Full Press Release Details
Healthcare First Quarter Adjusted EPS Increases 53.6% to $0.43
Guidance for 2015 Adjusted Earnings per Diluted Share to Range of $2.11
to $2.15 from Previous Range of $2.03 to $2.10
FRANKLIN, Tenn.--(BUSINESS WIRE)--April 28, 2015--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
first quarter ended March 31, 2015. Revenue increased 81.6% to $365.8
million from $201.4 million for the first quarter of 2014. Income from
continuing operations was $14.6 million, or $0.23 per diluted share, for
the first quarter of 2015 compared with $13.0 million, or $0.26 per
diluted share, for the first quarter of 2014. Adjusted income from
continuing operations increased 93.5% to $27.1 million for the first
quarter of 2015 from $14.0 million for the first quarter of 2014, while
adjusted income from continuing operations per diluted share increased
53.6% to $0.43 from $0.28. The adjusted results exclude
transaction-related expenses of $18.4 million and $1.6 million for the
first quarter of 2015 and 2014, respectively, and exclude a slight gain
on foreign currency derivatives for the first quarter of 2015. Weighted
average shares outstanding increased 24.6% for the first quarter of 2015
from the first quarter of 2014, primarily due to the issuance of common
stock in June 2014 and February 2015 related to acquisitions. A
reconciliation of all GAAP and non-GAAP financial results in this
release is on pages 7 and 8.
"Acadia produced strong first quarter growth in revenue and adjusted
EPS, primarily reflecting the acquisitions of CRC Health Group in the
latest quarter and Partnerships in Care (PiC) in July 2014," said Joey
Jacobs, Chairman and Chief Executive Officer of Acadia. "In aggregate,
we completed six acquisitions over the latest 12 months ended March 31,
2015, bringing 61 inpatient behavioral health facilities to Acadia with
more than 3,800 beds, as well as 88 comprehensive treatment facilities
(CTCs). These acquisitions include our purchase of Quality Addiction
Management, also in the first quarter of 2015, which operated seven CTCs.
"We are also pleased to report three additional acquisitions thus far in
the second quarter, Pastoral Healthcare, Choice Lifestyle and Vista
Healthcare, which added five facilities and 180 beds to our operations
in the United Kingdom. As a result of these transactions, we now operate
a total of 29 facilities in the U.K., with approximately 1,500 beds.
"In addition to the accretive impact of acquisitions, our first quarter
results reflected our continued strong organic growth, driven by the
addition of 441 beds primarily to existing facilities during the latest
12 months ended March 31, 2015. We added 185 of these beds during the
first quarter, which included the opening of a 90-bed de novo facility
in the U.S. and the addition of 39 beds to existing facilities in the
"Acadia's same facility revenue increased 8.5% for the quarter,
primarily due to new beds added to the same facility base over the
previous 12 months, as well as to our continuing initiatives to build
revenue at each facility. Same facility patient days grew 9.9% for the
first quarter, and revenue per patient day decreased 1.2%. The growth in
same facility revenue produced additional operating leverage, which,
combined with our efforts to improve facility productivity and
efficiency, resulted in a 40 basis point increase in our same facility
EBITDA margin to 24.1% for the quarter. Acadia's consolidated adjusted
EBITDA for the first quarter increased 100.4% to $78.7 million from
$39.3 million for the first quarter of 2014, while our consolidated
adjusted EBITDA margin increased 200 basis points to 21.5%."
Acadia today increased its guidance for 2015 adjusted earnings per
diluted share to a range of $2.11 to $2.15 from the previous range of
$2.03 to $2.10. The Company's guidance does not include the impact of
any future acquisitions or transaction-related expenses.
Acadia will hold a conference call to discuss its first quarter
financial results at 9:00 a.m. Eastern Time on Wednesday, April 29,
2015. A live webcast of the conference call will be available at www.acadiahealthcare.com
in the "Investor Relations" section of the website. The webcast of the
conference call will be available through May 14, 2015.
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) Acadia's
ability to complete acquisitions and successfully integrate the
operations of acquired facilities, including the PiC and CRC facilities;
(ii) Acadia's ability to add beds, expand services, enhance marketing
programs and improve efficiencies at its facilities; (iii) potential
reductions in payments received by Acadia from the government and
third-party payors; (iv) the occurrence of patient incidents, which
could adversely affect the price of our common stock and result in
incremental regulatory burdens and governmental investigations; (v) 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 (vi) potential operating difficulties, 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.
