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Revises Financial Guidance for 2016
Expects to Close U.K. Divestiture Transaction in the Fourth Quarter
For the first nine months of 2016, revenue was
“Acadia’s revenue grew in excess of 50% for the third quarter of 2016,
the ninth consecutive quarter of such growth versus the comparable prior
year quarter,” commented
The Company’s third quarter revenue growth also reflected a consolidated
6.2% increase in same facility revenue, compared with the third quarter
last year, which was less than anticipated. Same facility revenue in the
In the U.S., same facility revenue growth was 6.5% for the third quarter of 2016, compared to 5.9% for the same period last year. While the growth rate improved from last year, it is lower than we anticipated. Additionally, the third quarter results were also affected by a slower than expected ramping at several de novo acute inpatient facilities opened in 2015 and 2016.
Acadia had
Based on Acadia’s results for the third quarter and outlook for the
fourth quarter, including the impact of the exchange rate and the
planned
Acadia will hold a conference call to discuss its third quarter
financial results at 9:00 a.m. Eastern Time on
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) the CMA’s
acceptance of our undertakings to address its concerns relating to the
Priory transaction and approval of the sale to
About Acadia
Acadia is a provider of inpatient behavioral healthcare services. Acadia
operates a network of 589 behavioral healthcare facilities with
approximately 17,900 beds in 39 states, the
Acadia Healthcare Company, Inc. | |||||||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||
Revenue before provision for doubtful accounts | $ | 744,802 | $ | 488,746 | $ | 2,139,039 | $ | 1,324,702 | |||||||||||||
Provision for doubtful accounts | (10,137 | ) | (9,016 | ) | (31,013 | ) | (25,529 | ) | |||||||||||||
Revenue | 734,665 | 479,730 | 2,108,026 | 1,299,173 | |||||||||||||||||
Salaries, wages and benefits (including equity-based compensation expense of $7,145, $5,327, $20,989 and $14,576, respectively) |
408,242 | 258,410 | 1,157,557 | 707,583 | |||||||||||||||||
Professional fees | 47,687 | 30,759 | 137,970 | 83,215 | |||||||||||||||||
Supplies | 30,555 | 21,634 | 88,449 | 58,430 | |||||||||||||||||
Rents and leases | 19,740 | 8,542 | 55,013 | 22,639 | |||||||||||||||||
Other operating expenses | 79,748 | 57,244 | 230,950 | 148,899 | |||||||||||||||||
Depreciation and amortization | 36,418 | 16,890 | 101,145 | 44,920 | |||||||||||||||||
Interest expense, net | 48,843 | 27,737 | 135,315 | 77,932 | |||||||||||||||||
Debt extinguishment costs | 3,411 | 9,979 | 3,411 | 9,979 | |||||||||||||||||
Loss on divestiture | 174,739 | - | 174,739 | - | |||||||||||||||||
(Gain) loss on foreign currency derivatives | (15 | ) | 1,018 | (523 | ) | 1,926 | |||||||||||||||
Transaction-related expenses | 1,111 | 5,842 | 33,483 | 31,415 | |||||||||||||||||
Total expenses | 850,479 | 438,055 | 2,117,509 | 1,186,938 | |||||||||||||||||
(Loss) income from continuing operations before income taxes | (115,814 | ) | 41,675 | (9,483 | ) | 112,235 | |||||||||||||||
Provision for income taxes | 2,396 | 12,669 | 27,767 | 34,794 | |||||||||||||||||
(Loss) income from continuing operations | (118,210 | ) | 29,006 | (37,250 | ) | 77,441 | |||||||||||||||
Income from discontinued operations, net of income taxes | - | 80 | - | 83 | |||||||||||||||||
Net (loss) income | (118,210 | ) | 29,086 | (37,250 | ) | 77,524 | |||||||||||||||
