In This Article:
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Total Revenue: $816 million, an increase of 8.7% over Q3 2023.
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Same Facility Revenue Growth: 8.6% compared to Q3 2023.
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Patient Day Growth: 4.7% increase.
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Revenue per Patient Day: Increased by 3.6%.
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Adjusted EBITDA: $194.3 million, a growth of 10.5% over the prior year.
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Adjusted EBITDA Margin: 23.8%, up from 23.4% last year.
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Net Leverage Ratio: Approximately 2.5 times.
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Cash and Cash Equivalents: $82.1 million as of September 30, 2024.
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Available Credit Facility: $321.5 million under a $600 million revolving credit facility.
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Guidance for 2024 Revenue: $3.15 billion to $3.165 billion.
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Guidance for 2024 Adjusted EBITDA: $725 million to $735 million.
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Guidance for 2024 Adjusted EPS: $3.35 to $3.45.
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Bed Growth Targets: On pace to complete construction on approximately 1,200 beds in 2024.
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Facility Closures: Closed two subscale satellite programs comprising 104 beds in Q3.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Acadia Healthcare Co Inc (NASDAQ:ACHC) reported strong third-quarter results with total revenue of $816 million, representing an 8.7% growth over the same period last year.
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Adjusted EBITDA grew by 10.5% year-over-year, demonstrating solid operating leverage.
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The company is on track to complete construction on approximately 1,200 beds this year, including nearly 700 beds in the fourth quarter, which will help meet the increasing demand for behavioral health services.
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Acadia Healthcare Co Inc (NASDAQ:ACHC) has made significant investments in technology to enhance patient and staff safety, including wearable remote patient monitoring systems and electronic medical records.
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The company maintains a strong financial position with $82.1 million in cash and cash equivalents and a net leverage ratio of approximately 2.5 times, providing flexibility for strategic investments.
Negative Points
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Acadia Healthcare Co Inc (NASDAQ:ACHC) is facing legal scrutiny, including a subpoena from the SEC and ongoing investigations related to admissions, length of stay, and billing practices.
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The company experienced lower-than-expected volume growth in October, attributed to recent negative media coverage, impacting their revenue and EBITDA guidance for the fourth quarter.
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There is a potential risk of sustained volume pressure if the negative media impact persists, which could necessitate cost structure adjustments.
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The company decided to close two subscale satellite programs, resulting in a reduction of 104 beds, which may impact future revenue.
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Despite investments in technology and quality improvements, the company faces challenges in maintaining referral sources and addressing concerns raised by media reports.