Financial Information for the Company and Its Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Condensed Consolidating Balance Sheets

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

September 30, 2019

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	63,066	$	29,834	$	—		$	92,900
Accounts receivable, net		—		282,407		67,818		—			350,225
Other current assets		—		78,992		14,796		—			93,788
Total current assets		—		424,465		112,448		—			536,913
Property and equipment, net		—		1,313,560		1,817,859		—			3,131,419
Goodwill		—		1,991,944		432,297		—			2,424,241
Intangible assets, net		—		58,410		30,618		—			89,028
Deferred tax assets		1,999		—		3,371		(1,999	)		3,371
Investment in subsidiaries		5,369,355		—		—		(5,369,355	)		—
Operating lease right-of-use assets		—		99,517		380,364		—			479,881
Other assets		251,289		55,571		4,681		(248,269	)		63,272
Total assets	$	5,622,643	$	3,943,467	$	2,781,638	$	(5,619,623	)	$	6,728,125

Current liabilities:
Current portion of long-term debt	$	41,287	$	—	$	—	$	—		$	41,287
Accounts payable		—		93,817		37,655		—			131,472
Accrued salaries and benefits		—		87,206		30,477		—			117,683
Current portion of operating lease liabilities		—		17,595		10,415		—			28,010
Other accrued liabilities		11,134		48,150		80,470		—			139,754
Total current liabilities		52,421		246,768		159,017		—			458,206
Long-term debt		3,133,635		—		248,269		(248,269	)		3,133,635
Deferred tax liabilities		—		17,419		47,734		(1,999	)		63,154
Operating lease liabilities		—		87,700		391,194		—			478,894
Derivative instrument liabilities		15,896		—		—		—			15,896
Other liabilities		—		110,037		15,248		—			125,285
Total liabilities		3,201,952		461,924		861,462		(250,268	)		4,275,070
Redeemable noncontrolling interests		—		—		32,364		—			32,364
Total equity		2,420,691		3,481,543		1,887,812		(5,369,355	)		2,420,691
Total liabilities and equity	$	5,622,643	$	3,943,467	$	2,781,638	$	(5,619,623	)	$	6,728,125

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

December 31, 2018

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	32,471	$	18,039	$	—		$	50,510
Accounts receivable, net		—		248,218		69,869		—			318,087
Other current assets		—		60,160		21,660		—			81,820
Total current assets		—		340,849		109,568		—			450,417
Property and equipment, net		—		1,219,803		1,887,963		—			3,107,766
Goodwill		—		1,936,057		460,355		—			2,396,412
Intangible assets, net		—		56,611		32,379		—			88,990
Deferred tax assets – noncurrent		1,841		—		3,468		(1,841	)		3,468
Derivative instruments		60,524		—		—		—			60,524
Investment in subsidiaries		5,190,771		—		—		(5,190,771	)		—
Other assets		306,495		52,824		9,548		(303,940	)		64,927
Total assets	$	5,559,631	$	3,606,144	$	2,503,281	$	(5,496,552	)	$	6,172,504
Current liabilities:
Current portion of long-term debt	$	34,112	$	—	$	—	$	—		$	34,112
Accounts payable		—		79,463		38,277		—			117,740
Accrued salaries and benefits		—		84,150		29,149		—			113,299
Other accrued liabilities		32,837		42,062		76,327		—			151,226
Total current liabilities		66,949		205,675		143,753		—			416,377
Long-term debt		3,159,375		—		303,940		(303,940	)		3,159,375
Deferred tax liabilities – noncurrent		—		31,874		50,339		(1,841	)		80,372
Other liabilities		—		107,866		46,401		—			154,267
Total liabilities		3,226,324		345,415		544,433		(305,781	)		3,810,391
Redeemable noncontrolling interests		—		—		28,806		—			28,806
Total equity		2,333,307		3,260,729		1,930,042		(5,190,771	)		2,333,307
Total liabilities and equity	$	5,559,631	$	3,606,144	$	2,503,281	$	(5,496,552	)	$	6,172,504

