Acadia healthcare reports first quarter 2022 results
Franklin, tenn.--(business wire)--acadia healthcare company, inc. (nasdaq: achc) today announced financial results for the first quarter ended march 31, 2022. first quarter highlights revenue totaled $616.7 million, an increase of 11.9% over the first quarter of 2021 same facility revenue increased 8.6% compared to the first quarter of 2021, including an increase in revenue per patient day of 6.2% and an increase in patient days of 2.2% net income attributable to acadia totaled $60.8 million, or $0.67 per diluted share, and adjusted income from continuing operations attributable to acadia stockholders totaled $61.2 million, or $0.67 per diluted share. adjusted ebitda totaled $135.5 million cash flows from operating activities totaled $76.8 million first quarter results the company reported revenue of $616.7 million for the first quarter of 2022, compared with $551.2 million for the first quarter of 2021. adjusted ebitda was $135.5 million for the first quarter of 2022, compared with $119.5 million for the same period last year. net income attributable to acadia stockholders for the first quarter of 2022 was $60.8 million, or $0.67 per diluted share. adjusted income from continuing operations attributable to acadia stockholders was $0.67 per diluted share for the first quarter of 2022. adjustments to income include transaction-related expenses and the income tax effect of adjustments to income. a reconciliation of all non-gaap financial results in this press release begins on page 9. for the first quarter of 2022, acadia’s same facility revenue increased 8.6% compared with the first quarter of 2021, including an increase in revenue per patient day of 6.2% and an increase in patient days of 2.2%. chris hunter, chief executive officer of acadia healthcare company, remarked, “acadia produced solid financial and operating results for the first quarter of 2022, marking a strong start to the year. while we faced some early challenges in january related to the surge of the omicron variant of covid-19, our operating trends recovered with meaningful improvement in february and march. our facilities have managed well through each stage of the pandemic, with strict protocols in place to ensure high standards of safety for our patients with minimal disruptions to our operations, all while navigating a tight labor environment. as such, we successfully delivered on our key performance metrics in the first quarter, demonstrating consistent execution of our strategy. we have seen robust demand for our behavioral healthcare services, and our dedicated team of employees and clinicians across our operations have continued to meet this growing demand with high quality patient care in a safe and effective manner. strategic investments for long-term growth “in the first quarter of 2022, acadia continued to move forward and expand our market reach through four strategic pathways to growth across our service lines. our first pathway and best return on investment is through facility expansions, where we have an opportunity to utilize a facility’s current infrastructure and leverage the existing cost structure. during the first quarter, we added 28 beds to current facilities and expect to add approximately 300 beds in 2022. “as the demand for behavioral healthcare services continues to grow, our second pathway focuses on identifying underserved markets to develop wholly owned de novo facilities that help address this need. at the end of 2021, we completed the acquisition of several currently non-operational facilities, including one adult hospital, one children’s hospital and an outpatient facility, all located in chicago. we have commenced work on the improvements and expect to open the 60-bed children’s hospital in june. the 101-bed adult hospital and the outpatient facility are slated to begin operations in 2023. in addition to the new chicago facilities, we also expect to open a de novo facility, coachella valley behavioral health, in indio, california, later this year. “we also continued to expand our network of comprehensive treatment centers (ctcs) to address the growing and critical need for medication-assisted treatment for patients dealing with opioid use disorder. we opened one new ctc in virginia during the first quarter. we have identified additional opportunities to reach more markets that are underserved, and we plan to open at least six ctcs in 2022 to support the high demand for effective treatment. “a third important pathway for acadia’s continued growth is through joint venture partnerships with leading health systems across the country. with our expertise as the leading pure-play provider of behavioral healthcare services and our