Establishes Financial Guidance for
2017
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced
financial results for the fourth quarter and year ended December
31, 2016. Revenue for the quarter increased 41.9% to $702.9 million
from $495.3 million for the fourth quarter of 2015. Net income from
continuing operations attributable to Acadia stockholders was $41.8
million, up 21.1% from $34.5 million for the fourth quarter of
2015. With a 22.1% increase in weighted average diluted shares
outstanding, primarily due to the issuance of common stock in
January and February 2016, related to the acquisition of Priory
Group, net income from continuing operations attributable to Acadia
stockholders per diluted share decreased 2.0% to $0.48 for the
fourth quarter of 2016 from $0.49 for the fourth quarter of 2015.
Adjusted income from continuing operations attributable to Acadia
stockholders per diluted share was $0.59 for the fourth quarter of
2016 and 2015, on a 22.1% increase in weighted average diluted
shares outstanding. A reconciliation of all non-GAAP financial
results in this release appears beginning on page 8.
For the year ended December 31, 2016, revenue increased 56.6% to
$2.8 billion from $1.8 billion for the year ended December 31,
2015. Net income from continuing operations attributable to Acadia
stockholders was $6.1 million, or $0.07 per diluted share, for 2016
compared with $112.4 million, or $1.64 per diluted share, for 2015.
Adjusted income from continuing operations attributable to Acadia
stockholders per diluted share was $2.45 for 2016 compared with
$2.23 for 2015, on a 25.7% increase in weighted average diluted
shares outstanding.
“Acadia performed well during the fourth quarter and throughout
2016,” remarked Joey Jacobs, Chairman and Chief Executive Officer
of Acadia. “We produced very strong growth in revenue and adjusted
EBITDA, despite the headwinds represented by the decline in the
exchange rate of the British Pound Sterling during the year, the
unexpected delay in being able to integrate our February 2016
Priory acquisition and the disruption related to fulfilling our
undertakings with the Competition and Markets Authority in the U.K.
through the sale of 22 behavioral health facilities on November 30,
2016.
“As we indicate in our constant currency analysis on page 10 of
this release, the decline in the exchange rate, alone, had a
negative impact of $0.10 per diluted share on earnings for the
fourth quarter of 2016 and $0.26 per diluted share for the year. We
are working to complete the integration of Priory with our existing
Partnerships in Care operations and expect to realize the
anticipated cost synergies by the end of 2017.
“The Priory acquisition drove the majority of our revenue growth
for 2016, as we gained nearly 6,200 net additional beds in the U.K.
due to the combined effect of the acquisition and the subsequent
facility sale. These beds represented a majority of the 71.7%, or
over 7,100 bed, increase in total beds at the end of 2016 from the
end of 2015. This increase includes 967 new beds added to existing
or de novo facilities during the year, consisting of 827 beds to
existing facilities and 140 beds to de novo facilities. During the
fourth quarter, 279 new beds were added to existing facilities, and
we expect to add more than 800 new beds during 2017, primarily to
existing facilities.”
Acadia’s revenue for the fourth quarter also benefitted from a
consolidated 6.3% increase in same facility revenue compared with
the fourth quarter of 2015. Same facility revenue in the U.S. grew
6.6%, on a 6.5% increase in patient days and a 0.1% increase in
revenue per patient day. Same facility revenue in the U.K. grew
4.2%, on a 4.7% increase in patient days offset by a 0.5% decrease
in revenue per patient day. Management believes that same facility
results in the U.K. reflected disruption throughout the fourth
quarter resulting from the focus, time and effort required to
complete the divestiture in late November and to begin the
integration of Priory’s operations into Acadia.
Acadia had $57.1 million in cash and cash equivalents at the end
of 2016. Net cash provided by continuing operations increased 8.1%
to $106.6 million for the fourth quarter and 53.5% to $371.7
million for 2016, compared with the same prior-year periods. At
year-end, the Company had full availability under its $500 million
revolving credit facility.
