Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced
financial results for the third quarter ended September 30, 2012.
Revenue for the third quarter was $103.1 million compared with
$60.7 million for the third quarter of 2011. Income from continuing
operations was $6.6 million for the third quarter of 2012, compared
with $3.6 million for the third quarter of 2011. Income per diluted
share from continuing operations of $0.16 for the third quarter of
2012, compared with $0.20 for the third quarter last year,
reflected a 138.1% increase in weighted average shares outstanding,
primarily due to Acadia’s public equity offerings in December 2011
and May 2012 and the completion of the PHC, Inc. acquisition in
November 2011. Adjusted income from continuing operations was $7.1
million, or $0.17 per diluted share, excluding transaction-related
expenses totaling $0.7 million, for the third quarter of 2012
compared with $5.8 million, or $0.33 per diluted share, excluding
sponsor management fees and transaction-related expenses totaling
$2.8 million, for the third quarter of 2011. A reconciliation of
all GAAP and non-GAAP financial results in this release is on pages
8 and 9.
Revenue for the first nine months of 2012 was $293.2 million
compared with $141.1 million for the first nine months of 2011.
Income from continuing operations was $16.0 million, or $0.43 per
diluted share, for the first nine months of 2012, compared with a
loss from continuing operations of $18.4 million, or $1.05 per
diluted share, for the same period in 2011. Adjusted income from
continuing operations was $17.3 million, or $0.47 per diluted
share, excluding transaction-related expenses totaling $2.1
million, for the first nine months of 2012 compared with a loss of
$4.0 million, or $0.23 per diluted share, excluding sponsor
management fees and transaction-related expenses totaling $11.7
million, for the first nine months of 2011.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia,
commented, “For the third quarter, Acadia continued to produce
substantial revenue growth compared with the same prior year
quarter, due to the addition of new facilities and increased same
facility revenue. With the acquisition during the third quarter of
the Timberline Knolls facility located near Chicago, we had 33
facilities in operation with over 2,400 licensed beds in 19 states
at September 30, 2012 compared with 19 facilities with
approximately 1,700 licensed beds in 13 states at the same time in
2011. In addition, we produced an 8.3% increase in same facility
revenue for the third quarter of 2012, primarily reflecting 8.7%
growth in patient days.
“The operating leverage generated by this increase in same
facility revenue, as well as our disciplined focus on improved
operating productivity and efficiency, drove a 230 basis point
increase in the same facility EBITDA margin, to 21.4% of same
facility revenue from 19.1% for the third quarter of 2011. Adjusted
consolidated EBITDA increased to $21.1 million, or 20.4% of
consolidated revenue for the third quarter of 2012, up from $10.1
million, or 16.6% of consolidated revenue, for the third quarter of
2011.
“Acadia produced net cash flow from continuing operations of
$12.9 million for the third quarter and $23.7 million for the first
nine months of 2012. We expect our continuing cash flow, combined
with both our cash and cash equivalents of $11.7 million and our
availability under our revolving credit facility of approximately
$75 million at the end of the third quarter of 2012, to support the
ongoing implementation of our organic growth and acquisition
strategies. The Company’s ratio of total debt to trailing 12 months
adjusted EBITDA at September 30, 2012 was 3.4.”
Acadia today increased its guidance for 2012 adjusted earnings
per diluted share to a range of $0.65 to $0.66, which includes the
previously discussed accretive impact from the Timberline Knolls
acquisition of $0.04 to $0.05 per diluted share, from the previous
range of $0.59 to $0.60, which did not include the impact from
Timberline Knolls. 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,
November 7, 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 November 21, 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 healthcare
services. Acadia operates a network of 33 behavioral health
facilities with over 2,400 licensed beds in 19 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 EndedSeptember
30,
Nine Months EndedSeptember
30,
2012 2011 2012
2011 (in thousands, except per share amounts)
Revenue before provision for doubtful accounts $ 104,618 $ 61,385 $
298,638 $ 142,797 Provision for doubtful accounts (1,502 )
(663 ) (5,429 ) (1,654 ) Revenue 103,116
60,722 293,209 141,143 Salaries, wages and benefits
(including equity-based compensation expense of $521, $0, $1,691
and $19,843, respectively) 59,888 38,422 173,590 108,158
Professional fees 4,690 2,302 13,521 5,018 Supplies 4,831 3,398
14,148 7,645 Rents and leases 1,775 1,591 6,244 3,576 Other
operating expenses 11,380 4,915 30,768 12,760 Depreciation and
amortization 2,076 909 5,332 3,108 Interest expense, net 7,433
1,928 22,186 4,143 Sponsor management fees - 545 - 1,135
Transaction-related expenses 732 2,233
2,097 10,595 Total expenses
92,805 56,243 267,886
156,138 Income (loss) from continuing operations before
income taxes 10,311 4,479 25,323 (14,995 ) Provision for income
taxes 3,723 908 9,307
3,426 Income (loss) from continuing operations 6,588
3,571 16,016 (18,421 ) (Loss) income from discontinued operations,
net of income taxes (138 ) (448 ) 22
(562 ) Net income (loss) $ 6,450 $ 3,123 $
16,038 $ (18,983 ) Basic earnings per share: Income
(loss) from continuing operations $ 0.16 $ 0.20 $ 0.44 $ (1.05 )
(Loss) income from discontinued operations $ (0.01 ) $ (0.02 ) $ -
$ (0.03 ) Net income (loss) $ 0.15 $ 0.18 $
0.44 $ (1.08 ) Diluted earnings per share: Income
(loss) from continuing operations $ 0.16 $ 0.20 $ 0.43 $ (1.05 )
(Loss) income from discontinued operations $ (0.01 ) $ (0.02 ) $ -
$ (0.03 ) Net income (loss) $ 0.15 $ 0.18 $
0.43 $ (1.08 ) Weighted-average shares outstanding:
Basic 41,757 17,633 36,795 17,633 Diluted 41,991 17,633 37,006
17,633
Acadia Healthcare Company, Inc.
