8-K
Acadia Healthcare Company, Inc. (ACHC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________________
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): February 28, 2022
______________________________
Acadia Healthcare Company, Inc.
(Exact Name of Registrant as Specified in Its Charter)
| Delaware | 001-35331 | 45-2492228 |
|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 6100 Tower Circle,<br> Suite 1000<br><br> <br>Franklin, Tennessee<br><br> <br>(Address of Principal Executive Offices) | 37067<br><br> <br>(Zip Code) | |
| --- | --- |
(615) 861-6000
(Registrant’s Telephone Number, including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value | ACHC | Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company ☐ | |
|---|---|
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with<br> any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
| --- | --- |
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On February 28, 2022, Acadia Healthcare Company, Inc. (“Acadia”) issued a press release announcing, among other things, Acadia’s operating and financial results for the fourth quarter and year ended December 31, 2021. The press release is furnished herewith as Exhibit 99 hereto and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits. |
| 99 | Press Release of Acadia Healthcare Company, Inc., dated February 28, 2022. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ACADIA HEALTHCARE COMPANY, INC. | ||
|---|---|---|
| Date: February 28, 2022 | By: /s/ Christopher L.<br> Howard | |
| Christopher L. Howard | ||
| Executive Vice President and General Counsel |
Exhibit 99
Acadia Healthcare Reports Fourth Quarter 2021 Results
Company Provides Full Year and First Quarter 2022 Guidance
FRANKLIN, Tenn.--(BUSINESS WIRE)--February 28, 2022--Acadia Healthcare Company, Inc. (NASDAQ: ACHC) today announced financial results for the fourth quarter and year ended December 31, 2021.
Fourth Quarter Highlights
- Revenue totaled $593.5 million
- Same facility revenue increased 10.7% as compared to the fourth quarter of 2020, including an increase in revenue per patient day of 7.8% and patient days of 2.7%
- Adjusted EBITDA totaled $156.1 million, which included $17.9 million of income from the Provider Relief Fund (“PRF”) established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act
- Net income attributable to Acadia Healthcare Company, Inc. totaled $70.3 million, or $0.77 per diluted share, and adjusted income from continuing operations attributable to Acadia stockholders totaled $73.6 million, or $0.81 per diluted share, which included $0.14 of income from the PRF established under the CARES Act
- Cash flows from operating activities totaled $97.8 million
Fourth Quarter Results
The Company reported revenue of $593.5 million for the fourth quarter of 2021, compared with $541.3 million for the fourth quarter of 2020. Adjusted EBITDA was $156.1 million for the fourth quarter of 2021, compared with $157.9 million for the same period last year. The Company recorded income of $17.9 million and $32.8 million in the fourth quarters of 2021 and 2020, respectively, related to the PRF established under the CARES Act. Excluding these funds, Adjusted EBITDA was $138.2 million for the fourth quarter of 2021, compared with $125.1 million for the fourth quarter of 2020.
Net income attributable to Acadia stockholders for the fourth quarter of 2021 was $70.3 million, or $0.77 per diluted share, compared to net loss of $783.7 million, or $8.78 per diluted share, for the fourth quarter of 2020. The results for the fourth quarter of 2020 included a loss from discontinued operations of $842.2 million, net of income taxes, primarily related to the loss on sale of the U.K. business of $867.3 million. For the fourth quarter of 2021, adjusted income from continuing operations attributable to Acadia stockholders was $0.81 per diluted share. Excluding income from the PRF, adjusted income from continuing operations was $0.67 for the fourth quarter of 2021. Adjustments to income include transaction-related expenses and the income tax effect of adjustments to income. A reconciliation of all non-GAAP financial results in this press release begins on page 10.
For the fourth quarter of 2021, Acadia’s same facility revenue increased 10.7% compared with the fourth quarter of 2020, including an increase in revenue per patient day of 7.8% and an increase in patient days of 2.7%.
Debbie Osteen, Chief Executive Officer of Acadia Healthcare Company, remarked, “We are pleased with our financial and operating results for the fourth quarter of 2021, completing another year of strong growth for Acadia. These results reflect robust demand for our behavioral health services. While we faced challenges late in the fourth quarter of 2021 and early in the first quarter of 2022 related to the surge of the Omicron variant of COVID-19, we continued to see solid year-over-year volume growth and strong operating trends. Our facility and corporate leadership teams have continued to manage labor costs while navigating a tight labor market. We are fortunate to have an experienced and dedicated team of employees and clinicians across our operations who have continued to provide quality patient care for those seeking treatment for mental health and substance use issues. Our strong results reflect our ability to effectively manage our operations and execute our growth strategy despite a challenging environment.
