Full Press Release Details
Healthcare Reports 27.9% Growth in First Quarter Adjusted EPS to $0.55
on Revenue of $616.8 Million
Record Quarterly Same Facility EBITDA Margin of 27.1% on Same Facility
Revenue Growth of 9.2%
Guidance for 2016 Adjusted Earnings per Diluted Share in Range of $2.81
FRANKLIN, Tenn.--(BUSINESS WIRE)--April 28, 2016--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
first quarter ended March 31, 2016. Revenue was $616.8 million for the
first quarter, an increase of 68.6% from $365.8 million for the first
quarter of 2015. Income from continuing operations attributable to
Acadia stockholders was $25.7 million, or $0.31 per diluted share, for
the first quarter of 2016 compared with $14.6 million, or $0.23 per
diluted share, for the first quarter last year. Adjusted income from
continuing operations attributable to Acadia stockholders was $45.8
million for the first quarter of 2016, up 69.1% from $27.1 million for
the first quarter of 2015, and adjusted EPS increased 27.9% to $0.55
from $0.43. Weighted average diluted shares outstanding increased 32.6%
for the first quarter of 2016 from the first quarter of 2015, primarily
due to the issuance of common stock in February and May 2015, the net
proceeds of which have primarily been used to fund acquisitions, and in
January and February 2016 related to the acquisition of Priory Group. A
reconciliation of all non-GAAP financial results in this release appears
"We are pleased to report that Acadia had a very successful first
quarter of 2016," said Joey Jacobs, Chairman and Chief Executive Officer
of Acadia. "In addition to producing an increase in adjusted EPS of
27.9%, we completed the acquisition of Priory Group, the leading
independent provider of behavioral health in the United Kingdom. We also
added 330 new beds in the U.S. and the U.K. during the quarter. As a
result of this substantial expansion of our inpatient facilities and
licensed beds, as well as our continued strong financial performance
during the quarter, we believe Acadia is well-positioned to produce
further significant profitable growth in 2016 and beyond."
The Company's first quarter revenue growth was driven by the
full-quarter inclusion of approximately 4,100 beds added through
acquisition or to existing or de novo facilities during 2015. With the
addition of Priory's approximately 7,100 beds in 324 inpatient
facilities, as well as the beds added during the first quarter, Acadia
has increased its beds by approximately 9,000 over the trailing 12
months ended March 31, 2016.
Acadia's consolidated same facility revenue rose 9.2% for the first
quarter of 2016 compared with the same prior-year quarter, reflecting an
8.6% increase in patient days and a 0.5% increase in revenue per patient
day. This increase was primarily driven by new beds added to facilities
in the same facility base, as well as by continuing initiatives at each
of these facilities to expand their revenue. With increased
same-facility revenue leveraging the fixed cost operations of these
facilities, and with ongoing productivity and efficiency efforts in
individual facilities, consolidated same facility EBITDA margin expanded
80 basis points for the first quarter to a quarterly record of 27.1%
from 26.3% for the first quarter last year. Acadia's consolidated
adjusted EBITDA for the first quarter increased 66.4% to $131.0 million,
or 21.2% of revenue, compared with $78.7 million, or 21.5% of revenue,
for the first quarter of 2015.
Mr. Jacobs added, "Our strong operating and financial results for the
first quarter demonstrate highly effective execution of our acquisition
and organic growth strategies. While the Priory acquisition gives us
more new beds in a single transaction than we have acquired in a
previous year, we expect to continue to evaluate additional, accretive
transactions during 2016. We continue to have significant availability
under our $300 million revolving credit facility, and we also expect to
continue generating substantial operating cash flow, which for the first
quarter of 2016 increased to $59.3 million from $18.1 million for the
first quarter of 2015."
Acadia today affirmed its guidance for 2016 adjusted earnings per
diluted share in a range of $2.81 to $2.86, an increase of approximately
26% to 28% over 2015. The Company's guidance assumes an exchange rate of
$1.45 per British Pound Sterling and a tax rate of 23%. 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 fourth quarter
financial results at 9:00 a.m. Eastern Time on Friday, April 29, 2016. 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 May 14, 2016.
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 Priory 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 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