May 18, 2024

Company Provides Full Year and First Quarter 2024 Guidance

FRANKLIN, Tenn.–(BUSINESS WIRE)–Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) today announced financial results for the fourth quarter and year ended December 31, 2023.

Fourth Quarter Highlights

  • Revenue totaled $742.8 million, an increase of 10.0% over the fourth quarter of 2022
  • Same facility revenue increased 10.3% compared with the fourth quarter of 2022, including an increase in revenue per patient day of 7.1% and an increase in patient days of 2.9%
  • Net income attributable to Acadia totaled $57.7 million, or $0.63 per diluted share
  • Adjusted income attributable to Acadia was $78.3 million, or $0.85 per diluted share, excluding $0.02 of income from the Provider Relief Fund (“PRF”) established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act
  • Adjusted EBITDA was $169.6 million, an increase of 11.9% over the fourth quarter of 2022, excluding income from the PRF in both periods and the impact of a $5.9 million unfavorable adjustment to professional and general liability reserves recorded in the fourth quarter of 2022
  • Continued progress on the execution of the Company’s growth strategy through opening one de novo hospital, adding 98 beds to existing facilities and opening two comprehensive treatment centers (“CTCs”)
  • Announced a new joint venture partnership with Ascension Seton, in Austin, Texas, in early January 2024

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

Chris Hunter, Chief Executive Officer of Acadia, remarked, “Our fourth quarter performance capped off another outstanding year for Acadia. With solid execution, we continued to deliver strong results with impressive annual revenue growth of 12.2% and annual Adjusted EBITDA growth of 13.1%1. The momentum in our business reflects the robust demand for behavioral healthcare services. Our outstanding team of employees and clinicians across our facilities have been at the forefront of meeting this demand with safe, high-quality care for behavioral health and substance use issues.

“In addition to delivering our solid financial performance, we made significant improvements to our operations in 2023. Our strategic investments have enabled us to strengthen our core infrastructure and further enhance Acadia’s care delivery. We continue to focus on quality across our operations, leveraging technology and utilizing data to mitigate risk, drive efficiencies and support strong clinical outcomes. As demand for our services continues to accelerate, these investments support our ability to reach more patients and make a positive difference in more communities,” added Hunter.

1 Excluding income from the PRF

Strategic Investments for Long-Term Growth

During the fourth quarter of 2023 and into the first quarter of 2024, the Company continued to make progress in meeting its strategic growth objectives with the following accomplishments across its five defined growth pathways:

  • Facility Expansions – Added 98 beds to existing facilities in the fourth quarter, for a total of 302 new beds added in 2023. The Company expects to add more than 400 beds to existing facilities in 2024.
  • De Novo Facilities – Opened two CTCs, meeting the Company’s goal to open a total of six CTCs in 2023. Acadia opened the renovated 101-bed adult hospital and outpatient facility that are part of the Montrose Behavioral Health Hospital in Chicago, Illinois. During the fourth quarter, the Company also completed construction on an 80-bed inpatient acute care hospital, Coachella Valley Behavioral Health, in Indio, California, which will open later this year. Acadia plans to open up to 14 new CTCs in 2024.
  • Joint Ventures – In January 2024, Acadia announced a new joint venture partnership with Ascension Seton, one of the nation’s leading integrated healthcare systems, for a behavioral health hospital in Austin, Texas. This facility, expected to open later in 2024, marks the Company’s second joint venture partnership with Ascension. The Company also expects to open two other previously announced joint venture facilities in 2024, Intermountain Health in Denver, Colorado, and Henry Ford Health in Detroit, Michigan. Acadia has 21 joint venture partnerships for 22 hospitals, with 11 hospitals already in operation and 11 additional hospitals expected to open over the next few years.
  • Acquisitions – On February 22, 2024, the Company closed the previously announced acquisition of Turning Point Centers, a 76-bed specialty provider of substance use disorder and primary mental health treatment services that supports the Salt Lake City, Utah, metropolitan market.
  • Extend Continuum of Care – Expanded treatment options by adding 13 outpatient programs during the fourth quarter, bringing Acadia’s total to 39 outpatient programs added during 2023. These programs include Partial Hospitalization Programs (PHP), Intensive Outpatient Programs (IOP) or virtual services.