Strategic Investments for Long-Term Growth
“We had a very active fourth quarter with respect to key strategic growth initiatives across our service lines. We announced three new joint venture partnerships, the acquisition of real estate to open new facilities in the Chicago, Illinois, market and the acquisition of CenterPointe Behavioral Health System located in Missouri. We also added 13 beds to our existing facilities, bringing our total to 295 bed additions to existing facilities in 2021.
“An important growth objective for Acadia is to identify underserved markets for behavioral health treatment and develop wholly owned de novo facilities that help fill this gap. In line with this strategy, during the fourth quarter, we completed the acquisition of the real estate for three currently non-operational facilities, including one adult hospital, one children’s hospital and an outpatient facility, all located on the north side of Chicago. Prior to reopening, Acadia will make infrastructure investments to improve the behavioral health facilities, which will operate as Montrose Behavioral Health Hospital. This is an exciting opportunity for Acadia to enter the greater Chicago area and address the significant need for behavioral health services for adults and children. The 60-bed children’s hospital and outpatient facility are expected to open in the summer of 2022 and the 101-bed adult hospital is slated to begin operations in 2023. In addition to the Chicago facilities, we also expect to open an additional de novo facility in Indio, California, in late 2022.
“We also continued to expand our network of comprehensive treatment centers (CTCs), which are designed to address the growing and critical need for medication-assisted treatment for patients dealing with opioid use disorder. During the fourth quarter we opened five new CTCs, bringing the total number to ten CTCs opened in 2021. With the growing recognition and acceptance of the critical need for quality addiction treatment, we plan to open an additional six to ten CTCs in 2022 to address this demand.
“As a leading provider of behavioral health services, we are especially proud to work with leading health systems and hospitals across the country who are looking for a strong partner to help expand behavioral health treatment options in their respective communities. We announced three new joint venture partnerships during the fourth quarter, expanding our market reach to 16 partnerships. Our latest partners include Fairview Health Services, one of Minnesota’s leading health systems, to build a new hospital with 144 beds in the Twin Cities area; SCL Health, a premier healthcare system in Colorado, for a new 144-bed facility in the Denver area; and Orlando Health, one of Central Florida’s premier health systems, to expand inpatient and outpatient programs and community outreach. In 2022, we expect to open new facilities with Covenant Health in Knoxville, Tennessee, and Lutheran Health Network in Ft. Wayne, Indiana. We will continue to seek partnerships with premier health systems who share our commitment to expand access to quality care and treatment.
“We also have continued to expand our operations in high growth markets through select acquisitions that meet the criteria of our disciplined capital allocation framework. On December 31, 2021, we completed the acquisition of CenterPointe Behavioral Health System, the largest dedicated behavioral healthcare provider in the state of Missouri for cash consideration of $139 million. The acquired assets consist of four inpatient hospitals with 260 acute care beds and 46 specialty beds for substance use and ten outpatient locations. This transaction is commensurate with our growth strategy, and we look forward to pursuing additional acquisition opportunities for Acadia in the year ahead,” added Osteen.
Cash and Liquidity
Acadia’s balance sheet remains strong with ample liquidity and capital to support its growth strategy. As of December 31, 2021, the Company had $133.8 million in cash and cash equivalents. The Company funded the CenterPointe acquisition through a combination of cash on hand and borrowings of $70 million under the Company’s revolving credit facility. As of December 31, 2021, Acadia had $430 million available under its $600 million revolving credit facility, and its net leverage ratio was approximately 2.4x.
During the fourth quarter, the Company continued its repayment of amounts received pursuant to the Medicare Accelerated and Advanced Payment Program under the CARES Act. Of the $45 million of advanced payments received in 2020, the Company repaid $25 million in 2021, including payments of $8.2 million in the fourth quarter. The Company will continue to repay the remaining balance throughout 2022. The Company also repaid half of the approximately $39 million of 2020 payroll tax deferrals in September 2021 and will repay the remaining portion in the second half of 2022.
Financial Guidance
Acadia today established financial guidance for 2022, as follows:
2022 Guidance Range
| Revenue | $2.55 to $2.60 billion |
|---|---|
| Adjusted EBITDA | $575 to $610 million |
| Adjusted earnings per diluted share | $2.85 to $3.15 |
| Interest Expense | $65 to $70 million |
| Tax rate | 25% to 26% |
| Depreciation and amortization expense | $120 to $130 million |
| Stock compensation expense | Approximately $30 million |
| Operating cash flows, including $39 million<br><br> <br>of CARES Act repayments | $350 to $400 million |
| Expansion capital expenditures | $290 to $340 million |
| Maintenance capital expenditures | Approximately $50 million |
Acadia also established financial guidance for the first quarter of 2022, as follows:
First Quarter 2022 Guidance Range
| Revenue | $600 to $610 million |
|---|---|
| Adjusted EBITDA | $130 to $135 million |
| Adjusted earnings per diluted share | $0.62 to $0.66 |
The Company’s guidance does not include the impact of any future acquisitions, divestitures or transaction-related expenses.
