June 2014 Investor Presentation Exhibit 99.2 * * * * * * * |
Some of the statements made in this presentation constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statements that address future results or occurrences. In some cases you can identify forward-looking statements by terminology such as “may,” “might, “will,” “should,” “could” or the negative thereof. Generally, the words “anticipate,” “believe,” “continues,” “expect,” “intend,” “estimate,” “project,” “plan” and similar expressions identify forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained in this are forward-looking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, many of which are outside of our control, which could cause our actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. Additional risks and uncertainties are described more fully in our periodic reports and other filings with the Securities & Exchange Commission. These forward-looking statements are made only as of the date of this presentation. We do not undertake and specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments. Safe Harbor 1 |
We have included certain financial measures in this presentation, including Pro Forma EBITDA, Pro Forma Adjusted EBITDA, Adjusted Diluted Earning per Share, PiC EBITDA and PiC Adjusted EBITDA, which are “non-GAAP financial measures” as defined under the rules and regulations promulgated by the U.S. Securities and Exchange Commission (“SEC”). We define Pro Forma EBITDA as pro forma net income (loss) adjusted for loss (income) from discontinued operations, net interest expense, income tax provision (benefit) and depreciation and amortization. We define Pro Forma Adjusted EBITDA as Pro Forma EBITDA adjusted for equity-based compensation expense, cost savings/synergies, rate increases, integration and closing costs, rent elimination, other and debt extinguishment costs. We define PiC EBITDA as PiC loss from continuing operations adjusted for net interest expense, income tax benefit and depreciation and amortization. We define PiC Adjusted EBITDA as PiC EBITDA adjusted for other costs. For a reconciliation of pro forma net income (loss) to Pro Forma Adjusted EBITDA, see page 22 (Adjusted EBITDA Reconciliation). For a reconciliation of Adjusted Diluted Earnings per Share, see page 23 (Adjusted EPS Reconciliation). For a reconciliation of PiC loss from continuing operations to PiC Adjusted EBITDA, see page 24 (PiC Adjusted EBITDA Reconciliation). We may not achieve all of the expected benefits from synergies, cost savings and recent improvements to our revenue base. Pro Forma EBITDA, Pro Forma Adjusted EBITDA and PiC Adjusted EBITDA, as presented in this presentation, are supplemental measures of our performance and are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). Pro Forma EBITDA, Pro Forma Adjusted EBITDA and PiC Adjusted EBITDA are not measures of our financial performance under GAAP and should not be considered as alternatives to net income or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as measures of our liquidity. Our measurements of Pro Forma EBITDA, Pro Forma Adjusted EBITDA and PiC Adjusted EBITDA may not be comparable to similarly titled measures of other companies and are not measures of performance calculated in accordance with GAAP. We have included information concerning Pro Forma EBITDA, Pro Forma Adjusted EBITDA and PiC Adjusted EBITDA in this presentation because we believe that such information is used by certain investors as measures of a company’s historical performance. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of issuers of equity securities, many of which present EBITDA and Adjusted EBITDA when reporting their results. Our presentation of Pro Forma EBITDA, Pro Forma Adjusted EBITDA and PiC Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Use of Non-GAAP Financial Measures 2 |
Proven and Replicable Growth Strategy Attractive Industry Trends Coupled with Favorable Legislative Environment Key Investment Highlights 3 Leading Pure Play Behavioral Healthcare Services Provider Strong Financial Performance and Steady Cash Flow Generation Premier Management Team with Track Record of Success Significant Transformation in Scale, Bed and Payor Mix Attractive Revenue Diversification and Payor Base |
