Company Provides Full Year and First Quarter
2022 Guidance
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced
financial results for the fourth quarter and year ended December
31, 2021.
Fourth Quarter Highlights
- Revenue totaled $593.5 million
- Same facility revenue increased 10.7% as compared to the fourth
quarter of 2020, including an increase in revenue per patient day
of 7.8% and patient days of 2.7%
- Adjusted EBITDA totaled $156.1 million, which included $17.9
million of income from the Provider Relief Fund (“PRF”) established
under the Coronavirus Aid, Relief, and Economic Security (“CARES”)
Act
- Net income attributable to Acadia Healthcare Company, Inc.
totaled $70.3 million, or $0.77 per diluted share, and adjusted
income from continuing operations attributable to Acadia
stockholders totaled $73.6 million, or $0.81 per diluted share,
which included $0.14 of income from the PRF established under the
CARES Act
- Cash flows from operating activities totaled $97.8 million
Fourth Quarter Results
The Company reported revenue of $593.5 million for the fourth
quarter of 2021, compared with $541.3 million for the fourth
quarter of 2020. Adjusted EBITDA was $156.1 million for the fourth
quarter of 2021, compared with $157.9 million for the same period
last year. The Company recorded income of $17.9 million and $32.8
million in the fourth quarters of 2021 and 2020, respectively,
related to the PRF established under the CARES Act. Excluding these
funds, Adjusted EBITDA was $138.2 million for the fourth quarter of
2021, compared with $125.1 million for the fourth quarter of
2020.
Net income attributable to Acadia stockholders for the fourth
quarter of 2021 was $70.3 million, or $0.77 per diluted share,
compared to net loss of $783.7 million, or $8.78 per diluted share,
for the fourth quarter of 2020. The results for the fourth quarter
of 2020 included a loss from discontinued operations of $842.2
million, net of income taxes, primarily related to the loss on sale
of the U.K. business of $867.3 million. For the fourth quarter of
2021, adjusted income from continuing operations attributable to
Acadia stockholders was $0.81 per diluted share. Excluding income
from the PRF, adjusted income from continuing operations was $0.67
for the fourth quarter of 2021. Adjustments to income include
transaction-related expenses and the income tax effect of
adjustments to income. A reconciliation of all non-GAAP financial
results in this press release begins on page 10.
For the fourth quarter of 2021, Acadia’s same facility revenue
increased 10.7% compared with the fourth quarter of 2020, including
an increase in revenue per patient day of 7.8% and an increase in
patient days of 2.7%.
Debbie Osteen, Chief Executive Officer of Acadia Healthcare
Company, remarked, “We are pleased with our financial and operating
results for the fourth quarter of 2021, completing another year of
strong growth for Acadia. These results reflect robust demand for
our behavioral health services. While we faced challenges late in
the fourth quarter of 2021 and early in the first quarter of 2022
related to the surge of the Omicron variant of COVID-19, we
continued to see solid year-over-year volume growth and strong
operating trends. Our facility and corporate leadership teams have
continued to manage labor costs while navigating a tight labor
market. We are fortunate to have an experienced and dedicated team
of employees and clinicians across our operations who have
continued to provide quality patient care for those seeking
treatment for mental health and substance use issues. Our strong
results reflect our ability to effectively manage our operations
and execute our growth strategy despite a challenging
environment.
Strategic Investments for Long-Term Growth
“We had a very active fourth quarter with respect to key
strategic growth initiatives across our service lines. We announced
three new joint venture partnerships, the acquisition of real
estate to open new facilities in the Chicago, Illinois, market and
the acquisition of CenterPointe Behavioral Health System located in
Missouri. We also added 13 beds to our existing facilities,
bringing our total to 295 bed additions to existing facilities in
2021.
“An important growth objective for Acadia is to identify
underserved markets for behavioral health treatment and develop
wholly owned de novo facilities that help fill this gap. In line
with this strategy, during the fourth quarter, we completed the
acquisition of the real estate for three currently non-operational
facilities, including one adult hospital, one children’s hospital
and an outpatient facility, all located on the north side of
Chicago. Prior to reopening, Acadia will make infrastructure
investments to improve the behavioral health facilities, which will
operate as Montrose Behavioral Health Hospital. This is an exciting
opportunity for Acadia to enter the greater Chicago area and
address the significant need for behavioral health services for
adults and children. The 60-bed children’s hospital and outpatient
facility are expected to open in the summer of 2022 and the 101-bed
adult hospital is slated to begin operations in 2023. In addition
to the Chicago facilities, we also expect to open an additional de
novo facility in Indio, California, in late 2022.
