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The Company reported revenue of
During the second quarter of 2020, the Company recognized
Acadia’s consolidated adjusted EBITDA for the second quarter of 2020 was
For the
“We believe the ongoing mental and emotional toll caused by continuing economic and societal concerns will further increase the already strong demand for mental health and substance use treatments we provide in the
Cash and Liquidity
Acadia’s balance sheet remains strong with ample liquidity and capital to invest in and grow its business. As of
On
Looking Ahead
Osteen added, “We believe there will continue to be a significant need for our services as the associated challenges brought on by the pandemic continue to affect everyone, particularly the more vulnerable and at-risk populations served by Acadia. We are equally mindful of the critical need to ensure the health and safety of everyone in our facilities by continuing to follow strict protocol measures throughout our operations. We believe Acadia is well positioned to meet the expected demand for mental health and substance use conditions. We will continue to deliver the highest quality of patient care, extend our market reach, and advance our market leadership as a behavioral healthcare facilities operator.”
Acadia will hold a conference call to discuss its second quarter financial results at
About Acadia
Acadia is a leading provider of behavioral healthcare services. As of
Forward-Looking Information
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) the impact of the COVID-19 pandemic, including, without limitation, disruption to the
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
||
(In thousands, except per share amounts) |
||||||||||||||||
Revenue |
$ |
750,311 |
|
$ |
789,362 |
|
|
1,533,121 |
|
$ |
1,549,979 |
|
||||
Salaries, wages and benefits (including equity-based compensation expense of |
|
427,603 |
|
|
430,219 |
|
|
867,919 |
|
|
859,798 |
|
||||
Professional fees |
|
58,614 |
|
|
58,429 |
|
|
121,914 |
|
|
115,436 |
|
||||
Supplies |
|
30,124 |
|
|
30,914 |
|
|
62,095 |
|
|
60,871 |
|
||||
Rents and leases |
|
20,827 |
|
|
20,419 |
|
|
41,651 |
|
|
40,726 |
|
||||
Other operating expenses |
|
92,600 |
|
|
94,677 |
|
|
191,129 |
|
|
188,542 |
|
||||
Other income |
|
(18,070 |
) |
|
- |
|
|
(18,070 |
) |
|
- |
|
||||
Depreciation and amortization |
|
41,445 |
|
|
41,077 |
|
|
83,125 |
|
|
81,657 |
|
||||
Interest expense, net |
|
38,726 |
|
|
48,610 |
|
|
81,511 |
|
|
96,740 |
|
||||
Debt extinguishment costs |
|
3,271 |
|
|
- |
|
|
3,271 |
|
|
- |
|
||||
Transaction-related expenses |
|
5,241 |
|
|
5,212 |
|
|
8,790 |
|
|
9,533 |
|
||||
Total expenses |
|
700,381 |
|
|
729,557 |
|
|
1,443,335 |
|
|
1,453,303 |
|
||||
Income before income taxes |
|
49,930 |
|
|
59,805 |
|
|
89,786 |
|
|
96,676 |
|
||||
Provision for income taxes |
|
8,216 |
|
|
11,604 |
|
|
14,005 |
|
|
18,964 |
|
||||
Net income |
|
41,714 |
|
|
48,201 |
|
|
75,781 |
|
|
77,712 |
|
||||
Net income attributable to noncontrolling interests |
|
(635 |
) |
|
(61 |
) |
|
(1,239 |
) |
|
(101 |
) |
