Acadia Healthcare Provides Business Update
March 19 2020 - 4:05PM
Business Wire
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today provides a
business update to investors in light of the ongoing market
environment.
Debbie Osteen, Chief Executive Officer of Acadia Healthcare
Company, remarked, “Today, we face an unprecedented global event
with the COVID-19 pandemic. Though we do not know exactly how this
situation will unfold, we are carefully monitoring the impact to
our business and believe Acadia is well-positioned to support our
patient population and continue to grow our business. The health
and safety of our staff, patients and visitors are always our top
priorities, and we have implemented recommended precautionary
measures throughout our operations. We have strong local leadership
and staff in our facilities who continue to support and provide our
patients with high-quality care every day. We believe the demand
for mental health and substance use treatment is not discretionary
or elective. We continue to see demand across our services lines
consistent with our expectations.
“As we disclosed when we announced financial results on February
27, 2020, we commenced a formal process regarding the sale of our
U.K. business in January and received multiple indications of
interest. While the interest from potential buyers remains strong,
given evolving market dynamics related to the COVID-19 pandemic, we
have decided to temporarily suspend the sale process until market
conditions improve. Our objective continues to be maximizing value
for our stockholders. At this time, our focus is on serving our
patients in the U.K. to the very best of our ability and ensuring
the safety and health of our employees.
“Our balance sheet remains strong, and we have adequate
liquidity and capital to invest in and grow our business. Acadia
had $90 million in cash and cash equivalents and full availability
under its $500 million revolving credit facility as of February 29,
2020.
“As we emerge from this difficult time, we believe our services
will be in greater need, and we will be very well-positioned to
meet that demand,” added Osteen.
About Acadia
Acadia is a leading provider of behavioral healthcare services.
At December 31, 2019, Acadia operated a network of 585 behavioral
healthcare facilities with approximately 18,200 beds in 40 states,
the United Kingdom and Puerto Rico. Acadia provides behavioral
health and addiction services to its patients in a variety of
settings, including inpatient psychiatric hospitals, specialty
treatment facilities, residential treatment centers and outpatient
clinics.
Forward-Looking Information
This news release contains forward-looking statements.
Generally, words such as “may,” “will,” “should,” “could,”
“anticipate,” “expect,” “intend,” “estimate,” “plan,” “continue,”
and “believe” or the negative of or other variation on these and
other similar expressions identify forward-looking statements.
These forward-looking statements are made only as of the date of
this news release. We do not undertake to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise. Forward-looking statements are based on
current expectations and involve risks and uncertainties and our
future results could differ significantly from those expressed or
implied by our forward-looking statements. Factors that may cause
actual results to differ materially include, without limitation,
(i) the impact of the COVID-19 pandemic; (ii) potential
difficulties operating our business in light of political and
economic instability in the U.K. and globally relating to the
U.K.’s departure from the European Union; (iii) the impact of
fluctuations in foreign exchange rates, including the devaluation
of the British Pound Sterling (GBP) relative to the U.S. Dollar
(USD); (iv) Acadia’s efforts to sell its U.K. operations may not
result in any definitive transaction or enhance stockholder value;
(v) potential difficulties in successfully integrating the
operations of acquired facilities or realizing the expected
benefits and synergies of our acquisitions, joint ventures and de
novo transactions; (vi) Acadia’s ability to add beds, expand
services, enhance marketing programs and improve efficiencies at
its facilities; (vii) potential reductions in payments received by
Acadia from government and commercial payors; (viii) the occurrence
of patient incidents, governmental investigations and adverse
regulatory actions, which could adversely affect the price of our
common stock and result in substantial payments and incremental
regulatory burdens; (ix) the risk that Acadia may not generate
sufficient cash from operations to service its debt and meet its
working capital and capital expenditure requirements; and (x)
potential operating difficulties, labor costs, client preferences,
changes in competition and general economic or industry conditions
that may prevent Acadia from realizing the expected benefits of its
business strategies. These factors and others are more fully
described in Acadia’s periodic reports and other filings with the
SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20200319005752/en/
Gretchen Hommrich Director, Investor Relations (615)
861-6000
Acadia Healthcare (NASDAQ:ACHC)
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