Cash and Liquidity

Maintaining a strong financial position to support growth investments and disciplined capital allocation are top priorities for Acadia. As of December 31, 2023, the Company had $100.1 million in cash and cash equivalents and $516.5 million available under its $600 million revolving credit facility with a net leverage ratio of approximately 1.9x. On January 18, 2024, the Company entered into an Amended Credit Agreement with its lenders to increase its Term Loan A by $350 million. On January 19, 2024, the Company paid $400 million for the settlement of the three cases related to the previously disclosed litigation in New Mexico.

Net leverage ratio is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures in this press release begins on page 9.

Looking Ahead

Hunter concluded, “The prevalence of behavioral health issues and related deaths is on the rise in our nation. A recent survey by the Centers for Disease Control and Prevention estimated that more than one in five U.S. adults, or nearly 60 million people, live with a mental illness, and over 46 million people have substance use disorders. These illnesses include different conditions that vary in degree of severity and require different modes of treatment. The breadth of our service lines is a key differentiator for Acadia and enhances our ability to support more patients with the appropriate level of high-quality care. With service lines across the continuum of care, strong clinical quality, and a focused operating model, we are well-positioned to continue to lead the behavioral health industry and address these critical needs across the United States. Our 2024 financial guidance reflects our confidence in our ability to drive continued impressive growth and profitability. We are proud of our progress over the past year and look forward to the significant opportunities ahead for Acadia to extend our market reach in 2024.”

Financial Guidance

Acadia today established financial guidance for 2024, as follows:

 

2024 Guidance Range

Revenue (1)

$3.18 to $3.25 billion

Adjusted EBITDA (1)

$730 to $770 million

Adjusted earnings per diluted share (1)

$3.40 to $3.70

Interest expense

$110 to $120 million

Tax rate

24.5% to 25.5%

Depreciation and amortization expense

$150 to $160 million

Stock compensation expense

$40 to $45 million

Operating cash flows

$525 to $575 million

Expansion capital expenditures

$425 to $475 million

Maintenance and IT capital expenditures

$90 to $110 million

 

 

Total bed additions, excluding acquisitions

Approx. 1,200 beds

(1)

Includes one-time payments from a state of approximately $10 million (or $0.09 per diluted share) for the year, of which approximately $7 million (or $0.06 per diluted share) was received in the first quarter of 2024

The Company also established financial guidance for the first quarter of 2024, as follows:

First Quarter 2024 Guidance Range

Revenue (2)

$775 to $785 million

Adjusted EBITDA (2)

$170 to $175 million

Adjusted earnings per diluted share (2)

$0.78 to $0.83

(2)

Includes a one-time payment from a state of approximately $7 million (or $0.06 per diluted share) received in the first quarter of 2024

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 7:00 a.m. Central Time/8:00 a.m. Eastern Time on Wednesday, February 28, 2024. A live webcast of the conference call will be available at www.acadiahealthcare.com in the “Investors” section of the website. The webcast of the conference call will be available for 30 days.

About Acadia

Acadia is a leading provider of behavioral healthcare services across the United States. As of December 31, 2023, Acadia operated a network of 253 behavioral healthcare facilities with approximately 11,200 beds in 38 states and Puerto Rico. With approximately 23,500 employees serving more than 75,000 patients daily, Acadia is the largest stand-alone behavioral healthcare company in the U.S. Acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics.

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) 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 U.S. economy and financial markets; reduced admissions and patient volumes; increased costs relating to labor, supply chain and other expenditures; changes in competition and client preferences; and general economic or industry conditions that may prevent Acadia from realizing the expected benefits of its business strategies. These factors and others are more fully described in Acadia’s periodic reports and other filings with the U.S. Securities and Exchange Commission.

