Exhibit 99.2
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The tables below set forth the unaudited pro forma condensed combined financial data for Acadia giving effect to Acadia’s planned acquisition of Partnerships in Care on July 1, 2014, the offering of common stock described in this prospectus supplement and Acadia’s planned debt financing transactions.
With respect to this offering, the unaudited pro forma condensed combined financial data is based on the assumption that Acadia is offering 7,344,998 shares of common stock at an assumed public offering price of $46.29 per share, which was the closing price of our common stock on June 6, 2014, as reported on the NASDAQ Global Market.
With respect to Acadia’s planned debt financing, the unaudited pro forma condensed combined financial data is based on the assumption that Acadia will issue $300,000,000 of incremental term loans through an amendment to its existing Amended and Restated Credit Agreement and borrow $56,000,000 on its existing revolving line of credit.
The unaudited pro forma condensed combined balance sheet as of March 31, 2014 reflects the effect of Acadia’s planned acquisition of Partnerships in Care as if it occurred on March 31, 2014.
The unaudited pro forma condensed combined statements of operations give effect to each transaction as if it occurred on January 1, 2013.
The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2013 combines the audited consolidated statement of operations of Acadia for that period, the unaudited consolidated statement of operations for Acadia’s completed acquisitions, and the audited consolidated statement of operations of Partnerships in Care for the period from January 1, 2013 to December 31, 2013.
The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2014 combines the unaudited consolidated statement of operations of Acadia for that period with the unaudited consolidated statement of operations of Partnerships in Care for the period from January 1, 2014 to March 31, 2014.
The unaudited pro forma condensed combined financial data has been prepared using the acquisition method of accounting for business combinations under GAAP. The adjustments necessary to fairly present the unaudited pro forma condensed combined financial data have been made based on available information and in the opinion of management are reasonable. Assumptions underlying the pro forma adjustments are described in the accompanying notes, which should be read in conjunction with this unaudited pro forma condensed combined financial data. The pro forma adjustments related to the planned acquisition of Partnerships in Care are preliminary and revisions to the fair value of assets acquired and liabilities assumed may have a significant impact on the pro forma adjustments. A final valuation of assets acquired and liabilities assumed has not been completed and the completion of fair value determinations may result in changes in the values assigned to property and equipment and other assets (including intangibles) acquired and liabilities assumed.
The unaudited pro forma condensed combined financial data is for illustrative purposes only and does not purport to represent what our financial position or results of operations actually would have been had the events noted above in fact occurred on the assumed dates or to project our financial position or results of operations for any future date or future period.
The unaudited pro forma condensed combined financial data should be read in conjunction with the consolidated financial statements and notes thereto of Acadia and Partnerships in Care incorporated by reference in this prospectus supplement.
1
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
As of March 31, 2014
(In thousands)
Acadia(1) | Partnerships | Pro Forma | Notes | Pro Forma | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 7,243 | $ | 20,485 | $ | (20,485 | ) | (5 | ) | $ | 7,362 | |||||||||
119 | (8 | ) | ||||||||||||||||||
Accounts receivable, net | 104,585 | 7,641 | 112,226 | |||||||||||||||||
Deferred tax assets | 17,029 | — | 17,029 | |||||||||||||||||
Other current assets | 28,180 | 5,409 | 33,589 | |||||||||||||||||
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Total current assets | 157,037 | 33,535 | (20,366 | ) | 170,206 | |||||||||||||||
Property and equipment, net | 403,366 | 895,673 | (287,925 | ) | (7 | ) | 1,011,114 | |||||||||||||
Goodwill | 665,421 | — | 84,457 | (7 | ) | 749,878 | ||||||||||||||
Intangible assets, net | 20,730 | — | 3,000 | (7 | ) | 23,730 | ||||||||||||||
Deferred tax assets—noncurrent | 4,325 | — | 4,325 | |||||||||||||||||