Acadia today established its financial guidance for 2017 and the
first quarter of 2017, as follows:
- Revenue for 2017 in a range of $2.85
billion to $2.9 billion;
- Adjusted EBITDA for 2017 in a range of
$625 million to $640 million;
- Adjusted earnings per diluted share for
2017 in a range $2.40 to $2.50; and
- Adjusted earnings per diluted share for
the first quarter of 2017 in a range of $0.45 to $0.47.
The Company’s 2017 financial guidance assumes an exchange rate
of $1.25 per British Pound Sterling and a tax rate of approximately
25%. The Company’s guidance does not include the impact of any
future acquisitions or transaction-related expenses. EBITDA is
defined as net income adjusted for income from discontinued
operations, net loss attributable to noncontrolling interests,
income tax provision, net interest expense and depreciation and
amortization. Adjusted EBITDA is defined as EBITDA adjusted for
equity-based compensation expense, debt extinguishment costs, loss
on divestiture, (gain) loss on foreign currency derivatives and
transaction-related expenses. Adjusted income from continuing
operations is defined as net income adjusted for income from
discontinued operations, provision for income taxes, debt
extinguishment costs, loss on divestiture, (gain) loss on foreign
currency derivatives, transaction-related expenses and income tax
provision reflecting tax effect of adjustments attributable to
Acadia.
Acadia will hold a conference call to discuss its fourth quarter
financial results at 9:00 a.m. Eastern Time on Friday,
February 24, 2017. 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 10, 2017.
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) potential difficulties operating our business in light of
political and economic instability in the U.K. and globally
following the referendum in the U.K. on June 23, 2016, in which
voters approved an exit from the European Union, or Brexit; (ii)
the impact of fluctuations in foreign exchange rates, including the
recent devaluation of the British Pound Sterling (GBP) relative to
the U.S. Dollar (USD) following the Brexit vote; (iii) Acadia’s
ability to complete acquisitions and successfully integrate the
operations of acquired facilities, including Priory facilities;
(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
and governmental investigations, which could adversely affect the
price of our common stock and result in 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, 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. At December 31, 2016, Acadia operated a network of 573
behavioral healthcare facilities with approximately 17,100 beds in
39 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,
residential treatment centers, outpatient clinics and therapeutic
school-based programs.
Acadia Healthcare Company, Inc. Condensed
Consolidated Statements of Operations (Unaudited)
Three Months Ended December 31, Year
Ended December 31, 2016 2015 2016
2015 (In thousands, except per share amounts)
Revenue before provision for doubtful accounts $ 713,784 $ 504,917
$ 2,852,823 $ 1,829,619 Provision for doubtful accounts
(10,896 ) (9,598 ) (41,909 ) (35,127 ) Revenue
702,888 495,319 2,810,914 1,794,492
Salaries, wages and benefits (including
equity-based compensation expense of $7,356, $5,896, $28,345 and
$20,472, respectively)
384,297 266,149 1,541,854 973,732 Professional fees 47,516 33,248
185,486 116,463 Supplies 28,976 22,233 117,425 80,663 Rents and
leases 18,335 9,889 73,348 32,528 Other operating expenses 81,606
