Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced
financial results for the second quarter ended June 30, 2012.
Revenue increased 58.1% for the second quarter to $100.5 million
compared with $63.6 million for the second quarter of 2011. Income
from continuing operations was $6.1 million, or $0.17 per diluted
share, for the second quarter of 2012, compared with a loss from
continuing operations of $21.7 million, or $1.23 per diluted share,
for the second quarter last year. Adjusted income from continuing
operations was $0.18 per diluted share, excluding
transaction-related expenses totaling $0.7 million, for the second
quarter of 2012 compared with a loss of $1.01 per diluted share,
excluding sponsor management fees and transaction-related expenses
totaling $6.3 million, for the second quarter of 2011. A
reconciliation of all GAAP and non-GAAP financial results in this
release is on pages 7 and 8.
For the first six months of 2012, revenues were $190.1 million
compared with $80.4 million for the same period in 2011. Income
from continuing operations was $9.4 million, or $0.27 per diluted
share, for the first half of 2012, compared with a loss from
continuing operations of $22.0 million, or $1.24 per diluted share,
for the first six months of 2011. Adjusted income from continuing
operations was $0.29 per diluted share, excluding
transaction-related expenses totaling $1.4 million, for the first
half of 2012 compared with a loss of $0.94 per diluted share,
excluding sponsor management fees and transaction-related expenses
totaling $9.0 million, for the first six months of 2011.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia,
commented, “Acadia’s second quarter revenue growth was primarily
driven by the expansion in the number of beds in operation to
approximately 2,150 beds in 32 facilities at the end of the second
quarter of 2012 from over 1,700 beds in 19 facilities at the end of
the second quarter last year. In addition, we produced 7.3% growth
in same facility revenue for the second quarter of 2012, which was
driven primarily by a 9.2% increase in patient days for the
period.
“We are also pleased with the strength of our margins for the
second quarter of 2012. The Company’s same facility EBITDA margin
increased 60 basis points to 23.0% for the quarter compared with
the same quarter in 2011. This increase contributed to the
expansion in our adjusted consolidated EBITDA margin to 20.3%, up
280 basis points from the second quarter last year.
“The Company is well positioned to fund our organic growth
initiatives and acquisition strategy. We continue to generate
significant net cash flow from continuing operations, and we have
availability of approximately $75 million under our revolving
credit facility at the end of the second quarter. Furthermore, we
completed a public offering of 9,487,500 shares of common stock in
May, raising net proceeds of approximately $139 million. As a
result, our ratio of total net debt (total debt minus cash and cash
equivalents) to trailing 12 months adjusted EBITDA was 2.5 at June
30, 2012.”
Acadia today revised its guidance for 2012 adjusted earnings per
diluted share to a range of $0.59 to $0.60 based upon the impact of
the additional shares of common stock outstanding from the May
public offering. The Company’s previous guidance for 2012 adjusted
earnings per diluted share was a range of $0.65 to $0.67. The
Company’s guidance for adjusted earnings per diluted share excludes
transaction-related expenses and does not include the impact of any
future acquisitions.
Acadia will hold a conference call to discuss its second quarter
financial results at 9:00 a.m. Eastern Time on Wednesday,
August 1, 2012. A live webcast of the conference call will be
available at www.acadiahealthcare.com in the “Investors” section of
the website or at www.earnings.com. The webcast of the conference
call will be available through August 15, 2012.
Risk Factors
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) Acadia’s ability to complete acquisitions and successfully
integrate the operations of the acquired facilities; (ii) Acadia’s
ability to add beds, expand services, enhance marketing programs
and improve efficiencies at its facilities; (iii) potential
reductions in payments received by Acadia from the government and
third-party payors; (iv) 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 (v)
potential operating difficulties, client preferences, changes in
competition and general economic or industry conditions that may
prevent Acadia from realizing the expected benefits of its business
strategy. These factors and others are more fully described in
Acadia’s periodic reports and other filings with the SEC.
About Acadia
Acadia is a provider of inpatient behavioral health care
services. Acadia operates a network of 32 behavioral health
facilities with approximately 2,150 licensed beds in 18 states.
