Full Press Release Details
Healthcare Reports Third Quarter Financial Results
U.S. Same Facility Revenue Growth of 6.3%
2017 Financial Guidance
FRANKLIN, Tenn.--(BUSINESS WIRE)--October 24, 2017--Acadia Healthcare
Company, Inc. (NASDAQ: ACHC) today announced financial results for the
third quarter and nine months ended September 30, 2017. Revenue for the
quarter was $716.7 million, a 2.4% decrease from $734.7 million for the
third quarter of 2016. Net income attributable to Acadia stockholders
was $45.6 million, or $0.52 per diluted share, for the third quarter of
2017 compared with a net loss attributable to Acadia stockholders of
$117.8 million, or $1.36 per diluted share, for the third quarter of
2016. Adjusted income from continuing operations attributable to Acadia
stockholders per diluted share ("adjusted EPS") was $0.58 for the third
quarter of 2017 compared with $0.58 for the third quarter of 2016,
excluding the impact of transaction-related expenses of $5.7 million and
$1.1 million for the third quarter of 2017 and 2016, as well as debt
extinguishment costs of $3.4 million and loss on divestiture of $174.7
million for the third quarter of 2016. A reconciliation of all non-GAAP
financial results in this release appears beginning on page 8.
The results for the third quarter were impacted by the divestiture of 22
facilities in the U.K. that occurred on November 30, 2016. On a pro
forma basis, adjusting results for the U.K. divestitures, the decrease
in the exchange rate and discontinued operations, Acadia's revenue for
the third quarter of 2017 increased 4.8% to $716.7 million compared with
$684.2 million for the third quarter of 2016. Pro forma revenue
adjustments for the third quarter of 2016 included a negative impact
from the U.K. divestitures of $45.4 million, $4.1 million for the
discontinued operations, and $1.0 million from the decline in the
exchange rate. Acadia's pro forma adjusted EPS for the third quarter of
2017 increased 18.4% to $0.58, compared with $0.49 for the third quarter
of 2016. Pro forma adjusted EPS for the third quarter of 2016 included
the negative impact from the U.K. divestitures of $0.09.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, commented,
"For the third quarter of 2017, we continued to be pleased with the
performance of our U.S. operations, although we experienced a negative
impact from Hurricanes Irma and Maria in Florida, Georgia, and Puerto
Rico, which reduced the quarter's earnings by approximately $0.02 per
diluted share. The hurricanes had unfavorable impacts of 60 basis points
on same facility revenue and 30 basis points on same facility patient
days. Despite this impact, same facility revenue for the U.S. increased
6.3%, with a 4.2% increase in patient days and 2.0% increase in revenue
per patient day. U.S. same facility EBITDA margin increased 50 basis
points to 26.8% for third quarter of 2017.
"The third quarter financial results for our operations in the United
Kingdom reflected a lower census and higher operating costs than
anticipated. After experiencing expected seasonal softness in census for
the month of August, the typical rebound in census in the month of
September was significantly weaker than anticipated. In addition, due to
further tightening in the labor market primarily for nurses and other
clinical staff, we incurred higher agency labor expense than planned.
Same facility revenue increased 3.8% for the quarter, with a 2.5%
increase in patient days and a 1.2% increase in revenue per patient day.
U.K. same facility EBITDA margin was 21.4% for the quarter compared with
22.6% for the third quarter last year. Total facility EBITDA margin in
the U.K. declined 170 basis points to 19.3% for the third quarter of
"On a consolidated basis, total same facility revenue increased 5.5% for
the third quarter, with a 3.5% increase in patient days and a 1.9%
increase in revenue per patient day. Total same facility EBITDA margin
was 24.9% for the third quarter of 2017 compared with 25.0% for the
third quarter of 2016. Our same facility revenue growth resulted, in
part, from the addition of more than 600 new beds to existing facilities
in the 12 months ended September 30, 2017. During the third quarter, 179
new beds were added to existing facilities. We continue to expect to add
approximately 800 new beds to existing facilities and de novo facilities
Acadia's consolidated adjusted EBITDA for the third quarter of 2017 was
$152.3 million, or 21.2% of revenue, compared with $155.8 million, or
21.2% of revenue, for the third quarter of 2016.
Acadia today adjusted its financial guidance for 2017, consistent with
the Company's performance for the first nine months of 2017 and its
expectations for the fourth quarter of the year, as follows:
Revenue for 2017 in a range of $2.82 billion to $2.83 billion;
Adjusted EBITDA for 2017 in a range of $600 million to $605 million;
Adjusted earnings per diluted share for 2017 in a range $2.23 to
An exchange rate of $1.28 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, provision for income taxes, net interest expense and
depreciation and amortization. Adjusted EBITDA is defined as EBITDA
adjusted for equity-based compensation expense, debt extinguishment
costs, loss on divestiture, gain on foreign currency derivatives and
transaction-related expenses. Adjusted income is defined as net income
adjusted for provision for income taxes, debt extinguishment costs, loss
on divestiture, gain on foreign currency derivatives,
transaction-related expenses and income tax provision reflecting tax
effect of adjustments attributable to Acadia.
Acadia will hold a conference call to discuss its third quarter
financial results at 9:00 a.m. Eastern Time on Wednesday, October 25,
2017. 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 November 7, 2017.
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