Acadia Healthcare Reports Fourth Quarter 2024 Results
02.27.2025
Company Provides Full Year and First Quarter 2025 Guidance, Announces
Fourth Quarter 2024 Highlights
-
Revenue totaled
$774.2 million , an increase of 4.2% over the fourth quarter of 2023. - Same facility revenue increased 4.7% compared with the fourth quarter of 2023, including an increase in patient days of 3.2% and an increase in revenue per patient day of 1.4%.
-
Net income attributable to Acadia totaled
$32.6 million , or$0.35 per diluted share. -
Adjusted income attributable to Acadia totaled
$59.2 million , or$0.64 per diluted share. -
Adjusted EBITDA totaled
$153.1 million , including a$14.3 million professional liability reserve adjustment related to years prior to 2024, and a$5.0 million impact related to the decision to close one facility during the fourth quarter. - Added 577 newly licensed beds during the fourth quarter, including 233 beds to existing facilities and 344 licensed beds from newly constructed facilities.
-
Completed construction on approximately 1,100 beds in the fourth quarter, bringing the full year total to approximately 1,300 newly constructed beds. Total startup losses related to new facilities incurred in the fourth quarter were
$11.2 million . -
Announced new
$300 million share repurchase authorization.
Adjusted income attributable to Acadia and Adjusted EBITDA are non-GAAP financial measures. A reconciliation of all non-GAAP financial measures in this press release begins on page 9.
Fourth Quarter Results
Strategic Investments for Long-Term Growth
During the fourth quarter of 2024, the Company continued to advance its growth strategy, capping off a year of accelerated expansion across the care continuum. Acadia added 233 beds to existing facilities and 344 beds to new facilities, for a total of 577 newly licensed beds in the fourth quarter.
In addition, Acadia added one new comprehensive treatment center (“CTC”), extending the Company’s market reach to 163 CTCs across 33 states, treating over 72,000 patients daily in this critical area of care.
During the fourth quarter, the Company commenced operations at three new facilities, including a joint venture hospital in partnership with Intermountain Health in
Cash and Liquidity
Acadia has continued to maintain a strong financial position with sufficient capital to support continued growth and make strategic investments in its business. As of
Share Repurchase Authorization
Acadia today announced that its Board of Directors has authorized a share repurchase program for up to
2025 Financial Guidance
Acadia today established financial guidance for 2025, as follows:
|
|
2025 |
|
Revenue |
|
|
Adjusted EBITDA |
|
|
Adjusted earnings per diluted share |
|
|
Interest expense |
|
|
Tax rate |
25% to 26% |
|
Depreciation and amortization expense |
|
|
Stock compensation expense |
|
|
Operating cash flows |
|
|
Expansion capital expenditures |
|
|
Maintenance and IT capital expenditures |
|
|
Total bed additions |
800 to 1,000 beds |
The Company’s full-year guidance includes the following assumptions:
- Same-facility volume growth in the low-to-mid-single digits.
- Same-facility revenue per patient day growth in the low single digits.
-
A year-over-year increase in startup losses of approximately
$25 million , totaling approximately$50-$55 million in losses for the full year 2025 related to newly opened facilities. -
A net increase in Medicaid supplemental payments of
$0 to$15 million for the full year 2025, inclusive of the newTennessee program which the Company expects to recognize subsequent to the first quarter of 2025. -
2024 consolidated results include approximately
$60 million of revenue and$5 million of adjusted EBITDA from facilities subsequently closed.
The Company also established financial guidance for the first quarter of 2025, as follows:
|
First Quarter 2025 |
|
|
Revenue |
|
|
Adjusted EBITDA |
|
The Company’s first quarter 2025 guidance includes the following assumptions:
-
Startup losses of approximately
$20 million , representing a year-over-year increase of approximately$15 million in the first quarter of 2025 compared to the first quarter of 2024. -
A year-over-year net decrease in Medicaid supplemental payments of approximately
$10 to$15 million in the first quarter of 2025 compared to the first quarter of 2024.
