Full Press Release Details
Healthcare Reports Second Quarter Adjusted EPS Increase of 23.1% to
$0.32 on 20.5% Growth in Revenue
Facility Revenue Increases 11.5%
2014 Adjusted Earnings Guidance in Range of $1.44 to $1.46 per Diluted
FRANKLIN, Tenn.--(BUSINESS WIRE)--July 29, 2014--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
second quarter and six months ended June 30, 2014. For the quarter,
revenue was $213.8 million, up 20.5% from $177.5 million for the second
quarter of 2013. Income from continuing operations was $22.5 million, or
$0.43 per diluted share, for the second quarter of 2014 compared with
$12.3 million, or $0.24 per diluted share, for the second quarter of
2013. Adjusted income from continuing operations rose 26.8% to $16.6
million for the second quarter of 2014 from $13.1 million for the second
quarter of 2013, while adjusted income from continuing operations per
diluted share increased 23.1% to $0.32 from $0.26. The adjusted results
exclude a gain on foreign currency derivatives of $13.7 million for the
second quarter of 2014 related to Acadia's recent acquisition of
Partnerships in Care (PiC), as well as transaction-related expenses of
$3.0 million and $1.4 million for the second quarter of 2014 and 2013,
respectively. A reconciliation of all GAAP and non-GAAP financial
results in this release is on pages 8 and 9.
Revenue for the first six months of 2014 grew 22.6% to $415.2 million
from $338.7 million for the comparable period in 2013. Income from
continuing operations was $35.5 million, or $0.69 per diluted share, for
the first half of 2014 compared with $16.3 million, or $0.33 per diluted
share, for the first half of 2013. Adjusted income from continuing
operations was $30.6 million for the first six months of 2014, up 29.3%
from $23.7 million for the first six months of 2013, while adjusted
income from continuing operations per diluted share increased 27.7% to
$0.60 from $0.47. The adjusted results exclude a gain on foreign
currency derivatives of $13.7 million for the first six months of 2014,
debt extinguishment costs of $9.4 million for the first six months of
2013 and transaction-related expenses of $4.6 million and $2.8 million
for the first half of 2014 and 2013, respectively.
"We are pleased to report a continuation of strong operating and
financial results for Acadia's second quarter," said Joey Jacobs,
Chairman and Chief Executive Officer of Acadia. "Among the quarter's
highlights, we produced growth in revenue and adjusted income from
continuing operations in excess of 20%, increased our margins and
achieved a double-digit increase in same facility revenue. During the
quarter, we also announced the acquisition of U.K.-based PiC, the
country's second-largest independent behavioral healthcare provider,
which we completed on July 1, 2014. PiC adds 23 inpatient psychiatric
facilities with over 1,200 licensed beds to Acadia's operations and, for
2013, produced revenue of approximately $285 million and adjusted EBITDA
of approximately $75 million. In addition to being substantially
accretive to our operations, we expect this transaction to position us
well in the U.K.'s independent behavioral health market, with meaningful
opportunities for organic growth and further acquisitions.
"Acadia's revenue growth for the second quarter was primarily due to the
addition of approximately 675 licensed beds in the 12 months ended June
30, 2014, with 259 added through acquisitions and 416 beds added to
existing facilities and two de novo facilities. Our 11.5% growth in same
facility revenue reflected the positive impact of the beds added to
existing facilities, as well as our continuous efforts to generate
additional revenues in each facility. These beds helped produce an
increase in patient days of 10.6%. Our second quarter revenue per
patient day rose 0.8%.
"The strong operating leverage created by double-digit same facility
revenue growth, combined with increased operating efficiencies, produced
a 150 basis point increase in our same facility EBITDA margin to 26.3%.
The Company's adjusted consolidated EBITDA increased 20.5% to $44.7
million for the second quarter of 2014.
"Acadia continues to evaluate potential acquisitions and develop new
beds in existing facilities. We are well positioned to finance these
growth strategies, with availability under our revolving credit facility
of approximately $175 million subsequent to the completion of the PiC
acquisition and with substantial net cash flows from continuing
operations, which totaled approximately $22 million for the second
quarter. Including the impact of the PiC transaction, our ratio of total
net debt to trailing 12 months adjusted EBITDA is approximately 4.2,
compared with 4.2 at the end of the first quarter of 2014."
Acadia today affirmed its guidance for 2014 adjusted earnings per
diluted share in a range of $1.44 to $1.46, which was recently revised
from the previous range of $1.26 to $1.29 to account for the accretive
impact of the PiC transaction on the second half of 2014. 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 second quarter
financial results at 9:00 a.m. Eastern Time on Wednesday, July 30, 2014.
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 August 12, 2014.
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 the PiC 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 the government and