Full Press Release Details
Healthcare Reports Second Quarter EPS of $0.67 and Adjusted EPS of $0.70
Increases to $765.7 Million on 5.2% Growth in Same Facility Revenue
2018 Financial Guidance
FRANKLIN, Tenn.--(BUSINESS WIRE)--July 30, 2018--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
second quarter and six months ended June 30, 2018. Revenue was $765.7
million for the quarter, up 7.0% from $715.9 million for the second
quarter of 2017. Net income attributable to Acadia stockholders for the
second quarter of 2018 was $58.8 million, or $0.67 per diluted share,
compared with $49.6 million, or $0.57 per diluted share, for the second
quarter of 2017. Adjusted income attributable to Acadia stockholders per
diluted share ("adjusted EPS") was $0.70 for the second quarter of 2018,
a 6.1% increase from $0.66 for the second quarter of 2017, which
excludes transaction-related expenses of $2.9 million and $9.1 million
for the second quarter of 2018 and 2017, respectively, as well as debt
extinguishment costs of $0.8 million for the second quarter last year. A
reconciliation of all non-GAAP financial results in this release appears
beginning on page 7.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, remarked,
"We are pleased to report that growth in Acadia's revenue and adjusted
EPS met our expectations for the second quarter. Our revenue growth was
primarily driven by the addition of nearly 900 beds during the 12 months
ended June 30, 2018. We added 155 of these beds during the second
quarter, including 67 beds to existing facilities in the U.S. and U.K.
and an 88-bed de novo facility through our joint-venture with Erlanger
Health System. For the full year 2018, we expect to add more than 800
beds to existing and new facilities."
For the second quarter of 2018, Acadia's total same facility revenue
increased 5.2% compared with the second quarter of 2017, including a
1.7% increase in patient days and a 3.4% increase in revenue per patient
day. Total same facility EBITDA margin declined 60 basis points to
25.7%. U.S. same facility revenue increased 5.0%, including a 1.9%
increase in patient days and a 3.1% increase in revenue per patient day.
U.S. same facility EBITDA margin declined 30 basis points to 28.1%. U.K.
same facility revenue grew 5.6% for the second quarter of 2018 from the
second quarter last year, including a 1.6% increase in patient days and
a 3.9% increase in revenue per patient day. U.K. same facility EBITDA
margin declined 110 basis points to 21.3%.
Acadia today updated its financial guidance for 2018 to reflect a lower
exchange rate in the second half of the year as well as higher interest
rates. The Company now assumes an exchange rate of $1.30 per British
Pound Sterling and interest expense to be approximately $95 million for
the second half of the year. The updated guidance is as follows:
Revenue for 2018 in a range of $3.02 billion to $3.06 billion;
Adjusted EBITDA for 2018 in a range of $632 million to $639 million;
Adjusted earnings per diluted share for 2018 in a range of $2.52 to
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, 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 Tuesday, July 31, 2018. A
live webcast of the conference call will be available at www.acadiahealthare.com
in the "Investors" section of the website. The webcast of the conference
call will be available through August 14, 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 relating to the U.K.'s departure
from the European Union; (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 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 that Acadia
may not generate sufficient cash from operations to service its debt and
meet its working capital and capital expenditure requirements; and
(viii) potential operating difficulties, labor costs, client
preferences, changes in competition and general economic or industry
conditions that may prevent Acadia from realizing the expected benefits
of its joint venture, de novo and other business strategies. These
factors and others are more fully described in Acadia's periodic reports
and other filings with the SEC.
Acadia is a provider of behavioral healthcare services. At June 30,
2018, Acadia operated a network of 585 behavioral healthcare facilities
with approximately 17,900 beds in 40 states, the United Kingdom and
Puerto Rico. Acadia provides behavioral health and addiction services to
its patients in a variety of settings, including inpatient psychiatric
hospitals, specialty treatment facilities, residential treatment centers