Long-Term Outlook
Today, the Company provided an update to its long-term growth targets as follows.
For the three-year period beginning 2026:
- 7% to 9% average annual revenue growth
- 8% to 10% average annual adjusted EBITDA growth
- 600 to 800 new bed additions per year
The Company’s guidance does not include the impact of any future acquisitions, divestitures, transaction, legal and other costs or non-recurring legal settlements expense.
Conference Call
Acadia will hold a conference call to discuss its fourth 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” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements related to our strategy, growth, anticipated operating results for future periods and our share repurchase program. 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) potential difficulties in successfully integrating the operations of acquired facilities or realizing the expected benefits and synergies of our facility expansions, acquisitions, joint ventures and de novo transactions; (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 government and commercial payors; (iv) the occurrence of patient incidents, governmental investigations, litigation and adverse regulatory actions, which could adversely affect the price of our common stock and result in substantial payments and incremental regulatory burdens; (v) the risk that Acadia may not generate sufficient cash from operations to service its debt and meet its working capital and capital expenditure requirements; (vi) potential disruptions to our information technology systems or a cybersecurity incident; and (vii) potential operating difficulties, including, without limitation, disruption to the
Share Repurchase Authorization Disclaimer
Acadia’s share repurchase program permits the Company to make repurchases on a discretionary basis as determined by management, subject to market conditions, applicable legal requirements, available liquidity, compliance with the Company's debt agreements, and other appropriate factors. Repurchases under the share repurchase program are to be made through open market or privately negotiated transactions and may be made pursuant to plans entered into in accordance with Rule 10b5-1 and/or Rule 10b-18 of the Exchange Act. The share repurchase program does not have a termination date, does not obligate Acadia to acquire any particular amount of common stock, and may be modified, extended, suspended, or discontinued by the Company’s Board of Directors at any time without prior notice. No assurance can be given that any particular amount of common stock will be repurchased.
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| Revenue |
$ |
774,238 |
|
$ |
742,800 |
|
$ |
3,153,963 |
|
$ |
2,928,738 |
|
||||
| Salaries, wages and benefits (including equity-based compensation expense of |
|
425,597 |
|
|
400,370 |
|
|
1,691,024 |
|
|
1,572,330 |
|
||||
| Professional fees |
|
47,470 |
|
|
45,545 |
|
|
189,706 |
|
|
176,013 |
|
||||
| Supplies |
|
28,560 |
|
|
26,680 |
|
|
112,713 |
|
|
105,992 |
|
||||
| Rents and leases |
|
11,720 |
|
|
11,672 |
|
|
47,861 |
|
|
46,552 |
|
||||
| Other operating expenses |
|
117,888 |
|
|
98,108 |
|
|
440,788 |
|
|
388,906 |
|
||||
| Income from provider relief fund |
|
— |
|
|
(1,977 |
) |
|
— |
|
|
(6,419 |
) |
||||
| Depreciation and amortization |
|
39,541 |
|
|
35,380 |
|
|
149,595 |
|
|
132,349 |
|
||||
| Interest expense, net |
|
30,071 |
|
|
20,474 |
|
|
116,368 |
|
|
82,125 |
|
||||
| Legal settlements expense |
|
— |
|
|
— |
|
|
— |
|
|
394,181 |
|
||||
| Loss on impairment |
|
5,817 |
|
|
1,096 |
|
|
17,276 |
|
|
9,790 |
|
||||