Acadia provides psychiatric and chemical dependency services to its
patients in a variety of settings, including inpatient psychiatric
hospitals, residential treatment centers, outpatient clinics and
therapeutic school-based programs.
Acadia Healthcare Company, Inc. Consolidated
Statements of Operations (Unaudited)
Three Months Ended June 30, Six
Months Ended June 30, 2012 2011
2012 2011 (in thousands, except per share
amounts) Revenue before provision for doubtful accounts
$ 102,752 $ 63,828 $ 194,020 $ 81,412 Provision for doubtful
accounts (2,222 ) (253 ) (3,927 ) (991
) Revenue 100,530 63,575 190,093 80,421 Salaries, wages and
benefits (including equity-based compensation expense of $592,
$19,843, $1,170 and $19,843, respectively) 58,559 59,024 113,702
69,736 Professional fees 4,658 2,341 8,831 2,716 Supplies 4,872
3,314 9,317 4,247 Rents and leases 2,227 1,634 4,469 1,985 Other
operating expenses 10,407 5,959 19,388 7,845 Depreciation and
amortization 1,646 1,956 3,256 2,199 Interest expense, net 7,471
1,992 14,753 2,215 Sponsor management fees - 545 - 590
Transaction-related expenses 670 5,756
1,365 8,362 Total expenses
90,510 82,521 175,081
99,895 Income (loss) from continuing operations before
income taxes 10,020 (18,946 ) 15,012 (19,474 ) Provision for income
taxes 3,919 2,789 5,584
2,518 Income (loss) from continuing operations 6,101
(21,735 ) 9,428 (21,992 ) Income (loss) from discontinued
operations, net of income taxes (192 ) (122 )
160 (114 ) Net income (loss) $ 5,909 $ (21,857
) $ 9,588 $ (22,106 ) Basic earnings per share:
Income (loss) from continuing operations $ 0.17 $ (1.23 ) $ 0.27 $
(1.24 ) Income (loss) from discontinued operations $ (0.01 ) $
(0.01 ) $ 0.01 $ (0.01 ) Net income (loss) $ 0.16 $
(1.24 ) $ 0.28 $ (1.25 ) Diluted earnings per share:
Income (loss) from continuing operations $ 0.17 $ (1.23 ) $ 0.27 $
(1.24 ) Income (loss) from discontinued operations $ (0.01 ) $
(0.01 ) $ 0.01 $ (0.01 ) Net income (loss) $ 0.16 $
(1.24 ) $ 0.28 $ (1.25 ) Weighted-average shares
outstanding: Basic 36,507 17,633 34,313 17,633 Diluted 36,695
17,633 34,514 17,633
Acadia Healthcare Company, Inc.
Consolidated Balance Sheets (Unaudited)
June 30, 2012 December 31, 2011
(In thousands, except share and per share amounts)
ASSETS Current assets: Cash and cash equivalents $ 120,176 $
61,118
Accounts receivable, net of allowance for
doubtful accounts of $5,123 and $2,424, respectively
45,658 35,127 Deferred tax asset 5,416 6,239 Other current assets
12,882 10,121 Total current assets
184,132 112,605 Property and equipment, net 112,841 82,972 Goodwill
262,325 186,815 Intangible assets, net 9,186 8,232 Deferred tax
asset - long-term 1,975 6,006 Other assets 15,994
16,366 Total assets $ 586,453 $ 412,996
LIABILITIES AND EQUITY Current liabilities:
Current portion of long-term debt $ 10,000 $ 6,750 Accounts payable
7,870 8,642 Accrued salaries and benefits 18,051 16,195 Other
accrued liabilities 8,384 9,081 Total
current liabilities 44,305 40,668 Long-term debt 288,573 270,709
Other liabilities 7,231 5,254 Total
liabilities 340,109 316,631 Equity: Common stock, $0.01 par value;
90,000,000 shares authorized; 41,731,241 and 32,115,929 shares
issued and outstanding at June 30, 2012 and December 31, 2011,
respectively 417 321 Additional paid-in capital 280,919 140,624