“We also continued to expand our network of comprehensive
treatment centers (CTCs), which are designed to address the growing
and critical need for medication-assisted treatment for patients
dealing with opioid use disorder. During the fourth quarter we
opened five new CTCs, bringing the total number to ten CTCs opened
in 2021. With the growing recognition and acceptance of the
critical need for quality addiction treatment, we plan to open an
additional six to ten CTCs in 2022 to address this demand.
“As a leading provider of behavioral health services, we are
especially proud to work with leading health systems and hospitals
across the country who are looking for a strong partner to help
expand behavioral health treatment options in their respective
communities. We announced three new joint venture partnerships
during the fourth quarter, expanding our market reach to 16
partnerships. Our latest partners include Fairview Health Services,
one of Minnesota’s leading health systems, to build a new hospital
with 144 beds in the Twin Cities area; SCL Health, a premier
healthcare system in Colorado, for a new 144-bed facility in the
Denver area; and Orlando Health, one of Central Florida’s premier
health systems, to expand inpatient and outpatient programs and
community outreach. In 2022, we expect to open new facilities with
Covenant Health in Knoxville, Tennessee, and Lutheran Health
Network in Ft. Wayne, Indiana. We will continue to seek
partnerships with premier health systems who share our commitment
to expand access to quality care and treatment.
“We also have continued to expand our operations in high growth
markets through select acquisitions that meet the criteria of our
disciplined capital allocation framework. On December 31, 2021, we
completed the acquisition of CenterPointe Behavioral Health System,
the largest dedicated behavioral healthcare provider in the state
of Missouri for cash consideration of $139 million. The acquired
assets consist of four inpatient hospitals with 260 acute care beds
and 46 specialty beds for substance use and ten outpatient
locations. This transaction is commensurate with our growth
strategy, and we look forward to pursuing additional acquisition
opportunities for Acadia in the year ahead,” added Osteen.
Cash and Liquidity
Acadia’s balance sheet remains strong with ample liquidity and
capital to support its growth strategy. As of December 31, 2021,
the Company had $133.8 million in cash and cash equivalents. The
Company funded the CenterPointe acquisition through a combination
of cash on hand and borrowings of $70 million under the Company’s
revolving credit facility. As of December 31, 2021, Acadia had $430
million available under its $600 million revolving credit facility,
and its net leverage ratio was approximately 2.4x.
During the fourth quarter, the Company continued its repayment
of amounts received pursuant to the Medicare Accelerated and
Advanced Payment Program under the CARES Act. Of the $45 million of
advanced payments received in 2020, the Company repaid $25 million
in 2021, including payments of $8.2 million in the fourth quarter.
The Company will continue to repay the remaining balance throughout
2022. The Company also repaid half of the approximately $39 million
of 2020 payroll tax deferrals in September 2021 and will repay the
remaining portion in the second half of 2022.
Financial Guidance
Acadia today established financial guidance for 2022, as
follows:
2022 Guidance Range
Revenue
$2.55 to $2.60 billion
Adjusted EBITDA
$575 to $610 million
Adjusted earnings per diluted
share
$2.85 to $3.15
Interest Expense
$65 to $70 million
Tax rate
25% to 26%
Depreciation and amortization
expense
$120 to $130 million
Stock compensation expense
Approximately $30 million
Operating cash flows, including
$39 million
of CARES Act repayments
$350 to $400 million
Expansion capital
expenditures
$290 to $340 million
Maintenance capital
expenditures
Approximately $50 million
Acadia also established financial guidance for the first quarter
of 2022, as follows:
First Quarter 2022 Guidance
Range
Revenue
$600 to $610 million
Adjusted EBITDA
$130 to $135 million
Adjusted earnings per diluted
share
$0.62 to $0.66
The Company’s guidance does not include the impact of any future
acquisitions, divestitures or transaction-related expenses.
