Acadia Healthcare Reports Fourth Quarter Adjusted EPS of $0.19

Before you go, we thought you'd like these...
Before you go close icon

Acadia Healthcare Reports Fourth Quarter Adjusted EPS of $0.19

Revenue Increases 52% Including 10.9% Growth in Same Facility Revenue

Reports Full-year 2012 Adjusted EPS of $0.66


Establishes Earnings Guidance for 2013 in Range of $0.96 to $1.00

FRANKLIN, Tenn.--(BUSINESS WIRE)-- Acadia Healthcare Company, Inc. (NAS: ACHC) today announced financial results for the fourth quarter and year ended December 31, 2012. Revenue increased 51.6% for the fourth quarter of 2012 to $114.3 million from $75.4 million for the fourth quarter of 2011. Income from continuing operations was $4.5 million, or $0.10 per diluted share, for the fourth quarter of 2012 compared with a loss from continuing operations of $14.8 million, or $0.67 per share, for the fourth quarter of 2011. Adjusted income from continuing operations increased 67.1% to $8.1 million for the fourth quarter of 2012 from $4.8 million for the fourth quarter of 2011. The adjusted results for the fourth quarter of 2012 exclude transaction related expenses of $6.0 million and for the fourth quarter of 2011 exclude transaction related expenses and sponsor management fees of $31.2 million. Adjusted income from continuing operations per diluted share decreased 13.6% to $0.19 for the fourth quarter of 2012 from $0.22 for the fourth quarter of 2011, which reflected a 97.5% increase in weighted average shares outstanding for the comparable quarters, primarily due to Acadia's public equity offerings in December 2011, May 2012 and December 2012. A reconciliation of all GAAP and non-GAAP financial results in this release is on pages 8 and 9.

Revenue for the year ended December 31, 2012 was $407.5 million, an 88.2% increase from $216.5 million for 2011. Income from continuing operations was $20.5 million, or $0.53 per diluted share, for 2012, compared with a loss from continuing operations of $33.2 million, or $1.77 per diluted share, for 2011. Adjusted income from continuing operations for 2012 was $25.6 million, or $0.66 per diluted share, excluding transaction-related expenses totaling $8.1 million, compared with $5.0 million, or $0.27 per diluted share, excluding transaction-related expenses and sponsor management fees totaling $42.9 million, for 2011.

"Acadia produced strong growth in revenue and profit margins for the fourth quarter of 2012," commented Joey Jacobs, Chairman and Chief Executive Officer of Acadia. "Our revenue growth was driven by the expansion of inpatient beds during the year through the addition of new facilities and through the addition of approximately 300 beds to existing facilities. We completed 2012 with 42 facilities and over 3,100 beds compared with approximately 2,000 beds in 29 facilities at the end of 2011. This growth included the acquisition of eight facilities with over 600 beds completed on December 31, 2012.

"Double-digit same facility revenue growth of 10.9% for the fourth quarter reflected the addition of beds to existing facilities and the impact of other programs we implement in each facility to generate revenue growth, which resulted in an 8.9% increase in patient days for the quarter. The growth in patient days, combined with a 1.8% rise in revenue per patient day, drove increased operating leverage for the quarter. This leverage, together with our focus on productivity and efficiency, produced a same facility EBITDA margin of 26.9% for the fourth quarter, a 690 basis point improvement over the fourth quarter of 2011. Adjusted consolidated EBITDA more than doubled for the comparable quarters to $24.3 million, or 21.3% of consolidated revenue, for the fourth quarter of 2012 from $11.4 million, or 15.1% of consolidated revenue, for the fourth quarter of 2011.

"Acadia completed 2012 well positioned to fund its growth strategies for 2013. Net cash flow from continuing operations was $10.6 million for the fourth quarter and $34.3 million for 2012, while capital expenditures for the year totaled $27.6 million. In addition, we completed 2012 with cash and cash equivalents of $49.4 million and availability under our revolving credit facility of approximately $100 million. The Company's ratio of total debt to trailing 12 months adjusted EBITDA at December 31, 2012 was 3.9."

Acadia today established its guidance for 2013 earnings per diluted share in a range of $0.96 to $1.00 reflecting growth of 45% to 52% over 2012. In addition, Acadia's guidance for earnings per diluted share for the first quarter of 2013 is $0.19 to $0.20. The Company's guidance does not include the impact of any future acquisitions.

Acadia will hold a conference call to discuss its second quarter financial results at 9:00 a.m. Eastern Time on Thursday, February 21, 2013. A live webcast of the conference call will be available at www.acadiahealthcare.com in the "Investors" section of the website or at www.earnings.com. The webcast of the conference call will be available through March 7, 2013.

