ACHC - Earnings call transcript Q3 2018 | Acadia Healthcare Company, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

Brent Turner

Good morning. I'm Brent Turner, President of Acadia Healthcare, and I'd like to welcome you to our third quarter 2018 conference call. To the extent any non-GAAP financial measures discussed in today's call, you will also find a reconciliation of that measure to the most directly comparable financial measure calculated according to GAAP on our website by viewing yesterday's news release under the Investors link. quarterly contain Litigation within including Reform others, Acadia's may the meaning statements, call performance regarding Securities financial Private Act expected conference forward-looking and the statements of among for This XXXX annual beyond. and of XXXX,

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

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

Joey A. Jacobs

thank third you with Good morning, call. for our being and today quarter us for conference

quarter. revenue outlook have growth I'm each third In for in Acadia produced going some members David forward Duckworth, remarks your of the question. our the addition and for to line here I we'll Chief open about Brent, quarter of other David the in team. our with today Financial solid our and and for Officer, XXXX. executive Then, third X.X% management

adding new the added by beds months was to last facilities in first X.X% the We and and same-facility Our the and than quarter. to to This over XXX of add more XXX revenue operations total primarily mainly organic including in growth, a the continues XXX third our quarter of the expect beds nine XXX increase growth existing months. be to during in year, XXXX. for increase XX result beds the we driven

included patient with increase same-facility increase patient per to in total X.X% day. X.X% X.X% and a quarter, U.S. days XX the increase patient patient same-facility X.X% increased revenue growth and in points Our in in revenue a basis a revenue for day. a U.S. revenue increase X.X% EBITDA increased XX.X%. days same-facility per margin X.X%

XXX XX.X% in per in days For UK, patient increase same-facility X.X%, for was of X.X% Same-facility and our the revenue patient quarter. up revenue consisting X.X% the to increase basis a points margins declined day. operations EBITDA in

affected Our the census operations were in UK and higher-than-expected by expenses. a lower operating

quarter with agency higher our difficulty a were nurses from the experience staff experienced other continue costs shortage ongoing to primarily in labor. we were operating dependence third to level healthcare The on margins census business the cost, to cost trends, operating which did existing the fill clinical declined clinical and census staff due and us as not its and Our recruiting absorb nursing and affected. positions. NHS. Similar Because higher to labor sufficient earnings adversely wages to agency reach our our and higher, in to referrals our those requires industry significantly decrease we utilize

and third shortage acquisitions Oklahoma. operates Treatment following We nursing two for from Mission end with which Nevada, One expect Arizona clinical We treatment for the comprehensive substance for with centers locations agreements the and quarter. in signed continued difficulties staff nine the foreseeable resulting definitive California, was the abuse future. of

in morning and agreement your Acadia. a an We Whittier time acquire hospital psychiatric inpatient The also Thanks XX-bed for your announced to in Massachusetts. interest Pavilion, Haverhill, this

financial our in detail. Duckworth to and more David guidance discuss here's Now, results

David M. Duckworth

quarter the million the increase $X.X for of $X.XX compared third quarter third company's quarter XXXX quarter for share was million Thanks, XXXX. for XXXX earnings the $X.X excludes $XXX.X the year. of the of quarter Acadia's third third the The was with of million for XX.X% $XXX.X from adjusted the EBITDA the of million expenses with for XXXX, Joey, of an revenue ended of third company's were Adjusted for of The of consolidated quarter for quarter morning. months September year. third million, were $XXX.X last operations and third $XXX.X per XXXX good transaction-related million EPS same $X.XX X.X% Adjusted from compared flows the period or last $XXX.X million and for cash operating XX, XXXX revenue. XXXX. for continuing nine

news for we the and as financial the in for months the and first expectations our XXXX our guidance guidance, adjusted announced based year release, on fourth of nine financial our have to performance quarter. yesterday's Turning company's the

is to full-year over in and guidance revenue adjusted now of $X.XX some a final EBITDA turn follows: million million; $X approximately prepared billion; comments. I'll range as of morning, range $XXX This remarks Joey concludes to Our diluted this our it $X.XX. in of a adjusted and for EPS to $XXX

Joey A. Jacobs

you, Thank David.

