Acadia Healthcare Company (ACHC) Q4 2013 earnings summary

Executive summary

• FY2013 revenue rose 75.1% to $713.4M; same-facility revenue grew 10.0%, while adjusted EBITDA increased 79.5% to $145.3M.

• Growth reflected acquisitions and organic expansion: seven facilities acquired and 325 beds added organically; year-end network totaled 51 facilities and ~4,200 licensed beds.

Financial highlights

• Revenue was $713.4M vs. $407.5M in 2012; income from continuing operations was $43.3M vs. $20.5M, and net income was $42.6M vs. $20.4M.

• Adjusted EBITDA was $145.3M vs. $81.0M; adjusted income from continuing operations was $53.6M vs. $25.6M.

• Adjusted income from continuing operations per diluted share increased to $1.07 from $0.66; diluted weighted-average shares rose 29.9%, primarily reflecting 2012 equity offerings.

• Reported 2013 results included $9.4M debt extinguishment costs and $7.2M transaction-related expenses; adjusted results exclude these items.

Outlook and guidance

• FY2014 plan: add at least 300 beds, largely at existing facilities, and generally open one or two de novo facilities annually.

• Acquisition pipeline described as strong; completed the purchase of a 68-bed Riverside, California psychiatric facility effective January 1, 2014.

• Organic bed growth target is at least 5% of prior year-end licensed beds; expected to exceed this target in 2014.