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Revenue Grows 8.2% Including Same Facility Revenue Growth of 7.4%
Company Completed Debt Refinancing Actions in
First Quarter 2021 Results
The Company reported revenue of
The Company’s income tax provision includes a tax benefit of
For the first quarter of 2021, Acadia’s same facility revenue increased 7.4% compared with the first quarter of 2020, including an increase in revenue per patient day of 4.5% and an increase in patient days of 2.7%. Same facility adjusted EBITDA margin improved 280 basis points to 26.5%.
Strategic Investments in Long-Term Growth
“During the first quarter of 2021, we continued to make investments in key strategic areas that will support sustained, long-term growth across Acadia’s service lines. Facility expansions remain a primary focus for our growth strategy. Accordingly, we added 92 beds to our operations in the first quarter to meet the growing demand for services across the
“Following the end of the first quarter, we executed on another priority for our continued growth by completing construction of a wholly owned de novo facility,
“Establishing joint venture partnerships with healthcare delivery systems across the country remains an important pathway for growth for Acadia, and we have been fortunate to partner with many leading providers in attractive markets. In March, we were pleased to announce a planned joint venture with
“During the first quarter, we also signed a definitive agreement to acquire Vallejo Behavioral, a 61-bed psychiatric hospital in
“We believe there are significant opportunities to leverage our strong financial position and execute our growth initiatives by extending our market reach through bed expansions, wholly owned de novo facilities, strategic joint ventures and acquisitions,” added Osteen.
Debt Refinancing, Cash and Liquidity
In
($ in millions) |
2021 |
|
2020 |
||
New Credit Facility: |
|
|
|
|
|
Term Loan A |
$ |
425 |
|
$ |
— |
Revolving Line of Credit |
|
160 |
|
|
— |
Prior Credit Facility: |
|
|
|
|
|
Senior Secured Term A Loan |
|
— |
|
|
312 |
Senior Secured Term B Loans |
|
— |
|
|
873 |
Senior Secured Revolving Line of Credit |
|
— |
|
|
— |
5.625% Senior Notes due 2023 |
|
— |
|
|
650 |
6.500% Senior Notes due 2024 |
|
— |
|
|
390 |
5.500% Senior Notes due 2028 |
|
450 |
|
|
450 |
5.000% Senior Notes due 2029 |
|
475 |
|
|
475 |
Other long-term debt |
|
3 |
|
|
4 |
Total |
$ |
1,513 |
|
$ |
3,154 |
As of
Osteen stated, “During the first quarter, we met our stated financial objective to refinance our outstanding debt as planned and improve Acadia’s leverage profile. As a result, our balance sheet is very strong with ample liquidity and capital to pursue our growth initiatives and continue to make strategic investments in our business.”
Financial Guidance
Acadia today increased the Company’s financial guidance for 2021, as follows:
-
Revenue in a range of
$2.24 billion to$2.29 billion ; -
Adjusted EBITDA in a range of
$500 million to$530 million ; -
Adjusted earnings per diluted share in a range of
$2.30 to$2.55 ; and -
Interest expense of approximately
$17 million per quarter for the remainder of 2021.
The Company’s guidance does not include discontinued operations or the impact of any future acquisitions, divestitures or transaction-related expenses.
Looking Ahead
Osteen concluded, “We are pleased with the trends in our business and look forward to the opportunities ahead for Acadia in 2021. While there are uncertainties surrounding the COVID-19 pandemic, we expect the effects of the prolonged isolation, the social and economic disruptions, and grief over the loss of lives this past year will remain a challenge for many individuals. As a result, we expect to see continued strong demand for our services in 2021 and beyond. More than ever, we are dedicated to our mission, and we understand the importance of our role as a leading provider of critical behavioral healthcare services. We believe Acadia is well positioned to address the needs of those seeking treatment as we continue to expand our network of treatment facilities and service offerings with a shared commitment across our operations to deliver the highest quality of patient care.”