57,847 312,556 206,746 Depreciation and amortization 33,958 18,630
135,103 63,550 Interest expense, net 46,010 28,810 181,325 106,742
Debt extinguishment costs 842 839 4,253 10,818 Loss on divestiture
4,070 - 178,809 - (Gain) loss on foreign currency derivatives - -
(523 ) 1,926 Transaction-related expenses 14,840
5,156 48,323 36,571 Total
expenses 660,450 442,801
2,777,959 1,629,739 Income from continuing
operations before income taxes 42,438 52,518 32,955 164,753
Provision for income taxes 1,012 18,594
28,779 53,388 Income from continuing
operations 41,426 33,924 4,176 111,365 Income from discontinued
operations, net of income taxes - 28
- 111 Net income 41,426 33,952 4,176
111,476 Net loss attributable to noncontrolling interests
392 614 1,967 1,078
Net income attributable to Acadia Healthcare Company, Inc. $
41,818 $ 34,566 $ 6,143 $ 112,554
Basic earnings attributable to Acadia
Healthcare Company, Inc. stockholders:
Income from continuing operations $ 0.48 $ 0.49 $ 0.07 $ 1.65
Income from discontinued operations - -
- - Net income $ 0.48 $ 0.49
$ 0.07 $ 1.65
Diluted earnings attributable to Acadia
Healthcare Company, Inc. stockholders:
Income from continuing operations $ 0.48 $ 0.49 $ 0.07 $ 1.64
Income from discontinued operations - -
- - Net income $ 0.48 $ 0.49
$ 0.07 $ 1.64 Weighted-average shares
outstanding: Basic 86,668 70,731 85,701 68,085 Diluted 86,890
71,145 85,972 68,391
Acadia Healthcare Company,
Inc. Condensed Consolidated Balance Sheets
(Unaudited) December 31, 2016
2015 (In thousands) ASSETS Current
assets: Cash and cash equivalents $ 57,063 $ 11,215
Accounts receivable, net of allowance for
doubtful accounts of $38,916 and $29,332, respectively
263,327 216,626 Other current assets 107,537
66,895 Total current assets 427,927 294,736 Property and
equipment, net 2,703,695 1,709,053 Goodwill 2,681,188 2,128,215
Intangible assets, net 83,310 59,575 Deferred tax assets -
noncurrent 3,780 49,114 Derivative instruments 73,509 - Other
assets 51,317 38,515 Total assets $
6,024,726 $ 4,279,208
LIABILITIES
AND EQUITY Current liabilities: Current portion of long-term
debt $ 34,805 $ 45,360 Accounts payable 80,034 91,341 Accrued
salaries and benefits 105,068 80,696 Other accrued liabilities
122,958 72,806 Total current
liabilities 342,865 290,203 Long-term debt 3,253,004 2,195,384
Deferred tax liabilities - noncurrent 78,520 23,936 Other
liabilities 164,859 78,602 Total
liabilities 3,839,248 2,588,125 Redeemable noncontrolling interests
17,754 8,055 Equity: Common stock 867 707 Additional paid-in
capital 2,496,288 1,572,972 Accumulated other comprehensive loss
(549,570 ) (104,647 ) Retained earnings 220,139
213,996 Total equity 2,167,724
1,683,028 Total liabilities and equity $ 6,024,726 $
4,279,208
Acadia Healthcare Company,
Inc. Condensed Consolidated Statements of Cash Flows
(Unaudited) Year Ended December 31,
2016 2015 (In thousands) Operating
activities: Net income $ 4,176 $ 111,476
Adjustments to
reconcile net income to net cash provided by continuing operating
activities: Depreciation and amortization 135,103 63,550
Amortization of debt issuance costs 10,324 6,709 Equity-based
compensation expense 28,345 20,472 Deferred income tax expense
28,647 43,613 Income from discontinued operations, net of taxes -
(111 ) Debt extinguishment costs 4,253 10,818 Loss on divestiture
178,809 - (Gain) loss on foreign currency derivatives (523 ) 1,926
Other 4,715 1,615 Change in operating assets and liabilities, net
of effect of acquisitions: Accounts receivable, net (15,718 )
