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 purchase of Priory Group No. 1 Ltd. ( Priory ) 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 5,363,000 shares of common stock to stockholders of Priory pursuant to the Sale and Purchase Deed between Acadia and Priory dated December 31, 2015 and sell 10,000,000 shares of Acadia common stock in the offering described herein,
at an assumed offering price of $63.00 per share (which was a recent price of Acadia s common stock on the NASDAQ Global Select Market), resulting in the issuance of a total of 15,363,000 shares.
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 $955.0 million of term loans and $390.0 million of senior unsecured notes in lieu of the Bridge Notes.
unaudited pro forma condensed combined balance sheet as of September 30, 2015 reflects the effect of Acadia s other completed acquisitions that occurred after September 30, 2015, Acadia s planned purchase of Priory and the
related financing transactions described above as if they occurred on September 30, 2015.
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, 2014.
The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2014 combines the audited consolidated
statement of operations of Acadia, the unaudited consolidated statement of operations of Partnerships in Care Investments 1 Limited ( 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, the unaudited consolidated statement of operations for Acadia s other completed acquisitions for the periods prior to the respective acquisition dates and the audited consolidated
statement of operations for Priory for the year ended December 31, 2014.
The unaudited pro forma condensed combined statement of
operations for the nine months ended September 30, 2015 combines the unaudited consolidated statement of operations of Acadia, the unaudited consolidated statement of operations of CRC for the period prior to February 11, 2015, the
unaudited consolidated statement of operations for Acadia s other completed acquisitions for the periods prior to the respective acquisition dates and the unaudited consolidated statement of operations for Priory for the nine months ended
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, the unaudited consolidated statement of operations of Partnerships in Care for the six months ended June 30, 2014, the unaudited consolidated statement of operations of
CRC for the nine months ended September 30, 2014, the unaudited consolidated statement of operations for Acadia s other completed acquisitions for the periods prior to the respective acquisition dates and the unaudited consolidated
statement of operations for Priory for the nine months ended September 30, 2014.
The unaudited pro forma condensed combined
financial data has been prepared using the acquisition method of accounting for business combinations under U.S. 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 purchase of Priory 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 acquired
(including intangibles) 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. Accordingly, the unaudited pro forma condensed combined financial
should not be used to project our financial position or results of operations for any future date or future period.
forma condensed combined financial data should be read in conjunction with the consolidated financial statements and notes thereto of Acadia, Partnerships in Care, CRC and Priory included or incorporated by reference herein.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
As of September 30, 2015