| Gain on sale of property |
|
— |
|
|
(9,747 |
) |
|
— |
|
|
(9,747 |
) |
||||
| Transaction, legal and other costs |
|
29,566 |
|
|
35,234 |
|
|
46,753 |
|
|
62,026 |
|
||||
| Total expenses |
|
736,230 |
|
|
662,835 |
|
|
2,812,084 |
|
|
2,954,098 |
|
||||
| Income (loss) before income taxes |
|
38,008 |
|
|
79,965 |
|
|
341,879 |
|
|
(25,360 |
) |
||||
| Provision for (benefit from) income taxes |
|
4,479 |
|
|
20,208 |
|
|
77,395 |
|
|
(9,699 |
) |
||||
| Net income (loss) |
|
33,529 |
|
|
59,757 |
|
|
264,484 |
|
|
(15,661 |
) |
||||
| Net income attributable to noncontrolling interests |
|
(914 |
) |
|
(2,028 |
) |
|
(8,872 |
) |
|
(6,006 |
) |
||||
| Net income (loss) attributable to |
$ |
32,615 |
|
$ |
57,729 |
|
$ |
255,612 |
|
$ |
(21,667 |
) |
||||
| Earnings (loss) per share attributable to |
||||||||||||||||
| Basic |
$ |
0.36 |
|
$ |
0.63 |
|
$ |
2.79 |
|
$ |
(0.24 |
) |
||||
| Diluted |
$ |
0.35 |
|
$ |
0.63 |
|
$ |
2.78 |
|
$ |
(0.24 |
) |
||||
| Weighted-average shares outstanding: | ||||||||||||||||
| Basic |
|
91,769 |
|
|
91,238 |
|
|
91,621 |
|
|
90,949 |
|
||||
| Diluted |
|
91,986 |
|
|
91,872 |
|
|
92,059 |
|
|
90,949 |
|
||||
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
|
|
||||||
|
2024 |
|
2023 |
||||
| (In thousands) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents |
$ |
76,305 |
$ |
100,073 |
||
| Accounts receivable, net |
|
365,339 |
|
361,451 |
||
| Other current assets |
|
135,848 |
|
134,476 |
||
| Total current assets |
|
577,492 |
|
596,000 |
||
| Property and equipment, net |
|
2,853,193 |
|
2,266,610 |
||
|
|
2,264,851 |
|
2,225,962 |
|||
| Intangible assets, net |
|
70,003 |
|
73,278 |
||
| Deferred tax assets |
|
20,964 |
|
6,658 |
||
| Operating lease right-of-use assets |
|
118,369 |
|
117,780 |
||
| Other assets |
|
52,043 |
|
72,553 |
||
| Total assets |
$ |
5,956,915 |
$ |
5,358,841 |
||
| LIABILITIES AND EQUITY | ||||||
| Current liabilities: | ||||||
| Current portion of long-term debt |
$ |
76,816 |
$ |
29,219 |
||
| Accounts payable |
|
232,704 |
|
156,132 |
||
| Accrued salaries and benefits |
|
155,426 |
|
141,901 |
||
| Current portion of operating lease liabilities |
|
25,462 |
|
26,268 |
||
| Other accrued liabilities |
|
87,511 |
|
532,261 |
||
| Total current liabilities |
|
577,919 |
|
885,781 |
||
| Long-term debt |
|
1,880,093 |
|
1,342,548 |
||
| Deferred tax liabilities |
|
83,946 |
|
1,931 |
||
| Operating lease liabilities |
|
101,828 |
|
100,808 |
||
| Other liabilities |
|
122,298 |
|
140,113 |
||
| Total liabilities |
|
2,766,084 |
|
2,471,181 |
||
| Redeemable noncontrolling interests |
|
117,116 |
|
105,686 |
||
| Equity: | ||||||
| Common stock |
|
918 |
|
913 |
||
| Additional paid-in capital |
|
2,685,464 |
|
2,649,340 |
||
| Retained earnings |
|
387,333 |
|
131,721 |
||
| Total equity |
|
3,073,715 |
|
2,781,974 |
||
| Total liabilities and equity |
$ |
5,956,915 |
$ |
5,358,841 |
||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
|
Year Ended |
||||||||
|
2024 |
|
2023 |
||||||
| (In thousands) | ||||||||
| Operating activities: | ||||||||
| Net income (loss) |
$ |
264,484 |
|
$ |
(15,661 |
) |
||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization |
|
149,595 |
|
|
132,349 |
|
||
| Amortization of debt issuance costs |
|
4,088 |
|
|
3,322 |
|
||
| Equity-based compensation expense |
|
37,113 |
|
|
32,289 |
|
||
| Deferred income taxes |
|
67,708 |
|
|
(93,984 |
) |
||
| Legal settlements expense |
|
— |
|
|
394,181 |
|
||
| Loss on impairment |
|
17,276 |
|
|
9,790 |
|
||
| Gain on sale of property |
|
— |
|
|
(9,747 |
) |
||
| Other |
|
(4,686 |
) |
|
3,168 |
|
||
