Acadia Healthcare Company, Inc. (ACHC) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $117.81 million, or $ 1.36 a share in the quarter, against a net profit of $29.55 million, or $0.42 a share in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $49.92 million, or $0.58 a share compared with $43.89 million or $0.62 a share, a year ago. Revenue during the quarter surged 53.14 percent to $734.66 million from $479.73 million in the previous year period. Gross margin for the quarter expanded 35 basis points over the previous year period to 95.84 percent. Operating margin for the quarter stood at negative 8.65 percent as compared to a positive 16.76 percent for the previous year period.
Operating loss for the quarter was $63.58 million, compared with an operating income of $80.41 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $155.84 million compared with $108.47 million in the prior year period. At the same time, adjusted EBITDA margin contracted 140 basis points in the quarter to 21.21 percent from 22.61 percent in the last year period.
"Acadia's revenue grew in excess of 50% for the third quarter of 2016, the ninth consecutive quarter of such growth versus the comparable prior year quarter," commented Joey Jacobs, chairman and chief executive officer of Acadia. "For the latest quarter, this growth was, again, primarily due to the increase in our inpatient beds during the last 12 months. We had approximately 17,900 beds at September 30, 2016, including approximately 7,100 added through the acquisition of the Priory Group in the first quarter of 2016, compared with approximately 9,600 a year earlier. For the nine months ended September 30, 2016, we added approximately 7,300 beds through acquisitions, 548 beds to existing facilities and 140 beds through the opening of two de novo facilities. During the third quarter, we added 173 beds to existing facilities in the U.S. and U.K. As previously announced on October 18, 2016, we signed a definitive agreement to sell 21 existing behavioral health facilities and one de novo behavioral health facility with approximately 1,000 beds in the U.K., subject to approval of the Competition and Markets Authority (CMA)."
For fiscal year 2016, On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.55 to $0.56 for the fourth-quarter. The company expects diluted earnings per share to be in the range of $2.41 to $2.42 on adjusted basis.
Operating cash flow improves significantly
Acadia Healthcare Company, Inc. has generated cash of $259.66 million from operating activities during the nine month period, up 82.75 percent or $117.57 million, when compared with the last year period. The company has spent $971.80 million cash to meet investing activities during the nine month period as against cash outgo of $616.85 million in the last year period.
Cash flow from financing activities was $738.15 million for the nine month period, up 70.73 percent or $305.81 million, when compared with the last year period.
Cash and cash equivalents stood at $27.75 million as on Sep. 30, 2016, down 45.33 percent or $23.01 million from $50.76 million on Sep. 30, 2015.
Working capital drops significantly
Acadia Healthcare Company, Inc. has witnessed a decline in the working capital over the last year. It stood at $12.71 million as at Sep. 30, 2016, down 88.83 percent or $101.11 million from $113.82 million on Sep. 30, 2015. Current ratio was at 1.03 as on Sep. 30, 2016, down from 1.43 on Sep. 30, 2015.
Days sales outstanding went down to 29 days for the quarter compared with 38 days for the same period last year.
At the same time, days payable outstanding went down to 228 days for the quarter from 292 for the same period last year.
Debt increases substantially
Acadia Healthcare Company, Inc. has witnessed an increase in total debt over the last one year. It stood at $3,661.48 million as on Sep. 30, 2016, up 71.55 percent or $1,527.16 million from $2,134.31 million on Sep. 30, 2015. Total debt was 56.74 percent of total assets as on Sep. 30, 2016, compared with 51.49 percent on Sep. 30, 2015. Debt to equity ratio was at 1.63 as on Sep. 30, 2016, up from 1.28 as on Sep. 30, 2015.
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