Definitive Agreement to Acquire Partnerships in Care (PiC) PiC is the 2 nd largest independent (private) behavioral health provider in the UK 23 inpatient facilities with over 1,200 beds 2013 revenues of $285 million 2013 adjusted EBITDA of $75 million Purchase price of approximately $660 million Fully underwritten funding commitment from BofAML Transaction expected to be significantly accretive $0.17 to $0.20 per diluted share for 2014 $0.40 to $0.46 per diluted share for 2015 Attractive UK growth opportunities Favorable industry dynamics Positioned well to grow organically and through acquisitions Transaction expected to close July 1, 2014 4 |
PiC is a Long-Established Leading Service Provider 5 PiC Standalone Overview Facility Locations Established in 1985, PiC has since grown to comprise 1,244 beds in 23 facilities located across the UK Owned by Cinven since 2005 Market leader in the provision of secure accommodation for mentally ill patients and a leading provider of care, in both secure and non-secure settings. #2 UK private-sector provider with 16% market share The primary sources of new patient referrals are the NHS, legal system, prisons, and other secure facilities Over 99% of treatment is funded by the NHS, which is predominantly funded by NHS England and Clinical Commissioning Groups for services such as brain injuries and rehab Owns a portfolio of well maintained flexible mental health hospitals with outstanding service records, with over $150 million invested in development CapEx over the past 7 years Generated revenue for 2013 of $285 (1) million and adjusted EBITDA of $75 (1) million (1) Note: assumes £1 = $1.67 |
Acquisition Rationale 6 Meaningfully increases size and scale of the business – expected to increase revenue by 37% to $1.1 billion Attractive platform for entry into UK behavioral health market Ample opportunities for growth - bed expansions, de novo opportunities and acquisitions have been identified in markets with pent-up demand PiC has strong relationships with UK regulators Positive underlying fundamental trends in the UK behavioral health industry Demand for independent acute care services has grown significantly as a result of reducing bed capacity at NHS facilities and increased hospitalization rates The UK independent mental health market is a £1.1 billion market (~8% of total mental health spend) and is growing at 9.2% per year, making it one of the fastest growing sectors in the UK Sector poised for consolidation (largest four players make up 58% of the market), with significant opportunities to bolster scale and local presence, a key driver of competitive advantage in the UK behavioral health market Target has acquisition pipeline in place that has been impeded due to capital constraints under current owners Significant shift in payor mix profile – diversifies revenue mix away from U.S. government payors PF 49% US government / 27% UK government U.S. Medicaid mix declines from mid 45% to 33% Growth and margin enhancement PiC margins in mid 20% region – roughly 500 bps higher than those of Acadia Acquisition will be highly accretive to Acadia EPS Limited integration risk PiC has long-standing and highly effective management team that are expected to remain at the Company |
UK Behavioral Healthcare Market 7 Source: Laing & Buisson UK Market Report. UK Mental Healthcare Market Trends NHS vs. Independent Sector Dynamics Expenditure on mental healthcare services in the UK is roughly £14.4bn. >70% of funding for these services is provided by the National Health Service (NHS), with the remainder funded by local authorities In total, ~1.3m people currently receive mental healthcare services in the UK, with the mentally ill population expected to be almost 10mm by 2026 (growing at or greater than the rate of overall population) The flattening budget and policy focus on mental healthcare has resulted in the identification of certain mechanisms to ensure sustainability. These include improved operational efficiency, a focus on outcomes and implementation of the integrated care agenda (“care pathways”) The secure mental healthcare pathway includes medium and low secure settings, rehabilitation and community based care. Individuals are referred into the pathway either from the NHS (77% of referrals), often via acute hospitals or the criminal justice system (23%) In response to the sustainability challenge, there is growing focus on increasing patient velocity along their care pathways and commissioning integrated pathways, although certain barriers – including the division of mental health commissioning responsibility between different entities – exist to its adoption There is an opportunity for providers to build out services offerings in community settings, as these are currently underdeveloped and represent a lower cost setting close to the patient’s home The NHS is the principal provider of