016 is
1.33 and 1.29, respectively.
|
|
|
Acadia Healthcare Company, Inc.
|
Reconciliation of Net Income Attributable to Acadia Healthcare
Company, Inc. to Adjusted EBITDA
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
Net income attributable to Acadia Healthcare Company, Inc.
|
|
$
|
69,629
|
|
|
$
|
41,818
|
|
|
$
|
199,835
|
|
|
$
|
6,143
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
60
|
|
|
|
(392
|
)
|
|
|
(246
|
)
|
|
|
(1,967
|
)
|
(Benefit from) provision for income taxes
|
|
|
(9,050
|
)
|
|
|
1,012
|
|
|
|
37,209
|
|
|
|
28,779
|
|
Interest expense, net
|
|
|
45,230
|
|
|
|
46,010
|
|
|
|
176,007
|
|
|
|
181,325
|
|
Depreciation and amortization
|
|
|
37,754
|
|
|
|
33,958
|
|
|
|
143,010
|
|
|
|
135,103
|
|
EBITDA
|
|
|
143,623
|
|
|
|
122,406
|
|
|
|
555,815
|
|
|
|
349,383
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Equity-based compensation expense (a)
|
|
|
4,460
|
|
|
|
7,356
|
|
|
|
23,467
|
|
|
|
28,345
|
|
Transaction-related expenses (b)
|
|
|
5,431
|
|
|
|
14,840
|
|
|
|
24,267
|
|
|
|
48,323
|
|
Debt extinguishment costs (c)
|
|
|
-
|
|
|
|
842
|
|
|
|
810
|
|
|
|
4,253
|
|
Loss on divestiture (d)
|
|
|
-
|
|
|
|
4,070
|
|
|
|
-
|
|
|
|
178,809
|
|
Gain on foreign currency derivatives (e)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(523
|
)
|
Adjusted EBITDA
|
|
$
|
153,514
|
|
|
$
|
149,514
|
|
|
$
|
604,359
|
|
|
$
|
608,590
|
|
|
|
|
|
|
|
|
|
|
See footnotes on page 10.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31,
|
|
Year Ended December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Net income attributable to Acadia Healthcare Company, Inc.
|
|
$
|
69,629
|
|
|
$
|
41,818
|
|
|
$
|
199,835
|
|
|
$
|
6,143
|
|
|
|
|
|
|
|
|
|
|
Adjustments to income:
|
|
|
|
|
|
|
|
|
Transaction-related expenses (b)
|
|
|
5,431
|
|
|
|
14,840
|
|
|
|
24,267
|
|
|
|
48,323
|
|
Tax reform impact (f)
|
|
|
(20,188
|
)
|
|
|
-
|
|
|
|
(20,188
|
)
|
|
|
-
|
|
Debt extinguishment costs (c)
|
|
|
-
|
|
|
|
842
|
|
|
|
810
|
|
|
|
4,253
|
|
Loss on divestiture (d)
|
|
|
-
|
|
|
|
4,070
|
|
|
|
-
|
|
|
|
178,809
|
|
Gain on foreign currency derivatives (e)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(523
|
)
|
Income tax effect of adjustments to income (g)
|
|
|
(1,978
|
)
|
|
|
(10,229
|
)
|
|
|
(4,492
|
)
|
|
|
(26,760
|
)
|
Adjusted income attributable to Acadia Healthcare Company, Inc.
|
|
$
|
52,894
|
|
|
$
|
51,341
|
|
|
$
|
200,232
|
|
|
$
|
210,245
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding - diluted
|
|
|
87,166
|
|
|
|
86,890
|
|
|
|
87,060
|
|
|
|
85,972
|
|
|
|
|
|
|
|
|
|
|
Adjusted income attributable to Acadia Healthcare Company, Inc.
per diluted share
|
|
$
|
0.61
|
|
|
$
|
0.59
|
|
|
$
|
2.30
|
|
|
$
|
2.45
|
|
|
|
|
|
|
|
|
|
|
See footnotes on page 10.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, (benefit from) 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, debt extinguishment costs, loss on
divestiture and gain on foreign currency derivatives. We define
Adjusted income as net income adjusted for transaction-related
expenses, tax reform impact, debt extinguishment costs, loss on
divestiture, gain on foreign currency derivatives 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) As part of divestitures in the U.K. and U.S., the loss on
divestiture includes an allocation of goodwill to the disposal
groups of approximately $106.9 million, loss on the sale of
properties of approximately $45.0 million, transaction-related
expenses of approximately $26.8 million and write-off of intangible
assets of approximately $0.1 million.
|
|
|
|
(e) Represents the change in fair value of foreign currency
derivatives purchased by Acadia related to (i) acquisitions in the
U.K. and (ii) certain transfers of cash between the U.S. and U.K.
under the Company's cash management and foreign currency risk
management programs.
|
|
|
|
(f) Represents the Company's estimate of the one-time remeasurement
of deferred taxes pursuant to the enactment of the Tax Cuts and Jobs
Act. The estimate of the tax reform impact may be revised as further
information is evaluated.
|
|
|
|
(g) Represents the income tax effect of adjustments to income based
on tax rates of 19.87% and 17.96% for the three months ended
December 31, 2017 and 2016, respectively, and 23.65% and 20.90% for
the year ended December 31, 2017 and 2016, respectively. The
adjusted income tax provision for the year ended December 31, 2017
excludes the impact of adopting ASU 2016-09 "Improvements to
Employee Share-Based Payment Accounting" of approximately $1.7
million.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20180221006190/en/
[ Back To TMCnet.com's Homepage ]
|