Acadia Healthcare Co Inc (ACHC) Reports Solid Growth in Q4 and Full Year 2023, Sets Positive ...

• Revenue: Q4 2023 revenue increased to $742.8 million, with annual revenue growth of 12.2%.

• Net Income: Q4 2023 net income attributable to Acadia was $57.7 million, with a diluted EPS of $0.63.

• Adjusted EBITDA: Achieved $730 to $770 million in adjusted EBITDA for 2024 guidance.

• Cash and Liquidity: As of December 31, 2023, cash and cash equivalents stood at $100.1 million with additional liquidity from a revolving credit facility.

• Strategic Growth: The company made significant investments in its operations, aiming for long-term growth and approximately 1,200 new beds in 2024, excluding acquisitions.

• Legal Settlements: Paid $400 million for the settlement of three cases related to litigation in New Mexico.

On February 27, 2024, Acadia Healthcare Co Inc (NASDAQ:ACHC) released its 8-K filing, announcing its financial results for the fourth quarter and year ended December 31, 2023. The company, a leading provider of behavioral healthcare services in the U.S., reported a robust annual revenue growth of 12.2% and Adjusted EBITDA growth of 13.1%, reflecting strong demand for behavioral healthcare services.

Operational Excellence and Strategic Growth

Acadia's CEO, Chris Hunter, highlighted the company's solid execution and strategic investments that have strengthened its core infrastructure and enhanced care delivery. With a focus on quality and leveraging technology, Acadia has positioned itself to meet the accelerating demand for its services. The company's network of 253 behavioral healthcare facilities and approximately 11,200 beds across 38 states and Puerto Rico, along with its approximately 23,500 employees, serves over 75,000 patients daily, making it the largest stand-alone behavioral healthcare company in the U.S.

Financial Performance and Future Outlook

Acadia's financial position remains strong, with $100.1 million in cash and cash equivalents and significant available credit. The company has provided positive guidance for 2024, with revenue expected to be between $3.18 to $3.25 billion and Adjusted EBITDA projected to be between $730 to $770 million. Adjusted earnings per diluted share are anticipated to range from $3.40 to $3.70. These projections reflect Acadia's confidence in its ability to drive continued growth and profitability.

Looking ahead, Acadia is well-positioned to address the critical needs of behavioral health across the U.S., with a broad range of service lines and a focused operating model. The company's guidance for the first quarter of 2024 anticipates revenue between $775 to $785 million and Adjusted EBITDA between $170 to $175 million, with Adjusted earnings per diluted share between $0.78 to $0.83.

Challenges and Litigation Settlements

Despite its strong performance, Acadia faced challenges, including a $400 million payment for the settlement of litigation cases in New Mexico. However, the company's strategic investments and operational improvements have laid a foundation for long-term growth and resilience.

Acadia's commitment to maintaining a strong financial position to support growth investments and disciplined capital allocation remains a top priority. The company's net leverage ratio stood at approximately 1.9x, reflecting a healthy balance sheet.

For more detailed financial information and to listen to the conference call discussing these results, please visit Acadia's website in the "Investors" section.

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Explore the complete 8-K earnings release (here) from Acadia Healthcare Co Inc for further details.

This article first appeared on GuruFocus.