Full Press Release Details
Healthcare Reports First Quarter 2019 Revenue of $760.6 Million, EPS of
$0.34 and Adjusted EPS of $0.39
Facility Revenue Grows 6.1%
FRANKLIN, Tenn.--(BUSINESS WIRE)--April 30, 2019--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
first quarter ended March 31, 2019.
The Company reported revenue of $760.6 million for the first quarter of
2019, a 2.5% increase compared with $742.2 million for the first quarter
of 2018. Net income attributable to Acadia stockholders was $29.5
million, or $0.34 per diluted share, for the first quarter of 2019
compared with $50.8 million, or $0.58 per diluted share, for the first
quarter of 2018. Results for the first quarter of 2019 include
transaction-related expenses of $4.3 million and the income tax effect
of adjustments to income of $0.5 million based on a tax rate of 16.6%.
Adjusted income attributable to Acadia stockholders was $34.3 million,
or $0.39 per diluted share, for the first quarter of 2019. Results for
the first quarter of 2018 included a tax benefit of $10.5 million due to
the Tax Cuts and Jobs Act of 2017, transaction-related expenses of $4.8
million, debt extinguishment costs of $0.9 million, and the income tax
effect of adjustments to income of $0.9 million based on a tax rate of
15.9%. Adjusted income attributable to Acadia stockholders for the first
quarter of 2018 was $45.2 million, or $0.52 per diluted share.
A reconciliation of all non-GAAP financial results in this release
appears beginning on page 8.
"We are pleased to report a solid start to 2019 with our first quarter
financial and operating results in line with expectations," said Debbie
Osteen, Chief Executive Officer of Acadia Healthcare Company. "Our U.S.
operations performed well with favorable trends in key operating
metrics. The results from our U.K. operations showed consistent top line
growth with revenue within our anticipated range. We remain focused on
implementing our plans to improve the operating performance of our U.K.
"We continued to execute our growth strategy by expanding our service
offerings and capacity with the addition of 260 beds during the first
quarter. These expansions included the addition of 100 beds to existing
facilities and 160 beds relating to two previously announced de novo
facilities, Mount Carmel Behavioral Health, a joint venture, in
Columbus, Ohio, and Rio Vista Behavioral Health in El Paso, Texas. On
February 15, 2019, we completed two acquisitions - The Whittier
Pavilion, a 71-bed inpatient psychiatric hospital located in Haverhill,
Massachusetts, and Mission Treatment, a system of nine comprehensive
treatment centers that provide medication-assisted treatment and
counseling for people struggling with narcotics addiction in California,
Nevada, Arizona and Oklahoma. Exclusive of acquisitions, we expect to
add approximately 700 beds to existing and new facilities during 2019,"
The Company's total same facility revenue increased 5.6% for the first
quarter of 2019 compared with the first quarter of 2018, including a
2.8% increase in patient days and a 2.7% increase in revenue per patient
day. Total same facility EBITDA margin declined 150 basis points to
22.7%. U.S. same facility revenue rose 6.1%, on a 4.3% increase in
patient days and a 1.7% increase in revenue per patient day. U.S. same
facility EBITDA margin was consistent with the first quarter last year
at 26.1%. U.K. same facility revenue grew 4.7% for the first quarter of
2019 from the first quarter last year, including a 0.9% increase in
patient days and a 3.7% increase in revenue per patient day. U.K. same
facility EBITDA margin declined 430 basis points to 16.3%. Acadia's
consolidated adjusted EBITDA for the first quarter of 2019 was $136.0
million, compared with $145.7 million for the first quarter of 2018.
Osteen added, "As we noted on our fourth quarter 2018 conference call,
Acadia's senior management team and Board of Directors are conducting a
strategic review of our entire operations, and we expect to provide an
update of this review in late May."
Acadia today affirmed its previously established financial guidance for
Revenue for 2019 in a range of $3.15 billion to $3.2 billion;
Adjusted EBITDA for 2019 in a range of $610 million to $630 million;
Adjusted earnings per diluted share for 2019 in a range of $2.15 to
An exchange rate of $1.30 per British Pound Sterling and a tax rate of
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 attributable to
noncontrolling interests, provision for (benefit from) 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 2019
financial results at 9:00 a.m. Eastern Time on Wednesday, May 1, 2019. 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 15, 2019.
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 relating to 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);
(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