Acadia Healthcare Company (ACHC), a provider of inpatient behavioral healthcare services, has recorded an 84.07 percent surge in profit for the quarter ended Jun. 30, 2014.
The company earned $22.45 million or $0.43 a share in the second-quarter compared with $12.20 million or $0.24 a share a year ago. Adjusted earnings per share came in at $0.32, when analysts expected $0.31.
Revenue during the second-quarter grew 20.46 percent to $213.80 million from $177.49 million in the last year period.
Gross margin expanded by 46 basis points over the previous year period to 95.04 percent. Total expenses as a percentage of revenues decreased to 87.48 percent from 93.98 percent in the same period last year. That has resulted in improvement of 650 basis points in operating margins to 12.52 percent.
The company disclosed operating income of $26.77 million, compared with $10.68 million in the last year period.
"We are pleased to report a continuation of strong operating and financial results for Acadia’s second quarter," said Joey Jacobs, chairman and CEO of Acadia. "Among the quarter’s highlights, we produced growth in revenue and adjusted income from continuing operations in excess of 20%, increased our margins and achieved a double-digit increase in same facility revenue."
Acadia today affirmed its guidance for 2014 adjusted earnings per diluted share in a range of $1.44 to $1.46, which was recently revised from the previous range of $1.26 to $1.29 to account for the accretive impact of the PiC transaction on the second half of 2014.
Cash Flow
Acadia Healthcare Company has generated cash of $29.24 million from operating activities during the first half, down 0.02 percent or $0 million when compared with the last year period. The company has generated 7.04 cents of operating cash flow in every sales dollar for the first half, down from 8.63 cents in the same period last year.
The company has spent $72.09 million cash to meet investing activities during the first half, as against cash outgo of $155.95 million in the last year period. It has made net capital expenditure of $61.65 million during the first half, which was higher by 83.11 percent or $27.98 million, from a year ago.
The company has generated cash of $316.02 million from financing activities during the first half, up $231.32 million, when compared with the last year period. It has borrowed net of $3.75 million through debt during the first half. It has raised net of $374.34 million by selling common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $277.74 million, up $270.34 million from Jun. 30, 2013.
Working Capital
Acadia Healthcare Company has witnessed an increase in the working capital over the last one year. The company's working capital stood at $346.93 million as at Jun. 30, 2014, up $306.52 million or 758.53 percent from $40.41 million on Jun. 30, 2013. It registered an increase in current ratio to 4.38 as at Jun. 30, 2014 from 1.47 on Jun. 30, 2013.
Debt Position
Acadia Healthcare Company has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $567.26 million, down 0.41 percent or $2.32 million, from Jun. 30, 2013.
The company's total debt was 35.62 percent of total assets as on Jun. 30, 2014, compared with 51.12 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 0.63 on Jun. 30, 2014 compared with 1.26 on Jun. 30, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 2.75 from 1.13 in the same period last year.
Shares of the company went down by 82 cents or 1.62 percent to close at $50.25 on Tuesday.