Net loss attributable to noncontrolling interests | 402 | 464 | 1,575 | 464 | |||||||||||||||||
Net (loss) income attributable to Acadia Healthcare Company, Inc. | $ | (117,808 | ) | $ | 29,550 | $ | (35,675 | ) | $ | 77,988 | |||||||||||
Basic earnings attributable to Acadia Healthcare Company, Inc. stockholders: |
|||||||||||||||||||||
(Loss) income from continuing operations | $ | (1.36 | ) | $ | 0.42 | $ | (0.42 | ) | $ | 1.16 | |||||||||||
Income from discontinued operations | - | - | - | - | |||||||||||||||||
Net (loss) income | $ | (1.36 | ) | $ | 0.42 | $ | (0.42 | ) | $ | 1.16 | |||||||||||
Diluted earnings attributable to Acadia Healthcare Company, Inc. stockholders: |
|||||||||||||||||||||
(Loss) income from continuing operations | $ | (1.36 | ) | $ | 0.42 | $ | (0.42 | ) | $ | 1.15 | |||||||||||
Income from discontinued operations | - | - | - | - | |||||||||||||||||
Net (loss) income | $ | (1.36 | ) | $ | 0.42 | $ | (0.42 | ) | $ | 1.15 | |||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||
Basic | 86,618 | 70,664 | 85,376 | 67,194 | |||||||||||||||||
Diluted | 86,618 | 71,110 | 85,376 | 67,539 |
Acadia Healthcare Company, Inc. | |||||||||||
Condensed Consolidated Balance Sheets | |||||||||||
(Unaudited) | |||||||||||
September 30, 2016 |
December 31, 2015 |
||||||||||
(In thousands) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 27,751 | $ | 11,215 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $37,725 and $29,332, respectively |
277,568 | 216,626 | |||||||||
Other current assets | 87,628 | 66,895 | |||||||||
Total current assets | 392,947 | 294,736 | |||||||||
Property and equipment, net | 2,786,646 | 1,709,053 | |||||||||
Goodwill | 2,702,009 | 2,128,215 | |||||||||
Intangible assets, net | 84,385 | 59,575 | |||||||||
Deferred tax assets - noncurrent | 3,791 | 49,114 | |||||||||
Derivative instruments | 49,903 | - | |||||||||
Assets held for sale | 392,483 | - | |||||||||
Other assets | 40,814 | 38,515 | |||||||||
Total assets | $ | 6,452,978 | $ | 4,279,208 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | 77,598 | $ | 45,360 | |||||||
Accounts payable | 92,819 | 91,341 | |||||||||
Accrued salaries and benefits | 105,308 | 80,696 | |||||||||
Other accrued liabilities | 104,513 | 72,806 | |||||||||
Total current liabilities | 380,238 | 290,203 | |||||||||
Long-term debt | 3,583,879 | 2,195,384 | |||||||||
Deferred tax liabilities - noncurrent | 81,443 | 23,936 | |||||||||
Other liabilities | 147,150 | 78,602 | |||||||||
Total liabilities | 4,192,710 | 2,588,125 | |||||||||
Redeemable noncontrolling interests | 18,147 | 8,055 | |||||||||
Equity: | |||||||||||
Common stock | 866 | 707 | |||||||||
Additional paid-in capital | 2,488,803 | 1,572,972 | |||||||||
Accumulated other comprehensive loss | (425,869 | ) | (104,647 | ) | |||||||
Retained earnings | 178,321 | 213,996 | |||||||||
Total equity | 2,242,121 | 1,683,028 | |||||||||
Total liabilities and equity | $ | 6,452,978 | $ | 4,279,208 |
Acadia Healthcare Company, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
(In thousands) | ||||||||
Operating activities: | ||||||||
Net (loss) income | $ | (37,250 | ) | $ | 77,524 | |||
Adjustments to reconcile net (loss) income to net cash provided by continuing operating activities: | ||||||||
Depreciation and amortization | 101,145 | 44,920 | ||||||
Amortization of debt issuance costs | 7,714 | 5,017 | ||||||
Equity-based compensation expense | 20,989 | 14,576 | ||||||
Deferred income tax expense | 25,857 | 28,925 | ||||||
