Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced
financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Results
The Company reported revenue of $582.2 million for the second
quarter of 2021, compared with $491.5 million for the second
quarter of 2020. Adjusted EBITDA increased 25.2% to $141.3 million
for the second quarter of 2021, compared with $112.8 million for
the same period last year. Net income attributable to Acadia
stockholders for the second quarter of 2021 was $44.5 million, or
$0.49 per diluted share, compared with net income of $41.1 million,
or $0.46 per diluted share, for the second quarter of 2020.
Adjusted income from continuing operations attributable to Acadia
stockholders per diluted share was $0.71 for the second quarter of
2021. Adjustments to income include transaction-related expenses,
debt extinguishment costs, loss on impairment and the income tax
effect of adjustments to income. A reconciliation of all non-GAAP
financial results in this press release begins on page 9. During
the second quarter of 2020, the Company recognized $18.1 million in
other income from the Provider Relief Fund (“PRF”) established by
the Coronavirus Aid, Relief, and Economic Security (“CARES”)
Act.
For the second quarter of 2021, Acadia’s same facility revenue
increased 18.0% compared with the second quarter of 2020, including
an increase in patient days of 9.8% and an increase in revenue per
patient day of 7.5%. In the second quarter of 2020, the Company
experienced lower patient days due to the impact of the COVID-19
pandemic and related restrictions, which resulted in a
year-over-year decline of 0.7% for the second quarter of 2020
compared to the prior year period. Adjusting prior year patient
days for the estimated impact from the pandemic, patient days
increased approximately 4.8% for the second quarter of 2021. Same
facility adjusted EBITDA margin improved 180 basis points to
29.3%.
Debbie Osteen, Chief Executive Officer of Acadia, remarked, “We
are pleased with the momentum in our business as Acadia delivered a
strong financial and operating performance in the second quarter of
2021. These results reflect increased demand for our behavioral
health services and our continued focus on driving efficiencies
across our operations. We experienced favorable volume trends,
demonstrating the strength of our proven operating model and
successful execution of our growth strategy across our service
lines, all of which provide exceptional patient care. Importantly,
the growing acceptance surrounding mental health and substance
abuse issues and the more favorable reimbursement environment for
treatment have also been key drivers of demand. We commend the hard
work of Acadia’s dedicated employees and clinicians who have
continued to support more patients who need our help with high
quality care in a safe and accessible manner.”
Strategic Investments in Long-Term Growth
“Our growth strategy is centered around four distinct pathways
that will allow Acadia to reach more patients in both new and
existing markets. We are pleased with the progress we have made
this year on our strategy, as we have continued to make strategic
investments designed to support long-term growth across our service
lines. Facility expansions continue to be a key driver of our
growth and the best return on investment. Accordingly, we added 86
beds to our operations in the second quarter, which included 72
incremental beds from the opening of a 260-bed state-of-the-art,
replacement facility for Belmont Behavioral Hospital. This facility
will help meet the growing demand for behavioral health services in
the Philadelphia, Pennsylvania, market and surrounding communities.
With the opening of the new facility, we recorded a non-cash
property impairment of approximately $23.2 million for the existing
facility. We expect to meet our goal of adding approximately 300
beds to existing facilities by the end of the year.
“Another important growth opportunity for Acadia is the
development of wholly owned de novo facilities, especially in
markets with a shortage of beds for behavioral health treatment. On
May 24, 2021, we opened Glenwood Behavioral Health Hospital, an
80-bed hospital in Cincinnati, Ohio. This facility provides
inpatient psychiatric treatment for those who are struggling with a
mental health or a co-occurring substance use disorder.
“We also opened one comprehensive treatment center (CTC) in the
second quarter of 2021. We continue to identify underserved markets
for the treatment of patients with opioid use disorder and expect
to open eight more CTCs this year.
“As health systems across the country look for ways to integrate
behavioral health care and expand treatment options, Acadia has
developed a favorable reputation as a preferred partner for many
leading providers in attractive markets and establishing new joint
venture partnerships remains an important pathway for growth. We
recently announced a joint venture with Bronson Healthcare, one of
Michigan’s leading, integrated healthcare systems, to build a new
96-bed facility in Battle Creek, Michigan. With this addition, we
now have 13 joint venture partnerships in place with premier health
systems to expand our treatment network and improve access to care
in more communities around the country.
