Company Provides Full Year and First Quarter
2021 Guidance
Expects to Complete Debt Refinancing in
March 2021
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced
financial results for the fourth quarter and year ended December
31, 2020.
On January 19, 2021, the Company closed on the sale of Acadia’s
business operations in the United Kingdom, operating under the name
of The Priory Group, to Waterland Private Equity. The U.K. business
and its results have been presented as discontinued operations for
all periods in this release. Supplemental information for
discontinued operations has been included on pages 11 and 12.
Fourth Quarter 2020 Results
The Company reported revenue from continuing operations of
$541.3 million for the fourth quarter of 2020, compared with $501.2
million for the fourth quarter of 2019. Net loss attributable to
Acadia stockholders for the fourth quarter of 2020 was $783.7
million, or $8.78 per diluted share, compared with a net loss of
$11.3 million, or $0.13 per diluted share, for the fourth quarter
of 2019. The results for the fourth quarter of 2020 include a loss
from discontinued operations of $828.7 million, net of income
taxes, primarily related to the loss on sale of the U.K. business
of $867.3 million.
Including discontinued operations, combined revenue for the
fourth quarter of 2020 was $843.3 million and combined adjusted
EBITDA was $207.5 million. Adjusted income attributable to Acadia
stockholders per diluted share was $1.13 for the fourth quarter of
2020, which includes discontinued operations. Adjustments to income
include transaction-related expenses, debt extinguishment costs,
loss on impairment, loss on sale and the income tax effect of
adjustments to income. Financial results for continuing operations
combined with discontinued operations are presented, along with a
reconciliation of all non-GAAP financial results in this press
release, beginning on page 9.
Results for the fourth quarter of 2020 include other income of
$32.8 million related to the Provider Relief Fund (“PRF”)
established by the Coronavirus Aid, Relief, and Economic Security
(“CARES”) Act. The Company’s recognition of this income was based
on revised guidance in the Consolidated Appropriations Act, 2021
enacted in December 2020. The Company’s lost revenues and
additional expenses incurred in the year ended December 31, 2020 as
a result of the COVID-19 pandemic exceeded the grant income
recognized in 2020.
For the fourth quarter, Acadia’s U.S. same facility revenue
increased 7.6% compared with the fourth quarter of 2019, including
a 3.6% increase in patient days and a 3.8% increase in revenue per
patient day.
Debbie Osteen, Chief Executive Officer of Acadia Healthcare
Company, remarked, “We are very pleased with our financial and
operating results for the fourth quarter of 2020, capping off an
extraordinary and challenging year for Acadia. As the global
COVID-19 pandemic continues to affect communities across the
nation, we are mindful of our critical role as a leading provider
of behavioral healthcare services. The ongoing uncertainties and
economic and societal concerns have resulted in continued strong
demand for our services, especially for those already struggling
with behavioral health and addiction issues. As always, our primary
mission is to support our patients and the communities that we
serve, and we commend Acadia’s employees and clinicians for their
dedication and heroic efforts to provide the highest quality care
in a safe and accessible manner, especially during these
challenging times. We are fortunate to have an experienced team
across our operations and a proven operating model that supports
our ability to execute our strategy in a dynamic environment.
“At the end of 2020, we reached an agreement to sell our U.K.
operations to Waterland Private Equity, which closed in January.
This transaction is a significant milestone for Acadia, and we
believe the sale will maximize long-term value for our
stockholders. We are excited about the opportunities in the U.S. to
extend our market reach and enhance our service offerings. Our U.S.
operations showed very favorable results with improvement across
all key metrics for the fourth quarter of 2020, driven by solid
volumes and strong cost management.
“During the fourth quarter of 2020, we added 34 beds to our
existing U.S. operations, and, for the full year, we added 240 beds
to existing facilities and 220 beds through the opening of two
joint venture facilities, as well as the opening of six
comprehensive treatment centers (“CTC”) in the U.S. In December, we
opened Ascension St. Thomas Behavioral Health Hospital, a new
76-bed facility, through our joint venture with Ascension St.