 
Acadia Healthcare Company, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

(In thousands, except per share amounts)

 
Revenue

$

742,800

 

$

675,295

 

$

2,928,738

 

$

2,610,399

 

 
Salaries, wages and benefits (including equity-based compensation
expense of $9,149, $7,890, $32,289 and $29,635, respectively)

 

400,370

 

 

365,702

 

 

1,572,330

 

 

1,393,434

 

Professional fees

 

45,545

 

 

40,295

 

 

176,013

 

 

158,013

 

Supplies

 

26,680

 

 

25,909

 

 

105,992

 

 

100,200

 

Rents and leases

 

11,672

 

 

11,682

 

 

46,552

 

 

45,462

 

Other operating expenses

 

98,108

 

 

93,922

 

 

388,906

 

 

349,277

 

Income from provider relief fund

 

(1,977

)

 

(5,245

)

 

(6,419

)

 

(21,451

)

Depreciation and amortization

 

35,380

 

 

30,142

 

 

132,349

 

 

117,769

 

Interest expense, net

 

20,474

 

 

19,405

 

 

82,125

 

 

69,760

 

Legal settlements expense

 

 

 

 

 

394,181

 

 

 

Loss on impairment

 

1,096

 

 

 

 

9,790

 

 

 

Gain on sale of property

 

(9,747

)

 

 

 

(9,747

)

 

 

Transaction, legal and other costs

 

35,234

 

 

5,411

 

 

62,026

 

 

23,792

 

Total expenses

 

662,835

 

 

587,223

 

 

2,954,098

 

 

2,236,256

 

Income (loss) before income taxes

 

79,965

 

 

88,072

 

 

(25,360

)

 

374,143

 

Provision for (benefit from) income taxes

 

20,208

 

 

24,927

 

 

(9,699

)

 

94,110

 

Net income (loss)

 

59,757

 

 

63,145

 

 

(15,661

)

 

280,033

 

Net income attributable to noncontrolling interests

 

(2,028

)

 

(2,021

)

 

(6,006

)

 

(6,894

)

Net income (loss) attributable to Acadia Healthcare Company, Inc.

$

57,729

 

$

61,124

 

$

(21,667

)

$

273,139

 

 
Earnings (loss) per share attributable to Acadia Healthcare Company, Inc.
stockholders:
Basic

$

0.63

 

$

0.68

 

$

(0.24

)

$

3.05

 

Diluted

$

0.63

 

$

0.67

 

$

(0.24

)

$

2.98

 

 
Weighted-average shares outstanding:
Basic

 

91,238

 

 

89,897

 

 

90,949

 

 

89,680

 

Diluted

 

91,872

 

 

91,872

 

 

90,949

 

 

91,555

 

 
Acadia Healthcare Company, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
 

December 31,

2023

 

2022

(In thousands)

 
ASSETS
Current assets:
Cash and cash equivalents

$

100,073

$

97,649

Accounts receivable, net

 

361,451

 

322,439

Other current assets

 

134,476

 

86,037

Total current assets

 

596,000

 

506,125

Property and equipment, net

 

2,266,610

 

1,952,045

Goodwill

 

2,225,962

 

2,222,805

Intangible assets, net

 

73,278

 

76,041

Deferred tax assets

 

6,658

 

2,950

Operating lease right-of-use assets

 

117,780

 

135,238

Other assets

 

72,553

 

92,697

Total assets

$

5,358,841

$

4,987,901

 
 
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt

$

29,219

$

21,250

Accounts payable

 

156,132

 

104,723

Accrued salaries and benefits

 

141,901

 

125,298

Current portion of operating lease liabilities

 

26,268

 

26,463

Other accrued liabilities

 

532,261

 

110,592

Total current liabilities

 

885,781

 

388,326

Long-term debt

 

1,342,548

 

1,364,541

Deferred tax liabilities

 

1,931

 

92,588

Operating lease liabilities

 

100,808

 

116,429

Other liabilities

 

140,113

 

125,033

Total liabilities

 

2,471,181

 

2,086,917

Redeemable noncontrolling interests

 

105,686

 

88,257

Equity:
Common stock

 

913

 

899

Additional paid-in capital

 

2,649,340

 

2,658,440

Retained earnings

 

131,721

 

153,388

Total equity

 

2,781,974

 

2,812,727

Total liabilities and equity

$

5,358,841

$

4,987,901

 
Acadia Healthcare Company, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 

Year Ended December 31,

2023

 

2022

(In thousands)

Operating activities:
Net (loss) income

$

(15,661

)

$

280,033

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization

 

132,349

 

 

117,769

 

