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. giving effect to
Acadia s purchase of Priory Group No. 1 Limited ( Priory ) on February 16, 2016 and the related issuance of common stock and debt financing transactions described herein.
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, 2015.
The unaudited pro forma condensed combined statement of operations for the year
ended December 31, 2015 combines the audited consolidated statement of operations of Acadia, the unaudited consolidated statement of operations of CRC Health Group, Inc. ( 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 audited consolidated statement of operations for Priory for the year ended
The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2016
combines the unaudited consolidated statement of operations of Acadia and the unaudited consolidated statement of operations of Priory for the period prior to February 16, 2016.
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, 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 three months ended March 31, 2015.
An unaudited pro forma condensed combined balance sheet is not presented as Priory was included in Acadia s condensed consolidated
balance sheet at March 31, 2016.
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
purchase of Priory are preliminary and revisions to the fair value of assets acquired and liabilities assumed may have a significant impact on Acadia s condensed consolidated balance sheet or 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
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 information should not be used 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 and Priory included in Acadia s reports filed with the Securities and Exchange Commission.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2015
(In thousands, except per share amounts)
| Acadia(1) | Completed Acquisitions(2) | CRC(3) | Pro Forma Adjustments | Notes | Acadia Pro Forma | Priory(4a) | Pro Forma Adjustments | Notes | Pro Forma Combined | |||||||||||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 1,829,619 | $ | 130,723 | $ | 53,014 | $ | $ | 2,013,356 | $ | 872,996 | $ | $ | 2,886,352 | ||||||||||||||||||||||||||
| Provision for doubtful accounts | (35,127 | ) | (1,270 | ) | (1,206 | ) | (5) | (37,603 | ) | (37,603 | ) | |||||||||||||||||||||||||||||
| Revenue | 1,794,492 | 129,453 | 53,014 | (1,206 | ) | 1,957,753 | 872,996 | 2,848,749 | ||||||||||||||||||||||||||||||||
| Salaries, wages and benefits | 973,732 | 73,639 | 31,288 | 1,078,659 | 482,169 | 1,560,828 | ||||||||||||||||||||||||||||||||||
| Professional fees | 116,463 | 6,280 | 5,136 | 127,879 | 48,145 | 176,024 | ||||||||||||||||||||||||||||||||||
| Supplies | 80,663 | 5,143 | 2,583 | 88,389 | 32,926 | 121,315 | ||||||||||||||||||||||||||||||||||
| Rents and leases | 32,528 | 2,794 | 2,023 | 37,345 | 44,539 | 81,884 | ||||||||||||||||||||||||||||||||||
| Other operating expenses | 206,746 | 12,258 | 5,708 | 224,712 | 82,771 | 307,483 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 63,550 | 3,602 | 2,459 | (716 | ) | (6a) | 68,895 | 76,895 | (11,812 | ) | (6b) | 133,978 | ||||||||||||||||||||||||||||
| Interest expense, net | 106,742 | 1,005 | 8,883 | 2,835 | (7a) | 119,465 | 124,528 | (45,727 | ) | (7b) | 198,266 | |||||||||||||||||||||||||||||
| Provision for doubtful accounts | 1,206 | (1,206 | ) | (5) | ||||||||||||||||||||||||||||||||||||
