Financial Information for the Company and Its Subsidiaries (Tables)

3 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Condensed Consolidating Balance Sheets

Acadia Healthcare Company, Inc.

Condensed Consolidating Balance Sheets

March 31, 2019

(In thousands)

	Parent		Combined Subsidiary Guarantors		Combined Non- Guarantors		Consolidating Adjustments			Total Consolidated Amounts
Current assets:
Cash and cash equivalents	$	—	$	17,843	$	25,841	$	—			$	43,684
Accounts receivable, net		—		268,956		62,895		—				331,851
Other current assets		—		55,472		21,507		—				76,979
Total current assets		—		342,271		110,243		—				452,514
Property and equipment, net		—		1,263,982		1,909,070		—				3,173,052
Goodwill		—		1,989,900		452,099		—				2,441,999
Intangible assets, net		—		57,994		31,802		—				89,796
Deferred tax assets		2,094		—		3,436		(2,094	)			3,436
Derivative instrument assets		46,304		—		—		—				46,304
Investment in subsidiaries		5,340,603		—		—		(5,340,603	)			—
Operating lease right-of-use assets		—		98,419		408,368		—				506,787
Other assets		284,470		58,157		9,755		(280,753	)			71,629
Total assets	$	5,673,471	$	3,810,723	$	2,924,773	$	(5,623,450	)		$	6,785,517
Current liabilities:
Current portion of long-term debt	$	36,503	$	—	$	—	$	—			$	36,503
Accounts payable		—		80,486		36,180		—				116,666
Accrued salaries and benefits		—		77,320		31,226		—				108,546
Current portion of operating lease liabilities		—		17,040		10,944		—				27,984
Other accrued liabilities		11,916		35,492		87,564		—				134,972
Total current liabilities		48,419		210,338		165,914		—				424,671
Long-term debt		3,221,709		—		280,753		(280,753	)			3,221,709
Deferred tax liabilities		—		28,636		50,380		(2,094	)			76,922
Operating lease liabilities		—		78,042		426,711		—				504,753
Other liabilities		—		102,787		19,401		—				122,188
Total liabilities		3,270,128		419,803		943,159		(282,847	)			4,350,243
Redeemable noncontrolling interests		—		—		31,931		—				31,931
Total equity		2,403,343		3,390,920		1,949,683		(5,340,603	)			2,403,343
Total liabilities and equity	$	5,673,471	$	3,810,723	$	2,924,773	$	(5,623,450	)		$	6,785,517

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 March 31, 2019

(In thousands)

	Parent			Combined Subsidiary Guarantors		Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	459,818	$	300,799		$	—		$	760,617
Salaries, wages and benefits		6,101			254,942		168,536			—			429,579
Professional fees		—			25,368		31,639			—			57,007
Supplies		—			19,384		10,573			—			29,957
Rents and leases		—			8,403		11,904			—			20,307
Other operating expenses		—			59,390		34,475			—			93,865
Depreciation and amortization		—			19,605		20,975			—			40,580
Interest expense, net		19,578			23,018		5,534			—			48,130
Transaction-related expenses		—			3,218		1,103			—			4,321
Total expenses		25,679			413,328		284,739			—			723,746
(Loss) income before income taxes		(25,679	)		46,490		16,060			—			36,871
Equity in earnings of subsidiaries		48,157			—		—			(48,157	)		—
(Benefit from) provision for income taxes		(7,033	)		17,065		(2,672	)		—			7,360
Net income (loss)		29,511			29,425		18,732			(48,157	)		29,511
Net income attributable to noncontrolling interests		—			—		(40	)		—			(40	)
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	29,511		$	29,425	$	18,692		$	(48,157	)	$	29,471
Other comprehensive income:
Foreign currency translation gain		—			—		44,481			—			44,481
Loss on derivative instruments		(8,690	)		—		—			—			(8,690	)
Other comprehensive (loss) income		(8,690	)		—		44,481			—			35,791
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	20,821		$	29,425	$	63,173		$	(48,157	)	$	65,262

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Comprehensive Income (Loss)

Three Months Ended March 31, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Revenue	$	—		$	435,625		$	306,616		$	—		$	742,241
Salaries, wages and benefits		6,919			239,052			165,557			—			411,528
Professional fees		—			24,271			29,747			—			54,018
Supplies		—			18,712			10,652			—			29,364
Rents and leases		—			8,239			12,049			—			20,288
Other operating expenses		—			56,170			32,061			—			88,231
Depreciation and amortization		—			18,172			21,601			—			39,773
Interest expense, net		14,617			23,584			7,042			—			45,243
Debt extinguishment costs		940			—			—			—			940
Transaction-related expenses		—			4,009			759			—			4,768
Total expenses		22,476			392,209			279,468			—			694,153
(Loss) income before income taxes		(22,476	)		43,416			27,148			—			48,088
Equity in earnings of subsidiaries		67,598			—			—			(67,598	)		—
(Benefit from) provision for income taxes		(5,752	)		(123	)		3,089			—			(2,786	)
Net income (loss)		50,874			43,539			24,059			(67,598	)		50,874
Net loss attributable to noncontrolling interests		—			—			(55	)		—			(55	)
Net income (loss) attributable to Acadia    Healthcare Company, Inc.	$	50,874		$	43,539		$	24,004		$	(67,598	)	$	50,819
Other comprehensive (loss) income:
Foreign currency translation gain		—			—			92,780			—			92,780
Loss on derivative instruments		(20,053	)		—			—			—			(20,053	)
Other comprehensive (loss) income		(20,053	)		—			92,780			—			72,727
Comprehensive income (loss) attributable to Acadia Healthcare Company, Inc.	$	30,821		$	43,539		$	116,784		$	(67,598	)	$	123,546