Looking Ahead
Osteen added, “We are proud of our performance for 2021 as we
continued to execute on the key pathways of our growth strategy
with favorable results. We are even more proud of the critical role
we play as the leading pure-play provider of behavioral healthcare
services and our unwavering commitment to providing safe and
quality patient care in Acadia’s facilities across our network. Our
primary objective for 2022 is to continue to extend our market
reach with a goal to add 300 beds to existing facilities and pursue
additional opportunities for de novo facilities, joint venture
partnerships and acquisitions. As we witness greater societal
acceptance of treatment for mental health and addiction issues and
more access to funding support, we see significant opportunities
for continued growth for Acadia. Importantly, we have the financial
strength to support a strategy that delivers greater value for our
patients, the communities we serve, and our stakeholders.”
Conference Call
Acadia will hold a conference call to discuss its fourth quarter
financial results at 9:00 a.m. Eastern Time on Tuesday, March 1,
2022. 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 December 31, 2021, Acadia operated
a network of 238 behavioral healthcare facilities with
approximately 10,500 beds in 40 states and Puerto Rico. With more
than 22,500 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;
(viii) potential disruptions to our information technology systems
or a cyber security incident; and (ix) 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 December
31,
Year Ended December
31,
2021
2020
2021
2020
(In thousands, except per
share amounts)
Revenue
$
593,480
$
541,276
$
2,314,394
$
2,089,929
Salaries, wages and benefits (including equity-based
compensation expense of $12,542, $6,246, $37,530 and
$22,504, respectively)
321,120
301,658
1,243,804
1,154,522
Professional fees
34,824
29,480
136,739
120,489
Supplies
23,004
22,213
90,702
87,241
Rents and leases
9,829
9,387
38,519
37,362
Other operating expenses
79,076
59,732
301,339
262,272
Income from provider relief fund
(17,900
)
(32,819
)
(17,900
)
(32,819
)
Depreciation and amortization
28,368
24,958
106,717
95,256
Interest expense, net
15,573
39,707
76,993
158,105
Debt extinguishment costs
-
3,962
24,650
7,233
Loss on impairment
-
4,751
24,293
4,751
Transaction-related expenses
3,458
2,162
12,778
11,720
Total expenses
497,352
465,191
2,038,634
1,906,132
Income from continuing operations before income taxes
96,128
76,085
275,760
183,797
Provision for income taxes
24,609
16,432
67,557
40,606
Income from continuing operations
71,519
59,653
208,203
143,191
Loss from discontinued operations, net of taxes
-
(842,194
)
(12,641
)
(812,390
)
Net income (loss)
71,519
(782,541
)
195,562
(669,199
)
Net income attributable to noncontrolling interests
(1,241
)
(1,131
)
(4,927
)
(2,933
)
Net income (loss) attributable to Acadia Healthcare Company, Inc.
$
70,278
$
(783,672
)
$
190,635
$
(672,132
)
Basic earnings per share attributable to Acadia Healthcare
Company, Inc. stockholders: Income from
continuing operations attributable to Acadia Healthcare
Company, Inc.
$
0.79
$
0.67
$
2.29
$
1.60
Loss from discontinued operations
$
-
$
(9.58
)
$
(0.14
)
$
(9.25
)
Net income (loss) attributable to Acadia Healthcare Company, Inc.
$
0.79
$
(8.91
)
$
2.15
$
(7.65
)
Diluted earnings per share attributable to Acadia Healthcare
Company, Inc. stockholders: Income from
continuing operations attributable to Acadia Healthcare
Company, Inc.
$
0.77
$
0.66
$
2.24
$
1.58
Loss from discontinued operations
$
-
$
(9.44
)
$
(0.14
)
$
(9.17
)
Net income (loss) attributable to Acadia Healthcare Company, Inc.
$
0.77
$
(8.78
)
$
2.10
$
(7.59
)
Weighted-average shares outstanding: Basic
89,020
87,952
88,769
87,875
Diluted
91,038
89,233
90,793
88,595
Acadia Healthcare Company,
Inc.
