Full Press Release Details
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The tables below set forth the unaudited pro forma condensed combined financial data for Acadia Healthcare Company, Inc. ( Acadia )
giving effect to Acadia s planned merger with CRC Health Group, Inc. ( CRC ) and the related issuance of common stock and debt financing transactions described herein.
With respect to the issuance of common stock, the unaudited pro forma condensed combined financial data is based on the assumption that Acadia
will issue 6,262,046 shares of common stock to stockholders of CRC pursuant to the Agreement and Plan of Merger between Acadia, Copper Acquisition Co., Inc. and CRC dated October 29, 2014.
With respect to Acadia s planned debt financing, the unaudited pro forma condensed combined financial data is based on the assumption
that Acadia will issue $300,000,000 of senior unsecured notes, issue $500,000,000 of term loans and borrow on its existing revolving line of credit at the closing date of the merger and also reflects the sixth amendment to Acadia s credit
facility effective as of December 15, 2014.
The unaudited pro forma condensed combined balance sheet as of September 30, 2014
reflects the effect of Acadia s planned merger with CRC and the related financing transactions described above as if it occurred on September 30, 2014.
The unaudited pro forma condensed combined statements of operations present income (loss) from continuing operations and give effect to each
transaction as if it occurred on January 1, 2013.
The unaudited pro forma condensed combined statement of operations for the year
ended December 31, 2013 combines the audited consolidated statement of operations of Acadia, the audited consolidated statement of operations of Partnerships in Care Investments 1 Limited ( Partnerships in Care ), the unaudited
consolidated statement of operations for Acadia s other completed acquisitions, the audited consolidated statement of operations of CRC, and the unaudited consolidated statement of operations for CRC s completed acquisition of Habit
Holdings, Inc. ( Habit ) for the period from January 1, 2013 to December 31, 2013.
The unaudited pro forma condensed
combined statement of operations for the nine months ended September 30, 2014 combines the unaudited consolidated statement of operations of Acadia for that period, the unaudited consolidated statement of operations of Partnerships in Care for
the six months ended June 30, 2014, the unaudited consolidated statement of operations for Acadia s other completed acquisitions for the period prior to acquisition, the unaudited consolidated statement of operations of CRC for the nine
months ended September 30, 2014, and the unaudited consolidated statement of operations of Habit for the period from January 1, 2014 to February 28, 2014 (the date CRC closed its acquisition of Habit).
The unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2013 combines the unaudited
consolidated statement of operations of Acadia for that period, the unaudited consolidated statement of operations of Partnerships in Care for the nine months ended September 30, 2013, the unaudited consolidated statement of operations for
Acadia s other completed acquisitions for the period prior to acquisition, the unaudited consolidated statement of operations of CRC for the nine months ended September 30, 2013, and the unaudited consolidated statement of operations of
Habit for the nine months ended September 30, 2013.
The unaudited pro forma condensed combined financial data has been prepared
using the acquisition method of accounting for business combinations under GAAP. The adjustments necessary to fairly present the unaudited pro forma condensed combined financial data have been made based on available information and in the opinion
of management are reasonable. Assumptions underlying the pro forma adjustments are described in the accompanying notes, which should be read in conjunction with this unaudited pro forma condensed combined financial data. The pro forma adjustments
related to the planned merger with CRC are preliminary and revisions to the fair value of assets acquired and liabilities assumed may have a significant impact on the pro forma adjustments. A final valuation of assets acquired and liabilities
assumed has not been completed and the
completion of fair value determinations may result in changes in the values assigned to property and equipment and other assets (including intangibles) acquired and liabilities assumed.
The unaudited pro forma condensed combined financial data is for illustrative purposes only and does not purport to represent what our
financial position or results of operations actually would have been had the events noted above in fact occurred on the assumed dates or to project our financial position or results of operations for any future date or future period.
