Acadia Healthcare Co Inc (ACHC) Reports 12.5% Revenue Increase in Q3 2023
ACHC's Q3 2023 revenue increased by 12.5% to $750.3 million compared to Q3 2022.
Same facility revenue increased by 13.0% compared to the same period last year.
Net loss of $217.7 million was reported, largely due to legal settlements expense of $394.2 million.
Adjusted EBITDA increased by 13.4% over Q3 2022, excluding income from the Provider Relief Fund.
Acadia Healthcare Co Inc (NASDAQ:ACHC) announced its Q3 2023 financial results on November 2, 2023. The company reported a 12.5% increase in revenue, totaling $750.3 million, compared to the third quarter of 2022. The same facility revenue also saw a 13.0% increase compared to the same period last year.
Financial Highlights
Despite the increase in revenue, ACHC reported a net loss of $217.7 million, or $2.39 per diluted share. This loss was largely due to a legal settlements expense of $394.2 million. However, the adjusted income attributable to ACHC was $83.9 million, or $0.91 per diluted share, excluding $0.04 of income from the Provider Relief Fund established under the Coronavirus Aid, Relief, and Economic Security Act.
Adjusted EBITDA was $175.9 million, an increase of 13.4% over the third quarter of 2022, excluding income from the Provider Relief Fund. The company also made progress on its growth strategy by opening two new hospitals with joint venture partners and two comprehensive treatment centers.
CEO Commentary
Chris Hunter, Chief Executive Officer of Acadia, remarked, Our results for the third quarter reflect our continued execution on our growth strategy as well as strong operational execution across all four of our business lines. Our dedicated employees and clinicians are addressing the nations critical need for safe, high-quality treatment for mental health and substance use issues."
Strategic Investments and Growth
ACHC continued to make progress in meeting its strategic growth objectives during Q3 2023. The company added a total of 204 beds to existing facilities through the first nine months of the year, opened two new behavioral health hospitals with joint venture partners, and announced a definitive agreement to acquire Turning Point Centers, a 76-bed specialty provider of substance use disorder and primary mental health treatment services.
Looking Ahead
ACHC adjusted its previously announced financial guidance for 2023, with revenue expected to be between $2.90 to $2.92 billion and adjusted EBITDA, excluding income from the PRF, to be between $665 to $675 million. The company affirmed the previously announced financial guidance for interest expense, tax rate, depreciation and amortization expense, stock compensation expense, operating cash flows, maintenance capital expenditures, and IT capital expenditures.
As of September 30, 2023, ACHC had $99.6 million in cash and cash equivalents and $520 million available under its $600 million revolving credit facility with a net leverage ratio of approximately 2.0x.
Explore the complete 8-K earnings release (here) from Acadia Healthcare Co Inc for further details.
This article first appeared on GuruFocus.
