Acadia Healthcare Company Inc. (NASDAQ:ACHC) reported first-quarter 2017 adjusted earnings of 46 cents per share, meeting the Zacks Consensus Estimate. Earnings were down 6% year over year. The company was able to meet its own guidance of 45–47 cents provided in the last reported quarter.
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Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report
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A number of factors like strong U.S. dollar relative to British pound, the divestiture of 22 facilities in the U.K. and the first quarter of 2017 having one less day after a leap year impacted results.
Quarter Details
The company registered 10% year-over-year growth in revenues in the quarter to approximately $679 million. However, revenues missed the consensus mark by $10 million, failing to impress investors.
The year-over-year upside in revenues may be attributed to the addition of beds at Acadia’s facilities and a 4.8% increase in same facility revenues. The improvement in same facility revenues, in turn, can be attributed to a 3.7% rise in patient days. Notably, revenue per patient day inched up 1.0% on a year-over-year basis.
The U.S. same facility revenues were up 5.5% from the year-ago quarter. The company also recorded a 5.8% increase in patient days from 2016.
The U.K. same facility revenues inched up 2.6% year over year to $73 million. The number of patient days rose just 0.1% from the year-ago quarter.
We note that revenues per patient day were down 0.3% in the U.S. but up 2.4% in the U.K.
Total expenses increased 7.9% year over year to $630.7 million.
Total same facility EBITDA margin declined 40 basis points year over year to 25.2%.
Acadia Healthcare Company, Inc. Price, Consensus and EPS Surprise
Financial Update
Cash and cash equivalents as of Mar 31, 2017 were $43.09 million, down from $57.06 million at year-end 2016.
Long-term debt was $3.25 billion as of Mar 31, 2017, almost unchanged from the 2016-end level.
Net cash provided by operating activities of $57.01 million decreased 2.8% from year-end 2016.
2017 Guidance Kept Intact
The company reiterated its 2017 earnings guidance. Its adjusted earnings per diluted share ranges between $2.40 and $2.50 on revenues between $2.85 billion and $2.9 billion.
Adjusted EBITDA is expected between $625 million and $640 million.
Acadia Healthcare carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Release & Upcoming Results
Another stock from the same space which reported first-quarter earnings results on the same day was, Universal Health Services Inc. (NYSE:UHS) . It beat earnings estimates by 1.9%
Community Health Systems, Inc. (NYSE:CYH) is expected to report first-quarter earnings results on May 1. Last quarter, it posted an earnings beat of a massive 283.33%.
HCA Holdings, Inc. (NYSE:HCA) is expected to report earnings on May 2. Last quarter, it delivered an earnings beat of 6.18%. It also surpassed estimates in each of the past four quarters with an average positive surprise of 10.2%.
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Universal Health Services, Inc. (UHS): Free Stock Analysis Report
Community Health Systems, Inc. (CYH): Free Stock Analysis Report
Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report
HCA Holdings, Inc. (HCA): Free Stock Analysis Report
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