The unaudited pro forma condensed combined financial data should be read in conjunction with the consolidated financial statements and notes
thereto of Acadia, Partnerships in Care and CRC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
As of September 30, 2014
| Acadia(1) | CRC(2) | Pro Forma Merger Adjustments | Notes | Pro Forma Combined | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 42,179 | $ | 21,112 | $ | (16,112 | ) | (5 | ) | $ | 47,179 | |||||||||
| Accounts receivable, net | 130,253 | 49,263 | 179,516 | |||||||||||||||||
| Deferred tax assets | 19,782 | 19,782 | ||||||||||||||||||
| Other current assets | 37,626 | 15,902 | 53,528 | |||||||||||||||||
| Total current assets | 229,840 | 86,277 | (16,112 | ) | 300,005 | |||||||||||||||
| Property and equipment, net | 1,026,378 | 128,851 | 1,155,229 | |||||||||||||||||
| Goodwill | 804,647 | 559,613 | 463,037 | (4 | ) | 1,827,297 | ||||||||||||||
| Intangible assets, net | 21,621 | 266,639 | (251,639 | ) | (4 | ) | 36,621 | |||||||||||||
| Deferred tax assets noncurrent | 15,933 | 29,795 | (4 | ) | 45,728 | |||||||||||||||
| Other assets | 42,049 | 20,425 | 23,250 | (5 | ) | 67,652 | ||||||||||||||
| 1,900 | (5 | ) | ||||||||||||||||||
| (19,972 | ) | (3 | ) | |||||||||||||||||
| Total assets | $ | 2,140,468 | $ | 1,061,805 | $ | 230,259 | $ | 3,432,532 | ||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Current portion of long-term debt | $ | 13,320 | $ | 4,709 | $ | 12,041 | (6 | ) | $ | 30,070 | ||||||||||
| Accounts payable | 43,260 | 5,841 | 49,101 | |||||||||||||||||
| Accrued salaries and benefits | 56,213 | 22,777 | 78,990 | |||||||||||||||||
| Other accrued liabilities | 29,747 | 29,002 | (7,412 | ) | 51,337 | |||||||||||||||
| Total current liabilities | 142,540 | 62,329 | 4,629 | 209,498 | ||||||||||||||||
| Long-term debt | 1,016,002 | 874,669 | 42,139 | (6 | ) | 1,932,810 | ||||||||||||||
| Deferred tax liabilities noncurrent | 64,771 | 137,835 | (202,606 | ) | (4 | ) | ||||||||||||||
| Other liabilities | 30,579 | 25,077 | 55,656 | |||||||||||||||||
| Total liabilities | 1,253,892 | 1,099,910 | (155,838 | ) | 2,197,964 | |||||||||||||||
| Equity: | ||||||||||||||||||||
| Common stock | 592 | 36 | (36 | ) | (3 | ) | 655 | |||||||||||||
| 63 | (4 | ) | ||||||||||||||||||
| Additional paid-in capital | 843,528 | 358,965 | (358,965 | ) | (3 | ) | 1,219,188 | |||||||||||||
| 375,660 | (4 | ) | ||||||||||||||||||
| Retained earnings (accumulated deficit) | 79,313 | (396,858 | ) | 396,858 | (3 | ) | 51,582 | |||||||||||||
| (27,731 | ) | (5 | ) | |||||||||||||||||
| Accumulated other comprehensive loss | (36,857 | ) | (248 | ) | 248 | (3 | ) | (36,857 | ) | |||||||||||
| Total equity (deficit) | 886,576 | (38,105 | ) | 386,097 | 1,234,568 | |||||||||||||||
| Total liabilities and equity | $ | 2,140,468 | $ | 1,061,805 | $ | 230,259 | $ | 3,432,532 |
See accompanying notes to unaudited pro forma financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2013
(In thousands, except per share amounts)
| Acadia(1) | Completed Acquisitions Pro Forma Adjustment(7) | Partnerships in Care(8a) | Pro Forma Adjustments | Notes | Acadia Pro Forma | CRC(2) | Habit(9) | Pro Forma Merger Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 735,109 | $ | 33,397 | $ | 267,031 | $ | $ | 1,035,537 | $ | 408,809 | $ | 44,294 | $ | $ | 1,488,640 | ||||||||||||||||||||||||||||