Looking Ahead
Osteen added, “We are proud of our performance for 2021 as we continued to execute on the key pathways of our growth strategy with favorable results. We are even more proud of the critical role we play as the leading pure-play provider of behavioral healthcare services and our unwavering commitment to providing safe and quality patient care in Acadia’s facilities across our network. Our primary objective for 2022 is to continue to extend our market reach with a goal to add 300 beds to existing facilities and pursue additional opportunities for de novo facilities, joint venture partnerships and acquisitions. As we witness greater societal acceptance of treatment for mental health and addiction issues and more access to funding support, we see significant opportunities for continued growth for Acadia. Importantly, we have the financial strength to support a strategy that delivers greater value for our patients, the communities we serve, and our stakeholders.”
Conference Call
Acadia will hold a conference call to discuss its fourth quarter financial results at 9:00 a.m. Eastern Time on Tuesday, March 1, 2022. 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, 2021, Acadia operated a network of 238 behavioral healthcare facilities with approximately 10,500 beds in 40 states and Puerto Rico. With more than 22,500 employees serving approximately 70,000 patients daily, Acadia is the largest stand-alone behavioral health 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) the impact of the COVID-19 pandemic, 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; and difficulty in collecting patient accounts receivable due to increases in the unemployment rate and the number of underinsured and uninsured patients; (ii) the impact of vaccine and other pandemic-related mandates imposed by local, state and federal authorities; (iii) potential difficulties in successfully integrating the operations of acquired facilities or realizing the expected benefits and synergies of our acquisitions, joint ventures and de novo transactions; (iv) Acadia’s ability to add beds, expand services, enhance marketing programs and improve efficiencies at its facilities; (v) potential reductions in payments received by Acadia from government and third-party payors; (vi) 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; (vii) the risk that Acadia may not generate sufficient cash from operations to service its debt and meet its working capital and capital expenditure requirements; (viii) potential disruptions to our information technology systems or a cyber security incident; and (ix) potential operating difficulties, labor costs, client preferences, changes in competition 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 SEC.
| Acadia Healthcare Company, Inc. | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Statements of Operations | |||||||||||
| (Unaudited) | |||||||||||
| Year Ended December 31, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||
| Revenue | 593,480 | $ | 541,276 | $ | 2,314,394 | $ | 2,089,929 | ||||
| Salaries, wages and benefits (including equity-based compensation expense of<br> 12,542, 6,246, 37,530 and 22,504, respectively) | 321,120 | 301,658 | 1,243,804 | 1,154,522 | |||||||
| Professional fees | 34,824 | 29,480 | 136,739 | 120,489 | |||||||
| Supplies | 23,004 | 22,213 | 90,702 | 87,241 | |||||||
| Rents and leases | 9,829 | 9,387 | 38,519 | 37,362 | |||||||
| Other operating expenses | 79,076 | 59,732 | 301,339 | 262,272 | |||||||
| Income from provider relief fund | (17,900 | ) | (32,819 | ) | (17,900 | ) | (32,819 | ) | |||
| Depreciation and amortization | 28,368 | 24,958 | 106,717 | 95,256 | |||||||
| Interest expense, net | 15,573 | 39,707 | 76,993 | 158,105 | |||||||
| Debt extinguishment costs | - | 3,962 | 24,650 | 7,233 | |||||||
| Loss on impairment | - | 4,751 | 24,293 | 4,751 | |||||||
| Transaction-related expenses | 3,458 | 2,162 | 12,778 | 11,720 | |||||||
| Total expenses | 497,352 | 465,191 | 2,038,634 | 1,906,132 | |||||||
| Income from continuing operations before income taxes | 96,128 | 76,085 | 275,760 | 183,797 | |||||||
| Provision for income taxes | 24,609 | 16,432 | 67,557 | 40,606 | |||||||
