Acadia Healthcare Company, Inc. (NASDAQ:ACHC) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 09:00 am ET


Acadia Healthcare Company, Inc. (NASDAQ:ACHC) Q3 2019 Earnings Conference Call - Final Transcript


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[Operator Instructions]. Please proceed.

Gretchen Hommrich

Good morning and welcome to Acadia's Third Quarter 2019 Conference Call. To the extent any non-GAAP financial measure is discussed in today's call you will also find a reconciliation of that measure to the most directly comparable financial measure calculated according to GAAP on our website by viewing yesterday's news release under the Investors link. This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including statements among others regarding Acadia's expected quarterly and annual financial performance for 2019 and beyond. For this purpose any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements.

Without limiting the foregoing the words beliefs, anticipate. Plans expects and similar expressions are intended to identify forward looking statements. You are hereby caution that these statements may be affected by the important factors among others set forth indicators filings with the Securities and Exchange Commission, and in the company's third quarter news release, and consequently, actual operations and results may differ materially from the results discussed in a forward looking statement. The company undertakes no obligation to update publicly any forward looking statements, whether as a result of new information future for future events or otherwise

At this time for opening remarks I would like to turn the conference call over to Chief Executive Officer Debbie Osteen.

Debbie Osteen

Good morning and thank you for being with us today for our third quarter conference call. I'm here today with Chief Financial Officer David Duckworth and other members of our executive management team. David and I are pleased to provide some remarks about the third quarter. We will then open the line for your questions. For the third quarter U.S. same facility revenue increased 4.9% with a 2.8% increase in patient days and a 2% increase in revenue per patient day compared with the prior year period. U.S. same facility EBITDA margin was 25.9% compared with 27.3% for the third quarter of 2018. During the third quarter we faced certain operating issues at a handful of our U.S. facilities. While we have historically had facilities that outperform and underperform against expectations in any given year we believe the impact at these specific facilities has been unique due to the size of the facilities in terms of their revenue and earnings contribution to the company.

There is not a systemic issue that has affected our business and we continue to be confident in the long-term outlook for our company. Adjusting our same facility stats for these facilities: revenue growth is 7.1% patient day growth is 4.4% revenue per patient day growth is 2.6% and EBITDA margins would be flat as compared to the prior period. In the third quarter we also had a few specialty facilities impacted by Hurricane Dorian. Patient volumes were affected in the month of September and some specialty patients were reluctant to travel to North Carolina and Florida for treatment due to the