Income from discontinued operations, net of taxes | - | (83 | ) | |||||
Debt extinguishment costs | 3,411 | 9,979 | ||||||
Loss on divestiture | 174,739 | - | ||||||
(Gain) loss on foreign currency derivatives | (523 | ) | 1,926 | |||||
Other | 731 | 1,122 | ||||||
Change in operating assets and liabilities, net of effect of acquisitions: | ||||||||
Accounts receivable, net | (12,579 | ) | (28,905 | ) | ||||
Other current assets | (12,973 | ) | (12,201 | ) | ||||
Other assets | (1,134 | ) | (4,879 | ) | ||||
Accounts payable and other accrued liabilities | 2,067 | (8,316 | ) | |||||
Accrued salaries and benefits | (10,759 | ) | 8,888 | |||||
Other liabilities | 3,746 | 5,071 | ||||||
Net cash provided by continuing operating activities | 265,181 | 143,564 | ||||||
Net cash used in discontinued operating activities | (5,524 | ) | (1,479 | ) | ||||
Net cash provided by operating activities | 259,657 | 142,085 | ||||||
Investing activities: | ||||||||
Cash paid for acquisitions, net of cash acquired | (683,285 | ) | (391,216 | ) | ||||
Cash paid for capital expenditures | (249,961 | ) | (200,841 | ) | ||||
Cash paid for real estate acquisitions | (37,947 | ) | (21,976 | ) | ||||
Settlement of foreign currency derivatives | 523 | (1,926 | ) | |||||
Other | (1,135 | ) | (887 | ) | ||||
Net cash used in investing activities | (971,805 | ) | (616,846 | ) | ||||
Financing activities: | ||||||||
Borrowings on long-term debt | 1,480,000 | 1,150,000 | ||||||
Borrowings on revolving credit facility | 179,000 | 310,000 | ||||||
Principal payments on revolving credit facility | (166,000 | ) | (310,000 | ) | ||||
Principal payments on long-term debt | (46,069 | ) | (23,813 | ) | ||||
Repayment of assumed debt | (1,348,389 | ) | (904,467 | ) | ||||
Repayment of senior notes | - | (88,331 | ) | |||||
Payment of debt issuance costs | (35,748 | ) | (25,584 | ) | ||||
Payment of premium on senior notes | - | (6,890 | ) | |||||
Issuance of common stock, net | 685,097 | 331,360 | ||||||
Common stock withheld for minimum statutory taxes, net | (7,917 | ) | (7,582 | ) | ||||
Excess tax benefit from equity awards | - | 8,020 | ||||||
Other | (1,821 | ) | (374 | ) | ||||
Net cash provided by financing activities | 738,153 | 432,339 | ||||||
Effect of exchange rate changes on cash | (9,469 | ) | (856 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 16,536 | (43,278 | ) | |||||
Cash and cash equivalents at beginning of the period | 11,215 | 94,040 | ||||||
Cash and cash equivalents at end of the period | $ | 27,751 | $ | 50,762 | ||||
$ | - | |||||||
Effect of acquisitions: | ||||||||
Assets acquired, excluding cash | $ | 2,505,407 | $ | 1,793,139 | ||||
Liabilities assumed | (1,605,240 | ) | (1,012,549 | ) | ||||
Issuance of common stock in connection with acquisition | (216,882 | ) | (380,210 | ) | ||||
Redeemable noncontrolling interest resulting from an acquisition | - | (9,164 | ) | |||||
Cash paid for acquisitions, net of cash acquired | $ | 683,285 | $ | 391,216 |
Acadia Healthcare Company, Inc. | ||||||||||||||||||||||||
Operating Statistics | ||||||||||||||||||||||||
(Unaudited, Revenue in thousands) | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||||||
Same Facility Results (a,c) | ||||||||||||||||||||||||
Revenue | $ | 479,548 | $ | 451,431 | 6.2 | % | $ | 1,349,320 | $ | 1,252,370 | 7.7 | % | ||||||||||||
Patient Days | 725,761 | 683,043 | 6.3 | % | 1,991,511 | 1,853,799 | 7.4 | % | ||||||||||||||||
Admissions | 34,094 | 31,790 | 7.2 | % | 96,041 | 87,940 | 9.2 | % | ||||||||||||||||
