Financial Performance - Revenue for Q1 2025 totaled $770.5 million, a slight increase from $768.1 million in Q1 2024[8] - Adjusted EBITDA for Q1 2025 was $134.2 million, reflecting a year-over-year impact of $5 million due to the closure of one facility[8] - Net income attributable to Acadia was $8.4 million, or $0.09 per diluted share, compared to $76.4 million, or $0.83 per diluted share in Q1 2024[8][22] - Revenue for same facilities increased by 2.1% to $759,697,000 in Q1 2025 from $744,422,000 in Q1 2024[29] - Adjusted EBITDA decreased by 9.0% to $191,605,000 in Q1 2025 from $210,579,000 in Q1 2024[29] - Total facility revenue showed a slight increase of 0.3%, reaching $770,505,000 in Q1 2025 compared to $768,051,000 in Q1 2024[29] - Adjusted income attributable to Acadia Healthcare Company, Inc. was $36,929,000 in Q1 2025, down from $77,293,000 in Q1 2024[34] - Revenue per patient day slightly decreased by 0.2% to $994 in Q1 2025 from $996 in Q1 2024[29] Operational Highlights - The company added a total of 378 newly licensed beds in Q1 2025, including 90 beds to existing facilities and 288 beds to new facilities[6][8] - Acadia operates 270 behavioral healthcare facilities with approximately 12,000 beds, serving over 82,000 patients daily[16] - The company affirmed its 2025 financial guidance, projecting revenue between $3.3 billion and $3.4 billion and Adjusted EBITDA between $675 million and $725 million[13] - Acadia's strategic growth includes the addition of seven new comprehensive treatment centers, expanding its market reach to 170 CTCs across 33 states[7] Cash Flow and Capital Management - Cash and cash equivalents as of March 31, 2025, were $91.2 million, with an additional $901.6 million available under its revolving credit facility[10] - Cash provided by operating activities was $11,477,000 in Q1 2025, a recovery from a cash outflow of $321,285,000 in Q1 2024[26] - Cash paid for acquisitions in Q1 2025 was $8,594,000, down from $50,353,000 in Q1 2024[26] - The company reported a net cash increase of $14,931,000 in Q1 2025, contrasting with a decrease of $22,770,000 in Q1 2024[26] - Acadia repurchased 1,602,688 shares for a total of $47.3 million during Q1 2025[12] Costs and Expenses - Government investigations costs increased significantly to $31.011 million in Q1 2025 from $0.481 million in Q1 2024[51] - Total transaction, legal, and other costs rose to $31.072 million in Q1 2025 compared to $2.847 million in Q1 2024[51] - Termination and restructuring costs were $2.166 million in Q1 2025, a decrease from $(3.400) million in Q1 2024[51] - Legal, accounting, and other acquisition-related costs showed a net expense of $(2.105) million in Q1 2025, down from $4.757 million in Q1 2024[51] - Management transition costs were recorded at $1.009 million in Q1 2024, with no costs reported in Q1 2025[51] Tax and Adjustments - The income tax effect of adjustments to income was based on tax rates of 24.1% for Q1 2025 and 22.2% for Q1 2024[55] - The company believes that excluding certain costs from Adjusted EBITDA helps investors understand ongoing operating results better[52] - General and administrative costs are excluded from Total Facility Adjusted EBITDA to provide clearer insights into core operations[53] - The company focuses on Same Facility Adjusted EBITDA to measure financial performance of existing facilities, excluding newly developed or recently acquired facilities[54] - The company incurred debt extinguishment costs in Q1 2025 related to refinancing, which are excluded from Adjusted EBITDA[52]