Summary of Condensed Consolidating Statement of Comprehensive Income (Loss)

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2019

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	476,722	$	300,529		$	—		$	777,251
Salaries, wages and benefits		4,039			258,166		166,396			—			428,601
Professional fees		—			27,955		34,197			—			62,152
Supplies		—			20,291		10,499			—			30,790
Rents and leases		—			8,771		11,363			—			20,134
Other operating expenses		—			60,730		32,245			—			92,975
Depreciation and amortization		—			20,588		20,032			—			40,620
Interest expense, net		19,109			22,876		4,659			—			46,644
Transaction-related expenses		—			4,326		1,449			—			5,775
Total expenses		23,148			423,703		280,840			—			727,691
(Loss) income before income taxes		(23,148	)		53,019		19,689			—			49,560
Equity in earnings of subsidiaries		60,296			—		—			(60,296	)		—
(Benefit from) provision for income taxes		(5,575	)		15,273		(2,861	)		—			6,837
Net income (loss)		42,723			37,746		22,550			(60,296	)		42,723
Net income attributable to noncontrolling interests		—			—		(157	)		—			(157	)
Net income (loss) attributable to Acadia Healthcare Company, Inc.	$	42,723		$	37,746	$	22,393		$	(60,296	)	$	42,566
Other comprehensive income:
Foreign currency translation loss		—			—		(59,975	)		—			(59,975	)
Gain on derivative instruments		11,598			—		—			—			11,598
Other comprehensive income (loss)		11,598			—		(59,975	)		—			(48,377	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	54,321		$	37,746	$	(37,582	)	$	(60,296	)	$	(5,811	)

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	458,061	$	302,855		$	—		$	760,916
Salaries, wages and benefits		5,225			245,599		167,093			—			417,917
Professional fees		—			24,152		35,357			—			59,509
Supplies		—			19,139		10,322			—			29,461
Rents and leases		—			8,294		11,572			—			19,866
Other operating expenses		—			57,495		32,969			—			90,464
Depreciation and amortization		—			18,857		20,802			—			39,659
Interest expense, net		17,225			22,768		6,658			—			46,651
Transaction-related expenses		—			702		1,651			—			2,353
Total expenses		22,450			397,006		286,424			—			705,880
(Loss) income before income taxes		(22,450	)		61,055		16,431			—			55,036
Equity in earnings of subsidiaries		62,854			—		—			(62,854	)		—
(Benefit from) provision for income taxes		(5,875	)		11,666		2,966			—			8,757
Net income (loss)		46,279			49,389		13,465			(62,854	)		46,279
Net income attributable to noncontrolling interests		—			—		(47	)		—			(47	)
Net income (loss) attributable to Acadia Healthcare Company, Inc.	$	46,279		$	49,389	$	13,418		$	(62,854	)	$	46,232
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(31,959	)		—			(31,959	)
Gain on derivative instruments		7,380			—		—			—			7,380
Other comprehensive income (loss)		7,380			—		(31,959	)		—			(24,579	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	53,659		$	49,389	$	(18,541	)	$	(62,854	)	$	21,653