| Change in operating assets and liabilities, net of effect of acquisitions: | ||||||||
| Accounts receivable, net |
|
(2,329 |
) |
|
(39,012 |
) |
||
| Other current assets |
|
(7,462 |
) |
|
8,880 |
|
||
| Other assets |
|
521 |
|
|
989 |
|
||
| Accounts payable and other accrued liabilities |
|
(420,893 |
) |
|
17,404 |
|
||
| Accrued salaries and benefits |
|
12,115 |
|
|
16,532 |
|
||
| Other liabilities |
|
12,163 |
|
|
10,815 |
|
||
| Government relief funds |
|
— |
|
|
(8,975 |
) |
||
| Net cash provided by operating activities |
|
129,693 |
|
|
462,340 |
|
||
| Investing activities: | ||||||||
| Cash paid for acquisitions, net of cash acquired |
|
(53,550 |
) |
|
(349 |
) |
||
| Cash paid for capital expenditures |
|
(690,385 |
) |
|
(424,133 |
) |
||
| Proceeds from sale of property and equipment |
|
10,435 |
|
|
29,422 |
|
||
| Other |
|
(2,979 |
) |
|
(2,159 |
) |
||
| Net cash used in investing activities |
|
(736,479 |
) |
|
(397,219 |
) |
||
| Financing activities: | ||||||||
| Borrowings on long-term debt |
|
350,000 |
|
|
— |
|
||
| Borrowings on revolving credit facility |
|
305,000 |
|
|
40,000 |
|
||
| Principal payments on revolving credit facility |
|
(15,000 |
) |
|
(35,000 |
) |
||
| Principal payments on long-term debt |
|
(56,331 |
) |
|
(21,250 |
) |
||
| Payment of debt issuance costs |
|
(1,518 |
) |
|
— |
|
||
| Repurchase of shares for payroll tax withholding, net of proceeds from stock option exercises |
|
(1,341 |
) |
|
(44,335 |
) |
||
| Contributions from noncontrolling partners in joint ventures |
|
5,180 |
|
|
2,958 |
|
||
| Distributions to noncontrolling partners in joint ventures |
|
(2,972 |
) |
|
(5,107 |
) |
||
| Other |
|
— |
|
|
37 |
|
||
| Net cash provided by (used in) financing activities |
|
583,018 |
|
|
(62,697 |
) |
||
| Net (decrease) increase in cash and cash equivalents |
|
(23,768 |
) |
|
2,424 |
|
||
| Cash and cash equivalents at beginning of the period |
|
100,073 |
|
|
97,649 |
|
||
| Cash and cash equivalents at end of the period |
$ |
76,305 |
|
$ |
100,073 |
|
||
|
|
|
|||||||
| Effect of acquisitions: | ||||||||
| Assets acquired, excluding cash |
$ |
59,235 |
|
$ |
6,766 |
|
||
| Liabilities assumed |
|
(4,185 |
) |
|
(128 |
) |
||
| Contingent consideration issued in connection with an acquisition |
|
(1,500 |
) |
|
— |
|
||
| Redeemable noncontrolling interest resulting from an acquisition |
|
— |
|
|
(6,289 |
) |
||
| Cash paid for acquisitions, net of cash acquired |
$ |
53,550 |
|
$ |
349 |
|
||
| Operating Statistics (1) | |||||||||||||||||||
| (Unaudited, $ in thousands except per |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
Year Ended |
|||||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
|||||||||
| Same Facility Results (2) | |||||||||||||||||||
| Revenue |
$ |
765,014 |
$ |
730,836 |
4.7 |
% |
$ |
3,099,970 |
$ |
2,879,244 |
7.7 |
% |
|||||||
|
|
765,763 |
|
742,011 |
3.2 |
% |
|
3,098,132 |
|
3,002,524 |
3.2 |
% |
||||||||
| Admissions |
|
47,866 |
|
45,917 |
4.2 |
% |
|
195,483 |
|
193,047 |
1.3 |
% |
|||||||
| Average Length of Stay (3) |
|
16.0 |
|
16.2 |
-1.0 |
% |
|
15.8 |
|
15.6 |
1.9 |
% |
|||||||
| Revenue per |
$ |
999 |
$ |
985 |
1.4 |
% |
$ |
1,001 |
$ |
959 |
4.3 |
% |
|||||||
| Adjusted EBITDA |
$ |
196,412 |
$ |
209,828 |
-6.4 |
% |
$ |
881,261 |
$ |
828,986 |
6.3 |
% |
|||||||
| Adjusted EBITDA excluding income from provider relief fund (4) |
$ |
196,412 |
$ |
207,851 |
-5.5 |
% |
$ |
881,261 |
$ |
822,567 |
7.1 |
% |
|||||||
| Total Facility Results | |||||||||||||||||||
| Revenue |
$ |
774,238 |
$ |
742,800 |
4.2 |
% |
$ |
3,153,963 |
$ |
2,928,738 |
7.7 |
% |
|||||||
|
|
776,456 |
|