| Provision for doubtful accounts | (21,701 | ) | (1,136 | ) | (11 | ) | (22,848 | ) | (886 | ) | (6,948 | ) | (16 | ) | (30,682 | ) | ||||||||||||||||||||||||||||
| Revenue | 713,408 | 32,261 | 267,020 | 1,012,689 | 408,809 | 43,408 | (6,948 | ) | 1,457,958 | |||||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 407,962 | 18,148 | 151,493 | 577,603 | 189,682 | 25,625 | 792,910 | |||||||||||||||||||||||||||||||||||||
| Professional fees | 37,171 | 1,567 | 11,294 | 50,032 | 46,774 | 1,312 | 98,118 | |||||||||||||||||||||||||||||||||||||
| Supplies | 37,569 | 1,382 | 9,755 | 48,706 | 19,386 | 1,628 | 69,720 | |||||||||||||||||||||||||||||||||||||
| Rents and leases | 10,049 | 1,575 | 1,605 | 13,229 | 14,035 | 3,500 | 30,764 | |||||||||||||||||||||||||||||||||||||
| Other operating expenses | 80,572 | 3,635 | 24,050 | 108,257 | 51,775 | 4,441 | 164,473 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 17,090 | 687 | 21,173 | (5,420 | ) | (11a | ) | 33,530 | 19,398 | 1,930 | (5,536 | ) | (11b | ) | 49,322 | |||||||||||||||||||||||||||||
| Interest expense, net | 37,250 | 2,067 | 77,373 | (60,432 | ) | (12a | ) | 56,258 | 70,699 | 575 | (20,859 | ) | (12b | ) | 106,673 | |||||||||||||||||||||||||||||
| Provision for doubtful accounts | 6,948 | (6,948 | ) | (16 | ) | |||||||||||||||||||||||||||||||||||||||
| Debt extinguishment costs | 9,350 | 9,350 | 9,350 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill and asset impairments | 19,341 | 19,341 | ||||||||||||||||||||||||||||||||||||||||||
| Transaction-related expenses | 7,150 | 7,150 | (1,611 | ) | (13 | ) | 5,539 | |||||||||||||||||||||||||||||||||||||
| Total expenses | 644,163 | 29,061 | 296,743 | (65,852 | ) | 904,115 | 438,038 | 39,011 | (34,954 | ) | 1,346,210 | |||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 69,245 | 3,200 | (29,723 | ) | 65,852 | 108,574 | (29,229 | ) | 4,397 | 28,006 | 111,748 | |||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 25,975 | 1,200 | (12,844 | ) | 16,069 | (14 | ) | 30,400 | 1,790 | 1,790 | 11,202 | (14 | ) | 45,182 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | 43,270 | $ | 2,000 | $ | (16,879 | ) | $ | 49,783 | $ | 78,174 | $ | (31,019 | ) | $ | 2,607 | $ | 16,804 | $ | 66,566 | ||||||||||||||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.87 | $ | 1.33 | $ | 1.02 | ||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 0.86 | $ | 1.32 | $ | 1.02 | ||||||||||||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | 50,004 | 8,882 | (15a | ) | 58,886 | 6,262 | (15b | ) | 65,148 | |||||||||||||||||||||||||||||||||||
| Diluted | 50,411 | 8,882 | (15a | ) | 59,293 | 6,262 | (15b | ) | 65,555 |
See accompanying notes to unaudited pro forma financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2014
(In thousands, except per share amounts)
| Acadia(1) | Completed Acquisitions Pro Forma Adjustment(7) | Partnerships in Care(8b) | Pro Forma Adjustments | Notes | Acadia Pro Forma | CRC(2) | Habit(9) | Pro Forma Merger Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 729,784 | $ | 9,492 | $ | 142,312 | $ | $ | 881,588 | $ | 340,255 | $ | 7,401 | $ | $ | 1,229,244 | ||||||||||||||||||||||||||||
| Provision for doubtful accounts | (20,084 | ) | (25 | ) | 3 | (20,106 | ) | (148 | ) | (5,718 | ) | (16 | ) | (25,972 | ) | |||||||||||||||||||||||||||||