Revenue Performance - Revenue for the three months ended March 31, 2025, increased by $2.5 million, or 0.3%, to $770.5 million compared to $768.1 million for the same period in 2024[111] - Same facility revenue grew by $15.3 million, or 2.1%, driven by a 2.2% increase in patient days, despite a slight decrease in revenue per patient day of -0.2%[115] - Revenue for Q1 2025 was $770.5 million, slightly up from $768.1 million in Q1 2024, with Medicaid contributing 55.9% of total revenue[130] Expenses - Salaries, wages, and benefits expense rose to $445.3 million, an increase of $27.8 million from $417.5 million in the prior year, representing 57.8% of total revenue[116] - Same facility salaries, wages, and benefits expense was $390.0 million, or 51.3% of revenue, compared to $366.3 million, or 49.2% of revenue in the previous year[116] - Professional fees remained stable at $45.7 million, accounting for 5.9% of revenue for both periods[118] - Supplies expense increased to $28.3 million, or 3.7% of revenue, compared to $26.7 million, or 3.5% of revenue in the prior year[119] - Other operating expenses increased to $114.0 million, or 14.8% of revenue, from $101.1 million, or 13.2% in Q1 2024[121] - Depreciation and amortization expenses rose to $47.0 million, representing 6.1% of revenue, up from $36.3 million, or 4.7% in Q1 2024[122] - Interest expense increased to $29.2 million in Q1 2025, compared to $27.2 million in Q1 2024, primarily due to new Senior Notes[123] Operational Growth - The company added 378 beds during the three months ended March 31, 2025, including 90 beds to existing facilities and 288 beds through new openings[109] - The company operates 270 behavioral healthcare facilities with approximately 12,000 beds across 39 states and Puerto Rico as of March 31, 2025[109] - Management expects to leverage its increased size and geographic scale to enhance patient acquisition and service offerings[110] Cash Flow and Financial Position - Cash provided by operating activities was $11.5 million in Q1 2025, a significant improvement from cash used of $321.3 million in Q1 2024[133] - Cash used in investing activities was $183.2 million in Q1 2025, primarily for capital expenditures of $174.6 million[134] - Total available cash and cash equivalents increased to $91.2 million as of March 31, 2025, from $76.3 million at December 31, 2024[136] - The summarized balance sheet as of March 31, 2025, showed total current assets of $497.8 million and total equity of $2,096.8 million[155] Debt and Financing - The company entered into a settlement agreement for $400.0 million related to the Desert Hills Litigation, fully resolving the claims[137] - The Credit Facility includes a $1.0 billion Revolving Facility and a $650.0 million Term Loan Facility, both maturing on February 28, 2030[138] - As of March 31, 2025, the Consolidated Total Net Leverage Ratio was 3.2x, compliant with the financial covenants of a maximum of 5.0x[144] - During the three months ended March 31, 2025, the company borrowed $645.0 million on the Revolving Facility and repaid $550.0 million[145] - The company had $901.6 million of availability under the Revolving Facility as of March 31, 2025[145] - Long-term debt as of March 31, 2025, was $2,184.3 million, an increase from $1,880.1 million as of December 31, 2024[155] - A hypothetical 1% increase in interest rates would decrease pretax income by approximately $7.2 million annually, given the long-term debt composition of $1,460.3 million fixed-rate and $724.0 million variable-rate[159] - The company recorded a loss on extinguishment of $1.3 million related to the refinancing of the Prior Credit Facility[148] - Total obligations and commitments as of March 31, 2025, amounted to $3,105.3 million, including long-term debt and lease liabilities[156] - The company issued $550.0 million of 7.375% Senior Notes due 2033 to pay down outstanding borrowings under the Revolving Facility[151]

Core Viewpoint - Acadia Healthcare Company, Inc. (ACHC) is expected to report first-quarter 2025 results on May 12, with earnings estimated at 42 cents per share and revenues at $770.5 million, indicating a year-over-year earnings decline of 50% but a slight revenue growth of 0.3% [1][2]. Financial Estimates - First-quarter earnings estimates have declined by 8 cents per share over the past 60 days, reflecting a significant year-over-year decrease [2]. - For the full year 2025, the revenue estimate for Acadia Healthcare is $3.33 billion, representing a year-over-year increase of 5.7%, while the EPS estimate is $2.76, indicating a decline of 16.4% year-over-year [2]. Recent Performance - Acadia Healthcare has beaten earnings estimates in three of the last four quarters, with an average surprise of negative 0.4% [3]. Earnings Prediction Model - The current model does not predict an earnings beat for Acadia Healthcare, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [4]. Revenue Drivers - Revenue per patient day is estimated to rise by 2% year-over-year, and revenues from Residential Treatment Centers are expected to increase by 9.7% from $85.6 million a year ago [6]. - U.S. same-facility admissions are projected to show a marginal increase, while revenues from Specialty Treatment Facilities are expected to rise by 0.1% from $143.8 million [7]. Expense Concerns - Rising expenses are anticipated to impact profit levels, with total expenses expected to increase by more than 11% due to higher salaries, wages, benefits, and other operating costs [8]. - Supply costs are also expected to rise due to increased utilization [8]. Revenue Declines in Specific Areas - Revenues from Acute Inpatient Psychiatric Facilities are projected to decrease by 1.3% from $401.1 million, and same-facility patient days are expected to decline by 1.1% year-over-year [9]. - Comprehensive Treatment Centers' revenues are estimated to fall by 0.5% from $132.2 million [9].

