Acadia Healthcare Company (ACHC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 8.8% year-over-year to $796 million, driven by higher patient days and rate improvement.

• Net income attributable to the company was $78.5 million ($0.85 per diluted share); adjusted income was $83.6 million ($0.91 per diluted share).

• Adjusted EBITDA grew 7.6% year-over-year to $187.6 million, with margin at 23.6%.

• Demand for behavioral health services remains robust, with ongoing expansion in bed capacity and new facility openings.

• The company operates 258 facilities with about 11,400 beds, serving over 75,000 patients daily.

Financial highlights

• Same-facility revenue increased 8.3% year-over-year, with revenue per patient day up 5.6% and patient day growth of 2.6%.

• Q2 2024 net income was $78.5 million; adjusted EBITDA margin for Q2 was 23.6%.

• Adjusted income per diluted share was $0.91, compared to $0.92 in the prior year.

• Cash and cash equivalents stood at $77.2 million, with $371.5 million available under a $600 million revolving credit facility.

• Salaries, wages, and benefits were 52.7% of revenue in Q2 2024, showing stability in labor costs.

Outlook and guidance

• 2024 guidance updated: revenue expected between $3.18 billion and $3.225 billion, adjusted EBITDA between $735 million and $765 million, and adjusted EPS between $3.45 and $3.65.

• Guidance reflects closure of two underperforming facilities, removing $25 million in expected revenue.

• On track to add approximately 1,200 beds and up to 14 new Comprehensive Treatment Centers in 2024.

• Plans to open four more inpatient facilities in H2 2024, including two joint ventures.

• No impact from potential state supplemental payments or future transactions included in guidance.