Acadia is a provider of inpatient behavioral healthcare services. Acadia
operates a network of 208 behavioral healthcare facilities with
approximately 8,600 beds in 37 states, the United Kingdom and Puerto
Rico. Acadia provides psychiatric and chemical dependency services to
its patients in a variety of settings, including inpatient psychiatric
hospitals, residential treatment centers, outpatient clinics and
therapeutic school-based programs.
| Acadia Healthcare Company, Inc. | ||||||||||
| Condensed Consolidated Statements of Income | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| (In thousands, except per share amounts) | ||||||||||
| Revenue before provision for doubtful accounts | $ | 374,158 | $ | 206,119 | ||||||
| Provision for doubtful accounts | (8,375 | ) | (4,701 | ) | ||||||
| Revenue | 365,783 | 201,418 | ||||||||
| Salaries, wages and benefits (including equity-based compensation expense of $3,894 and $1,764, respectively) | 205,871 | 117,575 | ||||||||
| Professional fees | 22,427 | 10,382 | ||||||||
| Supplies | 16,254 | 10,064 | ||||||||
| Rents and leases | 5,886 | 2,769 | ||||||||
| Other operating expenses | 40,527 | 23,110 | ||||||||
| Depreciation and amortization | 13,104 | 5,436 | ||||||||
| Interest expense, net | 22,146 | 9,707 | ||||||||
| Gain on foreign currency derivatives | (53 | ) | - | |||||||
| Transaction-related expenses | 18,416 | 1,579 | ||||||||
| Total expenses | 344,578 | 180,622 | ||||||||
| Income from continuing operations before income taxes | 21,205 | 20,796 | ||||||||
| Provision for income taxes | 6,613 | 7,775 | ||||||||
| Income from continuing operations | 14,592 | 13,021 | ||||||||
| Income from discontinued operations, net of income taxes | 2 | 37 | ||||||||
| Net income | $ | 14,594 | $ | 13,058 | ||||||
| Basic earnings per share: | ||||||||||
| Income from continuing operations | $ | 0.23 | $ | 0.26 | ||||||
| Income from discontinued operations | - | - | ||||||||
| Net income | $ | 0.23 | $ | 0.26 | ||||||
| Diluted earnings per share: | ||||||||||
| Income from continuing operations | $ | 0.23 | $ | 0.26 | ||||||
| Income from discontinued operations | - | - | ||||||||
| Net income | $ | 0.23 | $ | 0.26 | ||||||
| Weighted-average shares outstanding: | ||||||||||
| Basic | 62,530 | 50,120 | ||||||||
| Diluted | 62,894 | 50,486 |
| Acadia Healthcare Company, Inc. | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (Unaudited) | ||||||||||
| March 31, | December 31, | |||||||||
| 2015 | 2014 | |||||||||
| (In thousands) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 38,032 | $ | 94,040 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $24,096 and $22,449, respectively | 172,938 | 118,378 | ||||||||
| Deferred tax assets | 36,812 | 20,155 | ||||||||
| Other current assets | 77,596 | 41,570 | ||||||||
| Total current assets | 325,378 | 274,143 | ||||||||
| Property and equipment, net | 1,229,677 | 1,069,700 | ||||||||
| Goodwill | 1,904,055 | 802,986 | ||||||||
| Intangible assets, net | 58,508 | 21,636 | ||||||||
| Deferred tax assets - noncurrent | 40,494 | 13,141 | ||||||||
| Other assets | 69,033 | 41,984 | ||||||||
| Total assets | $ | 3,627,145 | $ | 2,223,590 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Current portion of long-term debt | $ | 35,309 | $ | 26,965 | ||||||
| Accounts payable | 64,918 | 48,696 | ||||||||
| Accrued salaries and benefits | 68,711 | 59,317 | ||||||||
| Other accrued liabilities | 61,722 | 30,956 | ||||||||
| Total current liabilities | 230,660 | 165,934 | ||||||||
| Long-term debt | 2,018,681 | 1,069,305 | ||||||||
| Deferred tax liabilities - noncurrent | 46,635 | 63,880 | ||||||||
