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Why Is Acadia Healthcare (ACHC) Up 12.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Acadia Healthcare (ACHC - Free Report) . Shares have added about 12.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Acadia Healthcare due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Acadia Healthcare Q4 Earnings Miss on High Operating Costs
Acadia Healthcare reported fourth-quarter 2021 adjusted earnings of 67 cents per share, missing the Zacks Consensus Estimate by a penny. The bottom line also declined 40.7% year over year.
Revenues at Acadia Healthcare improved to $593.5 million for the quarter under review from $541.3 million a year ago. The top line also beat the consensus mark by 1.4%.
The weak fourth-quarter earnings were caused by increased operating expenses and lower U.S. same facility admissions. The negatives were partially offset by higher patient days and average length of stay.
Operations
Total U.S. same facility revenues rose 10.7% year over year on account of a 2.7% improvement in patient days and 7.8% growth in revenue per patient day. Yet, admissions declined 0.4% year over year.
In the U.S. facility, revenues increased 9.6% year over year. While patient days jumped 2.2% year over year, revenue per patient day increased 7.3% and admissions increased marginally.
Adjusted EBITDA was down 1.1% year over year to $156.1 million. Adjusted EBITDA margin also declined 290 basis points year over year to 26.3%.
Total expenses increased to $497.4 million from $465.2 million in the prior-year quarter, primarily due to a rise in salaries, wages and benefits, professional fees, supplies, and other operating expenses.
In the fourth quarter, the company added 13 beds to its existing operations. With 295 bed additions, it came close to its target of adding around 300 beds to its existing facilities through 2021.
Financial Update (as of Dec 31, 2021)
Cash and cash equivalents of $133.8 million were down 64.7% from the level recorded on Dec 31, 2020.
Total assets of $4,768.1 million plunged 26.6% from the level at 2020-end.
Long-term debt totaled $1,478.6 million, which declined 50.2% from the figure as of Dec 31, 2020. The current portion of the long-term debt was $18.6 million. At fourth quarter-end, its long-term debt to capitalization was 37%.
Acadia Healthcare’s net operating cash flows for 2021 came at $374.5 million, down 43.2% year over year.
2022 Outlook
Revenues are estimated within $2.55-$2.60 billion for 2022, indicating an increase from the 2021 level of $2.3 billion. The company aims to add 300 beds to its existing facilities.
Adjusted EBITDA is projected to be $575-$610 million, signaling an increase from $558.7 million in 2021. Adjusted earnings per share are forecast within $2.85-$3.15, calling for a rise from the 2021 level of $2.56.
Operating cash flows (inclusive of $39 million of CARES Act repayments) are expected to be $350-$400 million. While capital expenditures for expansions are expected within $290-$340 million, the same for maintenance will likely be within $50 million.
First-Quarter 2022
For the first quarter, the company expects revenues within $600-$610 million. Adjusted EBITDA is expected in the range of $130-$135 million. ACHC anticipates earnings per share within 62-66 cents for the March quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
Currently, Acadia Healthcare has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Acadia Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Acadia Healthcare (ACHC) Up 12.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Acadia Healthcare (ACHC - Free Report) . Shares have added about 12.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Acadia Healthcare due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Acadia Healthcare Q4 Earnings Miss on High Operating Costs
Acadia Healthcare reported fourth-quarter 2021 adjusted earnings of 67 cents per share, missing the Zacks Consensus Estimate by a penny. The bottom line also declined 40.7% year over year.
Revenues at Acadia Healthcare improved to $593.5 million for the quarter under review from $541.3 million a year ago. The top line also beat the consensus mark by 1.4%.
The weak fourth-quarter earnings were caused by increased operating expenses and lower U.S. same facility admissions. The negatives were partially offset by higher patient days and average length of stay.
Operations
Total U.S. same facility revenues rose 10.7% year over year on account of a 2.7% improvement in patient days and 7.8% growth in revenue per patient day. Yet, admissions declined 0.4% year over year.
In the U.S. facility, revenues increased 9.6% year over year. While patient days jumped 2.2% year over year, revenue per patient day increased 7.3% and admissions increased marginally.
Adjusted EBITDA was down 1.1% year over year to $156.1 million. Adjusted EBITDA margin also declined 290 basis points year over year to 26.3%.
Total expenses increased to $497.4 million from $465.2 million in the prior-year quarter, primarily due to a rise in salaries, wages and benefits, professional fees, supplies, and other operating expenses.
In the fourth quarter, the company added 13 beds to its existing operations. With 295 bed additions, it came close to its target of adding around 300 beds to its existing facilities through 2021.
Financial Update (as of Dec 31, 2021)
Cash and cash equivalents of $133.8 million were down 64.7% from the level recorded on Dec 31, 2020.
Total assets of $4,768.1 million plunged 26.6% from the level at 2020-end.
Long-term debt totaled $1,478.6 million, which declined 50.2% from the figure as of Dec 31, 2020. The current portion of the long-term debt was $18.6 million. At fourth quarter-end, its long-term debt to capitalization was 37%.
Acadia Healthcare’s net operating cash flows for 2021 came at $374.5 million, down 43.2% year over year.
2022 Outlook
Revenues are estimated within $2.55-$2.60 billion for 2022, indicating an increase from the 2021 level of $2.3 billion. The company aims to add 300 beds to its existing facilities.
Adjusted EBITDA is projected to be $575-$610 million, signaling an increase from $558.7 million in 2021. Adjusted earnings per share are forecast within $2.85-$3.15, calling for a rise from the 2021 level of $2.56.
Operating cash flows (inclusive of $39 million of CARES Act repayments) are expected to be $350-$400 million. While capital expenditures for expansions are expected within $290-$340 million, the same for maintenance will likely be within $50 million.
First-Quarter 2022
For the first quarter, the company expects revenues within $600-$610 million. Adjusted EBITDA is expected in the range of $130-$135 million. ACHC anticipates earnings per share within 62-66 cents for the March quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
Currently, Acadia Healthcare has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Acadia Healthcare has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.