757,345 |
2.5 |
% |
|
3,151,933 |
|
3,063,454 |
2.9 |
% |
||||||||
| Admissions |
|
48,679 |
|
47,295 |
2.9 |
% |
|
199,761 |
|
197,532 |
1.1 |
% |
|||||||
| Average Length of Stay (3) |
|
16.0 |
|
16.0 |
-0.4 |
% |
|
15.8 |
|
15.5 |
1.7 |
% |
|||||||
| Revenue per |
$ |
997 |
$ |
981 |
1.7 |
% |
$ |
1,001 |
$ |
956 |
4.7 |
% |
|||||||
| Adjusted EBITDA |
$ |
184,359 |
$ |
205,947 |
-10.5 |
% |
$ |
849,411 |
$ |
817,110 |
4.0 |
% |
|||||||
| Adjusted EBITDA excluding income from provider relief fund (4) |
$ |
184,359 |
$ |
203,970 |
-9.6 |
% |
$ |
849,411 |
$ |
810,691 |
4.8 |
% |
|||||||
| (1) | Total facility and same facility results may not be indicative of the overall performance of our business and should not be considered as alternatives for net income or any other performance measures in accordance with GAAP (as defined herein). | ||||||||||||||||||
| (2) | Same facility results for the periods presented include facilities we have operated for more than one year and exclude certain closed services. | ||||||||||||||||||
| (3) | Average length of stay is defined as patient days divided by admissions. | ||||||||||||||||||
| (4) | For the three months and year ended |
||||||||||||||||||
| Reconciliation of Net Income Attributable to Same Facility Adjusted EBITDA and Same Facility Adjusted EBITDA Excluding Income from |
||||||||||||||||
| (Unaudited) | ||||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||
| (in thousands) | ||||||||||||||||
| Net income (loss) attributable to |
$ |
32,615 |
|
$ |
57,729 |
|
$ |
255,612 |
|
$ |
(21,667 |
) |
||||
| Net income attributable to noncontrolling interests |
|
914 |
|
|
2,028 |
|
|
8,872 |
|
|
6,006 |
|
||||
| Provision for (benefit from) income taxes |
|
4,479 |
|
|
20,208 |
|
|
77,395 |
|
|
(9,699 |
) |
||||
| Interest expense, net |
|
30,071 |
|
|
20,474 |
|
|
116,368 |
|
|
82,125 |
|
||||
| Depreciation and amortization |
|
39,541 |
|
|
35,380 |
|
|
149,595 |
|
|
132,349 |
|
||||
| EBITDA |
|
107,620 |
|
|
135,819 |
|
|
607,842 |
|
|
189,114 |
|
||||
| Adjustments: | ||||||||||||||||
| Equity-based compensation expense (a) |
|
10,099 |
|
|
9,149 |
|
|
37,113 |
|
|
32,289 |
|
||||
| Transaction, legal and other costs (b) |
|
29,566 |
|
|
35,234 |
|
|
46,753 |
|
|
62,026 |
|
||||
| Legal settlements expense (c) |
|
— |
|
|
— |
|
|
— |
|
|
394,181 |
|
||||
| Loss on impairment (d) |
|
5,817 |
|
|
1,096 |
|
|
17,276 |
|
|
9,790 |
|
||||
| Gain on sale of property (e) |
|
— |
|
|
(9,747 |
) |
|
— |
|
|
(9,747 |
) |
||||
| Adjusted EBITDA |
$ |
153,102 |
|
$ |
171,551 |
|
$ |
708,984 |
|
$ |
677,653 |
|
||||
| Corporate general and administrative costs (f) |
|
(31,257 |
) |
|
(34,396 |
) |
|
(140,427 |
) |
|
(139,457 |
) |
||||
| Total Facility Adjusted EBITDA |
|
184,359 |
|
|
205,947 |
|
|
849,411 |
|
|
817,110 |
|
||||
| De novos, acquisitions, and closed facilities (g) |
|
(12,053 |
) |
|
(3,881 |
) |
|
(31,850 |
) |
|
(11,876 |
) |
||||
| Same Facility Adjusted EBITDA |
$ |
196,412 |
|
$ |
209,828 |
|
$ |
881,261 |
|
$ |
828,986 |
|
||||
| Adjusted EBITDA |
$ |
153,102 |
|
$ |
171,551 |
|
$ |
708,984 |
|
$ |
677,653 |
|
||||
| Income from provider relief fund |
|
— |
|
|
(1,977 |
) |
|
— |
|
|
(6,419 |
) |
||||
| Adjusted EBITDA excluding income from provider relief fund |
|
153,102 |
|
|
169,574 |
|
|
708,984 |
|
|
671,234 |
|
||||
| Corporate general and administrative costs (f) |
|
(31,257 |
) |
|
(34,396 |
) |
|
(140,427 |
) |
|
(139,457 |
) |
||||
| Total Facility Adjusted EBITDA excluding income from provider relief fund |
|
184,359 |
|
|
203,970 |
|
|
849,411 |
|
|
810,691 |
|
||||
| De novos, acquisitions, and closed facilities (g) |