Conference Call
Acadia will hold a conference call to discuss its first quarter financial results at
About Acadia
Acadia is a leading provider of behavioral healthcare services across
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
Condensed Consolidated Statements of Operations | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
||||||||
2021 |
|
2020 |
||||||
(In thousands, except per share amounts) |
||||||||
Revenue |
$ |
551,199 |
|
$ |
509,217 |
|
||
Salaries, wages and benefits (including equity-based compensation expense of |
|
304,333 |
|
|
286,987 |
|
||
Professional fees |
|
31,617 |
|
|
31,051 |
|
||
Supplies |
|
21,322 |
|
|
22,196 |
|
||
Rents and leases |
|
9,412 |
|
|
9,117 |
|
||
Other operating expenses |
|
72,010 |
|
|
68,156 |
|
||
Depreciation and amortization |
|
24,894 |
|
|
22,835 |
|
||
Interest expense, net |
|
29,027 |
|
|
42,565 |
|
||
Debt extinguishment costs |
|
24,650 |
|
|
- |
|
||
Transaction-related expenses |
|
4,610 |
|
|
1,526 |
|
||
Total expenses |
|
521,875 |
|
|
484,433 |
|
||
Income from continuing operations before income taxes |
|
29,324 |
|
|
24,784 |
|
||
Provision for income taxes |
|
6,204 |
|
|
5,806 |
|
||
Income from continuing operations |
|
23,120 |
|
|
18,978 |
|
||
(Loss) income from discontinued operations, net of taxes |
|
(12,641 |
) |
|
15,089 |
|
||
Net income |
|
10,479 |
|
|
34,067 |
|
||
Net income attributable to noncontrolling interests |
|
(762 |
) |
|
(604 |
) |
||
Net income attributable to |
$ |
9,717 |
|
$ |
33,463 |
|
||
Basic earnings per share attributable to |
||||||||
Income from continuing operations attributable to |
$ |
0.25 |
|
$ |
0.21 |
|
||
(Loss) income from discontinued operations |
$ |
(0.14 |
) |
$ |
0.17 |
|
||
Net income attributable to |
$ |
0.11 |
|
$ |
0.38 |
|
||
Diluted earnings per share attributable to |
||||||||
Income from continuing operations attributable to |
$ |
0.25 |
|
$ |
0.21 |
|
||
(Loss) income from discontinued operations |
$ |
(0.14 |
) |
$ |
0.17 |
|
||
Net income attributable to |
$ |
0.11 |
|
$ |
0.38 |
|
||
Weighted-average shares outstanding: | ||||||||
Basic |
|
88,242 |
|
|
87,765 |
|
||
Diluted |
|
89,941 |
|
|
87,971 |
|
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
|
|
|
||||||
2021 |
|
2020 |
||||||
(In thousands) |
||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
178,915 |
|
$ |
378,697 |
|
||
Accounts receivable, net |
|
276,041 |
|
|
273,551 |
|
||
Other current assets |
|
73,269 |
|
|
61,332 |
|
||
Current assets held for sale |
|
- |
|
|
1,809,815 |
|
||
Total current assets |
|
528,225 |
|
|
2,523,395 |
|
||
Property and equipment, net |
|
1,654,732 |
|
|
1,622,896 |
|
||
|
2,105,264 |
|
|
2,105,264 |
|
|||
Intangible assets, net |
|
68,627 |
|
|
68,535 |
|
||
Deferred tax assets |
|
3,177 |
|
|
3,209 |
|
||
Operating lease right-of-use assets |
|
96,205 |
|
|
96,937 |
|
||
Other assets |
|
70,685 |
|
|
79,126 |
|
||
Total assets |
$ |
4,526,915 |
|
$ |
6,499,362 |
|
||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt |
$ |
11,911 |
|
$ |
153,478 |
|
||
Accounts payable |
|
91,505 |
|
|
87,815 |
|
||
Accrued salaries and benefits |
|
127,827 |
|
|
124,912 |
|
||
Current portion of operating lease liabilities |
|
18,696 |
|
|
18,916 |
|
||
Other accrued liabilities |
|
161,040 |
|
|
178,453 |
|
||
Derivative instrument liabilities |
|
- |
|
|
84,584 |
|
||
Current liabilities held for sale |
|
- |
|
|
660,027 |
|
||