Thomas in Nashville, Tennessee. Also, in December, we announced a
joint venture partnership with Henry Ford Health System for a
192-bed inpatient facility, which will serve the Detroit metro area
when it opens in late 2022. We continue to execute on part of our
strategy by partnering with health systems and hospitals across the
country.
Debt Refinancing, Cash and Liquidity
As of December 31, 2020, the Company had $378.7 million in cash
and cash equivalents, which excludes cash held by the U.K.
operations. The Company voluntarily paid down $105 million of Term
Loan B facility under its amended and restated credit agreement in
January 2021 prior to completion of the U.K transaction. From the
sale of the U.K. operations, the Company received $1,525 million of
gross proceeds before deducting the settlement of foreign currency
hedging liabilities of $85 million, cash retained by the buyer of
approximately $75 million and transaction costs of $16 million. The
Company initially used the sale proceeds of approximately $1,425
million (or $1,350 million, net of cash retained by the buyer) to
repay all of its outstanding Term Loan A facility of $312 million
and Term Loan B of $768 million and added $345 million of cash to
the balance sheet.
On January 29, 2021, the Company sent conditional notices of
full redemption for $650 million of 5.265% Senior Notes due 2023
and $390 million of 6.500% Senior Notes due 2024 to the holders of
such notes. The redemption of this $1,040 million of additional
debt, along with breakage costs of $6 million and estimated
transaction costs of $9 million, is expected to be completed in
early March and to be funded with cash from the balance sheet of
$430 million and proceeds from a new senior secured credit facility
of $625 million. The Company expects to enter a new term loan and
revolver as part of a five-year senior secured credit facility.
Upon completion of these transactions, Acadia’s debt structure
is expected to include $1,025 million of a new term loan and
revolving credit facility, $450 million of 5.500% Senior Notes due
2028, and $475 million of 5.000% Senior Notes due 2029, and the
Company’s net leverage ratio is expected to be below 3.0x.
“As intended, we used the proceeds from the U.K. transaction to
pay down our outstanding debt,” added Osteen. “We are pleased to
refinance our other outstanding debt and improve our leverage
profile. In addition, we continue to realize the cost savings from
the steps we have taken in 2019 and 2020 related to our expense and
cash management strategies. As a result, Acadia’s balance sheet is
very strong with ample liquidity and capital to invest in and grow
our business.”
Financial Guidance
Acadia today established financial guidance for 2021, as
follows:
- Revenue in a range of $2.23 billion to $2.28 billion;
- Adjusted EBITDA in a range of $490 million to $520
million;
- Adjusted earnings per diluted share in a range of $2.20 to
$2.45;
- Interest expense of approximately $80 to $85 million of which
$11 million of annualized interest expense is expected to be
eliminated after the first quarter;
- A tax rate of approximately 26.5%;
- Depreciation and amortization expense in a range of $105
million to $110 million;
- Stock compensation expense of approximately $28 million;
- Operating cash flows in a range of $250 million to $285
million, which includes repayment in 2021 of $53 million of the $84
million of total Medicare Accelerated and Advanced Payment Program
and employer payroll tax deferrals from the CARES Act; and
- Total capital expenditures in a range of $285 million to $325
million, including approximately $45 million for maintenance
capital expenditures.
Acadia also established financial guidance for the first quarter
of 2021, as follows:
- Revenue in a range of $540 million to $550 million;
- Adjusted EBITDA in a range of $110 million to $115 million;
and
- Adjusted earnings per diluted share in a range of $0.40 to
$0.45.
The Company’s guidance does not include discontinued operations
or the impact of any future acquisitions, divestitures or
transaction-related expenses.
Looking Ahead
Osteen added, “Looking ahead to 2021, we expect to add
approximately 300 beds to existing facilities and 170 beds through
the opening of one wholly owned facility and one joint venture
facility. Additionally, due to the strong demand for treatment of
patients with opioid use disorder, we expect to open 11 CTCs in
2021. Our strategic investments and strong pipeline of bed
expansions, de novo facilities and joint ventures will provide
additional growth opportunities for Acadia to reach more patients
in new and existing markets.