| Acadia(1) | Completed Acquisitions Pro Forma Adjustments(2) | Acadia Pro Forma | Priory(3a) | Pro Forma Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Current assets: | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 50,762 | $ | (35,967 | ) | $ | 14,795 | $ | 24,690 | $ | $ | 39,485 | ||||||||||||||
| Accounts receivable, net | 214,883 | 3,773 | 218,656 | 65,355 | 284,011 | |||||||||||||||||||||
| Deferred tax assets | 37,291 | 37,291 | 23,169 | 60,460 | ||||||||||||||||||||||
| Other current assets | 75,335 | 442 | 75,777 | 16,056 | 91,833 | |||||||||||||||||||||
| Total current assets | 378,271 | (31,752 | ) | 346,519 | 129,270 | 475,789 | ||||||||||||||||||||
| Property and equipment, net | 1,624,166 | 32,474 | 1,656,640 | 1,653,851 | 3,310,491 | |||||||||||||||||||||
| Goodwill | 1,981,140 | 150,621 | 2,131,761 | 283,068 | 521,585 | (5) | 2,936,414 | |||||||||||||||||||
| Intangible assets, net | 58,976 | 58,976 | 47,926 | (10,426 | ) | (5) | 96,476 | |||||||||||||||||||
| Deferred tax assets noncurrent | 33,278 | 311 | 33,589 | 9,327 | 42,916 | |||||||||||||||||||||
| Other assets | 69,408 | 51 | 69,459 | 50,000 | (6) | 119,459 | ||||||||||||||||||||
| Total assets | $ | 4,145,239 | $ | 151,705 | $ | 4,296,944 | $ | 2,123,442 | $ | 561,159 | $ | 6,981,545 | ||||||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||||||||
| Current portion of long-term debt | $ | 41,996 | $ | $ | 41,996 | $ | 11,105 | $ | (1,555 | ) | (7) | $ | 51,546 | |||||||||||||
| Accounts payable | 78,384 | 609 | 78,993 | 85,705 | 164,698 | |||||||||||||||||||||
| Accrued salaries and benefits | 87,110 | 1,841 | 88,951 | 27,198 | 116,149 | |||||||||||||||||||||
| Other accrued liabilities | 56,962 | 353 | 57,315 | 41,443 | 98,758 | |||||||||||||||||||||
| Total current liabilities | 264,452 | 2,803 | 267,255 | 165,451 | (1,555 | ) | 431,151 | |||||||||||||||||||
| Long-term debt | 2,092,317 | 148,999 | 2,241,216 | 1,365,784 | (30,334 | ) | (7) | 3,576,666 | ||||||||||||||||||
| Deferred tax liabilities noncurrent | 22,210 | 22,210 | 221,373 | (2,085 | ) | (5) | 241,498 | |||||||||||||||||||
| Other liabilities | 87,008 | 3 | 87,011 | 36,098 | 123,109 | |||||||||||||||||||||
| Total liabilities | 2,465,987 | 151,705 | 2,617,692 | 1,788,706 | (33,974 | ) | 4,372,424 | |||||||||||||||||||
| Redeemable noncontrolling interests | 8,700 | 8,700 | 8,700 | |||||||||||||||||||||||
| Equity: | ||||||||||||||||||||||||||
| Common stock | 707 | 707 | 17,343 | (17,343 | ) | (4) | 861 | |||||||||||||||||||
| 54 | (5) | |||||||||||||||||||||||||
| 100 | (6) | |||||||||||||||||||||||||
| Additional paid-in capital | 1,574,708 | 1,574,708 | 396,062 | (396,062 | ) | (4) | 2,519,923 | |||||||||||||||||||
| 337,815 | (5) | |||||||||||||||||||||||||
| 607,400 | (6) | |||||||||||||||||||||||||
| Accumulated other comprehensive loss | (84,293 | ) | (84,293 | ) | (84,293 | ) | ||||||||||||||||||||
| Retained earnings (accumulated deficit) | 179,430 | 179,430 | (78,669 | ) | 78,669 | (4) | 163,930 | |||||||||||||||||||
| (15,500 | ) | (6) | ||||||||||||||||||||||||
| Total equity | 1,670,552 | 1,670,552 | 334,736 | 595,133 | 2,600,421 | |||||||||||||||||||||
| Total liabilities and equity | $ | 4,145,239 | $ | 151,705 | $ | 4,296,944 | $ | 2,123,442 | $ | 561,159 | $ | 6,981,545 |
See accompanying notes to unaudited pro forma financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2014
(In thousands, except per share amounts)
| Acadia(1) | Completed Acquisitions(2) | Partnerships in Care(8) | CRC(9) | Pro Forma Adjustments | Notes | Acadia Pro Forma | Priory(3b) | Pro Forma Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 1,030,784 | $ | 260,003 | $ | 142,312 | $ | 460,040 | $ | $ | 1,893,139 | $ | 857,968 | $ | $ | 2,751,107 | ||||||||||||||||||||||||
