Acadia Healthcare Company (ACHC) Q4 2012 earnings summary

Executive summary

• 2012 growth was driven by acquisitions and organic expansion; revenue rose 88.2% YoY to $407.5M and income from continuing operations was $20.5M.

• Operations spanned 42 facilities, 3,100+ licensed beds and 21 states at year-end; the network expanded to 44 facilities and 3,400+ beds by March 31, 2013.

Financial highlights

• Revenue was $407.5M vs. $216.5M in 2011; net income was $20.4M vs. a $34.9M loss, and diluted EPS was $0.53 vs. $(1.86).

• Adjusted income from continuing operations was $25.6M, or $0.66 diluted EPS, excluding $8.1M transaction costs; 2011 adjusted income was $5.0M, or $0.27 EPS, excluding transaction costs and sponsor fees.

• Adjusted EBITDA increased 130.0% to $81.0M from $35.2M; adjusted EBITDA margin was 19.9% vs. 16.3%.

Outlook and guidance

• FY2013 diluted EPS guidance was $0.96–$1.00, implying 45%–52% growth; guidance included the two early-2013 acquisitions but excluded future acquisitions.

• At least 200 beds were planned for existing facilities in 2013, primarily acute beds; management expected same-facility patient days and revenue per patient day to improve.

• 2013 revenue growth was expected to benefit from full-year contribution from 2012 acquisitions, including eight facilities with 600+ beds acquired on December 31.