Wed, Oct 30, 8:38 PM (63 days ago)
Acadia Healthcare Company, Inc. (ACHC) reported significant improvements in its financial performance for the third quarter ended September 30, 2024. Revenue increased by 8.7% year-over-year to $815.6 million, driven by growth in patient days and revenue per patient day. Net income attributable to the company was $68.1 million, a notable recovery from a loss of $217.7 million in the prior year, reflecting improved operational efficiency. Profit margins showed resilience, with salaries, wages, and benefits constituting 52.5% of revenue, maintaining stability despite wage inflation pressures. Cash flow from operations decreased sharply to $13.0 million from $346.0 million, influenced by increased capital expenditures totaling $486.9 million, primarily for expansion. The company increased its long-term debt to $1.8 billion, reflecting borrowings for growth initiatives. Despite these challenges, Acadia remains focused on strategic growth avenues, including acquisitions and facility expansions, while managing operational risks associated with labor shortages and regulatory scrutiny. The company’s compliance with financial covenants and the solid performance in revenue growth position it favorably for future operations.