Acadia Healthcare Company, Inc. · NASDAQ:ACHC
Acadia Healthcare — Corporate Update (May 2019)
19 slides from Acadia Healthcare's corporate update, May 30, 2019
Slide 1: Update on Strategic Priorities and Initiatives
Update on Strategic priorities and initiatives Conference Call May 30, 2019 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
Slide 2: Update on strategic review
Update on strategic review Commenced a thorough and comprehensive review of the portfolio with the help of a third-party strategy consulting firm in mid-MarchEvaluated the core of Acadia’s business by focusing on our portfolio strategy, determining the future shape and direction of the entire busine
Slide 3: Acadia strategy update: CEO perspective
Acadia strategy update CEO perspective – well-positioned and diversified leader in behavioral healthcare with plans to grow and improve operational efficiencyAcadia is a leading pure-play behavioral healthcare company in an attractive, growing and fragmented industryIdentified attractive near-term a
Slide 4: Strong platform to continue to build on
Strong platform to continue to build on Time is right to explore strategic alternatives in the UK, including a potential saleEstablished path to improve financial performance, currently realizing positive impactCost and revenue opportunities to improve operational efficiencies and capture unrealized
Slide 5: UK Business line review & strategic priorities
UK Business line review & strategic priorities
Slide 6: UK Business decision
Uk Business decision Board of Directors to explore strategic alternatives with respect to UK operations, including a potential sale, to maximize Acadia shareholder valueThe Board will evaluate a potential transaction expeditiously and ensure that any transaction maximizes shareholder valueNo guarant
Slide 7: UK Business overview
Uk Business overview (1) Facility and bed count as of March 31, 2019.(2) Laing Buisson Mental Health Hospitals & Community Mental Health Services, UK Market Report. Operates 370 behavioral healthcare facilities with 8,800 beds across England, Wales, Scotland, and Northern Ireland (1) Geographic Pres
Slide 8: Identified UK business improvements
Identified uk business improvements Build and retain best-in-class workforce in behavioral healthMaintain strong reputation as “great place to work”Reduce reliance on higher-cost agency laborMandated use of preferred agency vendorsIncreased recruitment supportStrengthen retention efforts across all
Slide 9: US Business line review & strategic priorities
US Business line review & strategic priorities
Slide 10: US Business Overview: Acute
(1) IBISWorld Psychiatric Hospitals in US. Figures represent patientcare for mental disorders.(2) IBISWorld Mental Health & Substance Abuse Centers in the US. Figures represent residential treatment programs for mental illness, detoxification and substance abuse, and other services for mental health
Slide 11: US Business Overview: CTC and RTC
US Business OVerview CTC BUSINESS OVERVIEWAdditional opportunity for growthCTC business accounted for 16% of Acadia’s 2018 US revenueLeading provider of Medication-Assisted Treatment with 125 locations with focus on delivering high-quality, comprehensive careStrong position and economics in attracti
Slide 12: Significant opportunity set across the US portfolio
Significant opportunity set Across the US Portfolio Decision-making framework for capital allocation FACILITY EXPANSION JOINT VENTURES DE NOVOS M&A Service Line: Acute, Specialty, CTC, RTCHigh-value bed expansions at existing facilities Market growth and demand for new services drives business decis
Slide 13: Operational improvement program to be implemented in the US
operational improvement program to be implemented in the us Examples of potential improvements we can REALIZE with scale Acadia has rapidly grown from 54 to 223 facilities in the US since 2014Over that period, we have improved operations at acquired facilities, expanding margins and improving qualit
Slide 14: Capital Allocation Framework
Capital Allocation Framework Capital allocation framework to enhance discipline and ensure prioritization of best investment opportunities See slide 18 for definition of Adjusted EBITDA>Excludes transaction-related expenses and any changes in working capital. ANNUAL CASH FLOW GENERATION 2019 Estimat
Slide 15: Aligning on the path forward for growth
aligning on the path forward for growth Solidify the CoreExplore strategic alternatives in the UK, including a potential saleImplement operational improvement plans in the US and the UKContinue to lead the industry in quality and patient outcomes Pursue Best-in-Class Growth TrajectoryIncrease financ
Slide 16: Aligning on the path forward for growth
ALIGNING ON THE PATH FORWARD FOR GROWTH + Focus on Quality » Focused on delivering high quality care and maintaining highest ‘compliance with industry regulations > UI jing evidenced-based practices across all treatment settings an patient populations » Emphasis on data driven decision- making to pr
Slide 17: Use of non-GAAP financial measures
USE OF NON-GAAP FINANCIAL MEASURES We have included certain financial measures in this presentation, including EBITDA and Adjusted EBITDA, which is “non-GAAP financial measure” as defined under the rules and regulations promulgated by the SEC. We define EBITDA as net income adjusted for loss from di
Slide 18: Use of non-GAAP financial measures
USE OF NON-GAAP FINANCIAL MEASURES including EBITDA and Adjusted EBITDA, which is “non-GAAP financial measure” as by the SEC. We define EBITD/ t income adjusted for loss from discontinued operations, net of income taxes, to interests, income i We define Adjusted EBITDA as EBITDA adjusted for equity-
Slide 19: Acadia
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