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 certain acquisitions as further described below and give effect to each transaction as if it occurred on January 1, 2014.
With respect to the issuance of common stock and the use of a portion of the proceeds to repay outstanding indebtedness on the Senior Secured
Revolving Line of Credit under our Amended and Restated Senior Credit Facility, the earnings per share calculations reflect only the shares whose proceeds are being used to effect the adjustments made in the income statement (2,723,044 shares based
on an assumed public offering price of $68.50 per share, which was the closing price of our common stock on April 30, 2015, as reported on The Nasdaq Global Select Market). The additional earnings per share data set forth below in the unaudited pro
forma condensed combined financial data is based on the assumption that Acadia will issue 4,500,000 shares of common stock.
pro forma condensed combined statement of operations for the year ended December 31, 2014 combines the audited consolidated statement of operations of Acadia for the year ended December 31, 2014, the unaudited consolidated statement of
operations of Partnerships in Care for the six months ended June 30, 2014, the audited consolidated statement of operations of CRC for the year ended December 31, 2014 and the unaudited consolidated statement of operations for Acadia s
other completed acquisitions for the period from January 1, 2014 to the earlier of the acquisition date or December 31, 2014.
The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2015 combines the unaudited
consolidated statement of operations of Acadia for that period, the unaudited consolidated statement of operations of CRC for the period prior to February 11, 2015, the acquisition date, and the unaudited consolidated statement of operations for
Acadia s other completed acquisitions for the periods prior to the respective acquisition dates.
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
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
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 STATEMENT OF OPERATIONS
For the Year Ended December 31, 2014
(In thousands, except per share amounts)
| Acadia(1) | Partnerships in Care(5) | CRC(2) | Completed Acquisitions(3) | Pro Forma Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 1,030,784 | $ | 142,312 | $ | 460,040 | $ | 73,934 | $ | 1,707,070 | ||||||||||||||||||
| Provision for doubtful accounts | (26,183 | ) | 3 | (261 | ) | (7,872 | ) | (7 | ) | (34,313 | ) | |||||||||||||||||
| Revenue | 1,004,601 | 142,315 | 460,040 | 73,673 | (7,872 | ) | 1,672,757 | |||||||||||||||||||||
| Salaries, wages and benefits | 575,412 | 84,641 | 227,692 | 34,305 | 922,050 | |||||||||||||||||||||||
| Professional fees | 52,482 | 6,737 | 40,551 | 4,968 | 104,738 | |||||||||||||||||||||||
| Supplies | 48,422 | 4,868 | 20,858 | 2,795 | 76,943 | |||||||||||||||||||||||
| Rents and leases | 12,201 | 909 | 17,538 | 3,619 | 34,267 | |||||||||||||||||||||||
| Other operating expenses | 110,654 | 11,644 | 51,517 | 7,162 | (1,122 | ) | (11 | ) | 179,855 | |||||||||||||||||||
| Depreciation and amortization | 32,667 | 11,731 | 21,290 | 2,065 | (10,747 | ) | (8 | ) | 57,006 | |||||||||||||||||||
| Interest expense, net | 48,221 | 43,084 | 72,718 | 1,432 | (56,600 | ) | (9 | ) | 108,855 | |||||||||||||||||||
| Provision for doubtful accounts | 7,872 | (7,872 | ) | (7 | ) | |||||||||||||||||||||||
| Debt extinguishment costs | 11,622 | 11,622 | ||||||||||||||||||||||||||
| Gain on foreign currency derivatives | (15,262 | ) | 15,262 | (10 | ) | |||||||||||||||||||||||
| Goodwill and asset impairments | 1,089 | 1,089 | ||||||||||||||||||||||||||
| Transaction-related expenses | 13,650 | 7,686 | (21,336 | ) | (11 | ) | ||||||||||||||||||||||
| Total expenses | 878,447 | 163,614 | 480,433 | 56,346 | (82,415 | ) | 1,496,425 | |||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 126,154 | (21,299 | ) | (20,393 | ) | 17,327 | 74,543 | 176,332 | ||||||||||||||||||||
