Same Facility Revenue Grows 7.9%
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced
financial results for the third quarter ended September 30,
2021.
Third Quarter 2021 Results
The Company reported revenue of $587.6 million for the third
quarter of 2021, compared with $548.0 million for the third quarter
of 2020. Adjusted EBITDA was $141.9 million for the third quarter
of 2021, compared with $116.0 million for the same period last
year. Results for the third quarter of 2020 included a reversal of
the $18.1 million in other income that had been recorded in the
second quarter of 2020 related to the Provider Relief Fund
established by the Coronavirus Aid, Relief, and Economic Security
(“CARES”) Act. Net income attributable to Acadia stockholders for
the third quarter of 2021 was $66.1 million, or $0.73 per diluted
share, compared to net income of $37.0 million, or $0.42 per
diluted share, for the third quarter of 2020. Adjusted income from
continuing operations attributable to Acadia stockholders was $0.72
per diluted share for the third 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.
For the third quarter of 2021, Acadia’s same facility revenue
increased 7.9% compared with the third quarter of 2020, including
an increase in revenue per patient day of 5.6% and an increase in
patient days of 2.2%. Same facility adjusted EBITDA margin was
29.0%.
Debbie Osteen, Chief Executive Officer of Acadia Healthcare
Company, remarked, “We continue to see favorable momentum in our
business as demand for our behavioral health services remains
strong, especially within our acute and specialty service lines.
Our teams faced some challenges during the third quarter related to
Hurricane Ida and the surge of the Delta variant of COVID-19. We
are extremely proud of them and applaud their dedication and caring
for our patients under extraordinary conditions. Above all, the
safety of our patients is our top priority, and we remain focused
on providing consistent care for those seeking treatment for mental
health and substance use issues.
“Our financial results for the third quarter were adversely
affected by disruptions from Hurricane Ida in Louisiana, including
temporary evacuation of one facility. The hurricane had a negative
0.3% impact on our revenue growth rate and a $0.01 impact on
Adjusted EPS. In addition, our facilities in certain markets
managed through an elevated level of COVID-19 cases during the
third quarter. Despite these challenges, we continued to manage our
operations safely and efficiently while maintaining our same high
standards of patient care.”
Strategic Investments for Long-Term Growth
“We have made significant progress this year in executing on key
strategic initiatives across our service lines as we have continued
to make the right investments to support sustained, long-term
growth. During the third quarter, we added 104 beds to our
operations, bringing our total to 282 bed additions to existing
facilities this year. We believe facility expansions offer the
highest return on investment for Acadia, and we expect to meet our
goal of adding approximately 300 beds to existing facilities by the
end of the year.
“We also opened two new comprehensive treatment centers (CTCs)
in the third quarter, located in Tennessee and Florida. CTCs are
designed to address the growing and critical need for addiction
treatment, especially for patients dealing with opioid use
disorder. Through the end of the third quarter, we have opened five
CTCs and expect to open six additional CTCs in underserved markets
by the end of 2021.
“Forming strategic partnerships with leading healthcare systems
across the country has been another important pathway for growth
for Acadia. With the growing recognition and acceptance of
behavioral health services driving demand, established providers
are looking for ways to leverage their market presence and provide
more treatment options in the communities they serve. We are proud
of our 13 partnerships across the country, and we are excited about
the opportunities to expand our reach into more communities. During
the third quarter, we broke ground on new facilities with two of
our JV partners – Geisinger and Lutheran Health Network of
Indiana.
“Our success to date in 2021 confirms the strength of our
operating model and our ability to execute our strategy. Looking
ahead, we will continue to expand our network and serve more
patients through our four distinct pathways for growth – 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 support its growth strategy. As of September 30, 2021,
the Company had $196.3 million in cash and cash equivalents. During
the third quarter, the Company repaid $25 million on its senior
secured revolving credit facility, reducing the outstanding balance
to $100 million as of September 30, 2021. The Company had $500
million available under its $600 million revolving credit facility
as of September 30, 2021, and its net leverage ratio was
approximately 2.2x.
