Acadia Healthcare (ACHC) 30 Oct 202020 Q3 Earnings call transcript

Please standby, we are about to begin.

As a reminder, this call is being recorded. Please proceed.

Good morning and welcome to Acadia's Third Quarter 2020 Conference Call. I'm Gretchen Hommrich, Director of Investor Relations for Acadia. our Chief before Executive with over the you our to Officer, provide Safe turning Harbor call I'll Debbie Osteen. any will release Investors reconciliation on our extent today's under financial measure the the the non-GAAP by to is comparable measure To GAAP according discussed most call, directly you that viewing also link. of a website calculated find measure to financial in yesterday's news statements XXXX, This Litigation within statements, may conference forward-looking the Securities Acadia's of contain the XXXX and regarding annual Reform of others, beyond. Act and financial including for meaning among Private quarterly call expected performance

For believes, this be any made plans, expressions similar anticipates, to the to forward-looking historical of that during this limiting purpose, expects not forward-looking and statements are deemed intended statements. statements may are statements. words be identify the fact Without call foregoing,

new opening the future At turn The company in undertakes be of any forward-looking over results You're Officer, or no events by in Exchange the remarks, for to in filings hereby differ with statements affected the set the I'd whether and materially news results actual the may call operations important forward-looking like and this company's Osteen. a conference result statements that to and time update otherwise. as Executive Debbie forth obligation these among statements. others release, publicly and Acadia's the information, from cautioned Securities to consequently, discussed third quarter may factors, Commission Chief

Duckworth, results members our about quarter David being us third Good will financial I'm some XXXX team. Officer, and Chief year. morning the today and with third and and of our provide conference today for and call. other thank operating quarter remarks management I our for David here executive with you for Financial

third questions. your pleased then performance the our for and were for very will open the with quarter. solid call financial We operating We

and continued for employees Acadia's challenging into thank Before during support care on providing all to their the patients clinicians, we the get focus and of and the these quality their family, results, dedicated relentless our especially highest want I times. to

to operations, work an our and fortunate cost. tirelessly manage on are effectively have growth team We continue who strategy across to to experienced execute our

concern. affect are our the as behavioral lives, healthcare global for quality supporting continue by all and to the leading all, services, anxiety mindful especially for behavioral care The our And societal and demand with already of to provider our and Above critical those health a economic addiction our we in concern added continues pandemic patients services. pandemic. role a ongoing provided struggling remains priority to uncertainties contribute top caused As isolation manner. with safe and and the our of accessible

with such both for opportunities strategy we U.S. U.K. we Across continue And operation about volumes. results. and As Acadia. our solid optimistic ahead driven to the strong are thought results we importantly, solid execute the by

revenue return range. to day expected In our addition, per our normal

intrinsic for We quarter During over strength topline services. result the and the indicative is prior X.X% experienced third we behavioral year, growth for up health this with demand reflecting robust believe revenues services. of demand our strong our the

U.S. continue can treatment seeking resilient we of deep to patient the X.X% needs environment. line, solid sub-confuse that issues. for to the sources. the we is is same facility will compared mental prior demand acute rapidly referral remain changing and of attributable our of by our days year. is business increase. And response to to volume for This current have despite service Within our robust has network this that In seen demonstrated address Acadia We demand have increase consistent a environment. model those services our to health well-positioned a expect the

capacity message and our access closely Our that wellness use help. to to checks, order the telehealth referral In to crisis and points, we our continue expertise reinforce additional care and patients, family with sources our reach capabilities, hotline. to the their patients, were we teams have

to service markets, shifting the were those pleased local specialty strategies By our and specialized on line, very provide. For we were reach focus we that in our able to to stabilization regional we that marketing our see need services volumes.

During sequential we to due saw being also to travel. more out-of-state our improvement the patients quarter, in referrals willing

referring to our Volumes solid These not leverage our serve the conditions. and adolescents children with we've with quarter. behavioral agencies prior in service RTC yet However, seen line relationships referrals levels. in remained returned state facilities to year

day continue. we we trends we As volumes, X%. and our and result, continue patient the both our line, per increased that as in same as CTC X% experience solid This to to X.X% reflects U.S., In rate remain our service had of the increases patient demand the quarter, third solid. to expected year-over-year in to prior revenue the annual year. coverage expect range also day, facility compared third quarter, a growth In throughout strong

outpatient normalized improvement our As and revenue. reimbursement well CTC in as

impact the CARES reversal from the million. income the of Excluding Act $XX.X of

same Our basis improved to margin points EBITDA facility XXX XX%.

efforts are we've efficiencies XXXX. measurable We improvement XXXX cost implemented operating our in in and and realizing management that

