Acadia Healthcare(ACHC) - 2021 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2021, was $551,199, an increase of 8.3% from $509,217 in the same period of 2020[16] - Net income attributable to Acadia Healthcare Company, Inc. for the three months ended March 31, 2021, was $9,717, a decrease of 70.1% compared to $33,463 in the same period of 2020[16] - Basic earnings per share attributable to Acadia Healthcare Company, Inc. stockholders for continuing operations was $0.25, up from $0.21 in the same period of 2020[16] - The company reported total expenses of $521,875 for the three months ended March 31, 2021, compared to $484,433 in the same period of 2020, reflecting an increase of 7.7%[16] - Comprehensive income attributable to Acadia Healthcare Company, Inc. was $381,082 for the three months ended March 31, 2021, compared to a loss of $44,791 in the same period of 2020[19] - The company reported a net income of $10,479 thousand for the three months ended March 31, 2021, compared to $34,067 thousand for the same period in 2020, indicating a decrease of approximately 69%[25] - Revenue recognized for the three months ended March 31, 2021, was $(478) thousand, compared to $2,436 thousand in the previous period[40] - Net income attributable to Acadia Healthcare Company, Inc. was $9.7 million, a significant decrease from $33.5 million in the same period last year[121] Assets and Liabilities - Total current assets decreased to $528,225 as of March 31, 2021, from $2,523,395 as of December 31, 2020[13] - Total liabilities decreased to $2,172,216 as of March 31, 2021, from $4,544,591 as of December 31, 2020[13] - Cash and cash equivalents decreased to $178,915 as of March 31, 2021, from $378,697 as of December 31, 2020[13] - The balance of total assets at March 31, 2021, was $2,297,999 thousand, with retained earnings showing a deficit of $300,669 thousand[28] - Total current assets as of March 31, 2021, were $469,786,000, compared to $654,735,000 as of December 31, 2020[99] - Long-term debt decreased from $2,786,125,000 as of December 31, 2020, to $1,458,735,000 as of March 31, 2021[99] Cash Flow - Cash provided by continuing operating activities was $75,784 thousand for the three months ended March 31, 2021, significantly higher than $16,586 thousand in the same period of the previous year[25] - The company reported a net decrease in cash and cash equivalents of $199,782 thousand for the three months ended March 31, 2021[25] - Cash provided by continuing investing activities for Q1 2021 was $1,368.6 million, primarily from $1,511.0 million proceeds from the U.K. Sale[137] - Cash used in continuing financing activities for Q1 2021 was $1,648.5 million, including repayment of long-term debt of $2,224.6 million[137] - Total available cash and cash equivalents decreased to $178.9 million at March 31, 2021, from $378.7 million at December 31, 2020[137] Debt and Financing - The company incurred debt extinguishment costs of $24,650 during the three months ended March 31, 2021[16] - The Company completed the U.K. Sale on January 19, 2021, resulting in approximately $1,525 million in gross proceeds and a net reduction of debt by $1,640 million[33] - The Company entered into a New Credit Facility on March 17, 2021, providing a $600.0 million senior secured revolving credit facility and a $425.0 million senior secured term loan facility, both maturing on March 17, 2026[57] - The New Credit Facility requires quarterly term loan principal repayments starting at $2.7 million for June 30, 2021, increasing to $10.6 million by June 30, 2025[57] - The company redeemed $650.0 million of 5.625% Senior Notes and $390.0 million of 6.500% Senior Notes in March 2021, incurring debt extinguishment costs of $3.3 million and $10.5 million respectively[64] - As of March 31, 2021, the company had long-term debt obligations totaling $1,942.6 million, with $72.4 million due in less than one year and $1,057.9 million due in more than five years[153] Operational Highlights - Acadia Healthcare Company operated 228 behavioral healthcare facilities with approximately 10,000 beds across 40 states and Puerto Rico as of March 31, 2021[28] - During the three months ended March 31, 2021, the company added 92 beds to existing facilities and opened two comprehensive treatment centers (CTCs)[106] - For the year ending December 31, 2021, the company expects to add approximately 300 beds to existing facilities and open 11 CTCs[106] Government Assistance and Impact - The company received approximately $45 million from CMS' Accelerated and Advance Payment Program, which is expected to be repaid over a 12-month period starting April 2021[39] - The company received approximately $19.7 million from the initial PHSSE funds and an additional $12.8 million in August 2020[112] - The company recorded $32.8 million of other income related to PHSSE funds received from April through December 2020[113] - The CARES Act provided a 2% increase in Medicare reimbursement rates due to the temporary suspension of Medicare sequestration from May 1, 2020, to December 31, 2021[116] - The company is continuing to evaluate the financial impact of funds received under the CARES Act and other government relief programs[119] Equity and Compensation - Equity-based compensation expense increased to $7,034 thousand in Q1 2021 from $4,979 thousand in Q1 2020, reflecting a rise of approximately 41%[25] - The company recognized $7.0 million in equity-based compensation expense for the three months ended March 31, 2021, up from $5.0 million for the same period in 2020[78] - At March 31, 2021, there was $47.8 million of unrecognized compensation expense related to unvested options, expected to be recognized over a weighted average vesting period of 1.6 years[78] Tax and Regulatory - The effective tax rates for the three months ended March 31, 2021, and 2020 were 21.2% and 23.4%, respectively, with a decrease attributed to permanent deductions related to equity-based compensation[17] - The provision for income taxes was $6.2 million, with an effective tax rate of 21.2%, down from 23.4% in the prior year[130] Miscellaneous - The company has established an internal COVID-19 taskforce and expanded telehealth capabilities in response to the pandemic, although the financial impact remains uncertain[29] - The company has no material changes in internal control over financial reporting during the three months ended March 31, 2021[159] - The company’s disclosure controls and procedures were evaluated as effective by the CEO and CFO, ensuring timely and accurate reporting[158]