Acadia Healthcare Company (ACHC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $816 million, up 8.7% year-over-year, with adjusted EBITDA growth of 10.5% and margin expansion to 23.8%.

• Net income attributable to Acadia was $68.1 million, rebounding from a prior year net loss due to a legal settlement.

• Patient day growth, rate improvement, and bed additions drove top-line results; labor costs trended favorably and recruitment/retention initiatives supported operational stability.

• The company operated 260 facilities with approximately 11,300 beds in 38 states and Puerto Rico as of September 30, 2024.

• Company addressed negative media coverage and ongoing federal investigations, emphasizing compliance and quality standards.

Financial highlights

• Q3 2024 revenue: $816 million (up 8.7% year-over-year); same facility revenue grew 8.6%.

• Adjusted EBITDA rose 10.5% to $194.3 million, margin expanded by 40 bps to 23.8%.

• Net income was $68.1 million ($0.74 per diluted share); adjusted EPS was $0.91, flat year-over-year, excluding prior year Provider Relief Fund income.

• Cash and equivalents stood at $82.1 million, with $321.5 million available on the revolver and net leverage at 2.5x.

• Salaries, wages, and benefits were 52.5% of Q3 2024 revenue; interest expense rose to $29.9 million.

Outlook and guidance

• 2024 revenue guidance revised to $3.15–$3.165 billion; adjusted EBITDA to $725–$735 million; adjusted EPS to $3.35–$3.45.

• Q4 same facility volume growth expected at 3–4%, below prior expectations due to media-driven headwinds.

• Guidance reflects a $20–$30 million revenue and $10–$15 million EBITDA reduction for Q4; no material cost cuts planned as headwinds are seen as temporary.

• Expansion capex for 2024 projected at $550–$595 million, with approx. 1,200 new beds to be completed (1,000 licensed by year-end).

• 2024 guidance excludes Tennessee Supplemental Payment Program and future M&A.