| Provision (benefit) for income taxes | 42,922 | 30 | 6,576 | 5,181 | 1,717 | (12 | ) | 56,426 | ||||||||||||||||||||
| Income (loss) from continuing operations | $ | 83,232 | $ | (21,329 | ) | $ | (26,969 | ) | $ | 12,146 | $ | 72,826 | $ | 119,906 | ||||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||||||
| Basic | $ | 1.51 | $ | 1.77 | ||||||||||||||||||||||||
| Diluted | $ | 1.50 | $ | 1.76 | ||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||
| Basic | 55,063 | 12,762 | (13a | ) | 67,825 | |||||||||||||||||||||||
| Diluted | 55,327 | 12,762 | (13a | ) | 68,089 | |||||||||||||||||||||||
| Additional earnings per share data | ||||||||||||||||||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||||||
| Basic | $ | 1.51 | $ | 1.72 | ||||||||||||||||||||||||
| Diluted | $ | 1.50 | $ | 1.72 | ||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||
| Basic | 55,063 | 14,539 | (13b | ) | 69,602 | |||||||||||||||||||||||
| Diluted | 55,327 | 14,539 | (13b | ) | 69,866 |
See accompanying notes to unaudited pro forma financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 2015
(In thousands, except per share amounts)
| Acadia(1) | CRC(2) | Completed Acquisitions(4) | Pro Forma Adjustments | Notes | Pro Forma Combined | |||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 374,158 | $ | 53,014 | $ | 12,428 | $ | 439,600 | ||||||||||||||||
| Provision for doubtful accounts | (8,375 | ) | (10 | ) | (1,206 | ) | (7 | ) | (9,591 | ) | ||||||||||||||
| Revenue | 365,783 | 53,014 | 12,418 | (1,206 | ) | 430,009 | ||||||||||||||||||
| Salaries, wages and benefits | 205,871 | 31,288 | 6,284 | 243,443 | ||||||||||||||||||||
| Professional fees | 22,427 | 5,136 | 895 | 28,458 | ||||||||||||||||||||
| Supplies | 16,254 | 2,583 | 465 | 19,302 | ||||||||||||||||||||
| Rents and leases | 5,886 | 2,023 | 564 | 8,473 | ||||||||||||||||||||
| Other operating expenses | 40,527 | 5,708 | 1,183 | 47,418 | ||||||||||||||||||||
| Depreciation and amortization | 13,104 | 2,459 | 333 | (571 | ) | (8 | ) | 15,325 | ||||||||||||||||
| Interest expense, net | 22,146 | 8,883 | 134 | (3,567 | ) | (9 | ) | 27,596 | ||||||||||||||||
| Provision for doubtful accounts | 1,206 | (1,206 | ) | (7 | ) | |||||||||||||||||||
| Gain on foreign currency derivatives | (53 | ) | 53 | (10 | ) | |||||||||||||||||||
| Transaction-related expenses | 18,416 | 1,712 | (20,128 | ) | (11 | ) | ||||||||||||||||||
| Total expenses | $ | 344,578 | 60,998 | 9,858 | (25,419 | ) | 390,015 | |||||||||||||||||
| Income (loss) from continuing operations before income taxes | 21,205 | (7,984 | ) | 2,560 | 24,213 | 39,994 | ||||||||||||||||||
| Provision (benefit) for income taxes | 6,613 | (3,034 | ) | 632 | 8,587 | (12 | ) | 12,798 | ||||||||||||||||
| Income (loss) from continuing operations | $ | 14,592 | $ | (4,950 | ) | $ | 1,928 | $ | 15,626 | $ | 27,196 | |||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||
| Basic | $ | 0.23 | $ | 0.40 | ||||||||||||||||||||
| Diluted | $ | 0.23 | $ | 0.40 | ||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||
| Basic | 62,530 | 5,445 | (13a | ) | 67,975 | |||||||||||||||||||
| Diluted | 62,894 | 5,445 | (13a | ) | 68,339 | |||||||||||||||||||
| Additional earnings per share data | ||||||||||||||||||||||||
| Earnings per share data income (loss) from continuing operations: | ||||||||||||||||||||||||
| Basic | $ | 0.23 | $ | 0.39 | ||||||||||||||||||||
| Diluted | $ | 0.23 | $ | 0.39 | ||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||
| Basic | 62,530 | 7,222 | (13b | ) | 69,752 | |||||||||||||||||||
| Diluted | 62,894 | 7,222 | (13b | ) | 70,116 |
See accompanying notes to unaudited pro forma financial information.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
(In thousands, except per share amounts)
| GBP/USD | ||||||
| Six months ended June 30, 2014 | Average Rate | $ | 1.6687 |
The amounts below represent results for the six months ended June 30, 2014.