During the third quarter, the Company continued its repayment of
amounts received pursuant to the Medicare Accelerated and Advanced
Payment Program under the CARES Act. In the third quarter of 2021,
the Company repaid $10 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 September 2022. Also in the
third quarter of 2021, the Company repaid half of the approximately
$39 million of 2020 payroll tax deferrals with the remaining
portion to be paid in 2022.
Financial Guidance
Acadia today narrowed its financial guidance for 2021, within
previously announced ranges, as follows:
- Revenue in a range of $2.295 billion to $2.315 billion;
- Adjusted EBITDA in a range of $537 million to $547
million;
- Adjusted earnings per diluted share in a range of $2.51 to
$2.59, which reflects a revised estimate of stock compensation
expense for the fourth quarter of 2021 in a range of $11 million to
$13 million;
- Operating cash flows in a range of $290 million to $325
million; and
- Total capital expenditures in a range of $210 million to $230
million, which includes approximately $45 million for maintenance
capital expenditures.
The Company’s guidance does not include the impact of any future
acquisitions or transaction-related expenses.
Looking Ahead
“We are excited about the opportunities ahead for Acadia, as we
focus on our primary objective to expand our market reach and
support more patients with safe and quality care. We are especially
pleased to see the growing acceptance and additional funding
support for mental health and substance abuse issues. We have a
unique opportunity to capitalize on these promising trends and meet
the critical and growing demand for behavioral health services.
Importantly, we have the capital structure to support our strategic
growth initiatives and further enhance our position as the leading
pure-play behavioral healthcare provider,” concluded Osteen.
Acadia will hold a conference call to discuss its third quarter
financial results at 9:00 a.m. Eastern Time on Friday, October 29,
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 for 30
days.
About Acadia
Acadia is a leading provider of behavioral healthcare services
across the United States. As of September 30, 2021, Acadia operated
a network of 230 behavioral healthcare facilities with
approximately 10,200 beds in 40 states and Puerto Rico. With more
than 20,000 employees serving approximately 70,000 patients daily,
Acadia is the largest stand-alone behavioral health company in the
U.S. Acadia provides behavioral healthcare services to its patients
in a variety of settings, including inpatient psychiatric
hospitals, specialty treatment facilities, residential treatment
centers and outpatient clinics.
Forward-Looking Information
This press release contains forward-looking statements.
Generally, words such as “may,” “will,” “should,” “could,”
“anticipate,” “expect,” “intend,” “estimate,” “plan,” “continue,”
and “believe” or the negative of or other variation on these and
other similar expressions identify forward-looking statements.
These forward-looking statements are made only as of the date of
this press release. We do not undertake to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise. Forward-looking statements are based on
current expectations and involve risks and uncertainties and our
future results could differ significantly from those expressed or
implied by our forward-looking statements. Factors that may cause
actual results to differ materially include, without limitation,
(i) the impact of the COVID-19 pandemic, including, without
limitation, disruption to the U.S. economy and financial markets;
reduced admissions and patient volumes; increased costs relating to
labor, supply chain and other expenditures; and difficulty in
collecting patient accounts receivable due to increases in the
unemployment rate and the number of underinsured and uninsured
patients; (ii) the impact of vaccine and other pandemic-related
mandates imposed by local, state and federal authorities; (iii)
potential difficulties in successfully integrating the operations
of acquired facilities or realizing the expected benefits and
synergies of our acquisitions, joint ventures and de novo
transactions; (iv) Acadia’s ability to add beds, expand services,
enhance marketing programs and improve efficiencies at its
facilities; (v) potential reductions in payments received by Acadia
from government and third-party payors; (vi) the occurrence of
patient incidents, governmental investigations, litigation and
adverse regulatory actions, which could adversely affect the price
of our common stock and result in substantial payments and
incremental regulatory burdens; (vii) the risk that Acadia may not
generate sufficient cash from operations to service its debt and
meet its working capital and capital expenditure requirements; and
(viii) potential operating difficulties, labor costs, client
preferences, changes in competition and general economic or
industry conditions that may prevent Acadia from realizing the
expected benefits of its business strategies. These factors and
others are more fully described in Acadia’s periodic reports and
other filings with the SEC.