to we Before for to a Cathy now rumors speculation. on to this today we your That's we the I all address private not results. ask comment questions. rumors or that on ask focused Acadia keep on approached reports will our It floor you will your open recent press so topic, being say company's regarding Q&A, questions equity and I briefly policy into by firms. move want the is our

Operator

to if J. everybody. Credit J. Thank (USA) - you. Hi, Securities Rice Credit LLC A. could. Rice questions, A. And two Suisse we'll Suisse. Maybe I of go first

First some give comments any to company that aftermath there's it regulators, the ask to been in in I your been is up interaction also wanted hasn't seem facing. any to whether chance then And that. been popular there that press all, just also mainly with case. I And you because to picked think a give regulatory about to issues would in to like the get didn't the but give you in press. ask the indeed change reporting, about you'd the has financial of this maybe quarter

Joey A. Jacobs

the all been not have regulatory in calls facilities, made J. resolved earnings concerning this have our and I've previous admission A. that at those Referring to statements issues as facilities holds few those do of a Sure, announce of time. of pleased I'm to that

As we're large with large number a facilities. a company A. you J., of know

question doing. So the be it want talking their admission at and incident in their allocations go bad should team this or - or that that census. they the as an for to can are that inspection But could is think. what Rice capital about removed is an the it sort you make we remarks Credit doing – differently? to of building a really I you'd their your back to confirm if potentially that are? said the the indeed the U.S. UK Does you are anything impact be have investigation an time, It any what A. J. like then facilities prepared to and other go been Suisse I repositioning (USA) instigated. portfolio to ask least the those operations. market, not issues given say experiencing occur Does well. while. going And think more to somehow, for you And can what do LLC there what try that But the sounds Okay. report Acadia still your obviously that that All this okay, pleased about to year, over you really ones doing you're was have I'm you I flavor right. on license overall we've respect management UK does options have about about Securities minimize not holds with this be for, operations make give the persist, know to seem us some pretty think don't at was on

Joey A. Jacobs

J. A. Sure,

grows. UK, nurse in the continues First, and absolutely, the actually shortage

continuing So forward. we see going that occurring and

have the rebound the we do on those small be. that guidance. the expect wanted census But in might us lower retool the reason the grow NHS hopefully for the beds coming We it that census, to we that's online could so patients. take So to do however to

patients, positive nurse would but when that be agency of us. be will a staffing get those unfortunately, However, to incremental cost, part it still we

But the the to to in have pretty UK. as U.S. bit we tougher UK, the capital deployed the stringent little deployment. a and will a capital So, policy capital UK now it about it's whether as far be in for deployment be

a here capital. seeing the U.S. use of the of are our for in We lot activity

So about deploying a careful be take day (USA) to capital LLC that Thanks yes, we just at more J. UK. we'll will a Rice Okay. right. A. a time. Suisse the But Securities lot. All Credit -

Operator

Merrill America Our next from of Kevin Lynch. of Fischbeck come question Bank will

Kevin Mark Fischbeck

All right. Thanks. Great.

right of it profile the you that So, this those is at the quarters? of quarter the UK next think given for think margin way some several I comments, kind to that you in guess, showed about least the do

Joey A. Jacobs

is But is all next quarter, the bit the Well, it working Kevin, it, staff think a Yes. it. sure. concerning clinical that and tough growing UK I team go providers on lower? it But little shortage. profile for this healthcare making nurse for is for Could across the

continue does growing to the through our on to to get the think. and everybody. us to would margin the incremental put would and we pressure improve goal that But be census, there So have census, I

Kevin Mark Fischbeck

add said little guess, them happened? referrals. you bit I Then, decrease talk had NHS to about you was You lower Then, to you end, – what asking to that Okay. a the also can about because beds. talked a that in census take more

issue and in happened talk how the it fix takes quarter you an or itself? why can long So, was what that about to

Joey A. Jacobs

yes, this have us build budget do. and us are quarter, the and And pessimistic NHS and in beds over should has the in census in those months the those online. come been beds for for services coming Well, certain year, what UK more we are the our would the during holiday asked to

NHS patients so, was but to of to the meet both occurred. The us in is softer, those the asking needs census the things the beds build UK. of And

Kevin Mark Fischbeck

Okay.