Summary of Condensed Consolidating Statement of Cash Flows

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2019

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	29,511		$	29,425		$	18,732		$	(48,157	)	$	29,511
Adjustments to reconcile net income (loss)    to net cash (used in) provided by continuing    operating activities:
Equity in earnings of subsidiaries		(48,157	)		—			—			48,157			—
Depreciation and amortization		—			19,605			20,975			—			40,580
Amortization of debt issuance costs		2,888			—			—			—			2,888
Equity-based compensation expense		6,101			—			—			—			6,101
Deferred income taxes		(254	)		(678	)		266			—			(666	)
Other		1,993			253			(59	)		—			2,187
Change in operating assets and liabilities:
Accounts receivable, net		—			(15,693	)		3,713			—			(11,980	)
Other current assets		—			(5,484	)		(391	)		—			(5,875	)
Other assets		2,665			(353	)		648			(2,665	)		295
Accounts payable and other accrued liabilities		—			(7,100	)		(8,601	)		—			(15,701	)
Accrued salaries and benefits		—			(7,872	)		2,023			—			(5,849	)
Other liabilities		—			3,317			(1,135	)		—			2,182
Net cash (used in) provided by operating activities		(5,253	)		15,420			36,171			(2,665	)		43,673
Investing activities:
Cash paid for acquisitions, net of cash acquired		—			(40,400	)		—			—			(40,400	)
Cash paid for capital expenditures		—			(45,231	)		(24,017	)		—			(69,248	)
Cash paid for real estate acquisitions		—			(1,066	)		—			—			(1,066	)
Other		—			521			92			—			613
Net cash used in investing activities		—			(86,176	)		(23,925	)		—			(110,101	)
Financing activities:
Borrowings on revolving credit facility		71,573			—			—			—			71,573
Principal payments on long-term debt		(8,246	)		—			(2,665	)		2,665			(8,246	)
Common stock withheld for minimum statutory taxes, net		(1,327	)		—			—			—			(1,327	)
Other		(2,375	)		(442	)		(680	)		—			(3,497	)
Cash (used in) provided by intercompany activity		(54,372	)		56,570			(2,198	)		—			—
Net provided by (used in) in financing activities		5,253			56,128			(5,543	)		2,665			58,503
Effect of exchange rate changes on cash		—			—			1,099			—			1,099
Net (decrease) increase in cash and cash equivalents		—			(14,628	)		7,802			—			(6,826	)
Cash and cash equivalents at beginning of the period		—			32,471			18,039			—			50,510
Cash and cash equivalents at end of the period	$	—		$	17,843		$	25,841		$	—		$	43,684

Acadia Healthcare Company, Inc.

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2018

(In thousands)

	Parent			Combined Subsidiary Guarantors			Combined Non- Guarantors			Consolidating Adjustments			Total Consolidated Amounts
Operating activities:
Net income (loss)	$	50,874		$	43,539		$	24,059		$	(67,598	)	$	50,874
Adjustments to reconcile net income (loss) to    net cash provided by (used in) continuing    operating activities:
Equity in earnings of subsidiaries		(67,598	)		—			—			67,598			—
Depreciation and amortization		—			18,172			21,601			—			39,773
Amortization of debt issuance costs		2,626			—			(101	)		—			2,525
Equity-based compensation expense		6,919			—			—			—			6,919
Deferred income taxes		942			1,104			(149	)		—			1,897
Debt extinguishment costs		940			—			—			—			940
Other		794			315			(66	)		—			1,043
Change in operating assets and liabilities:
Accounts receivable, net		—			(21,049	)		2,256			—			(18,793	)
Other current assets		—			(7,980	)		(5,236	)		—			(13,216	)
Other assets		4,432			(1,305	)		37			(4,432	)		(1,268	)
Accounts payable and other accrued liabilities		—			(11,417	)		8,049			—			(3,368	)
Accrued salaries and benefits		—			5,208			(406	)		—			4,802
Other liabilities		—			1,204			(695	)		—			509
Net cash provided by (used in) continuing operating      activities		(71	)		27,791			49,349			(4,432	)		72,637
Net cash used in discontinued operating activities		—			(287	)		—			—			(287	)
Net cash provided by (used in) operating activities		(71	)		27,504			49,349			(4,432	)		72,350
Investing activities:
Cash paid for capital expenditures		—			(40,879	)		(29,448	)		—			(70,327	)
Cash paid for real estate acquisitions		—			(4,293	)		—			—			(4,293	)
Other		—			(4,799	)		733			—			(4,066	)
Net cash used in investing activities		—			(49,971	)		(28,715	)		—			(78,686	)
Financing activities:
Principal payments on long-term debt		—			(169	)		(4,263	)		4,432			—
Common stock withheld for minimum statutory taxes, net		(2,030	)		—			—			—			(2,030	)
Other		(1,742	)		(962	)		—			—			(2,704	)
Cash provided by (used in) intercompany activity		3,843			1,950			(5,793	)		—			—
Net (used in) provided by in financing activities		71			819			(10,056	)		4,432			(4,734	)
Effect of exchange rate changes on cash		—			—			1,588			—			1,588
Net increase (decrease) in cash and cash equivalents		—			(21,648	)		12,166			—			(9,482	)
Cash and cash equivalents at beginning of the period		—			46,860			20,430			—			67,290
Cash and cash equivalents at end of the period	$	—		$	25,212		$	32,596		$	—		$	57,808