Acadia Healthcare Company,
Inc.
Condensed Consolidated
Statements of Operations
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(In thousands, except per
share amounts)
Revenue
$
587,559
$
547,961
$
1,720,914
$
1,548,653
Salaries, wages and benefits (including equity-based
compensation expense of$8,923, $5,471, $24,988 and $16,258,
respectively)
309,118
290,619
922,684
852,864
Professional fees
35,602
29,372
101,915
91,009
Supplies
23,743
21,773
67,698
65,028
Rents and leases
9,658
9,365
28,690
27,975
Other operating expenses
76,502
68,213
222,263
202,540
Other income
-
18,070
-
-
Depreciation and amortization
27,805
24,132
78,349
70,298
Interest expense, net
15,706
37,315
61,420
118,398
Debt extinguishment costs
-
-
24,650
3,271
Loss on impairment
1,079
-
24,293
-
Transaction-related expenses
3,035
3,024
9,320
9,558
Total expenses
502,248
501,883
1,541,282
1,440,941
Income from continuing operations before income taxes
85,311
46,078
179,632
107,712
Provision for income taxes
17,411
9,191
42,948
24,174
Income from continuing operations
67,900
36,887
136,684
83,538
Income (loss) from discontinued operations, net of taxes
-
674
(12,641
)
29,804
Net income
67,900
37,561
124,043
113,342
Net income attributable to noncontrolling interests
(1,774
)
(563
)
(3,686
)
(1,802
)
Net income attributable to Acadia Healthcare Company, Inc.
$
66,126
$
36,998
$
120,357
$
111,540
Basic earnings per share attributable to Acadia Healthcare
Company, Inc.stockholders: Income from continuing operations
attributable to Acadia HealthcareCompany, Inc.
$
0.74
$
0.41
$
1.50
$
0.93
Income (loss) from discontinued operations
$
-
$
0.01
$
(0.14
)
$
0.34
Net income attributable to Acadia Healthcare Company, Inc.
$
0.74
$
0.42
$
1.36
$
1.27
Diluted earnings per share attributable to Acadia Healthcare
Company, Inc.stockholders: Income from continuing operations
attributable to Acadia HealthcareCompany, Inc.
$
0.73
$
0.41
$
1.47
$
0.92
Income (loss) from discontinued operations
$
-
$
0.01
$
(0.14
)
$
0.34
Net income attributable to Acadia Healthcare Company, Inc.
$
0.73
$
0.42
$
1.33
$
1.26
Weighted-average shares outstanding: Basic
88,962
87,911
88,684
87,849
Diluted
90,889
88,856
90,604
88,449
Acadia Healthcare Company,
Inc.