| Provision for doubtful accounts | (26,183 | ) | (1,730 | ) | 3 | (7,872 | ) | (10) | (35,782 | ) | (35,782 | ) | ||||||||||||||||||||||||||||
| Revenue | 1,004,601 | 258,273 | 142,315 | 460,040 | (7,872 | ) | 1,857,357 | 857,968 | 2,715,325 | |||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 575,412 | 143,637 | 84,641 | 227,692 | 1,031,382 | 496,456 | 1,527,838 | |||||||||||||||||||||||||||||||||
| Professional fees | 52,482 | 12,802 | 6,737 | 40,551 | 112,572 | 25,024 | 137,596 | |||||||||||||||||||||||||||||||||
| Supplies | 48,422 | 9,948 | 4,868 | 20,858 | 84,096 | 34,507 | 118,603 | |||||||||||||||||||||||||||||||||
| Rents and leases | 12,201 | 7,292 | 909 | 17,538 | 37,940 | 27,924 | 65,864 | |||||||||||||||||||||||||||||||||
| Other operating expenses | 110,654 | 24,173 | 11,644 | 51,517 | (1,122 | ) | (14) | 196,866 | 64,594 | 261,460 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 32,667 | 8,002 | 11,731 | 21,290 | (11,611 | ) | (11a) | 62,079 | 82,696 | (9,483 | ) | (11b) | 135,292 | |||||||||||||||||||||||||||
| Interest expense, net | 48,221 | 1,634 | 43,084 | 72,718 | (46,023 | ) | (12a) | 119,634 | 153,647 | (73,841 | ) | (12b) | 199,440 | |||||||||||||||||||||||||||
| Provision for doubtful accounts | 7,872 | (7,872 | ) | (10) | ||||||||||||||||||||||||||||||||||||
| Debt extinguishment costs | 11,622 | 11,622 | 26,335 | 37,957 | ||||||||||||||||||||||||||||||||||||
| Gain on foreign currency derivatives | (15,262 | ) | 15,262 | (13) | ||||||||||||||||||||||||||||||||||||
| Goodwill and asset impairments | 1,089 | 1,089 | 1,089 | |||||||||||||||||||||||||||||||||||||
| Transaction-related expenses | 13,650 | 7,686 | (21,336 | ) | (14) | 4,605 | (4,605 | ) | (14) | |||||||||||||||||||||||||||||||
| Total expenses | 878,447 | 207,488 | 163,614 | 480,433 | (72,702 | ) | 1,657,280 | 915,788 | (87,929 | ) | 2,485,139 | |||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 126,154 | 50,785 | (21,299 | ) | (20,393 | ) | 64,830 | 200,077 | (57,820 | ) | 87,929 | 230,186 | ||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 42,922 | 14,310 | 30 | 6,576 | 187 | (15) | 64,025 | (36,628 | ) | 30,150 | (15) | 57,547 | ||||||||||||||||||||||||||||
| Income (loss) from continuing operations | 83,232 | 36,475 | (21,329 | ) | (26,969 | ) | 64,643 | 136,052 | (21,192 | ) | 57,779 | 172,639 | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | (192 | ) | (4,471 | ) | (4,663 | ) | (4,663 | ) | ||||||||||||||||||||||||||||||||
| Net income | 83,040 | 36,475 | (21,329 | ) | (31,440 | ) | 64,643 | 131,389 | (21,192 | ) | 57,779 | 167,976 | ||||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | ||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 83,040 | $ | 36,475 | $ | (21,329 | ) | $ | (31,440 | ) | $ | 64,643 | $ | 131,389 | $ | (21,192 | ) | $ | 57,779 | $ | 167,976 | |||||||||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.51 | $ | 1.94 | $ | 2.02 | ||||||||||||||||||||||||||||||||||
| Diluted | $ | 1.50 | $ | 1.93 | $ | 2.01 | ||||||||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||||||
| Basic | 55,063 | 15,214 | (16a-c) | 70,277 | 15,363 | (16d) | 85,640 | |||||||||||||||||||||||||||||||||
| Diluted | 55,327 | 15,214 | (16a-c) | 70,541 | 15,363 | (16d) | 85,904 |
See accompanying notes to unaudited pro forma financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 2015
(In thousands, except per share amounts)