We costs. continue to proactively manage staffing and other

FTE volume a team timely utilize in tools reduce facility to last decisions our response did year job to FTEs And the in our level. returned declines to making at to patients Our at implemented facilities, as volume. monitor the great higher we

are focused on what determining very essential. evaluating every is expenses position and team Our

which throughout pre have the have reflecting quarter, last a levels a monthly pleased from revenue per improvement in quarter volumes COVID implemented early year-over-year with. patient balanced revenue We we approach flat X.X% third increase support facility appropriate patient day to surpassed X.X% increased We July, resources were U.K., our and in third same year, and the our In a patients. volumes. we to ensure day the saw sequential

mental We from in treatment. health expect to see requiring continued and growth in addiction individuals the U.K., demand

service in to labor improvement costs need our the third We was with the the We referral with improved the the meet flat percentage sequential a and as our quarter lines. to from XX.X% labor we third the costs to of total labor the a also cost to work points quarter in our third U.K. of quarter basis of of third sources across services pleased to XX.X% And in expected continue other and Agency from quarter well-positioned in align XXXX quarter of for to labor to Total NHS total in were of compared as XXXX. as third XXXX. quarter, XXX XX.X% demand. are this percent XX.X% see revenue second XXXX improved

all for lines. demonstrates We we their an X.X% we NHS providing support are the and negotiations important fiscal our believe year. the local rate care for During finalized average of received for the service quarter, this our also increase of increases across the We with patients. payers that rate

potential regarding process As we have we business. disclosed, sale the U.K. our relaunched of recently formal the

we objective conjunction maximizing nature, Our advisors, with this bidders. be U.K. our have of non-binding and from our solicited to our now for shareholders. value business Consistent continues transactions acquire received offers in U.K. and market with for have multiple practice to

to As financial the sales update our we with appropriate. work we and and it will advisors, legal process is the determined as we continue when market on

strategic future to bed service U.S., in make reach our to and opportunities. our the continue expansions, additional growth market in We investments expanding

fourth existing U.S., quarters three our of facilities quarter. first approximately we the have expect to in and XXX the XXXX, added beds in add XXX For to we the beds

in of the Pennsylvania our As behavioral we and strong track have venture for across facility systems which in opened July. opportunities health hospitals partnering growth with has health record bed continued our Reading, country, Tower Health, created Acadia. our with strategy, we part Along joint of important partner XXX

We quarter. patients markets, expect to well open de hospital in a venture the position for our market with existing novo our growth fourth of Together the bed expansions, more as growth new opportunities Thomas new joint facilities and as provide further Saint and Ascension the our in reach during and to joint ventures Nashville Acadia in business. advance many

will Acadia of a the the believe play are uncertainties the people we to meeting many forward, pandemic. needs critical with in role struggling who related Going

We leading patient our care behavioral we deliver the advance of objective care operator. health and our quality reach our facilities position primary highest to will focus to a as as continue extend market on

will over turn discuss David in Duckworth more financial detail. to I Now, to results the call our

additional million was million of Results quarter $XXX.X XXXX. morning. Debbie third a $XX.X established final Fund The HHS. and quarter received income include Relief Company's quarter compared additional accrued other review recorded the XXXX balance company $XX.X Thanks, of total Act. Provider Relief by These million, million. million good third Provider distributions cumulative of in second on the pending the and to of $XX.X the on Revenue third HHS related XXXX, Fund the quarter of Company's in Company's September distributions approximately liabilities with guidance guidance. from in reversal third at XXXX received XX, general sheet decision has the The quarter now this $XXX.X CARES income in the of the reverse for for of other the are the of issued for XXXX based distributions recorded was to by

Excluding million quarter XX.X% stockholders additional effect of per managing income attributable Company's third $X.XX the for related for the and I'd on was cents the quarter was million Adjusted diluted the you per consolidated third adjusted some or act a XXXX of like the or on $XX.X of of strategic adjustments million, the share, impact million reversal $X.X compared Acadia diluted perspective with or quarter to diluted $XX.X to per share and improving expenses income XXXX EBITDA the of loss income or income tax into our $XX.X of impairment the Net from $XX.X million, CARES income XXXX. margins. third of quarter give attributable for $X.X of $XXX.X revenue. of $X.XX million. focus of million, $XX excluding income share third costs was net for to an Acadia transaction stockholders million, of $X.XX XXXX, of to

pleased have with said, we to steps make strategic the the while to are operations, continuing Debbie months streamline As we XX investments. our past taken

following to savings $X.X XXXX rate quarter strategic We And we track results end million year. of implemented savings of cost $XX the Our run initiatives a cost savings to third achieve review of by relating the track, recognize are on the as last on the initiatives. third are by quarter. our our for in evidenced the million year