(24,954 ) Other current assets (20,648 ) (2,717 ) Other assets
(4,354 ) (8,021 ) Accounts payable and other accrued liabilities
22,693 6,868 Accrued salaries and benefits (8,572 ) 1,658 Other
liabilities 4,484 9,236 Net cash
provided by continuing operating activities 371,734 242,138 Net
cash used in discontinued operating activities (10,256 )
(1,735 ) Net cash provided by operating activities 361,478
240,403
Investing activities: Cash paid for
acquisitions, net of cash acquired (683,455 ) (574,777 ) Cash paid
for capital expenditures (307,472 ) (276,047 ) Cash paid for real
estate acquisitions (40,757 ) (26,622 ) Settlement of foreign
currency derivatives 523 (1,926 ) Cash received on divestitures
373,266 - Other (2,470 ) (5,099 ) Net cash used in
investing activities (660,365 ) (884,471 )
Financing
activities: Borrowings on long-term debt 1,480,000 1,150,000
Borrowings on revolving credit facility 179,000 468,000 Principal
payments on revolving credit facility (337,000 ) (310,000 )
Principal payments on long-term debt (49,941 ) (31,965 ) Repayment
of assumed debt (1,348,389 ) (904,467 ) Repayment of long-term debt
(200,594 ) (97,500 ) Payment of debt issuance costs (36,649 )
(26,421 ) Payment of premium on senior notes - (7,480 ) Issuance of
common stock, net 685,097 331,308 Common stock withheld for minimum
statutory taxes, net (8,846 ) (7,762 ) Excess tax benefit from
equity awards - 309 Other (3,837 ) (420 ) Net cash
provided by financing activities 358,841
563,602 Effect of exchange rate changes on cash
(14,106 ) (2,359 ) Net increase (decrease) in
cash and cash equivalents 45,848 (82,825 ) Cash and cash
equivalents at beginning of the period 11,215
94,040 Cash and cash equivalents at end of the period $
57,063 $ 11,215
Effect of acquisitions:
Assets acquired, excluding cash $ 2,516,880 $ 1,988,634 Liabilities
assumed (1,616,543 ) (1,024,515 ) Issuance of common stock in
connection with acquisition (216,882 ) (380,210 ) Redeemable
noncontrolling interest resulting from acquisitions -
(9,132 ) Cash paid for acquisitions, net of cash acquired $
683,455 $ 574,777
Acadia Healthcare
Company, Inc. Operating Statistics (Unaudited,
Revenue in thousands)
Three Months Ended December 31, Year Ended
December 31, 2016 2015 % Change
2016 2015 % Change Same Facility Results (a,c)
Revenue $ 475,726 $ 447,663 6.3% $ 1,784,538 $ 1,661,148 7.4%
Patient Days 709,183 668,144 6.1% 2,637,646 2,460,988 7.2%
Admissions 33,459 30,903 8.3% 129,318 118,669 9.0% Average Length
of Stay (b) 21.2 21.6 -2.0% 20.4 20.7 -1.6% Revenue per Patient Day
$ 671 $ 670 0.1% $ 677 $ 675 0.2% EBITDA margin 26.3% 26.0% 30 bps
27.1% 26.7% 40 bps U.S. Same Facility Results (a) Revenue $
402,761 $ 377,667 6.6% $ 1,506,775 $ 1,398,340 7.8% Patient Days
568,024 533,373 6.5% 2,149,810 2,009,954 7.0% Admissions 33,147
30,608 8.3% 128,192 117,502 9.1% Average Length of Stay (b) 17.1
17.4 -1.7% 16.8 17.1 -2.0% Revenue per Patient Day $ 709 $ 708 0.1%
$ 701 $ 696 0.7% EBITDA margin 27.1% 26.3% 80 bps 27.7% 27.3% 40
bps U.K. Same Facility Results (c) Revenue $ 72,965 $ 69,996
4.2% $ 277,763 $ 262,808 5.7% Patient Days 141,159 134,771 4.7%
487,836 451,034 8.2% Admissions 312 295 5.8% 1,126 1,167 -3.5%
Average Length of Stay (b) 452.4 456.8 -1.0% 433.2 386.5 12.1%
Revenue per Patient Day $ 517 $ 519 -0.5% $ 569 $ 583 -2.3% EBITDA
margin 22.3% 24.4% -210 bps 23.6% 23.1% 50 bps
U.S. Facility Results Revenue $ 428,531 $ 388,955 10.2% $ 1,698,525
$ 1,426,205 19.1% Patient Days 593,653 541,157 9.7% 2,350,367
2,025,338 16.0% Admissions 35,420 31,382 12.9% 143,139 119,048