| Revenue | 709,700 | 9,467 | 142,315 | 861,482 | 340,255 | 7,253 | (5,718 | ) | 1,203,272 | |||||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 408,680 | 5,021 | 84,641 | 498,342 | 157,792 | 4,021 | 660,155 | |||||||||||||||||||||||||||||||||||||
| Professional fees | 36,151 | 467 | 6,737 | 43,355 | 30,297 | 225 | 73,877 | |||||||||||||||||||||||||||||||||||||
| Supplies | 34,722 | 266 | 4,868 | 39,856 | 15,221 | 258 | 55,335 | |||||||||||||||||||||||||||||||||||||
| Rents and leases | 8,872 | 574 | 909 | 10,355 | 12,925 | 522 | 23,802 | |||||||||||||||||||||||||||||||||||||
| Other operating expenses | 79,188 | 1,043 | 11,644 | 91,875 | 41,474 | 698 | 134,047 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 21,696 | 51 | 11,731 | (3,329 | ) | (11a | ) | 30,149 | 15,352 | 381 | (3,889 | ) | (11b | ) | 41,993 | |||||||||||||||||||||||||||||
| Interest expense, net | 33,505 | 720 | 43,084 | (34,613 | ) | (12a | ) | 42,696 | 54,455 | 89 | (16,733 | ) | (12b | ) | 80,507 | |||||||||||||||||||||||||||||
| Provision for doubtful accounts | 5,718 | (5,718 | ) | (16 | ) | |||||||||||||||||||||||||||||||||||||||
| Debt extinguishment costs | 11,622 | 11,622 | ||||||||||||||||||||||||||||||||||||||||||
| Gain on foreign currency derivatives | (15,262 | ) | (15,262 | ) | (15,262 | ) | ||||||||||||||||||||||||||||||||||||||
| Goodwill and asset impairments | 1,089 | 1,089 | ||||||||||||||||||||||||||||||||||||||||||
| Transaction-related expenses | 10,834 | 10,834 | (667 | ) | (13 | ) | 10,167 | |||||||||||||||||||||||||||||||||||||
| Total expenses | 618,386 | 8,142 | 163,614 | (37,942 | ) | 752,200 | 345,945 | 6,194 | (27,007 | ) | 1,077,332 | |||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 91,314 | 1,325 | (21,299 | ) | 37,942 | 109,282 | (5,690 | ) | 1,059 | 21,289 | 125,940 | |||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 30,383 | 497 | 30 | (312 | ) | (14 | ) | 30,598 | 254 | 304 | 8,516 | (14 | ) | 39,672 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | 60,931 | $ | 828 | $ | (21,329 | ) | $ | 38,254 | $ | 78,684 | $ | (5,944 | ) | $ | 755 | $ | 12,773 | $ | 86,268 | ||||||||||||||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.14 | $ | 1.33 | $ | 1.32 | ||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 1.13 | $ | 1.33 | $ | 1.31 | ||||||||||||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | 53,670 | 5,433 | (15a | ) | 59,103 | 6,262 | (15b | ) | 65,365 | |||||||||||||||||||||||||||||||||||
| Diluted | 53,922 | 5,433 | (15a | ) | 59,355 | 6,262 | (15b | ) | 65,617 |
See accompanying notes to unaudited pro forma financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2013
(In thousands, except per share amounts)
| Acadia(1) | Completed Acquisitions Pro Forma Adjustment(7) | Partnerships in Care(8b) | Pro Forma Adjustments | Notes | Acadia Pro Forma | CRC(2) | Habit(9) | Pro Forma Merger Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 539,230 | $ | 28,328 | $ | 197,718 | $ | $ | 765,276 | $ | 309,449 | $ | 33,221 | $ | $ | 1,107,946 | ||||||||||||||||||||||||||||
| Provision for doubtful accounts | (15,821 | ) | (1,035 | ) | (32 | ) | (16,888 | ) | (664 | ) | (5,674 | ) | (16 | ) | (23,226 | ) | ||||||||||||||||||||||||||||