| Debt extinguishment costs | 10,818 | 10,818 | 10,818 | |||||||||||||||||||||||||||||||||||||
| Gain on foreign currency derivatives | 1,926 | (1,926 | ) | (8) | ||||||||||||||||||||||||||||||||||||
| Goodwill and asset impairments | 44,267 | 44,267 | ||||||||||||||||||||||||||||||||||||||
| Transaction-related expenses | 36,571 | 1,712 | (38,283 | ) | (9) | 26,545 | (26,545 | ) | (9) | |||||||||||||||||||||||||||||||
| Total expenses | 1,629,739 | 104,721 | 60,998 | (39,296 | ) | 1,756,162 | 962,785 | (84,084 | ) | 2,634,863 | ||||||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 164,753 | 24,732 | (7,984 | ) | 38,090 | 219,591 | (89,789 | ) | 84,084 | 213,886 | ||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 53,388 | 7,303 | 3,034 | 12,612 | (10) | 70,269 | (31,727 | ) | 10,625 | (10) | 49,194 | |||||||||||||||||||||||||||||
| Income (loss) from continuing operations | 111,365 | 17,429 | (4,950 | ) | 25,478 | 149,322 | (58,062 | ) | 73,432 | 164,692 | ||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations | 111 | (77 | ) | 34 | 34 | |||||||||||||||||||||||||||||||||||
| Net income | 111,476 | 17,429 | (5,027 | ) | 25,478 | 149,356 | (58,062 | ) | 73,432 | 164,726 | ||||||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | 1,078 | 1,078 | 1,078 | |||||||||||||||||||||||||||||||||||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 112,554 | $ | 17,429 | $ | (5,027 | ) | $ | 25,478 | $ | 150,434 | $ | (58,062 | ) | $ | 73,432 | $ | 165,804 | ||||||||||||||||||||||
| Earnings per share-income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||||||||||
| Basic | $ | 1.65 | $ | 2.13 | $ | 1.92 | ||||||||||||||||||||||||||||||||||
| Diluted | $ | 1.64 | $ | 2.12 | $ | 1.92 | ||||||||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||||||
| Basic | 68,085 | 2,514 | (11a,11b | ) | 70,599 | 15,534 | (11c | ) | 86,133 | |||||||||||||||||||||||||||||||
| Diluted | 68,391 | 2,514 | (11a,11b | ) | 70,905 | 15,534 | (11c | ) | 86,439 |
See accompanying notes to unaudited pro forma financial information.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Three months Ended March 31, 2016
(In thousands, except per share amounts)
| Acadia(1) | Priory(4b) | Pro Forma Adjustments | Notes | Acadia Pro Forma | ||||||||||||||
| Revenue before provision for doubtful accounts | $ | 627,183 | $ | 110,615 | $ | $ | 737,798 | |||||||||||
| Provision for doubtful accounts | (10,370 | ) | (10,370 | ) | ||||||||||||||
| Revenue | $ | 616,813 | 110,615 | 727,428 | ||||||||||||||
| Salaries, wages and benefits | 341,028 | 61,593 | 402,621 | |||||||||||||||
| Professional fees | 39,991 | 8,300 | 48,291 | |||||||||||||||
| Supplies | 26,685 | 3,939 | 30,624 | |||||||||||||||
| Rents and leases | 14,806 | 5,524 | 20,330 | |||||||||||||||
| Other operating expenses | 70,247 | 10,836 | 81,083 | |||||||||||||||
| Depreciation and amortization | 27,975 | 9,114 | (1,347 | ) | (6b) | 35,742 | ||||||||||||
| Interest expense, net | 37,714 | 38,953 | (28,630 | ) | (7b) | 48,037 | ||||||||||||
| Gain on foreign currency derivatives | (410 | ) | 410 | (8) | ||||||||||||||
| Transaction-related expenses | 26,298 | 5,782 | (32,080 | ) | (9) | |||||||||||||
| Total expenses | 584,334 | 144,041 | (61,647 | ) | 666,728 | |||||||||||||
| Income (loss) from continuing operations before income taxes | 32,479 | (33,426 | ) | 61,647 | 60,700 | |||||||||||||
| Provision (benefit) for income taxes | 7,110 | 2,931 | 3,920 | (10) | 13,961 | |||||||||||||