XX, sheet million business. we million to approximately credit balance and our to September revolving to XXXX, in equivalents and balance liquidity had strong $XXX with $XXX remains availability our invest cash our under full cash At and grow facility. in continue sheet, our capital Turning and ample

cash reflects Our third operating robust of cash quarter million. a $XXX position with flows

debt cash Our a we was benefits improved capital with perspective, strong growth, the CARES in transactions. structure profile increase driven and our positive trends from earnings working two capital our maturity Act. by From recent

redeem to $XXX and to call, that the net used a the to X.X% issued on due in In for loan quarter put the notes use financial due a these and term proceeds us proceeds were under notes notes senior XXXX. capital million, initiatives we $XXX we senior offering million, second XXXX, borrowings from of XXXX cash and in issuance XXXX, management our due existing and prepay beyond. mentioned finalize this have outstanding and XXXX, a our due Senior October, XXXX. and net X% in As were relating Together, be the structure facility position expense strong the

will in costs while strategic patients. ongoing the our We to the continue meet our make to investments needs aligning of business

and in in financial range EBITDA guidance adjusted $X.XX share providing as in of the Turning revenue a million a follows; to range of range press in to a our are $XXX diluted million for noted as we million quarter $X.XX. per earnings to million, of to our $XXX fourth and guidance, adjusted $XXX $XXX release,

and remain November our factors While could results. cautious that December impact we regarding

positive essential U.K. and Our fourth represents revenue are the believe and U.S. our nature seeing of services trends we We we in quarter guidance the expectations the cost our given management's provide, operations. of This strong floor open the morning. your now for beyond. our remarks the this concludes ask will demand growth with prepared drive remainder questions. to for Lauren the I will and combined year

Instructions]. from Tanquilut Jefferies. Thank Brian you. with We'll take question first our [Operator

you've recovery, of volumes. not on my levels of question very but just the sounds on and I quarter. a like the some still we're morning. good back bit there's yet good seen to It Congrats recovery is Debbie, guess quite good pre disruption. Hey, COVID first

think as are gains thinking share And into into to trends growth going right market in saw the should how the go and just So strong carry growth that over next industry secular QX it you the see QX into is to you and XXXX. is about year? that we

overall, travel certainly did patients have robust far very services. we in than I lines. we really Brian, Well, the exceeding of for last saw think across our were those pre-COVID. to and volumes where strong we comment year, my relates acute and more about very specialty And all But our pre-COVID volume is service area,

this visibility very grow business, as trends, and consistent We U.K. think, -- has have the overall, mentioned see CTC, is and actually RTC our payer the highest my which And the continuing October to favorable I I well we've Acadia throughout now we is the think through history of continued volumes also, we But maintained in hit some both, the census improvement census in which almost October. volume, I are and as in the think in U.S. also in in remarks. I in to

we lines the such we this fact that that just of in continue XXXX. is and to So really because strong this going believe that trends, service the demand have diversity into

and suicide that read from I now. with that, think But And with I cope are about they're that just we're attempts, anxiety demand. going the seeing And depression other I think exploding. continue into just and to we to to as those added think resurgence, XXXX be I this. think do people I trends as the suffering it's mean, individuals in

demand. all that seeing good our lines really in reflected the think this that's feel third quarter. what's service I of And we so, And are

that just do Now, else timing? you that on process, in gave us the you us. is there U.K. And guess share And the then I the color is makes with anything sense. question can thanks to for what left I is, with process? have sale the

to in lot remarks, we that of have mentioned we do as been Well, around as detail that be have submitted. to interest that. will possible. is going I that, say interest to And move not continuing We're initial strong. Priory, events in be commenting have buyer as I our on But we're remain quickly and a going there certainly,

this detail progressing. more and giving it's be is we'll around so, how appropriate also timing, And as just

you. Awesome. Thank Alright.

Thank you.

from Our with next question comes Ralph Citi. Jacobi

Thanks. Good morning.

for more the and to in volume pricing thoughts the assumptions, both guidance And underlying hoping of of this early at guess I Just quarter the of you if willing can give point, on the sort of a give sort at little of then, side fourth all XXXX. terms equation. the you're maybe

pretty a around Sounds the optimistic of like some opportunities. growth

we do perspective think XXXX frame XXXX? or about modeling So from how that baseline the of that off either a or maybe Thanks.