Average Length of Stay (b) | 21.3 | 21.5 | -0.9 | % | 20.7 | 21.1 | -1.6 | % | ||||||||||||||||
Revenue per Patient Day | $ | 661 | $ | 661 | 0.0 | % | $ | 678 | $ | 676 | 0.3 | % | ||||||||||||
EBITDA margin | 26.9 | % | 27.4 | % | -50 bps | 27.4 | % | 27.1 | % | 30 bps | ||||||||||||||
U.S. Same Facility Results (a) | ||||||||||||||||||||||||
Revenue | $ | 392,436 | $ | 368,507 | 6.5 | % | $ | 1,104,014 | $ | 1,020,673 | 8.2 | % | ||||||||||||
Patient Days | 568,103 | 534,745 | 6.2 | % | 1,581,786 | 1,476,581 | 7.1 | % | ||||||||||||||||
Admissions | 33,682 | 31,329 | 7.5 | % | 95,045 | 86,894 | 9.4 | % | ||||||||||||||||
Average Length of Stay (b) | 16.9 | 17.1 | -1.2 | % | 16.6 | 17.0 | -2.1 | % | ||||||||||||||||
Revenue per Patient Day | $ | 691 | $ | 689 | 0.2 | % | $ | 698 | $ | 691 | 1.0 | % | ||||||||||||
EBITDA margin | 27.4 | % | 28.2 | % | -80 bps | 27.9 | % | 27.7 | % | 20 bps | ||||||||||||||
U.K. Same Facility Results (c) | ||||||||||||||||||||||||
Revenue | $ | 87,112 | $ | 82,924 | 5.1 | % | $ | 245,306 | $ | 231,697 | 5.9 | % | ||||||||||||
Patient Days | 157,658 | 148,298 | 6.3 | % | 409,725 | 377,218 | 8.6 | % | ||||||||||||||||
Admissions | 412 | 461 | -10.6 | % | 996 | 1,046 | -4.8 | % | ||||||||||||||||
Average Length of Stay (b) | 382.7 | 321.7 | 19.0 | % | 411.4 | 360.6 | 14.1 | % | ||||||||||||||||
Revenue per Patient Day | $ | 553 | $ | 559 | -1.2 | % | $ | 599 | $ | 614 | -2.5 | % | ||||||||||||
EBITDA margin | 24.6 | % | 23.5 | % | 110 bps | 25.0 | % | 24.3 | % | 70 bps | ||||||||||||||
U.S. Facility Results | ||||||||||||||||||||||||
Revenue | $ | 431,521 | $ | 379,857 | 13.6 | % | $ | 1,269,994 | $ | 1,037,250 | 22.4 | % | ||||||||||||
Patient Days | 604,472 | 542,345 | 11.5 | % | 1,756,714 | 1,484,181 | 18.4 | % | ||||||||||||||||
Admissions | 37,039 | 32,101 | 15.4 | % | 107,719 | 87,666 | 22.9 | % | ||||||||||||||||
Average Length of Stay (b) | 16.3 | 16.9 | -3.4 | % | 16.3 | 16.9 | -3.7 | % | ||||||||||||||||
Revenue per Patient Day | $ | 714 | $ | 700 | 1.9 | % | $ | 723 | $ | 699 | 3.4 | % | ||||||||||||
EBITDA margin | 25.2 | % | 26.8 | % | -160 bps | 26.3 | % | 27.0 | % | -70 bps | ||||||||||||||
U.K. Facility Results (c) | ||||||||||||||||||||||||
Revenue | $ | 303,146 | $ | 82,924 | 265.6 | % | $ | 836,004 | $ | 231,697 | 260.8 | % | ||||||||||||
Patient Days | 765,723 | 148,298 | 416.3 | % | 1,976,425 | 377,218 | 423.9 | % | ||||||||||||||||
Admissions | 2,996 | 461 | 549.9 | % | 7,395 | 1,046 | 607.0 | % | ||||||||||||||||
Average Length of Stay (b) | 255.6 | 321.7 | -20.5 | % | 267.3 | 360.6 | -25.9 | % | ||||||||||||||||
Revenue per Patient Day | $ | 396 | $ | 559 | -29.2 | % | $ | 423 | $ | 614 | -31.1 | % | ||||||||||||
EBITDA margin | 22.4 | % | 23.5 | % | -110 bps | 22.2 | % | 24.3 | % | -210 bps | ||||||||||||||
Total Facility Results (c) | ||||||||||||||||||||||||
Revenue | $ | 734,667 | $ | 462,781 | 58.8 | % | $ | 2,105,998 | $ | 1,268,947 | 66.0 | % | ||||||||||||
Patient Days | 1,370,195 | 690,643 | 98.4 | % | 3,733,139 | 1,861,399 | 100.6 | % | ||||||||||||||||
Admissions | 40,035 | 32,562 | 23.0 | % | 115,114 | 88,712 | 29.8 | % | ||||||||||||||||
Average Length of Stay (b) | 34.2 | 21.2 | 61.4 | % | 32.4 | 21.0 | 54.6 | % | ||||||||||||||||
Revenue per Patient Day | $ | 536 | $ | 670 | -20.0 | % | $ | 564 | $ | 682 | -17.2 | % | ||||||||||||
EBITDA margin | 24.0 | % | 26.2 | % | -220 bps | 24.7 | % | 26.5 | % | -180 bps | ||||||||||||||
(a) Same-facility results for the periods presented exclude certain services at three locations that will be closed and six outpatient programs that have been closed. | ||||||||||||||||||||||||