| Revenue | 523,409 | 27,293 | 197,686 | 748,388 | 309,449 | 32,557 | (5,674 | ) | 1,084,720 | |||||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 298,904 | 15,130 | 112,626 | 426,660 | 140,044 | 19,219 | 585,923 | |||||||||||||||||||||||||||||||||||||
| Professional fees | 27,294 | 1,394 | 8,735 | 37,423 | 35,519 | 984 | 73,926 | |||||||||||||||||||||||||||||||||||||
| Supplies | 28,017 | 1,215 | 7,220 | 36,452 | 14,458 | 1,221 | 52,131 | |||||||||||||||||||||||||||||||||||||
| Rents and leases | 7,377 | 1,326 | 1,186 | 9,889 | 10,428 | 2,625 | 22,942 | |||||||||||||||||||||||||||||||||||||
| Other operating expenses | 59,424 | 3,138 | 16,389 | 78,951 | 35,723 | 3,331 | 118,005 | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 12,248 | 641 | 15,575 | (3,898 | ) | (11a | ) | 24,566 | 14,363 | 1,448 | (3,967 | ) | (11b | ) | 36,410 | |||||||||||||||||||||||||||||
| Interest expense, net | 27,672 | 1,622 | 57,080 | (44,375 | ) | (12a | ) | 41,999 | 52,791 | 431 | (15,411 | ) | (12b | ) | 79,810 | |||||||||||||||||||||||||||||
| Provision for doubtful accounts | 5,674 | (5,674 | ) | (16 | ) | |||||||||||||||||||||||||||||||||||||||
| Debt extinguishment costs | 9,350 | 9,350 | 9,350 | |||||||||||||||||||||||||||||||||||||||||
| Transaction-related expenses | 3,813 | 3,813 | 3,813 | |||||||||||||||||||||||||||||||||||||||||
| Total expenses | 474,099 | 24,466 | 218,811 | (48,273 | ) | 669,103 | 309,000 | 29,259 | (25,052 | ) | 982,310 | |||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 49,310 | 2,827 | (21,125 | ) | 48,273 | 79,285 | 449 | 3,298 | 19,378 | 102,410 | ||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 18,439 | 1,060 | (9,471 | ) | 12,171 | (14 | ) | 22,199 | 1,261 | 1,343 | 7,751 | (14 | ) | 32,554 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations | $ | 30,871 | $ | 1,767 | $ | (11,654 | ) | $ | 36,102 | $ | 57,086 | $ | (812 | ) | $ | 1,955 | $ | 11,627 | $ | 69,856 | ||||||||||||||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.62 | $ | 0.97 | $ | 1.07 | ||||||||||||||||||||||||||||||||||||||
| Diluted | $ | 0.61 | $ | 0.97 | $ | 1.07 | ||||||||||||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||||||||||
| Basic | 49,987 | 8,882 | (15a | ) | 58,869 | 6,262 | 65,131 | |||||||||||||||||||||||||||||||||||||
| Diluted | 50,213 | 8,882 | (15a | ) | 59,095 | 6,262 | 65,357 |
See accompanying notes to unaudited pro forma financial information.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
(In thousands, except per share amounts)
| Estimated equity consideration | $ | 375,723 | ||
| Assumption of net indebtedness | 875,677 | |||
| Estimated total consideration | 1,251,400 | |||
| Accounts receivable | 49,263 | |||
| Other current assets | 15,902 | |||
| Property and equipment | 128,851 | |||
| Intangible assets | 15,000 | |||
| Deferred tax assets noncurrent | 94,566 | |||
| Other long-term assets | 453 | |||
| Accounts payable | (5,841 | ) | ||
| Accrued salaries and benefits | (22,777 | ) | ||
| Other accrued liabilities | (21,590 | ) | ||
| Other long-term liabilities | (25,077 | ) | ||
| Fair value of assets acquired and liabilities assumed | $ | 228,750 | ||
| Estimated goodwill | 1,022,650 | |||
| Less: historical goodwill | (559,613 | ) | ||
| Goodwill adjustment | $ | 463,037 |
The acquired assets and liabilities will be recorded at their relative fair values as of the closing date of the merger.