year-over-year of our mid this and fourth on our X%, on do even underlying guidance, of with quarter are to revenue guidance level single an growth the we of around be a with more deal we per trends we've U.S. digit, in the revenue growth approach continuation consolidated X% quarter, include a we cost cost initiatives contribution the that and stronger, basis. taking all, some of expect day segment, In a that ongoing continuing fourth we key And revenue first actions we to the XXXX. the XX% implemented we and increasing projecting from per range just a to And well obviously, in Ralph, have are management potentially for trends trends we're Yes. XXXX, seasonality savings as resurgence. identified seeing see but see but to as EBITDA in volumes the around the X% that than have also cautious growth. day on in U.S., revenue both two positive

the the we the in to seen U.K. to and to we've over months, census have improved. metrics will initiatives. well both costs those expect the So, continue sequential in all reflect as to continue of see several improvement, which see the labor segment, U.K. And that. those believe of past And pricing, in as margin our the all that expect strands recently

we positive seasonality the do reflect a in But quarter. we that does see typically for guidance our very the mentioned, quarter. outlook fourth I have As

year mentioned will around into we we We trends, demand, will next do, provide going have the typically opportunities minute more we the February, but thoughts growth XXXX the Debbie we continue. as in as think ago, that -- that a volume

maybe enough. Fair, Any Alright. this how increases? maybe you rate You're guess, the finding wage give are labor specifically fair at challenges, follow-up. U.S. just in kind and this having And I environment? Okay. Thanks. of staffing backdrop the then to point,

we really the any really disruption availability or have I not the cost Sure. had or significant of our mean, in staffing. change

closely right our I want health are the think the that. And we we staff an available. to certainly of monitoring we we that, around have had haven't employees. ensure But issue

the think that, the is peaked March, self I at in isolating early end certainly April. number the U.K., there of employees the of

U.K., see a staffing environment -- had we access, might that in they that the care, economic think provide the I not lower in We levels opportunities perhaps is sure U.S. disruption other from certainly of I those really and And but think seen U.S. in the there. really make using to in staff focus industries, staff them general have some that. the they've U.K. have to haven't for our turnover come And program individuals utilize It we're for just seek we've same, to able think here and appropriately. down. the know, have But So the do And started continued to I a we here trained in lot might the are been in industry. overall, think us there. employment health manage their in the industry U.S. just I that preceptor that that been we not

Thank helpful. you. Very Okay.

Our Pito with comes next Chickering from Bank. Deutsche question

seeing what all COVID U.S. have don't COVID? seeing that questions. If in core you business? I'm for COVID seeing that demand, just A On areas or areas? your couple impacting about guys. you're talk Can morning, you weaknesses spikes on how you questions curious or is have geographic -- talk Good about across strong taking you're segments. Thanks for here. my demand are

through think out several of access like to I think And our the care. now field and but the field, able job also this individuals we've really months. more sure in have that been I have that COVID, hotspots in that an for making handling just leadership areas done are amazing that the staff the seen

more medical I we out treatment. their So in have been they we think putting are we around than if might that they facilities unit we've have some a we done another that on But And very individuals continued we've overall, procedures positive isolate would have are them. very, impacted did COVID, if them have we come we them that solid others. severe, is then, suspect diagnosed a move to But of with But if become of our settings. test. patients. And flow certainly more they're continuing see what symptoms

a We are our There facilities -- that substance may be admissions. haven't higher volume more know, there few COVID. stopped I of use saw

of there market just keeping we And of We services, the because resurgence slowing just stopped has that's we're access ease. about we and into a cautious right But we're to no it that the how those our being from make coming a on than very seems was wanted with some resurgence very to now more one important patients. and careful so little now. and to we sure making just that may there handled focused was hospital. varies then really were be And sure ever but feel like admissions,

at And so on I lower bid share about U.K. with how U.K., for strong. then you for to gotten Is pricing and though revenue time, length you on said highest also the And the was the want in margins? higher It same it we business? could to on impact you've Okay. the NHS think have anything looks that And the pricing that then far the admissions the guess, its XXXX. X.X%. how emissions been comments, stays. as due higher some on short-term of per U.K.,

try Good there.

U.K. pandemic. part the payers with the in of that revenue year per There interim rate about the The being I'll day, Yes. some earlier start our question. we talked with first increases there. given

an our And we the rate typically for that work X.X% has process our on it receive been year that across average XXXX perspective, a in expectation From commentary payers, pre-COVID increase. recovery that strong that of And So that That the getting around That the third early is in now our we April. year does really the XXXX managing the level X.X% in days, represent of to see our the And patient forward. volume is services. our X% a through we the what in through received have range basis quarter. negotiations impact reflected a But around pandemic going in the length it saw rate to our second we did of increase. the back is increase. is in reflected have that's considering, volumes we that shorter in stay XXXX strong to over quarter.

