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Acadia Healthcare Q4 Earnings Miss on Reduced Length of Stay
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Acadia Healthcare Company, Inc. (ACHC - Free Report) reported adjusted fourth-quarter earnings of 64 cents per share, which missed the Zacks Consensus Estimate by 11.1%. The bottom line declined 24.7% year over year.
Total revenues increased 4.2% year over year to $774.2 million. However, the top line missed the consensus mark by a whisker.
Weak quarterly earnings were due to lower average length of stay and higher expenses. Adjusted EBITDA also affected the bottom line in the fourth quarter. However, improving revenue per patient day, patient days and higher admissions partially offset the negatives.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Same-facility revenues of $765 million rose 4.7% year over year but fell short of our estimate of $796.7 million. The year-over-year improvement was driven by 1.4% growth in revenue per patient day and a 3.2% increase in patient days.
Admissions grew 4.2% year over year. The average length of stay declined 1% year over year and missed our growth estimate of 1.3%.
In the overall facility, patient days improved 2.5% year over year while admissions grew 2.9% year over year. Revenue per patient day improved 1.7% year over year, which was lower than our growth estimate of 3.7%. The average length of stay declined 0.4% year over year and lagged our growth estimate of 2.5%.
Adjusted EBITDA declined 9.7% year over year to $153.1 million and came lower than our estimate of $179.2 million. Adjusted EBITDA margin deteriorated 300 bps year over year to 19.8%.
Total expenses of $736.2 million rose 11.1% year over year and higher than our estimate of $703.3 million. The year-over-year increase was due to higher salaries, wages and benefits, other operating expenses and professional fees.
Financial Update (as of Dec. 31, 2024)
Acadia Healthcare exited the fourth quarter with cash and cash equivalents of $76.3 million, which decreased 23.8% from the 2023-end level. It had a leftover capacity of $226.5 million under its $600 million revolving credit facility at the fourth-quarter end.
Total assets of $6 billion increased 9.5% from the figure at 2023-end.
Long-term debt amounted to $1.9 billion, which escalated 11.2% from the figure as of Dec. 31, 2023. The current portion of long-term debt was $76.8 million.
Total equity of $3.1 billion increased 10.5% from the 2023-end level. The net leverage ratio was around 2.7X at the fourth-quarter end.
Net cash provided by operations totaled $129.7 million in 2024 compared with $462.3 million in the prior-year comparable period.
Full Year Update
Revenues rose 7.7% year over year in 2024. Adjusted EPS declined 5.4% year over year in 2024 to $3.30 per share.
First-Quarter 2025 Guidance
Revenues are projected to be between $765 million and $775 million.
Adjusted EBITDA is estimated to be in the range of $130-$135 million
2025 Guidance
Revenues are projected to be between $3.3 billion and $3.4 billion. The mid-point of the outlook indicates an improvement of 6.2% from the 2024 figure.
Adjusted EBITDA is estimated to be in the range of $675-$725 million. The mid-point of the outlook indicates 1.5% decline from the 2024 figure.
Adjusted earnings per share (EPS) is predicted to be between $2.50 and $2.80.
Interest expenses are estimated to be within the band of $130-$140 million. Depreciation and amortization expenses are anticipated to be in the $175-$185 million band. The tax rate is expected to be in the range of 25-26%. Stock compensation expenses are expected to be between $45 million and $50 million.
Operating cash flows are forecasted to be 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 beds between 800 and 1,000 in 2025.
Here are some stocks in the broader Medical space that have also reported earnings for the December quarter: HCA Healthcare, Inc. (HCA - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and The Cigna Group (CI - Free Report) .
HCA Healthcare reported fourth-quarter 2024 adjusted EPS of $6.22, which outpaced the Zacks Consensus Estimate by 4.2%, driven by higher patient volumes giving rise to an increased number of inpatient surgeries and same-facility emergency room visits. However, the upside was partly offset by elevated salaries and benefits expenses. Additional expenses due to Hurricane Helene and Hurricane Milton also impacted the results.
Ensign reported fourth-quarter 2024 adjusted EPS of $1.49, which outpaced the Zacks Consensus Estimate by 1.4% thanks to improved occupancy rates, higher patient days and increased skilled service revenues. The positives were partly offset by an elevated expense level due to the higher cost of services and rents.
Cigna reported fourth-quarter 2024 adjusted EPS of $6.64, which missed the Zacks Consensus Estimate by 15.2% due to a decline in its overall medical customer base and elevated medical costs. Nevertheless, the downside was partly offset by expanding specialty volumes in the Evernorth Health Services segment and new client wins.