“With our singular strategic focus on our U.S. operations and a
strong financial position to support our growth initiatives, Acadia
is well-positioned to meet the expected demand for mental health
and addiction treatment. Across our operations, we will strive to
deliver the highest quality of patient care, extend our market
reach, and advance our market leadership as a behavioral healthcare
facilities operator.”
Conference Call
Acadia will hold a conference call to discuss its fourth quarter
financial results at 10:00 a.m. Eastern Time on Friday, February
26, 2021. A live webcast of the conference call will be available
at www.acadiahealthcare.com in the “Investors” section of the
website. The webcast of the conference call will be available
through March 12, 2021.
About Acadia
Acadia is a leading provider of behavioral healthcare services
across the United States. Acadia operates a network of 227
behavioral healthcare facilities with approximately 9,900 beds in
40 states and Puerto Rico. With more than 20,000 employees serving
approximately 70,000 patients daily, Acadia is the largest
stand-alone behavioral health company in the U.S. Acadia provides
behavioral healthcare 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 press 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 press 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, including, without
limitation, disruption to the U.S. economy and financial markets;
reduced admissions and patient volumes; increased costs relating to
labor, supply chain and other expenditures; and difficulty in
collecting patient accounts receivable due to increases in the
unemployment rate and the number of underinsured and uninsured
patients; (ii) the risk that Acadia does not complete its debt
refinancing transactions on terms and conditions acceptable to
Acadia; (iii) 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; (iv) Acadia’s ability to add beds, expand
services, enhance marketing programs and improve efficiencies at
its facilities; (v) potential reductions in payments received by
Acadia from government and third-party payors; (vi) the occurrence
of patient incidents, governmental investigations, litigation and
adverse regulatory actions, which could adversely affect the price
of our common stock and result in substantial payments and
incremental regulatory burdens; (vii) 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
(viii) 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.
Acadia Healthcare Company, Inc. Condensed
Consolidated Statements of Operations (Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
(In thousands, except per
share amounts)
Revenue
$
541,276
$
501,225
$
2,089,929
$
2,008,381
Salaries, wages and benefits (including equity-based
compensation expense of $6,246, $2,985, $22,504 and $17,307,
respectively)
301,658
273,406
1,154,522
1,107,357
Professional fees
29,480
30,062
120,489
118,451
Supplies
22,213
21,768
87,241
85,534
Rents and leases
9,387
8,777
37,362
35,486
Other operating expenses
59,732
65,851
262,272
259,536
Other income
(32,819
)
-
(32,819
)
-
Depreciation and amortization
24,958
22,667
95,256
87,923
Interest expense, net
39,707
44,641
158,105
187,325
Debt extinguishment costs
3,962
-
7,233
-
Loss on impairment
4,751
27,217
4,751
27,217
Transaction-related expenses
2,162
9,035
11,720
21,157
Total expenses
465,191
503,424
1,906,132
1,929,986
Income (loss) from continuing operations before income taxes
76,085
(2,199
)
183,797
78,395
Provision for income taxes
29,929
9,993
40,606
25,085
Income (loss) from continuing operations
46,156
(12,192
)
143,191
53,310
(Loss) income from discontinued operations, net of taxes
(828,697
)
1,879
(812,390
)
56,812
Net (loss) income
(782,541
)
(10,313
)
(669,199
)
110,122
Net income attributable to noncontrolling interests
(1,131
)
(941
)
(2,933
)
(1,199
)
Net (loss) income attributable to Acadia Healthcare Company, Inc.
$
(783,672
)
$
(11,254
)
$
(672,132
)
$
108,923
Basic earnings (loss) per share attributable to Acadia
Healthcare Company, Inc. stockholders: Income (loss) from
continuing operations attributable to Acadia Healthcare Company,
Inc.
$
0.51
$
(0.15
)
$
1.60
$
0.59
(Loss) income from discontinued operations
$
(9.42
)
$
0.02
$
(9.25
)
$
0.65
Net (loss) income attributable to Acadia Healthcare Company, Inc.
$
(8.91
)
$
(0.13
)
$
(7.65
)
$
1.24
Diluted earnings (loss) per share attributable to Acadia
Healthcare Company, Inc. stockholders: Income (loss) from
continuing operations attributable to Acadia Healthcare Company,
Inc.