bonds, U.K. U.K. continuing we're volumes in are pleased of the and service across really the the well-positioned We all very with think the for demand

take to I'll our is Pito, last that's it's objective And detail updates on. But bids. we around will an any again provide appropriate. what question. on I'll We're the when initial that, just update provide to focused your And going But not we're value. say maximize additional

a one, let act. you right, in because guys quarter I quarter margins if step again, then the third have you guess only Fourth we be answer in third margin It assuming that And me curious, saw CARES you is act? versus a excluding do to decline. excluding about down looks points, looks one quarter than on of sequential from XXX what the basis return in the more my fourth perspective, CARES sort math saw quarter be a to different follow-up one. ask Okay.

do in quarter. We a the Yes. strong margin project fourth

do down XXX business, type our right a see step we you of occupancy, the think a Thanksgiving the lower quarter year. And typically point to third the fourth If of between the end especially in Holidays, mainly XXXX. Christmas see. improvement U.S. quarter the seasonality We a relates over basis from about that at we see

to potential it the a lines caution, effect may reflects have And as in that have quarter. just that we've have so want margin seen the service margin many resurgence mentioned we as in does that we somewhat We the bit think for in certain We so that'll little a years be about far volume and and experience for October, But some in thinking positive. been the it reflected And the cautious. be trends markets. of very seasonality. strong different

continue Pito, margin, the that that's show improvement quarter. the So to does the reported we in year-over-year third

much, quarter. so this Thanks guys Great.

you. Thank

next America. from Kevin with question Fischbeck And Bank of comes our

Good morning. Thanks is Joanna Kevin taking This for Gajuk filling for today. question. the

first quick follow a one one, So actually up. on

So did coming I bonds right? about right hear talk you also outpatient back,

Yes.

Okay.

did have it We see in not level at in but we was the been, It's Joanna. that increase an the outpatient, it's than much better quarter. second

sense. Okay. that. you on saying of clearly confirm that heard I I lines. on just pricing it to I the business another then was the That makes Because outlook. want across piece -- And guess

quarter last any the know have anything there? on the is not mentioned particular states? you anything I but that that Anything change Medicaid seen pressure, rate watching you you're So call

excluded those and And cuts just And facility are recognition services, were we think point I and We provider. recently was have was right health at There which now. this value state one any the as aware cut also X%. demonstrates one of especially their by support rate Nevada. really of that this But their not state changes cuts the from from of the the States. we the rates or a they from mental

and think -- our be in increased the with the of believe states. just general, but we're We are in. that are XX And we going services and supportive our -- the we and payments. monitoring demand state diversity that, that I to climate payers then believe We're each in

commentary and Okay. increased talking And you pandemic Or of labor, I Are spiking results the you if have But because anticipating saying, the outlook this in October. you're that. also, follow-up the to the And not cost enough the also, any our for demand if you kind see demand? about the pressure. the serve you in about can of preparing increased about you're labor question sort some of strength on of demand? of given will you struggling with people are seeing

just see. strong adding new being opening and appropriately of and a We on beds, that record, growth a to facilities the have based experience add lot we staff able volume track

are just have focus team, challenges being our on growth. we able So a we recruit anticipating there. It and for to strong any is the staff of and record not a

Okay. you said retooling question you talk then That's the also which And bed. on pretty still in last U.K., the trends it, about there. the the positive great. And of you've seeing past,

if there's there's logic anything it's know probably don't process. disruption that's pandemic there, to with happening and the or been complete, suspect I I some maybe So the

So kind Thank any on update you. of that?

are And our retooling. the continuing that reopen our majority year. end to the the We with by of about we of on track beds talked we're

we from retool throughout I see And think to have these we're continue beds are opened that year to the beds. the going contribution think being that, used. I positive those

But contracts. I certainly I one to we I with beds we see block the given is that think starting actually surge more as think that the those messages NHS they is to back the of are and have. as this NHS well that demand, think are has utilizing retool strong existing beds as willing beds

and whether that U.K. And is certainly them. that they really a the growing. paying is of comfort And are they patient bed a for available. to So beds insurance it in demand without really them I that as think for part is regard have is in

So think said we retooling were our is we what we And timely. do. we're going to track for very on

Thank so Great you much.

Raymond comes John James. Ransom question next from with Our

me? hear you Can Hey.