“We also have continued to identify acquisitions as another
important opportunity to extend our market reach. Following
regulatory approval, we expect to soon complete the acquisition of
Vallejo Behavioral, a 61-bed psychiatric hospital in Vallejo,
California, from Adventist Health at the end of the third quarter.
We believe the fragmented behavioral healthcare industry offers
additional prospects for acquisitions, and we are well positioned
with the financial strength to capitalize on these
opportunities.
“We believe Acadia has the right strategy in place to continue
to expand our network and meet the needs of more patients. As we
look ahead to the remainder of 2021 and beyond, we will continue to
pursue our growth objectives through bed expansions, wholly owned
de novo facilities, strategic joint ventures and acquisitions,”
added Osteen.
Cash and Liquidity
Acadia’s balance sheet remains strong with ample liquidity and
capital to invest in and grow its business. As of June 30, 2021,
the Company had $185.5 million in cash and cash equivalents. The
Company repaid approximately $41 million of debt during the second
quarter of 2021, including $35 million on its senior secured
revolving credit facility, reducing the outstanding balance to $125
million at June 30, 2021. As of June 30, 2021, the Company had $475
million available under its $600 million revolving credit facility,
and its net leverage ratio was approximately 2.4x.
During the second quarter of 2021, the Company received
approximately $24 million additional PRF distributions under the
CARES Act. The Company is currently evaluating updated PRF
reporting guidance to determine whether any of the funds will be
recognized or returned. During the second quarter, the Company
began repayment of amounts received pursuant to the Medicare
Accelerated and Advanced Payment Program under the CARES Act. The
Company repaid $7 million of the $45 million of advance payments
received in 2020 under the Medicare Accelerated and Advanced
Payment Program and will continue to repay the remaining balance on
a monthly basis through June 2022. Additionally, the Company
expects to repay half of the $39 million of 2020 payroll tax
deferrals in the second half of 2021 and the remaining portion in
2022.
Financial Guidance
Acadia today increased the Company’s financial guidance for 2021
to reflect the strong operating and financial performance for the
first six months of the year and its expectations for the remainder
of the year, as follows:
- Revenue in a range of $2.28 billion to $2.32 billion;
- Adjusted EBITDA in a range of $530 million to $550
million;
- Adjusted earnings per diluted share in a range of $2.50 to
$2.70; and
- Operating cash flows in a range of $275 million to $310
million.
The Company’s guidance does not include discontinued operations
or the impact of any future acquisitions, divestitures or
transaction-related expenses.
Looking Ahead
Osteen concluded, “We are encouraged by the favorable trends in
our business and believe we are well positioned to capitalize on
the expected growth in demand for behavioral health services. While
the COVID-19 pandemic has brought many challenges, particularly for
those people already dealing with mental health and substance
abuse, we are encouraged by the heightened awareness of these
issues and an increased push for access to treatment. As always,
our primary mission is to meet this demand and support the patients
and communities we serve. We will continue to focus on providing
the highest quality of patient care, while extending our market
reach and advancing our position as a leading pure-play behavioral
healthcare provider.”
Conference Call
Acadia will hold a conference call to discuss its second quarter
financial results at 9:00 a.m. Eastern Time on Tuesday, August 3,
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
September 2, 2021.