| Income (loss) from continuing operations | 25,369 | (36,357 | ) | 57,727 | 46,739 | |||||||||||||
| Income (loss) from discontinued operations, net of income taxes | ||||||||||||||||||
| Net income | 25,369 | (36,357 | ) | 57,727 | 46,739 | |||||||||||||
| Net loss attributable to noncontrolling interests | 319 | 319 | ||||||||||||||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 25,688 | $ | (36,357 | ) | $ | 57,727 | $ | 47,058 | |||||||||
| Earnings per share income (loss) from continuing operations: | ||||||||||||||||||
| Basic | $ | 0.31 | $ | 0.54 | ||||||||||||||
| Diluted | $ | 0.31 | $ | 0.54 | ||||||||||||||
| Weighted average shares: | ||||||||||||||||||
| Basic | 82,943 | 3,429 | (11c) | 86,372 | ||||||||||||||
| Diluted | 83,420 | 3,429 | (11c) | 86,849 |
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) | Completed Acquisitions(2) | CRC(3) | Pro Forma Adjustments | Notes | Acadia Pro Forma | Priory(4c) | Pro Forma Adjustments | Notes | Pro Forma Combined | |||||||||||||||||||||||||||
| Revenue before provision for doubtful accounts | $ | 374,158 | $ | 58,106 | $ | 53,014 | $ | $ | 485,278 | $ | 208,181 | $ | $ | 693,459 | ||||||||||||||||||||||
| Provision for doubtful accounts | (8,375 | ) | (363 | ) | (1,206 | ) | (5) | (9,944 | ) | (9,944 | ) | |||||||||||||||||||||||||
| Revenue | 365,783 | 57,743 | 53,014 | (1,206 | ) | 475,334 | 208,181 | 683,515 | ||||||||||||||||||||||||||||
| Salaries, wages and benefits | 205,871 | 33,206 | 31,288 | 270,365 | 117,034 | 387,399 | ||||||||||||||||||||||||||||||
| Professional fees | 22,427 | 2,965 | 5,136 | 30,528 | 9,966 | 40,494 | ||||||||||||||||||||||||||||||
| Supplies | 16,254 | 2,209 | 2,583 | 21,046 | 7,767 | 28,813 | ||||||||||||||||||||||||||||||
| Rents and leases | 5,886 | 1,493 | 2,023 | 9,402 | 10,875 | 20,277 | ||||||||||||||||||||||||||||||
| Other operating expenses | 40,527 | 5,415 | 5,708 | 51,650 | 21,658 | 73,308 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 13,104 | 1,829 | 2,459 | (716 | ) | (6a) | 16,676 | 18,912 | (2,779 | ) | (6b) | 32,809 | ||||||||||||||||||||||||
| Interest expense, net | 22,146 | 905 | 8,883 | (2,727 | ) | (7a) | 29,207 | 30,016 | (10,315 | ) | (7b) | 48,908 | ||||||||||||||||||||||||
| Provision for doubtful accounts | 1,206 | (1,206 | ) | (5) | ||||||||||||||||||||||||||||||||
| Gain on foreign currency derivatives | (53 | ) | 53 | (8) | ||||||||||||||||||||||||||||||||
| Transaction-related expenses | 18,416 | 1,712 | (20,128 | ) | (9) | |||||||||||||||||||||||||||||||
| Total expenses | 344,578 | 48,022 | 60,998 | (24,724 | ) | 428,874 | 216,228 | (13,094 | ) | 632,007 | ||||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 21,205 | 9,721 | (7,984 | ) | 23,518 | 46,460 | (8,047 | ) | 13,094 | 51,508 | ||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 6,613 | 2,721 | (3,034 | ) | 8,567 | (10) | 14,867 | 211 | (3,231 | ) | (10) | 11,847 | ||||||||||||||||||||||||
| Income (loss) from continuing operations | 14,592 | 7,000 | (4,950 | ) | 14,951 | 31,593 | (8,258 | ) | 16,325 | 39,661 | ||||||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | 2 | (77 | ) | (75 | ) | (75 | ) | |||||||||||||||||||||||||||||
| Net income | 14,594 | 7,000 | (5,027 | ) | 14,951 | 31,518 | (8,258 | ) | 16,325 | 39,586 | ||||||||||||||||||||||||||
| Net loss attributable to noncontrolling interests | ||||||||||||||||||||||||||||||||||||