Group 1 - Acadia Healthcare Company, Inc. (ACHC) has been added to the Zacks Rank 5 (Strong Sell) List due to a 17.4% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Blackbaud, Inc. (BLKB) is also on the Zacks Rank 5 (Strong Sell) List, with a 6.7% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Cable One, Inc. (CABO) has been included in the Zacks Rank 5 (Strong Sell) List, with an 8.5% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]

Group 1 - ASE Technology Holding Co., Ltd. (ASX) provides semiconductor packaging and testing, and electronic manufacturing services, with a current year earnings estimate revised downward by 6.2% over the last 60 days [1] - Acadia Healthcare Company, Inc. (ACHC) is a provider of behavioral healthcare services, with a current year earnings estimate revised downward by 18.1% over the last 60 days [2] - Blackbaud, Inc. (BLKB) offers cloud software solutions to educational institutions, with a current year earnings estimate revised downward by 6.7% over the last 60 days [2]

Group 1 - ASE Technology Holding Co., Ltd. (ASX) is a semiconductor packaging and testing company with a Zacks Consensus Estimate for its current year earnings revised 6.2% downward over the last 60 days [1] - Acadia Healthcare Company, Inc. (ACHC) is a provider of behavioral healthcare services, and its Zacks Consensus Estimate for current year earnings has been revised 18.8% downward over the last 60 days [1] - Barrick Gold Corporation (GOLD) is a global explorer, developer, producer, and seller of gold and copper properties, with its Zacks Consensus Estimate for current year earnings revised 16.6% downward over the last 60 days [2]

Group 1 - AST SpaceMobile (ASTS) is developing a space-based cellular broadband network that will work with standard mobile devices, leveraging its extensive IP and patent portfolio [1] - The Zacks Consensus Estimate for AST SpaceMobile's current year earnings has been revised downward by 75.6% over the last 60 days [1] Group 2 - Acadia Healthcare (ACHC) provides behavioral health care services in the United States and Puerto Rico [2] - The Zacks Consensus Estimate for Acadia Healthcare's current year earnings has been revised downward by almost 18.8% over the last 60 days [2] Group 3 - ASE Technology (ASX) offers semiconductor manufacturing services, specifically in assembly and testing [2] - The Zacks Consensus Estimate for ASE Technology's current year earnings has been revised downward by 6.2% over the last 60 days [2]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 4.2% year-over-year to $774 million, with full-year revenue exceeding $3.1 billion, marking a 7.7% increase over 2023 [8][21] - Same facility patient days grew by 3.2% in Q4, remaining stable between 3% and 4% throughout the quarter [8][21] - Adjusted EBITDA for Q4 2024 was $153.1 million, with an adjusted EBITDA margin of 19.8%, down from 22.8% in the same quarter last year [22][23] - Adjusted income attributable to Acadia stockholders per diluted share was $0.64 for Q4 2024, compared to $0.85 for the prior year period [25] Business Line Data and Key Metrics Changes - Same facility revenue grew by 4.7% compared to Q4 2023, driven by patient day growth and a 1.4% increase in revenue per patient day [21] - Startup losses related to new facilities were $11.2 million in Q4 2024, a $6 million increase year-over-year [23] Market Data and Key Metrics Changes - The company reported a more stable labor environment in 2024, which supported recruitment and retention initiatives [9] - The company anticipates adding between 800 and 1,000 total beds in 2025, reflecting ongoing demand for behavioral health services [18] Company Strategy and Development Direction - The company is focused on transforming the lives of patients and communities by providing specialized behavioral health care [10] - Acadia is committed to expanding access to care, with a strong pipeline of potential partnerships with leading health systems [19] - The company plans to moderate the pace of bed additions to 600 to 800 beds per year starting in 2026, balancing growth and free cash flow generation [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and goals, emphasizing the need to address the mental health and addiction crisis in the U.S. [19] - The company expects to return to free cash flow positive by the end of 2026, driven by new bed contributions and reduced startup costs [50][51] Other Important Information - The Board of Directors authorized a new $300 million share repurchase program, subject to market conditions [44] - The company recorded a $4 million increase in reserves for self-insured professional and general liability claims, reflecting unfavorable industry trends [23][34] Q&A Session Summary Question: Follow-up on capital commitments and cash flow - Management confirmed refinancing existing bank facilities and upsizing to about a billion dollars, with expectations of cash flow returning to positive by the end of 2026 [47][48] Question: Clarification on first-quarter guidance - Management indicated that the first quarter is expected to contribute less to the full year than typical, with startup losses anticipated to be high [55][56] Question: Update on referral activity - Management noted that referral issues are less of a challenge now, focusing on a small number of underperforming facilities [99][102] Question: Long-term growth outlook and margin assumptions - Management reiterated a balanced approach to growth, expecting revenue growth of 7% to 9% and EBITDA growth of 8% to 10% in the coming years [62][66] Question: Update on underperforming facilities - Management is conducting comprehensive reviews of underperforming facilities, focusing on business development, leadership, and technology adoption [118][122]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 increased by 4.2% year-over-year to $774 million, with full-year revenue exceeding $3.1 billion, marking a 7.7% increase over 2023 [8][21] - Same facility patient days grew by 3.2% in Q4, remaining stable between 3% and 4% throughout the quarter [8][21] - Adjusted EBITDA for Q4 2024 was $153.1 million, with an adjusted EBITDA margin of 19.8%, down from 22.8% in the same quarter last year [22][23] - Adjusted income attributable to Acadia stockholders per diluted share was $0.64 for Q4 2024, compared to $0.85 for the prior year period [25] Business Line Data and Key Metrics Changes - Same facility revenue grew by 4.7% compared to Q4 2023, driven by patient day growth and a 1.4% increase in revenue per patient day [21] - Startup losses related to new facilities were $11.2 million in Q4 2024, a $6 million year-over-year increase [23] Market Data and Key Metrics Changes - The company reported a more stable labor environment in 2024, which supported recruitment and retention initiatives [9] - The company anticipates adding between 800 and 1,000 total beds in 2025, continuing to address the mental health and addiction crisis in the U.S. [18][19] Company Strategy and Development Direction - The company is focused on transforming patient care and has invested heavily in technology to enhance safety and care delivery [11][12] - Acadia's growth strategy includes completing construction on approximately 1,300 beds in 2024, with 776 of these beds becoming operational [15][17] - The company aims to maintain a balanced approach to growth and free cash flow generation, expecting to return to free cash flow positive by the end of 2026 [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and goals, emphasizing the importance of expanding access to specialized care [19] - The outlook for 2025 includes revenue guidance of $3.3 billion to $3.4 billion and adjusted EBITDA guidance of $675 million to $725 million [27][28] - Management acknowledged challenges from underperforming facilities but maintained a cautious approach to guidance [29][30] Other Important Information - The company has authorized a new $300 million share repurchase program, which will be executed based on market conditions [44] - The company expects capital spending in the range of $630 million to $690 million for 2025, with a significant portion allocated to expansion spending [28] Q&A Session Summary Question: Can you provide insights on financing plans and cash flow expectations? - Management confirmed refinancing existing bank facilities and upsizing to about a billion dollars, with expectations of returning to cash flow positive by the end of 2026 [47][48] Question: How do you view the growth outlook and margin assumptions post-2025? - Management expects revenue growth of 7% to 9% and EBITDA growth of 8% to 10% in the years following 2025, with a focus on balancing capital expenditures and free cash flow [62][66] Question: What is the current status of referral activity and its impact on growth? - Management reported that referral issues are less of a challenge now, with ongoing efforts to improve relationships with key referral sources [99][102] Question: What actions are being taken to improve underperforming facilities? - Management is conducting comprehensive reviews of underperforming facilities, focusing on business development, leadership, and technology adoption [118][122]