$
0.50
$
(0.15
)
$
1.58
$
0.59
(Loss) income from discontinued operations
$
(9.28
)
$
0.02
$
(9.17
)
$
0.65
Net (loss) income attributable to Acadia Healthcare Company, Inc.
$
(8.78
)
$
(0.13
)
$
(7.59
)
$
1.24
Weighted-average shares outstanding: Basic
87,952
87,674
87,875
87,612
Diluted
89,233
87,674
88,595
87,816
Acadia Healthcare Company, Inc. Condensed
Consolidated Balance Sheets (Unaudited)
December 31,
2020
2019
(In thousands)
ASSETS Current assets: Cash and cash equivalents
$
378,697
$
99,535
Accounts receivable, net
273,551
288,863
Other current assets
61,332
64,967
Current assets held for sale
1,809,815
88,846
Total current assets
2,523,395
542,211
Property and equipment, net
1,622,896
1,499,587
Goodwill
2,105,264
2,085,104
Intangible assets, net
68,535
68,826
Deferred tax assets
3,209
3,339
Operating lease right-of-use assets
96,937
97,795
Other assets
79,126
55,106
Noncurrent assets held for sale
-
2,527,174
Total assets
$
6,499,362
$
6,879,142
LIABILITIES AND EQUITY Current liabilities:
Current portion of long-term debt
$
153,478
$
43,679
Accounts payable
87,815
90,257
Accrued salaries and benefits
124,912
93,595
Current portion of operating lease liabilities
18,916
18,119
Other accrued liabilities
178,453
69,234
Derivative instrument liabilities
84,584
-
Current liabilities held for sale
660,027
148,692
Total current liabilities
1,308,185
463,576
Long-term debt
2,968,948
3,105,420
Deferred tax liabilities
50,017
22,820
Operating lease liabilities
84,029
85,643
Noncurrent derivative instrument liabilities
-
68,915
Other liabilities
133,412
107,152
Noncurrent liabilities held for sale
-
487,084
Total liabilities
4,544,591
4,340,610
Redeemable noncontrolling interests
55,315
33,151
Equity: Common stock
880
877
Additional paid-in capital
2,580,327
2,557,642
Accumulated other comprehensive loss
(371,365
)
(414,884
)
(Accumulated deficit) retained earnings
(310,386
)
361,746
Total equity
1,899,456
2,505,381
Total liabilities and equity
$
6,499,362
$
6,879,142
Acadia Healthcare Company, Inc. Condensed
Consolidated Statements of Cash Flows (Unaudited)
Year Ended December
31,
2020
2019
(In thousands)
Operating activities: Net (loss) income
$
(669,199
)
$
110,122
Adjustments to reconcile net income (loss) to net cash provided
by operating activities: Depreciation and amortization
95,256
87,923
Amortization of debt issuance costs
12,636
11,987
Equity-based compensation expense
22,504
17,307
Deferred income taxes
53,108
1,089
Loss (income) from discontinued operations, net of taxes
812,390
(56,812
)
Debt extinguishment costs
7,233
-
Loss on impairment
4,751
27,217
Other
1,041
3,916
Change in operating assets and liabilities, net of effect of
acquisitions: Accounts receivable, net
15,340
(18,714
)
Other current assets
9,675
(501
)
Other assets
1,519
(2,372
)
Accounts payable and other accrued liabilities
77,993
(20,135
)
Accrued salaries and benefits
9,632
5,540
Other liabilities
48,965
16,862
Net cash provided by continuing operating activities
502,844
183,429
Net cash provided by discontinued operating activities
155,963
149,475
Net cash provided by operating activities
658,807
332,904
Investing activities: Cash paid for acquisitions, net
of cash acquired
-
(44,900
)
Cash paid for capital expenditures
(216,615
)
(225,061
)
