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Acadia Healthcare's (ACHC) Shares Up on Q3 Earnings Beat
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Shares of Acadia Healthcare Company, Inc. (ACHC - Free Report) have gained 23% in the last day's trading owing to robust third-quarter 2020 results wherein the bottom line not only beat estimates but also improved year over year.
Adjusted earnings of 68 cents per share beat the Zacks Consensus Estimate by 23.6%. The bottom line also improved 30.8% year over year.
Moreover, the company’s results reflect strong revenues driven by robust demand for its behavioral health services that addresses mental health issues, which have been triggered by COVID-19 induced uncertainties.
Further, the company’s revenues of $833 million outpaced the Zacks Consensus Estimate by 4.1% and climbed 7.2% year over year.
Total same facility revenues improved 5.9% year over year to $808.7 million due to 2.3% increase in patient days and 3.5% improvement in revenue per patient day.
Consolidated adjusted EBITDA was $159.4 million, up 8.7% year over year.
Consolidated EBITDA margin on same facility basis was 22.9%, expanding 60 basis points (bps) year over year.
Total expenses climbed 8.4% year over year to $788.6 million primarily on the back of higher salaries, wages and benefits, other operating expenses and transaction-related expenses.
During the first nine months of 2020, the company added 206 beds to its U.S. operations. In mid-July, it announced the opening of its 144-bed behavioral health facility in Pennsylvania.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
U.S. same facility revenues climbed 7.5% year over year to $546.4 million. The segment also reported a 4.2% year-over-year increase in patient days and a 3.1% growth in revenue per patient day. EBITDA margin on same facility basis at the segment was 25.7%, expanding 50 bps year over year.
U.K. same facility revenues were up 2.7% year over year to $262.4 million. While number of patient days slid 0.1% from the year-earlier period, revenue per patient per day grew 2.8%. EBITDA margin on same facility basis at the segment was 17.2%, expanding 50 bps year over year.
Financial Update (as of Sep 30, 2020)
Cash and cash equivalents were $338.7 million, which increased to nearly three-fold from the level on Dec 31, 2019.
Long-term debt was $3.1 billion, down 1.2% from the figure as of Dec 31, 2019.
Net cash provided by operating activities for the nine months ended Sep 30, 2020 was $472.2 million, which more than doubled year over year.
The company exited the quarter with total assets worth $7.1 billion, up 3.3% from the level as of Dec 31, 2019.
Fourth-Quarter Guidance
For fourth-quarter 2020, the company anticipates revenues of $810-$835 million and adjusted EBITDA of $160-$165 million. Adjusted earnings per diluted share is expected to be 68-72 cents.
Of the medical sector players that have reported third-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Acadia Healthcare's (ACHC) Shares Up on Q3 Earnings Beat
Shares of Acadia Healthcare Company, Inc. (ACHC - Free Report) have gained 23% in the last day's trading owing to robust third-quarter 2020 results wherein the bottom line not only beat estimates but also improved year over year.
Adjusted earnings of 68 cents per share beat the Zacks Consensus Estimate by 23.6%. The bottom line also improved 30.8% year over year.
Moreover, the company’s results reflect strong revenues driven by robust demand for its behavioral health services that addresses mental health issues, which have been triggered by COVID-19 induced uncertainties.
Further, the company’s revenues of $833 million outpaced the Zacks Consensus Estimate by 4.1% and climbed 7.2% year over year.
Total same facility revenues improved 5.9% year over year to $808.7 million due to 2.3% increase in patient days and 3.5% improvement in revenue per patient day.
Consolidated adjusted EBITDA was $159.4 million, up 8.7% year over year.
Consolidated EBITDA margin on same facility basis was 22.9%, expanding 60 basis points (bps) year over year.
Total expenses climbed 8.4% year over year to $788.6 million primarily on the back of higher salaries, wages and benefits, other operating expenses and transaction-related expenses.
During the first nine months of 2020, the company added 206 beds to its U.S. operations. In mid-July, it announced the opening of its 144-bed behavioral health facility in Pennsylvania.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote
Segmental Details
U.S. same facility revenues climbed 7.5% year over year to $546.4 million. The segment also reported a 4.2% year-over-year increase in patient days and a 3.1% growth in revenue per patient day. EBITDA margin on same facility basis at the segment was 25.7%, expanding 50 bps year over year.
U.K. same facility revenues were up 2.7% year over year to $262.4 million. While number of patient days slid 0.1% from the year-earlier period, revenue per patient per day grew 2.8%. EBITDA margin on same facility basis at the segment was 17.2%, expanding 50 bps year over year.
Financial Update (as of Sep 30, 2020)
Cash and cash equivalents were $338.7 million, which increased to nearly three-fold from the level on Dec 31, 2019.
Long-term debt was $3.1 billion, down 1.2% from the figure as of Dec 31, 2019.
Net cash provided by operating activities for the nine months ended Sep 30, 2020 was $472.2 million, which more than doubled year over year.
The company exited the quarter with total assets worth $7.1 billion, up 3.3% from the level as of Dec 31, 2019.
Fourth-Quarter Guidance
For fourth-quarter 2020, the company anticipates revenues of $810-$835 million and adjusted EBITDA of $160-$165 million. Adjusted earnings per diluted share is expected to be 68-72 cents.
Zacks Rank
Acadia Healthcare sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that have reported third-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>