|
(12,053 |
) |
|
(3,881 |
) |
|
(31,850 |
) |
|
(11,876 |
) |
||||
| Same Facility Adjusted EBITDA excluding income from provider relief fund |
$ |
196,412 |
|
$ |
207,851 |
|
$ |
881,261 |
|
$ |
822,567 |
|
||||
| See footnotes on pages 11-12. | ||||||||||||||||
| Reconciliation of Net Income Attributable to |
||||||||||||||
| Adjusted Income Attributable to |
||||||||||||||
| (Unaudited) | ||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
| (in thousands, except per share amounts) | ||||||||||||||
| Net income (loss) attributable to |
$ |
32,615 |
$ |
57,729 |
|
$ |
255,612 |
$ |
(21,667 |
) |
||||
| Adjustments to income: | ||||||||||||||
| Transaction, legal and other costs (b) |
|
29,566 |
|
35,234 |
|
|
46,753 |
|
62,026 |
|
||||
| Legal settlements expense (c) |
|
— |
|
— |
|
|
— |
|
394,181 |
|
||||
| Loss on impairment (d) |
|
5,817 |
|
1,096 |
|
|
17,276 |
|
9,790 |
|
||||
| Gain on sale of property (e) |
|
— |
|
(9,747 |
) |
|
— |
|
(9,747 |
) |
||||
| Provision for (benefit from) income taxes |
|
4,479 |
|
20,208 |
|
|
77,395 |
|
(9,699 |
) |
||||
| Adjusted income before income taxes attributable to |
|
72,477 |
|
104,520 |
|
|
397,036 |
|
424,884 |
|
||||
| Income tax effect of adjustments to income (h) |
|
13,326 |
|
24,750 |
|
|
92,940 |
|
104,697 |
|
||||
| Adjusted income attributable to |
|
59,151 |
|
79,770 |
|
|
304,096 |
|
320,187 |
|
||||
| Income from provider relief fund, net of taxes |
|
— |
|
(1,441 |
) |
|
— |
|
(4,678 |
) |
||||
| Adjusted income attributable to |
$ |
59,151 |
$ |
78,329 |
|
$ |
304,096 |
$ |
315,509 |
|
||||
| Weighted-average shares outstanding - diluted (i) |
|
91,986 |
|
91,872 |
|
|
92,059 |
|
91,826 |
|
||||
| Adjusted income attributable to |
$ |
0.64 |
$ |
0.87 |
|
$ |
3.30 |
$ |
3.49 |
|
||||
| Income from provider relief fund, net of taxes, per diluted share |
|
— |
|
(0.02 |
) |
|
— |
|
(0.05 |
) |
||||
| Adjusted income attributable to |
$ |
0.64 |
$ |
0.85 |
|
$ |
3.30 |
$ |
3.44 |
|
||||
| See footnotes on pages 11-12. | ||||||||||||||
| Footnotes | |
| We have included certain financial measures in this press release, including those listed below, which are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the |
|
| • EBITDA: net income attributable to |
|
| • Adjusted EBITDA: EBITDA adjusted for equity-based compensation expense, transaction, legal and other costs, legal settlements expense, loss on impairment and gain on sale of property. | |
| • Adjusted EBITDA excluding income from provider relief fund: Adjusted EBITDA adjusted for income from provider relief fund. | |
| • Adjusted income before income taxes attributable to |
|
| • Adjusted income attributable to |
|
| • Adjusted income attributable to |
|
| • Total facility adjusted EBITDA: Adjusted EBITDA adjusted for general and administrative costs related to our corporate functions. General and administrative costs directly related to the facilities are included in total facility results. | |
| • Same facility adjusted EBITDA: Adjusted EBITDA for facilities and services to those facilities operated in both the current and prior year. These metrics exclude the operating results associated with facilities under operation for less than one year and facilities acquired, divested or removed from service during the current or prior year. | |
| 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 |
|
