Segment Information |
15. Segment Information
The Company operates in one line of business, which is operating
acute inpatient psychiatric facilities, specialty treatment
facilities, residential treatment centers and facilities providing
outpatient behavioral healthcare services. As management reviews
the operating results of its facilities in the United States (the
“U.S. Facilities”) and its facilities in the United
Kingdom (the “U.K. Facilities”) separately to assess
performance and make decisions, the Company’s operating
segments include its U.S. Facilities and U.K. Facilities. At
December 31, 2016, the U.S. Facilities included 208 behavioral
healthcare facilities with approximately 8,500 beds in 39 states
and Puerto Rico, and the U.K. Facilities included 365 behavioral
healthcare facilities with approximately 8,600 beds in the U.K.
The following tables set forth the financial information by
operating segment, including a reconciliation of Segment EBITDA to
income from continuing operations before income taxes (in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Facilities
|
|
$ |
1,698,525 |
|
|
$ |
1,426,205 |
|
|
$ |
850,625 |
|
U.K. Facilities
|
|
|
1,110,361 |
|
|
|
360,698 |
|
|
|
151,127 |
|
Corporate and Other
|
|
|
2,028 |
|
|
|
7,589 |
|
|
|
2,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,810,914 |
|
|
$ |
1,794,492 |
|
|
$ |
1,004,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDA (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Facilities
|
|
$ |
443,341 |
|
|
$ |
377,587 |
|
|
$ |
209,668 |
|
U.K. Facilities
|
|
|
245,046 |
|
|
|
90,035 |
|
|
|
39,832 |
|
Corporate and Other
|
|
|
(79,797 |
) |
|
|
(62,790 |
) |
|
|
(34,012 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
608,590 |
|
|
$ |
404,832 |
|
|
$ |
215,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
2014 |
|
Segment EBITDA (1)
|
|
$ |
608,590 |
|
|
$ |
404,832 |
|
|
$ |
215,488 |
|
Plus (less):
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity-based compensation expense
|
|
|
(28,345 |
) |
|
|
(20,472 |
) |
|
|
(10,058 |
) |
Debt extinguishment costs
|
|
|
(4,253 |
) |
|
|
(10,818 |
) |
|
|
— |
|
Loss on divestiture
|
|
|
(178,809 |
) |
|
|
— |
|
|
|
— |
|
Gain (loss) on foreign currency derivatives
|
|
|
523 |
|
|
|
(1,926 |
) |
|
|
15,262 |
|
Transaction-related expenses
|
|
|
(48,323 |
) |
|
|
(36,571 |
) |
|
|
(13,650 |
) |
Interest expense, net
|
|
|
(181,325 |
) |
|
|
(106,742 |
) |
|
|
(48,221 |
) |
Depreciation and amortization
|
|
|
(135,103 |
) |
|
|
(63,550 |
) |
|
|
(32,667 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
$ |
32,955 |
|
|
$ |
164,753 |
|
|
$ |
126,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Facilities |
|
|
U.K. Facilities |
|
|
Corporate and
Other |
|
|
Consolidated |
|
Goodwill:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2016
|
|
$ |
1,941,873 |
|
|
$ |
186,342 |
|
|
$ |
— |
|
|
$ |
2,128,215 |
|
Increase from 2016 acquisitions
|
|
|
95,645 |
|
|
|
686,149 |
|
|
|
— |
|
|
|
781,794 |
|
Foreign currency translation loss
|
|
|
— |
|
|
|
(127,020 |
) |
|
|
— |
|
|
|
(127,020 |
) |
Loss on divestiture
|
|
|
(85 |
) |
|
|
(106,852 |
) |
|
|
— |
|
|
|
(106,937 |
) |
Prior year purchase price adjustments
|
|
|
4,362 |
|
|
|
774 |
|
|
|
— |
|
|
|
5,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2016
|
|
$ |
2,041,795 |
|
|
$ |
639,393 |
|
|
$ |
— |
|
|
$ |
2,681,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2016 |
|
|
2015 |
|
Assets (2):
|
|
|
|
|
|
|
|
|
U.S. Facilities
|
|
$ |
3,382,167 |
|
|
$ |
3,061,519 |
|
U.K. Facilities
|
|
|
2,441,018 |
|
|
|
1,045,922 |
|
Corporate and Other
|
|
|
201,541 |
|
|
|
171,767 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
6,024,726 |
|
|
$ |
4,279,208 |
|
|
|
|
|
|
|
|
|
|
(1) |
Segment EBITDA is defined as income from continuing
operations before provision for income taxes, equity-based
compensation expense, debt extinguishment costs, gain on foreign
currency derivatives, transaction-related expenses, interest
expense and depreciation and amortization. The Company uses Segment
EBITDA as an analytical indicator to measure the performance of the
Company’s segments and to develop strategic objectives and
operating plans for those segments. Segment EBITDA is commonly used
as an analytical indicator within the health care industry, and
also serves as a measure of leverage capacity and debt service
ability. Segment EBITDA should not be considered as a measure of
financial performance under generally accepted accounting
principles, and the items excluded from Segment EBITDA are
significant components in understanding and assessing financial
performance. Because Segment EBITDA is not a measurement determined
in accordance with generally accepted accounting principles and is
thus susceptible to varying calculations, Segment EBITDA, as
presented, may not be comparable to other similarly titled measures
of other companies.
|
(2) |
Assets include property and equipment
for the U.S. Facilities of $1.0 billion, U.K. Facilities of
$1.7 billion and corporate and other of $27.1 million at
December 31, 2016. Assets include property and equipment for
the U.S. Facilities of $832.2 million, U.K. Facilities of
$824.4 million and corporate and other of $52.4 million
at December 31, 2015. |
|