Consolidated Balance Sheets (Unaudited)
September 30,2012
December 31,2011
(In thousands, except share and per share amounts)
ASSETS Current assets: Cash and cash equivalents $ 11,719 $
61,118
Accounts receivable, net of allowance for
doubtful accounts of $6,581 and $2,424, respectively
54,777 35,127 Deferred tax asset 5,230 6,239 Other current assets
15,305 10,121 Total current assets
87,031 112,605 Property and equipment, net 155,188 82,972 Goodwill
334,622 186,815 Intangible assets, net 12,534 8,232 Deferred tax
asset - noncurrent - 6,006 Other assets 14,383
16,366 Total assets $ 603,758 $ 412,996
LIABILITIES AND EQUITY Current liabilities: Current
portion of long-term debt $ 12,000 $ 6,750 Accounts payable 13,323
8,642 Accrued salaries and benefits 19,125 16,195 Other accrued
liabilities 13,374 9,081 Total current
liabilities 57,822 40,668 Long-term debt 284,632 270,709 Deferred
tax liability - noncurrent 1,167 - Other liabilities 6,574
5,254 Total liabilities 350,195 316,631
Equity: Common stock, $0.01 par value; 90,000,000 shares
authorized; 41,773,053 and 32,115,929 shares issued and outstanding
at September 30, 2012 and December 31, 2011, respectively 418 321
Additional paid-in capital 281,687 140,624 Accumulated deficit
(28,542 ) (44,580 ) Total equity 253,563
96,365 Total liabilities and equity $ 603,758
$ 412,996
Acadia Healthcare Company,
Inc. Consolidated Statements of Cash Flows
(Unaudited) Nine Months Ended
September 30, 2012 2011 (In thousands)
Operating activities: Net income (loss) $ 16,038 $
(18,983 )
Adjustments to reconcile net income
(loss) to net cash provided by continuing operating
activities:
Depreciation and amortization 5,332 3,108 Provision for doubtful
accounts 5,429 1,654 Amortization of debt issuance costs 1,869 684
Equity-based compensation expense 1,691 19,843 Deferred income tax
expense (benefit) 8,138 (109 ) Other (9 ) (170 ) (Income) loss from
discontinued operations, net of taxes (22 ) 562 Change in operating
assets and liabilities, net of effect of acquisitions: Accounts
receivable (19,026 ) (4,078 ) Other current assets (3,677 ) (618 )
Other assets 1,029 - Accounts payable and other accrued liabilities
4,817 6,208 Accrued salaries and benefits 527 107 Other liabilities
1,527 217 Net cash provided by
continuing operating activities 23,663 8,425 Net cash used in
discontinued operating activities (328 ) (856 ) Net
cash provided by operating activities 23,335 7,569
Investing activities: Cash paid for acquisitions, net of
cash acquired (165,981 ) (178,014 ) Cash paid for capital
expenditures (14,511 ) (6,777 ) Cash paid for real estate
acquisitions (50,745 ) (2,150 ) Other 1,231
(646 ) Net cash used in continuing investing activities (230,006 )
(187,587 ) Net cash used in discontinued investing activities
- (230 ) Net cash used in investing activities
(230,006 ) (187,817 )
Financing activities:
Borrowings on long-term debt 25,000 135,000 Net increase in
revolving credit facility - 6,500 Principal payments on long-term
debt (6,000 ) (3,375 ) Repayment of long-term debt - (9,984 )
Payment of debt issuance costs (1,197 ) (5,907 ) Issuance of common
stock 138,954 - Proceeds from stock option exercises 515 -
Contribution from Holdings - 51,029 Distributions to equity holders
- (375 ) Net cash provided by financing
activities 157,272 172,888 Net
decrease in cash and cash equivalents (49,399 ) (7,360 ) Cash and
cash equivalents at beginning of the period 61,118
