Acadia Healthcare Company, Inc. ACHC reported adjusted first-quarter earnings of 40 cents per share, which beat the Zacks Consensus Estimate by 14.3%. However, the bottom line declined 52.4% year over year.
Total revenues increased 0.3% year over year to $770.5 million. The top line was in line with the consensus mark.
The better-than-expected quarterly earnings benefited from increased patient days and higher admissions. However, lower revenue per patient day and higher expenses partially offset the upsides.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote
ACHC’s Q1 Operations
Same-facility revenues of $759.7 million rose 2.1% year over year but fell short of our estimate of $763.1 million. The year-over-year improvement was driven by a 2.2% increase in patient days.
Admissions grew 2.1% year over year. The average length of stay rose 0.1% year over year but missed our growth estimate of 1%. Revenue per patient day declined 0.2% year over year.
In the overall facility, patient days improved 0.8% year over year, while admissions grew 1.3% year over year. Revenue per patient day decreased 0.5% year over year, which missed our growth estimate of 2%. The average length of stay declined 0.5% year over year but performed better than our estimated decrease of 1.1%.
Total adjusted EBITDA declined 22.8% year over year to $134.2 million and came marginally lower than our estimate of $134.9 million.
Total expenses of $757 million rose 13.1% year over year and were higher than our estimate of $744.6 million. The year-over-year increase was due to higher salaries, wages and benefits, other operating expenses and supply costs. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Financial Update (as of March 31, 2025)
Acadia Healthcare exited the first quarter with cash and cash equivalents of $91.2 million, which increased from $76.3 million at the 2024-end level. It had a leftover capacity of $901.6 million under its $1 billion revolving credit facility at the first-quarter end.
Total assets of $6.1 billion increased from $6 billion at 2024-end.
Long-term debt amounted to $2.2 billion, which rose from $1.9 billion as of Dec. 31, 2024. The current portion of long-term debt was $16.3 million.
Total equity of $3 billion decreased 1% from the 2024-end level. The net leverage ratio was around 3.2 at the first-quarter end.
Net cash provided by operations totaled $11.5 million in the first quarter of 2025 against $321.3 million used in the prior-year comparable period.
Acadia’s Share Repurchase Update
On Feb. 27, 2025, management authorized a share repurchase program for up to $300 million of outstanding shares of its common stock. It bought back $47.3 million worth of shares in the first quarter.
Acadia’s 2025 Guidance Reaffirmed
Revenues are still projected in the range of $3.3 billion-$3.4 billion.
Adjusted EBITDA is estimated to remain in the range of $675-$725 million.
Adjusted earnings per share (EPS) are predicted to be between $2.50 and $2.80.
Interest expenses are anticipated to stay within the band of $130-$140 million. Depreciation and amortization expenses are expected in the $175-$185 million band. The tax rate is expected to continue in the range of 25-26%.
Operating cash flows are forecast to continue in the range of $460-$510 million. Expansion capital expenditure is anticipated to be between $525 million and $575 million. Maintenance and IT capital expenditures are expected to be in the range of $105-$115 million.
Management estimates bed additions between 800 and 1,000 in 2025.
ACHC’s Zacks Rank & Key Picks
ACHC currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Encompass Health Corporation EHC, Adherex Technologies, Inc. FENC and GeneDx Holdings Corp WGS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Encompass Health’s current-year earnings of $5.01 per share has witnessed one upward revision in the past seven days against none in the opposite direction. Encompass Health beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.3%. The consensus estimate for current-year revenues is pegged at $5.9 billion, calling for 9.5% year-over-year growth.
The Zacks Consensus Estimate for Adherex Technologies’ current-year earnings is pegged at 3 cents per share. Adherex Technologies has witnessed one upward revision in the past 30 days against none in the opposite direction. The consensus estimate for current-year revenues is pegged at $54.5 million, implying 14.7% year-over-year growth.
The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 billion, calling for 22.5% year-over-year growth.
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