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Acadia shares dip on Q1 revenue miss

EditorRachael Rajan
Published 02/05/2024, 07:02 am
© Reuters.
ACHC
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FRANKLIN, Tenn. - Acadia Healthcare (NASDAQ:ACHC) Company, Inc. (NASDAQ: ACHC) has reported its financial results for the first quarter ended March 31, 2024, with mixed outcomes. The company's adjusted earnings per share (EPS) of $0.84 exceeded analyst expectations by $0.04, surpassing the consensus estimate of $0.80.

However, revenue for the quarter fell short, totaling $768.1 million against the anticipated $778.29 million, leading to a 1.36% decline in the company's stock.

The first quarter showcased a 9.1% increase in revenue compared to the same period last year, reflecting a robust operational performance. Acadia's same facility revenue saw a 9.2% rise, driven by a 6.9% increase in revenue per patient day and a 2.2% growth in patient days. Adjusted EBITDA for the quarter reached $173.9 million, marking a significant 14.9% improvement from the first quarter of 2023, with the adjusted EBITDA margin expanding by 110 basis points to 22.6%.

Chris Hunter, CEO of Acadia, expressed satisfaction with the company's financial and operational performance, highlighting the year-over-year top-line growth and EBITDA expansion. Hunter attributed the strong results to operating leverage and improved labor trends, reinforcing the company's confidence in meeting its strategic growth objectives for 2024. He emphasized the ongoing demand for behavioral health services and Acadia's commitment to adding approximately 1,200 new beds this year to meet this need.

Acadia's growth strategy has led to the addition of 27 beds to existing facilities, the opening of a new specialty facility, and the acquisition of a specialty provider and three comprehensive treatment centers. The company also opened a 100-bed acute care hospital in Mesa, Arizona, in April 2024, further expanding its service offerings.

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Looking ahead, Acadia has reaffirmed its financial guidance for 2024. The company forecasts an adjusted EPS range of $3.40 to $3.70 and revenue projections between $3.18 to $3.25 billion. These figures align closely with analyst expectations, which predict an adjusted EPS of $3.54 and revenue of $3.22 billion.

Despite the slight stock decline following the revenue miss, Acadia maintains a strong financial position with $77.3 million in cash and cash equivalents and $371.5 million available under its revolving credit facility. The company's net leverage ratio stands at approximately 2.6x, demonstrating a solid balance sheet capable of supporting its strategic investments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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