Financial Information for the Company and Its Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Condensed Consolidating Balance Sheets

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

March 31, 2017

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	2,929	$	40,158	$	—		$	43,087
Accounts receivable, net		—		219,325		56,764		—			276,089
Other current assets		—		59,283		45,554		—			104,837
Total current assets		—		281,537		142,476		—			424,013
Property and equipment, net		—		964,605		1,784,933		—			2,749,538
Goodwill		—		1,935,960		747,827		—			2,683,787
Intangible assets, net		—		56,837		26,881		—			83,718
Deferred tax assets – noncurrent		13,692		—		4,548		(14,490	)		3,750
Derivative instruments		59,257		—		—		—			59,257
Investment in subsidiaries		4,942,294		—		—		(4,942,294	)		—
Other assets		490,873		49,539		8,726		(487,411	)		61,727
Total assets	$	5,506,116	$	3,288,478	$	2,715,391	$	(5,444,195	)	$	6,065,790
Current liabilities:
Current portion of long-term debt	$	34,550	$	—	$	255	$	—		$	34,805
Accounts payable		—		66,085		26,588		—			92,673
Accrued salaries and benefits		—		71,053		31,280		—			102,333
Other accrued liabilities		11,656		24,319		70,071		—			106,046
Total current liabilities		46,206		161,457		128,194		—			335,857
Long-term debt		3,223,977		—		510,011		(487,411	)		3,246,577
Deferred tax liabilities – noncurrent		—		28,435		49,913		(14,490	)		63,858
Other liabilities		—		103,897		62,098		—			165,995
Total liabilities		3,270,183		293,789		750,216		(501,901	)		3,812,287
Redeemable noncontrolling interests		—		—		17,570		—			17,570
Total equity		2,235,933		2,994,689		1,947,605		(4,942,294	)		2,235,933
Total liabilities and equity	$	5,506,116	$	3,288,478	$	2,715,391	$	(5,444,195	)	$	6,065,790

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

December 31, 2016

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	15,681	$	41,382	$	—		$	57,063
Accounts receivable, net		—		209,124		54,203		—			263,327
Other current assets		—		61,724		45,813		—			107,537
Total current assets		—		286,529		141,398		—			427,927
Property and equipment, net		—		940,880		1,762,815		—			2,703,695
Goodwill		—		1,935,260		745,928		—			2,681,188
Intangible assets, net		—		56,676		26,634		—			83,310
Deferred tax assets – noncurrent		13,522		—		4,606		(14,348	)		3,780
Derivative instruments		73,509		—		—		—			73,509
Investment in subsidiaries		4,885,865		—		—		(4,885,865	)		—
Other assets		493,294		40,480		7,189		(489,646	)		51,317
Total assets	$	5,466,190	$	3,259,825	$	2,688,570	$	(5,389,859	)	$	6,024,726
Current liabilities:
Current portion of long-term debt	$	34,550	$	—	$	255	$	—		$	34,805
Accounts payable		—		49,205		30,829		—			80,034
Accrued salaries and benefits		—		72,835		32,233		—			105,068
Other accrued liabilities		33,616		24,375		64,967		—			122,958
Total current liabilities		68,166		146,415		128,284		—			342,865
Long-term debt		3,230,300		—		512,350		(489,646	)		3,253,004
Deferred tax liabilities – noncurrent		—		40,574		52,294		(14,348	)		78,520
Other liabilities		—		101,938		62,921		—			164,859
Total liabilities		3,298,466		288,927		755,849		(503,994	)		3,839,248
Redeemable noncontrolling interests		—		—		17,754		—			17,754
Total equity		2,167,724		2,970,898		1,914,967		(4,885,865	)		2,167,724
Total liabilities and equity	$	5,466,190	$	3,259,825	$	2,688,570	$	(5,389,859	)	$	6,024,726