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended September 30, 2019

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	1,416,790	$	910,440		$	—		$	2,327,230
Salaries, wages and benefits		14,322			767,764		506,313			—			1,288,399
Professional fees		—			79,663		97,925			—			177,588
Supplies		—			59,753		31,908			—			91,661
Rents and leases		—			25,890		34,970			—			60,860
Other operating expenses		—			181,639		99,878			—			281,517
Depreciation and amortization		—			60,210		62,067			—			122,277
Interest expense, net		58,825			69,380		15,179			—			143,384
Transaction-related expenses		—			12,122		3,186			—			15,308
Total expenses		73,147			1,256,421		851,426			—			2,180,994
(Loss) income before income taxes		(73,147	)		160,369		59,014			—			146,236
Equity in earnings of subsidiaries		174,337			—		—			(174,337	)		—
(Benefit from) provision for income taxes		(19,245	)		57,636		(12,590	)		—			25,801
Net income (loss)		120,435			102,733		71,604			(174,337	)		120,435
Net gain attributable to noncontrolling interests		—			—		(258	)		—			(258	)
Net income (loss) attributable to Acadia Healthcare Company, Inc.	$	120,435		$	102,733	$	71,346		$	(174,337	)	$	120,177
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(66,112	)		—			(66,112	)
Gain on derivative instruments		20,495			—		—			—			20,495
Other comprehensive income (loss)		20,495			—		(66,112	)		—			(45,617	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	140,930		$	102,733	$	5,234		$	(174,337	)	$	74,560

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Nine Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	1,347,468	$	921,427		$	—			2,268,895
Salaries, wages and benefits		19,273			724,650		502,263			—			1,246,186
Professional fees		—			73,100		93,888			—			166,988
Supplies		—			57,143		31,815			—			88,958
Rents and leases		—			24,844		35,546			—			60,390
Other operating expenses		—			168,923		97,054			—			265,977
Depreciation and amortization		—			55,640		63,720			—			119,360
Interest expense, net		47,307			69,954		20,445			—			137,706
Debt extinguishment costs		940			—		—			—			940
Transaction-related expenses		—			7,382		2,626			—			10,008
Total expenses		67,520			1,181,636		847,357			—			2,096,513
(Loss) income before income taxes		(67,520	)		165,832		74,070			—			172,382
Equity in earnings of subsidiaries		206,204			—		—			(206,204	)		—
(Benefit from) provision for income taxes		(17,359	)		22,985		10,713			—			16,339
Net income (loss)		156,043			142,847		63,357			(206,204	)		156,043
Net income attributable to noncontrolling interests		—			—		(156	)		—			(156	)
Net income (loss) attributable to Acadia Healthcare Company, Inc.	$	156,043		$	142,847	$	63,201		$	(206,204	)	$	155,887
Other comprehensive (loss) income:
Foreign currency translation loss		—			—		(82,778	)		—			(82,778	)
Gain on derivative instruments		16,434			—		—			—			16,434
Other comprehensive income (loss)		16,434			—		(82,778	)		—			(66,344	)
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	172,477		$	142,847	$	(19,577	)	$	(206,204	)	$	89,543

Summary of Condensed Consolidating Statement of Cash Flows

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2019

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	120,435		$	102,733		$	71,604		$	(174,337	)	$	120,435
Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities:
Equity in earnings of subsidiaries		(174,337	)		—			—			174,337			—
Depreciation and amortization		—			60,210			62,067			—			122,277
Amortization of debt issuance costs		8,926			—			—			—			8,926
Equity-based compensation expense		14,322			—			—			—			14,322
Deferred income taxes		(158	)		4,517			791			—			5,150
Other		2,606			1,643			195			—			4,444
Change in operating assets and liabilities:
Accounts receivable, net		—			(28,918	)		(4,038	)		—			(32,956	)
Other current assets		—			(2,845	)		(1,067	)		—			(3,912	)
Other assets		3,847			(1,136	)		1,666			(3,847	)		530
Accounts payable and other accrued liabilities		—			(29,543	)		(6,067	)		—			(35,610	)
Accrued salaries and benefits		—			2,008			2,805			—			4,813
Other liabilities		—			16,058			(10,948	)		—			5,110
Net cash (used in) provided by operating activities		(24,359	)		124,727			117,008			(3,847	)		213,529
Investing activities:
Cash paid for acquisitions, net of cash acquired		—			(44,900	)		—			—			(44,900	)
Cash paid for capital expenditures		—			(135,242	)		(67,480	)		—			(202,722	)
Cash paid for real estate acquisitions		—			(6,976	)		—			—			(6,976	)
Settlement of foreign currency derivatives		105,008			—			—			—			105,008
Other		—			7,615			4,783			—			12,398
Net cash provided by (used in) investing activities		105,008			(179,503	)		(62,697	)		—			(137,192	)
Financing activities:
Borrowings on revolving credit facility		76,573			—			—			—			76,573
Principal payments on revolving credit facility		(76,573	)		—			—			—			(76,573	)
Principal payments on long-term debt		(24,738	)		—			(3,847	)		3,847			(24,738	)
Common stock withheld for minimum statutory taxes, net		(1,498	)		—			—			—			(1,498	)
Other		(2,375	)		(1,580	)		(1,968	)		—			(5,923	)
Cash (used in) provided by intercompany activity		(52,038	)		86,951			(34,913	)		—			—
Net cash (used in) provided by in financing activities		(80,649	)		85,371			(40,728	)		3,847			(32,159	)
Effect of exchange rate changes on cash		—			—			(1,788	)		—			(1,788	)
Net increase in cash and cash equivalents		—			30,595			11,795			—			42,390
Cash and cash equivalents at beginning of the period		—			32,471			18,039			—			50,510
Cash and cash equivalents at end of the period	$	—		$	63,066		$	29,834		$	—		$	92,900

