Acadia Healthcare Company Inc. (ACHC:NASDAQ) yesterday announced financial results for its third quarter 2020 ended September 30, 2020.
The company stated that in Q3/20 it posted revenue of $833.3 million, compared to $777.3 million in Q3/19.
The company said that at its U.S. locations same facility revenue in Q3/20 increased 7.5% with a 4.2% increase in patient days and a 3.1% increase in revenue per patient day, compared to the same period last year. At its U.K. operations, the firm noted that same facility revenue also increased 2.7% during the same period, due to a 2.8% increase in revenue per patient day, which was offset by a 0.1% decrease in patient days.
Acadia indicated that consolidated adjusted EBITDA in Q3/20 was $159.4 million, up from $146.6 million in Q3/19. The firm noted that excluding the reversal of the CARES Act income, consolidated adjusted EBITDA was $177.5 million, or $0.68 per diluted share.
The firm further advised that in Q3/20 it recorded net income of $37.0 million, or $0.42 per diluted share, compared to net income of $42.6 million, or $0.48 per diluted share in Q3/19.
The firm explained that Q3/20 results included a reversal of $18.1 million in other income that it recorded in Q2/20 from the Provider Relief Fund (PRF) rolled out by the U.S Government's CARES Act. The company indicated that its decision to reverse this income was based on guidance issued by the U.S. Department of Health and Human Services (HHS). The firm said it received $12.8 million of additional general distributions from the PRF in Q3/20 and has now received total program distributions of about $32.5 million. The company stated that it has classified and is carrying these payments as accrued liabilities on its balance sheet pending further review of HHS program guidelines.
Acadia Healthcare's CEO Debbie Osteen commented, "We are pleased with our financial and operating performance for the third quarter, reflecting strong demand for our behavioral health services. The ongoing challenges and uncertainties related to the COVID-19 global pandemic have had a profound impact on everyone's lives, especially for the more vulnerable populations served by Acadia...We expect demand for our services will continue to increase as the mental and emotional toll caused by economic and societal concerns persists and more individuals across our markets look to Acadia for the highest quality of patient care."
"We have continued to make the necessary investments in our facilities to support further growth opportunities through additional service offerings and bed expansions. During the quarter, we added 100 beds to our U.S. operations, bringing our total to 206 new bed additions in 2020. We announced the opening of our new 144-bed behavioral health facility, Tower Behavioral Health, in Pennsylvania with our joint venture partner, Tower Health...As previously announced, we recently re-launched the formal process regarding the potential sale of our U.K. business...As we continue to work with our financial and legal advisors, we will update the market on the sales process when and as we determine it is appropriate," Osteen added.
The company stated that it has maintained a strong balance sheet and that as of September 30, 2020, it had $339 million in cash and cash equivalents. The firm advised that it also has access to a $500 million revolving credit facility that it can draw on if desired.
Acadia Healthcare additionally provided some forward guidance for Q4/20. The company advised that it expects that revenue in Q4/20 will be in the range of $810-835 million. The firm also stated that it estimates that adjusted EBITDA will be in the range of $160-165 million and adjusted earnings per diluted share in a range of $0.68-0.72 in the same period.
Acadia Healthcare is headquartered in Franklin, Tenn., and is a provider of behavioral healthcare services. The company employs more than 42,000 people and operates a network of 582 behavioral healthcare facilities in the U.S., Puerto Rico and the U.K. The firm delivers its behavioral healthcare services via inpatient psychiatric hospitals, outpatient clinics, residential treatment centers and specialty treatment facilities. The firm states on its company website that "its expansive network of treatment facilities creates greater access to care, reduces the stigma associated with mental illness and addiction and offers those in our communities a safe environment in which to receive the treatment they need."
Acadia Healthcare began the day with a market capitalization of around $2.6 billion with approximately 89 million shares outstanding and a short interest of about 8.4%. ACHC shares opened 16% higher today at $33.63 (+$4.65, +16.05%) over yesterday's $28.98 closing price and reached a new 52-week high price this morning of $35.76. The stock has traded today between $32.94 and $35.76 per share and is currently trading at $34.92 (+$5.94, +20.50%).
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