About Acadia
Acadia is a leading provider of behavioral healthcare services
across the United States. As of June 30, 2021, Acadia operated a
network of 229 behavioral healthcare facilities with approximately
10,100 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) 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; (iii) Acadia’s ability to add beds, expand
services, enhance marketing programs and improve efficiencies at
its facilities; (iv) potential reductions in payments received by
Acadia from government and third-party payors; (v) 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; (vi) 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
(vii) 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 June 30, Six Months Ended June 30,
2021
2020
2021
2020
(In thousands, except per share amounts) Revenue
$
582,156
$
491,475
$
1,133,355
$
1,000,692
Salaries, wages and benefits (including equity-based
compensation expense of $9,031, $5,808, $16,065 and $10,787,
respectively)
309,233
275,258
613,566
562,245
Professional fees
34,696
30,586
66,313
61,637
Supplies
22,633
21,059
43,955
43,255
Rents and leases
9,620
9,493
19,032
18,610
Other operating expenses
73,751
66,171
145,761
134,327
Other income
-
(18,070
)
-
(18,070
)
Depreciation and amortization
25,650
23,331
50,544
46,166
Interest expense, net
16,687
38,518
45,714
81,083
Debt extinguishment costs
-
3,271
24,650
3,271
Loss on impairment
23,214
-
23,214
-
Transaction-related expenses
1,675
5,008
6,285
6,534
Total expenses
517,159
454,625
1,039,034
939,058
Income from continuing operations before income taxes
64,997
36,850
94,321
61,634
Provision for income taxes
19,333
9,177
25,537
14,983
Income from continuing operations
45,664
27,673
68,784
46,651
Income (loss) from discontinued operations, net of taxes
-
14,041
(12,641
)
29,130
Net income
45,664
41,714
56,143
75,781
Net income attributable to noncontrolling interests
(1,150
)
(635
)
(1,912
)
(1,239
)
Net income attributable to Acadia Healthcare Company, Inc.
$
44,514
$
41,079
$
54,231
$
74,542
Basic earnings per share attributable to Acadia Healthcare
Company, Inc. stockholders: Income from continuing operations
attributable to Acadia Healthcare Company, Inc.
$
0.50
$
0.31
$
0.76
$
0.52
Income (loss) from discontinued operations
$
-
$
0.16
$
(0.15
)
$
0.33
Net income attributable to Acadia Healthcare Company, Inc.
$
0.50
$
0.47
$
0.61
$
0.85
Diluted earnings per share attributable to Acadia Healthcare
Company, Inc. stockholders: Income from continuing operations
attributable to Acadia Healthcare Company, Inc.
$
0.49
$
0.31
$
0.74
$
0.51
Income (loss) from discontinued operations
$
-
$
0.15
$
(0.14
)
$
0.33
Net income attributable to Acadia Healthcare Company, Inc.
$
0.49
$
0.46
$
0.60
$
0.84
Weighted-average shares outstanding: Basic
88,842
87,872
88,543
87,818
Diluted
90,590
88,608
90,381
88,228
Acadia Healthcare Company, Inc. Condensed Consolidated
Balance Sheets (Unaudited) June 30,
December 31,
2021
2020
(In thousands) ASSETS Current assets: Cash and
cash equivalents
$
185,546
$
378,697
Accounts receivable, net
286,522
273,551
Other current assets
103,558
61,332
Current assets held for sale
-
1,809,815
Total current assets
575,626
2,523,395
Property and equipment, net
1,651,274
1,622,896
Goodwill
2,103,503
2,105,264
Intangible assets, net
68,463
68,535
Deferred tax assets
3,145
3,209
Operating lease right-of-use assets
101,691
96,937
Other assets
60,299
79,126
Total assets
$
4,564,001
$
6,499,362
LIABILITIES AND EQUITY Current liabilities:
Current portion of long-term debt
$
13,281
$
153,478
Accounts payable
87,223
87,815
Accrued salaries and benefits
133,590
124,912
Current portion of operating lease liabilities
19,254
18,916
Other accrued liabilities
171,867
178,453
Derivative instrument liabilities
-
84,584
Current liabilities held for sale
-
660,027
Total current liabilities
425,215
1,308,185
Long-term debt
1,443,192
2,968,948
Deferred tax liabilities
73,144
50,017
Operating lease liabilities
89,107
84,029
Other liabilities
118,363
133,412
Total liabilities
2,149,021
4,544,591
Redeemable noncontrolling interests
58,394
55,315
Equity: Common stock
