On July 31, 2024, Acadia Healthcare Co Inc (ACHC, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Acadia Healthcare Co Inc acquires and develops behavioral healthcare facilities in the United States, United Kingdom, and Puerto Rico. Acute inpatient psychiatric facilities and specialty treatment facilities contribute the vast majority of Acadia's revenue in the United States. The U.S. facilities receive the major proportion of payments from Medicaid, with the second-largest proportion from commercial payors. In the United Kingdom, the majority of Acadia's revenue comes from its healthcare facilities, and virtually all of the payment received is from the National Health Service.
Performance Overview
Acadia Healthcare Co Inc (ACHC, Financial) reported revenue of $796.0 million for Q2 2024, surpassing the analyst estimate of $784.45 million. This represents an 8.8% increase over the same period in 2023. Same facility revenue grew by 8.3%, driven by a 5.6% increase in revenue per patient day and a 2.6% rise in patient days.
Net income attributable to Acadia was $78.5 million, or $0.85 per diluted share, slightly below the analyst estimate of $0.88. Adjusted income attributable to Acadia was $83.6 million, or $0.91 per diluted share. Adjusted EBITDA for the quarter was $187.6 million, reflecting a 7.6% increase from Q2 2023.
Strategic Investments and Growth
Acadia Healthcare Co Inc (ACHC, Financial) continued to execute its growth strategy by adding 37 beds to existing facilities and opening a new 100-bed acute care hospital in Mesa, Arizona. The company remains on track to add approximately 1,200 beds in 2024, including over 400 new beds to existing facilities and up to 14 new Comprehensive Treatment Centers (CTCs).
Chris Hunter, CEO of Acadia Healthcare Co Inc, commented,
“Acadia delivered another strong financial and operating performance for the second quarter of 2024. With solid execution of our strategy, we achieved top line revenue growth of 8.8% and Adjusted EBITDA growth of 7.6% compared with the second quarter of 2023. These results reflect continued strong demand across our business, and we remain on track to add approximately 1,200 beds in 2024 to meet the growing need for our services.”
Financial Position and Guidance
As of June 30, 2024, Acadia Healthcare Co Inc (ACHC, Financial) had $77.2 million in cash and cash equivalents and $371.5 million available under its $600 million revolving credit facility, with a net leverage ratio of approximately 2.5x. The company revised its 2024 financial guidance, now expecting revenue between $3.180 billion and $3.225 billion, Adjusted EBITDA between $735 million and $765 million, and adjusted earnings per diluted share between $3.45 and $3.65.
| 2024 Guidance Range | Amount |
|---|---|
| Revenue | $3.180 to $3.225 billion |
| Adjusted EBITDA | $735 to $765 million |
| Adjusted earnings per diluted share | $3.45 to $3.65 |
| Interest expense | $110 to $120 million |
| Tax rate | 24.5% to 25.5% |
| Depreciation and amortization expense | $150 to $160 million |
| Stock compensation expense | $40 to $45 million |
| Operating cash flows | $525 to $575 million |
| Expansion capital expenditures | $425 to $475 million |
| Maintenance and IT capital expenditures | $90 to $110 million |
| Total bed additions, excluding acquisitions | Approx. 1,200 beds |
Income Statement Highlights
For the three months ended June 30, 2024, Acadia Healthcare Co Inc (ACHC, Financial) reported total revenue of $796.0 million, up from $731.3 million in Q2 2023. Total expenses for the quarter were $689.6 million, compared to $634.9 million in the same period last year. Net income for Q2 2024 was $80.8 million, compared to $73.5 million in Q2 2023.
Balance Sheet and Cash Flow
As of June 30, 2024, Acadia Healthcare Co Inc (ACHC, Financial) reported total assets of $5.678 billion, up from $5.359 billion as of December 31, 2023. Total liabilities were $2.613 billion, compared to $2.471 billion at the end of 2023. The company reported net cash used in operating activities of $150.1 million for the first six months of 2024, compared to net cash provided by operating activities of $208.2 million in the same period last year.
Conclusion
Acadia Healthcare Co Inc (ACHC, Financial) demonstrated robust revenue growth and strategic expansion in Q2 2024, although earnings per share slightly missed analyst estimates. The company's continued investment in new facilities and bed additions positions it well for future growth. Investors will be keen to see how these strategic initiatives translate into financial performance in the coming quarters.
Explore the complete 8-K earnings release (here) from Acadia Healthcare Co Inc for further details.