Yes. Good morning.

morning. Good

Alright. new these and operating wireless them. I've things at fancy terrible got I'm headset

of I ask answer. So as diligence pulmonary ask as kind gotten to if data you the But was want and beds. Are finished a face? this we something soliciting comments to into going beds? And maybe your could And Pito, nervous. you you've we're understand on U.K. you not little now go, and should due I'm --

offers we and other where We and valuation. that, are moving don't the update forward and stand much have timing on really non-binding have through of received the an regarding John, than process

any receive more offers. to expect don't You

got you've process. to any So just you get working expect offers through that

that So that what you way said? think about

providing commented earlier. on than what not We're specific updates more we

a guess of things XQ, off Taking a next seasonality year? for we think jumping adjust think I Alright. we cuts. if million what XXXX, for had XX terms other in cost you've should for about point about

maybe about So should just XQ net we million in kind think new say there? XXXX that should else $XX we we as out as look of our at Anything numbers pulmonary get for XXXX. we

the the that realized that first we John, we will trends next obviously million than as think there. we $XX I that, XXXX. continue, lot achieved to And comparison year because half as the savings said will think will assumption year. it interesting second next of an a by move be that of But the half we have positive reflected think this in around Other be of earlier. year, I is

Right.

cases are numbers your diversified I'm have presenting think still ER? about visits patients about XX%. were yet Or referrals, at circle up? square of are from? Emergency sources So your your to the it ER, health of U.S. obviously, stay Rooms And ERs we be the as is some down, referral acute that where coming just and down big ER numbers you Because short trying the are mental business, your So these sources? traditionally might and

our Sure. I to referrals seen mean, really ER normal. return we have

afraid stay ERs are And well are sources other we've substance there not use at So, at referral patterns. care. seeking think are also to have going they a mental I are guess, if And seen this. home of normal orders really and think markets referrals during normal are I have diversified this that they might the a referral services most and that in individuals They getting seek return we as we, are health or of the the care. level. that been to going did the But to think our we ER. served about But we've patients that needing on hand, through

Great. the expenditure, cadence think any Last doing because of XXXX, again, me. the capital to on other kind changed reason one or years? past rhythm we as factors? been growth about over still be of that is from think that David, layer same we your there CapEx you've at or of should amount would COVID So all few

in should think do We Yes. you similar number. layer a

see around a partnerships. going in growing February. through in project budget. with opportunity now right have project ventures and detailed do our And around are our We joint more connection guidance projection we'll We that by our

grow. that be level as And looking could year. this will similar that we've the it part, so most thing investment that's for seen a potentially at is what But of one we

much. so Thanks

Thanks, John.

Thank you.

our take with next question We'll Taylor JPMorgan. from Gary

assumption CARES Act your guidance? fourth Great quarter good quarter. morning. Hi, Any in

Gary. No,

received mentioned -- we XX.X of have our press million cumulative in release, distributions. We as

that is something we All as the was of not in sheet. recognize on And would quarter. quarter our in our projections balance fourth earnings included

of that the are But be that issued in October. September finalizing guidance do recognized. of not quarter our assumption that We been an would in have fourth the has any we review and

store X% basis in half just revenue asked about year-over-year. explicitly There can else XQ? a we've XXX out? anything or Is XQ EBITDA. little then typically talking looks been about for XXX seen looking down driver about know primary And margin just implies a the you're growth, you're of the thought? I And about. EBITDA a to step up seasonality, that same than up that I call your your it sequentially XQ Is for quarter, points performance of thinking X% that softer. it's down bigger this you is for just potentially like step little so margins the It Is there bit. think midpoint

so resurgence we Well, could seen range around and earlier, to other we approach, recent see do projections quarter cautious as strong expect continue continue. disruption November have we It's that trends we third obviously, be December. But strong. want a a And that in expect mostly and to a on we've about seasonality. as that strong we And X% months. we and the some have be to markets and that very the did taking do knowing fourth facilities think and quarter in volumes from cautious to commented X% us very to

So it is seasonality being and of some cautious us resurgence. around the elements

or more If growth seems a level thumb one add years I four U.S. in of slower, to margin one. as Is had So just for pretty the store growth that few so to has at there row. just or last same been over margins higher. improvement? be revenue X%, or declined need you on level revenue had rule can It quick X% you're a drive years

throw of you margin comfortable, is pretty thumb there at rule any You're would us? driving improvement, you're

that range and fixed us just factor a per the revenue helps margins. to see think efficiencies, the X% we grow realize X% in able we Well, growth is opportunities margin And maintain day significant growth to the we being that as in leverage volume the improvement as the we structure then volumes. are cost our

obviously to have stronger, range. in seen has expect that And And growth above do so strong really the from as third the in X% volume margin quarter, we And margin revenue we've been revenue improvement. seen X% improvement be that only growth. growth to that, we that need

Thank you.

