Acadia Healthcare Reports Second Quarter EPS of $0.67 and Adjusted EPS of $0.70
Jul. 30, 2018
FRANKLIN, Tenn.--(BUSINESS WIRE)--Jul 30, 2018--Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced financial results for the second quarter and six months ended June 30, 2018. Revenue was $765.7 million for the quarter, up 7.0% from $715.9 million for the second quarter of 2017. Net income attributable to Acadia stockholders for the second quarter of 2018 was $58.8 million, or $0.67 per diluted share, compared with $49.6 million, or $0.57 per diluted share, for the second quarter of 2017. Adjusted income attributable to Acadia stockholders per diluted share (“adjusted EPS”) was $0.70 for the second quarter of 2018, a 6.1% increase from $0.66 for the second quarter of 2017, which excludes transaction-related expenses of $2.9 million and $9.1 million for the second quarter of 2018 and 2017, respectively, as well as debt extinguishment costs of $0.8 million for the second quarter last year. A reconciliation of all non-GAAP financial results in this release appears beginning on page 7.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, remarked, “We are pleased to report that growth in Acadia’s revenue and adjusted EPS met our expectations for the second quarter. Our revenue growth was primarily driven by the addition of nearly 900 beds during the 12 months ended June 30, 2018. We added 155 of these beds during the second quarter, including 67 beds to existing facilities in the U.S. and U.K. and an 88-bed de novo facility through our joint-venture with Erlanger Health System. For the full year 2018, we expect to add more than 800 beds to existing and new facilities.”
For the second quarter of 2018, Acadia’s total same facility revenue increased 5.2% compared with the second quarter of 2017, including a 1.7% increase in patient days and a 3.4% increase in revenue per patient day. Total same facility EBITDA margin declined 60 basis points to 25.7%. U.S. same facility revenue increased 5.0%, including a 1.9% increase in patient days and a 3.1% increase in revenue per patient day. U.S. same facility EBITDA margin declined 30 basis points to 28.1%. U.K. same facility revenue grew 5.6% for the second quarter of 2018 from the second quarter last year, including a 1.6% increase in patient days and a 3.9% increase in revenue per patient day. U.K. same facility EBITDA margin declined 110 basis points to 21.3%.
Acadia today updated its financial guidance for 2018 to reflect a lower exchange rate in the second half of the year as well as higher interest rates. The Company now assumes an exchange rate of $1.30 per British Pound Sterling and interest expense to be approximately $95 million for the second half of the year. The updated guidance is as follows:Revenue for 2018 in a range of $3.02 billion to $3.06 billion; Adjusted EBITDA for 2018 in a range of $632 million to $639 million; and Adjusted earnings per diluted share for 2018 in a range of $2.52 to $2.56.
The Company’s guidance does not include the impact of any future acquisitions or transaction-related expenses.
EBITDA is defined as net income adjusted for net income (loss) attributable to noncontrolling interests, provision for income taxes, net interest expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for equity-based compensation expense, transaction-related expenses and debt extinguishment costs. Adjusted income is defined as net income adjusted for transaction-related expenses, tax reform impact, debt extinguishment costs and income tax effect of adjustments to income.
Acadia will hold a conference call to discuss its first quarter financial results at 9:00 a.m. Eastern Time on Tuesday, July 31, 2018. A live webcast of the conference call will be available at www.acadiahealthare.com in the “Investors” section of the website. The webcast of the conference call will be available through August 14, 2018.
This news release contains forward-looking statements. Generally, words such as “may,” “will,” “should,” “could,” “anticipate,” “expect,” “intend,” “estimate,” “plan,” “continue,” and “believe” or the negative of or other variation on these and other similar expressions identify forward-looking statements. These forward-looking statements are made only as of the date of this news release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are based on current expectations and involve risks and uncertainties and our future results could differ significantly from those expressed or implied by our forward-looking statements. Factors that may cause actual results to differ materially include, without limitation, (i) potential difficulties operating our business in light of political and economic instability in the U.K. and globally relating to the U.K.’s departure from the European Union; (ii) the impact of fluctuations in foreign exchange rates, including the devaluation of the British Pound Sterling (GBP) relative to the U.S. Dollar (USD); (iii) Acadia’s ability to complete acquisitions and successfully integrate the operations of acquired facilities; (iv) Acadia’s ability to add beds, expand services, enhance marketing programs and improve efficiencies at its facilities; (v) potential reductions in payments received by Acadia from government and third-party payors; (vi) the occurrence of patient incidents, governmental investigations 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 joint venture, de novo and other business strategies. These factors and others are more fully described in Acadia’s periodic reports and other filings with the SEC.
Acadia is a provider of behavioral healthcare services. At June 30, 2018, Acadia operated a network of 585 behavioral healthcare facilities with approximately 17,900 beds in 40 states, the United Kingdom and Puerto Rico. Acadia provides behavioral health and addiction services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics.
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