Condensed Consolidated Balance Sheets (Unaudited)
December 31,
2021
2020
(In thousands)
ASSETS
Current assets: Cash
and cash equivalents
$
133,813
$
378,697
Accounts receivable, net
281,332
273,551
Other current assets
79,886
61,332
Current assets held for sale
-
1,809,815
Total current assets
495,031
2,523,395
Property and equipment, net
1,771,159
1,622,896
Goodwill
2,199,937
2,105,264
Intangible assets, net
70,145
68,535
Deferred tax assets
3,080
3,209
Operating lease right-of-use assets
133,761
96,937
Other assets
94,965
79,126
Total assets
$
4,768,078
$
6,499,362
LIABILITIES AND
EQUITY
Current liabilities:
Current portion
of long-term debt
$
18,594
$
153,478
Accounts payable
98,575
87,815
Accrued salaries and benefits
137,845
124,912
Current portion of operating lease liabilities
23,348
18,916
Other accrued liabilities
126,499
178,453
Derivative instrument liabilities
-
84,584
Current liabilities held for sale
-
660,027
Total current liabilities
404,861
1,308,185
Long-term debt
1,478,626
2,968,948
Deferred tax liabilities
74,368
50,017
Operating lease liabilities
116,841
84,029
Other liabilities
110,505
133,412
Total liabilities
2,185,201
4,544,591
Redeemable noncontrolling interests
65,388
55,315
Equity: Common stock
890
880
Additional paid-in capital
2,636,350
2,580,327
Accumulated other comprehensive loss
-
(371,365
)
Accumulated deficit
(119,751
)
(310,386
)
Total equity
2,517,489
1,899,456
Total liabilities and equity
$
4,768,078
$
6,499,362
Acadia Healthcare Company, Inc. Condensed
Consolidated Statements of Cash Flows (Unaudited)
Year Ended December
31,
2021
2020
(In thousands) Operating
activities: Net income (loss)
$
195,562
$
(669,199
)
Adjustments to reconcile net income (loss) to net cash provided
by continuing operating activities: Depreciation and
amortization
106,717
95,256
Amortization of debt issuance costs
4,071
12,636
Equity-based compensation expense
37,530
22,504
Deferred income taxes
11,772
53,108
Loss from discontinued operations, net of taxes
12,641
812,390
Debt extinguishment costs
24,650
7,233
Loss on impairment
24,293
4,751
Other
491
1,041
Change in operating assets and liabilities, net of effect of
acquisitions: Accounts receivable, net
2,448
15,340
Other current assets
1,968
9,675
Other assets
(10,770
)
1,519
Accounts payable and other accrued liabilities
6,164
41,910
Accrued salaries and benefits
9,755
(10,001
)
Other liabilities
(14,940
)
18,082
Government relief funds
(38,128
)
86,599
Net cash provided by continuing operating activities
374,224
502,844
Net cash provided by discontinued operating activities
253
155,963
Net cash provided by operating activities
374,477
658,807
Investing activities: Cash paid for
acquisitions, net of cash acquired
(139,015
)
-
Cash paid for capital expenditures
(244,811
)
(224,964
)
Proceeds from U.K. Sale
1,511,020
-
Settlement of foreign currency derivatives
(84,795
)
-
Proceeds from sale of property and equipment
3,493
92
Cash paid for purchase of finance lease
(31,401
)
-
Other
3,142
(13,365
)
Net cash provided by (used in) continuing investing
activities
1,017,633
(238,237
)
Net cash used in discontinued investing activities
-
(43,602
)
Net cash provided by (used in) investing activities
1,017,633
(281,839
)
Financing activities: Borrowings on long-term
debt
425,000
925,000
Borrowings on revolving credit facility
500,000
100,000
Principal payments on revolving credit facility
(330,000
)
(100,000
)
Principal payments on long-term debt
(7,969
)
(41,291
)
Repayment of long-term debt
(2,227,935
)
(909,785
)
Payment of debt issuance costs
(7,964
)
(18,295
)
Common stock withheld for minimum statutory taxes, net
16,295
184
Distributions to noncontrolling interests
(1,588
)
(916
)
Other
(6,900
)
(3,146
)
Net cash used in continuing financing activities
(1,641,061
)
(48,249
)
Net cash used in discontinued financing activities
-
(3,250
)
Net cash used in financing activities
(1,641,061
)
(51,499
)
Effect of exchange rate changes on cash
4,067
4,087
Net (decrease) increase in cash and cash equivalents,
including cash classified within current assets held
for sale
(244,884
)
329,556
Less: cash classified within current assets held for sale
-
(75,051
)
Net (decrease) increase in cash and cash equivalents
(244,884
)
254,505
Cash and cash equivalents at beginning of the period
378,697
124,192
Cash and cash equivalents at end of the period
$
133,813
$
378,697
Effect of acquisitions: Assets acquired,
excluding cash
$
176,365
$
20,200
Liabilities assumed
(37,350
)
(53
)
Redeemable noncontrolling interest resulting from an acquisition
-
(20,147
)
Cash paid for acquisitions, net of cash acquired
$
139,015
$
-
Acadia Healthcare Company,
Inc.
