Acadia Healthcare(US:ACHC)2025-11-05 21:30Revenue Performance - Revenue for the three months ended September 30, 2025, was $851.57 million, a 4.7% increase compared to $815.63 million for the same period in 2024[120] - For the nine months ended September 30, 2025, revenue reached $2.49 billion, up from $2.38 billion in 2024, reflecting a growth of 4.7%[120] - Revenue increased by $35.9 million, or 4.4%, to $851.6 million for the three months ended September 30, 2025, compared to $815.6 million for the same period in 2024[124] - Revenue for the nine months ended September 30, 2025, increased by $111.6 million, or 4.7%, to $2,491.3 million from $2,379.7 million in 2024[139] - Total revenue for the nine months ended September 30, 2025, was $2.49 billion, an increase from $2.38 billion in 2024, with Medicaid contributing 57.5% of total revenue[154] Cost and Expense Analysis - Salaries, wages, and benefits accounted for 54.3% of total revenue in Q3 2025, compared to 52.5% in Q3 2024[120] - Salaries, wages, and benefits (SWB) expense rose to $462.2 million for the three months ended September 30, 2025, an increase of $34.1 million from $428.1 million in 2024, representing 53.6% of revenue[125] - Professional fees were $51.5 million for the three months ended September 30, 2025, or 6.0% of revenue, compared to $48.5 million, or 5.9% of revenue, in the same period of 2024[127] - Other operating expenses increased to $128.8 million, or 15.1% of revenue, for the three months ended September 30, 2025, compared to $112.1 million, or 13.8% of revenue, in 2024[130] - Interest expense increased to $100.9 million for the nine months ended September 30, 2025, compared to $86.3 million in 2024, primarily due to interest on the 7.375% Senior Notes issued in early 2025[146] - Transaction, legal, and other costs surged to $138.4 million for the nine months ended September 30, 2025, compared to $17.2 million in 2024[149] Income and Profitability - The net income attributable to Acadia Healthcare Company, Inc. for Q3 2025 was $36.25 million, a decrease from $68.13 million in Q3 2024[120] - The provision for income taxes for the three months ended September 30, 2025, was $1.7 million, reflecting an effective tax rate of 4.2%, a decrease from $27.2 million and 27.6% in 2024[136] - The provision for income taxes for the nine months ended September 30, 2025, was $18.1 million, reflecting an effective tax rate of 17.5%, down from $72.9 million and 24.0% in 2024[151] - Revenue for the nine months ended September 30, 2025, was $2,011.1 million, with a net income of $24.1 million[180] Operational Metrics - Same facility revenue growth for the three months ended September 30, 2025, was 3.7%, while for the nine months it was 5.1%[121] - Patient days growth was 1.3% for Q3 2025 and 1.8% for the nine months ended September 30, 2025[121] - The average length of stay decreased by 1.9% for Q3 2025 compared to the same period in 2024[121] - Same facility revenue increased by $29.5 million, or 3.7%, driven by a 2.3% growth in revenue per day, 1.3% growth in patient days, and 3.3% growth in admissions[124] Capital and Financing Activities - Cash provided by operating activities for the nine months ended September 30, 2025, was $218.2 million, a substantial increase from $13.0 million in 2024[157] - Cash used in investing activities for the nine months ended September 30, 2025, was $463.8 million, down from $533.1 million in 2024, primarily due to capital expenditures of $478.6 million[158] - Cash provided by financing activities for the nine months ended September 30, 2025, was $288.0 million, compared to $502.2 million in 2024, with significant borrowings on long-term debt of $1.2 billion[159] - The company entered into a Credit Agreement providing for a $1.0 billion Revolving Facility and a $650.0 million Term Loan Facility, both maturing on February 28, 2030[163] - The Term Loan Facility requires quarterly principal repayments starting at $4.0 million, increasing to $16.2 million by June 2029[165] - As of September 30, 2025, the Consolidated Total Net Leverage Ratio was 3.4x, in compliance with all financial covenants[169] - Long-term debt as of September 30, 2025, was $2,284.8 million, an increase from $1,880.1 million as of December 31, 2024[180] - The company issued $550.0 million of 7.375% Senior Notes due 2033 on March 10, 2025, to pay down outstanding borrowings under the Revolving Facility[176] Compliance and Regulatory Matters - For the nine months ended September 30, 2025, total costs related to government investigations amounted to $123.3 million, a significant increase from $5.6 million in the same period of 2024[150] - Total obligations and commitments as of September 30, 2025, amounted to $3,162.4 million[181] Cash and Liquidity - Total available cash and cash equivalents increased to $118.7 million as of September 30, 2025, from $76.3 million at December 31, 2024[161] - Current assets increased to $532.8 million as of September 30, 2025, from $436.6 million as of December 31, 2024[180] - The company had $786.7 million of availability under the Revolving Facility as of September 30, 2025[170] Interest Rate Sensitivity - A hypothetical 1% increase in interest rates would decrease pretax income by approximately $8.5 million annually[184]