Other assets | 32,066 | — | 11,100 | (8 | ) | 43,166 | ||||||||||||||
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Total assets | 1,282,945 | 929,208 | (209,734 | ) | 2,002,419 | |||||||||||||||
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LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | 9,570 | — | 3,000 | (9 | ) | 12,570 | ||||||||||||||
Accounts payable | 28,405 | 6,410 | 34,815 | |||||||||||||||||
Accrued salaries and benefits | 32,257 | 6,292 | 38,549 | |||||||||||||||||
Other accrued liabilities | 27,673 | 8,209 | 35,882 | |||||||||||||||||
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Total current liabilities | 97,905 | 20,911 | 3,000 | 121,816 | ||||||||||||||||
Long-term debt | 653,626 | 1,345,323 | (992,323 | ) | (9 | ) | 1,006,626 | |||||||||||||
Deferred tax liabilities—noncurrent | 15,399 | 76,064 | (56,985 | ) | (7 | ) | 34,478 | |||||||||||||
Other liabilities | 19,865 | 6,284 | 26,149 | |||||||||||||||||
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Total liabilities | 786,795 | 1,448,582 | (1,046,308 | ) | 1,189,069 | |||||||||||||||
Equity: | ||||||||||||||||||||
Common stock | 502 | — | 73 | (8 | ) | 575 | ||||||||||||||
Additional paid-in capital | 464,188 | — | 324,927 | (8 | ) | 789,115 | ||||||||||||||
Retained earnings (accumulated deficit) | 31,460 | — | (7,800 | ) | (8 | ) | 23,660 | |||||||||||||
Investment in Parent | — | (519,374 | ) | 519,374 | (6 | ) | — | |||||||||||||
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Total equity | 496,150 | (519,374 | ) | 836,574 | 813,350 | |||||||||||||||
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Total liabilities and equity | $ | 1,282,945 | $ | 929,208 | $ | (209,734 | ) | $ | 2,002,419 | |||||||||||
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See accompanying notes to unaudited pro forma financial information.
2
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2013
(In thousands, except per share amounts)
Acadia(1) | Completed | Notes | Acadia Pro Forma | Partnerships | Pro Forma | Notes | Pro Forma | |||||||||||||||||||||||||
Revenue before provision for doubtful accounts | $ | 735,109 | $ | 23,111 | $ | 758,220 | $ | 267,031 | $ | 1,025,251 | ||||||||||||||||||||||
Provision for doubtful accounts | (21,701 | ) | (933 | ) | (22,634 | ) | (11 | ) | (22,645 | ) | ||||||||||||||||||||||
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Revenue | 713,408 | 22,178 | 735,586 | 267,020 | 1,002,606 | |||||||||||||||||||||||||||
Salaries, wages and benefits | 407,962 | 12,312 | 420,274 | 151,493 | 571,767 | |||||||||||||||||||||||||||
Professional fees | 37,171 | 1,567 | 38,738 | 11,294 | 50,032 | |||||||||||||||||||||||||||
Supplies | 37,569 | 1,176 | 38,745 | 9,755 | 48,500 | |||||||||||||||||||||||||||
Rents and leases | 10,049 | 1,228 | 11,277 | 1,605 | 12,882 | |||||||||||||||||||||||||||
Other operating expenses | 80,572 | 2,625 | 83,197 | 24,050 | 107,247 | |||||||||||||||||||||||||||
Depreciation and amortization | 17,090 | 501 | 17,591 | 21,173 | (5,957 | ) | (10 | ) | 32,807 | |||||||||||||||||||||||
Interest expense, net | 37,250 | 2,603 | 39,853 | 77,373 | (61,357 | ) | (11 | ) | 55,869 | |||||||||||||||||||||||
Debt extinguishment costs | 9,350 | — | 9,350 | — | 9,350 | |||||||||||||||||||||||||||
Transaction-related expenses | 7,150 | (1,403 | ) | (12 | ) | 5,747 | — | (184 | ) | (12 | ) | 5,563 | ||||||||||||||||||||
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Total expenses | 644,163 | 20,609 | 664,772 | 296,743 | (67,498 | ) | 894,017 | |||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 69,245 | 1,569 | 70,814 | (29,723 | ) | 67,498 | 108,589 | |||||||||||||||||||||||||
Provision (benefit) for income taxes | 25,975 | 588 | 26,563 | (12,844 | ) | 21,029 | (13 | ) | 34,748 | |||||||||||||||||||||||
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Income (loss) from continuing operations | $ | 43,270 | $ | 981 | $ | 44,251 | $ | (16,879 | ) | $ | 46,469 | $ | 73,841 | |||||||||||||||||||
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Earnings per share—income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.87 | $ | 0.88 | $ | 1.29 | ||||||||||||||||||||||||||
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Diluted | $ | 0.86 | $ | 0.88 | $ | 1.28 | ||||||||||||||||||||||||||
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Weighted average shares: | ||||||||||||||||||||||||||||||||
Basic | 50,004 | 50,004 | 7,345 | (14 | ) | 57,349 | ||||||||||||||||||||||||||
Diluted | 50,261 | 50,261 | 7,345 | (14 | ) | 57,606 |
See accompanying notes to unaudited pro forma financial information.
