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Acadia Healthcare (ACHC) Beats on Q1 Earnings and Revenues

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Acadia Healthcare Company, Inc. (ACHC - Free Report) reported first-quarter 2018 adjusted earnings of 52 cents per share, which beat the Zacks Consensus Estimate by 8.33%. Moreover, earnings improved 13% year over year.

Earnings also flew above the company’s guidance of 47 cents to 49 cents.
Better-than-expected earnings were driven by revenue growth led by the addition of beds.

Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise

Quarter Details

Acadia Healthcare’s revenues rose 9.3% to $742 million from the prior-year quarter and surpassed the Zacks Consensus Estimate by 1.89%.

Total same facility revenues grew 5.6% with a 2% increase in patient days and a 3.5% rise in revenues per patient day. The growth can be attributed to the addition of more than 57 new beds to the existing facilities. The company expects to add more than 800 beds to existing and new facilities in 2018.

U.S. same facility revenues were up 6.1% from the year-ago quarter. The company also recorded a 2% increase in patient days year over year, and a 4.0% increase in revenue per patient day.

U.K. same facility revenues rose 4.6% year over year to $236.4 million. The number of patient days inched up 1.9% from the year-ago quarter, and revenue per patient per day was up 2.6%.

Acadia Healthcare’s consolidated adjusted EBITDA was $145.7 million, up 6.9% year over year.

Total expenses increased 10% year over year to $694 million due to higher salaries, professional fees, wages and benefits, supplies as well as rents and leases.

Financial Update

Cash and cash equivalents as of Mar 31, 2018 were $57.8 million, down 14.1% from the 2017-end level.

Long-term debt was $3.21 billion as of Mar 31, 2018, almost unchanged from the 2017-end level.

Net cash provided by operating activities at the end of the first quarter was $72.35 million, up 27% year over year.

2018 Guidance

For 2018, the company expects adjusted earnings per share between $2.58 and $2.62 (versus $2.42 and $2.48 earlier) on revenues of $3.04-$3.08 billion (unchanged). Adjusted EBITDA stayed unchanged and is expected between $637 million and $644 million.

The company projects an exchange rate of $1.35 per British Pound Sterling and a tax rate of about 16% (versus 21% as anticipated earlier).

Zacks Rank and Other Stocks

Acadia Healthcare carries a Zacks Rank #2 (Buy). Among the other firms in the medical sector that have reported first-quarter earnings so far, the bottom line of Anthem Inc. , Aetna Inc. and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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