(b) Average length of stay is defined as patient days divided by admissions. | ||||||||||||||||||||||||
(c) Revenue and revenue per patient day for the three and nine months ended September 30, 2015 are adjusted to reflect the foreign currency exchange rate for the comparable period of 2016 in order to eliminate the effect of changes in the exchange rate. The exchange rate used in the adjusted revenue and revenue per patient day amounts for the three and nine months ended September 30, 2015 is 1.31 and 1.39, respectively. |
Acadia Healthcare Company, Inc. | |||||||||||||||||||||
Reconciliation of Net (Loss) Income Attributable to Acadia Healthcare Company, Inc. to Adjusted EBITDA | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net (loss) income attributable to Acadia Healthcare Company, Inc. | $ | (117,808 | ) | $ | 29,550 | $ | (35,675 | ) | $ | 77,988 | |||||||||||
Income from discontinued operations, net of income taxes | - | (80 | ) | - | (83 | ) | |||||||||||||||
Net loss attributable to noncontrolling interests | (402 | ) | (464 | ) | (1,575 | ) | (464 | ) | |||||||||||||
Provision for income taxes | 2,396 | 12,669 | 27,767 | 34,794 | |||||||||||||||||
Interest expense, net | 48,843 | 27,737 | 135,315 | 77,932 | |||||||||||||||||
Depreciation and amortization | 36,418 | 16,890 | 101,145 | 44,920 | |||||||||||||||||
EBITDA | (30,553 | ) | 86,302 | 226,977 | 235,087 | ||||||||||||||||
Adjustments: | |||||||||||||||||||||
Equity-based compensation expense (a) | 7,145 | 5,327 | 20,989 | 14,576 | |||||||||||||||||
Debt extinguishment costs (b) | 3,411 | 9,979 | 3,411 | 9,979 | |||||||||||||||||
Loss on divestiture (c) | 174,739 | - | 174,739 | - | |||||||||||||||||
(Gain) loss on foreign currency derivatives (d) | (15 | ) | 1,018 | (523 | ) | 1,926 | |||||||||||||||
Transaction-related expenses (e) | 1,111 | 5,842 | 33,483 | 31,415 | |||||||||||||||||
Adjusted EBITDA | $ | 155,838 | $ | 108,468 | $ | 459,076 | $ | 292,983 | |||||||||||||
See footnotes on page 11. |
Acadia Healthcare Company, Inc. | ||||||||||||||||||
Reconciliation of Adjusted Income from Continuing Operations Attributable to Acadia Healthcare Company, Inc. to | ||||||||||||||||||
Net (Loss) Income Attributable to Acadia Healthcare Company, Inc. | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
Net (loss) income attributable to Acadia Healthcare Company, Inc. | $ | (117,808 | ) | $ | 29,550 | $ | (35,675 | ) | $ | 77,988 | ||||||||
Income from discontinued operations, net of income taxes | - | (80 | ) | - | (83 | ) | ||||||||||||
Provision for income taxes | 2,396 | 12,669 | 27,767 | 34,794 | ||||||||||||||
(Loss) income from continuing operations attributable to Acadia Healthcare Company, Inc. before income taxes |
(115,412 | ) | 42,139 | (7,908 | ) | 112,699 | ||||||||||||
Adjustments to (loss) income from continuing operations: | ||||||||||||||||||
Debt extinguishment costs (b) | 3,411 | 9,979 | 3,411 | 9,979 | ||||||||||||||
Loss on divestiture (c) | 174,739 | - | 174,739 | - | ||||||||||||||
(Gain) loss on foreign currency derivatives (d) | (15 | ) | 1,018 | (523 | ) | 1,926 | ||||||||||||
Transaction-related expenses (e) | 1,111 | 5,842 | 33,483 | 31,415 | ||||||||||||||
Income tax provision reflecting tax effect of adjustments to income from continuing operations (f) |
(13,916 | ) | (15,088 | ) | (44,298 | ) | (45,558 | ) | ||||||||||
Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. |