20.2% Average Length of Stay (b) 16.8 17.2 -2.8% 16.4 17.0 -3.5%
Revenue per Patient Day $ 722 $ 719 0.4% $ 723 $ 704 2.6% EBITDA
margin 25.5% 25.0% 50 bps 26.1% 26.5% -40 bps U.K. Facility
Results (c) Revenue $ 274,357 $ 85,709 220.1% $ 1,110,361 $ 317,406
249.8% Patient Days 740,571 160,039 362.7% 2,716,996 537,257 405.7%
Admissions 2,583 341 657.5% 9,978 1,387 619.4% Average Length of
Stay (b) 286.7 469.3 -38.9% 272.3 387.4 -29.7% Revenue per Patient
Day $ 370 $ 536 -30.8% $ 409 $ 591 -30.8% EBITDA margin 21.6% 26.7%
-510 bps 22.1% 25.0% -290 bps Total Facility Results (c)
Revenue $ 702,888 $ 474,664 48.1% $ 2,808,886 $ 1,743,611 61.1%
Patient Days 1,334,224 701,196 90.3% 5,067,363 2,562,595 97.7%
Admissions 38,003 31,723 19.8% 153,117 120,435 27.1% Average Length
of Stay (b) 35.1 22.1 58.8% 33.1 21.3 55.5% Revenue per Patient Day
$ 527 $ 677 -22.2% $ 554 $ 680 -18.5% EBITDA margin 24.0% 25.3%
-130 bps 24.5% 26.2% -170 bps (a) Same-facility results for
the periods presented exclude the U.K. divestiture and other closed
services. (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, 2015 are adjusted to
reflect the foreign currency exchange rate for the comparable
period of 2016 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, 2015 is 1.24 and 1.36, respectively.
Acadia Healthcare Company, Inc. Reconciliation of Net
Income Attributable to Acadia Healthcare Company, Inc. to Adjusted
EBITDA (Unaudited) Three
Months Ended December 31, Year Ended December 31,
2016 2015 2016 2015 (in
thousands) Net income attributable to Acadia Healthcare
Company, Inc. $ 41,818 $ 34,566 $ 6,143 $ 112,554 Income from
discontinued operations, net of income taxes - (28 ) - (111 ) Net
loss attributable to noncontrolling interests (392 ) (614 ) (1,967
) (1,078 ) Provision for income taxes 1,012 18,594 28,779 53,388
Interest expense, net 46,010 28,810 181,325 106,742 Depreciation
and amortization 33,958 18,630
135,103 63,550 EBITDA 122,406 99,958 349,383
335,045 Adjustments: Equity-based compensation expense (a)
7,356 5,896 28,345 20,472 Debt extinguishment costs (b) 842 839
4,253 10,818 Loss on divestiture (c) 4,070 - 178,809 - (Gain) loss
on foreign currency derivatives (d) - - (523 ) 1,926
Transaction-related expenses (e) 14,840 5,156
48,323 36,571 Adjusted EBITDA $
149,514 $ 111,849 $ 608,590 $ 404,832
See footnotes on page 11.
Acadia Healthcare
Company, Inc. Reconciliation of Adjusted Income from
Continuing Operations Attributable to Acadia Healthcare Company,
Inc. to Net Income Attributable to Acadia Healthcare
Company, Inc. (Unaudited) Three
Months Ended December 31, Year Ended December 31,
2016 2015 2016 2015 (in thousands,
except per share amounts) Net income attributable to
Acadia Healthcare Company, Inc. $ 41,818 $ 34,566 $ 6,143 $ 112,554
Income from discontinued operations, net of income taxes - (28 ) -
(111 ) Provision for income taxes 1,012 18,594
28,779 53,388
Income from continuing operations
attributable to Acadia Healthcare Company, Inc. before income
taxes
42,830 53,132 34,922 165,831 Adjustments to income from
continuing operations: Debt extinguishment costs (b) 842 839 4,253
10,818 Loss on divestiture (c) 4,070 - 178,809 - (Gain) loss on
foreign currency derivatives (d) - - (523 ) 1,926
Transaction-related expenses (e) 14,840 5,156 48,323 36,571
Income tax provision reflecting tax effect
of adjustments to income from continuing operations (f)
(11,241 ) (16,834 ) (55,539 ) (62,392 )
Adjusted income from continuing operations
attributable to Acadia Healthcare Company, Inc.