Operating Statistics
(Unaudited, Revenue in
thousands)
Three Months Ended December
31,
Year Ended December
31,
2021
2020
% Change
2021
2020
% Change
U.S. Same Facility Results (1) Revenue
$
591,635
$
534,533
10.7
%
$
2,300,024
$
2,074,456
10.9
%
Patient Days
684,984
666,906
2.7
%
2,760,181
2,646,173
4.3
%
Admissions
42,414
42,574
-0.4
%
177,791
171,808
3.5
%
Average Length of Stay (2)
16.1
15.7
3.1
%
15.5
15.4
0.8
%
Revenue per Patient Day
$
864
$
802
7.8
%
$
833
$
784
6.3
%
Adjusted EBITDA margin (3)
31.3
%
33.8
%
-250 bps
29.1
%
27.6
%
150 bps Adjusted EBITDA margin excluding income from provider
relief fund
28.3
%
27.7
%
60 bps
28.3
%
26.1
%
220 bps U.S. Facility Results Revenue
$
593,480
$
541,276
9.6
%
$
2,314,394
$
2,089,929
10.7
%
Patient Days
686,584
671,840
2.2
%
2,775,061
2,667,762
4.0
%
Admissions
42,691
42,639
0.1
%
179,075
172,277
3.9
%
Average Length of Stay (2)
16.1
15.8
2.1
%
15.5
15.5
0.1
%
Revenue per Patient Day
$
864
$
806
7.3
%
$
834
$
783
6.5
%
Adjusted EBITDA margin (3)
30.5
%
33.5
%
-300 bps
28.4
%
27.5
%
90 bps Adjusted EBITDA margin excluding income from provider relief
fund
27.5
%
27.4
%
10 bps
27.6
%
25.9
%
170 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. (3) For the three months and
year ended December 31, 2021, includes income from provider relief
fund of $17.9 million. For the three months and year ended
December 31, 2020, includes income from provider relief fund of
$32.8 million.
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,
2021
2020
2021
2020
(in thousands)
Net income (loss) attributable to Acadia Healthcare Company,
Inc.
$
70,278
$
(783,672
)
$
190,635
$
(672,132
)
Net income attributable to noncontrolling interests
1,241
1,131
4,927
2,933
Loss from discontinued operations, net of taxes
-
842,194
12,641
812,390
Provision for income taxes
24,609
16,432
67,557
40,606
Interest expense, net
15,573
39,707
76,993
158,105
Depreciation and amortization
28,368
24,958
106,717
95,256
EBITDA
140,069
140,750
459,470
437,158
Adjustments: Equity-based compensation expense (a)
12,542
6,246
37,530
22,504
Transaction-related expenses (b)
3,458
2,162
12,778
11,720
Debt extinguishment costs (c)
-
3,962
24,650
7,233
Loss on impairment (d)
-
4,751
24,293
4,751
Adjusted EBITDA
$
156,069
$
157,871
$
558,721
$
483,366
Adjusted EBITDA margin
26.3
%
29.2
%
24.1
%
23.1
%
Adjusted EBITDA excluding income from provider relief
fund
$
138,169
$
125,052
$
540,821
$
450,547
Adjusted EBITDA margin excluding income from provider relief
fund
23.3
%
23.1
%
23.4
%
21.6
%
See footnotes on page 13.