reputation for quality care, acadia is an attractive partner for leading health systems who want to expand and improve behavioral healthcare treatment options in their respective communities. we plan to open a new facility in partnership with covenant health in knoxville, tennessee, this summer. we also expect to commence operations in a new facility in partnership with the lutheran health network in ft. wayne, indiana, later in 2022. working together with these partners, we can combine our expertise and resources with a shared commitment to expand access to quality care and behavioral health treatment. “for our fourth and final pathway we continue to look for acquisition opportunities that meet the criteria of our disciplined capital allocation framework. acadia has a proven operating model, and our strategy is to identify facilities and programs where we can leverage our scale and expertise, make necessary investments for expansion and add service offerings to further enhance the continuum of care,” added hunter. cash and liquidity acadia’s balance sheet remains strong with ample liquidity and capital to pursue its growth initiatives and continue to make strategic investments in its business. as of march 31, 2022, the company had $140.4 million in cash and cash equivalents. during the first quarter, the company repaid $10 million on its senior secured revolving credit facility, reducing the outstanding balance to $160 million as of march 31, 2022. the company had $440 million available under its $600 million revolving credit facility and its net leverage ratio was approximately 2.3x as of march 31, 2022. during the first quarter, the company continued its repayment of amounts received pursuant to the medicare accelerated and advanced payment program under the cares act. of the $45 million of advanced payments received in 2020, the company repaid a total of $25 million in 2021 and made additional payments of $8 million in the first quarter of 2022. the company will continue to repay the remaining balance throughout the rest of 2022. the company will also repay the remaining half of the approximately $39 million of 2020 payroll tax deferrals in the second half of 2022. financial guidance acadia today affirmed its previously announced financial guidance for 2022, as follows: 2022 guidance range revenue $2.55 to $2.60 billion adjusted ebitda $575 to $610 million adjusted earnings per diluted share $2.85 to $3.15 interest expense $65 to $70 million tax rate 25% to 26% depreciation and amortization expense $120 to $130 million stock compensation expense approximately $30 million operating cash flows, including $39 million of cares act repayments $350 to $400 million expansion capital expenditures $290 to $340 million maintenance capital expenditures approximately $50 million the company’s guidance does not include the impact of any future acquisitions, divestitures or transaction-related expenses. looking ahead hunter added, “i am very proud to join acadia as the company’s new chief executive officer and am excited about the opportunities ahead. with a strong first quarter performance, we have an opportunity to build on our momentum and continue to extend our market reach to more patients and communities. above all, we are unwavering in our commitment as a leader in addressing the critical societal need in our country for behavioral healthcare services. it is gratifying to see the growing recognition of mental health on parity with other healthcare services and a greater public acceptance for treatment. with the extraordinary economic and societal challenges created by the covid-19 pandemic, the need for behavioral healthcare services is greater than ever. acadia is well positioned to meet the growing demand for our services with a proven operating model, an expansive network of 238 facilities and diversified service lines across the continuum of care. i look forward to working with acadia’s strong management team, committed facility leaders, clinicians and 22,500 dedicated employees across the country as we pursue a strategic direction that delivers greater value for our patients, the communities we serve and our stockholders.” conference call acadia will hold a conference call to discuss its first quarter financial results at 9:00 a.m. eastern time on wednesday, may 4, 2022. a live webcast of the conference call will be available at www.acadiahealthcare.com in the “investors” section of the website. the webcast of the conference call will be available for 30 days. about acadia acadia is a leading provider of behavioral healthcare services across the united states. as of march 31, 2022, acadia operated a network of 238 behavioral healthcare facilities with approximately 10,600 