Amortization of debt issuance costs

 

3,322

 

 

3,261

 

Equity-based compensation expense

 

32,289

 

 

29,635

 

Deferred income taxes

 

(93,984

)

 

16,545

 

Legal settlements expense

 

394,181

 

 

 

Loss on impairment

 

9,790

 

 

 

Gain on sale of property

 

(9,747

)

 

 

Other

 

3,168

 

 

2,680

 

Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net

 

(39,012

)

 

(41,978

)

Other current assets

 

8,880

 

 

(17,626

)

Other assets

 

989

 

 

2,252

 

Accounts payable and other accrued liabilities

 

17,404

 

 

5,174

 

Accrued salaries and benefits

 

16,532

 

 

6,804

 

Other liabilities

 

10,815

 

 

15,090

 

Government relief funds

 

(8,975

)

 

(39,070

)

Net cash provided by operating activities

 

462,340

 

 

380,569

 

 
Investing activities:
Cash paid for acquisitions, net of cash acquired

 

(349

)

 

(9,507

)

Cash paid for capital expenditures

 

(424,133

)

 

(296,149

)

Proceeds from sale of property and equipment

 

29,422

 

 

7,074

 

Other

 

(2,159

)

 

(7,248

)

Net cash used in investing activities

 

(397,219

)

 

(305,830

)

 
Financing activities:
Borrowings on revolving credit facility

 

40,000

 

 

 

Principal payments on revolving credit facility

 

(35,000

)

 

(95,000

)

Principal payments on long-term debt

 

(21,250

)

 

(18,594

)

Repurchase of shares for payroll tax withholding, net of proceeds from stock option exercises

 

(44,335

)

 

(6,179

)

Contributions from noncontrolling partners in joint ventures

 

2,958

 

 

15,362

 

Distributions to noncontrolling partners in joint ventures

 

(5,107

)

 

(1,004

)

Acquisition of ownership interests from noncontrolling partners

 

 

 

(5,540

)

Other

 

37

 

 

52

 

Net cash used in financing activities

 

(62,697

)

 

(110,903

)

 
Net increase (decrease) in cash and cash equivalents

 

2,424

 

 

(36,164

)

Cash and cash equivalents at beginning of the period

 

97,649

 

 

133,813

 

Cash and cash equivalents at end of the period

$

100,073

 

$

97,649

 

 
Effect of acquisitions:
Assets acquired, excluding cash

$

6,766

 

$

10,756

 

Liabilities assumed

 

(128

)

 

(1,249

)

Redeemable noncontrolling interest resulting from an acquisition

 

(6,289

)

 

 

Cash paid for acquisitions, net of cash acquired

$

349

 

$

9,507

 

 
Acadia Healthcare Company, Inc.
Operating Statistics
(Unaudited, Revenue in thousands)
 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

 

 

2022

 

 

% Change

 

 

2023

 

 

 

2022

 

 

% Change

Same Facility Results (1)
Revenue

$

736,237

 

$

667,764

 

10.3

%

$

2,897,333

 

$

2,587,993

 

12.0

%

Patient Days

 

750,660

 

 

729,233

 

2.9

%

 

3,036,127

 

 

2,889,465

 

5.1

%

Admissions

 

46,481

 

 

45,788

 

1.5

%

 

194,215

 

 

185,218

 

4.9

%

Average Length of Stay (2)

 

16.1

 

 

15.9

 

1.4

%

 

15.6

 

 

15.6

 

0.2

%

Revenue per Patient Day

$

981

 

$

916

 

7.1

%

$

954

 

$

896

 

6.5

%

Adjusted EBITDA margin (3)

 

29.1

%

 

27.7

%

140 bps

 

29.1

%

 

28.5

%

60 bps
Adjusted EBITDA margin excluding income from provider relief fund

 

28.8

%

 

26.9

%

190 bps

 

28.9

%

 

27.7

%

120 bps
 
Facility Results
Revenue

$

742,800

 

$

675,295

 

10.0

%

$

2,928,738

 

$

2,610,399

 

12.2

%

Patient Days

 

757,345

 

 

736,695

 

2.8

%

 

3,063,454

 

 

2,916,500

 

5.0

%

Admissions

 