Cash paid for real estate acquisitions
(8,349
)
(7,618
)
Proceeds from sale of property and equipment
92
11,765
Settlement of foreign currency derivatives
-
105,008
Other
(13,365
)
12,975
Net cash used in continuing investing activities
(238,237
)
(147,831
)
Net cash used in discontinued investing activities
(43,602
)
(53,310
)
Net cash used in investing activities
(281,839
)
(201,141
)
Financing activities: Borrowings on long-term debt
925,000
-
Borrowings on revolving credit facility
100,000
76,573
Principal payments on revolving credit facility
(100,000
)
(76,573
)
Principal payments on long-term debt
(41,291
)
(52,984
)
Repayment of long-term debt
(909,785
)
-
Payment of debt issuance costs
(18,295
)
-
Common stock withheld for minimum statutory taxes, net
184
(1,648
)
Distributions to noncontrolling interests
(916
)
(154
)
Other
(3,146
)
(4,369
)
Net cash used in continuing financing activities
(48,249
)
(59,155
)
Net cash used in discontinued financing activities
(3,250
)
(2,472
)
Net cash used in financing activities
(51,499
)
(61,627
)
Effect of exchange rate changes on cash
4,087
3,546
Net increase in cash and cash equivalents, including cash
classified within current assets held for sale
329,556
73,682
Less: cash classified within current assets held for sale
(75,051
)
(24,657
)
Net increase in cash and cash equivalents
254,505
49,025
Cash and cash equivalents at beginning of the period
124,192
50,510
Cash and cash equivalents at end of the period
$
378,697
$
99,535
Effect of acquisitions: Assets acquired, excluding
cash
$
20,200
$
48,594
Liabilities assumed
(53
)
(3,694
)
Redeemable noncontrolling interest resulting from an acquisition
(20,147
)
-
Cash paid for acquisitions, net of cash acquired
$
-
$
44,900
Acadia Healthcare Company, Inc. Operating
Statistics (Unaudited, Revenue in thousands)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
% Change
2020
2019
% Change
U.S. Same Facility Results (a) Revenue
$
538,023
$
500,241
7.6
%
$
2,076,332
$
1,997,825
3.9
%
Patient Days
669,126
645,882
3.6
%
2,649,430
2,584,470
2.5
%
Admissions
42,352
42,065
0.7
%
170,704
171,812
-0.6
%
Average Length of Stay (b)
15.8
15.4
2.9
%
15.5
15.0
3.2
%
Revenue per Patient Day
$
804
$
775
3.8
%
$
784
$
773
1.4
%
Adjusted EBITDA margin (c)
34.0
%
24.5
%
950 bps
27.9
%
25.4
%
250 bps U.S. Facility Results Revenue
$
541,276
$
501,225
8.0
%
$
2,089,929
$
2,008,381
4.1
%
Patient Days
671,840
652,415
3.0
%
2,667,762
2,613,164
2.1
%
Admissions
42,639
42,222
1.0
%
172,277
172,320
0.0
%
Average Length of Stay (b)
15.8
15.5
2.0
%
15.5
15.2
2.1
%
Revenue per Patient Day
$
806
$
768
4.9
%
$
783
$
769
1.9
%
Adjusted EBITDA margin (c)
33.5
%
24.3
%
920 bps
27.5
%
25.1
%
240 bps (a) Same facility results for the periods presented include
facilities we have operated for more than one year and exclude
certain closed services. (b) Average length of stay is defined as
patient days divided by admissions. (c) For the three months and
year ended December 31, 2020, includes other income of $32.8
million.
Acadia Healthcare Company,
Inc.
Reconciliation of Net (Loss)
Income Attributable to Acadia Healthcare Company, Inc. to Adjusted
EBITDA
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
(in thousands)
Net (loss) income attributable to Acadia Healthcare Company,
Inc.