Gary. Thanks,

comes question next Suisse. A.J. from Rice with Credit Our

Hi, everybody.

capital that there's thoughts Just with been updated time amount for on I you're of know, structure. Any long term leverage long what first. comfortable over term? discussion targets are the the about

Well, And the other that anything we beyond this a are goal that We around above quarter. last like we've earnings about growth the through and to saw just a U.K.transaction, and leverage made years Yes, contributing helping turned potential us before, the a A.J. this investments something do yet, not specific obviously, that. I that lower more quarter. target strategic several opportunities. third relates relating not quarter, growth, then think earnings in target providing the our to of seen and are we've the leverage. we've have over sharing But We we've transaction, yet, talked to a lowering that in our

lot telehealth of been the there's in that about area. a Obviously, behavioral Okay. deploying discussion

with where existing telehealth discussions it looking some about the anything at that in talk are in working services growth ways it's third you more? are might interested to with to avenue a that Are be as share that companies you. sounds those you like you wonder, party But Anything you guys, pursue getting support lines? I You provide. any outpatient to along

mean, access with we've you the part a a I engagement. patient it that is we as replacement of for see It telehealth is we, for what point. And not used Sure. good inpatient do. we said,

look reimbursement in that regulatory be this been favorable. they're and to the changes I place think like end at changes that have to I going of and year, think have the least been made

use vendors doing are that have telehealth, I for programs. of looked now. the and we're can at our our collaborating And we with do -- So already telehealth. outpatient we partial A.J., expand with outside we some how

outpatient, we've that think more comfortable, certainly we're and growth We And also think assessments. primarily also the pandemic. area that I -- around see that use that -- now importance right can't doing as and But I have for for as internal partial to those the area facility. can it practitioners with we patients collaboration. expanded and which the for that reflect have now it using we're capabilities open the But as what then We think visitation we're for an to we and reimbursement as a started that but of and of that I We're they it changes get well even have it. now to makes is plan think sense. come into that already is doing

the I'll Okay. questions. because other and sort I slip falls Maybe of if of it's could, one some on more

XX states. in You're

see you that usual, as surge just easing people last flavor fourth of because the this or then surge community, much those surges and COVID surges Or you a seven when in least pretty see wide about in a when point is really, anymore? community you you a really one obviously clearly evolved the community, Do six at there's COVID little don't are sort at back healthcare see impact just view? Could of a really that now give giving a it us over the there's impact for comments and to and you got utilization business? mini a in as you're quarter. using months. then sort communities a seen responding to you've Do So surges of cautionary the how has

markets cases treatment. patients are have more A.J., that seen coming still is I have think our that facilities our had Well, to that for we

don't We referral they I But facilities and the have sure being isolating I as happening. because having just unit do also talk caution, on the we opposed lot. are learned resurgence that when those them making have done around we're would necessary, is for to don't But And what with we how The I don't networks. that that's We conservative, And facility. right a of a things. really lot where know think appropriate to I anticipate expect. think that we more over that. want think, as when this say we control manage focused have patients, we we've sure we make in to COVID are about COVID. patients the that

we've adapting us visibility. is very referral focused they're that approach used. that outreach. I got of and the also on And a given We've the just sales think how platform marketing working. It's quickly lot

see, cases than our think haven't we we go interrupt as I So just seen overall, facility. managing really that business, within other up, the

Interesting.

lot. Okay. All right. Thanks a

you. Thank

as to limit question with yourself And one reminder, one please follow up.

comes from question next UBS. Mayo Our Whit with

now COVID We've expense. thanks. providers, actually interesting to quarter Hey, for for have maybe no half drive develop trend morning. tailwinds this is and seen a beginning you so Good T&E certain begin that where to a

Workers PPE you then support increased tailwind And And you that we wondering, COVID down. third your you with probably quarter? know, think the for guess, Then Your supplies you net the just comp I'm I offset in malpractice Self is together? to in do the sequester. two also down. have What field. insured costs there's was, down. do those the a

COVID offset tailwind I'm we headwinds So those this some point? maybe be expenses business back that at thinking the just is And into year? wondering the leak the actually if next that of should

will the But not been would highlight. what people significant obviously, we demand, pieces basis, here. not from that the of and net On cost continue savings tailwind think a nothing cost mentioned. there's think and do there's do of significant a net on There We as because seeing basis. mean, are we're I partially, moving we we and volume have a that through. you believe a perspective, some a some incremental lot do

at we as for is example, to highlight I you We of from also level travel, and other higher some for for next the a seen, lower think a there's cost. amount perspective, back significant looking year. costs point. and we a don't of level this travel any we year. at about have a changes. that that would how But And, incremental this add level think will be PPE you of mentioned, are just employee lower What as But medical us essential seeing

with I'll just add it. And

of of some we at our volume back travel efforts say, done we're sure have areas. virtual in in matching management that and focused the on even we the marketing advance to with what non-clinical and of I through think costs step and have solutions. really primarily essential? a our through travel previously Do we looked But our some need opportunity is this lot had the and staffing the to around making expense the taken been

and changing I careful be do making sure So, going we back things. be will the sure we forward think we just think perhaps to not do staffing. our being will But some I that that normal, think managing way claims. which that flow health when expenses And I'm as return very about of And that of prudent that impact some around I there most think of patients get been I has be. on will our the and we're of

adjudication changes up you the pre any responding are around notable how I'm process. to guys, off. length just, curious is, you are Now, payers the seeing Anything And and just helpful. super impacted stay, denials, that's may that follow one of have