in? So of kick when start to do new those kind referrals

Joey A. Jacobs

existing new and does just UK Kevin, and to already and have of we're saw that But predict predicting can't see. grow. base what But to we more I referrals the wants it hope third the the But grow, to some fourth in wait grow. doesn't. want same of focused we quarter that's little. – the that the for on. soften Everybody it that we're expect it to we'll does I a quarter. We the I census have now, in

Kevin Mark Fischbeck

a in not question, need number. higher the get to What actually same-store labor growth basis do maintain bad last on like pressures, same-store need think number, be to maybe to a just then is a you UK margins? you given And number to the obviously but X.X% you because able

Joey A. Jacobs

know do we won't it. X% Well,

the to are be to got to frankly, more have quite pay environment enter worst this system. of we're the problem. this some going through they think, best who into we think, more are Kevin, on They have to agencies. more relief – actually, I NHS, staff, of for we're the to nurses. open having The clinicians There's any thousands the nurse And of for So going premiums the have I the of going providers. positions nurses, have,

has the salary grow really can the that the earnings, hopefully, fixed. and wages, issue. margin marginally in to it's So improve be the census but We and that's

Kevin Mark Fischbeck

Thanks. All right. Great.

Operator

will from Capital of take Borsch Matt We a BMO now question Markets.

Matthew Borsch

Yes. Thank you.

on of UK. here developments the you to be commitment does top impact a a in that the on Just its they're of ocean the these one closer the of your trends given uncertainty as are Brexit ability, about in bit just the Can guess, away, mean, the given unfavorable little you talk an and into impact of I and top questions XXXX? market, ability U.S.? in UK management's you more is, I look that as addition results, your to way level to

Joey A. Jacobs

from hospital (XX:XX:XX) have XX We us office. here the corporate minutes at

eye over keep detail from is keep But can what's basically an issue. happening that know my us facility up-to-date we the distance to an have I UK They So and on really office. not enough there.

margin, that's Kevin a than but the a what okay. good in a that expect, be number margin. we EBITDA not strong earlier, pretty XX% mentioned as X% And It's a growth U.S. here more would So that's revenue

can we and to we have some the had today positive than expense the on and doing storm we just numbers side weathering So make asset a stronger everything we're yesterday.

Matthew Borsch

terms for it. of Got labor respect had ability with got it, you in was just makes last talked to was it just countries sense. to the is or and what quarter had how helping, quarter be the something in talked from that Has situation tougher about has half? about that That bring changed – you changed anything you last that than hoped it's the second the would Commonwealth

Joey A. Jacobs

is It just tougher.

Matthew Borsch

Okay.

Joey A. Jacobs

It tougher. just is

Matthew Borsch

Thank you.

Joey A. Jacobs

And yes, the tougher. is Thank government, this you.

Matthew Borsch

you. Thank Yeah.

Operator

Securities. of we've Wells Fargo next Peter And got Costa

Peter Heinz Costa

the with to you're to let's it just Couple believe beds Back same Thanks. the referrals questions, believe are in somewhere demand? NHS any less believe do test you, staying start you going competitors, do slowdown with to else, you Hi. do is you area. referrals just or those

Joey A. Jacobs

happen So hope too, we the everybody's conservative a hope too. we're will to NHS down them the funding that going third of holidays, at us. a pick slows that bit be And, funded quite quicker they're think pace time it up to and getting keeping during maybe frankly, of don't it historically, competitors. will about referrals. that the But, getting to did we them they before the into pace. once getting I just again, so is system and quarter, this the in them get speed the ready but longer little referrals through because head back, we're the system the to patient in trying the individual And

So over the UK. working to those we're on things referral in the and talking are sources the

Peter Heinz Costa

Okay. recent talk has of selling UK you your Then, perhaps down or that of in of private that talk which ago. terms been the company assets, to facilities the the some taken in streams impacted time Did your filtrate management talk question, being the the you, second impacting of the that NHS more ever talk their so or business? to perhaps conversation referral into UK extended

Joey A. Jacobs

that I – one's to think No brought do attention. didn't I so. not my

Peter Heinz Costa

business, you Okay. For what could to can have And the here? us you're then, forward concrete facilities lastly, if consolidate going things margins you perhaps. about don't improve the example, doing give some you

that about, the to you're talk you things? going steps mechanism can concrete is some how there of So, fix

Joey A. Jacobs

Yes.

turn facilities be not scenario, doing that number of we case whatever, them XX would will facilities, we're the than what we the decision We're put would at to would We could facilities to there. together look a and make we we too. if can't performing decided it adverse with around maybe we or we But do have or lower looking XXX And more at and lower that primarily, and performing close want that somebody if facilities them that, can worst we would them. them. close then

Peter Heinz Costa

fit numbers those performing have to lower of many how target you list? that Do facilities

Joey A. Jacobs

We're right through that process going now.