Summary of Condensed Consolidating Statement of Comprehensive Income

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended March 31, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue before provision for doubtful accounts	$	—		$	426,796		$	262,545		$	—		$	689,341
Provision for doubtful accounts		—			(9,214	)		(933	)		—			(10,147	)
Revenue		—			417,582			261,612			—			679,194
Salaries, wages and benefits		7,396			224,430			144,595			—			376,421
Professional fees		—			22,074			21,335			—			43,409
Supplies		—			18,609			9,100			—			27,709
Rents and leases		—			8,511			10,460			—			18,971
Other operating expenses		—			55,031			28,680			—			83,711
Depreciation and amortization		—			15,551			18,062			—			33,613
Interest expense, net		15,368			18,485			8,904			—			42,757
Transaction-related expenses		—			1,438			2,681			—			4,119
Total expenses		22,764			364,129			243,817			—			630,710
(Loss) income before income taxes		(22,764	)		53,453			17,795			—			48,484
Equity in earnings of subsidiaries		46,553			—			—			(46,553	)		—
(Benefit from) provision for income taxes		(10,984	)		21,070			3,625			—			13,711
Net income (loss)		34,773			32,383			14,170			(46,553	)		34,773
Net loss attributable to noncontrolling interests		—			—			185			—			185
Net income (loss) attributable to Acadia Healthcare Company, Inc.	$	34,773		$	32,383		$	14,355		$	(46,553	)	$	34,958
Other comprehensive income (loss):
Foreign currency translation gain		—			—			27,046			—			27,046
Loss on derivative instruments		(5,868	)		—			—			—			(5,868	)
Other comprehensive income (loss)		(5,868	)		—			27,046			—			21,178
Comprehensive income (loss)	$	28,905		$	32,383		$	41,401		$	(46,553	)	$	56,136

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended March 31, 2016

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue before provision for doubtful accounts	$	—		$	402,934		$	224,249		$	—		$	627,183
Provision for doubtful accounts		—			(9,342	)		(1,028	)		—			(10,370	)
Revenue		—			393,592			223,221			—			616,813
Salaries, wages and benefits		6,956			211,033			123,039			—			341,028
Professional fees		—			22,677			17,314			—			39,991
Supplies		—			18,462			8,223			—			26,685
Rents and leases		—			8,577			6,229			—			14,806
Other operating expenses		—			48,849			21,398			—			70,247
Depreciation and amortization		—			12,751			15,224			—			27,975
Interest expense, net		13,433			16,093			8,188			—			37,714
Gain on foreign currency derivatives		(410	)		—			—			—			(410	)
Transaction-related expenses		—			21,435			4,863			—			26,298
Total expenses		19,979			359,877			204,478			—			584,334
(Loss) income before income taxes		(19,979	)		33,715			18,743			—			32,479
Equity in earnings of subsidiaries		40,869			—			—			(40,869	)		—
(Benefit from) provision for income taxes		(4,479	)		7,407			4,182			—			7,110
Net income (loss)		25,369			26,308			14,561			(40,869	)		25,369
Net loss attributable to noncontrolling interests		—			—			319			—			319
Net income (loss) attributable to Acadia Healthcare Company, Inc.	$	25,369		$	26,308		$	14,880		$	(40,869	)	$	25,688
Other comprehensive loss:
Foreign currency translation loss		—			—			(48,415	)		—			(48,415	)
Other comprehensive loss		—			—			(48,415	)		—			(48,415	)
Comprehensive income (loss)	$	25,369		$	26,308		$	(33,535	)	$	(40,869	)	$	(22,727	)

Summary of Condensed Consolidating Statement of Cash Flows

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2017

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	34,773		$	32,383		$	14,170		$	(46,553	)	$	34,773
Adjustments to reconcile net income (loss) to net cash provided by (used in) continuing operating activities:
Equity in earnings of subsidiaries		(46,553	)		—			—			46,553			—
Depreciation and amortization		—			15,551			18,062			—			33,613
Amortization of debt issuance costs		2,500			—			(104	)		—			2,396
Equity-based compensation expense		7,396			—			—			—			7,396
Deferred income tax (benefit) expense		(171	)		2,754			(576	)		—			2,007
Other		2,732			506			587			—			3,825
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net		—			(10,412	)		(2,047	)		—			(12,459	)
Other current assets		—			5,097			789			—			5,886
Other assets		2,927			(1,778	)		68			(2,927	)		(1,710	)
Accounts payable and other accrued liabilities		—			(9,224	)		(7,769	)		—			(16,993	)
Accrued salaries and benefits		—			(1,961	)		(1,476	)		—			(3,437	)
Other liabilities		—			(304	)		2,446			—			2,142
Net cash provided by (used in) continuing operating activities		3,604			32,612			24,150			(2,927	)		57,439
Net cash used in discontinued operating activities		—			(425	)		—			—			(425	)
Net cash provided by (used in) operating activities		3,604			32,187			24,150			(2,927	)		57,014
Investing activities:
Cash paid for capital expenditures		—			(30,018	)		(20,531	)		—			(50,549	)
Cash paid for real estate acquisitions		—			(2,495	)		—			—			(2,495	)
Other		—			(6,531	)		1,480			—			(5,051	)
Net cash used in investing activities		—			(39,044	)		(19,051	)		—			(58,095	)
Financing activities:
Principal payments on long-term debt		(8,638	)		—			(2,927	)		2,927			(8,638	)
Common stock withheld for minimum statutory taxes, net		(4,234	)		—			—			—			(4,234	)
Other		—			(865	)		—			—			(865	)
Cash provided by (used in) intercompany activity		9,268			(5,030	)		(4,238	)		—			—
Net (used in) provided by in financing activities		(3,604	)		(5,895	)		(7,165	)		2,927			(13,737	)
Effect of exchange rate changes on cash		—			—			842			—			842
Net decrease in cash and cash equivalents		—			(12,752	)		(1,224	)		—			(13,976	)
Cash and cash equivalents at beginning of the period		—			15,681			41,382			—			57,063
Cash and cash equivalents at end of the period	$	—		$	2,929		$	40,158		$	—		$	43,087

