Full Press Release Details
Healthcare Reports Third Quarter EPS of $0.53 and Adjusted EPS of $0.55
Increases to $760.9 Million on 6.2% Growth in Same Facility Revenue
2018 Financial Guidance
FRANKLIN, Tenn.--(BUSINESS WIRE)--November 5, 2018--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
third quarter and nine months ended September 30, 2018. Revenue was
$760.9 million for the third quarter, up 6.2% from $716.7 million for
the third quarter of 2017. Net income attributable to Acadia
stockholders for the third quarter of 2018 was $46.2 million, or $0.53
per diluted share, compared with $45.6 million, or $0.52 per diluted
share, for the third quarter of 2017. Adjusted income attributable to
Acadia stockholders per diluted share ("adjusted EPS") was $0.55 for the
third quarter of 2018, compared with $0.58 for the third quarter of
2017, which excludes transaction-related expenses of $2.4 million and
$5.7 million for the third quarter of 2018 and 2017, respectively. A
reconciliation of all non-GAAP financial results in this release appears
beginning on page 7.
For the third quarter of 2018, Acadia's total same facility revenue
increased 6.2% compared with the third quarter of 2017, including a 2.4%
increase in patient days and a 3.8% increase in revenue per patient day.
Total same facility EBITDA margin declined 100 basis points to 23.9%.
U.S. same facility revenue increased 7.2%, including a 3.3% increase in
patient days and a 3.8% increase in revenue per patient day. U.S. same
facility EBITDA margin increased 60 basis points to 27.4%. U.K. same
facility revenue grew 4.4% for the third quarter of 2018 from the third
quarter last year, including a 1.3% increase in patient days and a 3.1%
increase in revenue per patient day. U.K. same facility EBITDA margin
declined 450 basis points to 16.9%.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, remarked,
"Our U.S. operations performed well with favorable trends in all key
operating metrics. However, the third quarter financial results for our
operations in the U.K. were affected by a lower census and higher
operating expenses than expected. Our operating costs were significantly
higher, primarily due to the ongoing nursing and clinical staff shortage
and our dependence on higher cost agency labor. Our census did not reach
a sufficient level to absorb the higher wages and other operating costs,
which adversely affected our margins for the third quarter."
"During the third quarter, we added 132 beds to existing facilities,
bringing the total up to 806 beds added to new and existing facilities
since the end of the third quarter a year ago. For the full year 2018,
we expect to add more than 800 beds to existing and new facilities,"
Following the end of the third quarter, the Company signed definitive
agreements for two acquisitions. Mission Treatment operates nine
comprehensive treatment centers that provide medication-assisted
treatment and counseling for people struggling with narcotics addiction
in California, Nevada, Arizona and Oklahoma. Acadia also will acquire
The Whittier Pavilion, a 71-bed inpatient psychiatric hospital located
in Haverhill, Massachusetts. The hospital is part of the Whittier Health
Network, a family owned and operated healthcare system that has provided
hospital and community services since 1982.
Acadia today updated its financial guidance for 2018, consistent with
the Company's performance for the first nine months of 2018 and its
expectations for the fourth quarter of the year, as follows:
Revenue for 2018 of approximately $3.0 billion;
Adjusted EBITDA for 2018 in a range of $605 million to $610 million;
Adjusted earnings per diluted share for 2018 in a range of $2.25 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 third quarter
financial results at 9:00 a.m. Eastern Time on Tuesday, November 6,
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 November 20, 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