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Acadia Healthcare Company, Inc.’s ACHC fourth-quarter 2020 earnings of $1.13 per share beat the Zacks Consensus Estimate by 63.8%. The bottom line also surged 121.6% year over year.
Results reflect improvement in the company’s U.S business, which gained from solid volumes, as well as its strong cost management.
However, the company’s revenues of $541 million missed the Zacks Consensus Estimate by 29.6% and also decreased 30.6% year over year.
Consolidated adjusted EBITDA was $207.5 million, up 43.7% year over year. Combined adjusted EBITDA margin was 24.6%, up 610 basis points year over year.
Total expenses declined 7.6% year over year to $465.2 million on the back of lower transaction-related expenses. The company continues to realize cost savings from the steps taken in 2019 and 2020 related to its expense and cash-management strategies.
During the fourth quarter of 2020, the company added 34 beds to its existing U.S. operations.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Acadia Healthcare Company, Inc. price-consensus-eps-surprise-chart | Acadia Healthcare Company, Inc. Quote
Acadia Healthcare’s U.S. same facility revenues increased 7.6% year over year to $538 million, including a 3.6% increase in patient days and a 3.8% rise in revenue per patient day. U.S. same facility EBITDA margin expanded 950 basis points year over year to 34%.
U.K. same facility revenues were up 7.1% year over year to $279.3 million. The number of patient days increased 2% from the year-earlier period whereas revenue per patient per day was up 5%.
On Jan 19, 2021, the company closed the sale of Acadia Healthcare’s business operations in the United Kingdom, operating under the name of The Priory Group, to Waterland Private Equity. The company used the proceeds from the U.K. transaction to pay down its outstanding debt.
Financial Update (as of Dec 31, 2020)
Cash and cash equivalents were $378.7 million, up 280% from the level on Dec 31, 2019.
Long-term debt was $3 billion, down 4.4% from the figure as of Dec 31, 2019.
The company exited the quarter with total assets worth $6.5 billion, down 5.5% from the level as of Dec 31, 2019.
Cash From Operations
Net cash provided by operating activities for the year 2020 was $658.8 million, up 98% year over year.
For the first quarter of 2021, the company expects revenues in the range of $540-$550 million, adjusted EBITDA in the $110-$115 million band and adjusted earnings per share within 40-45 cents.
For the full year, the company expects revenues in the range of $2.23-$2.28 million, adjusted EBITDA in the $490-$520 million band and adjusted earnings per share within $2.20-$2.45. Total capital expenditures are expected from $285 million to $325 million including approximately $45 million worth of maintenance capital expenditures.
In 2021, the company expects to add approximately 300 beds to its existing facilities and 170 beds through the opening of one wholly owned facility and one joint venture facility.
Zacks Rank and Performance of Other Players
Acadia Healthcare carries a Zacks Rank #4 (Sell), currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings of other stocks in the same space, namely Community Health Systems Inc. CYH, Universal Health Services, Inc. UHS and HCA Healthcare, Inc. HCA beat their respective estimates by 433.33%, 24.6% and 13.8%, respectively, in the fourth-quarter results.
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