| Income from continuing operations | 71,519 | 59,653 | 208,203 | 143,191 | |||||||
| Loss from discontinued operations, net of taxes | - | (842,194 | ) | (12,641 | ) | (812,390 | ) | ||||
| Net income (loss) | 71,519 | (782,541 | ) | 195,562 | (669,199 | ) | |||||
| Net income attributable to noncontrolling interests | (1,241 | ) | (1,131 | ) | (4,927 | ) | (2,933 | ) | |||
| Net income (loss) attributable to Acadia Healthcare Company, Inc. | 70,278 | $ | (783,672 | ) | $ | 190,635 | $ | (672,132 | ) | ||
| Basic earnings per share attributable to Acadia Healthcare Company, Inc.<br> stockholders: | |||||||||||
| Income from continuing operations attributable to Acadia Healthcare<br> Company, Inc. | 0.79 | $ | 0.67 | $ | 2.29 | $ | 1.60 | ||||
| Loss from discontinued operations | - | $ | (9.58 | ) | $ | (0.14 | ) | $ | (9.25 | ) | |
| Net income (loss) attributable to Acadia Healthcare Company, Inc. | 0.79 | $ | (8.91 | ) | $ | 2.15 | $ | (7.65 | ) | ||
| Diluted earnings per share attributable to Acadia Healthcare Company, Inc.<br> stockholders: | |||||||||||
| Income from continuing operations attributable to Acadia Healthcare<br> Company, Inc. | 0.77 | $ | 0.66 | $ | 2.24 | $ | 1.58 | ||||
| Loss from discontinued operations | - | $ | (9.44 | ) | $ | (0.14 | ) | $ | (9.17 | ) | |
| Net income (loss) attributable to Acadia Healthcare Company, Inc. | 0.77 | $ | (8.78 | ) | $ | 2.10 | $ | (7.59 | ) | ||
| Weighted-average shares outstanding: | |||||||||||
| Basic | 89,020 | 87,952 | 88,769 | 87,875 | |||||||
| Diluted | 91,038 | 89,233 | 90,793 | 88,595 |
All values are in US Dollars.
| Acadia Healthcare Company, Inc. | ||||||
|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| December 31, | ||||||
| 2021 | 2020 | |||||
| (In thousands) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 133,813 | $ | 378,697 | ||
| Accounts receivable, net | 281,332 | 273,551 | ||||
| Other current assets | 79,886 | 61,332 | ||||
| Current assets held for sale | - | 1,809,815 | ||||
| Total current assets | 495,031 | 2,523,395 | ||||
| Property and equipment, net | 1,771,159 | 1,622,896 | ||||
| Goodwill | 2,199,937 | 2,105,264 | ||||
| Intangible assets, net | 70,145 | 68,535 | ||||
| Deferred tax assets | 3,080 | 3,209 | ||||
| Operating lease right-of-use assets | 133,761 | 96,937 | ||||
| Other assets | 94,965 | 79,126 | ||||
| Total assets | $ | 4,768,078 | $ | 6,499,362 | ||
| LIABILITIES AND EQUITY | ||||||
| Current liabilities: | ||||||
| Current portion of long-term debt | $ | 18,594 | $ | 153,478 | ||
| Accounts payable | 98,575 | 87,815 | ||||
| Accrued salaries and benefits | 137,845 | 124,912 | ||||
| Current portion of operating lease liabilities | 23,348 | 18,916 | ||||
| Other accrued liabilities | 126,499 | 178,453 | ||||
| Derivative instrument liabilities | - | 84,584 | ||||
| Current liabilities held for sale | - | 660,027 | ||||
| Total current liabilities | 404,861 | 1,308,185 | ||||
| Long-term debt | 1,478,626 | 2,968,948 | ||||
| Deferred tax liabilities | 74,368 | 50,017 | ||||
| Operating lease liabilities | 116,841 | 84,029 | ||||
| Other liabilities | 110,505 | 133,412 | ||||
| Total liabilities | 2,185,201 | 4,544,591 | ||||
| Redeemable noncontrolling interests | 65,388 | 55,315 | ||||
| Equity: | ||||||
| Common stock | 890 | 880 | ||||
| Additional paid-in capital | 2,636,350 | 2,580,327 | ||||
| Accumulated other comprehensive loss | - | (371,365 | ) | |||
| Accumulated deficit | (119,751 | ) | (310,386 | ) | ||
| Total equity | 2,517,489 | 1,899,456 | ||||
| Total liabilities and equity | $ | 4,768,078 | $ | 6,499,362 |
| Acadia Healthcare Company, Inc. | ||||||
|---|---|---|---|---|---|---|
| Condensed Consolidated Statements of Cash Flows | ||||||
| (Unaudited) | ||||||
| Year Ended December 31, | ||||||
| 2021 | 2020 | |||||
| (In thousands) | ||||||
| Operating activities: | ||||||
| Net income (loss) | $ | 195,562 | $ | (669,199 | ) | |
| Adjustments to reconcile net income (loss) to net cash provided by continuing operating activities: | ||||||
| Depreciation and amortization | 106,717 | 95,256 | ||||
| Amortization of debt issuance costs | 4,071 | 12,636 | ||||
| Equity-based compensation expense | 37,530 | 22,504 | ||||