$
(783,672
)
$
(11,254
)
$
(672,132
)
$
108,923
Net income attributable to noncontrolling interests
1,131
941
2,933
1,199
Loss (income) from discontinued operations, net of taxes
828,697
(1,879
)
812,390
(56,812
)
Provision for income taxes
29,929
9,993
40,606
25,085
Interest expense, net
39,707
44,641
158,105
187,325
Depreciation and amortization
24,958
22,667
95,256
87,923
Continuing operations EBITDA
140,750
65,109
437,158
353,643
Adjustments: Equity-based compensation expense (a)
6,246
2,985
22,504
17,307
Transaction-related expenses (b)
2,162
9,035
11,720
21,157
Debt extinguishment costs (c)
3,962
-
7,233
-
Loss on impairment (d)
4,751
27,217
4,751
27,217
Continuing operations adjusted EBITDA
$
157,871
$
104,346
$
483,366
$
419,324
Continuing operations adjusted EBITDA margin
29.2
%
20.8
%
23.1
%
20.9
%
Discontinued operations adjusted EBITDA
$
49,596
$
40,010
$
160,776
$
166,559
Discontinued operations adjusted EBITDA margin
16.4
%
14.3
%
14.4
%
15.2
%
Combined adjusted EBITDA
$
207,467
$
144,356
$
644,142
$
585,883
Combined adjusted EBITDA margin
24.6
%
18.5
%
20.1
%
18.9
%
See footnotes on page 13.
Acadia Healthcare
Company, Inc. Reconciliation of Adjusted Income Attributable
to Acadia Healthcare Company, Inc. to Net (Loss) Income
Attributable to Acadia Healthcare Company, Inc.
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
(in thousands, except per
share amounts)
Net (loss) income attributable to Acadia Healthcare Company,
Inc.
$
(783,672
)
$
(11,254
)
$
(672,132
)
$
108,923
Loss (income) from discontinued operations, net of taxes
828,697
(1,879
)
812,390
(56,812
)
Adjustments to income: Transaction-related expenses (b)
2,162
9,035
11,720
21,157
Debt extinguishment costs (c)
3,962
-
7,233
-
Loss on impairment (d)
4,751
27,217
4,751
27,217
Provision for income taxes
29,929
9,993
40,606
25,085
Adjusted income from continuing operations before income taxes
attributable to Acadia Healthcare Company, Inc.
85,829
33,112
204,568
125,570
Adjusted income from discontinued operations before income taxes
31,483
21,841
86,258
90,669
Adjusted income before income taxes attributable to Acadia
Healthcare Company, Inc.
117,312
54,953
290,826
216,239
Income tax effect of adjustments to income (e)
16,124
9,925
44,496
37,110
Adjusted income attributable to Acadia Healthcare Company, Inc.
$
101,188
$
45,028
$
246,330
$
179,129
Weighted-average shares outstanding - diluted (f)
89,233
87,963
88,595
87,816
Adjusted income attributable to Acadia Healthcare Company,
Inc. per diluted share
$
1.13
$
0.51
$
2.78
$
2.04
See footnotes on page 13.
Acadia Healthcare
Company, Inc. Discontinued Operations Supplemental Financial
Information (Unaudited)
Statements of Discontinued
Operations
Three Months Ended December
31,
Year Ended December
31,
2020
2019
2020
2019
(in thousands)
Revenue
$
301,996
$
279,007
$
1,119,768
$
1,099,081
Salaries, wages and benefits
166,620
155,375
632,134
609,823
Professional fees
35,027
33,333
127,291
122,532
Supplies
10,011
9,632
38,285
37,527
Rents and leases
12,890
12,592
47,748
46,743
Other operating expenses
27,852
28,065
113,534
115,897
Depreciation and amortization
19,196
19,100
74,935
76,121
Interest expense, net
(1,083
)
(931
)
(417
)
(231
)
Loss on sale
867,324
-
867,324
-
Loss on impairment
-
27,169
20,239
27,169
Transaction-related expenses
984
2,721
8,719
5,907
Total expenses
1,138,821
287,056
1,929,792
1,041,488
(Loss) income from discontinued operations before income taxes
(836,825
)
(8,049
)
(810,024
)
57,593
(Benefit from) provision for income taxes
(8,128
)
(9,928
)
2,366
781
(Loss) income from discontinued operations
(828,697
)
1,879
(812,390
)
56,812
Reconciliation of Net (Loss)
Income from Discontinued Operations to Discontinued Operations
Adjusted EBITDA
Loss (income) from discontinued operations, net of taxes
$
(828,697
)
$
1,879
$
(812,390
)
$
56,812
Provision for income taxes
(8,128
)
(9,928
)
2,366
781
Interest expense, net
(1,083
)
(931
)
(417
)
(231
)
Depreciation and amortization
19,196
19,100
74,935
76,121
Discontinued operations EBITDA
(818,712
)
10,120
(735,506
)
133,483
Adjustments: Transaction-related expenses (b)
984
2,721
8,719
5,907
Loss on impairment (d)
-
27,169
20,239
27,169
Loss on sale (g)
867,324
-
867,324
-
Discontinued operations adjusted EBITDA
$
49,596
$
40,010
$
160,776
$
166,559
Discontinued operations adjusted EBITDA margin
16.4
%
14.3
%
14.4
%
15.2
%
Reconciliation of Net (Loss)
Income from Discontinued Operations to Adjusted Income from
Discontinued Operations
Loss (income) from discontinued operations, net of taxes
$
(828,697
)
$
1,879
$
(812,390
)
$
56,812
Adjustments to income: Transaction-related expenses (b)
984
2,721
8,719
5,907
Loss on impairment (d)
-
27,169
20,239
27,169
Loss on sale (g)
867,324
-
867,324
-
(Benefit from) provision for income taxes
(8,128
)
(9,928
)
2,366
781
Adjusted income from discontinued operations before income taxes
$
31,483
$
21,841
$
86,258
$
90,669
Acadia Healthcare Company, Inc.