secure mental healthcare services, with approximately 70% share of total beds in the UK. The independent sector is a material provider of services, with an overall share of approximately 30%, which rises to over 40% for secure and rehabilitation services The NHS has reduced its overall capacity by approximately 3% per year since 2006 / 2007 NHS capacity is not optimized and it does not have the capital to address specific local demand patterns The fundamental market dynamics are expected to broadly strengthen the market position of quality independent sector providers, especially the increased focus on outcomes, requirement to design new care models and requirement for capacity optimization – all of which the independent sector is better placed to address than the NHS |
Leading Pure Play Behavioral Healthcare Services Provider 8 Acadia is a facility-based behavioral healthcare company established in 2005 to acquire, develop and operate behavioral healthcare facilities In February 2011, five members of the former Psychiatric Solutions, Inc. (“PSI”) senior management team joined Acadia Goal to build the pre-eminent behavioral healthcare company in the US and accelerate Acadia’s growth strategy M&A strategy has created significant momentum (acquired ~$600 million in revenue over the last 3 years) Acquired AmiCare and BCA in December 2012 Acquired Greenleaf Center in January 2013 Acquired Delta Medical Center in January 2013 In May 2013, acquired San Juan Capestrano Hospital (Puerto Rico) and North Tampa Behavioral, under construction that opened in the fourth quarter of 2013 Acquired The Refuge in August 2013 Acquired Longleaf Behavioral in October 2013 Acquired Cascade Behavioral in December 2013 Acquired Pacific Grove in January 2014 Pro Forma for the acquisitions of San Juan Capestrano and Cascade, LTM 3/31/14 Revenues and Adj. EBITDA were $766 million and $156 million, respectively Licensed Bed Mix Acadia Overview Facility Locations Existing Facilities Headquarters AmiCare Facilities BCA Facilities 4,300 Total Beds at 52 Facilities Greenleaf Delta Medical Center San Juan Capestrano Hospital Puerto Rico North Tampa Cascade Pacific Grove Longleaf The Refuge |
Premier Management Team with Track Record of Success 9 Industry Leading Management Team Bruce Shear Executive Vice Chairman, Years in Industry: 36 Brent Turner President Years in Industry: 19 Ron Fincher Chief Operating Officer Years in Industry: 30 Steve Davidson Chief Development Officer Years in Industry: 30 Chris Howard Executive Vice President, General Counsel Years in Industry: 10 Joey Jacobs Chairman & Chief Executive Officer Years in Industry: 40 David Duckworth Chief Financial Officer Years in Industry: 10 Division V Division I VP Clinical Services Division IV Division III Division II PiC |
10 Significant Transformation in Scale, Bed and Payor Mix over the Past Two Years (1) Pro forma Acadia, YFCS and PHC. (2) Pro forma Acadia, San Juan Capestrano and Cascade. 1,970 Beds 4,300 Beds Pro Forma FY 2011 (1) # of Facilities 29 52 Revenue ($ in mil) $333 $766 Adj. EBITDA ($ in mil) $54 $155 Adj. EBITDA Margin 16.2% 20.3% # of States 18 24 Bed Mix Payor Mix Pro Forma LTM 3/31/14 (2) RTC / Other 73% Acute 27% RTC/ Other 35% Acute 65% Other 5% Medicare 8% Comm'l 20% Medicaid 67% Other 6% Medicare 22% Comm'l 27% Medicaid 45% |
Longleaf Hospital located in Alexandria, Louisiana 68-bed acute inpatient psychiatric facility Closed October 1, 2013 Purchase price of approximately $8.3 million Cascade Behavioral Hospital located in Tukwila, Washington 63-bed acute inpatient psychiatric hospital Certificate of need for 135 total beds Closed December 1, 2013 Purchase price of approximately $20.0 million Pacific Grove Hospital located in Riverside, California 68-bed acute inpatient psychiatric facility Closed January 1, 2014 Purchase price of approximately $10.5 million 11 Recent Announcements – Longleaf, Cascade and Pacific Grove |