| Acadia(1) | Completed Acquisitions(2) | CRC(9) | Pro Forma Adjustments | Notes | Acadia Pro Forma | Priory(3c) | Pro Forma Adjustments | Notes | Pro Forma Combined | |||||||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 1,324,702 | $ | 124,023 | $ | 53,014 | $ | $ | 1,501,739 | $ | 650,465 | $ | $ | 2,152,204 | ||||||||||||||||||||||
| Provision for doubtful accounts | (25,529 | ) | (1,069 | ) | (1,206 | ) | (10) | (27,804 | ) | (27,804 | ) | |||||||||||||||||||||||||
| Revenue | 1,299,173 | 122,954 | 53,014 | (1,206 | ) | 1,473,935 | 650,465 | 2,124,400 | ||||||||||||||||||||||||||||
| Salaries, wages and benefits | 707,583 | 70,105 | 31,288 | 808,976 | 374,873 | 1,183,849 | ||||||||||||||||||||||||||||||
| Professional fees | 83,215 | 6,003 | 5,136 | 94,354 | 21,748 | 116,102 | ||||||||||||||||||||||||||||||
| Supplies | 58,430 | 4,837 | 2,583 | 65,850 | 25,732 | 91,582 | ||||||||||||||||||||||||||||||
| Rents and leases | 22,639 | 2,654 | 2,023 | 27,316 | 33,017 | 60,333 | ||||||||||||||||||||||||||||||
| Other operating expenses | 148,899 | 11,469 | 5,708 | 166,076 | 62,324 | 228,400 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 44,920 | 3,564 | 2,459 | (688 | ) | (11a) | 50,255 | 58,050 | (6,987 | ) | (11b) | 101,318 | ||||||||||||||||||||||||
| Interest expense, net | 77,932 | 991 | 8,883 | 3,134 | (12a) | 90,940 | 93,161 | (33,307 | ) | (12b) | 150,794 | |||||||||||||||||||||||||
| Provision for doubtful accounts | 1,206 | (1,206 | ) | (10) | ||||||||||||||||||||||||||||||||
| Debt extinguishment costs | 9,979 | 9,979 | 9,979 | |||||||||||||||||||||||||||||||||
| Gain on foreign currency derivatives | 1,926 | (1,926 | ) | (13) | ||||||||||||||||||||||||||||||||
| Goodwill and asset impairments | ||||||||||||||||||||||||||||||||||||
| Transaction-related expenses | 31,415 | 1,712 | (33,127 | ) | (14) | 2,304 | (2,304 | ) | (14) | |||||||||||||||||||||||||||
| Total expenses | 1,186,938 | 99,623 | 60,998 | (33,813 | ) | 1,313,746 | 671,209 | (42,598 | ) | 1,942,357 | ||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 112,235 | 23,331 | (7,984 | ) | 32,607 | 160,189 | (20,744 | ) | 42,598 | 182,043 | ||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 34,794 | 6,777 | (3,034 | ) | 9,520 | (15) | 48,057 | (297 | ) | (2,249 | ) | (15) | 45,511 | |||||||||||||||||||||||
| Income (loss) from continuing operations | 77,441 | 16,554 | (4,950 | ) | 23,087 | 112,132 | (20,447 | ) | 44,847 | 136,532 | ||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | 83 | (77 | ) | 6 | 6 | |||||||||||||||||||||||||||||||
| Net income | 77,524 | 16,554 | (5,027 | ) | 23,087 | 112,138 | (20,447 | ) | 44,847 | 136,538 | ||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | 464 | 464 | 464 | |||||||||||||||||||||||||||||||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 77,988 | $ | 16,554 | $ | (5,027 | ) | $ | 23,087 | $ | 112,602 | $ | (20,447 | ) | $ | 44,847 | $ | 137,002 | ||||||||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.16 | $ | 1.53 | $ | 1.54 | ||||||||||||||||||||||||||||||
| Diluted | $ | 1.15 | $ | 1.52 | $ | 1.53 | ||||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||
| Basic | 67,194 | 6,072 | (16a-c) | 73,266 | 15,363 | (16d) | 88,629 | |||||||||||||||||||||||||||||
| Diluted | 67,539 | 6,072 | (16a-c) | 73,611 | 15,363 | (16d) | 88,974 |
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(2) | Partnerships in Care(8) | CRC(9) | Pro Forma Adjustments | Notes | Acadia Pro Forma | Priory(3d) | Pro Forma Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 729,784 | $ | 200,233 | $ | 142,312 | $ | 340,255 | $ | $ | 1,412,584 | $ | 643,223 | $ | $ | 2,055,807 | ||||||||||||||||||||||||