Estimated goodwill is based upon a determination of the fair value of assets acquired and liabilities assumed that is preliminary and subject to revision as the value of total consideration is finalized and additional information related to the fair
value of property and equipment and other assets (including intangible assets) acquired and liabilities assumed becomes available. The actual determination of the fair value of assets acquired and liabilities assumed may differ from that assumed in
these unaudited pro forma condensed combined financial statements and such differences may be material. Qualitative factors comprising goodwill include efficiencies derived through synergies expected by coordination of services provided across the
combined network of facilities, achievement of operating efficiencies by benchmarking performance and applying best practices throughout the combined company.
| Sources relating to December 2014 credit facility amendment: | ||||
| Incremental term A loans | $ | 235,000 | ||
| Total sources | $ | 235,000 | ||
| Uses: | ||||
| Existing revolver paydown | $ | (164,000 | ) | |
| Incremental term A loans debt financing costs | (1,900 | ) | ||
| Cash proceeds | (69,100 | ) | ||
| Total uses | $ | (235,000 | ) | |
| Sources relating to merger with CRC: | ||||
| New unsecured senior notes | $ | 300,000 | ||
| New term B loans | 500,000 | |||
| Equity issuance to CRC stockholders(a) | 375,723 | |||
| CRC cash on hand | 16,112 | |||
| Revolver borrowing | 62,558 | |||
| Acadia cash on hand | 69,100 | |||
| Total sources | $ | 1,323,493 | ||
| Uses: | ||||
| Equity issuance to CRC stockholders(a) | (375,723 | ) | ||
| CRC debt repayment | (889,377 | ) | ||
| CRC debt prepayment fees | (9,000 | ) | ||
| CRC accrued interest payoff | (7,412 | ) | ||
| Debt financing costs | (23,250 | ) | ||
| Acquisition costs(b) | (18,731 | ) | ||
| Total uses | $ | (1,323,493 | ) |
| Current Portion | Long-term Portion | Total Debt | ||||||||||
| Incremental term A loans | $ | 11,750 | $ | 223,250 | $ | 235,000 | ||||||
| Revolving line of credit paydown | (164,000 | ) | (164,000 | ) | ||||||||
| Elimination of debt not assumed | (4,709 | ) | (874,669 | ) | (879,378 | ) | ||||||
| New unsecured senior notes | 300,000 | 300,000 | ||||||||||
| New term B loans | 5,000 | 495,000 | 500,000 | |||||||||
| Revolving line of credit borrowing | 62,558 | 62,558 | ||||||||||
| Adjustments | $ | 12,041 | $ | 42,139 | $ | 54,180 |
| GBP/USD | ||||||||
| Year ended December 31, 2013 | Average Spot Rate | $ | 1.5643 | |||||
| Six months ended June 30, 2014 | Average Spot Rate | $ | 1.6687 | |||||
| Nine months ended September 30, 2013 | Average Spot Rate | $ | 1.5461 |
| Partnerships in Care (in , in U.K. GAAP) | U.S. GAAP Adjustments | Notes | Partnerships in Care (in , in U.S. GAAP) | Partnerships in Care (in $, in U.S. GAAP) | ||||||||||||||||
| Revenue before provision for doubtful accounts | 170,703 | 170,703 | $ | 267,031 | ||||||||||||||||
| Provision for doubtful accounts | (7 | ) | (7 | ) | (11 | ) | ||||||||||||||
| Revenue | 170,696 | 170,696 | 267,020 | |||||||||||||||||
| Salaries, wages and benefits | 98,345 | (1,501 | ) | (10 | ) | 96,844 | 151,493 | |||||||||||||
| Professional fees | 7,220 | 7,220 | 11,294 | |||||||||||||||||
| Supplies | 6,236 | 6,236 | 9,755 | |||||||||||||||||
| Rents and leases | 1,026 | 1,026 | 1,605 | |||||||||||||||||
| Other operating expenses | 15,374 | 15,374 | 24,050 | |||||||||||||||||
| Depreciation and amortization | 11,458 | 2,077 | (10 | ) | 13,535 | 21,173 | ||||||||||||||