Peter Heinz Costa

there. you Thank much. it leave I'll Okay. very

Operator

from And now, our question will Tanquilut come from Brian Jefferies.

Brian Gil Tanquilut

just back to go the changed...? Joey, sorry what but to UK,

Joey A. Jacobs

you No, can't Brian, back the go – to can't you UK.

Let's talk about U.S. the

Brian Gil Tanquilut

not. will I (XX:XX:XX)

Joey A. Jacobs

...X%.

Brian Gil Tanquilut

quickly UK, drop in be ... the question. But even that margins there'll just Yeah. No, really big the in

Joey A. Jacobs

Sure.

Brian Gil Tanquilut

year drop, to like it saw ...we challenges XX%. But staffing. ball your big really it had seemed really the eye and dropped you in XXX-basis-point last QX margins on the just and the on of closely seemed last few quarters

you blindsided in what So, the quarter? here

Joey A. Jacobs

the be And was expectation. discussions to our the up more nurse up. on more �� that two the But It use takes census, once then, cover expense there. patient. use costs UK census additional then, I the are we that hit it was nurse. And The – we had things softer the just operators, of just fine utilized the base expense to quarter, had agency we in a the ramp And us third than beds those our the we it census on for new census will softening more great. with too that agency nurse nurse we'll but think the agency the opened of importantly was agency up, little the while that to ramps

Brian Gil Tanquilut

all business the I'll right. – U.S. then Got And now. it. shift to

the seemed facility are to about So, maintain ratchet exiting same-store you're you number thinking then, this or that same-store here it thinking are in volume ability from XXXX you markets U.S.? pretty any up like reports or that some And how How one? good closures quarter. news about in impact trend, potential your

Joey A. Jacobs

more one that time, Say Brian.

Brian Gil Tanquilut

Yeah.

sustainability ability same-store how think reports your the quarter, stronger the I were markets that or about follow-up are some then, this you And ratchet so the thinking volumes of up? So there your to U.S. you're exiting that that are in just, is

impacts to hear how XXXX. that want and Just thoughts that on your

Joey A. Jacobs

absolutely. Sure,

into same-store this those to that to beds. at coming group we've built de online and First, we we've novo facilities. is and addition absolutely, And those be facilities in facilities the of joint going beds have a that building the the key will got the venture beds got

that U.S. census And that think more is facility, is you So see get grow I X%, it same-store it And to us, than more in that than X%. wants to to good grow like quarter. X%. wants the to for the looks a goal saw to is third the closer

the up, ratcheting us here exist. So potential for your think does to as I higher comment grow to about census the

Now, the outpatient made to to we reimbursement. us we close state is, we state they the not due in a we reimbursing closing might and or an the only be of I'm that that cut closing have are thing business aware decision that had

business make and So it that. reviewed didn't model the work we

state, are right in it that so, was those closing And do. services to decision outpatient the we and

Brian Gil Tanquilut

All right. Got it. Thanks, Joey.

Operator

will come from Markets. Capital RBC Our next question Frank of Morgan

Frank George Morgan

morning. to what about Good when me to we don't but about go kind more wrong, I there. think I'm start of that saying last don't of we question little from we in you're – Obviously, if UK, detail. the expect I improvement XXXX should back thinking tell lot a a want

U.S. for is, acquisitions. my either expansion operations but in base even on today, through So in you your your also how can perhaps of consolidated compensate question margin terms that

on perhaps to accelerate growth can maintain how these about And to-date. of bit acquisitions you of if overall Thanks. how enterprise. in offset U.S. some you've us little higher specifically growth the little give a So in comment you then, kind maybe UK, could the you a announced growth color of lack the even could