| Net income attributable to Acadia Healthcare Company, Inc. | $ | 14,594 | $ | 7,000 | $ | (5,027 | ) | $ | 14,951 | $ | 31,518 | $ | (8,258 | ) | $ | 16,325 | $ | 39,586 | ||||||||||||||||||
| Earnings per share-income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||||||
| Basic | $ | 0.23 | $ | 0.45 | $ | 0.46 | ||||||||||||||||||||||||||||||
| Diluted | $ | 0.23 | $ | 0.45 | $ | 0.46 | ||||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||
| Basic | 62,530 | 7,897 | (11a,11b) | 70,427 | 15,534 | (11c) | 85,961 | |||||||||||||||||||||||||||||
| Diluted | 62,894 | 7,897 | (11a,11b) | 70,791 | 15,534 | (11c) | 86,325 |
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 | ||||||||
| March 31, 2016 | Spot Rate | $ | 1.4368 | |||||
| Year ended December 31, 2015 | Average Rate | $ | 1.5284 | |||||
| Three months ended March 31, 2016 | Average Rate | $ | 1.4433 | |||||
| Three months ended March 31, 2015 | Average Rate | $ | 1.5155 |
| Priory (in thousands, in IFRS) | Priory (in $ thousands, in U.S. GAAP) | |||||||
| Revenue before provision for doubtful accounts | 571,183 | $ | 872,996 | |||||
| Provision for doubtful accounts | ||||||||
| Revenue | 571,183 | 872,996 | ||||||
| Salaries, wages and benefits | 315,473 | 482,169 | ||||||
| Professional fees | 31,500 | 48,145 | ||||||
| Supplies | 21,543 | 32,926 | ||||||
| Rents and leases | 29,141 | 44,539 | ||||||
| Other operating expenses | 54,155 | 82,771 | ||||||
| Depreciation and amortization | 50,311 | 76,895 | ||||||
| Interest expense, net | 81,476 | 124,528 | ||||||
| Asset impairment | 28,963 | 44,267 | ||||||
| Transaction-related expenses | 17,368 | 26,545 | ||||||
| Total expenses | 629,930 | 962,785 | ||||||
| (Loss) income from continuing operations before income taxes | (58,747 | ) | (89,789 | ) | ||||
| Benefit for income taxes | (20,758 | ) | (31,727 | ) | ||||
| Loss from continuing operations | (37,989 | ) | $ | (58,062 | ) |
| Priory (in thousands, in IFRS) | Priory (in $ thousands, in U.S. GAAP) | |||||||
| Revenue before provision for doubtful accounts | 76,640 | $ | 110,615 | |||||
| Provision for doubtful accounts | ||||||||
| Revenue | 76,640 | 110,615 | ||||||
| Salaries, wages and benefits | 42,675 | 61,593 | ||||||
| Professional fees | 5,751 | 8,300 | ||||||
| Supplies | 2,729 | 3,939 | ||||||
| Rents and leases | 3,827 | 5,524 | ||||||
| Other operating expenses | 7,508 | 10,836 | ||||||
| Depreciation and amortization | 6,315 | 9,114 | ||||||
| Interest expense, net | 26,989 | 38,953 | ||||||
| Transaction-related expenses | 4,006 | 5,782 | ||||||
| Total expenses | 99,800 | 144,041 | ||||||
| (Loss) income from continuing operations before income taxes | (23,160 | ) | (33,426 | ) | ||||
| Benefit for income taxes | 2,031 | 2,931 | ||||||
| Loss from continuing operations | (25,191 | ) | $ | (36,357 | ) |
| Priory (in thousands, in IFRS) | Priory (in $ thousands, in U.S. GAAP) | |||||||
| Revenue before provision for doubtful accounts | 137,368 | $ | 208,181 | |||||
| Provision for doubtful accounts | ||||||||
| Revenue | 137,368 | 208,181 | ||||||
| Salaries, wages and benefits | 77,225 | 117,034 | ||||||
| Professional fees | 6,576 | 9,966 | ||||||
| Supplies | 5,125 | 7,767 | ||||||
| Rents and leases | 7,176 | 10,875 | ||||||
| Other operating expenses | 14,291 | 21,658 | ||||||
| Depreciation and amortization | 12,479 | 18,912 | ||||||
| Interest expense, net | 19,806 | 30,016 | ||||||