| Deferred income taxes | 11,772 | 53,108 | ||||
| Loss from discontinued operations, net of taxes | 12,641 | 812,390 | ||||
| Debt extinguishment costs | 24,650 | 7,233 | ||||
| Loss on impairment | 24,293 | 4,751 | ||||
| Other | 491 | 1,041 | ||||
| Change in operating assets and liabilities, net of effect of acquisitions: | ||||||
| Accounts receivable, net | 2,448 | 15,340 | ||||
| Other current assets | 1,968 | 9,675 | ||||
| Other assets | (10,770 | ) | 1,519 | |||
| Accounts payable and other accrued liabilities | 6,164 | 41,910 | ||||
| Accrued salaries and benefits | 9,755 | (10,001 | ) | |||
| Other liabilities | (14,940 | ) | 18,082 | |||
| Government relief funds | (38,128 | ) | 86,599 | |||
| Net cash provided by continuing operating activities | 374,224 | 502,844 | ||||
| Net cash provided by discontinued operating activities | 253 | 155,963 | ||||
| Net cash provided by operating activities | 374,477 | 658,807 | ||||
| Investing activities: | ||||||
| Cash paid for acquisitions, net of cash acquired | (139,015 | ) | - | |||
| Cash paid for capital expenditures | (244,811 | ) | (224,964 | ) | ||
| Proceeds from U.K. Sale | 1,511,020 | - | ||||
| Settlement of foreign currency derivatives | (84,795 | ) | - | |||
| Proceeds from sale of property and equipment | 3,493 | 92 | ||||
| Cash paid for purchase of finance lease | (31,401 | ) | - | |||
| Other | 3,142 | (13,365 | ) | |||
| Net cash provided by (used in) continuing investing activities | 1,017,633 | (238,237 | ) | |||
| Net cash used in discontinued investing activities | - | (43,602 | ) | |||
| Net cash provided by (used in) investing activities | 1,017,633 | (281,839 | ) | |||
| Financing activities: | ||||||
| Borrowings on long-term debt | 425,000 | 925,000 | ||||
| Borrowings on revolving credit facility | 500,000 | 100,000 | ||||
| Principal payments on revolving credit facility | (330,000 | ) | (100,000 | ) | ||
| Principal payments on long-term debt | (7,969 | ) | (41,291 | ) | ||
| Repayment of long-term debt | (2,227,935 | ) | (909,785 | ) | ||
| Payment of debt issuance costs | (7,964 | ) | (18,295 | ) | ||
| Common stock withheld for minimum statutory taxes, net | 16,295 | 184 | ||||
| Distributions to noncontrolling interests | (1,588 | ) | (916 | ) | ||
| Other | (6,900 | ) | (3,146 | ) | ||
| Net cash used in continuing financing activities | (1,641,061 | ) | (48,249 | ) | ||
| Net cash used in discontinued financing activities | - | (3,250 | ) | |||
| Net cash used in financing activities | (1,641,061 | ) | (51,499 | ) | ||
| Effect of exchange rate changes on cash | 4,067 | 4,087 | ||||
| Net (decrease) increase in cash and cash equivalents, including cash classified within<br><br> current assets held for sale | (244,884 | ) | 329,556 | |||
| Less: cash classified within current assets held for sale | - | (75,051 | ) | |||
| Net (decrease) increase in cash and cash equivalents | (244,884 | ) | 254,505 | |||
| Cash and cash equivalents at beginning of the period | 378,697 | 124,192 | ||||
| Cash and cash equivalents at end of the period | $ | 133,813 | $ | 378,697 | ||
| Effect of acquisitions: | ||||||
| Assets acquired, excluding cash | $ | 176,365 | $ | 20,200 | ||
| Liabilities assumed | (37,350 | ) | (53 | ) | ||
| Redeemable noncontrolling interest resulting from an acquisition | - | (20,147 | ) | |||
| Cash paid for acquisitions, net of cash acquired | $ | 139,015 | $ | - |
| Acadia Healthcare Company, Inc. | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Statistics | |||||||||||||||||
| (Unaudited, Revenue in thousands) | |||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||
| 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||
| U.S. Same Facility Results ^(1)^ | |||||||||||||||||
| Revenue | $ | 591,635 | $ | 534,533 | 10.7 | % | $ | 2,300,024 | $ | 2,074,456 | 10.9 | % | |||||
| Patient Days | 684,984 | 666,906 | 2.7 | % | 2,760,181 | 2,646,173 | 4.3 | % | |||||||||
| Admissions | 42,414 | 42,574 | -0.4 | % | 177,791 | 171,808 | 3.5 | % | |||||||||
| Average Length of Stay ^(2)^ | 16.1 | 15.7 | 3.1 | % | 15.5 | 15.4 | 0.8 | % | |||||||||
| Revenue per Patient Day | $ | 864 | $ | 802 | 7.8 | % | $ | 833 | $ | 784 | 6.3 | % | |||||
