Acadia Healthcare Company, Inc. · NASDAQ:ACHC
Acadia Healthcare — Investor Presentation (June 2014)
25 slides from Acadia Healthcare's investor presentation, Jun 3, 2014
Slide 1: Investor Presentation
Exhibit 99.2 * * * * * * * Investor Presentation June 2014
Slide 2: Safe Harbor
Safe Harbor Some of the statements made in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements that address future results or occurrences. In some cases you can identify
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures We have included certain financial measures in this presentation,including Pro Forma EBITDA, Pro Forma Adjusted EBITDA, Adjusted Diluted Earning per Share, PiC EBITDA and PiC Adjusted EBITDA, which are “non-GAAP financial measures” as defined under the rules and re
Slide 4: Key Investment Highlights
Key Investment Highlights Leading Pure Play Behavioral Healthcare Services Provider Significant Transformation in Scale, Bed and Payor Mix Premier Management Team with Track Record of Success Attractive Industry Trends Coupled with Favorable Legislative Environment Proven and Replicable Growth Strat
Slide 5: Definitive Agreement to Acquire Partnerships in Care (PiC)
Definitive Agreement to Acquire Partnerships in Care (PiC) PiC is the 2 nd largest independent (private) behavioral health provider in the UK 23 inpatient facilities with over 1,200 beds 2013 revenues of $285 million 2013 adjusted EBITDA of $75 million Purchase price of approximately $660 million Fu
Slide 6: PiC is a Long-Established Leading Service Provider
PiC is a Long-Established Leading Service Provider PiC Standalone Overview Facility Locations Established in 1985, PiC has since grown to comprise 1,244 beds in 23 facilities located across the UK Owned by Cinven since 2005 Market leader in the provision of secure accommodation for mentally ill pati
Slide 7: Acquisition Rationale
Acquisition Rationale Meaningfully increases size and scale of the business – expected to increase revenue by 37% to $1.1 billion Attractiveplatform for entry into UK behavioral health market Ample opportunities for growth - bed expansions, de novo opportunities and acquisitions have been identified
Slide 8: UK Behavioral Healthcare Market
UK Behavioral Healthcare Market Expenditure on mental healthcare services in the UK is roughly £14.4bn. >70% of funding for these services is provided by the National Health Service (NHS), with the remainder funded by local authorities In total, ~1.3m people currently receive mental healthcare servi
Slide 9: Leading Pure Play Behavioral Healthcare Services Provider
Leading Pure Play Behavioral Healthcare Services Provider Acadia Overview Licensed Bed Mix Acadia is a facility-based behavioral healthcare company established in 2005 to acquire, develop and operate behavioral healthcare facilities In February 2011, five members of the former Psychiatric Solutions,
Slide 10: Premier Management Team with Track Record of Success
Premier Management Team with Track Record of Success Industry Leading Management Team Joey Jacobs Chairman & Chief Executive Officer Years in Industry: 40 Ron Fincher David Duckworth Chris Howard Steve Davidson Bruce Shear Brent Turner Chief Operating Chief Financial Executive Vice Chief Development
Slide 11: Significant Transformation in Scale, Bed and Payor Mix over the Past Two Years
Significant Transformation in Scale, Bed and Payor Mix over the Past Two Years Pro Forma FY 2011 (1) Pro Forma LTM 3/31/14 (2) Acute RTC/ 27% Other RTC / 35% Bed Other Acute Mix 73% 65% 1,970 Beds 4,300 Beds # of Facilities 29 52 Revenue $333 $766 ($ in mil) Adj. EBITDA $54 $155 ($ in mil) Adj. EBIT
Slide 12: Recent Announcements – Longleaf, Cascade and Pacific Grove
Recent Announcements – Longleaf, Cascade and Pacific Grove Longleaf Hospital located in Alexandria, Louisiana 68-bed acute inpatient psychiatric facility Closed October 1, 2013 Purchase price of approximately $8.3 million Cascade Behavioral Hospital located in Tukwila, Washington 63-bed acute inpati
