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Acadia Healthcare (ACHC) Posts In-Line Q2 Earnings, Cuts View

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Acadia Healthcare Company, Inc. (ACHC - Free Report) reported second-quarter 2018 adjusted earnings of 70 cents per share, which remains in line with the Zacks Consensus Estimate. Meanwhile, the bottom line improved 6.1% year over year.

Better-than-expected earnings were driven by revenue growth led by additional beds.

Quarterly Details

Revenues of Acadia Healthcare rose 7% to $765.7 million from the prior-year quarter’s level. However, the top line missed the Zacks Consensus Estimate by 0.2%.

Total same facility revenues grew 5.2% with a 1.7% increase in patient days and a 3.4% rise in revenues per patient day. This growth can be attributed to the row of 155 beds supplemented in the existing facilities during the second quarter. The company expects to add more than 800 beds to current and new facilities in 2018.

U.S. same facility revenues were up 5% from the year-ago quarter. The company also recorded a 1.9% increase in patient days year over year and 3.1% growth in revenue per patient day.

U.K. same facility revenues rose 5.6% year over year to $256.4 million. The number of patient days inched up 1.6% from the year-earlier period whereas revenues per patient per day were up 3.9%.

Acadia Healthcare’s consolidated adjusted EBITDA was $165 million, up 1.8% year over year.

Total expenses climbed 7.2% year over year to $696 million due to higher salaries, professional fees, wages and benefits, depreciation and amortization as well as rents and leases.

Financial Update

Cash and cash equivalents as of Jun 30, 2018 were $79.4 million, up 18.1% from the 2017-end level.

Long-term debt was $3.18 billion as of Jun 30, 2018, down 0.5% from the 2017-end level.

Net cash provided by operating activities at the end of six months was $217 million, up nearly 16% year over year.

2018 Guidance

For 2018, the company expects adjusted earnings per share between $2.52 and $2.56 (down from the previous projection of $2.58 and $2.62) on revenues of $3.02-$3.06 billion (down from the earlier estimate of $3.04-$3.08 billion). Adjusted EBITDA is anticipated between $632 million and $639 million (compared with the former forecast of $637-$644 million).

The company now projects an exchange rate of $1.30 per British Pound Sterling (in comparison to the past prediction of $1.35) and interest expense to be around $95 million for the second half of the year.

Zacks Rank and Other Releases

Acadia Healthcare carries a Zacks Rank #2 (Buy). Among other firms in the medical sector,  having reported second-quarter earnings so far, the bottom line of Anthem Inc. , Universal Health Services, Inc. (UHS - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the respective Zacks Consensus Estimate. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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