3
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 2014
(In thousands, except per share amounts)
Acadia(1) | Partnerships | Pro Forma | Notes | Pro Forma | ||||||||||||||||
Revenue before provision for doubtful accounts | $ | 206,119 | $ | 69,450 | $ | 275,569 | ||||||||||||||
Provision for doubtful accounts | (4,701 | ) | — | (4,701 | ) | |||||||||||||||
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Revenue | 201,418 | 69,450 | 270,868 | |||||||||||||||||
Salaries, wages and benefits | 117,575 | 40,797 | 158,372 | |||||||||||||||||
Professional fees | 10,382 | 3,116 | 13,498 | |||||||||||||||||
Supplies | 10,064 | 2,305 | 12,369 | |||||||||||||||||
Rents and leases | 2,769 | 448 | 3,217 | |||||||||||||||||
Other operating expenses | 23,110 | 6,944 | 30,054 | |||||||||||||||||
Depreciation and amortization | 5,436 | 5,767 | (1,963 | ) | (10 | ) | 9,240 | |||||||||||||
Interest expense, net | 9,707 | 20,809 | (16,805 | ) | (11 | ) | 13,711 | |||||||||||||
Transaction-related expenses | 1,579 | — | �� | (9 | ) | (12 | ) | 1,570 | ||||||||||||
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Total expenses | 180,622 | 80,186 | (18,777 | ) | 242,031 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 20,796 | (10,736 | ) | 18,777 | 28,837 | |||||||||||||||
Provision (benefit) for income taxes | 7,775 | 15 | 1,438 | (13 | ) | 9,228 | ||||||||||||||
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Income (loss) from continuing operations | $ | 13,021 | $ | (10,751 | ) | $ | 17,339 | $ | 19,609 | |||||||||||
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Earnings per share—income (loss) from continuing operations: | ||||||||||||||||||||
Basic | $ | 0.26 | $ | 0.34 | ||||||||||||||||
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Diluted | $ | 0.26 | $ | 0.34 | ||||||||||||||||
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Weighted average shares: | ||||||||||||||||||||
Basic | 50,120 | 7,345 | (14 | ) | 57,465 | |||||||||||||||
Diluted | 50,486 | 7,345 | (14 | ) | 57,831 |
See accompanying notes to unaudited pro forma financial information.
4
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
(In thousands, except per share amounts)
(1) | The amounts in this column represent, for Acadia, actual results for the periods presented. |
(2) | The historical financial statements of Partnerships in Care are prepared in accordance with U.K. GAAP and are adjusted to: (i) reconcile the financial statements to U.S. GAAP and (ii) translate the financial statements to U.S. dollars based on the historical exchange rates below. The Partnerships in Care financial statements have been reclassified to conform to Acadia’s financial statement presentation. |
GBP/USD | ||||||
March 31, 2014 | Period End Spot Rate | $ | 1.6637 | |||
Year ended December 31, 2013 | Average Spot Rate | $ | 1.5643 | |||
Three months ended March 31, 2014 | Average Spot Rate | $ | 1.6548 |
(a) | The amounts below represent results as of March 31, 2014. |
Partnerships in in U.K. GAAP) | U.S. GAAP | Notes | Partnerships in in U.S. GAAP) | Partnerships in in U.S. GAAP) | ||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | £ | 12,313 | £ | £ | 12,313 | $ | 20,485 | |||||||||||||
Accounts receivable, net | 4,593 | 4,593 | 7,641 | |||||||||||||||||
Deferred tax assets | — | — | — | |||||||||||||||||
Other current assets | 3,251 | 3,251 | 5,409 | |||||||||||||||||
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Total current assets | 20,157 | 20,157 | 33,535 | |||||||||||||||||
Property and equipment, net | 453,735 | 84,627 | (4 | ) | 538,362 | 895,673 | ||||||||||||||
Goodwill | — | — | — | |||||||||||||||||
Intangible assets, net | — | — | — | |||||||||||||||||
Deferred tax assets—noncurrent | — | — | — | |||||||||||||||||
Other assets | — | — | — | |||||||||||||||||