Industry Dynamics Highly Favorable Compared to Medical/Surgical Providers and Other Facility-Based Healthcare Businesses General Acute Care Hospitals Acute Hospitalization Broad clinical focus Focused on inpatient care with average length of stay (ALOS) of roughly 5 days Most intensive level of care offered 24-hour observation and care – Daily intervention and oversight by a psychiatrist 10-day average length of stay Transition to less-intensive level of care Residential Treatment Less intensive treatment in non-hospital settings Focused on children and adolescents Physician-led multi-disciplinary treatment addressing overall medical, psychiatric, social and academic needs of the patient – Balance of therapies and activities in a safe, structured setting Longer length of stay –180 to 270 days Focus On average, hospitals have ~200 beds Heavy competition from outpatient setting Increasing inpatient occupancy and utilization Limited competition from outpatient setting Inpatient Capabilities More complex reimbursement system – 670 Diagnosis Related Groups for medical/surgical hospitals – Medicare reimbursement via a prospective payment system (PPS) Simple reimbursement system – Per diem based – 15 Diagnosis Related Groups – Medicare PPS payment system implemented January 2005 Reimbursement Profile Mid-teens margin Capex can be 4% - 6% of revenue 20 – 40% margin Minimal maintenance capital expenditure requirements: ~2% of revenue 15 – 25% margin Minimal maintenance capital expenditure requirements: ~2% of revenue Facility Level Profitability Competitors Inpatient Behavioral Healthcare Bad debt expense as high as +10% – Higher level of private payors Low bad debt exposure (~3% of Net Revenue) – Diverse and stable payor mix – Limited emergency room exposure – Preauthorization 12 |
Attractive Industry Fundamentals (1) IBISWorld report – “Mental Health & Substance Abuse Centers in the US”, May 2011. (2) National Institute of Mental Health. (3) Based on management beliefs and/or projections. (4) IBISWorld report – “Youth Programs & Miscellaneous Care Facilities in the U.S.”, August 2010. (5) US Department of Health and Human Services. Industry Trends Make a Compelling Growth Story ($ in billions) Mental Health and Substance Abuse Facilities Market (1) Youth Behavioral Market (4) Highly fragmented industry with small establishments Stable pricing and inpatient ALOS combined with increased admissions and occupancy trends Medicare PPS has had a positive impact to freestanding providers Significant barriers to entry because of high degree of specialization and regulation (1) Large market with attractive trends – U.S. Behavioral Healthcare Market: National expenditures on mental health and substance abuse treatment are projected to reach $239bn by 2014, a CAGR of 6.4% since 2003 (5) – Adult Behavioral Healthcare: Mental health and substance abuse facilities market estimated to grow to $10.2bn in 2014 (1) ~26% of Americans aged 18 and older suffer from diagnosable mental disorders (2) Market is poised for growth due to increased awareness of mental health illnesses and treatment acceptance (3) – Youth Behavioral Healthcare Market: Child and Adolescent Behavioral Healthcare market estimated to grow to $11.0bn in 2014 (4) 1 in 5 children and adolescents have a mental disorder (2) Focus on children services mitigates reimbursement pressure from Medicaid (3) – Substance Abuse: ~2.8% of persons 12 or older are dependent on or abuse illicit drugs, and ~7% are dependent on or abuse alcohol (1) 13 ($ in billions) $8.6 $8.7 $9.0 $9.4 $9.7 $10.0 $10.2 2008 2009 2010 2011E 2012E 2013E 2014E $9.6 $9.7 $9.9 $10.1 $10.4 $10.7 $11.0 2008 2009 2010 2011E 2012E 2013E 2014E |
Favorable Legislative Environment Enables most people who are now uninsured to get insurance through an insurance exchange, resulting in healthcare coverage for more than 90% of Americans (1) Significantly expands options for affordable coverage through Medicaid expansion (1) Reform is expected to provide more Americans, including low-income, single, childless adults, with insurance and bring mental health and substance abuse coverage on par with coverage for medical and surgical services Healthcare Exchanges will be subject to the Federal Mental Health Parity Law resulting in more individuals having comparable coverage for mental health and physical health (2) (1) IBISWorld report – “Mental Health & Substance Abuse Centers in the US”, May 2011. (2) Based on management expectations. The Mental Health Parity and Addiction Equity Act of 2008 provides for equal coverage between psychiatric or mental health services and physical medical health services (1) – Forbids employers and insurers from placing stricter limits on mental healthcare compared to other health conditions for group plans of 51 employees or more (1) – Provides incentives and requirements for employers to provide comparable coverage for mental health and physical health – Projected to affect more than 113 million individuals (1) – Promotes positive awareness of mental health issues and environment Difficult to cut reimbursement for coverage that relates to children (2) Final mental health parity regulations effective beginning in 2014 14 Mental Health Parity Legislation Patient Protection and Affordable Care Act Healthcare Reform will Spur Revenues |
