Acadia Healthcare’s Earnings Call: A Balanced Outlook

Acadia Healthcare Company, Inc. ((ACHC)) has held its Q1 earnings call. Read on for the main highlights of the call.

Acadia Healthcare’s recent earnings call presented a balanced sentiment, highlighting strong revenue and EBITDA performance alongside effective expansion initiatives. However, challenges were noted with underperforming facilities and flat revenue per patient day growth, painting a complex picture of the company’s current standing.

Revenue and EBITDA Performance

Acadia Healthcare reported a first-quarter revenue of $770.5 million, slightly surpassing the midpoint of their outlook range. The adjusted EBITDA stood at $134.2 million, nearing the high end of expectations. This financial performance underscores the company’s robust operational capabilities and strategic financial management.

Patient Day Growth

Despite the unfavorable impact of a leap year, same facility patient days grew by 2.2% in the first quarter. This growth reflects Acadia’s resilience and ability to maintain patient engagement even in challenging calendar conditions.

Expansion Initiatives

In a bid to expand its market presence, Acadia added 378 new beds, including 90 to existing facilities and 288 from two new facilities. The company also opened seven new comprehensive treatment centers, extending its reach to 170 centers across 33 states, signaling a strong commitment to growth and accessibility.

Focus on Quality and Safety

Quality and safety remain at the forefront of Acadia’s operations, with facilities being licensed, accredited, and regularly inspected. The introduction of advanced data capabilities and a new integrated quality dashboard enhances the monitoring of care, ensuring high standards are maintained.

Labor Cost Improvements

Acadia reported a decline in premium pay both sequentially and year-over-year, indicating positive trends in labor costs and staff retention. This improvement is crucial for maintaining operational efficiency and reducing overheads.

Underperforming Facilities

A small group of underperforming facilities posed a challenge, contributing a $20 million year-over-year headwind to the 2025 adjusted EBITDA. Addressing these underperforming units will be critical for future financial stability.

Startup Losses

Higher startup losses were reported due to the increase in newly constructed facilities. While this reflects a strategic investment in growth, it also highlights the financial pressures of expanding operations.

Flat Revenue Per Patient Day Growth

Revenue per patient day remained flat year-over-year, primarily due to the timing of supplemental payments. This stagnation indicates potential areas for revenue optimization.

Specialty Facility Revenue Decline

Specialty revenue saw a 5% decline in the first quarter, largely due to facility closures in previous quarters. This decline underscores the need for strategic adjustments in specialty services.

Forward-Looking Guidance

Acadia reaffirmed its full-year guidance for revenue and adjusted EBITDA, projecting continued growth with plans to add between 801,000 total beds for the year. The company emphasized its commitment to quality and safety, leveraging advanced data capabilities to monitor performance indicators. Efforts in employee engagement and talent acquisition were also highlighted, with a noted decline in premium pay.

In conclusion, Acadia Healthcare’s earnings call reflected a balanced outlook with strong financial performance and strategic expansion efforts. However, challenges with underperforming facilities and flat revenue growth per patient day remain areas to watch. The company’s commitment to quality, safety, and employee engagement positions it well for future growth.