Just from with like feel Thanks. you have you a you're headwinds have tailwinds, curious perspective? any on any or payer observations with you seeing

change I And necessity. place behavior, stay any difference of really they're look make Whit.. haven't payer in that But a big that our think think We much as that increase. we there. admit seen patients. sure length don't we still medical at of mean, mean, I see I there, I that's I as I requiring

our at of It's looked pretty wasn't there service any been factor there. across all we one it, lines. stable As

patients make are on are And I part getting for very care to of been identify They're get sure appropriate the collaborative the care length with think their their changed. certainly of so they've as that that still But trying I gone making wouldn't patients through that's taken they're pandemic, of. sure focused we've plans that appropriate anything stay. and us

you. I figured. Thank

Baird. Matthew Gilmore from Our comes with next question

Hey, thanks. I just had clarification. a quick

company a census for month? best for I made that census comment an October October. in just was the levels ever think Did that during record record October level about mean a the or Debbie

the census Acadia that best has actually the in U.S. Its had

highest record So the census for was that set for company. it's a

to -- than that you a And perhaps with have the in better up is maybe expect month October? normally on But you'd contributing follow you generally unusual yes, just the adds that to would Or bed sense of is sequentially, that, to maybe that. September is kind that? what

a You're a beds right. online this team July. typically The bed operations have job strong and helped year, done has additions great bringing does us have in October census new our month. facility online

of so, you And think to the service as month number during lines strong achieve that the expect performance And strong a I've pleased about help the from months it's and high month, we're very year other achieve across to us we where a that. seen census.

And in that also, add just I'll as additions. said, And David we that. our novos bed put place. have de just With

We our have been pleased beds and some those our have been expectation at above ramping expectations. that

to returning days factors few normal with I But think where left across certainly well go as all think got So end around numbers many think I seen service still strong a at as October. Not We able actually up. together in I the some were of ranges. we've those -- very specialty [ph], to we just lines, one. cube kind

all the saw October. RTCs that certainly So we in with strong adds to that number as well up the

lot. a Thanks great. Okay,

our Ryan William And Daniels Blair. we'll question next take from with

in. for Hey guys, for me Nick, Ryan. Thanks speak out squeezing

U.S. back this the this any point. shake as referral most basically those basically filling? normal U.K? Is a result do of of of backlog to the at it in distribution think similar that as then kind Or And you kind You strength at of mentioned is that of in the out point?

April had and Well, in at as the I in UK that was managers And for there case orders dynamic I stay surge. in were in were a think interruption, some in med for redeployed the into med the that that And that home May place as were the think and the commissioners which also where also as surge happened, services. U.K. were redeployed well in there the even think I U.K., March

returned the commissioning process normal. obviously U.K. return facilities to they as patients that there sent, in to normal, being seen have are to And our have We the are

of a that about I perhaps I delayed, combination this think but is pandemic, a individuals strong need there's before. that care believe might that we've also without that demand, that the talked there's even just that

in and and have as seeing pandemic have guess, frankly, coming we're prior If wouldn't people just the add the gone become pandemic. patients they then have the anxiety they've both And us to perhaps impacted where standing U.K. an that had you kind more I then pandemic. they the that issue not think but of I are depression, -- U.S. in had the also acute But long this through issues.

That a sense. then being XXXX? kind bad ads of XXXX Great. like CapEx of makes XXXX kind And case for Would for for similar good about talked kind that of you at of XXXX to estimate. a looking be the two level kind

seeing detail there. But have that in we more additions had consistently provide we're We'll Yes. bed level XXXX. the at

last And So It's it's we'll guidance several this in not will the we that February. continue. around provide But consistent been over that think more years. year. just

right. guys. All the Thanks, Great. you. Congrats quarter. Got on

Okay. Thank you.

you. Thank

conference for or to Osteen to there this additional like any closing And further back remarks. are the questions. no At time. turn Debbie I'd

interest also unprecedented for Acadia to our initiatives again forward, for grateful operational their while in keeping you for to am Healthcare. and key very thank this crisis. their responding to growth your resiliency, today field corporate and us and commitment Well, I moving our and leaders with being

the here main stand that I think reasons optimistic today they I are one Company's future. of our about

today, And good have you us any a to not please contact questions additional If hesitate directly. have day. do

That conference. We participation. does conclude you today's for your thank

disconnect. You may now