15 Proven and Replicable Growth Strategy Significant acquisition growth runway exists given industry fragmentation and attractive valuation Proven strategy to identify, acquire, integrate and improve facility operations AmiCare and BCA (Dec. 2012) Greenleaf Center (Jan. 2013) Delta Medical Center (Jan. 2013) San Juan Capestrano Hospital and North Tampa Behavioral Health (May 2013) The Refuge (Aug. 2013) Longleaf (Oct. 2013) Cascade (Dec. 2013) Pacific Grove (Jan. 2014) Growth supported by positive secular demand trends, market share gains, stable pricing and inpatient ALOS Consistent track record of same facility revenue growth (+10% average over the last four quarters) Increase occupancy of existing beds and increasing mix of higher margin services Improve profitability at underperforming facilities by addressing capital constraints and improving management systems Group purchasing, benefits and risk management savings Expanding bed count at existing facilities to meet demand – significantly cash flow accretive In addition, opportunity from conversion of RTC beds to acute beds Added 76 beds to existing facilities during 2011 Added 281 beds during 2012 Added 325 beds, including opening two newly developed facilities with a combined 102 licensed beds, in 2013 Added 122 beds during Q1 2014 |
Financial Review 16 |
Attractive Revenue Diversification and Payor Base 17 Limited significant geographic concentration PF LTM 3/31/14 Revenues (1) Payor Mix – PF FY 2011 (2) (1) Pro Forma for Acadia, San Juan Capestrano Hospital and Cascade. Medicaid includes 30 state payors and other payment providers including educational departments and state governments. (2) Pro Forma Acadia, YFCS and PHC. Geographic diversification with operations across 52 facilities in 24 states and Puerto Rico, on a pro forma basis Receive Medicaid payments from 30 states, the District of Columbia and Puerto Rico - Medicaid reimbursements are primarily for services provided to children and adolescents No facility accounts for more than 7% of total facility revenue Improving mix of services by increasing acute psychiatric beds - Services diversified between adult and youth behavioral, in-patient, outpatient and general psychiatric facilities, residential treatment facilities, substance abuse facilities, and other behavioral healthcare services Payor Mix – PF LTM 3/31/14 (1) |
First Quarter 2014 Financial Summary Significant expansion of platform 52 facilities and ~4,300 beds in 24 states and Puerto Rico in Q1 2014 vs. 44 facilities and ~3,500 beds in 21 states in Q1 2013 Room for growth and margin improvement within existing facilities 26.0% same-facility Adjusted EBITDA margin for the first quarter ended 3/31/14 compared with the 23.7% Adjusted EBITDA margin for all facilities Delivered a strong financial performance in three months ended 3/31/14 compared to three months ended 3/31/13 Revenues grew by 25% from $161.2 million to $201.4 million Same-facility revenues grew by 10% from $160.6 million to $176.4 million Adjusted EBITDA grew by 29% from $30.5 million to $39.3 million Increasing facility EBITDA margin, delivered 60 bps of margin expansion from 23.1% to 23.7% Generated $0.28 diluted EPS (1) in three months ended 3/31/14 Completed acquisition of one facility in California with approximately 68 licensed beds Source: SEC filings and company press release. Q1 2014 Performance Revenue ($ millions) Adjusted Diluted EPS Adjusted EBITDA ($ millions) Key Highlights 18 Y-O-Y Growth: 25% Y-O-Y Growth: 29% Y-O-Y Growth: 62% $161.2 $201.4 Q1'13 Q1'14 $30.5 $39.3 Q1'13 Q1'14 $0.21 $0.28 Q1'13 Q1'14 |
Historical Performance 19 Revenues ($ millions) Adjusted EBITDA ($ millions) Adjusted Diluted EPS 2014 guidance for adjusted diluted EPS of $1.26 - $1.29 $216.5 $407.5 $713.4 2011 2012 2013 $35.2 $81.0 $145.3 2011 2012 2013 $0.27 $0.66 $1.07 2011 2012 2013 |
Proven and Replicable Growth Strategy Attractive Industry Trends Coupled with Favorable Legislative Environment Key Investment Highlights 20 Leading Pure Play Behavioral Healthcare Services Provider Strong Financial Performance and Steady Cash Flow Generation Premier Management Team with Track Record of Success Significant Transformation in Scale, Bed and Payor Mix Attractive Revenue Diversification and Payor Base |
Appendix 21 |