Joey A. Jacobs

in the And beds secondly, fill that will key keep minimum, knocking that increase Frank. a if same-store to that we're issues regulatory about occupancy will facilities a was that U.S. the building. can in here minimum, margin. The those the to to that. that J. A. absolutely They're had numbers If we and the that our we year, can Sure, keep drive that on wood. this talked to me is improve

we and on good actually can improve and So little an have we the here execute luck we'll here same-facility that in have a census opportunity if the basis. grow the U.S. margins that the

can acquisitions on UK. months mention one as the been heard of acquisitions Hospital. it as offset like And up five have be call last And some these acquisitions, had Massachusetts, Acute would that some probably we So analyzing the making then is the year. you the the this we way that probably facility and the for we far me in help we

we had know, in have CTC you have And quite and a As side in on years retirement. for transaction was then penetration ago, also. our And is wanting planning owner one the Massachusetts started was CTC joint ventures to to Massachusetts. of the fortunate start acquisition, Mission single large we that this and business this were a that several it, grown the the acquisition, bit we his in that team negotiate of able had

they So, markets. both us and very businesses we fit well existing think in

Frank, there? So, still good are you acquisitions.

Frank George Morgan

Yes. sorry. I'm

terms we number just from a get sort beds? how you've will and beds potential a if where these can you about there have on like much you had were fill In trying from many underutilized talking potential these in growth EBITDA how to available growth embedded your to on operations issues is of be we're U.S. up, number that of them do

Joey A. Jacobs

We're working our have process We're we number, that project, the of do to on have budgets. in in don't I'm ready sure, that. that. the doing analysis, XXXX I Frank. this getting

more in be would for that that I able in So, what are assumptions first the quarter about XXXX. about to the speak

Frank George Morgan

do one, or last I'll you in acquisitions XXXX hop. of going XXXX you more where to think the retrench you. U.S.? a pace sort in the feel acquisitions? make accelerate would be of would a what got you the Would year and is UK be you've of it Thank One Okay. in And

Joey A. Jacobs

acquisitions I We'll number. opportunities. year. it U.S. carefully we one more still to is at next haven't deploying Adequate, mean, the a not number time of will which going a The them our capital, pegged and the be just we – make means take will

looking a that ventures time. just have we're we'll one at several joint take so at, We it

question – person? Next

Operator

Gupte And Partners. Ana we'll of go to Leerink now

Ana Gupte

Hey, thanks. Good morning.

Joey A. Jacobs

Good morning.

Ana Gupte

or drivers The The residential great. and that yeah. mix really around XXXX? looks is what patient, volumes or it acute into per Thanks, sustainability look to a going they payor the understand revenue addiction and also more of psych were, mix good, underlying what's versus wanted the issue

Joey A. Jacobs

this going take question. let to David I'm

David M. Duckworth

added key Yeah. really increases in for payor per and all revenue driver increases. seen different, part the be of, of Ana, key categories so the year. acute small a would you Medicare, mix is this driver payor is from that driver beds, the key more but is we've the payors, day have acute the as increases we our know, commercial, becoming That rate Medicaid, growth stronger, across be the would

Ana Gupte

Okay.

got it. So underlying rate increases,

then, had – get patient the the good On here, offset it's little pressure and length of the of obviously been you volumes, bit a day on you've by stay, so growth.

accelerate One a of your of kind while talked your shifting manage about to that this place you stay continue a the much floor? length business for peers pressures a they where and about is likely of pretty reached Medicaid book quarter. this mix or reaching of for to have has Is that talk

Joey A. Jacobs

does XX versus Ana, down this is this this the stay is what year last acute of nine last acute this is as year days more for length days nine the or The it stable. year. of last stay the And RTC lower is days this very was Joey. is days. basically it of patients mathematically driving same length the quarter, stay year versus of length is XX patients. it was for What's is on The The specialty year. and

Ana Gupte

right. All Okay.

