Full Press Release Details
Healthcare Reports First Quarter Revenue of $742.2 Million, EPS of $0.58
and Adjusted EPS of $0.52
Facility Revenue Grows 6.1%
2018 Financial Guidance for Additional Expected Benefit from Tax Reform
FRANKLIN, Tenn.--(BUSINESS WIRE)--May 1, 2018--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
first quarter ended March 31, 2018. Revenue increased 9.3% for the
quarter to $742.2 million from $679.2 million for the first quarter of
2017. Net income attributable to Acadia stockholders was $50.8 million,
or $0.58 per diluted share, for the first quarter of 2018 compared with
$35.0 million, or $0.40 per diluted share, for the first quarter of
2017. Results for the first quarter of 2018 include a decrease in the
provision for income taxes of $10.5 million primarily related to a
change in the tax treatment of foreign earnings received in 2017 as more
information became available about the transition tax rules of the Tax
Cuts and Jobs Act of 2017 ("Tax Act"). In addition, results for the
quarter include a benefit of $0.03 per diluted share from a reduction in
the tax rate to 16% from the anticipated 21%. This change is primarily
attributable to the accounting treatment allowing the Company to
recognize the future benefit of the disallowed interest expense under
the Tax Act in 2018. The Company will continue to assess the impact of
the Tax Act on its business and consolidated financial statements.
Adjusted income from continuing operations attributable to Acadia
stockholders per diluted share ("adjusted EPS") was $0.52 for the first
quarter of 2018, a 13.0% increase from $0.46 for the first quarter of
2017, which excludes the impact of the tax benefit of $10.5 million and
debt extinguishment costs of $0.9 million for the first quarter of 2018
and transaction-related expenses of $4.8 million and $4.1 million for
the first quarter of 2018 and 2017, respectively. A reconciliation of
all non-GAAP financial results in this release appears beginning on page
"We produced a good start to 2018 with our first quarter financial and
operating results," said Joey Jacobs, Chairman and Chief Executive
Officer of Acadia. "Our U.S. same facility revenue was in the range we
anticipated, and our U.K. operations produced a rebound in same facility
revenue for the quarter, both of which led to improved same facility
margin. This growth was supported by 57 beds added to existing
facilities during the first quarter. We also opened a new 64-bed
facility, bringing total beds added for the quarter to 121. We continue
to plan the addition of more than 800 beds to existing and new
facilities during 2018."
The Company's total same facility revenue increased 5.6% for the first
quarter of 2018 compared with the first quarter of 2017, including a
2.0% increase in patient days and a 3.5% increase in revenue per patient
day. Total same facility EBITDA margin rose 30 basis points to 24.2%.
U.S. same facility revenue rose 6.1%, on a 2.0% increase in patient days
and a 4.0% increase in revenue per patient day. U.S. same facility
EBITDA margin increased 30 basis points to 26.3%. U.K. same facility
revenue grew 4.6% for the first quarter of 2018 from the first quarter
last year, including a 1.9% increase in patient days and a 2.6% increase
in revenue per patient day. U.K. same facility EBITDA margin rose 30
basis points to 20.3%.
Acadia's consolidated adjusted EBITDA for the first quarter of 2018 was
$145.7 million, up 6.9% from $136.4 million for the first quarter of
Acadia today revised its financial guidance for 2018, primarily due to
additional information becoming available about the Tax Act, 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 $2.58 to
An exchange rate of $1.35 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 (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 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
financial results at 9:00 a.m. Eastern Time on Wednesday, May 2, 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 May 15, 2018.
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, governmental investigations 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