Adjusted EBITDA Reconciliation (1) Approximately $17.3 million of equity-based compensation was recognized in 2011 related to equity units issued in conjunction with the acquisition of YFCS (2) Includes headcount reduction associated with duplicative functions and the integration of PHC’s, AmiCare’s and BCA’s corporate functions into Acadia’s headquarters in Franklin, TN (3) Represents (1) the increased revenue that would have resulted from an increased rate on one of PHC’s contracts that became effective in March 2011, assuming such increased rate had been effective throughout the twelve month period ended December 31, 2011. The increased rate was estimated by multiplying the historical plan enrollment by the newly-contracted rate, and (2) the increased revenue of AmiCare facilities for the Arkansas Medicaid rate increases effective July 1, 2012 (4) Reflects integration costs incurred through 12/31/11 for the acquisition of YFCS by Acadia (5) Represents rent expense incurred prior to the purchase of the real estate assets of (1) PHC’s Capstone Academy, (2) the six facilities that were previously leased by Acadia and purchased in 2012 and (3) BCA’s Stone Crest facility purchased in December 2011 (6) Includes run-rate effect of the expansion of an existing PHC contract, normalized operating income for PHC’s Seven Hills Facility, a legal settlement at PHC, the impact of start up losses for new programs and facilities opened by PHC, AmiCare and BCA, reimbursement adjustments, divestiture costs, policy changes, management fees and other transaction related expenses already incurred (7) In connection with the redemption of $52.5 million of the Company’s 12.875% Senior Notes, Acadia recorded a debt extinguishment charge of $9.4 million in the first quarter ended March 31, 2013. Description of Adjustments 22 Pro Forma Adjusted EBITDA Reconciliation FYE December 31, 2011 2012 Pro Forma Results Income (Loss) from Continuing Operations $8.9 $34.3 Interest expense, net 34.6 34.9 Income tax provision (benefit) 16.6 23.2 Depreciation and amortization 11.1 12.4 Other expense, net 0.0 0.6 Pro Forma EBITDA $71.2 $105.4 Adjustments (1) Equity-based compensation expense 17.4 2.3 (2) Cost savings/synergies 9.8 6.9 (3) Rate increases 0.7 0.2 (4) Integration and closing costs 0.9 0.0 (6) Other 0.5 9.1 Total Pro Forma Adjusted EBITDA $105.2 $127.2 $ millions (5) Rent elimination 4.7 3.3 2013 $44.3 37.9 27.0 17.6 0.0 $126.8 5.2 0.0 0.0 0.0 7.2 $148.6 0.0 (7) Debt extinguishment costs 0.0 0.0 9.4 TTM 3/31/14 $52.7 38.5 31.6 19.1 0.0 $141.9 6.4 0.0 0.0 0.0 7.2 $155.5 0.0 0.0 |
Adjusted EPS Reconciliation Description of Adjustments (1) Represents the management fees paid by Acadia to its equity sponsor prior to the termination of the professional services agreement between Acadia and its equity sponsor on November 1, 2011. (2) In connection with the redemption of $52.5 million of the Company’s 12.875% Senior Notes, Acadia recorded a debt extinguishment charge of $9.4 million in the first quarter ended March 31, 2013. (3) Represents transaction-related expenses incurred by Acadia related to acquisitions. (4) Represents the income tax provision adjusted to reflect the aggregate tax effect of the adjustments to income (loss) from continuing operations described above based on effective tax rates. Adjusted EPS Reconciliation FYE December 31, $ millions 2011 2012 2013 Q1 2013 Q1 2014 Income (loss) from continuing operations $ (33.2) $ 20.5 $ 43.3 $ 4.1 $ 13.0 Provision (benefit) for income taxes (5.3) 12.3 25.9 2.6 7.8 Income (loss) from continuing operations before income taxes (38.5) 32.8 69.2 6.7 20.8 Adjustments to income (loss) from continuing operations: Sponsor management fees (1) 1.3 — — — — Debt extinguishment costs (2) — — 9.4 9.4 — Transaction-related expenses (3) 41.5 8.1 7.2 1.5 1.6 Income tax provision/benefit reflecting tax effect of adjustments to income from continuing operations (4) 0.7 (15.3) (32.2) (7.0) (8.4) Adjusted income (loss) from continuing operations $ 5.0 $ 25.6 $ 53.6 $ 10.6 $ 14.0 Weighted-average shares outstanding – diluted 18,757 38,696 50,261 50,250 50,486 Adjusted income (loss) from continuing operations per diluted share $ 0.27 $ 0.66 $ 1.07 $ 0.21 $ 0.28 23 |
PiC Adjusted EBITDA Reconciliation (1) Includes non-recurring legal and other costs incurred by PiC in the period presented. Description of Adjustments 24 Adjusted EBITDA Reconciliation FYE December 31, 2013 Loss from Continuing Operations ($48.5) Interest expense, net 103.2 Income tax benefit (2.9) Depreciation and amortization 19.2 EBITDA $71.0 Adjustments (1) Other 4.3 Adjusted EBITDA $75.3 $ millions (1) PiC results have been adjusted to conform to Acadia financial statement presentation and to convert British pounds to US Dollars at a 1.67 exchange rate. |