| 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 | ) | (6 | ) | 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 | (6 | ) | 7,030 | 11,731 | ||||||||||||||
| Interest expense, net | 31,979 | (6,160 | ) | (6 | ) | 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 | (6 | ) | 18 | 30 | |||||||||||||
| Loss from continuing operations | (17,700 | ) | 4,918 | (12,782 | ) | $ | (21,329 | ) |
| Amount | Useful Lives (in years) | Monthly Depreciation | Year Ended December 31, 2014 | Three Months Ended March 31, 2015 | ||||||||||||||||
| Partnerships in Care: | ||||||||||||||||||||
| Land | $ | 72,086 | N/A | $ | $ | $ | ||||||||||||||
| Building and improvements | 437,195 | 30-50 | 1,046 | 6,275 | ||||||||||||||||
| Equipment | 18,909 | 3-10 | 354 | 2,127 | ||||||||||||||||
| 528,190 | 1,400 | 8,402 | ||||||||||||||||||
| Indefinite-lived intangible assets | 651 | N/A | ||||||||||||||||||
| 651 | ||||||||||||||||||||
| Partnerships in Care depreciation and amortization expense | 8,402 | |||||||||||||||||||
| CRC: | ||||||||||||||||||||
| Land | $ | 24,597 | N/A | $ | $ | $ | ||||||||||||||
| Building and improvements | 87,638 | 10-40 | 575 | 6,900 | 939 | |||||||||||||||
| Equipment | 24,110 | 3-10 | 581 | 6,972 | 949 | |||||||||||||||
| Construction in progress | 3,133 | N/A | ||||||||||||||||||
| 139,478 | 1,156 | 13,872 | 1,888 | |||||||||||||||||
| Indefinite-lived intangible assets | 37,000 | N/A | ||||||||||||||||||
| 37,000 | ||||||||||||||||||||
| CRC depreciation and amortization expense | 13,872 | 1,888 | ||||||||||||||||||
| Total depreciation and amortization expense | 22,274 | 1,888 | ||||||||||||||||||
| Less: historical depreciation and amortization expense of Partnerships in Care | (11,731 | ) | ||||||||||||||||||
| Less: historical depreciation and amortization expense of CRC | (21,290 | ) | (2,459 | ) | ||||||||||||||||
| Depreciation and amortization expense adjustment | $ | (10,747 | ) | $ | (571 | ) |
| Year Ended December 31, 2014 | Three Months Ended March 31, 2015 | |||||||
| Interest related to 5.125% Senior Notes due 2022 | $ | 7,688 | $ | |||||
| Interest related to 5.625% Senior Notes due 2023 | 21,094 | 2,871 | ||||||
| Interest related to Term Loan A | 8,225 | |||||||
| Interest related to Term Loan B | 22,500 | 3,063 | ||||||
| Interest related to change in the applicable interest rate on term A loans based on Acadia s consolidated leverage ratio | 1,141 | 285 | ||||||
| Interest related to revolving line of credit paydown, net of borrowing | (3,915 | ) | (1,605 | ) | ||||
| Interest related to amortization of deferred financing costs | 3,901 | 836 | ||||||
| Less: historical interest expense of Partnerships in Care | (43,084 | ) | ||||||
| Less: historical interest expense of CRC | (72,718 | ) | (8,883 | ) | ||||
| Less: historical interest expense of other completed acquisitions | (1,432 | ) | (134 | ) | ||||
| Interest expense adjustment | $ | (56,600 | ) | $ | (3,567 | ) |