Mon, May 12, 8:34 PM (37 days ago)
**Acadia Healthcare Company, Inc. (Ticker: ACHC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $770.5 million, a 0.3% increase from Q1 2024. - **Net Income:** $9.1 million, significantly lower than $78.8 million in Q1 2024. - **Earnings per Share (EPS):** $0.09, down from $0.84 in Q1 2024. - **Profit Margins:** Gross margin decreased to 1.7% from 12.9% in Q1 2024. - **Cash Flow:** Positive operating cash flow of $11.5 million, a reversal from a negative $321.3 million in Q1 2024. **Key Financial Metrics:** - **Revenue Growth:** 2.1% in same-facility revenue, driven by a 2.2% increase in patient days. - **Operating Expenses:** Increased by 14.8% of revenue, primarily due to higher salaries, wages, and benefits. - **Interest Expense:** $29.2 million, up from $27.2 million in Q1 2024 due to new debt issuances. - **Debt:** Total debt of $2.18 billion, with a Consolidated Total Net Leverage Ratio of 3.2x, in compliance with covenants. **Operational Highlights:** - **Facilities:** Operated 270 behavioral healthcare facilities with approximately 12,000 beds in 39 states and Puerto Rico. - **Acquisitions:** Added 378 beds through acquisitions and new facility openings. - **Legal Settlements:** Paid $400 million in Q1 2024 related to Desert Hills litigation. **Future Operations and Uncertainties:** - **Growth Strategies:** Focus on expansions, joint ventures, and acquisitions. - **Labor Market:** Continues to navigate a tight labor market with higher wage inflation. - **Legal and Regulatory Risks:** Ongoing investigations and litigation may impact future operations. - **Economic Factors:** Inflationary pressures and interest rate volatility pose challenges. **Conclusion:** Acadia Healthcare faced a challenging quarter with significant declines in net income and EPS. Despite these headwinds, the company remains focused on growth through strategic acquisitions and facility expansions. However, ongoing legal and regulatory uncertainties, along with economic pressures, present risks to future performance.