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Total assets | £ | 473,892 | £ | 84,627 | £ | 558,519 | $ | 929,208 | ||||||||||||
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Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | £ | — | £ | £ | — | $ | — | |||||||||||||
Accounts payable | 3,853 | 3,853 | 6,410 | |||||||||||||||||
Accrued salaries and benefits | 3,782 | 3,782 | 6,292 | |||||||||||||||||
Other accrued liabilities | 4,934 | 4,934 | 8,209 | |||||||||||||||||
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Total current liabilities | 12,569 | 12,569 | 20,911 | |||||||||||||||||
Long-term debt | 792,206 | 16,427 | (4 | ) | 808,633 | 1,345,323 | ||||||||||||||
Deferred tax liabilities—noncurrent | 2,027 | 43,693 | (4 | ) | 45,720 | 76,064 | ||||||||||||||
Other liabilities | 3,777 | 3,777 | 6,284 | |||||||||||||||||
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Total liabilities | 810,579 | 60,120 | 870,699 | 1,448,582 | ||||||||||||||||
Equity: | ||||||||||||||||||||
Investment in Parent | (336,687 | ) | 24,507 | (312,180 | ) | (519,374 | ) | |||||||||||||
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Total equity | (336,687 | ) | 24,507 | (312,180 | ) | (519,374 | ) | |||||||||||||
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Total liabilities and equity | £ | 473,892 | £ | 84,627 | £ | 558,519 | $ | 929,208 | ||||||||||||
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(b) | The amounts below represent results for the year ended December 31, 2013. |
Partnerships in in U.K. GAAP) | U.S. GAAP | Notes | Partnerships in in U.S. GAAP) | Partnerships in in U.S. GAAP) | ||||||||||||||||
Revenue before provision for doubtful accounts | £ | 170,703 | £ | £ | 170,703 | $ | 267,031 | |||||||||||||
Provision for doubtful accounts | (7 | ) | (7 | ) | (11 | ) | ||||||||||||||
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Revenue | 170,696 | 170,696 | 267,020 | |||||||||||||||||
Salaries, wages and benefits | 98,345 | (1,501 | ) | (4 | ) | 96,844 | 151,493 | |||||||||||||
Professional fees | 7,220 | 7,220 | 11,294 | |||||||||||||||||
Supplies | 6,236 | 6,236 | 9,755 | |||||||||||||||||
Rents and leases | 1,026 | 1,026 | 1,605 | |||||||||||||||||
Other operating expenses | 15,374 | 15,374 | 24,050 | |||||||||||||||||
Depreciation and amortization | 11,458 | 2,077 | (4 | ) | 13,535 | 21,173 | ||||||||||||||
Interest expense, net | 61,782 | (12,320 | ) | (4 | ) | 49,462 | 77,373 | |||||||||||||
Transaction-related expenses | — | — | — | |||||||||||||||||
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Total expenses | 201,441 | (11,744 | ) | 189,697 | 296,743 | |||||||||||||||
Loss from continuing operations before income taxes | (30,745 | ) | 11,744 | (19,001 | ) | (29,723 | ) | |||||||||||||
Benefit for income taxes | (1,715 | ) | (6,496 | ) | (4 | ) | (8,211 | ) | (12,844 | ) | ||||||||||
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Loss from continuing operations | £ | (29,030 | ) | £ | 18,240 | £ | (10,790 | ) | $ | (16,879 | ) | |||||||||
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(c) | The amounts below represent results for the three months ended March 31, 2014. |
Partnerships in in U.K. GAAP) | U.S. GAAP | Notes | Partnerships in in U.S. GAAP) | Partnerships in in U.S. GAAP) | ||||||||||||||||
Revenue before provision for doubtful accounts | £ | 41,969 | £ | £ | 41,969 | $ | 69,450 | |||||||||||||
Provision for doubtful accounts | — | — | — | |||||||||||||||||
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Revenue | 41,969 | 41,969 | 69,450 | |||||||||||||||||
Salaries, wages and benefits | 25,091 | (437 | ) | (4 | ) | 24,654 | 40,797 | |||||||||||||
Professional fees | 1,883 | 1,883 | 3,116 | |||||||||||||||||
Supplies | 1,393 | 1,393 | 2,305 | |||||||||||||||||
Rents and leases | 271 | 271 | 448 | |||||||||||||||||
Other operating expenses | 4,196 | 4,196 | 6,944 | |||||||||||||||||