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 Ended December
31, 2021
Year Ended December 31,
2021
(in thousands, except per
share amounts)
Net income (loss) attributable to Acadia Healthcare Company,
Inc.
$
70,278
$
190,635
Loss from discontinued operations, net of taxes
-
12,641
Adjustments to income: Transaction-related expenses
(b)
3,458
12,778
Debt extinguishment costs (c)
-
24,650
Loss on impairment (d)
-
24,293
Provision for income taxes
24,609
67,557
Adjusted income from continuing operations before income taxes
attributable to Acadia Healthcare Company, Inc.
98,345
332,554
Income tax effect of adjustments to income (e)
24,791
87,500
Adjusted income from continuing operations attributable to Acadia
Healthcare Company, Inc.
73,554
245,054
Income from provider relief fund, net of taxes
(13,044
)
(13,044
)
Adjusted income from continuing operations attributable to Acadia
Healthcare Company, Inc. excluding income from provider
relief fund
$
60,510
$
232,010
Weighted-average shares outstanding - diluted
91,038
90,793
Adjusted income from continuing operations attributable to
Acadia Healthcare Company, Inc. per diluted share
$
0.81
$
2.70
Income from provider relief fund, net of taxes, per diluted share
(0.14
)
(0.14
)
Adjusted income from continuing operations attributable to Acadia
Healthcare Company, Inc., excluding income from
provider relief fund, per diluted share
$
0.67
$
2.56
Three Months Ended December
31, 2020
Year Ended December 31,
2020
(in thousands, except per
share amounts)
Net income (loss) attributable to Acadia Healthcare Company, Inc.
$
(783,672
)
$
(672,132
)
Loss from discontinued operations, net of taxes
842,194
812,390
Adjustments to income: Transaction-related expenses
(b)
2,162
11,720
Debt extinguishment costs (c)
3,962
7,233
Loss on impairment (d)
4,751
4,751
Provision for income taxes
16,432
40,606
Adjusted income from continuing operations before income taxes
attributable to Acadia Healthcare Company, Inc.
85,829
204,568
Adjusted income from discontinued operations before income taxes
31,483
86,258
Adjusted income before income taxes attributable to Acadia
Healthcare Company, Inc.
117,312
290,826
Income tax effect of adjustments to income (e)
16,124
44,496
Adjusted income attributable to Acadia Healthcare Company, Inc.
101,188
246,330
Income from provider relief fund, net of taxes
(23,915
)
(23,915
)
Adjusted income attributable to Acadia Healthcare Company, Inc.
excluding income from provider relief fund
$
77,273
$
222,415
Weighted-average shares outstanding - diluted
89,233
88,595
Adjusted income attributable to Acadia Healthcare Company,
Inc. per diluted share (4)
$
1.13
$
2.78
Income from provider relief fund, net of taxes, per diluted share
(0.27
)
(0.27
)
Adjusted income attributable to Acadia Healthcare Company, Inc.
excluding income from provider relief fund, per diluted
share
$
0.86
$
2.51
(4) For the three months and year ended December 31, 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 months and year ended December
31, 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 results reflect consolidated results
inclusive of discontinued operations, and 2021 results reflect only
continuing operations. See footnotes on page 13.
Acadia Healthcare Company,
Inc.