| Total facility results include operating results for all of our facilities and services but exclude general and administrative costs related to our corporate functions. Such costs related to our corporate functions include, amongst others, costs for accounting and finance, information systems, human resources, legal and operational and executive leadership. General and administrative costs directly related to the facilities are included in facility results. Such costs directly related to our facilities include, amongst others, labor at the facility level, insurance, including property, professional, legal and general liability insurance, hospital supplies, including medication, utilities and food service, and general maintenance costs for the facility. We determine which general and administrative costs to exclude and include in total facility results by ensuring those costs directly associated with facility operations are captured at the facility level for reporting. Note that total facility costs include those related to new facilities and the cost of closure and run-out costs related to facilities we have closed. We believe that providing results on a total facility basis is helpful to our investors as a measure of our financial and operating performance because it neutralizes the impact of corporate-level items that do not arise out of our core operations at our facilities. | |
| Same facility results include operating results only for facilities and services operated in both the current and prior year. These metrics exclude the operating results associated with facilities under operation for less than one year and facilities acquired during the current or prior year, as well as facilities divested or removed from service. We believe that providing results on a same facility basis is helpful to investors because it neutralizes the impact of new facilities that are in early stages of operation and facilities that we no longer operate, each of which may distort investors’ understanding of the Company’s underlying performance at our existing and continuing facilities. Further, we believe that providing same facility information is helpful to our investors as a measure of the financial and operating performance of our existing and continuing facilities on a comparable basis, and same facility results provide investors with information useful in understanding underlying organic growth in such facilities. For these reasons, we believe that same facility results are particularly useful during periods of significant expansion or contraction. | |
| Total facility results reflect adjustments that are intended to provide the specific presentation described above, and same facility results reflect adjustments that may be irregular in timing from period to period related to newly opened or acquired facilities or facilities that we no longer operate, and may omit certain results that investors may view as important. Total facility and same facility results may therefore not be indicative of the overall performance of our business and should be not be considered as alternatives for net income or any other performance measures derived in accordance with GAAP. |
|
| The Company is not able to provide a reconciliation of projected Adjusted EBITDA and 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. | |
| Footnotes (continued) | ||||||||||||
| (a) Represents the equity-based compensation expense of Acadia. Equity-based compensation expense is excluded from Adjusted EBITDA because Acadia believes that the cost of equity awards granted to employees does not contribute to the earnings potentially available for distributions to its equity holders or reinvestment into its business. | ||||||||||||