Depreciation and amortization | 2,966 | 519 | (4 | ) | 3,485 | 5,767 | ||||||||||||||
Interest expense, net | 15,655 | (3,080 | ) | (4 | ) | 12,575 | 20,809 | |||||||||||||
Transaction-related expenses | — | — | — | |||||||||||||||||
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Total expenses | 51,455 | (2,998 | ) | 48,457 | 80,186 | |||||||||||||||
Loss from continuing operations before income taxes | (9,486 | ) | 2,998 | (6,488 | ) | (10,736 | ) | |||||||||||||
Benefit for income taxes | (532 | ) | 541 | (4 | ) | 9 | 15 | |||||||||||||
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Loss from continuing operations | £ | (8,954 | ) | £ | 2,457 | £ | (6,497 | ) | $ | (10,751 | ) | |||||||||
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(3) | The amounts in this column represent pro forma adjustments for Acadia’s completed acquisitions of two facilities from United Medical Corporation and Cascade Behavioral Hospital (neither acquisition was individually material), actual results for the periods presented, up to the acquisition dates. |
(4) | Reflects adjustments to reconcile U.K. GAAP to U.S. GAAP per the footnotes of Partnerships in Care Investments 1 Limited financial statements including (i) a property and equipment impairment charge and related depreciation expense adjustment, which would not have been recorded under U.S. GAAP; (ii) amortization of an interest rate swap, which would not have been recorded under U.S. GAAP; (iii) a share-based payment charge, which would not have been recorded under U.S. GAAP; and (iv) the tax impact of the previous adjustments. |
(5) | Represents cash not acquired as part of the acquisition. |
(6) | Reflects elimination of equity accounts of Partnerships in Care. |
6
(7) | Represents adjustments based on preliminary estimates of fair value and the adjustment to goodwill derived from the difference in the estimated total consideration to be transferred by Acadia and the estimated fair value of assets acquired and liabilities assumed by Acadia, calculated as follows: |
Estimated cash consideration | $ | 661,981 | ||
Cash and cash equivalents | — | |||
Accounts receivable | 7,641 | |||
Other current assets | 5,409 | |||
Property and equipment | 607,748 | |||
Intangible assets | 3,000 | |||
Other long-term assets | — | |||
Accounts payable | (6,410 | ) | ||
Accrued salaries and benefits | (6,292 | ) | ||
Other accrued liabilities | (8,209 | ) | ||
Deferred tax liabilities—noncurrent | (19,079 | ) | ||
Other long-term liabilities | (6,284 | ) | ||
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Fair value of assets acquired and liabilities assumed | $ | 577,524 | ||
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Estimated goodwill | $ | 84,457 | ||
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The acquired assets and liabilities will be recorded at their relative fair values as of the closing date of the acquisition. Estimated goodwill is based upon a determination of the fair value of assets acquired and liabilities assumed that is preliminary and subject to revision as the value of total consideration is finalized and additional information related to the fair value of property and equipment and other assets (including intangible assets) acquired and liabilities assumed becomes available. The actual determination of the fair value of assets acquired and liabilities assumed will differ from that assumed in these unaudited pro forma condensed combined financial statements and such differences may be material. Qualitative factors comprising goodwill include efficiencies derived through synergies expected by coordination of services provided across the combined network of facilities, achievement of operating efficiencies by benchmarking performance and applying best practices throughout the combined company.