Discontinued Operations Operating Statistics (Unaudited,
Revenue in thousands)
Three Months Ended December
31,
Year Ended December
31,
2020
2019
% Change
2020
2019
% Change
U.K. Same Facility Results (a,c) Revenue
$
279,301
$
260,772
7.1
%
$
1,027,157
$
1,006,333
2.1
%
Patient Days
507,055
497,279
2.0
%
1,982,396
2,000,755
-0.9
%
Admissions
2,176
2,265
-3.9
%
8,696
9,346
-7.0
%
Average Length of Stay (b)
233.0
219.5
6.1
%
228.0
214.1
6.5
%
Revenue per Patient Day
$
551
$
524
5.0
%
$
518
$
503
3.0
%
Adjusted EBITDA margin
18.2
%
16.1
%
210 bps
16.3
%
16.7
%
-40 bps U.K. Facility Results (c) Revenue
$
301,996
$
286,134
5.5
%
$
1,119,768
$
1,104,599
1.4
%
Patient Days
638,444
664,709
-4.0
%
2,578,284
2,673,715
-3.6
%
Admissions
2,378
2,626
-9.4
%
9,872
10,786
-8.5
%
Average Length of Stay (b)
268.5
253.1
6.1
%
261.2
247.9
5.4
%
Revenue per Patient Day
$
473
$
430
9.9
%
$
434
$
413
5.1
%
Adjusted EBITDA margin
16.4
%
14.4
%
200 bps
14.4
%
15.2
%
-80 bps (a) Same facility results for the periods presented include
facilities we have operated for more than one year and exclude the
elderly care division. (b) Average length of stay is defined as
patient days divided by admissions. (c) Revenue and revenue per
patient day for the three months and year ended December 31, 2019
is adjusted to reflect the foreign currency exchange rate for the
comparable periods of 2020 in order to eliminate the effect of
changes in the exchange rate. The exchange rate used in the
adjusted revenue and revenue per patient day amounts for the three
months and year ended December 31, 2019 is 1.32 and 1.28,
respectively.
Acadia Healthcare Company, Inc.
Footnotes We have included certain financial measures
in this press release, including Continuing Operations EBITDA,
Continuing Operations Adjusted EBITDA, Continuing Operations
Adjusted EBITDA margin, Continuing Operations Adjusted income
before income taxes, Discontinued Operations EBITDA, Discontinued
Operations Adjusted EBITDA, Discontinued Operations Adjusted EBITDA
margin, Adjusted income from discontinued operations before income
taxes and Adjusted income, which are “non-GAAP financial measures”
as defined under the rules and regulations promulgated by the SEC.