Condensed Consolidated Balance
Sheets
(Unaudited)
September 30,
December 31,
2021
2020
(In thousands)
ASSETS
Current assets: Cash and cash equivalents
$
196,313
$
378,697
Accounts receivable, net
282,161
273,551
Other current assets
88,685
61,332
Current assets held for sale
-
1,809,815
Total current assets
567,159
2,523,395
Property and equipment, net
1,665,025
1,622,896
Goodwill
2,103,503
2,105,264
Intangible assets, net
69,366
68,535
Deferred tax assets
3,112
3,209
Operating lease right-of-use assets
103,162
96,937
Other assets
83,400
79,126
Total assets
$
4,594,727
$
6,499,362
LIABILITIES AND EQUITY
Current liabilities: Current portion of long-term debt
$
15,938
$
153,478
Accounts payable
85,924
87,815
Accrued salaries and benefits
124,164
124,912
Current portion of operating lease liabilities
20,062
18,916
Other accrued liabilities
157,204
178,453
Derivative instrument liabilities
-
84,584
Current liabilities held for sale
-
660,027
Total current liabilities
403,292
1,308,185
Long-term debt
1,413,407
2,968,948
Deferred tax liabilities
73,673
50,017
Operating lease liabilities
89,952
84,029
Other liabilities
117,883
133,412
Total liabilities
2,098,207
4,544,591
Redeemable noncontrolling interests
62,074
55,315
Equity: Common stock
890
880
Additional paid-in capital
2,623,585
2,580,327
Accumulated other comprehensive loss
-
(371,365
)
Accumulated deficit
(190,029
)
(310,386
)
Total equity
2,434,446
1,899,456
Total liabilities and equity
$
4,594,727
$
6,499,362
Acadia Healthcare Company,
Inc.
Condensed Consolidated
Statements of Cash Flows
(Unaudited)
Nine Months Ended September
30,
2021
2020
(In thousands)
Operating activities: Net income
$
124,043
$
113,342
Adjustments to reconcile net income to net cash provided by
continuing operating activities: Depreciation and amortization
78,349
70,298
Amortization of debt issuance costs
3,265
9,696
Equity-based compensation expense
24,988
16,258
Deferred income taxes
8,995
45,105
Loss (income) from discontinued operations, net of taxes
12,641
(29,804
)
Debt extinguishment costs
24,650
3,271
Loss on impairment
24,293
-
Other
881
1,024
Change in operating assets and liabilities: Accounts receivable,
net
(8,610
)
7,364
Other current assets
(2,758
)
(4,942
)
Other assets
(15,846
)
(880
)
Accounts payable and other accrued liabilities
6,358
19,854
Accrued salaries and benefits
18,820
14,150
Other liabilities
(11,633
)
(2,256
)
Government relief funds
(12,058
)
103,908
Net cash provided by continuing operating activities
276,378
366,388
Net cash provided by discontinued operating activities
253
105,852
Net cash provided by operating activities
276,631
472,240
Investing activities: Cash paid for capital
expenditures
(156,624
)
(168,804
)
Proceeds from U.K. Sale
1,511,020
-
Settlement of foreign currency derivatives
(84,795
)
-
Proceeds from sale of property and equipment
1,792
72
Cash paid for purchase of finance lease
(31,401
)
-
Other
4,906
(10,734
)
Net cash provided by (used in) continuing investing activities
1,244,898
(179,466
)
Net cash used in discontinued investing activities
-
(30,188
)
Net cash provided by (used in) investing activities
1,244,898
(209,654
)
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
(330,000
)
(100,000
)
Principal payments on long-term debt
(5,313
)
(31,863
)
Repayment of long-term debt
(2,227,935
)
(450,000
)
Payment of debt issuance costs
(7,964
)
(11,220
)
Common stock withheld for minimum statutory taxes, net
16,072
(1,311
)
Distributions to noncontrolling interests
(926
)
(653
)
Other
(6,914
)
(1,291
)
Net cash used in continuing financing activities
(1,707,980
)
(46,338
)
Net cash used in discontinued financing activities
-
(2,226
)
Net cash used in financing activities
(1,707,980
)
(48,564
)
Effect of exchange rate changes on cash
4,067
488
Net (decrease) increase in cash and cash equivalents,
including cash classified withincurrent assets held for sale
(182,384
)
214,510
Less: cash classified within current assets held for sale
-
(50,568
)
Net (decrease) increase in cash and cash equivalents
(182,384
)
163,942
Cash and cash equivalents at beginning of the period
378,697
124,192
Cash and cash equivalents at end of the period
$
196,313
$
288,134
Acadia Healthcare Company,
Inc.