Joey A. Jacobs

is So our length internally. of issue an stay not

Ana Gupte

recruiting, as competition the about mean, that private they the a there some too time They entrants U.S. anything was labor but understand it's volumes the some inflation to is that talked good maybe you And Again, wage your compared then comfortable there the to have also UHS. investing just modest anyways. I on wage going around one that or on U.S. hard pressure your the might from success that pressure last should issue PE in impact companies, had same really, be or you've forward okay. margins not are suggest one? It's and very I you, not on an the think new for did Yeah, very side. this markets your was are will

Joey A. Jacobs

Well, been, there'll be Ana, the comfortable. pretty we will X% have address we be increases. of with feel a and able do all because those just we're as to next being where to we – merit need, through think of are few We isolated be as to to in go one-offs. raise there markets X% we that not going our markets able There year in wages – live to and might we different those something fund staff has

approach And we'll that's how so, XXXX.

position and different budget next about in once to markets, we're that's our good the X% okay. X% to feel that markets. do we But, we that. probably We'll have for we're we have within year right, in. hope So and rural again, more stay But

Ana Gupte

it. much. so Thanks it. Go Appreciate

Operator

will We from question next our take James. of Raymond John Ransom

John W. Ransom

morning. Good

just hypothetically are over team valor refocus Do or Let's kind to there that multiples for you the buyer the at is have if maybe there's for of as trading on say market look any there? part UK assets and better feedback U.S. to maybe the out decides a of what see

Joey A. Jacobs

out no-comment John, I'm to going answer. pull the

John W. Ransom

try. I had to

Joey A. Jacobs

Okay.

John W. Ransom

year, that's some ago? last The us year. can up, give year a to ballpark but number range gone part percentage versus used up Obvious you latter early thing, of agency you this give part other of has an that how of labor much number,

Joey A. Jacobs

will David that give you. to

David M. Duckworth

under we And total quarter total year. year third compared XX% Yeah. That's of cost, percentage the labor XX% John, were have as XX.X% year. as and mentioned, agency we higher revenue, labor a cost. last we quarter of this seen, our last at just in a to labor this XX% as percentage

John W. Ransom

like what's of the of is what's something cost, or every the rule So, double the it X%? that Is thumb thumb? rule it David,

David M. Duckworth

For of the X% contract every increase.

John W. Ransom

I'm sorry.

cut you think there. out I

Joey A. Jacobs

per to a agencies We're a having hour. premium XX% the to nursing pay

John W. Ransom

you. Got

Okay.

Joey A. Jacobs

average. On

John W. Ransom

will to U.S., think four switching the then, lastly, And how next the should in over new come three we the quarters about online? U.S. beds how or

Joey A. Jacobs

that Similar give I I David that how to think. be this offline, to they've me. to you with glad schedule done don't John. year, have will

John W. Ransom

Okay.

Joey A. Jacobs

But similar I going to think this it's to year. be

John W. Ransom

And losses can or net materiality estimate is hit a have not will do that it just absorb? hit year ever from novo, – – are you an does the point but of de startup ads, something brand-new next you facilities, that

David M. Duckworth

this is David. John,

I think we have months. XX think over de and as next year several we about had last novos the

been We have have and online losses I But as as see about facilities we we coming than loss just four facilities it as different these do think and next do incurring has new projects of four think mature, other year. XXXX number less would projects potentially XXXX. a that in it continuing be we

John W. Ransom

What's approximately? your number for XXXX,

David M. Duckworth

Well, for from the full-year, there's approximately $X million of losses that group facilities. of

John W. Ransom

so Thanks much. Got All right. you. Okay.

Joey A. Jacobs

Thanks, John.

Operator

to We of JPMorgan. Taylor will Gary now go

Gary P. Taylor

questions hear the about are I two DSO left. you miss my guys I answered, Hi, of cause talk that? and Most that? good the Did of just growth morning. Did

Joey A. Jacobs

hear couldn't you. I

David M. Duckworth

that Gary, it the this up is we of facilities – part growth is David. The DSO de have. novo

September, just, look we improve Part of Part to as We and increase month in XX. We novos have that of we from at it de calendar, that's should return. the as well. fourth we timing XX of the see part in is year the have the this expect of that to first the timing. quarter of that seen is just our just payments DSOs did

facilities. for So the up novo our it's built then timing capital of month de and collections working being the between September in