||||
Net income attributable to |
$ |
41,079 |
|
$ |
48,140 |
|
$ |
74,542 |
|
$ |
77,611 |
|
||||
Earnings per share attributable to stockholders: |
||||||||||||||||
Basic |
$ |
0.47 |
|
$ |
0.55 |
|
$ |
0.85 |
|
$ |
0.89 |
|
||||
Diluted |
$ |
0.46 |
|
$ |
0.55 |
|
$ |
0.84 |
|
$ |
0.88 |
|
||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic |
|
87,872 |
|
|
87,618 |
|
|
87,818 |
|
|
87,562 |
|
||||
Diluted |
|
88,608 |
|
|
87,837 |
|
|
88,228 |
|
|
87,770 |
|
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
|
|
|
||||||
|
2020 |
|
|
|
2019 |
|
||
(In thousands) |
||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
211,939 |
|
$ |
124,192 |
|
||
Accounts receivable, net |
|
325,507 |
|
|
339,775 |
|
||
Other current assets |
|
73,495 |
|
|
78,244 |
|
||
Total current assets |
|
610,941 |
|
|
542,211 |
|
||
Property and equipment, net |
|
3,160,784 |
|
|
3,224,034 |
|
||
|
2,425,372 |
|
|
2,449,131 |
|
|||
Intangible assets, net |
|
89,047 |
|
|
90,357 |
|
||
Deferred tax assets |
|
3,274 |
|
|
3,339 |
|
||
Operating lease right-of-use assets |
|
475,262 |
|
|
501,837 |
|
||
Other assets |
|
68,548 |
|
|
68,233 |
|
||
Total assets |
$ |
6,833,228 |
|
$ |
6,879,142 |
|
||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt |
$ |
48,465 |
|
$ |
43,679 |
|
||
Accounts payable |
|
118,799 |
|
|
127,045 |
|
||
Accrued salaries and benefits |
|
119,939 |
|
|
122,552 |
|
||
Current portion of operating lease liabilities |
|
30,038 |
|
|
29,140 |
|
||
Other accrued liabilities |
|
210,123 |
|
|
141,160 |
|
||
Total current liabilities |
|
527,364 |
|
|
463,576 |
|
||
Long-term debt |
|
3,078,445 |
|
|
3,105,420 |
|
||
Deferred tax liabilities |
|
90,688 |
|
|
71,860 |
|
||
Operating lease liabilities |
|
474,218 |
|
|
502,252 |
|
||
Derivative instrument liabilities |
|
8,683 |
|
|
68,915 |
|
||
Other liabilities |
|
116,553 |
|
|
128,587 |
|
||
Total liabilities |
|
4,295,951 |
|
|
4,340,610 |
|
||
Redeemable noncontrolling interests |
|
33,939 |
|
|
33,151 |
|
||
Equity: | ||||||||
Common stock |
|
879 |
|
|
877 |
|
||
Additional paid-in capital |
|
2,567,050 |
|
|
2,557,642 |
|
||
Accumulated other comprehensive loss |
|
(500,879 |
) |
|
(414,884 |
) |
||
Retained earnings |
|
436,288 |
|
|
361,746 |
|
||
Total equity |
|
2,503,338 |
|
|
2,505,381 |
|
||
Total liabilities and equity |
$ |
6,833,228 |
|
$ |
6,879,142 |
|
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Six Months Ended |
||||||||
|
2020 |
|
|
|
2019 |
|
||
(In thousands) |
||||||||
Operating activities: | ||||||||
Net income |
$ |
75,781 |
|
$ |
77,712 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization |
|
83,125 |
|
|
81,657 |
|
||
Amortization of debt issuance costs |
|
6,382 |
|
|
5,887 |
|
||
Equity-based compensation expense |
|
10,787 |
|
|
10,283 |
|
||
Deferred income taxes |
|
22,045 |
|
|
(205 |
) |
||
Debt extinguishment costs |
|
3,271 |
|
|
- |
|
||
Other |
|
(1,152 |
) |
|
2,395 |
|
||
Change in operating assets and liabilities: | ||||||||
Accounts receivable, net |
|
11,066 |
|
|
(27,669 |
) |
||
Other current assets |
|
(8,238 |
) |
|
(10,591 |
) |