Core Viewpoint - Acadia Healthcare Company, Inc. reported weaker-than-expected fourth-quarter earnings, with adjusted EPS of 64 cents, missing the Zacks Consensus Estimate by 11.1% and declining 24.7% year over year [1][2] Financial Performance - Total revenues for the fourth quarter increased by 4.2% year over year to $774.2 million, but fell short of consensus estimates [2] - Same-facility revenues reached $765 million, a 4.7% year-over-year increase, but also missed the estimate of $796.7 million [4] - Adjusted EBITDA decreased by 9.7% year over year to $153.1 million, below the estimate of $179.2 million, with a margin decline of 300 basis points to 19.8% [5] Operational Metrics - Patient days improved by 2.5% year over year, while admissions grew by 2.9% [5] - Revenue per patient day increased by 1.7% year over year, lower than the growth estimate of 3.7% [5] - The average length of stay declined by 0.4% year over year, missing the growth estimate of 2.5% [5] Expense Overview - Total expenses rose by 11.1% year over year to $736.2 million, exceeding the estimate of $703.3 million, driven by higher salaries, wages, benefits, and operating expenses [6] Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents were $76.3 million, down 23.8% from the previous year [7] - Total assets increased by 9.5% to $6 billion, while long-term debt rose by 11.2% to $1.9 billion [8] - Net cash provided by operations totaled $129.7 million, significantly lower than $462.3 million in the prior year [8] Full Year Update - For the full year 2024, revenues rose by 7.7%, while adjusted EPS declined by 5.4% to $3.30 [9] Guidance for 2025 - Projected revenues for the first quarter of 2025 are between $765 million and $775 million, with adjusted EBITDA estimated at $130-$135 million [10] - Full-year 2025 revenue guidance is between $3.3 billion and $3.4 billion, indicating a 6.2% improvement from 2024 [10] - Adjusted EPS is expected to be between $2.50 and $2.80 [11]