$ | 49,918 | $ | 43,890 | $ | 158,904 | $ | 110,461 | ||||||||||
Weighted-average shares outstanding - diluted (g) | 86,778 | 71,110 | 85,643 | 67,539 | ||||||||||||||
Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. per diluted share |
$ | 0.58 | $ | 0.62 | $ | 1.86 | $ | 1.64 | ||||||||||
See footnotes on page 11. |
Acadia Healthcare Company, Inc. | |||||||||||||||||||||
Constant Currency Condensed Consolidated Statements of Operations (h) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||||||
Revenue before provision for doubtful accounts | $ | 799,559 | $ | 488,746 | $ | 2,227,782 | $ | 1,324,702 | |||||||||||||
Provision for doubtful accounts | (10,142 | ) | (9,016 | ) | (31,021 | ) | (25,529 | ) | |||||||||||||
Revenue | 789,417 | 479,730 | 2,196,761 | 1,299,173 | |||||||||||||||||
Salaries, wages and benefits (including equity-based compensation expense of $7,145, $5,327, $20,989 and $14,576, respectively) |
438,201 | 258,410 | 1,206,254 | 707,583 | |||||||||||||||||
Professional fees | 52,021 | 30,759 | 144,808 | 83,215 | |||||||||||||||||
Supplies | 32,370 | 21,634 | 91,419 | 58,430 | |||||||||||||||||
Rents and leases | 21,658 | 8,542 | 58,058 | 22,639 | |||||||||||||||||
Other operating expenses | 84,222 | 57,244 | 238,313 | 148,899 | |||||||||||||||||
Depreciation and amortization | 40,075 | 16,890 | 107,086 | 44,920 | |||||||||||||||||
Interest expense, net | 48,879 | 27,737 | 135,366 | 77,932 | |||||||||||||||||
Debt extinguishment costs | 3,411 | 9,979 | 3,411 | 9,979 | |||||||||||||||||
Loss on divestiture | 203,964 | - | 203,964 | - | |||||||||||||||||
(Gain) loss on foreign currency derivatives | (15 | ) | 1,018 | (523 | ) | 1,926 | |||||||||||||||
Transaction-related expenses | 1,436 | 5,842 | 34,255 | 31,415 | |||||||||||||||||
Total expenses | 926,222 | 438,055 | 2,222,411 | 1,186,938 | |||||||||||||||||
(Loss) income from continuing operations before income taxes | (136,805 | ) | 41,675 | (25,650 | ) | 112,235 | |||||||||||||||
Provision for income taxes | 1,009 | 12,669 | 26,357 | 34,794 | |||||||||||||||||
(Loss) income from continuing operations | (137,814 | ) | 29,006 | (52,007 | ) | 77,441 | |||||||||||||||
Income from discontinued operations, net of income taxes | - | 80 | - | 83 | |||||||||||||||||
Net (loss) income | (137,814 | ) | 29,086 | (52,007 | ) | 77,524 | |||||||||||||||
Net loss attributable to noncontrolling interests | 402 | 464 | 1,575 | 464 | |||||||||||||||||
Net (loss) income attributable to Acadia Healthcare Company, Inc. | $ | (137,412 | ) | $ | 29,550 | $ | (50,432 | ) | $ | 77,988 | |||||||||||
Constant Currency Reconciliation of Adjusted Income from Continuing Operations Attributable to Acadia Healthcare Company, Inc. to | |||||||||||||||||||||
Net (Loss) Income Attributable to Acadia Healthcare Company, Inc. (h) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Net (loss) income attributable to Acadia Healthcare Company, Inc. | $ | (137,412 | ) | $ | 29,550 | $ | (50,432 | ) | $ | 77,988 | |||||||||||
Income from discontinued operations, net of income taxes | - | (80 | ) | - | (83 | ) | |||||||||||||||
Provision for income taxes | 1,009 | 12,669 | 26,357 | 34,794 | |||||||||||||||||
(Loss) income from continuing operations attributable to Acadia Healthcare Company, Inc. before income taxes |
$ | (136,403 | ) | $ | 42,139 | $ | (24,075 | ) | $ | 112,699 | |||||||||||
Adjustments to (loss) income from continuing operations: | |||||||||||||||||||||
Debt extinguishment costs (b) | 3,411 | 9,979 | 3,411 | 9,979 | |||||||||||||||||