| (b) Represents transaction, legal, and other costs incurred by Acadia primarily related to the following categories: (1) government investigations; (2) termination and restructuring costs; (3) legal, accounting, and other acquisition-related costs; and (4) management transition costs. Government investigations include legal fees and settlement costs related to certain litigation. Termination and restructuring costs include costs, net of gains, incurred related to the closure and disposition of certain facilities or contract amendments. Legal, accounting and other acquisition-related costs include costs incurred for the development of new facilities ( |
||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
| (in thousands) | ||||||||||||
| Government investigations |
$ |
24,986 |
$ |
15,360 |
$ |
30,620 |
$ |
18,796 |
||||
| Termination and restructuring costs |
|
2,631 |
|
1,887 |
|
1,362 |
|
7,242 |
||||
| Legal, accounting and other acquisition-related costs |
|
1,436 |
|
9,294 |
|
11,172 |
|
12,705 |
||||
| Management transition costs |
|
513 |
|
8,693 |
|
3,599 |
|
23,283 |
||||
| Transaction, legal, and other costs |
$ |
29,566 |
$ |
35,234 |
$ |
46,753 |
$ |
62,026 |
||||
| (c) Represents legal settlements expense related to the |
||||||||||||
| (d) Represents non-cash impairment charges related to the closure of certain facilities. Non-cash impairment charges related to the closure of certain facilities are excluded from Adjusted EBITDA because Acadia believes that these charges are unrelated to Acadia’s day-to-day business operations and not indicative of Acadia’s ongoing operating results. | ||||||||||||
| (e) Represents gain on facility property sale. Gains from facility property sales are excluded from Adjusted EBITDA because Acadia believes that these gains are unrelated to Acadia’s day-to-day business operations and not indicative of Acadia’s ongoing operating results. | ||||||||||||
| (f) Represents general and administrative costs related to our corporate functions, including, amongst others, costs for accounting and finance, information systems, human resources, legal and operational and executive leadership. We determine which general and administrative costs to exclude and include in total facility results by ensuring those costs directly associated with facility operations are captured at the facility level for reporting. Corporate general and administrative costs are excluded to present Total Facility Adjusted EBITDA because we believe that providing results on a total facility basis is helpful to our investors as a measure of the financial and operating performance of our core operations at our facilities. | ||||||||||||
| (g) Represents the portion of EBITDA for the periods presented attributable to de novos and acquired facilities in operation for less than one year and facilities closed during such period. De novos are newly developed facilities built by Acadia or with a joint venture partner. Such amounts are excluded from Adjusted EBITDA to present Same Facility Adjusted EBITDA because we believe providing same facility information is helpful to our investors as a measure of the financial and operating performance of our existing and continuing facilities on a comparable basis, and same facility results provide investors with information useful in understanding underlying organic growth in such facilities. | ||||||||||||
| (h) Represents the income tax effect of adjustments to income based on tax rates of 18.4% and 23.7% for the three months ended |
||||||||||||
| (i) For the year ended |
||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250227767001/en/
Investor Contact:
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(615) 861-6000
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