We define Continuing Operations EBITDA as net (loss) income
adjusted for net income attributable to noncontrolling interests,
loss (income) from discontinued operations, net of taxes, provision
for income taxes, net interest expense and depreciation and
amortization. We define Continuing Operations Adjusted EBITDA as
Continuing Operations EBITDA adjusted for equity-based compensation
expense, transaction-related expenses, debt extinguishment costs
and loss on impairment. We define Continuing Operations Adjusted
EBITDA margin as Continuing Operations Adjusted EBITDA divided by
revenue. We define Continuing Operations Adjusted income before
income taxes as net (loss) income adjusted for net income
attributable to noncontrolling interests, loss (income) from
discontinued operations, net of taxes, transaction-related
expenses, debt extinguishment costs, loss on impairment and
provision for income taxes. We define Discontinued
Operations EBITDA as loss (income) from discontinued operations,
net of taxes, provision for income taxes, net interest expense and
depreciation and amortization. We define Discontinued Operations
Adjusted EBITDA as Discontinued Operations EBITDA adjusted for
transaction-related expenses, loss on impairment and loss on sale.
We define Discontinued Operations Adjusted EBITDA margin as
Discontinued Operations Adjusted EBITDA divided by revenue from
discontinued operations. We define Adjusted income from
discontinued operations before income taxes as loss (income) from
discontinued operations, net of taxes, adjusted for
transaction-related expenses, loss on impairment, loss on sale and
(benefit from) provision for income taxes. We define
Combined Adjusted EBITDA as the sum of Continuing Operations
Adjusted EBITDA and Discontinued Operations Adjusted EBITDA. We
define Adjusted income attributable to Acadia Healthcare Company,
Inc. as the sum of Adjusted income from continuing operations
before income taxes attributable to Acadia Healthcare Company,
Inc., Adjusted income from discontinued operations before income
taxes and income tax effect of adjustments to income. The
non-GAAP financial measures presented herein are supplemental
measures of our performance and are not required by, or presented
in accordance with, generally accepted accounting principles in the
United States (“GAAP”). The non-GAAP financial measures presented
herein are not measures of our financial performance under GAAP and
should not be considered as alternatives to net income or any other
performance measures derived in accordance with GAAP or as an
alternative to cash flow from operating activities as measures of
our liquidity. Our measurements of these non-GAAP financial
measures may not be comparable to similarly titled measures of
other companies. We have included information concerning the
non-GAAP financial measures in this press release because we
believe that such information is used by certain investors as
measures of a company’s historical performance. We believe these
measures are frequently used by securities analysts, investors and
other interested parties in the evaluation of issuers of equity
securities, many of which present similar non-GAAP financial
measures when reporting their results. Because Adjusted EBITDA is
not a measurement determined in accordance with GAAP and is thus
susceptible to varying calculations, Adjusted EBITDA, as presented,
may not be comparable to other similarly titled measures of other
companies. Our presentation of these non-GAAP financial measures
should not be construed as an inference that our future results
will be unaffected by unusual or nonrecurring items. (a)
Represents the equity-based compensation expense of Acadia.
(b) Represents transaction-related expenses incurred by Acadia
primarily related to termination, restructuring, strategic review,
management transition and other similar costs. (c)
Represents debt extinguishment costs recorded in connection with
the redemption of the 6.125% Senior Notes and 5.125% Senior Notes
in June 2020, issuance of the 5.000% Senior Notes in October 2020
and the Fourth Repricing Facilities Amendment to the Amended and
Restated Credit Facility in November 2020. (d) Represents
non-cash long-lived asset impairment charges related to certain
facility closures. (e) Represents the income tax effect of
adjustments to income based on tax rates of 13.7% and 18.1% for the
three months ended December 31, 2020 and 2019, respectively, and
15.3% and 17.2% for the year ended December 31, 2020 and 2019,
respectively. (f) For the three months ended December 31,
2019, approximately 0.3 million of the outstanding restricted stock
and shares of common stock issuable upon exercise of outstanding
stock option awards have been included in the calculation of
weighted-average shares outstanding-diluted. These shares are
excluded from the calculation of diluted earnings per share in the
condensed consolidated statement of operations because the net loss
for the three months ended December 31, 2019 causes such securities
to be anti-dilutive. (g) Represents the loss on sale,
including a non-cash goodwill impairment charge of $356.2 million,
recorded in connection with the U.K. sale.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225006226/en/
Gretchen Hommrich Director, Investor Relations (615)
861-6000
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