Acadia Healthcare Company (ACHC) Q4 2017 earnings summary

Executive summary

• Operated 582 behavioral healthcare facilities with ~17,800 beds across 39 U.S. states, the U.K. and Puerto Rico at year-end 2017; added 750 beds during the year, excluding acquisitions.

• 2017 revenue was $2.84B; adjusted EBITDA was $604.4M, while same-facility revenue grew 5.6%.

Financial highlights

• Revenue was $2.836B in 2017 vs. $2.811B in 2016; revenue before doubtful accounts rose 0.9%, with U.K. divestiture and FX headwinds offsetting acquired-facility revenue.

• Net income attributable to shareholders was $199.8M, or $2.30 diluted EPS, vs. $6.1M, or $0.07, in 2016; 2016 included a $178.8M divestiture loss.

• Adjusted income was $200.2M, or $2.30 diluted share, vs. $210.2M, or $2.45, in 2016; adjusted EBITDA was $604.4M vs. $608.6M.

• Operating cash flow was $401.3M vs. $371.7M; cash and cash equivalents were $67.3M at year-end.

Outlook and guidance

• Plan to add more than 800 beds in 2018, about 75% in the U.S. and 25% in the U.K.; 312 beds are planned across four de novo facilities, including two joint ventures.

• Organic expansion is the primary 2018 capital focus; operating cash flow is expected to fund maintenance capex and planned bed additions, with acquisitions pursued selectively and at disciplined valuations.

• Expected demand growth, constrained industry capacity and expanding joint-venture opportunities underpin plans for organic growth and selective acquisitions.