| Adjusted EBITDA margin^(3)^ | 31.3 | % | 33.8 | % | -250 bps | 29.1 | % | 27.6 | % | 150 bps | |||||||
| Adjusted EBITDA margin excluding income from provider relief fund | 28.3 | % | 27.7 | % | 60 bps | 28.3 | % | 26.1 | % | 220 bps | |||||||
| U.S. Facility Results | |||||||||||||||||
| Revenue | $ | 593,480 | $ | 541,276 | 9.6 | % | $ | 2,314,394 | $ | 2,089,929 | 10.7 | % | |||||
| Patient Days | 686,584 | 671,840 | 2.2 | % | 2,775,061 | 2,667,762 | 4.0 | % | |||||||||
| Admissions | 42,691 | 42,639 | 0.1 | % | 179,075 | 172,277 | 3.9 | % | |||||||||
| Average Length of Stay^(2)^ | 16.1 | 15.8 | 2.1 | % | 15.5 | 15.5 | 0.1 | % | |||||||||
| Revenue per Patient Day | $ | 864 | $ | 806 | 7.3 | % | $ | 834 | $ | 783 | 6.5 | % | |||||
| Adjusted EBITDA margin^(3)^ | 30.5 | % | 33.5 | % | -300 bps | 28.4 | % | 27.5 | % | 90 bps | |||||||
| Adjusted EBITDA margin excluding income from provider relief fund | 27.5 | % | 27.4 | % | 10 bps | 27.6 | % | 25.9 | % | 170 bps | |||||||
| ^(1)^ Same facility results for the periods presented include facilities we have operated for more than one year and exclude certain<br> closed services. | |||||||||||||||||
| --- | |||||||||||||||||
| ^(2)^Average length of stay is defined as patient days divided by admissions. | |||||||||||||||||
| ^(3)^For the three months and year ended December 31, 2021, includes income from provider relief fund of $17.9 million. For the<br> three months and year ended December 31, 2020, includes income from provider relief fund of $32.8 million. |
| Acadia Healthcare Company, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Net Income Attributable to Acadia Healthcare Company, Inc. to Adjusted EBITDA | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| (in thousands) | ||||||||||||
| Net income (loss) attributable to Acadia Healthcare Company, Inc. | $ | 70,278 | $ | (783,672 | ) | $ | 190,635 | $ | (672,132 | ) | ||
| Net income attributable to noncontrolling interests | 1,241 | 1,131 | 4,927 | 2,933 | ||||||||
| Loss from discontinued operations, net of taxes | - | 842,194 | 12,641 | 812,390 | ||||||||
| Provision for income taxes | 24,609 | 16,432 | 67,557 | 40,606 | ||||||||
| Interest expense, net | 15,573 | 39,707 | 76,993 | 158,105 | ||||||||
| Depreciation and amortization | 28,368 | 24,958 | 106,717 | 95,256 | ||||||||
| EBITDA | 140,069 | 140,750 | 459,470 | 437,158 | ||||||||
| Adjustments: | ||||||||||||
| Equity-based compensation expense (a) | 12,542 | 6,246 | 37,530 | 22,504 | ||||||||
| Transaction-related expenses (b) | 3,458 | 2,162 | 12,778 | 11,720 | ||||||||
| Debt extinguishment costs (c) | - | 3,962 | 24,650 | 7,233 | ||||||||
| Loss on impairment (d) | - | 4,751 | 24,293 | 4,751 | ||||||||
| Adjusted EBITDA | $ | 156,069 | $ | 157,871 | $ | 558,721 | $ | 483,366 | ||||
| Adjusted EBITDA margin | 26.3 | % | 29.2 | % | 24.1 | % | 23.1 | % | ||||
| Adjusted EBITDA excluding income from provider relief fund | $ | 138,169 | $ | 125,052 | $ | 540,821 | $ | 450,547 | ||||
| Adjusted EBITDA margin excluding income from provider relief fund | 23.3 | % | 23.1 | % | 23.4 | % | 21.6 | % | ||||
| See footnotes on page 13. |
| Acadia Healthcare Company, Inc. | ||||||
|---|---|---|---|---|---|---|
| Reconciliation of Net Income Attributable to Acadia Healthcare Company, Inc. to | ||||||
| Adjusted Income Attributable to Acadia Healthcare Company, Inc. | ||||||
| (Unaudited) | ||||||
| Three Months Ended December 31, 2021 | Year Ended December 31, 2021 | |||||
| (in thousands, except per share amounts) | ||||||
| Net income (loss) attributable to Acadia Healthcare Company, Inc. | $ | 70,278 | $ | 190,635 | ||
| Loss from discontinued operations, net of taxes | - | 12,641 | ||||
| Adjustments to income: | ||||||
| Transaction-related expenses (b) | 3,458 | 12,778 | ||||
| Debt extinguishment costs (c) | - | 24,650 | ||||
| Loss on impairment (d) | - | 24,293 | ||||
| Provision for income taxes | 24,609 | 67,557 | ||||
| Adjusted income from continuing operations before income taxes attributable to<br><br> Acadia Healthcare Company, Inc. | 98,345 | 332,554 | ||||
| Income tax effect of adjustments to income (e) | 24,791 | 87,500 | ||||
| Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. | 73,554 | 245,054 | ||||