8,614 Cash and cash equivalents at end of the period
$ 11,719 $ 1,254
Effect of
acquisitions: Assets acquired, excluding cash $ 172,267 $
213,073 Liabilities assumed (6,286 ) (35,059 ) Cash
paid for acquisitions, net of cash acquired $ 165,981 $
178,014
Acadia Healthcare
Company, Inc. Operating Statistics (Unaudited)
(Revenue in thousands) Three months ended
September 30, Nine months ended September 30,
2012 2011 % Change 2012 2011
% Change Same Facility Results Revenue $ 65,773 $ 60,722 8.3
% $ 153,173 $ 141,142 8.5 % Patient Days 127,825 117,567 8.7 %
284,528 259,726 9.5 % Admissions 3,542 2,953 19.9 % 9,020 7,666
17.7 % Average Length of Stay (a) 36.1 39.8 -9.4 % 31.5 33.9 -6.9 %
Revenue per Patient Day $ 515 $ 516 -0.4 % $ 538 $ 543 -0.9
% EBITDA margin 21.4 % 19.1 % 230 bps 22.5 % 21.2 % 130 bps
Total Facility Results Revenue $ 102,816 $ 60,722 69.3 % $ 292,869
$ 141,142 107.5 % Patient Days 176,478 117,567 50.1 % 499,615
259,726 92.4 % Admissions 7,737 2,953 162.0 % 21,908 7,666 185.8 %
Average Length of Stay (a) 22.8 39.8 -42.7 % 22.8 33.9 -32.7 %
Revenue per Patient Day $ 583 $ 516 12.8 % $ 586 $ 543 7.9 %
EBITDA margin 25.5 % 19.1 % 640 bps 23.9 % 21.2 % 270 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 September 30,
Nine Months Ended September 30, 2012 2011
2012 2011 (in thousands) Net income
(loss) $ 6,450 $ 3,123 $ 16,038 $ (18,983 ) Loss (income) from
discontinued operations 138 448 (22 ) 562 Provision for income
taxes 3,723 908 9,307 3,426 Interest expense, net 7,433 1,928
22,186 4,143 Depreciation and amortization 2,076 909
5,332 3,108 EBITDA 19,820 7,316 52,841
(7,744 ) Adjustments: Equity-based compensation expense (a)
521 - 1,691 19,843 Transaction-related expenses (b) 732 2,233 2,097
10,595 Sponsor management fees (c) - 545 -
1,135 Adjusted EBITDA $ 21,073 $ 10,094 $
56,629 $ 23,829 See footnotes on page 10.
Acadia Healthcare Company, Inc. Reconciliation of
Adjusted Income (Loss) from Continuing Operations to Income (Loss)
from Continuing Operations (Unaudited)
Three Months Ended September 30, Nine Months Ended
September 30, 2012 2011 2012 2011
(in thousands, except per share amounts) Income
(loss) from continuing operations $ 6,588 $ 3,571 $ 16,016 $
(18,421 ) Provision for income taxes 3,723 908
9,307 3,426 Income (loss) from
continuing operations before income taxes 10,311 4,479 25,323
(14,995 ) Adjustments to income (loss) from continuing
operations: Transaction-related expenses (b) 732 2,233 2,097 10,595
Sponsor management fees (c) - 545 - 1,135 Income tax provision
reflecting tax effect of adjustments to income (loss) from
continuing operations (d) (3,987 ) (1,473 )
(10,091 ) (744 ) Adjusted income (loss) from continuing
operations $ 7,056 $ 5,784 $ 17,329 $ (4,009 )
Weighted-average shares outstanding - diluted 41,991 17,633 37,006
17,633 Adjusted income (loss) from continuing operations per
diluted share $ 0.17 $ 0.33 $ 0.47 $ (0.23 )
See footnotes on page 10.
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, three facilities from Haven
Behavioral Healthcare Holdings, LLC (the “Haven Facilities”) in
March 2012 and Timberline Knolls, LLC (“Timberline Knolls”) in
August 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
effective tax rates.
Acadia Healthcare (NASDAQ:ACHC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Acadia Healthcare (NASDAQ:ACHC)
Historical Stock Chart
From Jul 2023 to Jul 2024