Acadia Healthcare Company (ACHC) Q4 2014 earnings summary

Executive summary

• FY14 delivered strong profitable growth, surpassing $1B revenue; organic growth and acquisitions expanded capacity, while same-facility revenue and margins increased.

• Operations ended 2014 with 78 facilities and over 5,800 beds across 24 U.S. states, the U.K. and Puerto Rico; CRC acquisition in February 2015 expanded the platform to about 8,300 beds.

Financial highlights

• FY14 revenue rose 40.8% to $1,004.6M from $713.4M; same-facility revenue grew 10.9%.

• Income from continuing operations was $83.2M, or $1.50 diluted EPS, versus $43.3M, or $0.86; net income was $83.0M versus $42.6M.

• Adjusted income from continuing operations rose 58.7% to $85.0M; adjusted diluted EPS increased 43.9% to $1.54.

• Adjusted EBITDA increased 48.3% to $215.5M, or 21.5% of revenue versus 20.4%; same-facility EBITDA margin rose 180 bps to 26.1%.

• Continuing-operations cash flow was $115.5M, up 76.8%; year-end cash was $94.0M and working capital was $108.2M.

Outlook and guidance

• FY15 plans include approximately 500 additional beds at facilities owned at 2014 year-end and seven de novo facilities: three acute inpatient sites and four CRC comprehensive treatment centers.

• Management expected further profitable growth, supported by FY14 earnings momentum, organic bed additions, new facilities and acquisition opportunities.

• Pro forma FY14 revenue, assuming the 2013–14 acquisitions and CRC had closed January 1, 2013, was $1,569.9M; pro forma FY13 revenue was $1,480.6M.