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Acadia Healthcare (ACHC) Q4 Earnings Miss on High Operating Costs
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Acadia Healthcare Company, Inc. (ACHC - Free Report) reported fourth-quarter 2021 adjusted earnings of 67 cents per share, missing the Zacks Consensus Estimate by a penny. The bottom line also declined 40.7% year over year.
Revenues at Acadia Healthcare improved to $593.5 million for the quarter under review from $541.3 million a year ago. The top line also beat the consensus mark by 1.4%.
The weak fourth-quarter earnings were caused by increased operating expenses and lower U.S. same facility admissions. The negatives were partially offset by higher patient days and average length of stay.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Total U.S. same facility revenues rose 10.7% year over year on account of a 2.7% improvement in patient days and 7.8% growth in revenue per patient day. Yet, admissions declined 0.4% year over year.
In the U.S. facility, revenues increased 9.6% year over year. While patient days jumped 2.2% year over year, revenue per patient day increased 7.3% and admissions increased marginally.
Adjusted EBITDA was down 1.1% year over year to $156.1 million. Adjusted EBITDA margin also declined 290 basis points year over year to 26.3%.
Total expenses increased to $497.4 million from $465.2 million in the prior-year quarter, primarily due to a rise in salaries, wages and benefits, professional fees, supplies, and other operating expenses.
In the fourth quarter, the company added 13 beds to its existing operations. With 295 bed additions, it came close to its target of adding around 300 beds to its existing facilities through 2021.
Financial Update (as of Dec 31, 2021)
Cash and cash equivalents of $133.8 million were down 64.7% from the level recorded on Dec 31, 2020.
Total assets of $4,768.1 million plunged 26.6% from the level at 2020-end.
Long-term debt totaled $1,478.6 million, which declined 50.2% from the figure as of Dec 31, 2020. The current portion of the long-term debt was $18.6 million. At fourth quarter-end, its long-term debt to capitalization was 37%.
Acadia Healthcare’s net operating cash flows for 2021 came at $374.5 million, down 43.2% year over year.
2022 View
Revenues are estimated within $2.55-$2.60 billion for 2022, indicating an increase from the 2021 level of $2.3 billion. The company aims to add 300 beds to its existing facilities.
Adjusted EBITDA is projected to be $575-$610 million, signaling an increase from $558.7 million in 2021. Adjusted earnings per share are forecast within $2.85-$3.15, calling for a rise from the 2021 level of $2.56.
Operating cash flows (inclusive of $39 million of CARES Act repayments) are expected to be $350-$400 million. While capital expenditures for expansions are expected within $290-$340 million, the same for maintenance will likely be within $50 million.
First-Quarter 2022
For the first quarter, the company expects revenues within $600-$610 million. Adjusted EBITDA is expected in the range of $130-$135 million. ACHC anticipates earnings per share within 62-66 cents for the March quarter.
Of the Medical space players that have reported fourth-quarter results so far, Tenet Healthcare Corporation (THC - Free Report) , Mednax, Inc. (MD - Free Report) and Community Health Systems, Inc. (CYH - Free Report) beat the Zacks Consensus Estimate for earnings.
Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate by 73.1%, thanks to reduced expenses and operational excellence. Profits from Tenet Healthcare’s Hospital Operations and Other business increased year over year, aiding the results.
Mednax reported fourth-quarter 2021 adjusted earnings of 50 cents per share, which outpaced the Zacks Consensus Estimate by 21.9% due to a rise in patient volumes. On a preliminary basis, Mednax expects 2022 adjusted EBITDA to be at least $270 million.
Community Health Systems reported fourth-quarter 2021 adjusted net income of $1.15 per share, beating the Zacks Consensus Estimate by 130% on the back of lower net interest expenses. CYH anticipates net income per share for 2022 in the range of $1-$1.50.
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Acadia Healthcare (ACHC) Q4 Earnings Miss on High Operating Costs
Acadia Healthcare Company, Inc. (ACHC - Free Report) reported fourth-quarter 2021 adjusted earnings of 67 cents per share, missing the Zacks Consensus Estimate by a penny. The bottom line also declined 40.7% year over year.
Revenues at Acadia Healthcare improved to $593.5 million for the quarter under review from $541.3 million a year ago. The top line also beat the consensus mark by 1.4%.
The weak fourth-quarter earnings were caused by increased operating expenses and lower U.S. same facility admissions. The negatives were partially offset by higher patient days and average length of stay.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote
Operations
Total U.S. same facility revenues rose 10.7% year over year on account of a 2.7% improvement in patient days and 7.8% growth in revenue per patient day. Yet, admissions declined 0.4% year over year.
In the U.S. facility, revenues increased 9.6% year over year. While patient days jumped 2.2% year over year, revenue per patient day increased 7.3% and admissions increased marginally.
Adjusted EBITDA was down 1.1% year over year to $156.1 million. Adjusted EBITDA margin also declined 290 basis points year over year to 26.3%.
Total expenses increased to $497.4 million from $465.2 million in the prior-year quarter, primarily due to a rise in salaries, wages and benefits, professional fees, supplies, and other operating expenses.
In the fourth quarter, the company added 13 beds to its existing operations. With 295 bed additions, it came close to its target of adding around 300 beds to its existing facilities through 2021.
Financial Update (as of Dec 31, 2021)
Cash and cash equivalents of $133.8 million were down 64.7% from the level recorded on Dec 31, 2020.
Total assets of $4,768.1 million plunged 26.6% from the level at 2020-end.
Long-term debt totaled $1,478.6 million, which declined 50.2% from the figure as of Dec 31, 2020. The current portion of the long-term debt was $18.6 million. At fourth quarter-end, its long-term debt to capitalization was 37%.
Acadia Healthcare’s net operating cash flows for 2021 came at $374.5 million, down 43.2% year over year.
2022 View
Revenues are estimated within $2.55-$2.60 billion for 2022, indicating an increase from the 2021 level of $2.3 billion. The company aims to add 300 beds to its existing facilities.
Adjusted EBITDA is projected to be $575-$610 million, signaling an increase from $558.7 million in 2021. Adjusted earnings per share are forecast within $2.85-$3.15, calling for a rise from the 2021 level of $2.56.
Operating cash flows (inclusive of $39 million of CARES Act repayments) are expected to be $350-$400 million. While capital expenditures for expansions are expected within $290-$340 million, the same for maintenance will likely be within $50 million.
First-Quarter 2022
For the first quarter, the company expects revenues within $600-$610 million. Adjusted EBITDA is expected in the range of $130-$135 million. ACHC anticipates earnings per share within 62-66 cents for the March quarter.
Zacks Rank
Acadia Healthcare currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Firms
Of the Medical space players that have reported fourth-quarter results so far, Tenet Healthcare Corporation (THC - Free Report) , Mednax, Inc. (MD - Free Report) and Community Health Systems, Inc. (CYH - Free Report) beat the Zacks Consensus Estimate for earnings.
Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate by 73.1%, thanks to reduced expenses and operational excellence. Profits from Tenet Healthcare’s Hospital Operations and Other business increased year over year, aiding the results.
Mednax reported fourth-quarter 2021 adjusted earnings of 50 cents per share, which outpaced the Zacks Consensus Estimate by 21.9% due to a rise in patient volumes. On a preliminary basis, Mednax expects 2022 adjusted EBITDA to be at least $270 million.
Community Health Systems reported fourth-quarter 2021 adjusted net income of $1.15 per share, beating the Zacks Consensus Estimate by 130% on the back of lower net interest expenses. CYH anticipates net income per share for 2022 in the range of $1-$1.50.