Acadia Healthcare (Nasdaq: ACHC) posted mixed results in the third quarter of 2019, with revenue up slightly and income down year-over-year. Overall, the Franklin, Tennessee-based company fell short of analysts’ estimates.
In Q3 2019, revenues rose to $777.3 million compared to $760.9 million for the same period a year earlier. Analysts had predicted revenue of $790.5 million for the quarter.
Meanwhile, net income attributable to stockholders was $42.6 million, down from $46.2 million in Q3 2018.
Acadia is a behavioral health company with nearly 600 facilities in 40 states, the United Kingdom and Puerto Rico. It provides psychiatric and substance abuse services in a variety of settings, from inpatient psychiatric hospitals and specialty treatment facilities to residential treatment centers and outpatient clinics.
CEO Debbie Osteen attributed the company’s Q3 struggles to temporary issues related to operations and weather.
“During the third quarter we faced certain operating issues at a handful of our U.S. facilities,” Osteen said during a Wednesday call with investors. “While we have historically had facilities that outperform and underperform against expectations in any given year, we believe the impact at these specific facilities has been unique due to the size of the facilities in terms of their revenue and earnings contribution to the company.”
Osteen also pointed to Hurricane Dorian as a negative influencer for Q3 performance. The tropical storm hit the eastern coast of the U.S. in early September.
“Patient volumes were affected in the month of September, and some specialty patients were reluctant to travel to North Carolina and Florida for treatment due to the adverse weather,” Osteen said. “Combining the impact from the weather and the issues at the specific facilities, we estimate that the impact on EBITDA was approximately $9 million for the third quarter.”
While Acadia is working to bounce back, it’s unclear when that will happen, especially because some of it’s California facilities have been impacted by wildfires in Q4, Osteen said on the call.
As such, the company has adjusted its 2019 guidance accordingly.
Executives now expect revenue for the year to fall between $3.1 billion and $3.125 billion, with EBITDA for 2019 expected to range from $584 million to $589 million.
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