Operating Statistics
(Unaudited, Revenue in
thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
% Change
2021
2020
% Change
U.S. Same Facility Results (1) Revenue
$
586,420
$
543,402
7.9
%
$
1,708,389
$
1,539,923
10.9
%
Patient Days
699,344
684,326
2.2
%
2,075,197
1,979,267
4.8
%
Admissions
45,070
44,781
0.6
%
135,377
129,234
4.8
%
Average Length of Stay (2)
15.5
15.3
1.5
%
15.3
15.3
0.1
%
Revenue per Patient Day
$
839
$
794
5.6
%
$
823
$
778
5.8
%
Adjusted EBITDA margin
29.0
%
25.4
%
360 bps
28.3
%
25.5
%
280 bps U.S. Facility Results Revenue
$
587,559
$
547,961
7.2
%
$
1,720,914
$
1,548,653
11.1
%
Patient Days
701,352
689,402
1.7
%
2,088,477
1,995,922
4.6
%
Admissions
45,246
44,877
0.8
%
136,384
129,638
5.2
%
Average Length of Stay (2)
15.5
15.4
0.9
%
15.3
15.4
-0.5
%
Revenue per Patient Day
$
838
$
795
5.4
%
$
824
$
776
6.2
%
Adjusted EBITDA margin
28.3
%
25.3
%
300 bps
27.7
%
25.4
%
230 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 September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Net income attributable to Acadia Healthcare Company, Inc.
$
66,126
$
36,998
$
120,357
$
111,540
Net income attributable to noncontrolling interests
1,774
563
3,686
1,802
(Income) loss from discontinued operations, net of taxes
-
(674
)
12,641
(29,804
)
Provision for income taxes
17,411
9,191
42,948
24,174
Interest expense, net
15,706
37,315
61,420
118,398
Depreciation and amortization
27,805
24,132
78,349
70,298
EBITDA
128,822
107,525
319,401
296,408
Adjustments: Equity-based compensation expense (a)
8,923
5,471
24,988
16,258
Transaction-related expenses (b)
3,035
3,024
9,320
9,558
Debt extinguishment costs (c)
-
-
24,650
3,271
Loss on impairment (d)
1,079
-
24,293
-
Adjusted EBITDA
$
141,859
$
116,020
$
402,652
$
325,495
Adjusted EBITDA margin
24.1
%
21.2
%
23.4
%
21.0
%
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 EndedSeptember 30,
2021 Nine Months EndedSeptember 30, 2021 (in
thousands, except per share amounts) Net income
attributable to Acadia Healthcare Company, Inc.
$
66,126
$
120,357
Loss from discontinued operations, net of taxes
-
12,641
Adjustments to income: Transaction-related expenses (b)
3,035
9,320
Debt extinguishment costs (c)
-
24,650
Loss on impairment (d)
1,079
24,293
Provision for income taxes
17,411
42,948
Adjusted income from continuing operations before income taxes
attributable toAcadia Healthcare Company, Inc.
87,651
234,209
Income tax effect of adjustments to income (e)
22,508
62,709
Adjusted income from continuing operations attributable to Acadia
Healthcare Company, Inc.
$
65,143
$
171,500
Weighted-average shares outstanding - diluted
90,889
90,604
Adjusted income from continuing operations attributable to
Acadia Healthcare Company, Inc.per diluted share
$
0.72
$
1.89
Three Months EndedSeptember 30, 2020 Nine
Months EndedSeptember 30, 2020 (in thousands, except per
share amounts) Net income attributable to Acadia Healthcare
Company, Inc.
$
36,998
$
111,540
Income from discontinued operations, net of taxes
(674
)
(29,804
)
Adjustments to income: Transaction-related expenses (b)
3,024
9,558
Debt extinguishment costs (c)
-
3,271
Provision for income taxes
9,191
24,174
Adjusted income from continuing operations before income taxes
attributable toAcadia Healthcare Company, Inc.