Total current liabilities |
|
410,979 |
|
|
1,308,185 |
|
||
Long-term debt |
|
1,484,212 |
|
|
2,968,948 |
|
||
Deferred tax liabilities |
|
68,678 |
|
|
50,017 |
|
||
Operating lease liabilities |
|
83,731 |
|
|
84,029 |
|
||
Other liabilities |
|
124,616 |
|
|
133,412 |
|
||
Total liabilities |
|
2,172,216 |
|
|
4,544,591 |
|
||
Redeemable noncontrolling interests |
|
56,700 |
|
|
55,315 |
|
||
Equity: | ||||||||
Common stock |
|
887 |
|
|
880 |
|
||
Additional paid-in capital |
|
2,597,781 |
|
|
2,580,327 |
|
||
Accumulated other comprehensive loss |
|
- |
|
|
(371,365 |
) |
||
Accumulated deficit |
|
(300,669 |
) |
|
(310,386 |
) |
||
Total equity |
|
2,297,999 |
|
|
1,899,456 |
|
||
Total liabilities and equity |
$ |
4,526,915 |
|
$ |
6,499,362 |
|
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
(In thousands) |
||||||||
Operating activities: | ||||||||
Net income |
$ |
10,479 |
|
$ |
34,067 |
|
||
Adjustments to reconcile net income to net cash provided by continuing operating activities: | ||||||||
Depreciation and amortization |
|
24,894 |
|
|
22,835 |
|
||
Amortization of debt issuance costs |
|
1,646 |
|
|
3,050 |
|
||
Equity-based compensation expense |
|
7,034 |
|
|
4,979 |
|
||
Deferred income taxes |
|
3,962 |
|
|
11,264 |
|
||
Loss (income) from discontinued operations, net of taxes |
|
12,641 |
|
|
(15,089 |
) |
||
Debt extinguishment costs |
|
24,650 |
|
|
- |
|
||
Other |
|
1,737 |
|
|
(108 |
) |
||
Change in operating assets and liabilities: | ||||||||
Accounts receivable, net |
|
(2,490 |
) |
|
(4,214 |
) |
||
Other current assets |
|
75 |
|
|
(18,276 |
) |
||
Other assets |
|
(3,570 |
) |
|
(1,561 |
) |
||
Accounts payable and other accrued liabilities |
|
(3,979 |
) |
|
(19,115 |
) |
||
Accrued salaries and benefits |
|
2,915 |
|
|
(6,347 |
) |
||
Other liabilities |
|
(4,210 |
) |
|
5,101 |
|
||
Net cash provided by continuing operating activities |
|
75,784 |
|
|
16,586 |
|
||
Net cash provided by discontinued operating activities |
|
253 |
|
|
28,960 |
|
||
Net cash provided by operating activities |
|
76,037 |
|
|
45,546 |
|
||
Investing activities: | ||||||||
Cash paid for capital expenditures |
|
(58,682 |
) |
|
(58,427 |
) |
||
Proceeds from U. |
|
1,511,020 |
|
|
- |
|
||
Settlement of foreign currency derivatives |
|
(84,795 |
) |
|
- |
|
||
Proceeds from sale of property and equipment |
|
134 |
|
|
38 |
|
||
Other |
|
926 |
|
|
(1,671 |
) |
||
Net cash provided by (used in) continuing investing activities |
|
1,368,603 |
|
|
(60,060 |
) |
||
Net cash used in discontinued investing activities |
|
- |
|
|
(14,101 |
) |
||
Net cash provided by (used in) investing activities |
|
1,368,603 |
|
|
(74,161 |
) |
||
Financing activities: | ||||||||
Borrowings on long-term debt |
|
425,000 |
|
|
- |
|
||
Borrowings on revolving credit facility |
|
430,000 |
|
|
- |
|
||
Principal payments on revolving credit facility |
|
(270,000 |
) |
|
- |
|
||
Principal payments on long-term debt |
|
- |
|
|
(10,621 |
) |
||
Repayment of long-term debt |
|
(2,224,603 |
) |
|
- |
|
||
Payment of debt issuance costs |
|
(9,935 |
) |
|
- |
|
||
Common stock withheld for minimum statutory taxes, net |
|
8,219 |
|
|
(1,402 |
) |
||
Distributions to noncontrolling interests |
|
(377 |
) |
|
(264 |
) |
||
Other |
|
(6,793 |
) |
|
(423 |
) |
||
Net cash used in continuing financing activities |
|
(1,648,489 |
) |
|
(12,710 |
) |
||
Net cash used in discontinued financing activities |
