• Company Provides Full Year and First Quarter 2024 Guidance

FRANKLIN, Tenn. / Feb 27, 2024 / Business Wire / Acadia Healthcare Company, Inc. (“Acadia” or the “Company”) (NASDAQ: ACHC) today announced financial results for the fourth quarter and year ended December 31, 2023.

Fourth Quarter Highlights

• Revenue totaled $742.8 million, an increase of 10.0% over the fourth quarter of 2022
• Same facility revenue increased 10.3% compared with the fourth quarter of 2022, including an increase in revenue per patient day of 7.1% and an increase in patient days of 2.9%
• Net income attributable to Acadia totaled $57.7 million, or $0.63 per diluted share
• Adjusted income attributable to Acadia was $78.3 million, or $0.85 per diluted share, excluding $0.02 of income from the Provider Relief Fund (“PRF”) established under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act
• Adjusted EBITDA was $169.6 million, an increase of 11.9% over the fourth quarter of 2022, excluding income from the PRF in both periods and the impact of a $5.9 million unfavorable adjustment to professional and general liability reserves recorded in the fourth quarter of 2022
• Continued progress on the execution of the Company’s growth strategy through opening one de novo hospital, adding 98 beds to existing facilities and opening two comprehensive treatment centers (“CTCs”)
• Announced a new joint venture partnership with Ascension Seton, in Austin, Texas, in early January 2024

Adjusted income attributable to Acadia and Adjusted EBITDA are non-GAAP financial measures. A reconciliation of all non-GAAP financial measures in this press release begins on page 9.

Fourth Quarter Results

Chris Hunter, Chief Executive Officer of Acadia, remarked, “Our fourth quarter performance capped off another outstanding year for Acadia. With solid execution, we continued to deliver strong results with impressive annual revenue growth of 12.2% and annual Adjusted EBITDA growth of 13.1%¹. The momentum in our business reflects the robust demand for behavioral healthcare services. Our outstanding team of employees and clinicians across our facilities have been at the forefront of meeting this demand with safe, high-quality care for behavioral health and substance use issues.

“In addition to delivering our solid financial performance, we made significant improvements to our operations in 2023. Our strategic investments have enabled us to strengthen our core infrastructure and further enhance Acadia’s care delivery. We continue to focus on quality across our operations, leveraging technology and utilizing data to mitigate risk, drive efficiencies and support strong clinical outcomes. As demand for our services continues to accelerate, these investments support our ability to reach more patients and make a positive difference in more communities,” added Hunter.

¹ Excluding income from the PRF

Strategic Investments for Long-Term Growth

During the fourth quarter of 2023 and into the first quarter of 2024, the Company continued to make progress in meeting its strategic growth objectives with the following accomplishments across its five defined growth pathways:

• Facility Expansions – Added 98 beds to existing facilities in the fourth quarter, for a total of 302 new beds added in 2023. The Company expects to add more than 400 beds to existing facilities in 2024.
• De Novo Facilities – Opened two CTCs, meeting the Company’s goal to open a total of six CTCs in 2023. Acadia opened the renovated 101-bed adult hospital and outpatient facility that are part of the Montrose Behavioral Health Hospital in Chicago, Illinois. During the fourth quarter, the Company also completed construction on an 80-bed inpatient acute care hospital, Coachella Valley Behavioral Health, in Indio, California, which will open later this year. Acadia plans to open up to 14 new CTCs in 2024.
• Joint Ventures – In January 2024, Acadia announced a new joint venture partnership with Ascension Seton, one of the nation’s leading integrated healthcare systems, for a behavioral health hospital in Austin, Texas. This facility, expected to open later in 2024, marks the Company’s second joint venture partnership with Ascension. The Company also expects to open two other previously announced joint venture facilities in 2024, Intermountain Health in Denver, Colorado, and Henry Ford Health in Detroit, Michigan. Acadia has 21 joint venture partnerships for 22 hospitals, with 11 hospitals already in operation and 11 additional hospitals expected to open over the next few years.
• Acquisitions – On February 22, 2024, the Company closed the previously announced acquisition of Turning Point Centers, a 76-bed specialty provider of substance use disorder and primary mental health treatment services that supports the Salt Lake City, Utah, metropolitan market.
• Extend Continuum of Care – Expanded treatment options by adding 13 outpatient programs during the fourth quarter, bringing Acadia’s total to 39 outpatient programs added during 2023. These programs include Partial Hospitalization Programs (PHP), Intensive Outpatient Programs (IOP) or virtual services.