beds in 40 states and puerto rico. with more than 22,500 employees serving approximately 70,000 patients daily, acadia is the largest stand-alone behavioral health company in the u.s. acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics. forward-looking information this press release contains forward-looking statements. generally, words such as “may,” “will,” “should,” “could,” “anticipate,” “expect,” “intend,” “estimate,” “plan,” “continue,” and “believe” or the negative of or other variation on these and other similar expressions identify forward-looking statements. these forward-looking statements are made only as of the date of this press release. we do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. forward-looking statements are based on current expectations and involve risks and uncertainties and our future results could differ significantly from those expressed or implied by our forward-looking statements. factors that may cause actual results to differ materially include, without limitation, (i) the impact of the covid-19 pandemic, including, without limitation, disruption to the u.s. economy and financial markets; reduced admissions and patient volumes; and increased costs relating to labor, supply chain and other expenditures; (ii) the impact of vaccine and other pandemic-related mandates imposed by local, state and federal authorities; (iii) potential difficulties in successfully integrating the operations of acquired facilities or realizing the expected benefits and synergies of our acquisitions, joint ventures and de novo transactions; (iv) acadia’s ability to add beds, expand services, enhance marketing programs and improve efficiencies at its facilities; (v) potential reductions in payments received by acadia from government and third-party payors; (vi) the occurrence of patient incidents, governmental investigations, litigation and adverse regulatory actions, which could adversely affect the price of our common stock and result in substantial payments and incremental regulatory burdens; (vii) the risk that acadia may not generate sufficient cash from operations to service its debt and meet its working capital and capital expenditure requirements; (viii) potential disruptions to our information technology systems or a cybersecurity incident; and (ix) potential operating difficulties, labor costs, client preferences, changes in competition and general economic or industry conditions that may prevent acadia from realizing the expected benefits of its business strategies. these factors and others are more fully described in acadia’s periodic reports and other filings with the sec. three months ended march 31, 2022 2021 (in thousands, except per share amounts) $ 616,653 $ 551,199 335,762 304,333 36,911 31,617 23,699 21,322 11,249 9,412 81,425 72,010 28,926 24,894 15,787 29,027 — 24,650 3,582 4,610 537,341 521,875 79,312 29,324 17,402 6,204 61,910 23,120 — (12,641 ) 61,910 10,479 (1,073 ) (762 ) $ 60,837 $ 9,717 $ 0.68 $ 0.25 — (0.14 ) $ 0.68 $ 0.11 $ 0.67 $ 0.25 — (0.14 ) $ 0.67 $ 0.11 89,258 88,242 91,012 89,941 march 31, december 31, 2022 2021 $ 140,367 $ 133,813 299,022 281,332 90,710 79,886 530,099 495,031 1,795,791 1,771,159 2,200,659 2,199,937 70,319 70,145 3,047 3,080 139,264 133,761 95,460 94,965 $ 4,834,639 $ 4,768,078 $ 21,250 $ 18,594 104,209 98,575 138,092 137,845 25,170 23,348 122,030 126,499 410,751 404,861 1,463,848 1,478,626 77,604 74,368 120,560 116,841 117,062 110,505 2,189,825 2,185,201 70,304 65,388 897 890 2,632,527 2,636,350 (58,914 ) (119,751 ) 2,574,510 2,517,489 $ 4,834,639 $ 4,768,078 2022 2021 $ 61,910 $ 10,479 28,926 24,894 808 1,646 7,925 7,034 3,269 3,962 — 12,641 — 24,650 (478 ) 1,737 (18,222 ) (2,490 ) (16,638 ) 75 (202 ) (3,570 ) 10,501 (3,979 ) 246 2,915 6,298 (4,210 ) (7,556 ) — 76,787 75,784 — 253 76,787 76,037 (50,527 ) (58,682 ) — 1,511,020 — (84,795 ) 1,294 134 (460 ) (74 ) (49,693 ) 1,367,603 — 425,000 — 430,000 (10,000 ) (270,000 ) (2,656 ) — — (2,224,603 ) — (9,935 ) (11,741 ) 8,219 4,290 1,000 (447 ) (377 ) 14 (6,793 ) (20,540 ) (1,647,489 ) — 4,067 6,554 (199,782 ) 133,813 378,697 $ 140,367 $ 178,915 three months ended march 31, 2022 2021 % change $ 592,278 $ 545,478 8.6 % 684,429 669,538 2.2 % 42,968 44,096 -2.6 % 15.9 15.2 4.9 % $ 865 $ 815 6.2 % 27.8 % 26.3 % $ 616,653 $ 551,199 11.9 % 706,326 674,491 4.7 % 45,196 44,164 2.3 % 15.6 15.3 2.3 % $ 873 $ 817 6.8 % 26.3 % 26.0 % three months ended march 31, 2022 2021 $ 60,837 $ 9,717 1,073 762 — 12,641 17,402 6,204 15,787 29,027 28,926 24,894 124,025 83,245 7,925 7,034 3,582 4,610 — 24,650 $ 135,532 $ 119,539 22.0 % 21.7 % 2022 2021 $ 60,837 $ 9,717 — 12,641 3,582 4,610 — 24,650 17,402 6,204 81,821 57,822 20,619 15,618 61,202 42,204 91,012 89,941 $ 0.67 $ 0.47