| Provision for doubtful accounts | (20,084 | ) | (1,334 | ) | 3 | (5,718 | ) | (10) | (27,133 | ) | (27,133 | ) | ||||||||||||||||||||||||||||
| Revenue | 709,700 | 198,899 | 142,315 | 340,255 | (5,718 | ) | 1,385,451 | 643,223 | 2,028,674 | |||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 408,680 | 110,472 | 84,641 | 157,792 | 761,585 | 374,624 | 1,136,209 | |||||||||||||||||||||||||||||||||
| Professional fees | 36,151 | 9,832 | 6,737 | 30,297 | 83,017 | 18,257 | 101,274 | |||||||||||||||||||||||||||||||||
| Supplies | 34,722 | 7,582 | 4,868 | 15,221 | 62,393 | 25,670 | 88,063 | |||||||||||||||||||||||||||||||||
| Rents and leases | 8,872 | 5,771 | 909 | 12,925 | 28,477 | 18,541 | 47,018 | |||||||||||||||||||||||||||||||||
| Other operating expenses | 79,188 | 18,640 | 11,644 | 38,218 | (1,122 | ) | (14) | 146,568 | 46,986 | 193,554 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 21,696 | 6,172 | 11,731 | 15,352 | (8,925 | ) | (11a) | 46,026 | 63,403 | (7,771 | ) | (11b) | 101,658 | |||||||||||||||||||||||||||
| Interest expense, net | 33,505 | 1,301 | 43,084 | 54,455 | (42,941 | ) | (12a) | 89,404 | 118,771 | (58,917 | ) | (12b) | 149,258 | |||||||||||||||||||||||||||
| Provision for doubtful accounts | 5,718 | (5,718 | ) | (10) | ||||||||||||||||||||||||||||||||||||
| Debt extinguishment costs | 11,622 | 11,622 | 11,622 | |||||||||||||||||||||||||||||||||||||
| Gain on foreign currency derivatives | (15,262 | ) | 15,262 | (13) | ||||||||||||||||||||||||||||||||||||
| Goodwill and asset impairments | 1,089 | 1,089 | 1,089 | |||||||||||||||||||||||||||||||||||||
| Transaction-related expenses | 10,834 | 3,256 | (14,090 | ) | (14) | 4,666 | (4,666 | ) | (14) | |||||||||||||||||||||||||||||||
| Total expenses | 618,386 | 159,770 | 163,614 | 345,945 | (57,534 | ) | 1,230,181 | 670,918 | (71,354 | ) | 1,829,745 | |||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 91,314 | 39,129 | (21,299 | ) | (5,690 | ) | 51,816 | 155,270 | (27,695 | ) | 71,354 | 198,929 | ||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 30,383 | 11,076 | 30 | 254 | 7,943 | (15) | 49,686 | (23,944 | ) | 23,990 | (15) | 49,732 | ||||||||||||||||||||||||||||
| Income (loss) from continuing operations | 60,931 | 28,053 | (21,329 | ) | (5,944 | ) | 43,873 | 105,584 | (3,751 | ) | 47,364 | 149,197 | ||||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | (20 | ) | (6,602 | ) | (6,622 | ) | (6,622 | ) | ||||||||||||||||||||||||||||||||
| Net income | 60,911 | 28,053 | (21,329 | ) | (12,546 | ) | 43,873 | 98,962 | (3,751 | ) | 47,364 | 142,575 | ||||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | ||||||||||||||||||||||||||||||||||||||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 60,911 | $ | 28,053 | $ | (21,329 | ) | $ | (12,546 | ) | $ | 43,873 | $ | 98,962 | $ | (3,751 | ) | $ | 47,364 | $ | 142,575 | |||||||||||||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.14 | $ | 1.48 | $ | 1.73 | ||||||||||||||||||||||||||||||||||
| Diluted | $ | 1.13 | $ | 1.48 | $ | 1.72 | ||||||||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||||||
| Basic | 53,670 | 17,453 | (16a-c) | 71,123 | 15,363 | (16d) | 86,486 | |||||||||||||||||||||||||||||||||
| Diluted | 53,922 | 17,453 | (16a-c) | 71,375 | 15,363 | (16d) | 86,738 |
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 | ||||||||
| September 30, 2015 | Spot Rate | $ | 1.5164 | |||||
| Year ended December 31, 2014 | Average Rate | $ | 1.6476 | |||||
| Nine months ended September 30, 2015 | Average Rate | $ | 1.5322 | |||||
| Nine months ended September 30, 2014 | Average Rate | $ | 1.6693 |
