Full Press Release Details
Healthcare Reports Fourth Quarter Revenue of $724.5 Million, EPS of
$0.80 and Adjusted EPS of $0.61
Facility Revenue Grows 6.6%
2018 Financial Guidance
FRANKLIN, Tenn.--(BUSINESS WIRE)--February 21, 2018--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
fourth quarter and year ended December 31, 2017. Revenue increased 3.1%
for the quarter to $724.5 million from $702.9 million for the fourth
quarter of 2016. Net income attributable to Acadia stockholders was
$69.6 million, or $0.80 per diluted share, for the fourth quarter of
2017 compared with $41.8 million, or $0.48 per diluted share, for the
fourth quarter of 2016. Results for the fourth quarter of 2017 include a
non-cash decrease in the provision for income taxes of $20.2 million
from the impact of the Tax Cuts and Jobs Act of 2017 on net deferred tax
liabilities. This estimate will continue to be evaluated as further
information becomes available. Adjusted income from continuing
operations attributable to Acadia stockholders per diluted share
("adjusted EPS") was $0.61 for the fourth quarter of 2017 compared with
$0.59 for the fourth quarter of 2016, excluding the impact of a tax
benefit of $20.2 million due to the Tax Cuts and Jobs Act of 2017;
transaction-related expenses of $5.4 million and $14.8 million for the
fourth quarter of 2017 and 2016, respectfully; and debt extinguishment
costs of $0.8 million and loss on divestiture of $4.1 million for the
fourth quarter of 2016. A reconciliation of all non-GAAP financial
results in this release appears beginning on page 8.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, commented,
"We are pleased with our results for the fourth quarter of 2017. We note
that the results for the fourth quarter of 2016 include revenue of
approximately $30 million and adjusted EPS of approximately $0.05 from
22 facilities in the U.K. that were divested on November 30, 2016."
Same facility revenue for Acadia's U.S. operations increased 6.6% for
the fourth quarter of 2017 from the fourth quarter of 2016, with a 3.1%
increase in patient days and a 3.3% increase in revenue per patient day.
U.S. same facility EBITDA margin was 26.3% for the latest quarter,
unchanged from the fourth quarter of 2016.
Same facility revenue for Acadia's U.K. operations increased 3.7% for
the fourth quarter of 2017 compared with the fourth quarter of 2016,
with a 1.5% increase in patient days and a 2.2% increase in revenue per
patient day. U.K. same facility EBITDA margin was 21.1% for the fourth
quarter compared with 22.3% for the fourth quarter of 2016. Mr. Jacobs
added, "The fourth quarter results for our operations in the U.K. met
our revised expectations. Our results still reflect a lower census than
normal and continued pressure from higher agency labor expense,
primarily for nurses and other clinical staff, due to tightening in the
Total same facility revenue for the fourth quarter of 2017 increased
5.6%, with a 2.4% increase in patient days and a 3.1% increase in
revenue per patient day. Total same facility EBITDA margin was 24.5% for
the fourth quarter of 2017 compared with 24.9% for the fourth quarter of
2016. The growth in same facility revenue reflected the addition of 750
beds to existing and new facilities in 2017, of which 398 beds opened in
the fourth quarter. The Company expects to add more than 800 beds to
existing and new facilities in 2018.
Acadia's consolidated adjusted EBITDA for the fourth quarter of 2017 was
$153.5 million, or 21.2% of revenue, compared with $149.5 million, or
21.3% of revenue, for the fourth quarter of 2016.
Acadia today established its financial guidance for 2018 and the first
quarter of 2018, 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 $2.42 to
Adjusted earnings per diluted share for the first quarter of 2018 in a
range of $0.47 to $0.49; and
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, debt extinguishment
costs, loss on divestiture and gain on foreign currency derivatives.
Adjusted income is defined as net income adjusted for
transaction-related expenses, tax reform impact, debt extinguishment
costs, loss on divestiture, gain on foreign currency derivatives and
income tax effect of adjustments to income.
Acadia will hold a conference call to discuss its fourth quarter
financial results at 9:00 a.m. Eastern Time on Thursday, February 22,
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 March 8, 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,