889
880
Additional paid-in capital
2,611,852
2,580,327
Accumulated other comprehensive loss
-
(371,365
)
Accumulated deficit
(256,155
)
(310,386
)
Total equity
2,356,586
1,899,456
Total liabilities and equity
$
4,564,001
$
6,499,362
Acadia Healthcare Company, Inc. Condensed Consolidated
Statements of Cash Flows (Unaudited) Six
Months Ended June 30,
2021
2020
(In thousands) Operating activities: Net income
$
56,143
$
75,781
Adjustments to reconcile net income to net cash provided by
continuing operating activities: Depreciation and amortization
50,544
46,166
Amortization of debt issuance costs
2,463
6,382
Equity-based compensation expense
16,065
10,787
Deferred income taxes
8,457
22,136
Loss (income) from discontinued operations, net of taxes
12,641
(29,130
)
Debt extinguishment costs
24,650
3,271
Loss on impairment
23,214
-
Other
828
(955
)
Change in operating assets and liabilities: Accounts receivable,
net
(12,972
)
11,015
Other current assets
(32,056
)
(9,029
)
Other assets
7,276
1,949
Accounts payable and other accrued liabilities
11,306
40,034
Accrued salaries and benefits
8,823
(1,455
)
Other liabilities
(11,121
)
26,322
Net cash provided by continuing operating activities
166,261
203,274
Net cash provided by discontinued operating activities
253
61,668
Net cash provided by operating activities
166,514
264,942
Investing activities: Cash paid for capital
expenditures
(112,953
)
(114,251
)
Proceeds from U.K. Sale
1,511,020
-
Settlement of foreign currency derivatives
(84,795
)
-
Proceeds from sale of property and equipment
899
43
Other
4,953
(4,847
)
Net cash provided by (used in) continuing investing activities
1,319,124
(119,055
)
Net cash used in discontinued investing activities
-
(20,874
)
Net cash provided by (used in) investing activities
1,319,124
(139,929
)
Financing activities: Borrowings on long-term debt
425,000
450,000
Borrowings on revolving credit facility
430,000
100,000
Principal payments on revolving credit facility
(305,000
)
(100,000
)
Principal payments on long-term debt
(2,656
)
(21,242
)
Repayment of long-term debt
(2,227,935
)
(450,000
)
Payment of debt issuance costs
(7,964
)
(10,595
)
Common stock withheld for minimum statutory taxes, net
13,261
(1,377
)
Distributions to noncontrolling interests
(633
)
(451
)
Other
(6,929
)
(854
)
Net cash used in continuing financing activities
(1,682,856
)
(34,519
)
Net cash used in discontinued financing activities
-
(1,490
)
Net cash used in financing activities
(1,682,856
)
(36,009
)
Effect of exchange rate changes on cash
4,067
(1,257
)
Net (decrease) increase in cash and cash equivalents,
including cash classified within current assets held for sale
(193,151
)
87,747
Less: cash classified within current assets held for sale
-
(44,268
)
Net (decrease) increase in cash and cash equivalents
(193,151
)
43,479
Cash and cash equivalents at beginning of the period
378,697
124,192
Cash and cash equivalents at end of the period
$
185,546
$
167,671
Acadia Healthcare Company, Inc. Operating Statistics
(Unaudited, Revenue in thousands) Three Months
Ended June 30, Six Months Ended June 30,
2021
2020
% Change
2021
2020
% Change
U.S. Same Facility Results (1) Revenue
$
576,170
$
488,259
18.0
%
$
1,121,969
$
996,521
12.6
%
Patient Days
706,128
643,010
9.8
%
1,375,853
1,294,941
6.2
%
Admissions
46,494
41,009
13.4
%
90,307
84,453
6.9
%
Average Length of Stay (2)
15.2
15.7
-3.1
%
15.2
15.3
-0.6
%
Revenue per Patient Day
$
816
$
759
7.5
%
$
815
$
770
6.0
%
Adjusted EBITDA margin
29.3
%
27.5
%
180 bps
27.9
%
25.6
%
230 bps U.S. Facility Results Revenue
$
582,156
$
491,475
18.5
%
$
1,133,355
$
1,000,692
13.3
%
Patient Days
712,634
648,518
9.9
%
1,387,125
1,306,520
6.2
%
Admissions
46,974
41,158
14.1
%
91,138
84,761
7.5
%
Average Length of Stay (2)
15.2
15.8
-3.7
%
15.2
15.4
-1.3
%
Revenue per Patient Day
$
817
$
758
7.8
%
$
817
$
766
6.7
%
Adjusted EBITDA margin
28.5
%
27.4
%
110 bps
27.3
%
25.5
%
180 bps (1) Same facility results for the periods presented include
facilities we have operated for more than one year and exclude
certain closed services. (2) Average length of stay is defined as
patient days divided by admissions.