||
Other assets |
|
2,823 |
|
|
661 |
|
||
Accounts payable and other accrued liabilities |
|
40,923 |
|
|
(11,060 |
) |
||
Accrued salaries and benefits |
|
(794 |
) |
|
(3,232 |
) |
||
Other liabilities |
|
18,925 |
|
|
2,848 |
|
||
Net cash provided by operating activities |
|
264,944 |
|
|
128,686 |
|
||
Investing activities: | ||||||||
Cash paid for acquisitions, net of cash acquired |
|
- |
|
|
(44,900 |
) |
||
Cash paid for capital expenditures |
|
(132,080 |
) |
|
(139,128 |
) |
||
Cash paid for real estate acquisitions |
|
(4,415 |
) |
|
(4,448 |
) |
||
Proceeds from sale of property and equipment |
|
1,412 |
|
|
11,649 |
|
||
Other |
|
(4,849 |
) |
|
(1,155 |
) |
||
Net cash used in investing activities |
|
(139,932 |
) |
|
(177,982 |
) |
||
Financing activities: | ||||||||
Borrowings on long-term debt |
|
450,000 |
|
|
- |
|
||
Borrowings on revolving credit facility |
|
100,000 |
|
|
76,573 |
|
||
Principal payments on revolving credit facility |
|
(100,000 |
) |
|
(11,573 |
) |
||
Principal payments on long-term debt |
|
(21,242 |
) |
|
(16,492 |
) |
||
Repayment of long-term debt |
|
(450,000 |
) |
|
- |
|
||
Payment of debt issuance costs |
|
(10,595 |
) |
|
- |
|
||
Common stock withheld for minimum statutory taxes, net |
|
(1,377 |
) |
|
(1,615 |
) |
||
Distributions to noncontrolling interests |
|
(451 |
) |
|
- |
|
||
Other |
|
(2,344 |
) |
|
(4,345 |
) |
||
Net cash (used in) provided by financing activities |
|
(36,009 |
) |
|
42,548 |
|
||
Effect of exchange rate changes on cash |
|
(1,256 |
) |
|
(221 |
) |
||
Net increase (decrease) in cash and cash equivalents |
|
87,747 |
|
|
(6,969 |
) |
||
Cash and cash equivalents at beginning of the period |
|
124,192 |
|
|
50,510 |
|
||
Cash and cash equivalents at end of the period |
$ |
211,939 |
|
$ |
43,541 |
|
||
Effect of acquisitions: | ||||||||
Assets acquired, excluding cash |
$ |
- |
|
$ |
48,555 |
|
||
Liabilities assumed |
|
- |
|
|
(3,655 |
) |
||
Cash paid for acquisitions, net of cash acquired |
$ |
- |
|
$ |
44,900 |
|
Operating Statistics | |||||||||||||||||||||||
(Unaudited, Revenue in thousands) | |||||||||||||||||||||||
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||
|
2020 |
|
|
|
2019 |
|
|
% Change |
|
|
2020 |
|
|
|
2019 |
|
|
% Change |
|||||
Same Facility Results (a,c) | |||||||||||||||||||||||
Revenue |
$ |
727,003 |
|
$ |
753,527 |
|
-3.5 |
% |
$ |
1,477,457 |
|
$ |
1,479,526 |
|
-0.1 |
% |
|||||||
|
1,129,064 |
|
|
1,155,857 |
|
-2.3 |
% |
|
2,267,797 |
|
|
2,281,482 |
|
-0.6 |
% |
||||||||
Admissions |
|
42,944 |
|
|
45,432 |
|
-5.5 |
% |
|
87,616 |
|
|
89,898 |
|
-2.5 |
% |
|||||||
Average Length of Stay (b) |
|
26.3 |
|
|
25.4 |
|
3.3 |
% |
|
25.9 |
|
|
25.4 |
|
2.0 |
% |
|||||||
Revenue per |
$ |
644 |
|
$ |
652 |
|
-1.2 |
% |
$ |
651 |
|
$ |
648 |
|
0.5 |
% |
|||||||
EBITDA margin |
|
23.3 |
% |
|
23.9 |
% |
-60 bps |
|
22.2 |
% |
|
23.0 |
% |
-80 bps | |||||||||
Revenue |
$ |
490,801 |
|
$ |
508,024 |
|
-3.4 |
% |
$ |
991,952 |
|
$ |
989,434 |
|
0.3 |
% |
|||||||
|
648,518 |
|
|
652,861 |
|
-0.7 |
% |
|
1,294,832 |
|
|
1,281,032 |
|
1.1 |
% |
||||||||
