Acadia Healthcare Company (ACHC) Q4 2019 earnings summary

Executive summary

• 2019 revenue rose 3.2% YoY to $3.107B; GAAP net income attributable to shareholders was $108.9M versus a $175.8M loss in 2018, which included major impairment charges.

• Adjusted EBITDA was $585.9M versus $593.6M; adjusted income was $179.1M, or $2.04 per diluted share, versus $195.4M, or $2.24.

• Operations spanned 585 behavioral healthcare facilities and ~18,200 beds across the U.S., U.K. and Puerto Rico at year-end.

Financial highlights

• Revenue was $3.107B in 2019 versus $3.012B in 2018; same-facility revenue increased 5.1%, partly offset by a $48.0M adverse foreign-exchange impact.

• Net income attributable to shareholders was $108.9M; adjusted income was $179.1M after adjustments including transaction costs and impairment charges.

• Cash from continuing operating activities was $332.9M versus $416.6M; year-end cash was $124.2M and working capital was $78.6M.

• Year-end total debt was $3.149B versus $3.193B; total assets were $6.879B versus $6.173B.

Outlook and guidance

• Plans called for ~600 U.S. beds to be added in 2020, following 585 beds added in 2019; cost-saving initiatives targeted a $20M run rate by year-end 2020.

• Planned growth priorities included existing-site expansions, de novos and joint ventures, alongside debt reduction and selective tuck-in acquisitions.

• Initial nonbinding offers for the U.K. business had come from multiple bidders; the sale process was temporarily suspended as COVID-19 affected market conditions.

• COVID-19 effects on operations remained uncertain; staffing, patients and visitors were identified as safety priorities.