| Transaction-related expenses | ||||||||
| Total expenses | 142,678 | 216,228 | ||||||
| (Loss) income from continuing operations before income taxes | (5,310 | ) | (8,047 | ) | ||||
| Benefit for income taxes | 139 | 211 | ||||||
| Loss from continuing operations | (5,449 | ) | $ | (8,258 | ) |
| Amount | Useful Lives (in years) | Monthly Depreciation | Year Ended December 31, 2015 | Three Months Ended March 31, 2015 | ||||||||||||||||
| Land | 24,597 | N/A | $ | $ | $ | |||||||||||||||
| Building and improvements | 88,705 | 10-40 | 586 | 957 | 954 | |||||||||||||||
| Equipment | 20,492 | 3-10 | 481 | 786 | 817 | |||||||||||||||
| Construction in progress | 2,369 | N/A | ||||||||||||||||||
| 136,163 | 1,067 | 1,743 | 1,743 | |||||||||||||||||
| Indefinite-lived intangible assets | 37,000 | N/A | ||||||||||||||||||
| Total depreciation and amortization expense | 1,743 | 1,743 | ||||||||||||||||||
| Less: historical depreciation and amortization expense of CRC | (2,459 | ) | (2,459 | ) | ||||||||||||||||
| Depreciation and amortization expense adjustment | $ | (716 | ) | $ | (716 | ) |
| Amount | Useful Lives (in years) | Monthly Depreciation | Year Ended December 31, 2015 | Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | |||||||||||||||||||
| Land | $ | 619,716 | N/A | $ | $ | $ | $ | |||||||||||||||||
| Building and improvements | 756,666 | 40 | 1,584 | 20,123 | 2,401 | 4,988 | ||||||||||||||||||
| Equipment | 199,408 | 3-10 | 3,538 | 44,960 | 5,366 | 11,145 | ||||||||||||||||||
| Construction in progress | 12,923 | N/A | ||||||||||||||||||||||
| 1,588,713 | 5,122 | 65,083 | 7,767 | 16,133 | ||||||||||||||||||||
| Indefinite-lived intangible assets | 42,999 | N/A | ||||||||||||||||||||||
| Depreciation and amortization expense | 65,083 | 7,767 | 16,133 | |||||||||||||||||||||
| Less: historical depreciation and amortization expense | (76,895 | ) | (9,114 | ) | (18,912 | ) | ||||||||||||||||||
| Depreciation and amortization expense adjustment | $ | (11,812 | ) | $ | (1,347 | ) | $ | (2,779 | ) |
| Year Ended December 31, 2015 | Three Months Ended March 31, 2015 | |||||||
| Interest related to 5.625% Senior Notes due 2023 | $ | 13,828 | $ | 6,526 | ||||
| Interest related to Term Loan B | 2,892 | 2,892 | ||||||
| Interest related to paydown of $97,500 of 12.875% Notes | (8,892 | ) | (3,138 | ) | ||||
| Interest related to revolving line of credit paydown, net of borrowing | 4,219 | 500 | ||||||
| Interest related to amortization of deferred financing costs | 676 | 281 | ||||||
| Less: historical interest expense of CRC | (8,883 | ) | (8,883 | ) | ||||
| Less: historical interest expense of other completed acquisitions | (1,005 | ) | (905 | ) | ||||
| Interest expense adjustment | $ | 2,835 | $ | (2,727 | ) |
| Year Ended December 31, 2015 | Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||
| Interest related to new TLA (i) | $ | 4,725 | $ | 591 | $ | 1,181 | ||||||
| Interest related to new TLB (ii) | 45,363 | 5,670 | 11,341 | |||||||||
| Interest related to 6.500% Senior Notes due 2024 | 25,350 | 3,169 | 6,338 | |||||||||
| Interest related to revolving line of credit paydown, net borrowing (iii) | (3,780 | ) | (945 | ) | ||||||||
| Interest related to amortization of deferred financing costs | 7,143 | 893 | 1,786 | |||||||||
| Historical Priory interest expense | (124,528 | ) | (38,953 | ) | (30,016 | ) | ||||||
| Interest expense adjustment | $ | (45,727 | ) | $ | (28,630 | ) | $ | (10,315 | ) |