Acadia Healthcare recorded sizable gains in its second quarter and for the first half of 2014 as higher admissions and new acquisitions benefited the publicly traded operator of inpatient behavioral health
facilities. A one-time currency adjustment also contributed to quarterly gains.
Franklin, Tenn.-based Acadia's results for the rest of the year are likely to be just as strong, considering the second-quarter earnings did not include its recent $662 million acquisition of Partnerships in Care
, a psychiatric hospital chain based in the U.K. with 23 inpatient facilities. That deal closed July 1.
Acadia's net income in the quarter climbed 84% to $22.5 million. Excluding special one-time items, including a foreign currency accounting adjustment related to the Partnerships in Care transaction, Acadia's profit still rose 27% to $16.6 million.
Revenue climbed more than 20% year over year in the second quarter, totaling $213.8 million. Acadia CEO Joey Jacobs
said in a statement that the large growth was attributed to the higher demand for mental health services. Same-facility admissions surged 16%, while patient days increased 10.6%.
The inpatient behavioral sector is expected to grow even more
as mental disorders garner more attention and as states expand Medicaid coverage.
In the past year, Acadia has handled increased volumes through several means. It built two facilities, added more than 400 beds to existing hospitals and acquired two other psychiatric facilities
—Riverside (Calif.) Center for Behavioral Medicine, now named Pacific Grove Hospital, and the inpatient facility within Highline Medical Center in Burien, Wash.
Acadia reaffirmed its higher guidance for the rest of this year, noting that the Partnerships in Care transaction will help the company reach 2014 adjusted earnings per share between $1.44 and $1.46.
Acadia's shares closed Tuesday at $49.78, down about 1.6%. However, shares were oscillating as high as $50.53 in after-hours trading.Follow Bob Herman on Twitter: @MHbherman