47,295

 

 

46,375

 

2.0

%

 

197,532

 

 

186,305

 

6.0

%

Average Length of Stay (2)

 

16.0

 

 

15.9

 

0.8

%

 

15.5

 

 

15.7

 

-0.9

%

Revenue per Patient Day

$

981

 

$

917

 

7.0

%

$

956

 

$

895

 

6.8

%

Adjusted EBITDA margin (3)

 

27.7

%

 

26.8

%

90 bps

 

27.9

%

 

27.9

%

0 bps
Adjusted EBITDA margin excluding income from provider relief fund

 

27.5

%

 

26.0

%

150 bps

 

27.7

%

 

27.1

%

60 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.
(3) For each of the three months ended December 31, 2023 and 2022, includes income from provider relief fund of $2.0 million and $5.2 million, respectively. For the year ended December 31, 2023 and 2022, includes income from provider relief fund of $6.4 million and $21.5 million, respectively.
Acadia Healthcare Company, Inc.
Reconciliation of Net (Loss) Income Attributable to Acadia Healthcare Company, Inc. to Adjusted EBITDA
(Unaudited)
 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

(in thousands)

 
Net income (loss) attributable to Acadia Healthcare Company, Inc.

$

57,729

 

$

61,124

 

$

(21,667

)

$

273,139

 

Net income attributable to noncontrolling interests

 

2,028

 

 

2,021

 

 

6,006

 

 

6,894

 

Provision for (benefit from) income taxes

 

20,208

 

 

24,927

 

 

(9,699

)

 

94,110

 

Interest expense, net

 

20,474

 

 

19,405

 

 

82,125

 

 

69,760

 

Depreciation and amortization

 

35,380

 

 

30,142

 

 

132,349

 

 

117,769

 

EBITDA

 

135,819

 

 

137,619

 

 

189,114

 

 

561,672

 

 
Adjustments:
Equity-based compensation expense (a)

 

9,149

 

 

7,890

 

 

32,289

 

 

29,635

 

Transaction, legal and other costs (b)

 

35,234

 

 

5,411

 

 

62,026

 

 

23,792

 

Legal settlements expense (c)

 

 

 

 

 

394,181

 

 

 

Loss on impairment (d)

 

1,096

 

 

 

 

9,790

 

 

 

Gain on sale of property (e)

 

(9,747

)

 

 

 

(9,747

)

 

 

Adjusted EBITDA

$

171,551

 

$

150,920

 

$

677,653

 

$

615,099

 

 
Adjusted EBITDA margin

 

23.1

%

 

22.3

%

 

23.1

%

 

23.6

%

 
Income from provider relief fund

 

(1,977

)

 

(5,245

)

 

(6,419

)

 

(21,451

)

Adjusted EBITDA excluding income from provider relief fund

$

169,574

 

$

145,675

 

$

671,234

 

$

593,648

 

 
Adjusted EBITDA margin excluding income from provider relief fund

 

22.8

%

 

21.6

%

 

22.9

%

 

22.7

%

 
See footnotes on page 11.
 
Acadia Healthcare Company, Inc.
Reconciliation of Net (Loss) Income Attributable to Acadia Healthcare Company, Inc. to
Adjusted Income Attributable to Acadia Healthcare Company, Inc.
(Unaudited)
 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

(in thousands, except per share amounts)

 
Net income (loss) attributable to Acadia Healthcare Company, Inc.

$

57,729

 

$

61,124

 

$

(21,667

)

$

273,139

 

 
Adjustments to income:
Transaction, legal and other costs (b)

 

35,234

 

 

5,411

 

 

62,026

 

 

23,792

 

Legal settlements expense (c)

 

 

 

 

 

394,181

 

 

 

Loss on impairment (d)

 

1,096

 

 

 

 

9,790

 

 

 

Gain on sale of property (e)

 

(9,747

)

 

 

 

(9,747

)

 

 

Provision for (benefit from) income taxes

 

20,208

 

 

24,927

 

 

(9,699

)

 

94,110

 

Adjusted income before income taxes attributable to
Acadia Healthcare Company, Inc.