(8) | Represents a $119 increase in cash as a result of the planned acquisition of Partnerships in Care and related financing transactions. Acadia expects to issue $300,000 of incremental term loans through an amendment to its existing Amended and Restated Credit Agreement, or Incremental Term Loans, borrow $56,000 on its existing revolving line of credit and issue additional common shares for estimated net proceeds of $325,000. Based on the assumed public offering price of $46.29 (the closing price of our common stock on June 6, 2014, as reported on the NASDAQ Global Market) the number of shares to be issued is 7,344,998 with a par value of $0.01, which results in additional common stock of $73 and additional paid-in capital of $324,927 and includes estimated underwriting discounts and other offering expenses of $15,000. The sources and uses of cash in connection with the acquisition are expected to be as follows: |
Sources: | ||||
Incremental Term Loans | $ | 300,000 | ||
Revolving line of credit | 56,000 | |||
Equity issuance | 325,000 | |||
Uses: | ||||
Cash consideration | (661,981 | ) | ||
Debt financing costs | (11,100 | ) | ||
Acquisition costs(a) | (7,800 | ) | ||
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Cash adjustment | $ | 119 | ||
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(a) | The effect of estimated acquisition costs are not included in the pro forma condensed combined statement of operations for the year ended December��31, 2013 and three months ended March 31, 2014. |
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(9) | Represents the elimination of debt not assumed in the Partnerships in Care acquisition, the issuance of Incremental Term Loans and borrowings under the existing revolving line of credit as follows: |
Current | Long-term | Total | ||||||||||
Elimination of debt not assumed | $ | — | $ | (1,345,323 | ) | $ | (1,345,323 | ) | ||||
Incremental Term Loans | 3,000 | 297,000 | 300,000 | |||||||||
Revolving line of credit | — | 56,000 | 56,000 | |||||||||
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Adjustments | $ | 3,000 | $ | (992,323 | ) | $ | (989,323 | ) | ||||
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(10) | Represents the adjustments to Partnerships in Care’s depreciation and amortization expense as a result of recording the property and equipment and intangible assets at preliminary estimates of fair value as of the date of the acquisitions, as follows: |
(a) | Completed acquisitions: |
Amount | Useful Lives (in years) | Monthly | Year Ended | Three Months | ||||||||||||||||
Land | $ | 137,483 | N/A | $ | — | $ | — | $ | — | |||||||||||
Building and improvements | 455,764 | 30-50 | 950 | 12,168 | 3,042 | |||||||||||||||
Equipment | 14,501 | 3-10 | 192 | 3,048 | 762 | |||||||||||||||
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15,216 | 3,804 | |||||||||||||||||||
Indefinite-lived intangible assets | 607,748 | N/A | 1,142 | — | — | |||||||||||||||
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Total depreciation and amortization expense | 15,216 | 3,804 | ||||||||||||||||||
Less: historical depreciation and amortization expense | (21,173 | ) | (5,767 | ) | ||||||||||||||||
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Depreciation and amortization expense adjustment | $ | (5,957 | ) | $ | (1,963 | ) | ||||||||||||||
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(11) | Represents an adjustment to interest expense to give effect to the Incremental Term Loans based on an estimated interest rate of 4.25% and to borrow $56,000 on its existing revolving line of credit and to eliminate interest expense on Partnerships in Care’s historical debt, which will be extinguished at closing. Interest expense includes related amortization of $1.6 million of deferred financing costs for the year ended December 31, 2013 and $0.4 million for the three months ended March 31, 2014. |
Year Ended December 31, | Three Months Ended March 31, 2014 | |||||||
Interest related to Incremental Term Loan | $ | 12,750 | $ | 3,188 | ||||
Interest related to borrowings on revolving credit facility | 1,680 | 420 | ||||||
Interest related to amortization of deferred financing costs | 1,586 | 396 | ||||||
Less: historical interest expense | (77,373 | ) | $ | (20,809 | ) | |||
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Interest expense adjustment | $ | (61,357 | ) | $ | (16,805 | ) | ||
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An increase or decrease of 0.125% in the assumed interest rate would result in a change of $375 for the year ended December 31, 2013 and $94 for the three months ended March 31, 2014.
(12) | Reflects the removal of acquisition-related expenses, related to Acadia’s completed acquisitions and Partnerships in Care, included in the historical statements of operations. |
(13) | Reflects adjustments to income taxes to reflect the impact of the above pro forma adjustments applying combined U.S. federal and state statutory tax rates and U.K. statutory rates. |
(14) | Represents adjustments to weighted average shares used to compute basic and diluted earnings per share to reflect the effect of an estimated 7,344,998 shares of common stock to be issued by Acadia in this offering, which resulted in an increase in weighted average shares outstanding of 7,344,998 shares for the year ended December 31, 2013 and the three months ended March 31, 2014. The proceeds from such offering of common stock are to be used to partially fund Acadia’s planned acquisition of Partnerships in Care. |
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