Admissions |
|
41,158 |
|
|
43,143 |
|
-4.6 |
% |
|
83,628 |
|
|
85,225 |
|
-1.9 |
% |
|||||||
Average Length of Stay (b) |
|
15.8 |
|
|
15.1 |
|
4.1 |
% |
|
15.5 |
|
|
15.0 |
|
3.0 |
% |
|||||||
Revenue per |
$ |
757 |
|
$ |
778 |
|
-2.7 |
% |
$ |
766 |
|
$ |
772 |
|
-0.8 |
% |
|||||||
EBITDA margin |
|
27.6 |
% |
|
26.9 |
% |
70 bps |
|
25.9 |
% |
|
26.0 |
% |
-10 bps | |||||||||
Revenue |
$ |
236,202 |
|
$ |
245,503 |
|
-3.8 |
% |
$ |
485,505 |
|
$ |
490,092 |
|
-0.9 |
% |
|||||||
|
480,546 |
|
|
502,996 |
|
-4.5 |
% |
|
972,965 |
|
|
1,000,450 |
|
-2.7 |
% |
||||||||
Admissions |
|
1,786 |
|
|
2,289 |
|
-22.0 |
% |
|
3,988 |
|
|
4,673 |
|
-14.7 |
% |
|||||||
Average Length of Stay (b) |
|
269.1 |
|
|
219.7 |
|
22.4 |
% |
|
244.0 |
|
|
214.1 |
|
14.0 |
% |
|||||||
Revenue per |
$ |
492 |
|
$ |
488 |
|
0.7 |
% |
$ |
499 |
|
$ |
490 |
|
1.9 |
% |
|||||||
EBITDA margin |
|
14.3 |
% |
|
17.8 |
% |
-350 bps |
|
14.6 |
% |
|
17.0 |
% |
-240 bps | |||||||||
Revenue |
$ |
491,475 |
|
$ |
509,813 |
|
-3.6 |
% |
$ |
1,000,692 |
|
$ |
997,773 |
|
0.3 |
% |
|||||||
|
648,518 |
|
|
656,456 |
|
-1.2 |
% |
|
1,306,520 |
|
|
1,296,780 |
|
0.8 |
% |
||||||||
Admissions |
|
41,158 |
|
|
43,153 |
|
-4.6 |
% |
|
84,761 |
|
|
85,405 |
|
-0.8 |
% |
|||||||
Average Length of Stay (b) |
|
15.8 |
|
|
15.2 |
|
3.6 |
% |
|
15.4 |
|
|
15.2 |
|
1.5 |
% |
|||||||
Revenue per |
$ |
758 |
|
$ |
777 |
|
-2.4 |
% |
$ |
766 |
|
$ |
769 |
|
-0.5 |
% |
|||||||
EBITDA margin |
|
27.4 |
% |
|
26.6 |
% |
80 bps |
|
25.5 |
% |
|
25.5 |
% |
0 bps | |||||||||
Revenue |
$ |
258,836 |
|
$ |
269,827 |
|
-4.1 |
% |
$ |
532,429 |
|
$ |
537,886 |
|
-1.0 |
% |
|||||||
|
633,049 |
|
|
671,140 |
|
-5.7 |
% |
|
1,290,318 |
|
|
1,335,533 |
|
-3.4 |
% |
||||||||
Admissions |
|
2,048 |
|
|
2,653 |
|
-22.8 |
% |
|
4,666 |
|
|
5,411 |
|
-13.8 |
% |
|||||||
Average Length of Stay (b) |
|
309.1 |
|
|
253.0 |
|
22.2 |
% |
|
276.5 |
|
|
246.8 |
|
12.0 |
% |
|||||||
Revenue per |
$ |
409 |
|
$ |
402 |
|
1.7 |
% |
$ |
413 |
|
$ |
403 |
|
2.5 |
% |
|||||||
EBITDA margin |
|
12.2 |
% |
|
16.4 |
% |
-420 bps |
|
12.7 |
% |
|
15.5 |
% |
-280 bps | |||||||||
Total Facility Results (c) | |||||||||||||||||||||||
Revenue |
$ |
750,311 |
|
$ |
779,640 |
|
-3.8 |
% |
$ |
1,533,121 |
|
$ |
1,535,659 |
|
-0.2 |
% |
|||||||
|
1,281,567 |
|
|
1,327,596 |
|
-3.5 |
% |
|
2,596,838 |
|
|
2,632,313 |
|
-1.3 |
% |
||||||||
Admissions |
|
43,206 |
|
|
45,806 |
|
-5.7 |
% |
|
89,427 |
|
|
90,816 |
|
-1.5 |
% |
|||||||
Average Length of Stay (b) |
|
29.7 |
|
|
29.0 |
|
2.3 |
% |
|
29.0 |
|
|
29.0 |
|
0.2 |
% |
|||||||
Revenue per |
$ |
585 |
|
$ |
587 |
|
-0.3 |
% |
$ |
590 |
|
$ |
583 |
|
1.2 |
% |
|||||||
EBITDA margin |
|
22.2 |
% |
|
23.0 |
% |
-80 bps |
|
21.1 |
% |
|
22.0 |
% |
-90 bps |
(a) Results for the periods presented exclude the elderly care division of our |
|||||||||||||
(b) Average length of stay is defined as patient days divided by admissions. | |||||||||||||
(c) Revenue and revenue per patient day for the three and six months ended |
Reconciliation of Net Income Attributable to |
|||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|||