48,539
118,739
Adjusted income from discontinued operations before income taxes
24,367
54,775
Adjusted income before income taxes attributable to Acadia
Healthcare Company, Inc.
72,906
173,514
Income tax effect of adjustments to income (e)
12,562
28,372
Adjusted income attributable to Acadia Healthcare Company, Inc.
$
60,344
$
145,142
Weighted-average shares outstanding - diluted
88,856
88,449
Adjusted income attributable to Acadia Healthcare Company,
Inc. per diluted share (3)
$
0.68
$
1.64
(3) For the three and nine months
ended September 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 nine months ended September 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 September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Revenue
$
-
$
285,343
$
62,520
$
817,772
Salaries, wages and benefits
-
159,840
35,937
465,514
Professional fees
-
31,987
6,815
92,264
Supplies
-
9,434
2,217
28,274
Rents and leases
-
11,817
2,509
34,858
Other operating expenses
-
28,880
6,682
85,682
Depreciation and amortization
-
18,780
-
55,739
Interest expense, net
-
238
10
666
Loss on sale
-
-
14,254
-
Loss on impairment
-
20,239
-
20,239
Transaction-related expenses
-
5,479
6,265
7,735
Total expenses
-
286,694
74,689
790,971
(Loss) income from discontinued operations before income taxes
-
(1,351
)
(12,169
)
26,801
(Benefit from) provision for income taxes
-
(2,025
)
472
(3,003
)
Income (loss) from discontinued operations, net of taxes
-
674
(12,641
)
29,804
Reconciliation of Income
(Loss) from Discontinued Operations to Adjusted Income from
Discontinued Operations before Income Taxes
Three Months Ended September
30,
Nine Months Ended September
30,
2021
2020
2021
2020
(in thousands)
Income (loss) from discontinued operations, net of taxes
$
-
$
674
$
(12,641
)
$
29,804
Adjustments to income: Transaction-related expenses (b)
-
5,479
6,265
7,735
Loss on sale (f)
-
-
14,254
-
Loss on impairment (g)
-
20,239
-
20,239
Provision for (benefit from) income taxes
-
(2,025
)
472
(3,003
)
Adjusted income from discontinued operations before income taxes
$
-
$
24,367
$
8,350
$
54,775
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 EBITDA margin as Adjusted EBITDA
divided by revenue. 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 and provision for income
taxes. 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, provision
for income taxes and income tax effect of adjustments to income. 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, loss on
impairment 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 during the second quarter
of 2021. Additionally, during the third quarter of 2021, the
Company recorded a $1.1 million non-cash property impairment charge
for one facility in Louisiana resulting from hurricane damage.
(e) Represents the income tax effect of adjustments to
income based on tax rates of 25.7% and 17.2% for the three months
ended September 30, 2021 and 2020, respectively, and 26.8% and
16.4% for the nine months ended September 30, 2021 and 2020,
respectively. During the three and nine months ended September 30,
2021, the Company recorded a tax benefit of $0.2 million and $1.9
million, respectively, from ASU 2016-09 “Improvements to Employee
Share-Based Payment Accounting”. During the three and nine months
ended September 30, 2021, the Company recorded a tax benefit of
$3.1 million related to the release of a valuation allowance placed
on capital gains for certain facilities disposed of in prior
periods. Both tax benefits were excluded from the adjusted tax
provision for the three and nine months ended September 30, 2021.
(f) Represents the adjustments to the loss on sale recorded
in connection with the sale of our U.K. operations in January 2021
to reflect an increase in the U.K. carrying value. (g) For
the three and nine months ended September 30, 2020, represents a
non-cash lease impairment charge of $16.4 million and a non-cash
long-lived asset impairment charge of $3.8 million related to the
decision to close certain U.K. elderly care facilities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211028006111/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