$ 51,341 $ 42,293 $ 210,245 $ 152,754 Weighted-average
shares outstanding - diluted 86,890 71,145 85,972 68,391
Adjusted income from continuing operations
attributable to Acadia Healthcare Company, Inc. per diluted
share
$ 0.59 $ 0.59 $ 2.45 $ 2.23 See
footnotes on page 11.
Acadia Healthcare Company,
Inc. Constant Currency Condensed Consolidated Statements of
Operations (g) (Unaudited)
Three Months Ended December 31, Year Ended December
31, 2016 2015 2016 2015 (In
thousands, except per share amounts) Revenue before
provision for doubtful accounts $ 774,584 $ 504,917 $ 3,002,366 $
1,829,619 Provision for doubtful accounts (10,896 )
(9,598 ) (41,917 ) (35,127 ) Revenue 763,688 495,319
2,960,449 1,794,492
Salaries, wages and benefits (including
equity-based compensation expense of $7,356, $5,896, $28,345 and
$20,472, respectively)
417,375 266,149 1,623,629 973,732 Professional fees 52,644 33,248
197,452 116,463 Supplies 31,019 22,233 122,438 80,663 Rents and
leases 20,404 9,889 78,462 32,528 Other operating expenses 86,927
57,847 325,240 206,746 Depreciation and amortization 37,685 18,630
144,771 63,550 Interest expense, net 46,119 28,810 181,485 106,742
Debt extinguishment costs 842 839 4,253 10,818 Loss on divestiture
4,706 - 208,670 - (Gain) loss on foreign currency derivatives - -
(523 ) 1,926 Transaction-related expenses 16,496
5,156 50,751 36,571 Total
expenses 714,217 442,801
2,936,628 1,629,739 Income from continuing
operations before income taxes 49,471 52,518 23,821 164,753
Provision for income taxes (1,493 ) 18,594
24,864 53,388 Income from continuing
operations 50,964 33,924 (1,043 ) 111,365 Income from discontinued
operations, net of income taxes - 28
- 111 Net income 50,964 33,952 (1,043 )
111,476 Net loss attributable to noncontrolling interests
392 614 1,967 1,078
Net income attributable to Acadia Healthcare Company, Inc. $
51,356 $ 34,566 $ 924 $ 112,554
Constant Currency Reconciliation of Adjusted Income from
Continuing Operations Attributable to Acadia Healthcare Company,
Inc. to Net Income Attributable to Acadia Healthcare
Company, Inc. (g) (Unaudited) Net income
attributable to Acadia Healthcare Company, Inc. $ 51,356 $ 34,566 $
924 $ 112,554 Income from discontinued operations, net of income
taxes - (28 ) - (111 ) Provision for income taxes (1,493 )
18,594 24,864 53,388
Income from continuing operations
attributable to Acadia Healthcare Company, Inc. before income
taxes
$ 49,863 $ 53,132 $ 25,788 $ 165,831 Adjustments to income
from continuing operations: Debt extinguishment costs (b) 842 839
4,253 10,818 Loss on divestiture (c) 4,706 - 208,670 - (Gain) loss
on foreign currency derivatives (d) - - (523 ) 1,926
Transaction-related expenses (e) 16,496 5,156 50,751 36,571
Income tax provision reflecting tax effect
of adjustments to income from continuing operations (f)
(11,738 ) (16,834 ) (56,230 ) (62,392 )
Adjusted income from continuing operations
attributable to Acadia Healthcare Company, Inc.
$ 60,169 $ 42,293 $ 232,709 $ 152,754 Weighted-average
shares outstanding - diluted 86,890 71,145 85,972 68,391
Adjusted income from continuing operations
attributable to Acadia Healthcare Company, Inc. per diluted
share
$ 0.69 $ 0.59 $ 2.71 $ 2.23 See
footnotes on page 11.