| Income from provider relief fund, net of taxes | (13,044 | ) | (13,044 | ) | ||
| Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc.<br><br> excluding income from provider relief fund | $ | 60,510 | $ | 232,010 | ||
| Weighted-average shares outstanding - diluted | 91,038 | 90,793 | ||||
| Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc.<br><br> per diluted share | $ | 0.81 | $ | 2.70 | ||
| Income from provider relief fund, net of taxes, per diluted share | (0.14 | ) | (0.14 | ) | ||
| Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc.,<br><br> excluding income from provider relief fund, per diluted share | $ | 0.67 | $ | 2.56 | ||
| Three Months Ended December 31, 2020 | Year Ended December 31, 2020 | |||||
| (in thousands, except per share amounts) | ||||||
| Net income (loss) attributable to Acadia Healthcare Company, Inc. | $ | (783,672 | ) | $ | (672,132 | ) |
| Loss from discontinued operations, net of taxes | 842,194 | 812,390 | ||||
| Adjustments to income: | ||||||
| Transaction-related expenses (b) | 2,162 | 11,720 | ||||
| Debt extinguishment costs (c) | 3,962 | 7,233 | ||||
| Loss on impairment (d) | 4,751 | 4,751 | ||||
| Provision for income taxes | 16,432 | 40,606 | ||||
| Adjusted income from continuing operations before income taxes attributable to<br><br> Acadia Healthcare Company, Inc. | 85,829 | 204,568 | ||||
| Adjusted income from discontinued operations before income taxes | 31,483 | 86,258 | ||||
| Adjusted income before income taxes attributable to Acadia Healthcare Company, Inc. | 117,312 | 290,826 | ||||
| Income tax effect of adjustments to income (e) | 16,124 | 44,496 | ||||
| Adjusted income attributable to Acadia Healthcare Company, Inc. | 101,188 | 246,330 | ||||
| Income from provider relief fund, net of taxes | (23,915 | ) | (23,915 | ) | ||
| Adjusted income attributable to Acadia Healthcare Company, Inc. excluding income from<br><br> provider relief fund | $ | 77,273 | $ | 222,415 | ||
| Weighted-average shares outstanding - diluted | 89,233 | 88,595 | ||||
| Adjusted income attributable to Acadia Healthcare Company, Inc. per diluted share ^(4)^ | $ | 1.13 | $ | 2.78 | ||
| Income from provider relief fund, net of taxes, per diluted share | (0.27 | ) | (0.27 | ) | ||
| Adjusted income attributable to Acadia Healthcare Company, Inc. excluding income from<br><br> provider relief fund, per diluted share | $ | 0.86 | $ | 2.51 | ||
| ^(4)^ For the three months and year ended December 31, 2020, Adjusted income attributable to Acadia Healthcare Company, Inc. per diluted<br> share includes Adjusted income from discontinued operations before income taxes and is not directly comparable to Adjusted income from continuing operations attributable to Acadia Healthcare Company, Inc. per diluted share for the three<br> months and year ended December 31, 2021. Interest expense, which has been significantly reduced following debt repayments in the first quarter of 2021, is recorded in income from continuing operations and not allocated to discontinued<br> operations because such allocation would not be meaningful. Therefore, 2020 results reflect consolidated results inclusive of discontinued operations, and 2021 results reflect only continuing operations. | ||||||
| --- | ||||||
| See footnotes on page 13. |
| Acadia Healthcare Company, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Discontinued Operations Supplemental Financial Information | ||||||||||||
| (Unaudited) | ||||||||||||
| Statements of Discontinued Operations | ||||||||||||
| Three Months<br><br> <br>Ended December 31, | Year Ended<br><br> <br>December 31, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| (in thousands) | ||||||||||||
| Revenue | $ | - | $ | 301,996 | $ | 62,520 | $ | 1,119,768 | ||||
| Salaries, wages and benefits | - | 166,620 | 35,937 | 632,134 | ||||||||
| Professional fees | - | 35,027 | 6,815 | 127,291 | ||||||||
| Supplies | - | 10,011 | 2,217 | 38,285 | ||||||||
| Rents and leases | - | 12,890 | 2,509 | 47,748 | ||||||||
| Other operating expenses | - | 27,852 | 6,682 | 113,534 | ||||||||
| Depreciation and amortization | - | 19,196 | - | 74,935 | ||||||||
| Interest expense, net | - | (1,083 | ) | 10 | (417 | ) | ||||||