(in thousands) |
|||||||||||||||||
Net income attributable to |
$ |
41,079 |
|
$ |
48,140 |
|
$ |
74,542 |
|
$ |
77,611 |
|
|||||
Net income attributable to noncontrolling interests |
|
635 |
|
|
61 |
|
|
1,239 |
|
|
101 |
|
|||||
Provision for income taxes |
|
8,216 |
|
|
11,604 |
|
|
14,005 |
|
|
18,964 |
|
|||||
Interest expense, net |
|
38,726 |
|
|
48,610 |
|
|
81,511 |
|
|
96,740 |
|
|||||
Depreciation and amortization |
|
41,445 |
|
|
41,077 |
|
|
83,125 |
|
|
81,657 |
|
|||||
EBITDA |
|
130,101 |
|
|
149,492 |
|
|
254,422 |
|
|
275,073 |
|
|||||
Adjustments: | |||||||||||||||||
Equity-based compensation expense (a) |
|
5,808 |
|
|
4,182 |
|
|
10,787 |
|
|
10,283 |
|
|||||
Transaction-related expenses (b) |
|
5,241 |
|
|
5,212 |
|
|
8,790 |
|
|
9,533 |
|
|||||
Debt extinguishment costs (c) |
|
3,271 |
|
|
- |
|
|
3,271 |
|
|
- |
|
|||||
Adjusted EBITDA |
$ |
144,421 |
|
$ |
158,886 |
|
$ |
277,270 |
|
$ |
294,889 |
|
|||||
Adjusted EBITDA margin |
|
19.2 |
% |
|
20.1 |
% |
|
18.1 |
% |
|
19.0 |
% |
|||||
See footnotes on page 10. |
Reconciliation of Adjusted Income Attributable to |
|||||||||||||||
Net Income Attributable to |
|||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
2020 |
|
|
|
2019 |
|
|
2020 |
|
|
|
2019 |
|||
(in thousands, except per share amounts) |
|||||||||||||||
Net income attributable to |
$ |
41,079 |
|
$ |
48,140 |
$ |
74,542 |
|
$ |
77,611 |
|||||
Adjustments to income: | |||||||||||||||
Transaction-related expenses (b) |
|
5,241 |
|
|
5,212 |
|
8,790 |
|
|
9,533 |
|||||
Debt extinguishment costs (c) |
|
3,271 |
|
|
- |
|
3,271 |
|
|
- |
|||||
Income tax effect of adjustments to income (d) |
|
(1,461 |
) |
|
438 |
|
(1,805 |
) |
|
987 |
|||||
Adjusted income attributable to |
$ |
48,130 |
|
$ |
53,790 |
$ |
84,798 |
|
$ |
88,131 |
|||||
Weighted-average shares outstanding - diluted |
|
88,608 |
|
|
87,837 |
|
88,228 |
|
|
87,770 |
|||||
Adjusted income attributable to per diluted share |
$ |
0.54 |
|
$ |
0.61 |
$ |
0.96 |
|
$ |
1.00 |
|||||
See footnotes on page 10. |
Footnotes | |||||||||||
We have included certain financial measures in this press release, including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted income, which are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the |
|||||||||||
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted income are supplemental measures of our performance and are not required by, or presented in accordance with, generally accepted accounting principles in |
|||||||||||
(a) Represents the equity-based compensation expense of Acadia.
|
|||||||||||
(b) Represents transaction-related expenses incurred by Acadia primarily related to termination, restructuring, |
|||||||||||
(c) Represents debt extinguishment costs recorded in connection with the repayment of the 6.125% and 5.125% Senior Notes in |
|||||||||||
(d) Represents the income tax effect of adjustments to income based on tax rates of 16.7% and 17.2% for the three months ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200804006004/en/
Director, Investor Relations
(615) 861-6000
Source: