Acadia Healthcare(ACHC) - 2024 Q4 - Annual Results

Financial Performance - Acadia reported record annual revenue of $3.2 billion for 2024, reflecting a robust demand for behavioral healthcare services [4] - Fourth quarter revenue totaled $774.2 million, an increase of 4.2% compared to the fourth quarter of 2023 [6] - Net income for the year ended December 31, 2024, was $264,484, compared to a net loss of $15,661 in 2023 [25] - Revenue for the same facility increased by 4.7% to $765,014 in Q4 2024, compared to $730,836 in Q4 2023 [28] - Adjusted income attributable to Acadia Healthcare Company, Inc. for Q4 2024 was $59,151,000, a decrease of 25.5% from $79,770,000 in Q4 2023 [33] - Adjusted income per diluted share for Q4 2024 was $0.64, down from $0.87 in Q4 2023 [33] EBITDA and Guidance - Adjusted EBITDA for the fourth quarter was $153.1 million, including a $14.3 million professional liability reserve adjustment [6] - For 2025, Acadia provided revenue guidance of $3.3 to $3.4 billion and adjusted EBITDA guidance of $675 to $725 million [11] - Acadia's first quarter 2025 revenue guidance is set at $765 to $775 million, with adjusted EBITDA guidance of $130 to $135 million [12] - Adjusted EBITDA for Q4 2024 was $153,102,000, down 10.8% from $171,551,000 in Q4 2023 [31] - Same Facility Adjusted EBITDA for Q4 2024 was $196,412,000, a decrease of 6.4% compared to $209,828,000 in Q4 2023 [31] - Total Facility Adjusted EBITDA for the year ended December 31, 2024, was $849,411,000, an increase of 3.9% from $817,110,000 in 2023 [31] Capital Expenditures and Assets - The company incurred $690,385 in capital expenditures for the year ended December 31, 2024, compared to $424,133 in 2023, reflecting a significant increase of 62.7% [25] - Total assets increased to $5,956,915 in 2024, up from $5,358,841 in 2023, representing a growth of 11.1% [23] - Total liabilities rose to $2,766,084 in 2024, compared to $2,471,181 in 2023, indicating an increase of 11.9% [23] - Long-term debt increased to $1,880,093 in 2024 from $1,342,548 in 2023, marking a rise of 40% [23] Operational Metrics - The company operates a network of 262 facilities with approximately 11,850 beds, serving over 80,000 patients daily [16] - Patient days for the year ended December 31, 2024, were 3,098,132, a 3.2% increase from 3,002,524 in 2023 [28] - The average length of stay for patients remained stable at 16.0 days in Q4 2024, unchanged from Q4 2023 [28] - The company added 577 newly licensed beds in the fourth quarter, with a total of approximately 1,300 newly constructed beds for the year [5][8] - The company expects to add 800 to 1,000 new beds in 2025 [11] Shareholder Actions - Acadia announced a new $300 million share repurchase authorization [10] Costs and Expenses - Interest expense for Q4 2024 increased to $30,071,000, compared to $20,474,000 in Q4 2023, reflecting a rise of 46.8% [31] - Corporate general and administrative costs for the year ended December 31, 2024, were $140,427,000, slightly up from $139,457,000 in 2023 [31] - Government investigations costs for Q4 2024 were $24.986 million, up from $15.360 million in Q4 2023, and for the full year 2024, these costs totaled $30.620 million compared to $18.796 million in 2023 [46] - Termination and restructuring costs increased to $2.631 million in Q4 2024 from $1.887 million in Q4 2023, while the full year costs decreased to $1.362 million from $7.242 million [46] - Legal, accounting, and other acquisition-related costs were $1.436 million for Q4 2024, down from $9.294 million in Q4 2023, with full year costs at $11.172 million compared to $12.705 million [46] - Management transition costs significantly decreased to $513,000 in Q4 2024 from $8.693 million in Q4 2023, with full year costs dropping to $3.599 million from $23.283 million [46] - Total transaction, legal, and other costs for Q4 2024 were $29.566 million, a decrease from $35.234 million in Q4 2023, and for the full year, these costs were $46.753 million compared to $62.026 million in 2023 [46] Impairments and Adjustments - The company reported a loss on impairment of $5,817,000 in Q4 2024, compared to $1,096,000 in Q4 2023 [33] - The income tax effect of adjustments to income was 18.4% for Q4 2024 and 23.7% for Q4 2023, with full year rates at 23.4% and 24.6% respectively [52] - The company incurred non-cash impairment charges related to facility closures, which are excluded from Adjusted EBITDA as they do not reflect ongoing operations [47] - Gains from facility property sales are also excluded from Adjusted EBITDA, as they are not indicative of day-to-day business operations [48] - General and administrative costs related to corporate functions are excluded from Total Facility Adjusted EBITDA to provide a clearer view of core operational performance [49] - Approximately 0.9 million shares of restricted stock and common stock were excluded from the diluted earnings per share calculation for the year ended December 31, 2023, due to the net loss making them anti-dilutive [53]