| Priory (in thousands, in IFRS) | Priory (in $ thousands, in U.S. GAAP) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 16,282 | $ | 24,690 | |||||
| Accounts receivable, net | 43,099 | 65,355 | ||||||
| Deferred tax assets | 15,279 | 23,169 | ||||||
| Other current assets | 10,588 | 16,056 | ||||||
| Total current assets | 85,248 | 129,270 | ||||||
| Property and equipment, net | 1,090,643 | 1,653,851 | ||||||
| Goodwill | 186,671 | 283,068 | ||||||
| Intangible assets, net | 31,605 | 47,926 | ||||||
| Deferred tax assets noncurrent | 6,151 | 9,327 | ||||||
| Total assets | 1,400,318 | $ | 2,123,442 | |||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | 7,323 | $ | 11,105 | |||||
| Accounts payable | 56,519 | 85,705 | ||||||
| Accrued salaries and benefits | 17,936 | 27,198 | ||||||
| Other accrued liabilities | 27,330 | 41,443 | ||||||
| Total current liabilities | 109,108 | 165,451 | ||||||
| Long-term debt | 900,675 | 1,365,784 | ||||||
| Deferred tax liabilities noncurrent | 145,986 | 221,373 | ||||||
| Other liabilities | 23,805 | 36,098 | ||||||
| Total liabilities | 1,179,574 | 1,788,706 | ||||||
| Equity: | ||||||||
| Common stock | 11,437 | 17,343 | ||||||
| Additional paid-in capital | 261,186 | 396,062 | ||||||
| Accumulated deficit | (51,879 | ) | (78,669 | ) | ||||
| Total equity | 220,744 | 334,736 | ||||||
| Total liabilities and equity | 1,400,318 | $ | 2,123,442 |
| Priory (in thousands, in IFRS) | Priory (in $ thousands, in U.S. GAAP) | |||||||
| Revenue before provision for doubtful accounts | 520,738 | $ | 857,968 | |||||
| Provision for doubtful accounts | ||||||||
| Revenue | 520,738 | 857,968 | ||||||
| Salaries, wages and benefits | 301,321 | 496,456 | ||||||
| Professional fees | 15,188 | 25,024 | ||||||
| Supplies | 20,944 | 34,507 | ||||||
| Rents and leases | 16,948 | 27,924 | ||||||
| Other operating expenses | 39,205 | 64,594 | ||||||
| Depreciation and amortization | 50,192 | 82,696 | ||||||
| Interest expense, net | 93,255 | 153,647 | ||||||
| Debt extinguishment | 15,984 | 26,335 | ||||||
| Transaction-related expenses | 2,795 | 4,605 | ||||||
| Total expenses | 555,832 | 915,788 | ||||||
| (Loss) income from continuing operations before income taxes | (35,094 | ) | (57,820 | ) | ||||
| Benefit for income taxes | 22,231 | 36,628 | ||||||
| Loss from continuing operations | (12,863 | ) | $ | (21,192 | ) |
| Priory (in thousands, in IFRS) | Priory (in $ thousands, in U.S. GAAP) | |||||||
| Revenue before provision for doubtful accounts | 424,530 | $ | 650,465 | |||||
| Provision for doubtful accounts | ||||||||
| Revenue | 424,530 | 650,465 | ||||||
| Salaries, wages and benefits | 244,663 | 374,873 | ||||||
| Professional fees | 14,194 | 21,748 | ||||||
| Supplies | 16,794 | 25,732 | ||||||
| Rents and leases | 21,549 | 33,017 | ||||||
| Other operating expenses | 40,676 | 62,324 | ||||||
| Depreciation and amortization | 37,887 | 58,050 | ||||||
| Interest expense, net | 60,802 | 93,161 | ||||||
| Transaction-related expenses | 1,504 | 2,304 | ||||||
| Total expenses | 438,069 | 671,209 | ||||||
| (Loss) income from continuing operations before income taxes | (13,539 | ) | (20,744 | ) | ||||
| Benefit for income taxes | 194 | 297 | ||||||
| Loss from continuing operations | (13,345 | ) | $ | (20,447 | ) |
| Priory (in thousands, in IFRS) | Priory (in $ thousands, in U.S. GAAP) | |||||||
| Revenue before provision for doubtful accounts | 385,325 | $ | 643,223 | |||||
| Provision for doubtful accounts | ||||||||
| Revenue | 385,325 | 643,223 | ||||||
| Salaries, wages and benefits | 224,420 | 374,624 | ||||||