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2016

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	25,369		$	26,308		$	14,561		$	(40,869	)	$	25,369
Adjustments to reconcile net income (loss) to net cash (used in) provided by continuing operating activities:
Equity in earnings of subsidiaries		(40,869	)		—			—			40,869			—
Depreciation and amortization		—			12,751			15,224			—			27,975
Amortization of debt issuance costs		2,254			—			(107	)		—			2,147
Equity-based compensation expense		6,956			—			—			—			6,956
Deferred income tax expense		—			8,846			239			—			9,085
Gain on foreign currency derivatives		(410	)		—			—			—			(410	)
Other		—			896			(14	)		—			882
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net		—			(13,560	)		9,811			—			(3,749	)
Other current assets		—			(3,596	)		(4,479	)		—			(8,075	)
Other assets		—			(1,992	)		(410	)		—			(2,402	)
Accounts payable and other accrued liabilities		—			7,564			(66	)		—			7,498
Accrued salaries and benefits		—			6,388			(12,735	)		—			(6,347	)
Other liabilities		—			4,416			(4,062	)		—			354
Net cash (used in) provided by continuing operating activities		(6,700	)		48,021			17,962			—			59,283
Net cash used in discontinued operating activities		—			(619	)		—			—			(619	)
Net cash (used in) provided by operating activities		(6,700	)		47,402			17,962			—			58,664
Investing activities:
Cash paid for acquisitions, net of cash acquired		—			—			(580,096	)		—			(580,096	)
Cash paid for capital expenditures		—			(64,272	)		(25,817	)		—			(90,089	)
Cash paid for real estate acquisitions		—			(2,998	)		(11,801	)		—			(14,799	)
Settlement of foreign currency derivatives		—			745			—			—			745
Other		—			(1,208	)		—			—			(1,208	)
Net cash used in investing activities		—			(67,733	)		(617,714	)		—			(685,447	)
Financing activities:
Borrowings on long-term debt		1,480,000			—			—			—			1,480,000
Borrowings on revolving credit facility		58,000			—			—			—			58,000
Principal payments on revolving credit facility		(166,000	)		—			—			—			(166,000	)
Principal payments on long-term debt		(13,669	)		—			—			—			(13,669	)
Repayment of assumed debt		(1,348,389	)		—			—			—			(1,348,389	)
Payment of debt issuance costs		(34,167	)		—			—			—			(34,167	)
Issuance of common stock		685,097			—			—			—			685,097
Common stock withheld for minimum statutory taxes, net		(6,679	)		—			—			—			(6,679	)
Other		—			(224	)		—			—			(224	)
Cash (used in) provided by intercompany activity		(647,493	)		35,637			611,856			—			—
Net cash provided by financing activities		6,700			35,413			611,856			—			653,969
Effect of exchange rate changes on cash		—			—			(1,819	)		—			(1,819	)
Net increase in cash and cash equivalents		—			15,082			10,285			—			25,367
Cash and cash equivalents at beginning of the period		—			1,987			9,228			—			11,215
Cash and cash equivalents at end of the period	$	—		$	17,069		$	19,513		$	—		$	36,582