|
- |
|
|
(720 |
) |
||
Net cash used in financing activities |
|
(1,648,489 |
) |
|
(13,430 |
) |
||
Effect of exchange rate changes on cash |
|
4,067 |
|
|
(1,143 |
) |
||
Net decrease in cash and cash equivalents, including cash classified within current assets held for sale |
|
(199,782 |
) |
|
(43,188 |
) |
||
Less: cash classified within current assets held for sale |
|
- |
|
|
(19,592 |
) |
||
Net decrease in cash and cash equivalents |
|
(199,782 |
) |
|
(62,780 |
) |
||
Cash and cash equivalents at beginning of the period |
|
378,697 |
|
|
124,192 |
|
||
Cash and cash equivalents at end of the period |
$ |
178,915 |
|
$ |
61,412 |
|
Operating Statistics | ||||||||||
(Unaudited, Revenue in thousands) | ||||||||||
Three Months Ended |
||||||||||
2021 |
2020 |
% Change |
||||||||
Revenue |
$ |
545,799 |
|
$ |
508,262 |
|
7.4% |
|||
|
669,725 |
|
|
651,931 |
|
2.7% |
||||
Admissions |
|
43,813 |
|
|
43,444 |
|
0.8% |
|||
Average Length of Stay (2) |
|
15.3 |
|
|
15.0 |
|
1.9% |
|||
Revenue per |
$ |
815 |
|
$ |
780 |
|
4.5% |
|||
Adjusted EBITDA margin |
|
26.5 |
% |
|
23.7 |
% |
280 bps |
|||
Revenue |
$ |
551,199 |
|
$ |
509,217 |
|
8.2% |
|||
|
674,491 |
|
|
658,002 |
|
2.5% |
||||
Admissions |
|
44,164 |
|
|
43,603 |
|
1.3% |
|||
Average Length of Stay (2) |
|
15.3 |
|
|
15.1 |
|
1.2% |
|||
Revenue per |
$ |
817 |
|
$ |
774 |
|
5.6% |
|||
Adjusted EBITDA margin |
|
26.0 |
% |
|
23.6 |
% |
240 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. |
Reconciliation of Net Income Attributable to |
||||||||
(Unaudited) | ||||||||
Three Months Ended |
||||||||
2021 |
|
2020 |
||||||
(in thousands) | ||||||||
Net income attributable to |
$ |
9,717 |
|
$ |
33,463 |
|
||
Net income attributable to noncontrolling interests |
|
762 |
|
|
604 |
|
||
Loss (income) from discontinued operations, net of taxes |
|
12,641 |
|
|
(15,089 |
) |
||
Provision for income taxes |
|
6,204 |
|
|
5,806 |
|
||
Interest expense, net |
|
29,027 |
|
|
42,565 |
|
||
Depreciation and amortization |
|
24,894 |
|
|
22,835 |
|
||
EBITDA |
|
83,245 |
|
|
90,184 |
|
||
Adjustments: | ||||||||
Equity-based compensation expense (a) |
|
7,034 |
|
|
4,979 |
|
||
Transaction-related expenses (b) |
|
4,610 |
|
|
1,526 |
|
||
Debt extinguishment costs (c) |
|
24,650 |
|
|
- |
|
||
Adjusted EBITDA |
$ |
119,539 |
|
$ |
96,689 |
|
||
Adjusted EBITDA margin |
|
21.7 |
% |
|
19.0 |
% |
||
See footnotes on page 12. |
Reconciliation of Adjusted Income Attributable to |
||||
Net Income Attributable to |
||||
(Unaudited) | ||||
Three Months Ended |
||||
(in thousands, except per share amounts) |
||||
Net income attributable to |
$ |
9,717 |
|
|
Loss from discontinued operations, net of taxes |
|
12,641 |
|
|
Adjustments to income: | ||||
Transaction-related expenses (b) |
|
4,610 |
|
|
Debt extinguishment costs (c) |
|
24,650 |
|
|
Provision for income taxes |
|
6,204 |
|
|
Adjusted income from continuing operations before income taxes attributable to |
|
57,822 |
|
|
Income tax effect of adjustments to income (d) |
|
15,618 |
|
|
Adjusted income from continuing operations attributable to |
$ |
42,204 |
|
|
Weighted-average shares outstanding - diluted |
|
89,941 |
|
|
Adjusted income from continuing operations attributable to |
$ |
0.47 |
|
|
Three Months Ended |
||||
(in thousands, except per share amounts) |
||||
Net income attributable to |
$ |
33,463 |
|
|
Income from discontinued operations, net of taxes |
|
(15,089 |