Loss on divestiture (c) | 203,964 | - | 203,964 | - | |||||||||||||||||
(Gain) loss on foreign currency derivatives (d) | (15 | ) | 1,018 | (523 | ) | 1,926 | |||||||||||||||
Transaction-related expenses (e) | 1,436 | 5,842 | 34,255 | 31,415 | |||||||||||||||||
Income tax provision reflecting tax effect of adjustments to income from continuing operations (f) |
(14,044 | ) | (15,088 | ) | (44,492 | ) | (45,558 | ) | |||||||||||||
Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. |
$ | 58,349 | $ | 43,890 | $ | 172,540 | $ | 110,461 | |||||||||||||
Weighted-average shares outstanding - diluted (g) | 86,778 | 71,110 | 85,643 | 67,539 | |||||||||||||||||
Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. per diluted share |
$ | 0.67 | $ | 0.62 | $ | 2.01 | $ | 1.64 | |||||||||||||
See footnotes on page 11. |
Acadia Healthcare Company, Inc. | ||
Footnotes | ||
We have included certain financial measures in this press release, including EBITDA, Adjusted EBITDA, Adjusted income from continuing operations, and constant currency adjusted income from continuing operations, which are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the SEC. We define EBITDA as net (loss) income adjusted for income from discontinued operations, net loss attributable to noncontrolling interests, net interest expense, income tax provision and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for equity-based compensation expense, debt extinguishment costs, loss on divestiture, (gain) loss on foreign currency derivatives and transaction-related expenses. We define Adjusted income from continuing operations as net (loss) income adjusted for income from discontinued operations, provision for income taxes, debt extinguishment costs, loss on divestiture, transaction-related expenses, (gain) loss on foreign currency derivative and income tax provision reflecting tax effect of adjustments attributable to Acadia. | ||
EBITDA, Adjusted EBITDA, Adjusted income from continuing operations and constant currency adjusted income from continuing operations are supplemental measures of our performance and are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). EBITDA, Adjusted EBITDA, Adjusted income from continuing operations and constant currency adjusted income from continuing operations are not measures of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as measures of our liquidity. Our measurements of EBITDA, Adjusted EBITDA, Adjusted income from continuing operations and constant currency adjusted income from continuing operations may not be comparable to similarly titled measures of other companies. We have included information concerning EBITDA, Adjusted EBITDA, Adjusted income from continuing operations and constant currency adjusted income from continuing operations in this press release because we believe that such information is used by certain investors as measures of a company’s historical performance. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of issuers of equity securities, many of which present EBITDA, Adjusted EBITDA, Adjusted income from continuing operations and constant currency adjusted income from continuing operations when reporting their results. Our presentation of EBITDA, Adjusted EBITDA, Adjusted income from continuing operations and constant currency adjusted income from continuing operations should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. | ||