 

104,520

 

 

91,462

 

 

424,884

 

 

391,041

 

Income tax effect of adjustments to income (f)

 

24,750

 

 

23,405

 

 

104,697

 

 

100,067

 

Adjusted income attributable to Acadia Healthcare Company, Inc.

 

79,770

 

 

68,057

 

 

320,187

 

 

290,974

 

Income from provider relief fund, net of taxes

 

(1,441

)

 

(3,822

)

 

(4,678

)

 

(15,631

)

Adjusted income attributable to Acadia Healthcare Company, Inc.
excluding income from provider relief fund

$

78,329

 

$

64,235

 

$

315,509

 

$

275,343

 

 
Weighted-average shares outstanding – diluted (g)

 

91,872

 

 

91,872

 

 

91,826

 

 

91,555

 

 
Adjusted income attributable to Acadia Healthcare Company, Inc.
per diluted share

$

0.87

 

$

0.74

 

$

3.49

 

$

3.18

 

Income from provider relief fund, net of taxes, per diluted share

 

(0.02

)

 

(0.04

)

 

(0.05

)

 

(0.17

)

Adjusted income attributable to Acadia Healthcare Company, Inc.,
excluding income from provider relief fund, per diluted share

$

0.85

 

$

0.70

 

$

3.44

 

$

3.01

 

 
See footnotes on page 11.
 
Acadia Healthcare Company, Inc.
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 SEC. These non-GAAP financial measures include, and are defined, as follows:
 
EBITDA: net income (loss) attributable to Acadia Healthcare Company, Inc. adjusted for net income attributable to noncontrolling interests, provision for (benefit from) income taxes, net interest expense and depreciation and amortization.
 
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 EBITDA margin: Adjusted EBITDA divided by revenue.
 
Adjusted EBITDA margin excluding income from provider relief fund: Adjusted EBITDA excluding income from provider relief fund divided by revenue.
 
Adjusted income before income taxes attributable to Acadia Healthcare Company, Inc.: net income (loss) attributable to Acadia Healthcare Company, Inc. adjusted for transaction, legal and other costs, legal settlements expense, loss on impairment, gain on sale of property and provision for (benefit from) income taxes.
 
Adjusted income attributable to Acadia Healthcare Company, Inc.: Adjusted income before income taxes attributable to Acadia Healthcare Company, Inc. adjusted for the income tax effect of adjustments to income.
 
Adjusted income attributable to Acadia Healthcare Company, Inc. excluding income from provider relief fund: Adjusted income attributable to Acadia Healthcare Company, Inc. adjusted for income from provider relief fund.
 
Net leverage ratio: Long-term debt (excluding $10.4 million of unamortized debt issuance costs, discount and premium) less cash and cash equivalents divided by Adjusted EBITDA for the trailing twelve months.
 
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 the United States (“GAAP”). The non-GAAP financial measures presented herein 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 these non-GAAP financial measures may not be comparable to similarly titled measures of other companies. We have included information concerning the non-GAAP financial measures 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 similar non-GAAP financial measures when reporting their results. Because the non-GAAP financial measures are not measurements determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies. Our presentation of these non-GAAP financial measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.
 
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.
 
(a) Represents the equity-based compensation expense of Acadia.
 
(b) Represents transaction, legal and other costs incurred by Acadia primarily related to legal, management transition, termination, restructuring, acquisition and other similar costs.
 
(c) Represents legal settlements expense related to the Desert Hills litigation.
 
(d) During the three months and year ended December 31, 2023, we recorded non-cash impairment charges totaling $1.1 million and $9.8 million, respectively, related to the closure of certain facilities.
 
(e) Represents gain on facility property sale.
 
(f) Represents the income tax effect of adjustments to income based on tax rates of 23.7% and 25.6% for the three months ended December 31, 2023 and 2022, respectively, and 24.6% and 25.6% for the years ended December 31, 2023 and 2022, respectively.
 
(g) For the year ended December 31, 2023, approximately 0.9 million outstanding shares of restricted stock units 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 year ended December 31, 2023 causes such securities to be anti-dilutive.

Contacts

Gretchen Hommrich

Vice President, Investor Relations

(615) 861-6000

Read full story here

The post Acadia Healthcare Reports Fourth Quarter 2023 Results appeared first on Daily Host News.

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