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	156,043		$	142,847		$	63,357		$	(206,204	)	$	156,043
Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities:
Equity in earnings of subsidiaries		(206,204	)		—			—			206,204			—
Depreciation and amortization		—			55,640			63,720			—			119,360
Amortization of debt issuance costs		8,065			—			(302	)		—			7,763
Equity-based compensation expense		19,273			—			—			—			19,273
Deferred income taxes		74			(2,398	)		586			—			(1,738	)
Debt extinguishment costs		940			—			—			—			940
Other		1,948			1,219			(142	)		—			3,025
Change in operating assets and liabilities:
Accounts receivable, net		—			(39,644	)		(3,608	)		—			(43,252	)
Other current assets		—			7,898			(4,877	)		—			3,021
Other assets		4,596			3,763			105			(4,596	)		3,868
Accounts payable and other accrued liabilities		—			7,835			1,395			—			9,230
Accrued salaries and benefits		—			11,100			(51	)		—			11,049
Other liabilities		—			4,548			(4,399	)		—			149
Net cash (used in) provided by continuing operating activities		(15,265	)		192,808			115,784			(4,596	)		288,731
Net cash used in discontinued operating activities		—			(2,548	)		—			—			(2,548	)
Net cash (used in) provided by operating activities		(15,265	)		190,260			115,784			(4,596	)		286,183
Investing activities:
Cash paid for capital expenditures		—			(149,402	)		(100,587	)		—			(249,989	)
Cash paid for real estate acquisitions		—			(9,391	)		—			—			(9,391	)
Other		—			(5,718	)		2,604			—			(3,114	)
Net cash used in investing activities		—			(164,511	)		(97,983	)		—			(262,494	)
Financing activities:
Principal payments on long-term debt		(31,492	)		(169	)		(4,427	)		4,596			(31,492	)
Common stock withheld for minimum statutory taxes, net		(2,272	)		—			—			—			(2,272	)
Other		(1,742	)		(2,885	)		(2,346	)		—			(6,973	)
Cash provided by (used in) intercompany activity		50,771			(37,257	)		(13,514	)		—			—
Net cash provided by (used in) in financing activities		15,265			(40,311	)		(20,287	)		4,596			(40,737	)
Effect of exchange rate changes on cash		—			—			(1,314	)		—			(1,314	)
Net decrease in cash and cash equivalents		—			(14,562	)		(3,800	)		—			(18,362	)
Cash and cash equivalents at beginning of the period		—			46,860			20,430			—			67,290
Cash and cash equivalents at end of the period	$	—		$	32,298		$	16,630		$	—		$	48,928