| Professional fees | 10,937 | 18,257 | ||||||
| Supplies | 15,378 | 25,670 | ||||||
| Rents and leases | 11,107 | 18,541 | ||||||
| Other operating expenses | 28,147 | 46,986 | ||||||
| Depreciation and amortization | 37,982 | 63,403 | ||||||
| Interest expense, net | 71,150 | 118,771 | ||||||
| Transaction-related expenses | 2,795 | 4,666 | ||||||
| Total expenses | 401,916 | 670,918 | ||||||
| (Loss) income from continuing operations before income taxes | (16,591 | ) | (27,695 | ) | ||||
| Benefit for income taxes | 14,344 | 23,944 | ||||||
| Loss from continuing operations | (2,247 | ) | $ | (3,751 | ) |
| Cash consideration | $ | 518,000 | ||
| Assumption of Priory debt | 1,369,000 | |||
| Estimated equity consideration | 337,869 | |||
| Estimated total consideration | 2,224,869 | |||
| Cash | 24,690 | |||
| Accounts receivable | 65,355 | |||
| Deferred tax assets | 23,169 | |||
| Other current assets | 16,056 | |||
| Property and equipment | 1,653,851 | |||
| Intangible assets | 37,500 | |||
| Deferred tax assets noncurrent | 9,327 | |||
| Accounts payable | (85,705 | ) | ||
| Accrued salaries and benefits | (27,198 | ) | ||
| Other accrued liabilities | (41,443 | ) | ||
| Deferred tax liability- long term | (219,288 | ) | ||
| Other long-term liabilities | (36,098 | ) | ||
| Fair value of assets acquired and liabilities assumed | $ | 1,420,216 | ||
| Estimated goodwill | 804,653 | |||
| Less: historical goodwill | (283,068 | ) | ||
| Goodwill adjustment | $ | 521,585 |
| Sources relating to purchase of Priory: | ||||
| New Term Loan B | $ | 955,000 | ||
| New unsecured senior notes | 390,000 | |||
| Net proceeds from offering of Acadia common stock(a) | 607,500 | |||
| Equity issuance to Priory stockholders(b) | 337,869 | |||
| Total sources | $ | 2,290,369 | ||
| Uses: | ||||
| Equity issuance to Priory stockholders(b) | (337,869 | ) | ||
| Cash portion of purchase consideration(c) | (518,000 | ) | ||
| Repayment of Priory debt assumed(d) | (1,369,000 | ) | ||
| Debt financing costs | (50,000 | ) | ||
| Acquisition costs(e) | (15,500 | ) | ||
| Total uses | $ | (2,290,369 | ) |
| Current Portion | Long-term Portion | Total Debt | ||||||||||
| Incremental term B loans | $ | 9,550 | $ | 945,450 | $ | 955,000 | ||||||
| Repayment of Priory debt assumed | (11,105 | ) | (1,365,784 | ) | (1,376,889 | ) | ||||||
| New unsecured senior notes | 390,000 | 390,000 | ||||||||||
| Adjustments | $ | (1,555 | ) | $ | (30,334 | ) | $ | (31,889 | ) |
| 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 | 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 | ) | 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 | 7,030 | 11,731 | ||||||||||||
| Interest expense, net | 31,979 | (6,160 | ) | 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 | 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 | Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | |||||||||||||||||||
| Partnerships in Care: | ||||||||||||||||||||||||
| Land | $ | 73,689 | N/A | $ | $ | $ | $ | |||||||||||||||||
| Building and improvements | 446,921 | 30-50 | 1,046 | 6,275 | 6,275 | |||||||||||||||||||
| Equipment | 19,330 | 3-10 | 354 | 2,127 | 2,127 | |||||||||||||||||||
| 539,940 | 1,400 | 8,402 | 8,402 | |||||||||||||||||||||
| Indefinite-lived intangible assets | 575 | N/A | ||||||||||||||||||||||
| Partnerships in Care depreciation and amortization expense | 8,402 | 8,402 | ||||||||||||||||||||||
| CRC: | ||||||||||||||||||||||||
| Land | 24,597 | N/A | $ | $ | $ | $ | ||||||||||||||||||
| Building and improvements | 88,312 | 10-40 | 584 | 7,008 | 954 | 5,256 | ||||||||||||||||||