Gary P. Taylor

free novo context CapEx had you've question, of look from lot for of bring capital just be the in you you on CapEx, of the next guys bed don't about opportunity you the then, do does cash have probably or the large de at I trajectory guidance bed question driven cash growth over case CapEx if the of a see over planned spending, couple, ops of When ops talked sort continue my Got spending several obviously, does majority XXXX, that recall years. an roughly flow it. up? And in and to there's XX% second asking down of yet CapEx the your to that been CapEx but growth from been last cash that I'm invested

Joey A. Jacobs

be with modeling grow with continue the and we to that company or doing I ventures some the next if super-markets year and Gary, to in that have think, we'll do opportunities whatever. that you're to de these novos joint

So year. our based novos somewhere between same. the beds get XXX spend And finalized I for think on stay build about of will I the just think number to we the we'll de that XXX CapEx hopefully

that's So our right thoughts now.

of of have Now, because we'll be number and allocations our the initial able budgets end better the at a year done we'll – capital made. to give call, the you

Gary P. Taylor

Thank it. you. Got

Joey A. Jacobs

Thank you.

Operator

a We Ralph question from Citi. take will of Giacobbe now

Ralph Giacobbe

Thanks. Good morning.

Just me quick you stay well. dynamic. was is ask stay just for up. little the a of down, a think bit but of Maybe in different a ones obviously UK, a length were of want It's to of about if kind quarter. one-off admissions I as couple length this

on Just sort and out if wanted any of details to there's that, there. get anything you call

Brent Turner

a really the the service have higher a also, given mathematically, mix admission just year. there. a just But lines, within stay. period seeing different far mean, of that's you're Brent. we're patients to the in the of have any as change length over service This just Ralph. patients Hey, lighter ALOS. It's going you last each really of similar And I of a lines, as not mix trends is the where to what's across the extended little U.S. activity,

Ralph Giacobbe

question think, right. the back staff. talked I bring in to I to about Fair around had and you And go ability past Brexit then, earlier, it offshore think enough. All I a to Okay. relief the was regulatory potential, in want

still around works? just Is stands? timing provide that does in the specific sort can away, go any or where So kind where that stand? is that that of that of you there Does

Joey A. Jacobs

the made have have can the that requirement they there's we Well, UK get a certification a we from becoming But that you countries. have staff some and change in harder the psych in where requirement thought. teaching. And not maybe same you're now nurse, Commonwealth countries if also, is of Commonwealth their unique the do than initially that

that appears them, and them actually course. So we educated, government have would get them canceled the there if educate that got we it here, then to

for So it's made it us. tougher

Ralph Giacobbe

any of broad-based and me, whether then, XX% Okay. shouldn't smaller the the the really there facilities are for disproportionate pressure in it sense driving And think the a just is XX% that subset driving break and down of of All in pressures, to a UK, right. that's we or give is way UK? lastly it's

Joey A. Jacobs

Well, by best XX the on. the The on – majority that's being expense can of is I you I think expenses, the nurse the vast facilities. nurse agency, probably XX driven agency give that large one

Ralph Giacobbe

Thank much. right. All Okay. you very

Operator

that And does with today's question-and-answer session. that, conclude

to like for Joey turn closing comments. to would or back So additional Jacobs things any I

Joey A. Jacobs

us you, Thanks today for again Healthcare. Thank Acadia with Cathy. for and being in your interest

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

Operator

participation. and gentlemen, again, your And again you for conclude ladies that thank does call. We today's

disconnect. may You now

Brent Turner	Acadia Healthcare Co., Inc.
Joey A. Jacobs	Acadia Healthcare Co., Inc.
David M. Duckworth	Acadia Healthcare Co., Inc.
A. J. Rice	Credit Suisse Securities (NYSE:USA) LLC
Kevin Mark Fischbeck	Bank of America Merrill Lynch
Matthew Borsch	BMO Capital Markets (United States)
Peter Heinz Costa	Wells Fargo Securities LLC
Brian Gil Tanquilut	Jefferies LLC
Frank George Morgan	RBC Capital Markets LLC
Ana Gupte	Leerink Partners LLC
John W. Ransom	Raymond James & Associates, Inc.
Gary P. Taylor	JPMorgan Securities LLC
Ralph Giacobbe	Citigroup Global Markets, Inc.

Acadia Healthcare (ACHC) 6 Nov 182018 Q3 Earnings call transcript