Increases Guidance for 2014 Adjusted Earnings to a Range of $1.44 to
1.46 per Diluted Share Including Expected Transaction Accretion of $0.17
to $0.18 per Diluted Share
FRANKLIN, Tenn.--(BUSINESS WIRE)--Jul. 2, 2014--
Acadia Healthcare Company, Inc. (NASDAQ: ACHC) announced that yesterday
it completed the previously announced acquisition of Partnerships in
Care (PiC) for approximately $662 million in cash. PiC is the second
largest independent provider of inpatient behavioral healthcare services
in the United Kingdom, operating 23 inpatient psychiatric facilities
with over 1,200 beds. For 2013, PiC produced revenue of approximately
$285 million and adjusted EBITDA of approximately $75 million. Acadia
expects that the transaction will be accretive to its 2014 earnings in a
range of $0.17 to $0.18 per diluted share, before transaction-related
expenses.
Joey Jacobs, Chairman and Chief Executive Officer of Acadia, commented,
“We are very pleased to enter the U.K. market for inpatient behavioral
care with such a high quality provider and well-established market
leader as PiC. We continue to believe that favorable market dynamics in
the U.K. present a significant opportunity for accretive growth. With
PiC’s strong management team, supported by Acadia’s experienced
organization and access to capital, we are confident that we are well
positioned to achieve our expectations for growth in the U.K., both
organically and through additional acquisitions.”
The purchase was financed through a combination of equity and long-term
debt. On June 17, 2014, Acadia closed an underwritten public offering of
its common stock, which provided net proceeds to the Company of
approximately $374 million. On July 1, 2014, Acadia closed a private
offering of $300 million in aggregate principal amount of its 5.125%
senior unsecured notes due 2022 pursuant to an exemption from the
registration requirements of the Securities Act of 1933, as amended.
Brent Turner, President of Acadia, added, “As demonstrated by the
successful completion of these offerings, Acadia’s long-term growth
continues to be supported by its access to capital. While we are focused
on the seamless integration of PiC into Acadia’s operations, we continue
to evaluate additional opportunities in the U.S and U.K. to expand
through acquisition. We believe we have the financial flexibility and
strength to finance additional transactions. We expect our net cash flow
from operations will be strengthened by increased margins and a lower
consolidated income tax rate resulting from the integration of PiC’s
operations into Acadia’s. We also have approximately $175 million in
availability under our revolving credit facility.”
Based primarily on the impact of the PiC acquisition, Acadia today
raised its guidance for 2014 adjusted earnings per diluted share to a
range of $1.44 to $1.46. The Company’s guidance does not include the
impact of any future acquisitions or transaction-related expenses.
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 acquired facilities, including the PiC 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 75 behavioral healthcare facilities with more than
5,500 licensed beds in 24 states, the United Kingdom 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