| Interest expense, net | 61,782 | (12,320 | ) | (10 | ) | 49,462 | 77,373 | |||||||||||||
| Transaction-related expenses | ||||||||||||||||||||
| Total expenses | 201,441 | (11,744 | ) | 189,697 | 296,743 | |||||||||||||||
| (Loss) income from continuing operations before income taxes | (30,745 | ) | 11,744 | (19,001 | ) | (29,723 | ) | |||||||||||||
| Benefit for income taxes | (1,715 | ) | (6,496 | ) | (10 | ) | (8,211 | ) | (12,844 | ) | ||||||||||
| Loss from continuing operations | (29,030 | ) | 18,240 | (10,790 | ) | $ | (16,879 | ) |
| Partnerships in Care (in , in U.K. GAAP) | U.S. GAAP Adjustments | Notes | Partnerships in Care (in , in U.S. GAAP) | Partnerships in Care (in $, in U.S. GAAP) | ||||||||||||||||
| Revenue before provision for doubtful accounts | 85,283 | 85,283 | $ | 142,312 | ||||||||||||||||
| Provision for doubtful accounts | 2 | 2 | 3 | |||||||||||||||||
| Revenue | 85,285 | 85,285 | 142,315 | |||||||||||||||||
| Salaries, wages and benefits | 51,601 | (878 | ) | (10 | ) | 50,723 | 84,641 | |||||||||||||
| Professional fees | 4,037 | 4,037 | 6,737 | |||||||||||||||||
| Supplies | 2,917 | 2,917 | 4,868 | |||||||||||||||||
| Rents and leases | 545 | 545 | 909 | |||||||||||||||||
| Other operating expenses | 6,978 | 6,978 | 11,644 | |||||||||||||||||
| Depreciation and amortization | 5,991 | 1,039 | (10 | ) | 7,030 | 11,731 | ||||||||||||||
| Interest expense, net | 31,979 | (6,160 | ) | (10 | ) | 25,819 | 43,084 | |||||||||||||
| Transaction-related expenses | ||||||||||||||||||||
| Total expenses | 104,048 | (5,999 | ) | 98,049 | 163,614 | |||||||||||||||
| (Loss) income from continuing operations before income taxes | (18,763 | ) | 5,999 | (12,764 | ) | (21,299 | ) | |||||||||||||
| (Benefit) provision for income taxes | (1,063 | ) | 1,081 | (10 | ) | 18 | 30 | |||||||||||||
| Loss from continuing operations | (17,700 | ) | 4,918 | (12,782 | ) | $ | (21,329 | ) |
| Partnerships in Care (in , in U.K. GAAP) | U.S. GAAP Adjustments | Notes | Partnerships in Care (in , in U.S. GAAP) | Partnerships in Care (in $, in U.S. GAAP) | ||||||||||||||||
| Revenue before provision for doubtful accounts | 127,882 | 127,882 | $ | 197,718 | ||||||||||||||||
| Provision for doubtful accounts | (21 | ) | (21 | ) | (32 | ) | ||||||||||||||
| Revenue | 127,861 | 127,861 | 197,686 | |||||||||||||||||
| Salaries, wages and benefits | 73,971 | (1,126 | ) | (10 | ) | 72,845 | 112,626 | |||||||||||||
| Professional fees | 5,650 | 5,650 | 8,735 | |||||||||||||||||
| Supplies | 4,670 | 4,670 | 7,220 | |||||||||||||||||
| Rents and leases | 767 | 767 | 1,186 | |||||||||||||||||
| Other operating expenses | 10,600 | 10,600 | 16,389 | |||||||||||||||||
| Depreciation and amortization | 8,515 | 1,559 | (10 | ) | 10,074 | 15,575 | ||||||||||||||
| Interest expense, net | 46,159 | (9,240 | ) | (10 | ) | 36,919 | 57,080 | |||||||||||||
| Transaction-related expenses | ||||||||||||||||||||
| Total expenses | 150,332 | (8,807 | ) | 141,525 | 218,811 | |||||||||||||||
| (Loss) income from continuing operations before income taxes | (22,471 | ) | 8,807 | (13,664 | ) | (21,125 | ) | |||||||||||||
| Benefit for income taxes | (1,254 | ) | (4,872 | ) | (10 | ) | (6,126 | ) | (9,471 | ) | ||||||||||
| Loss from continuing operations | (21,217 | ) | 13,679 | (7,538 | ) | $ | (11,654 | ) |
| Amount | Useful Lives (in years) | Monthly Depreciation | Year Ended December 31, 2013 | Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||||||||||||||
| Land | $ | 78,913 | N/A | $ | $ | $ | $ | |||||||||||||||||
| Building and improvements | 478,604 | 30-50 | 1,046 | 11,765 | 6,275 | 8,721 | ||||||||||||||||||
| Equipment | 20,713 | 3-10 | 354 | 3,988 | 2,127 | 2,956 | ||||||||||||||||||
| 578,230 | 1,400 | 15,753 | 8,402 | 11,677 | ||||||||||||||||||||
| Indefinite-lived intangible assets | 3,000 | N/A | ||||||||||||||||||||||
| Total depreciation and amortization expense | 15,753 | 8,402 | 11,677 | |||||||||||||||||||||
| Less: historical depreciation and amortization expense | (21,173 | ) | (11,731 | ) | (15,575 | ) | ||||||||||||||||||
| Depreciation and amortization expense adjustment | $ | (5,420 | ) | $ | (3,329 | ) | $ | (3,898 | ) |
| Amount | Useful Lives (in years) | Monthly Depreciation | Year Ended December 31, 2013 | Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||||||||||||||
| Land | $ | 20,983 | N/A | $ | $ | $ | $ | |||||||||||||||||
| Building and improvements | 81,526 | 10-40 | 878 | 10,536 | 7,902 | 7,902 | ||||||||||||||||||
| Equipment | 18,828 | 3-10 | 438 | 5,256 | 3,942 | 3,942 | ||||||||||||||||||
| Construction in progress | 7,514 | N/A | ||||||||||||||||||||||
| 128,851 | 1,316 | 15,792 | 11,844 | 11,844 | ||||||||||||||||||||
| Indefinite-lived intangible assets | 15,000 | N/A | ||||||||||||||||||||||
| 15,000 | ||||||||||||||||||||||||
| Total depreciation and amortization expense | 15,792 | 11,844 | 11,844 | |||||||||||||||||||||
| Less: historical depreciation and amortization expense of CRC | (19,398 | ) | (15,352 | ) | (14,363 | ) | ||||||||||||||||||
| Less: historical depreciation and amortization expense of Habit | (1,930 | ) | (381 | ) | (1,448 | ) | ||||||||||||||||||
| Depreciation and amortization expense adjustment | $ | (5,536 | ) | $ | (3,889 | ) | $ | (3,967 | ) |
| Year Ended December 31, 2013 | Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||
| Interest related to 5.125% Senior Notes due 2022 | $ | 15,375 | $ | 7,688 | $ | 11,531 | ||||||
| Interest related to borrowings on revolving credit facility | 450 | 225 | 337 | |||||||||
| Interest related to amortization of deferred financing costs | 1,116 | 558 | 837 | |||||||||
| Less: historical interest expense of Partnerships in Care | (77,373 | ) | (43,084 | ) | (57,080 | ) | ||||||
| Interest expense adjustment | $ | (60,432 | ) | $ | (34,613 | ) | $ | (44,375 | ) |
| Year Ended December 31, 2013 | Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||
| Interest related to new unsecured senior notes | $ | 18,000 | $ | 13,500 | $ | 13,500 | ||||||
| Interest related to incremental term A loans | 8,225 | 6,169 | 6,169 | |||||||||
| Interest related to new term B loans | 22,500 | 16,875 | 16,875 | |||||||||
| Interest related to change in the applicable interest rate on term A loans based on Acadia s consolidated leverage ratio | 1,146 | 859 | 859 | |||||||||
| Interest related to revolving line of credit paydown, net of borrowing | (3,049 | ) | (2,287 | ) | (2,287 | ) | ||||||
| Interest related to amortization of deferred financing costs | 3,593 | 2,695 | 2,695 | |||||||||
| Less: historical interest expense of CRC | (70,699 | ) | (54,455 | ) | (52,791 | ) | ||||||
| Less: historical interest expense of Habit | (575 | ) | (89 | ) | (431 | ) | ||||||
| Interest expense adjustment | $ | (20,859 | ) | $ | (16,733 | ) | $ | (15,411 | ) |
An increase or decrease of 0.125% in the assumed interest rate related to the new unsecured senior notes and new
term B loans would result in a change of $1.0 million, $0.8 million and $0.8 million for the year ended December 31, 2013 and nine months ended September 30, 2014 and 2013, respectively.