| Other liabilities | 81,382 | 43,506 | ||||||||
| Total liabilities | 2,377,358 | 1,342,625 | ||||||||
| Equity: | ||||||||||
| Common stock | 654 | 592 | ||||||||
| Additional paid-in capital | 1,230,856 | 847,301 | ||||||||
| Accumulated other comprehensive loss | (97,759 | ) | (68,370 | ) | ||||||
| Retained earnings | 116,036 | 101,442 | ||||||||
| Total equity | 1,249,787 | 880,965 | ||||||||
| Total liabilities and equity | $ | 3,627,145 | $ | 2,223,590 |
| Acadia Healthcare Company, Inc. | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2015 | 2014 | |||||||||
| (In thousands) | ||||||||||
| Operating activities: | ||||||||||
| Net income | $ | 14,594 | $ | 13,058 | ||||||
| Adjustments to reconcile net income to net cash provided by continuing operating activities: | ||||||||||
| Depreciation and amortization | 13,104 | 5,436 | ||||||||
| Amortization of debt issuance costs | 1,468 | 644 | ||||||||
| Equity-based compensation expense | 3,894 | 1,764 | ||||||||
| Deferred income tax expense | 19,224 | 2,231 | ||||||||
| Income from discontinued operations, net of taxes | (2 | ) | (37 | ) | ||||||
| Gain on foreign currency derivatives | (53 | ) | - | |||||||
| Other | 378 | 13 | ||||||||
| Change in operating assets and liabilities, net of effect of acquisitions: | ||||||||||
| Accounts receivable, net | (6,957 | ) | (8,694 | ) | ||||||
| Other current assets | (23,758 | ) | 952 | |||||||
| Other assets | (636 | ) | (1,576 | ) | ||||||
| Accounts payable and other accrued liabilities | 1,274 | (1,839 | ) | |||||||
| Accrued salaries and benefits | (5,022 | ) | (5,407 | ) | ||||||
| Other liabilities | 580 | 770 | ||||||||
| Net cash provided by continuing operating activities | 18,088 | 7,315 | ||||||||
| Net cash provided by discontinued operating activities | 134 | 31 | ||||||||
| Net cash provided by operating activities | 18,222 | 7,346 | ||||||||
| Investing activities: | ||||||||||
| Cash paid for acquisitions, net of cash acquired | (49,618 | ) | (10,000 | ) | ||||||
| Cash paid for capital expenditures | (52,879 | ) | (21,649 | ) | ||||||
| Cash paid for real estate acquisitions | (1,722 | ) | (16,097 | ) | ||||||
| Other | (383 | ) | (178 | ) | ||||||
| Net cash used in investing activities | (104,602 | ) | (47,924 | ) | ||||||
| Financing activities: | ||||||||||
| Borrowings on long-term debt | 875,000 | 7,500 | ||||||||
| Borrowings on revolving credit facility | 93,000 | 40,500 | ||||||||
| Principal payments on long-term debt | (7,938 | ) | (1,875 | ) | ||||||
| Repayment of assumed CRC debt | (904,467 | ) | - | |||||||
| Payment of debt issuance costs | (22,191 | ) | (3,491 | ) | ||||||
| Common stock withheld for minimum statutory taxes, net | (5,110 | ) | (2,112 | ) | ||||||
| Excess tax benefit from equity awards | 4,310 | 2,730 | ||||||||
| Net cash provided by financing activities | 32,604 | 43,252 | ||||||||
| Effect of exchange rate changes on cash | (2,232 | ) | - | |||||||
| Net (decrease) increase in cash and cash equivalents | (56,008 | ) | 2,674 | |||||||
| Cash and cash equivalents at beginning of the period | 94,040 | 4,569 | ||||||||
| Cash and cash equivalents at end of the period | $ | 38,032 | $ | 7,243 | ||||||
| Effect of acquisitions: | ||||||||||
| Assets acquired, excluding cash | $ | 1,428,566 | $ | 10,500 | ||||||
| Liabilities assumed | (998,738 | ) | - | |||||||
| Issuance of common stock in connection with acquisition | (380,210 | ) | - | |||||||
| Prior year deposits paid for acquisitions | - | (500 | ) | |||||||
| Cash paid for acquisitions, net of cash acquired | $ | 49,618 | $ | 10,000 |