Slide 13: Industry Dynamics Highly Favorable Compared to Medical/Surgical Providers
Industry Dynamics Highly Favorable Compared to Medical/Surgical Providers and Other Facility-Based Healthcare Businesses Inpatient Behavioral Healthcare General Acute Care Hospitals Acute Hospitalization Residential Treatment Broad clinical focus Most intensive level of care offered Less intensive t
Slide 14: Attractive Industry Fundamentals
Attractive Industry Fundamentals Industry Trends Make a Compelling Growth Story Mental Health and Substance Abuse Facilities Market (1) ($ in billions) Highly fragmented industry with small establishments Stable pricing and inpatient ALOS combined with increased admissions and occupancy trends $10.0
Slide 15: Favorable Legislative Environment
Favorable Legislative Environment The Mental Health Parity and Addiction Equity Act of 2008 provides for equal coverage between psychiatric or mental health services and physical medical health services (1) – Forbids employers and insurers from placing stricter limits on mental healthcare compared t
Slide 16: Proven and Replicable Growth Strategy
Proven and Replicable Growth Strategy Growth supported by positive secular demand trends, market share gains, stable pricing and inpatient ALOS Consistent track record of same facility revenue growth (+10% average over the last four quarters) Increase occupancy of existing beds and increasing mix of
Slide 17: Financial Review
Financial Review 16
Slide 18: Attractive Revenue Diversification and Payor Base
Attractive Revenue Diversification and Payor Base Geographic diversification with operations across 52 facilities Limited significant geographic concentration in 24 states and Puerto Rico, on a pro forma basis PF LTM 3/31/14 Revenues (1) Receive Medicaid payments from 30 states, the District of Colu
Slide 19: First Quarter 2014 Financial Summary
First Quarter 2014 Financial Summary Q1 2014 Performance Key Highlights Revenue ($ millions) Y-O-Y Growth: 25% Significant expansion of platform $201.4 $161.2 52 facilities and ~4,300 beds in 24 states and Puerto Rico in Q1 2014 vs. 44 facilities and ~3,500 beds in 21 states in Q1 2013 Room for grow
Slide 20: Historical Performance
Historical Performance Revenues Adjusted EBITDA ($ millions) ($ millions) $713.4 $145.3 $407.5 $81.0 $216.5 $35.2 2011 2012 2013 2011 2012 2013 Adjusted Diluted EPS $1.07 2014 guidance for $0.66 adjusted diluted EPS of $1.26 - $1.29 $0.27 2011 2012 2013 19
Slide 21: Key Investment Highlights
Key Investment Highlights Leading Pure Play Behavioral Healthcare Services Provider Significant Transformation in Scale, Bed and Payor Mix Premier Management Team with Track Record of Success Attractive Industry Trends Coupled with Favorable Legislative Environment Proven and Replicable Growth Strat
Slide 22: Appendix
Appendix 21
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Description of Adjustments Pro Forma Adjusted EBITDA Reconciliation (1) Approximately $17.3 million of equity-based compensation was recognized in 2011 related to equity units issued in conjunction with FYE December 31, TTM $ millions the acquisition of YFCS 2011 2012
Slide 24: Adjusted EPS Reconciliation
Adjusted EPS Reconciliation Adjusted EPS Reconciliation FYE December 31, $ millions 2011 2012 2013 Q1 2013 Q1 2014 Income (loss) from continuing operations $ (33.2) $ 20.5 $ 43.3 $ 4.1 $ 13.0 Provision (benefit) for income taxes (5.3) 12.3 25.9 2.6 7.8 Income (loss) from continuing operations before
Slide 25: PiC Adjusted EBITDA Reconciliation
PiC Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation FYE December $ millions 31, 2013 Loss from Continuing Operations ($48.5) Interest expense, net 103.2 Income tax benefit (2.9) Depreciation and amortization 19.2 EBITDA $71.0 Adjustments (1) Other 4.3 Adjusted EBITDA $75.3 Description
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