| Equipment | 21,201 | 3-10 | 500 | 6,000 | 817 | 4,500 | ||||||||||||||||||
| Construction in progress | 3,133 | N/A | ||||||||||||||||||||||
| 137,243 | 1,084 | 13,008 | 1,771 | 9,756 | ||||||||||||||||||||
| Indefinite-lived intangible assets | 37,000 | N/A | ||||||||||||||||||||||
| CRC depreciation and amortization expense | 13,008 | 1,771 | 9,756 | |||||||||||||||||||||
| Total depreciation and amortization expense | 21,410 | 1,771 | 18,158 | |||||||||||||||||||||
| Less: historical depreciation and amortization expense of Partnerships in Care | (11,731 | ) | (11,731 | ) | ||||||||||||||||||||
| Less: historical depreciation and amortization expense of CRC | (21,290 | ) | (2,459 | ) | (15,352 | ) | ||||||||||||||||||
| Depreciation and amortization expense adjustment | $ | (11,611 | ) | $ | (688 | ) | $ | (8,925 | ) |
| Amount | Useful Lives (in years) | Monthly Depreciation | Year Ended December 31, 2014 | Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | |||||||||||||||||||
| Land | $ | 255,745 | N/A | $ | $ | $ | $ | |||||||||||||||||
| Building and improvements | 1,202,113 | 30-50 | 2,531 | 32,653 | 22,774 | 24,812 | ||||||||||||||||||
| Equipment | 183,354 | 3-10 | 3,143 | 40,560 | 28,289 | 30,820 | ||||||||||||||||||
| Construction in progress | 12,639 | N/A | ||||||||||||||||||||||
| 1,653,851 | 5,674 | 73,213 | 51,063 | 55,632 | ||||||||||||||||||||
| Indefinite-lived intangible assets | 37,500 | N/A | ||||||||||||||||||||||
| Depreciation and amortization expense | 73,213 | 51,063 | 55,632 | |||||||||||||||||||||
| Less: historical depreciation and amortization expense | (82,696 | ) | (58,050 | ) | (63,403 | ) | ||||||||||||||||||
| Depreciation and amortization expense adjustment | $ | (9,483 | ) | $ | (6,987 | ) | $ | (7,771 | ) |
| Year Ended December 31, 2014 | Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | ||||||||||
| Interest related to 5.125% Senior Notes due 2022 | $ | 7,688 | $ | $ | 7,688 | |||||||
| Interest related to 5.625% Senior Notes due 2023 | 36,563 | 13,828 | 26,778 | |||||||||
| Interest related to Term Loan A | 8,225 | 6,169 | ||||||||||
| Interest related to Term Loan B | 21,250 | 2,892 | 15,938 | |||||||||
| Interest related to change in the applicable interest rate on term A loans based on Acadia s consolidated leverage ratio | 1,141 | 285 | 856 | |||||||||
| Interest related to paydown of 12.875% Senior Notes | (12,553 | ) | (8,892 | ) | (8,892 | ) | ||||||
| Interest related to revolving line of credit paydown, net of borrowing | 5,425 | 4,219 | 4,459 | |||||||||
| Interest related to amortization of deferred financing costs | 3,674 | 676 | 2,903 | |||||||||
| Less: historical interest expense of Partnerships in Care | (43,084 | ) | (43,084 | ) | ||||||||
| Less: historical interest expense of CRC | (72,718 | ) | (8,883 | ) | (54,455 | ) | ||||||
| Less: historical interest expense of other completed acquisitions | (1,634 | ) | (991 | ) | (1,301 | ) | ||||||
| Interest expense adjustment | $ | (46,023 | ) | $ | 3,134 | $ | (42,941 | ) |
| Year Ended December 31, 2014 | Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | ||||||||||
| Interest related to new unsecured senior notes(i) | $ | 27,300 | $ | 20,475 | $ | 20,475 | ||||||
| Interest related to Incremental Term Loan B(ii) | 45,363 | 34,022 | 34,022 | |||||||||
| Interest related to amortization of deferred financing costs | 7,143 | 5,357 | 5,357 | |||||||||
| Less: historical interest expense | (153,647 | ) | (93,161 | ) | (118,771 | ) | ||||||
| Interest expense adjustment | $ | (73,841 | ) | $ | (33,307 | ) | $ | (58,917 | ) |