Acadia Healthcare Company,
Inc. Footnotes We have included certain
financial measures in this press release, including EBITDA,
Adjusted EBITDA, Adjusted income from continuing operations, and
constant currency adjusted income 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
adjusted for income from discontinued operations, net loss
attributable to noncontrolling interests, income tax provision, net
interest expense and depreciation and amortization. We define
Adjusted EBITDA as EBITDA adjusted for equity-based compensation
expense, debt extinguishment costs, loss on divestiture, (gain)
loss on foreign currency derivatives and transaction-related
expenses. We define Adjusted income from continuing operations as
net income adjusted for income from discontinued operations,
provision for income taxes, debt extinguishment costs, loss on
divestiture, (gain) loss on foreign currency derivatives,
transaction-related expenses and income tax provision reflecting
tax effect of adjustments attributable to Acadia. EBITDA,
Adjusted EBITDA, Adjusted income from continuing operations and
constant currency adjusted income 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,
Adjusted income from continuing operations and constant currency
adjusted income 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, Adjusted income from
continuing operations and constant currency adjusted income from
continuing operations may not be comparable to similarly titled
measures of other companies. We have included information
concerning EBITDA, Adjusted EBITDA, Adjusted income from continuing
operations and constant currency adjusted income 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, Adjusted income from continuing
operations and constant currency adjusted income from continuing
operations when reporting their results. Our presentation of
EBITDA, Adjusted EBITDA, Adjusted income from continuing operations
and constant currency adjusted income from continuing operations
should not be construed as an inference that our future results
will be unaffected by unusual or nonrecurring items. Foreign
currency exchange rate fluctuations affect the amounts reported
from translating U.K. revenues and expenses into USD. These rate
fluctuations can have a significant effect on our reported
operating results. As a supplement to our reported operating
results, we present constant currency financial information. We use
constant currency financial information to provide a framework to
assess how our business performed excluding the effects of changes
in foreign currency translation rates. Management believes this
information is useful to investors to facilitate comparison of
operating results and better identify trends in our businesses. To
calculate financial information on a constant currency basis,
financial information in the current period for amounts recorded in
GBP is translated into USD at the average exchange rates that were
in effect during the comparable period of the prior year (rather
than the actual exchange rates in effect during the current year
period). The Company is not able to provide a reconciliation
of projected Adjusted EBITDA and adjusted earnings per diluted
share, where provided, to expected results due to the unknown
effect, timing and potential significance of transaction-related
expenses and the tax effect of such expenses. (a) Represents
the equity-based compensation expense of Acadia. (b) For the
three months and year ended December 31, 2016, represents debt
extinguishment costs recorded in connection with the Tranche B-2
Repricing Amendment and the Refinancing Amendment, including the
write-off of $3.2 million of deferred financing costs. For the
three months and year ended December 31, 2015, represents debt
extinguishment costs related to the repayment of $97.5 million of
the Company's 12.875% Senior Notes due 2018, including a prepayment
premium of $7.5 million and the write-off of $3.3 million of
deferred financing costs. (c) As part of divestitures in the
U.K. and U.S., the loss on divestiture includes an allocation of
goodwill to the disposal groups of approximately $106.9 million,
loss on the sale of properties of approximately $45.0 million,
transaction-related expenses of approximately $26.8 million and
write-off of intangible assets of approximately $0.1 million.
(d) Represents the change in fair value of foreign currency
derivatives purchased by Acadia related to (i) acquisitions in the
U.K. and (ii) transfers of cash between the U.S. and U.K. under the
Company’s cash management and foreign currency risk management
programs. (e) Represents transaction-related expenses
incurred by Acadia related to acquisitions. (f) Represents
the income tax provision adjusted to reflect the tax effect of the
adjustments to income from continuing operations based on tax rates
of 18.0% and 28.5% for the three months ended December 31, 2016 and
2015, respectively, and 20.9% and 29.0% for the year ended December
31, 2016 and 2015, respectively. (g) Calculated on a
constant currency basis whereby financial information in the
current period for amounts recorded GBP is translated into USD at
the average exchange rates in effect during the comparable period
of the prior year (rather than the actual exchange rates in effect
during the current year period). The exchange rate used for the
three months and year ended December 31, 2016 is 1.52 and 1.53,
respectively.
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Acadia Healthcare Company, Inc.Brent Turner,
615-861-6000President
Acadia Healthcare (NASDAQ:ACHC)
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