| Loss on sale | (764 | ) | 867,324 | 13,490 | 867,324 | |||||||
| Loss on impairment | - | - | - | 20,239 | ||||||||
| Transaction-related expenses | - | 984 | 6,265 | 8,719 | ||||||||
| Total expenses | (764 | ) | 1,138,821 | 73,925 | 1,929,792 | |||||||
| Income (loss) from discontinued operations before income taxes | 764 | (836,825 | ) | (11,405 | ) | (810,024 | ) | |||||
| Provision for (benefit from) income taxes | 764 | 5,369 | 1,236 | 2,366 | ||||||||
| Income (loss) from discontinued operations, net of taxes | - | (842,194 | ) | (12,641 | ) | (812,390 | ) | |||||
| Reconciliation of Income (Loss) from Discontinued Operations to Adjusted Income from Discontinued Operations before Income Taxes | ||||||||||||
| Three Months<br><br> <br>Ended December 31, | Year Ended<br><br> <br>December 31, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| (in thousands) | ||||||||||||
| Income (loss) from discontinued operations, net of taxes | $ | - | $ | (842,194 | ) | $ | (12,641 | ) | $ | (812,390 | ) | |
| Adjustments to income: | ||||||||||||
| Transaction-related expenses (b) | - | 984 | 6,265 | 8,719 | ||||||||
| Loss on sale (f) | (764 | ) | 867,324 | 13,490 | 867,324 | |||||||
| Loss on impairment (d) | - | - | - | 20,239 | ||||||||
| Provision for (benefit from) income taxes | 764 | 5,369 | 1,236 | 2,366 | ||||||||
| Adjusted income from discontinued operations before income taxes | $ | - | $ | 31,483 | $ | 8,350 | $ | 86,258 | ||||
| See footnotes on page 13. |
| 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<br> rules and regulations promulgated by the SEC. These non-GAAP financial measures include, and are defined, as follows: |
| The non-GAAP financial measures presented herein are supplemental measures of our performance and are not required by, or presented in accordance with, generally<br> 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<br> 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<br> 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<br> 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<br> 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<br> 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<br> 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<br> 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-related expenses incurred by Acadia primarily related to termination, restructuring, strategic review, acquisition and other similar<br> costs. |
| (c) Represents debt extinguishment costs recorded during the first quarter of 2021 in connection with the redemption of the 5.625% senior notes and 6.500% senior<br> notes and the termination of the prior credit facility, during the second quarter of 2020 in connection with the redemption of the 6.125% senior notes and 5.125% senior notes and during the fourth quarter of 2020 the issuance of the<br> 5.000% senior notes in October 2020 and the fourth repricing facilities amendment to the amended and restated credit facility in November 2020. |
| (d) The Company opened a 260-bed replacement hospital in Pennsylvania and recorded a non-cash property impairment charge of 23.2 million for the existing<br> facility during the second quarter of 2021. Additionally, during the third quarter of 2021, the Company recorded a 1.1 million non-cash property impairment charge for one facility in Louisiana resulting from hurricane damage. For 2020,<br> represents non-cash long-lived asset impairment charges related to certain facility closures. |
| (e) Represents the income tax effect of adjustments to income based on tax rates of 25.2% and 13.7% for the three months ended December 31, 2021 and 2020,<br> respectively, and 26.3% and 15.3% for the year ended December 31, 2021 and 2020, respectively. |
| (f) For 2020, represents the loss on sale, including a non-cash goodwill impairment charge of 356.2 million, recorded in connection with the U.K. sale. For<br> 2021, represents the adjustments to the loss on sale recorded in connection with the sale of our U.K. operations in January 2021 to reflect an increase in the U.K. carrying value. |
All values are in US Dollars.
Contacts
Gretchen Hommrich
Vice President, Investor Relations
\(615\) 861-6000