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Acadia Healthcare (ACHC) Beats on Earnings & Revenues in Q4

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Acadia Healthcare Company, Inc. (ACHC - Free Report) reported fourth-quarter 2017 adjusted earnings of 61 cents per share, which beat the Zacks Consensus Estimate by 10.8%. Moreover, earnings improved 3.4% year over year.

The quarterly results include a non-cash decrease in the provision for income taxes of $20.2 million from the impact of the Tax Cuts and Jobs Act of 2017 on net deferred tax liabilities.

Quarter Details

Acadia Healthcare’s revenues for the fourth quarter rose 3.1% to $724.5 million from the prior-year quarter and surpassed the Zacks Consensus Estimate by 1.4%.

 

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

 

 

Same facility revenues improved 5.6%, with 2.4% increase in patient days and 3.1% rise in revenues per patient day.

Total same facility revenues grew 5.6% with 2.4% increase in patient days and 3.1% rise in revenues per patient day. The growth can be attributed to the addition of more than 750 new beds to existing facilities in 2017. The company expects to add more than 800 beds to existing and new facilities in 2018.

U.S. same facility revenues were up 6.6% from the year-ago quarter. The company also recorded a 3.1% increase in patient days year over year.
U.K. same facility revenues rose 3.7% year over year to $236.4 million. The number of patient days inched up 1.5% from the year-ago quarter.

Acadia Healthcare’s consolidated adjusted EBITDA was $153.5 million, up 2.7% year over year.

Total expenses inched up nearly 0.5% year over year to $663.9 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 Dec 31, 2017 were $67.3 million, up 17.9% from 2016-end level.

Long-term debt was $3.21 billion as of Dec 31, 2017, down 1.5% from the 2016-end level.

Net cash provided by operating activities for 2017 was Sep 30, 2017 was $399.6 million, up 10.5% year over year.

2018 & 1Q18 Guidance

For 2018, the company expects adjusted earnings per share between $2.42 and $2.48 on revenues of $3.04-$3.08 billion. Adjusted EBITDA 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 21%.

For first quarter of 2018, the company expects adjusted earnings per share between 47 cents and 49 cents.

Zacks Rank

Acadia Healthcare carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Players

Among other firms in the medical sector that have reported their fourth-quarter 2017 earnings, the bottom line of HCA Healthcare, Inc. (HCA - Free Report) and Mednax, Inc. (MD - Free Report) beat their respective Zacks Consensus Estimate by 13.4% and 5.13%, respectively. However, The Ensign Group, Inc.’s (ENSG - Free Report) bottom line missed the same by 5.6%.
 

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