) |
|
Adjustments to income: | ||||
Transaction-related expenses (b) |
|
1,526 |
|
|
Provision for income taxes |
|
5,806 |
|
|
Adjusted income from continuing operations before income taxes attributable to |
|
25,706 |
|
|
Adjusted income from discontinued operations before income taxes |
|
17,095 |
|
|
Adjusted income before income taxes attributable to |
|
42,801 |
|
|
Income tax effect of adjustments to income (d) |
|
6,133 |
|
|
Adjusted income attributable to |
$ |
36,668 |
|
|
Weighted-average shares outstanding - diluted |
|
87,971 |
|
|
Adjusted income attributable to |
$ |
0.42 |
(3) |
|
(3) For the three months ended |
|||
See footnotes on page 12. |
Discontinued Operations Supplemental Financial Information | ||||||||
(Unaudited) | ||||||||
Statements of Discontinued Operations | ||||||||
Three Months Ended |
||||||||
2021 |
|
2020 |
||||||
(in thousands) |
||||||||
Revenue |
$ |
62,520 |
|
$ |
273,593 |
|
||
Salaries, wages and benefits |
|
35,937 |
|
|
153,329 |
|
||
Professional fees |
|
6,815 |
|
|
32,249 |
|
||
Supplies |
|
2,217 |
|
|
9,775 |
|
||
Rents and leases |
|
2,509 |
|
|
11,707 |
|
||
Other operating expenses |
|
6,682 |
|
|
30,373 |
|
||
Depreciation and amortization |
|
- |
|
|
18,845 |
|
||
Interest expense, net |
|
10 |
|
|
220 |
|
||
Loss on sale |
|
14,254 |
|
|
- |
|
||
Transaction-related expenses |
|
6,265 |
|
|
2,023 |
|
||
Total expenses |
|
74,689 |
|
|
258,521 |
|
||
(Loss) income from discontinued operations before income taxes |
|
(12,169 |
) |
|
15,072 |
|
||
Provision for (benefit from) income taxes |
|
472 |
|
|
(17 |
) |
||
(Loss) income from discontinued operations, net of taxes |
|
(12,641 |
) |
|
15,089 |
|
||
Reconciliation of (Loss) Income from Discontinued Operations to Adjusted Income from Discontinued Operations before Income Taxes |
||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
(in thousands) |
||||||||
(Loss) income from discontinued operations, net of taxes |
$ |
(12,641 |
) |
$ |
15,089 |
|
||
Adjustments to income: | ||||||||
Transaction-related expenses (b) |
|
6,265 |
|
|
2,023 |
|
||
Loss on sale (e) |
|
14,254 |
|
|
- |
|
||
Provision for (benefit from) income taxes |
|
472 |
|
|
(17 |
) |
||
Adjusted income from discontinued operations before income taxes |
$ |
8,350 |
|
$ |
17,095 |
|
||
See footnotes on page 12. |
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 |
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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 and debt extinguishment costs. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. We define Adjusted income from continuing operations attributable to |
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We define Adjusted income attributable to |
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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 |
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(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 three months ended |
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(d) Represents the income tax effect of adjustments to income based on tax rates of 27.0% and 14.3% for the three months ended |
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(e) Represents the adjustments to the loss on sale recorded in connection with the |
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Director, Investor Relations
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