Full Press Release Details
Healthcare Reports Second Quarter GAAP EPS of $0.65 and Adjusted EPS of
Increase of 66.8% to $756.5 Million Includes 8.1% Growth in Same
Financial Guidance for 2016
FRANKLIN, Tenn.--(BUSINESS WIRE)--July 29, 2016--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
second quarter and six months ended June 30, 2016. Revenue for the
quarter increased 66.8% to $756.5 million from $453.7 million for the
second quarter of 2015. Income from continuing operations attributable
to Acadia stockholders was $56.4 million, or $0.65 per diluted share,
compared with $33.8 million, or $0.49 per diluted share, for the second
quarter of 2015. Adjusted income from continuing operations attributable
to Acadia stockholders grew 60.0% to $63.2 million for the second
quarter of 2016 from $39.5 million for the second quarter of 2015, and
adjusted EPS increased 28.1% to $0.73 from $0.57. Weighted average
diluted shares outstanding increased 26.4% for the second quarter of
2016 from the second quarter of 2015, primarily due to the issuance of
common stock in May 2015, the net proceeds of which were primarily used
to fund acquisitions, and in January and February 2016 related to the
acquisition of Priory Group. A reconciliation of all non-GAAP financial
results in this release appears on pages 8 and 9.
For the first six months of 2016, revenue was $1.4 billion, an increase
of 67.6% from $819.4 million for the first six months of 2015. Income
from continuing operations attributable to Acadia stockholders was $82.1
million, or $0.97 per diluted share, compared with $48.4 million, or
$0.74 per diluted share, for the first six months of 2015. Adjusted
income from continuing operations attributable to Acadia stockholders
was $109.0 million for the first half of 2016, an increase of 63.7% from
$66.6 million for the same period of 2015, and adjusted EPS increased
26.7% to $1.28 from $1.01. Weighted average diluted shares outstanding
increased 29.3% for the first six months of 2016 from the first six
"Acadia continued its strong earnings momentum in the second quarter,
with 28.1% growth in adjusted EPS on a 26.4% increase in shares
outstanding," commented Joey Jacobs, Chairman and Chief Executive
Officer of Acadia. "This growth reflected a substantial increase in our
beds during the last 12 months, primarily due to the completion of the
Priory Group acquisition in the first quarter of 2016, which brought
Acadia approximately 7,100 beds in 324 inpatient facilities. In total,
we added approximately 8,800 beds and 369 inpatient behavioral
healthcare facilities during this 12-month period. Approximately 680 of
these beds were additions to existing facilities and 260 were added
through three de novo acute inpatient facilities.
"During the second quarter, we added 125 new beds to existing facilities
in the U.S. and U.K. and 60 beds through opening one de novo facility.
We also completed three acquisitions with approximately 240 aggregate
beds. The acquisitions included Trust Point Hospital, a 100-bed acute
inpatient psychiatric facility in Murfreesboro, Tennessee, and two
addiction treatment residential facilities: the 108-bed Pocono Mountain
Recovery Center in Henryville, Pennsylvania, and 30-bed Serenity Knolls
in Forrest Knolls, California. In addition, we added two comprehensive
treatment centers during the quarter, one acquisition and one de novo.
We continue to believe that the growth in our beds positions Acadia well
to produce further significant profitable growth in 2016 and beyond."
In addition to the impact of acquisitions, the Company's revenue growth
for the second quarter of 2016 reflected an increase in same facility
revenue of 8.1% compared with the second quarter of 2015. Contributing
to this increase, patient days expanded 7.7% for the quarter and revenue
per patient day increased 0.4%. This increase was primarily due to new
beds added to facilities in the same facility base, complemented by
continuing initiatives at our facilities to grow their revenue. The
operating leverage created by this revenue growth drove a 70 basis point
improvement in consolidated same facility EBITDA margin to 28.1% versus
27.4% for the second quarter last year. Acadia's consolidated adjusted
EBITDA rose 62.8% to $172.2 million for the second quarter from $105.8
million for the same quarter last year, with consolidated adjusted
EBITDA margin of 22.8% and 23.3%, respectively.
Acadia completed the second quarter of 2016 with $30.7 million in cash
and cash equivalents. Net cash provided by continuing operations
increased 74.6% for the second quarter to $126.5 million compared with
the second quarter of 2015. At the end of the second quarter, the
Company had significant availability under its $300 million revolving
credit facility and its leverage ratio at June 30, 2016 was
Yesterday, the Competition and Markets Authority ("CMA") in the U.K.
announced that it is considering Acadia's undertakings to address the
CMA's concerns about competition in the provision of behavioral
healthcare services in certain markets related to Acadia's acquisition
of Priory Group. As a result, and in lieu of a phase 2 investigation,
Acadia intends to sell 19 of its U.K. healthcare facilities with
approximately 750 beds. These facilities produced aggregate annual
revenues of approximately $132 million and adjusted EBITDA of $39
million, before any overhead allocation and assuming an exchange rate of
$1.30 per British Pound Sterling.
Acadia today updated its guidance for 2016 adjusted earnings per diluted
share to $2.63 to $2.65, primarily as a result of the recent decline in
the U.S. Dollar/British Pound Sterling exchange rate, as well as the
delay in realizing cost synergies from the Priory Group transaction
until the undertakings are approved and accepted by the CMA. Acadia's
guidance assumes an exchange rate of $1.30 per British Pound Sterling
for the second half of 2016 and a tax rate of 23%. The Company's
guidance does not include any cost synergies in 2016 from the Priory
Group transaction, the impact of any future acquisitions or
transaction-related expenses.
Acadia will hold a conference call to discuss its second quarter
financial results at 11:00 a.m. Eastern Time on Friday, July 29, 2016. 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, 2016.
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