Discontinued Operations
Supplemental Financial Information
(Unaudited)
Statements of Discontinued
Operations
Three Months
Ended December 31,
Year Ended
December 31,
2021
2020
2021
2020
(in thousands)
Revenue
$
-
$
301,996
$
62,520
$
1,119,768
Salaries, wages and benefits
-
166,620
35,937
632,134
Professional fees
-
35,027
6,815
127,291
Supplies
-
10,011
2,217
38,285
Rents and leases
-
12,890
2,509
47,748
Other operating expenses
-
27,852
6,682
113,534
Depreciation and amortization
-
19,196
-
74,935
Interest expense, net
-
(1,083
)
10
(417
)
Loss on sale
(764
)
867,324
13,490
867,324
Loss on impairment
-
-
-
20,239
Transaction-related expenses
-
984
6,265
8,719
Total expenses
(764
)
1,138,821
73,925
1,929,792
Income (loss) from discontinued operations before income taxes
764
(836,825
)
(11,405
)
(810,024
)
Provision for (benefit from) income taxes
764
5,369
1,236
2,366
Income (loss) from discontinued operations, net of taxes
-
(842,194
)
(12,641
)
(812,390
)
Reconciliation of Income
(Loss) from Discontinued Operations to Adjusted Income from
Discontinued Operations before Income Taxes
Three Months
Ended December 31,
Year Ended
December 31,
2021
2020
2021
2020
(in thousands) Income (loss) from discontinued
operations, net of taxes
$
-
$
(842,194
)
$
(12,641
)
$
(812,390
)
Adjustments to income: Transaction-related expenses
(b)
-
984
6,265
8,719
Loss on sale (f)
(764
)
867,324
13,490
867,324
Loss on impairment (d)
-
-
-
20,239
Provision for (benefit from) income taxes
764
5,369
1,236
2,366
Adjusted income from discontinued operations before income taxes
$
-
$
31,483
$
8,350
$
86,258
See footnotes on page 13.
Acadia Healthcare Company,
Inc. Footnotes We have included certain financial
measures in this press release, including those listed below, which
are “non-GAAP financial measures” as defined under the rules and
regulations promulgated by the SEC. These non-GAAP financial
measures include, and are defined, as follows: •
EBITDA: net income (loss)
attributable to Acadia Healthcare Company, Inc. adjusted for net
income attributable to noncontrolling interests, loss from
discontinued operations, net of taxes, provision for income taxes,
net interest expense and depreciation and amortization.
•
Adjusted EBITDA: EBITDA
adjusted for equity-based compensation expense, transaction-related
expenses, debt extinguishment costs and loss on impairment.
•
Adjusted EBITDA excluding
income from provider relief fund: Adjusted EBITDA adjusted
for income from provider relief fund. •
Adjusted EBITDA margin: Adjusted
EBITDA divided by revenue. •
Adjusted EBITDA margin excluding income from provider
relief fund: Adjusted EBITDA excluding income from provider
relief fund divided by revenue. •
Adjusted income from continuing operations before income
taxes attributable to Acadia Healthcare Company, Inc.: net
income (loss) 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. •
Adjusted income from continuing operations
attributable to Acadia Healthcare Company, Inc.: Adjusted
income from continuing operations before income taxes attributable
to Acadia Healthcare Company, Inc. adjusted for the income tax
effect of adjustments to income. •
Adjusted income from continuing operations attributable
to Acadia Healthcare Company, Inc. excluding income from provider
relief fund: Adjusted income from continuing operations
attributable to Acadia Healthcare Company, Inc. adjusted for income
from provider relief fund. •
Adjusted income from discontinued operations before
income taxes: Loss from discontinued operations, net of
taxes, adjusted for transaction-related expenses, loss on sale,
loss on impairment and provision for (benefit from) income taxes.
•
Adjusted income attributable
to Acadia Healthcare Company, Inc.: 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. •
Adjusted income attributable to Acadia Healthcare
Company, Inc. excluding income from provider relief fund:
Adjusted income from continuing operations attributable to Acadia
Healthcare Company, Inc. adjusted for income from provider relief
fund. 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.
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) 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, during the second
quarter of 2020 in connection with the redemption of the 6.125%
senior notes and 5.125% senior notes and during the fourth quarter
of 2020 the issuance of the 5.000% senior notes in October 2020 and
the fourth repricing facilities amendment to the amended and
restated credit facility in November 2020. (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. For 2020, represents
non-cash long-lived asset impairment charges related to certain
facility closures. (e) Represents the income tax effect of
adjustments to income based on tax rates of 25.2% and 13.7% for the
three months ended December 31, 2021 and 2020, respectively, and
26.3% and 15.3% for the year ended December 31, 2021 and 2020,
respectively. (f) For 2020, represents the loss on sale,
including a non-cash goodwill impairment charge of $356.2 million,
recorded in connection with the U.K. sale. For 2021,
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220228005992/en/
Gretchen Hommrich Vice President, Investor Relations (615)
861-6000
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