Acadia Healthcare Company,
Inc. Reconciliation of Net Income Attributable to Acadia
Healthcare Company, Inc. to Adjusted EBITDA (Unaudited)
Three Months Ended June 30, Six Months Ended June
30,
2021
2020
2021
2020
(in thousands) Net income attributable to Acadia
Healthcare Company, Inc.
$
44,514
$
41,079
$
54,231
$
74,542
Net income attributable to noncontrolling interests
1,150
635
1,912
1,239
(Income) loss from discontinued operations, net of taxes
-
(14,041
)
12,641
(29,130
)
Provision for income taxes
19,333
9,177
25,537
14,983
Interest expense, net
16,687
38,518
45,714
81,083
Depreciation and amortization
25,650
23,331
50,544
46,166
EBITDA
107,334
98,699
190,579
188,883
Adjustments: Equity-based compensation expense (a)
9,031
5,808
16,065
10,787
Transaction-related expenses (b)
1,675
5,008
6,285
6,534
Debt extinguishment costs (c)
-
3,271
24,650
3,271
Loss on impairment (d)
23,214
-
23,214
-
Adjusted EBITDA
$
141,254
$
112,786
$
260,793
$
209,475
Adjusted EBITDA margin
24.3
%
22.9
%
23.0
%
20.9
%
See footnotes on page 12.
Acadia Healthcare
Company, Inc. Reconciliation of Net Income Attributable to
Acadia Healthcare Company, Inc. to Adjusted Income
Attributable to Acadia Healthcare Company, Inc.
(Unaudited) Three Months EndedJune 30, 2021
Six Months EndedJune 30, 2021 (in thousands, except per
share amounts) Net income attributable to Acadia
Healthcare Company, Inc.
$
44,514
$
54,231
Loss from discontinued operations, net of taxes
-
12,641
Adjustments to income: Transaction-related expenses (b)
1,675
6,285
Debt extinguishment costs (c)
-
24,650
Loss on impairment (d)
23,214
23,214
Provision for income taxes
19,333
25,537
Adjusted income from continuing operations before income taxes
attributable to Acadia Healthcare Company, Inc.
88,736
146,558
Income tax effect of adjustments to income (e)
24,583
40,201
Adjusted income from continuing operations attributable to Acadia
Healthcare Company, Inc.
$
64,153
$
106,357
Weighted-average shares outstanding - diluted
90,590
90,381
Adjusted income from continuing operations attributable to
Acadia Healthcare Company, Inc. per diluted share
$
0.71
$
1.18
Three Months EndedJune 30, 2020 Six
Months EndedJune 30, 2020 (in thousands, except per share
amounts) Net income attributable to Acadia Healthcare Company,
Inc.
$
41,079
$
74,542
Income from discontinued operations, net of taxes
(14,041
)
(29,130
)
Adjustments to income: Transaction-related expenses (b)
5,008
6,534
Debt extinguishment costs (c)
3,271
3,271
Provision for income taxes
9,177
14,983
Adjusted income from continuing operations before income taxes
attributable to Acadia Healthcare Company, Inc.
44,494
70,200
Adjusted income from discontinued operations before income taxes
13,313
30,408
Adjusted income before income taxes attributable to Acadia
Healthcare Company, Inc.
57,807
100,608
Income tax effect of adjustments to income (d)
9,677
15,810
Adjusted income attributable to Acadia Healthcare Company, Inc.
$
48,130
$
84,798
Weighted-average shares outstanding - diluted
88,608
88,228
Adjusted income attributable to Acadia Healthcare Company,
Inc. per diluted share (3)
$
0.54
$
0.96
(3) For the three and six months ended June 30, 2020,
Adjusted income attributable to Acadia Healthcare Company, Inc. per
diluted share includes Adjusted income from discontinued operations
before income taxes and is not directly comparable to Adjusted
income from continuing operations attributable to Acadia Healthcare
Company, Inc. per diluted share for the three and six months ended
June 30, 2021. Interest expense, which has been significantly
reduced following debt repayments in the first quarter of 2021, is
recorded in income from continuing operations and not allocated to
discontinued operations because such allocation would not be
meaningful. Therefore, 2020 reflects consolidated results inclusive
of discontinued operations, and 2021 reflects only continuing
operations. See footnotes on page 12.