Accumulated deficit (34,992 ) (44,580 ) Total equity
246,344 96,365 Total liabilities and
equity $ 586,453 $ 412,996
Acadia
Healthcare Company, Inc. Consolidated Statements of Cash
Flows (Unaudited) Six Months Ended June
30, 2012 2011 (In thousands)
Operating activities: Net income (loss) $ 9,588 $ (22,106 )
Adjustments to reconcile net income
(loss) to net cash provided by continuing operating
activities:
Depreciation and amortization 3,256 2,199 Provision for doubtful
accounts 3,927 991 Amortization of debt issuance costs 1,224 336
Equity-based compensation expense 1,170 19,843 Deferred income tax
expense 4,854 228 Other 21 (170 ) (Income) loss from discontinued
operations, net of taxes (160 ) 114 Change in operating assets and
liabilities, net of effect of acquisitions: Accounts receivable
(10,619 ) (985 ) Other current assets (2,214 ) (669 ) Other assets
313 - Accounts payable and other accrued liabilities (2,805 ) 3,616
Accrued salaries and benefits 327 1,164 Other liabilities
1,860 742 Net cash provided by continuing
operating activities 10,742 5,303 Net cash used in discontinued
operating activities (196 ) (1,725 ) Net cash
provided by operating activities 10,546 3,578
Investing
activities: Cash paid for acquisitions, net of cash acquired
(90,466 ) (178,014 ) Cash paid for capital expenditures (7,619 )
(3,212 ) Cash paid for real estate acquisitions (13,886 ) (2,150 )
Other 1,400 (538 ) Net cash used in investing
activities (110,571 ) (183,914 )
Financing
activities: Borrowings on long-term debt 25,000 135,000 Net
increase in revolving credit facility - 7,000 Principal payments on
long-term debt (4,000 ) (1,688 ) Repayment of long-term debt -
(9,984 ) Payment of debt issuance costs (1,138 ) (5,804 ) Issuance
of common stock 139,034 - Proceeds from stock option exercises 187
- Contribution from Holdings - 51,029 Distributions to equity
holders - (375 ) Net cash provided by
financing activities 159,083 175,178
Net increase (decrease) in cash and cash equivalents 59,058
(5,158 ) Cash and cash equivalents at beginning of the period
61,118 8,614 Cash and cash equivalents
at end of the period $ 120,176 $ 3,456
Effect of acquisitions: Assets acquired, excluding cash $
93,299 $ 213,073 Liabilities assumed (2,833 ) (35,059
) Cash paid for acquisitions, net of cash acquired $ 90,466
$ 178,014
Acadia Healthcare Company, Inc.
Operating Statistics (Unaudited) (Revenue in
thousands)
Three months ended June 30, Six months ended June 30,
2012 2011 % Change 2012 2011
% Change Same Facility Results Revenue $ 68,235 $ 63,575 7.3
% $ 87,400 $ 80,421 8.7 % Patient Days 127,688 116,945 9.2 %
156,703 142,159 10.2 % Admissions 3,333 2,849 17.0 % 5,478 4,713
16.2 % Average Length of Stay (a) 38.3 41.0 -6.7 % 28.6 30.2 -5.2 %
Revenue per Patient Day $ 534 $ 544 -1.7 % $ 558 $ 566 -1.4
% EBITDA margin 23.0 % 22.4 % 60 bps 23.4 % 22.8 % 60 bps
Total Facility Results Revenue $ 100,490 $ 63,575 58.1 % $ 190,053
$ 80,421 136.3 % Patient Days 170,492 116,945 45.8 % 323,137
142,159 127.3 % Admissions 7,453 2,849 161.6 % 14,171 4,713 200.7 %
Average Length of Stay (a) 22.9 41.0 -44.3 % 22.8 30.2 -24.4 %
Revenue per Patient Day $ 589 $ 544 8.4 % $ 588 $ 566 4.0 %
EBITDA margin 24.6 % 22.4 % 220 bps 23.0 % 22.8 % 20 bps
(a) Average length of stay is defined as patient days
divided by admissions.
