Adds Approximately 200 Beds in Two New States
FRANKLIN, Tenn.--(BUSINESS WIRE)--Jan. 6, 2014--
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced the
acquisition of inpatient psychiatric facilities in Seattle, Washington,
and Riverside, California, expanding the Company’s geographic presence
to two new states. Effective, December 1, 2013, the Company completed
the purchase of an acute inpatient psychiatric facility from Highline
Medical Center, a nonprofit healthcare system headquartered in Seattle.
The facility, which was purchased for $20.0 million in cash, has a
certificate of need for 135 beds and currently operates 63 inpatient
psychiatric beds. Acadia is adding 22 inpatient psychiatric beds in a
unit that had not been in use and will transition an additional 50 beds
to inpatient psychiatric beds from other uses upon the expiration of
third-party provider leases at the end of 2014.
Acadia also purchased the Riverside Center for Behavioral Medicine, a
68-bed acute inpatient psychiatric facility in Riverside, California.
Consideration for this purchase, which was effective January 1, 2014,
was $10.5 million in cash.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, commented,
“We are pleased to complete a successful 2013 and begin 2014 on a strong
note with two acquisitions that bring high quality facilities and
excellent medical staffs to Acadia. The purchase of the Seattle facility
represented our seventh acquisition for 2013. Including this
transaction, we added approximately 1,000 beds during 2013, through both
acquisitions and the development of new beds in existing or de novo
facilities. We expect this transaction and the purchase of the facility
in Riverside to be accretive to our financial results for 2014. They
further validate the ongoing opportunities we see for additional
transactions in our highly fragmented industry, as well as the growing
potential for transactions with nonprofit healthcare providers.
“We note that, because of the customary Medicare certification process,
the Seattle facility received minimal revenues for the services provided
to its psychiatric patients during December. In addition, we opened two
de novo facilities in October, which, as expected, also produced
expenses greater than revenues during their certification process and as
they ramped their patient census. We expect to produce adjusted income
from continuing operations per diluted share in a range of $0.28 to
$0.29 in the fourth quarter as our strong consolidated operating
performance should offset the short-term impact of these facilities on
our profitability, and as a result, we affirm our established guidance
for 2013 adjusted income from continuing operations in a range of $1.06
to $1.07 per diluted share.”
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 52 behavioral healthcare facilities with more than
4,200 licensed beds in 24 states and Puerto Rico. 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.
Source: Acadia Healthcare Company, Inc.
Acadia Healthcare Company, Inc.
Brent Turner, 615-861-6000
President