Acadia Healthcare
Company, Inc. Discontinued Operations Supplemental Financial
Information (Unaudited)
Statements of Discontinued Operations
Three Months Ended June 30, Six Months Ended June 30,
2021
2020
2021
2020
(in thousands)
Revenue
$
-
$
258,836
$
62,520
$
532,429
Salaries, wages and benefits
-
152,345
35,937
305,674
Professional fees
-
28,028
6,815
60,277
Supplies
-
9,065
2,217
18,840
Rents and leases
-
11,334
2,509
23,041
Other operating expenses
-
26,429
6,682
56,802
Depreciation and amortization
-
18,114
-
36,959
Interest expense, net
-
208
10
428
Loss on sale
-
-
14,254
-
Transaction-related expenses
-
233
6,265
2,256
Total expenses
-
245,756
74,689
504,277
Income (loss) from discontinued operations before income taxes
-
13,080
(12,169
)
28,152
(Benefit from) provision for income taxes
-
(961
)
472
(978
)
Income (loss) from discontinued operations, net of taxes
-
14,041
(12,641
)
29,130
Reconciliation of Income
(Loss) from Discontinued Operations to
Adjusted Income from
Discontinued Operations before Income Taxes
Three Months Ended June 30, Six Months Ended June 30,
2021
2020
2021
2020
(in thousands)
Income (loss) from discontinued operations, net of taxes
$
-
$
14,041
$
(12,641
)
$
29,130
Adjustments to income:
Transaction-related expenses (b)
-
233
6,265
2,256
Loss on sale (f)
-
-
14,254
-
Provision for (benefit from) income taxes
-
(961
)
472
(978
)
Adjusted income from discontinued operations before income taxes
$
-
$
13,313
$
8,350
$
30,408
See footnotes on page 12.
Acadia Healthcare Company, Inc. Footnotes We
have included certain financial measures in this press release,
including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
income from continuing operations before income taxes attributable
to Acadia Healthcare Company, Inc., Adjusted income from continuing
operations attributable to Acadia Healthcare Company, Inc.,
Adjusted income from discontinued operations before income taxes
and Adjusted income attributable to Acadia Healthcare Company,
Inc., 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 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 Adjusted
EBITDA as EBITDA adjusted for equity-based compensation expense,
transaction-related expenses, debt extinguishment costs and loss on
impairment. We define Adjusted income from continuing operations
before income taxes attributable to Acadia Healthcare Company, Inc.
as net income adjusted for loss from discontinued operations, net
of taxes, transaction-related expenses, debt extinguishment costs,
loss on impairment, provision for income taxes and income tax
effect of adjustments to income. We define Adjusted EBITDA margin
as Adjusted EBITDA divided by revenue. We define Adjusted income
from continuing operations attributable to Acadia Healthcare
Company, Inc. as net income attributable to Acadia Healthcare
Company, Inc. adjusted for loss from discontinued operations, net
of taxes, transaction-related expenses, debt extinguishment costs,
loss on impairment and provision for income taxes. 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 sale and provision for
(benefit from) income taxes. 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 the non-GAAP financial measures are not measurements
determined in accordance with GAAP and are thus susceptible to
varying calculations, the non-GAAP financial measures, 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, acquisition and other similar costs. (c) Represents
debt extinguishment costs recorded during the first quarter of 2021
in connection with the redemption of the 5.625% Senior Notes and
6.500% Senior Notes and the termination of the Prior Credit
Facility and during the second quarter of 2020 in connection with
the redemption of the 6.125% Senior Notes and 5.125% Senior Notes.
(d) The Company opened a 260-bed replacement hospital in
Pennsylvania and recorded a non-cash property impairment charge of
$23.2 million for the existing facility. (e) Represents the
income tax effect of adjustments to income based on tax rates of
27.7% and 16.7% for the three months ended June 30, 2021 and 2020,
respectively, and 27.4% and 15.7% for the six months ended June 30,
2021 and 2020, respectively. The Company recorded a $1.6 million
tax benefit from ASU 2016-09 "Improvements to Employee Share-Based
Payment Accounting” in the six months ended June 30, 2021, which
has been excluded from the adjusted tax provision. (f)
Represents the adjustments to the loss on sale recorded in
connection with the U.K. sale to reflect an increase in the U.K.
carrying value.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210802005710/en/
Gretchen Hommrich Director, Investor Relations (615)
861-6000
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