Foreign currency exchange rate fluctuations affect the amounts reported from translating U.K. revenues and expenses into USD. These rate fluctuations can have a significant effect on our reported operating results. As a supplement to our reported operating results, we present constant currency financial information. We use constant currency financial information to provide a framework to assess how our business performed excluding the effects of changes in foreign currency translation rates. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses. To calculate financial information on a constant currency basis, financial information in the current period for amounts recorded in GBP is translated into USD at the average exchange rates that were in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). | ||
The Company is not able to provide a reconciliation of projected adjusted earnings per diluted share, where provided, to expected results due to the unknown effect, timing and potential significance of transaction-related expenses and the tax effect of such expenses. | ||
(a) Represents the equity-based compensation expense of Acadia. | ||
(b) For the three and nine months ended September 30, 2016, represents debt extinguishment costs of $3.4 million recorded in connection with the Tranche B-2 Repricing Amendment. For the three and nine months ended September 30, 2015, represents debt extinguishment costs related to the repayment of $88.3 million of the Company's 12.875% Senior Notes due 2018 on September 18, 2015, including a prepayment premium of $6.9 million and the write-off of $3.1 million of deferred financing costs. | ||
(c) Loss on the planned divestiture in the U.K. includes an allocation of goodwill to the U.K. disposal group of approximately $106.9 million, estimated transaction-related expenses of approximately $25.6 million and a loss on the sale of properties of $42.2 million. | ||
(d) Represents the change in fair value of foreign currency derivatives purchased by Acadia related to (i) acquisitions in the U.K. and (ii) transfers of cash between the U.S. and U.K. under the Company’s cash management and foreign currency risk management programs. | ||
(e) Represents transaction-related expenses incurred by Acadia related to acquisitions. | ||
(f) Represents the income tax provision adjusted to reflect the tax effect of the adjustments to income from continuing operations based on tax rates of 21.8% and 25.6% for the three months ended September 30, 2016 and 2015, respectively, and 21.8% and 29.2% for the nine months ended September 30, 2016 and 2015, respectively. | ||
(g) For the three and nine months ended September 30, 2016, approximately 0.2 million and 0.3 million, respectively, of the outstanding restricted stock and shares of common stock issuable upon exercise of outstanding stock option awards have been included in the calculation of weighted-average shares outstanding-diluted. These shares are excluded from the calculation of diluted earnings per share in the condensed consolidated statement of operations because the net loss for the three and nine months ended September 30, 2016 causes such securities to be anti-dilutive. | ||
(h) Calculated on a constant currency basis whereby financial information in the current period for amounts recorded GBP is translated into USD at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). The exchange rate used for the three and nine months ended September 30, 2016 is 1.55 and 1.53, respectively. | ||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161101006675/en/
Source:
Acadia Healthcare Company, Inc.
Brent Turner, President,
615-861-6000