Risk Factors

This news release contains forward-looking statements. Generally words such as "may," "will," "should," "could," "anticipate," "expect," "intend," "estimate," "plan," "continue," and "believe" or the negative of or other variation on these and other similar expressions identify forward-looking statements. These forward-looking statements are made only as of the date of this news release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are based on current expectations and involve risks and uncertainties and our future results could differ significantly from those expressed or implied by our forward-looking statements. Factors that may cause actual results to differ materially include, without limitation, (i) Acadia's ability to complete acquisitions and successfully integrate the operations of the acquired facilities; (ii) Acadia's ability to add beds, expand services, enhance marketing programs and improve efficiencies at its facilities; (iii) potential reductions in payments received by Acadia from the government and third-party payors; (iv) 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 (v) potential operating difficulties, client preferences, changes in competition and general economic or industry conditions that may prevent Acadia from realizing the expected benefits of its business strategy. These factors and others are more fully described in Acadia's periodic reports and other filings with the SEC.

About Acadia

Acadia is a provider of inpatient behavioral healthcare services. Acadia operates a network of 44 behavioral health facilities with over 3,400 licensed beds in 21 states. Acadia provides psychiatric and chemical dependency services to its patients in a variety of settings, including inpatient psychiatric hospitals, residential treatment centers, outpatient clinics and therapeutic school-based programs.

 
Acadia Healthcare Company, Inc.
Consolidated Statements of Operations
(Unaudited)
        

Three Months Ended
December 31,

Year Ended
December 31,

2012201120122011
(in thousands, except per share amounts)
 
Revenue before provision for doubtful accounts$115,212$76,907$413,850$219,704
Provision for doubtful accounts (960) (1,552) (6,389) (3,206)
Revenue114,25275,355407,461216,498
 

Salaries, wages and benefits (including equity-based compensation expense of $576, $(2,523), $2,267 and $17,320, respectively)

66,04944,451239,639152,609
Professional fees5,4983,87819,0198,896
Supplies5,3483,70419,49611,349
Rents and leases1,5942,0007,8385,576
Other operating expenses12,0097,41142,77720,171
Depreciation and amortization2,6501,1707,9824,278
Interest expense, net7,5835,04829,7699,191
Sponsor management fees-212-1,347
Transaction-related expenses 6,015  30,952  8,112  41,547 
Total expenses 106,746  98,826  374,632  254,964 
Income (loss) from continuing operations before income taxes7,506(23,471)32,829(38,466)
Provision for (benefit from) income taxes 3,018  (8,698) 12,325  (5,272)
Income (loss) from continuing operations4,488(14,773)20,504(33,194)
Loss from discontinued operations, net of income taxes (123) (1,136) (101) (1,698)
Net income (loss)$4,365 $(15,909)$20,403 $(34,892)
 
Basic earnings (loss) per share:
Income (loss) from continuing operations$0.10$(0.67)$0.53$(1.77)
Loss from discontinued operations -  (0.05) -  (0.09)
Net income (loss)$0.10 $(0.72)$0.53 $(1.86)
 
Diluted earnings (loss) per share:
Income (loss) from continuing operations$0.10$(0.67)$0.53$(1.77)
Loss from discontinued operations -  (0.05) -  (0.09)
Net income (loss)$0.10 $(0.72)$0.53 $(1.86)
 
Weighted-average shares outstanding:
Basic43,43622,12838,47718,757
Diluted43,70122,12838,69618,757
 

 
Acadia Healthcare Company, Inc.
Consolidated Balance Sheets
(Unaudited)
    
December 31,
20122011
(In thousands)
 
ASSETS
Current assets:
Cash and cash equivalents$49,399$61,118

Accounts receivable, net of allowances for doubtful accounts of $7,484 and $2,424, respectively

63,87035,127
Deferred tax assets11,3806,239
Other current assets 16,332  10,121 
Total current assets140,981112,605
Property and equipment, net236,94282,972
Goodwill557,402186,815
Intangible assets, net15,9888,232
Deferred tax asset - noncurrent-6,006
Other assets 32,100  16,366 
Total assets$983,413 $412,996 
 
 
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt$7,680$6,750
Accounts payable19,0818,642
Accrued salaries and benefits28,74916,195
Other accrued liabilities 16,341  9,081 
Total current liabilities71,85140,668
Long-term debt465,638270,709
Deferred tax liabilities - noncurrent998-
Other liabilities 12,376  5,254 
Total liabilities550,863316,631
Equity:
Common stock499321
Additional paid-in capital456,228140,624
Accumulated deficit (24,177) (44,580)
Total equity 432,550  96,365 
Total liabilities and equity$983,413 $412,996 
 

      
Acadia Healthcare Company, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
 
Year Ended December 31,
201220112010
(In thousands)
 
Operating activities:
Net income (loss)$20,403$(34,892)$6,210

Adjustments to reconcile net income (loss) to net cash provided by (used in) continuing operating activities:

Depreciation and amortization7,9824,278976
Provision for doubtful accounts6,3893,2062,239
Amortization of debt issuance costs2,5071,271-
Equity-based compensation expense2,26717,320-
Deferred income tax expense (benefit)2,847(6,442)(145)
Other(3)(168)-
Loss from discontinued operations, net of taxes1011,698471
Change in operating assets and liabilities, net of effect of acquisitions:
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Gift Finder Promo
More to Explore
Tue, Dec 06
Set Your Location
City, State, or Zip