Acadia Healthcare Company (ACHC) investor relations material

Financial performance and growth outlook

• Normalized volume growth and stable revenue per day are driving strong revenue trends and momentum into the year's second half.

• Focus on disciplined cost management and leveraging existing cost structures as volumes ramp up.

• Management is confident in achieving $200 million incremental EBITDA from ramping 3,000 new beds, with detailed facility-level plans and milestones.

• Recent facility openings have accelerated accreditation and payer contracting, supporting faster ramp-up and breakeven targets.

• Sequential stability in bad debts and denials, with expectations for continued improvement and reduced revenue headwinds in the back half of the year.

Demand environment and service line trends

• Demand for behavioral health services remains strong, with a significant increase in mental illness incidence since 2020 and only a fraction of affected individuals seeking help.

• Acute service line volumes rose 5.5% in Q2, and new beds in RTC and specialty lines are being filled.

• CTC business continues to grow, with methadone remaining the primary treatment and a large untapped patient base.

• Innovative therapies are seen as complementary, not replacements, for inpatient care, with openness to adoption as they become approved and reimbursable.

Operational improvements and management focus

• Leadership has emphasized a return to basics, urgency, and action-oriented plans, with weekly reviews of new facility performance.

• Specific improvement plans are in place for underperforming facilities, with a focus on occupancy, expense management, and removing operational barriers.

• Opportunities remain in growing occupancy, managing expenses, and improving payer relationships using outcome data to support negotiations.

• Labor market stability has enabled successful hiring and retention, with onboarding and feedback processes supporting positive retention trends.