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Acadia Healthcare Q4 Earnings Miss on Reduced Length of Stay
Acadia Healthcare Company, Inc. (ACHC - Free Report) reported adjusted fourth-quarter earnings of 64 cents per share, which missed the Zacks Consensus Estimate by 11.1%. The bottom line declined 24.7% year over year.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Total revenues increased 4.2% year over year to $774.2 million. However, the top line missed the consensus mark by a whisker.
Weak quarterly earnings were due to lower average length of stay and higher expenses. Adjusted EBITDA also affected the bottom line in the fourth quarter. However, improving revenue per patient day, patient days and higher admissions partially offset the negatives.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote
Q4 Operations
Same-facility revenues of $765 million rose 4.7% year over year but fell short of our estimate of $796.7 million. The year-over-year improvement was driven by 1.4% growth in revenue per patient day and a 3.2% increase in patient days.
Admissions grew 4.2% year over year. The average length of stay declined 1% year over year and missed our growth estimate of 1.3%.
In the overall facility, patient days improved 2.5% year over year while admissions grew 2.9% year over year. Revenue per patient day improved 1.7% year over year, which was lower than our growth estimate of 3.7%. The average length of stay declined 0.4% year over year and lagged our growth estimate of 2.5%.
Adjusted EBITDA declined 9.7% year over year to $153.1 million and came lower than our estimate of $179.2 million. Adjusted EBITDA margin deteriorated 300 bps year over year to 19.8%.
Total expenses of $736.2 million rose 11.1% year over year and higher than our estimate of $703.3 million. The year-over-year increase was due to higher salaries, wages and benefits, other operating expenses and professional fees.
Financial Update (as of Dec. 31, 2024)
Acadia Healthcare exited the fourth quarter with cash and cash equivalents of $76.3 million, which decreased 23.8% from the 2023-end level. It had a leftover capacity of $226.5 million under its $600 million revolving credit facility at the fourth-quarter end.
Total assets of $6 billion increased 9.5% from the figure at 2023-end.
Long-term debt amounted to $1.9 billion, which escalated 11.2% from the figure as of Dec. 31, 2023. The current portion of long-term debt was $76.8 million.
Total equity of $3.1 billion increased 10.5% from the 2023-end level. The net leverage ratio was around 2.7X at the fourth-quarter end.
Net cash provided by operations totaled $129.7 million in 2024 compared with $462.3 million in the prior-year comparable period.
Full Year Update
Revenues rose 7.7% year over year in 2024. Adjusted EPS declined 5.4% year over year in 2024 to $3.30 per share.
First-Quarter 2025 Guidance
Revenues are projected to be between $765 million and $775 million.
Adjusted EBITDA is estimated to be in the range of $130-$135 million
2025 Guidance
Revenues are projected to be between $3.3 billion and $3.4 billion. The mid-point of the outlook indicates an improvement of 6.2% from the 2024 figure.
Adjusted EBITDA is estimated to be in the range of $675-$725 million. The mid-point of the outlook indicates 1.5% decline from the 2024 figure.
Adjusted earnings per share (EPS) is predicted to be between $2.50 and $2.80.
Interest expenses are estimated to be within the band of $130-$140 million. Depreciation and amortization expenses are anticipated to be in the $175-$185 million band. The tax rate is expected to be in the range of 25-26%. Stock compensation expenses are expected to be between $45 million and $50 million.
Operating cash flows are forecasted to be 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 beds between 800 and 1,000 in 2025.
Zacks Rank
Acadia Healthcare currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Here are some stocks in the broader Medical space that have also reported earnings for the December quarter: HCA Healthcare, Inc. (HCA - Free Report) , The Ensign Group, Inc. (ENSG - Free Report) and The Cigna Group (CI - Free Report) .
HCA Healthcare reported fourth-quarter 2024 adjusted EPS of $6.22, which outpaced the Zacks Consensus Estimate by 4.2%, driven by higher patient volumes giving rise to an increased number of inpatient surgeries and same-facility emergency room visits. However, the upside was partly offset by elevated salaries and benefits expenses. Additional expenses due to Hurricane Helene and Hurricane Milton also impacted the results.
Ensign reported fourth-quarter 2024 adjusted EPS of $1.49, which outpaced the Zacks Consensus Estimate by 1.4% thanks to improved occupancy rates, higher patient days and increased skilled service revenues. The positives were partly offset by an elevated expense level due to the higher cost of services and rents.
Cigna reported fourth-quarter 2024 adjusted EPS of $6.64, which missed the Zacks Consensus Estimate by 15.2% due to a decline in its overall medical customer base and elevated medical costs. Nevertheless, the downside was partly offset by expanding specialty volumes in the Evernorth Health Services segment and new client wins.