Full Press Release Details
Healthcare Reports Fourth Quarter GAAP EPS of $0.48 and Adjusted EPS of
Financial Guidance for 2017
FRANKLIN, Tenn.--(BUSINESS WIRE)--February 23, 2017--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
fourth quarter and year ended December 31, 2016. Revenue for the quarter
increased 41.9% to $702.9 million from $495.3 million for the fourth
quarter of 2015. Net income from continuing operations attributable to
Acadia stockholders was $41.8 million, up 21.1% from $34.5 million for
the fourth quarter of 2015. With a 22.1% increase in weighted average
diluted shares outstanding, primarily due to the issuance of common
stock in January and February 2016, related to the acquisition of Priory
Group, net income from continuing operations attributable to Acadia
stockholders per diluted share decreased 2.0% to $0.48 for the fourth
quarter of 2016 from $0.49 for the fourth quarter of 2015. Adjusted
income from continuing operations attributable to Acadia stockholders
per diluted share was $0.59 for the fourth quarter of 2016 and 2015, on
a 22.1% increase in weighted average diluted shares outstanding. A
reconciliation of all non-GAAP financial results in this release appears
beginning on page 8.
For the year ended December 31, 2016, revenue increased 56.6% to $2.8
billion from $1.8 billion for the year ended December 31, 2015. Net
income from continuing operations attributable to Acadia stockholders
was $6.1 million, or $0.07 per diluted share, for 2016 compared with
$112.4 million, or $1.64 per diluted share, for 2015. Adjusted income
from continuing operations attributable to Acadia stockholders per
diluted share was $2.45 for 2016 compared with $2.23 for 2015, on a
25.7% increase in weighted average diluted shares outstanding.
"Acadia performed well during the fourth quarter and throughout 2016,"
remarked Joey Jacobs, Chairman and Chief Executive Officer of Acadia.
"We produced very strong growth in revenue and adjusted EBITDA, despite
the headwinds represented by the decline in the exchange rate of the
British Pound Sterling during the year, the unexpected delay in being
able to integrate our February 2016 Priory acquisition and the
disruption related to fulfilling our undertakings with the Competition
and Markets Authority in the U.K. through the sale of 22 behavioral
health facilities on November 30, 2016.
"As we indicate in our constant currency analysis on page 10 of this
release, the decline in the exchange rate, alone, had a negative impact
of $0.10 per diluted share on earnings for the fourth quarter of 2016
and $0.26 per diluted share for the year. We are working to complete the
integration of Priory with our existing Partnerships in Care operations
and expect to realize the anticipated cost synergies by the end of 2017.
"The Priory acquisition drove the majority of our revenue growth for
2016, as we gained nearly 6,200 net additional beds in the U.K. due to
the combined effect of the acquisition and the subsequent facility sale.
These beds represented a majority of the 71.7%, or over 7,100 bed,
increase in total beds at the end of 2016 from the end of 2015. This
increase includes 967 new beds added to existing or de novo facilities
during the year, consisting of 827 beds to existing facilities and 140
beds to de novo facilities. During the fourth quarter, 279 new beds were
added to existing facilities, and we expect to add more than 800 new
beds during 2017, primarily to existing facilities."
Acadia's revenue for the fourth quarter also benefitted from a
consolidated 6.3% increase in same facility revenue compared with the
fourth quarter of 2015. Same facility revenue in the U.S. grew 6.6%, on
a 6.5% increase in patient days and a 0.1% increase in revenue per
patient day. Same facility revenue in the U.K. grew 4.2%, on a 4.7%
increase in patient days offset by a 0.5% decrease in revenue per
patient day. Management believes that same facility results in the U.K.
reflected disruption throughout the fourth quarter resulting from the
focus, time and effort required to complete the divestiture in late
November and to begin the integration of Priory's operations into Acadia.
Acadia had $57.1 million in cash and cash equivalents at the end of
2016. Net cash provided by continuing operations increased 8.1% to
$106.6 million for the fourth quarter and 53.5% to $371.7 million for
2016, compared with the same prior-year periods. At year-end, the
Company had full availability under its $500 million revolving credit
Acadia today established its financial guidance for 2017 and the first
quarter of 2017, as follows:
Revenue for 2017 in a range of $2.85 billion to $2.9 billion;
Adjusted EBITDA for 2017 in a range of $625 million to $640 million;
Adjusted earnings per diluted share for 2017 in a range $2.40 to
Adjusted earnings per diluted share for the first quarter of 2017 in a
range of $0.45 to $0.47.
The Company's 2017 financial guidance assumes an exchange rate of $1.25
per British Pound Sterling and a tax rate of approximately 25%. 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 income from discontinued operations, net loss
attributable to noncontrolling interests, income tax provision, net
interest expense and depreciation and amortization. Adjusted EBITDA is
defined as EBITDA adjusted for equity-based compensation expense, debt
extinguishment costs, loss on divestiture, (gain) loss on foreign
currency derivatives and transaction-related expenses. Adjusted income
from continuing operations is defined as net income adjusted for income
from discontinued operations, provision for income taxes, debt
extinguishment costs, loss on divestiture, (gain) loss on foreign
currency derivatives, transaction-related expenses and income tax
provision reflecting tax effect of adjustments attributable to Acadia.
Acadia will hold a conference call to discuss its fourth quarter
financial results at 9:00 a.m. Eastern Time on Friday, February 24,
2017. 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 10, 2017.
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