Acadia Healthcare Company,
Inc. Reconciliation of Net Income (Loss) to Adjusted
EBITDA (Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011 (in
thousands) Net income (loss) $ 5,909 $ (21,857 ) $ 9,588
$ (22,106 ) Loss (income) from discontinued operations 192 122 (160
) 114 Provision for income taxes 3,919 2,789 5,584 2,518 Interest
expense, net 7,471 1,992 14,753 2,215 Depreciation and amortization
1,646 1,956 3,256 2,199
EBITDA 19,137 (14,998 ) 33,021 (15,060 ) Adjustments:
Equity-based compensation expense (a) 592 19,843 1,170 19,843
Transaction-related expenses (b) 670 5,756 1,365 8,362 Sponsor
management fees (c) - 545 -
590 Adjusted EBITDA $ 20,399 $ 11,146 $ 35,556
$ 13,735 See footnotes on page 9.
Acadia Healthcare Company, Inc. Reconciliation of
Adjusted Income (Loss) from Continuing Operations to Income (Loss)
from Continuing Operations (Unaudited)
Three Months Ended June 30, Six
Months Ended June 30, 2012 2011 2012
2011 (in thousands, except per share amounts)
Income (loss) from continuing operations $ 6,101 $ (21,735 ) $
9,428 $ (21,992 ) Provision for income taxes 3,919
2,789 5,584 2,518 Income
(loss) from continuing operations before income taxes 10,020
(18,946 ) 15,012 (19,474 ) Adjustments to income (loss) from
continuing operations: Transaction-related expenses (b) 670 5,756
1,365 8,362 Sponsor management fees (c) - 545 - 590 Income tax
provision reflecting tax effect of adjustments to income (loss)
from continuing operations (d) (4,169 ) (5,246 )
(6,387 ) (6,009 ) Adjusted income (loss) from
continuing operations $ 6,521 $ (17,891 ) $ 9,990 $ (16,531 )
Weighted-average shares outstanding - diluted 36,695 17,633
34,514 17,633 Adjusted income (loss) from continuing
operations per diluted share $ 0.18 $ (1.01 ) $ 0.29
$ (0.94 ) See footnotes on page 9.
Footnotes
We have included certain financial measures in this press
release, including EBITDA, Adjusted EBITDA and Adjusted income
(loss) from continuing operations, which are “non-GAAP financial
measures” as defined under the rules and regulations promulgated by
the SEC. We define EBITDA as net income (loss) adjusted for loss
(income) from discontinued operations, net interest expense, income
tax provision and depreciation and amortization. We define Adjusted
EBITDA as EBITDA adjusted for equity-based compensation expense,
transaction-related expenses, and sponsor management fees.
EBITDA, Adjusted EBITDA and Adjusted income (loss) from
continuing operations 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”).
EBITDA, Adjusted EBITDA and Adjusted income (loss) from continuing
operations 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 EBITDA, Adjusted EBITDA and
Adjusted income (loss) from continuing operations may not be
comparable to similarly titled measures of other companies. We have
included information concerning EBITDA, Adjusted EBITDA and
Adjusted income (loss) from continuing operations 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 EBITDA, Adjusted EBITDA
and Adjusted income (loss) from continuing operations when
reporting their results. Our presentation of EBITDA, Adjusted
EBITDA and Adjusted income (loss) from continuing operations 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
related primarily to the acquisitions of Youth and Family Centered
Services, Inc. (“YFCS”) in April 2011, PHC, Inc. (“PHC”) in
November 2011 and three facilities from Haven Behavioral Healthcare
Holdings, LLC (the "Haven Facilities") in March 2012.
(c) Represents the management fees paid by Acadia to its equity
sponsor prior to the termination of the professional services
agreement between Acadia and its equity sponsor on November 1,
2011.
(d) Represents the income tax provision adjusted to reflect the
aggregate tax effect of the adjustments to income (loss) from
continuing operations described above based on expected combined
federal and state tax rates.
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