Cash and Liquidity

Maintaining a strong financial position to support growth investments and disciplined capital allocation are top priorities for Acadia. As of December 31, 2023, the Company had $100.1 million in cash and cash equivalents and $516.5 million available under its $600 million revolving credit facility with a net leverage ratio of approximately 1.9x. On January 18, 2024, the Company entered into an Amended Credit Agreement with its lenders to increase its Term Loan A by $350 million. On January 19, 2024, the Company paid $400 million for the settlement of the three cases related to the previously disclosed litigation in New Mexico.

Net leverage ratio is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures in this press release begins on page 9.

Looking Ahead

Hunter concluded, “The prevalence of behavioral health issues and related deaths is on the rise in our nation. A recent survey by the Centers for Disease Control and Prevention estimated that more than one in five U.S. adults, or nearly 60 million people, live with a mental illness, and over 46 million people have substance use disorders. These illnesses include different conditions that vary in degree of severity and require different modes of treatment. The breadth of our service lines is a key differentiator for Acadia and enhances our ability to support more patients with the appropriate level of high-quality care. With service lines across the continuum of care, strong clinical quality, and a focused operating model, we are well-positioned to continue to lead the behavioral health industry and address these critical needs across the United States. Our 2024 financial guidance reflects our confidence in our ability to drive continued impressive growth and profitability. We are proud of our progress over the past year and look forward to the significant opportunities ahead for Acadia to extend our market reach in 2024.”

Financial Guidance

Acadia today established financial guidance for 2024, as follows:

The Company also established financial guidance for the first quarter of 2024, as follows:

The Company’s guidance does not include the impact of any future acquisitions, divestitures, transaction, legal and other costs or non-recurring legal settlements expense.

Conference Call

Acadia will hold a conference call to discuss its fourth quarter financial results at 7:00 a.m. Central Time/8:00 a.m. Eastern Time on Wednesday, February 28, 2024. A live webcast of the conference call will be available at www.acadiahealthcare.com in the “Investors” section of the website. The webcast of the conference call will be available for 30 days.

About Acadia

Acadia is a leading provider of behavioral healthcare services across the United States. As of December 31, 2023, Acadia operated a network of 253 behavioral healthcare facilities with approximately 11,200 beds in 38 states and Puerto Rico. With approximately 23,500 employees serving more than 75,000 patients daily, Acadia is the largest stand-alone behavioral healthcare company in the U.S. Acadia provides behavioral healthcare services to its patients in a variety of settings, including inpatient psychiatric hospitals, specialty treatment facilities, residential treatment centers and outpatient clinics.

Forward-Looking Information

This press release contains forward-looking statements. Generally, words such as “may,” “will,” “should,” “could,” “anticipate,” “expect,” “intend,” “estimate,” “plan,” “continue,” and “believe” or the negative of or other variation on these and other similar expressions identify forward-looking statements. These forward-looking statements are made only as of the date of this press release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are based on current expectations and involve risks and uncertainties and our future results could differ significantly from those expressed or implied by our forward-looking statements. Factors that may cause actual results to differ materially include, without limitation, (i) potential difficulties in successfully integrating the operations of acquired facilities or realizing the expected benefits and synergies of our facility expansions, acquisitions, joint ventures and de novo transactions; (ii) Acadia’s ability to add beds, expand services, enhance marketing programs and improve efficiencies at its facilities; (iii) potential reductions in payments received by Acadia from government and commercial payors; (iv) the occurrence of patient incidents, governmental investigations, litigation and adverse regulatory actions, which could adversely affect the price of our common stock and result in substantial payments and incremental regulatory burdens; (v) the risk that Acadia may not generate sufficient cash from operations to service its debt and meet its working capital and capital expenditure requirements; (vi) potential disruptions to our information technology systems or a cybersecurity incident; and (vii) potential operating difficulties, including, without limitation, disruption to the U.S. economy and financial markets; reduced admissions and patient volumes; increased costs relating to labor, supply chain and other expenditures; changes in competition and client preferences; and general economic or industry conditions that may prevent Acadia from realizing the expected benefits of its business strategies. These factors and others are more fully described in Acadia’s periodic reports and other filings with the U.S. Securities and Exchange Commission.