Attached files
| file | filename |
|---|---|
| 8-K - RESULTS OF OPERATIONS AND FINANCIAL CONDITION - CRC Health CORP | form8kfy09q3.htm |
Exhibit
99.1
NEWS
RELEASE
FOR
IMMEDIATE RELEASE: November 16, 2009
CRC
Health Corporation Reports Operating Results
For
the Third Quarter and Nine Months Ended September 30, 2009
CUPERTINO,
CA, November 16, 2009 - CRC Health Corporation ("CRC" or the "Company"), a
leading provider of substance abuse treatment and
youth
services through its wholly owned consolidated subsidiaries, announced its
results for the three months and nine months
ended September
30, 2009.
The
Company has two operating divisions: recovery division and healthy living
division. The recovery division provides substance abuse and
behavioral
disorder treatment services through residential treatment facilities and
outpatient treatment clinics. The
healthy living division includes
programs
and treatment services for adolescent youth as well as treatment services
for
eating disorders, obesity,
and weight management serving
all age
groups. Adolescent and youth treatment services include therapeutic boarding
schools and educational outdoor programs for
children and
adolescents
struggling with
academic, emotional, and behavioral issues.
Consolidated net revenue
for the three months ended September 30, 2009 decreased $8.8
million or 7.1% to $114.7 million compared to the same
period
in 2008. For the three
months ended September 30, 2009, consolidated operating expenses decreased
$124.5 million to $119.9 million, or 50.9% compared
to the same period in
2008. For the three months ended September 30, 2009 adjusted
pro forma earnings before interest, taxes, depreciation and
amortization
("EBITDA") increased $1.1
million, or 3.7%, to $30.6 million compared to $29.5 million during the same
period in 2008.
For the nine months ended September 30, 2009, consolidated
net revenue decreased $25.2 million or 7.1% to $330.9 million compared to the
same period
in 2008. Consolidated operating expenses for the nine months ended
September 30, 2009, decreased $135.0 million to $309.4 million, or 30.4%
compared
to the same period in 2008. Adjusted pro forma earnings for
the nine months ended September 30, 2009, adjusted before interest, taxes,
depreciation
and amortization ("EBITDA") decreased $2.6 million, or 3.4%, to $75.0
million compared to $77.6 million during the same period in 2008.
During
the three and nine months ended September 30, 2009 management continued
execution of the restructuring plan initiated in fiscal 2008
(the
"FY08 Plan"). The purpose of the plan is to further align the Company's
resources with its strategic business plan through workforce
reductions,
facility
consolidations, and facility exit actions. Actions under the
FY08 Plan are focused on facilities which have been
negatively impacted by the
economic
crisis and the depressed credit markets. During the three months ended
September 30, 2009, the
Company implemented additional reductions
in
employee positions impacting all divisions and closed one facility within
the healthy
living division. For the nine months ended September
30, 2009
facility
exit activities consisted of two programs in the Company's
healthy living division and one facility within its recovery division.
Facility
exit activities
under the
FY08 Plan are expected
to be substantially complete by the end of 2009.
At
September 30, 2009, the Company had approximately $4.1 million in liabilities
related to the FY08 Plan which consisted of employee related
benefits and
minimum
lease commitments for certain of its facilities. Remaining restructuring actions
may include further division consolidations
and facility exit actions
which are
expected to be substantially complet by the end of 2009. Facilities which have
been held for sale, or otherwise disposed as of September
30, 2009
are
reflected as discontinued operations in the Company's
unaudited condensed consolidated statements of
operations and in its unaudited condensed
consolidated
balance sheets.
1
Historical Financial
Results
Three Months and Nine Months Ended September 30, 2009
Consolidated Financial Results:
Recovery Division:
Three Months Ended September 30,
2009 Compared to Three Months Ended September 30, 2008
|
|
Net
revenue decreased $0.3 million, or 0.4%, to $78.5 million for the
quarter from $78.8 million
from the comparable period in the prior year.
Revenue
decreases were due to
an increase
of $1.4 million in comprehensive treatment centers("CTC")
offset by
decreases of $1.7 million
in
revenues from residential treatment centers.
Same-facility
revenue
decreased
$0.7 million due to a decrease of $2.2 million
in residential
treatment
centers partially offset by an increase of $1.5
million in CTC revenue.
|
|
|
Adjusted
pro forma revenue decreased $0.9 million, or 1.1%, to $78.6 million for
the quarter
from $79.5 million from the comparable period in the prior
year.
Adjusted
pro
forma
EBITDA increased
$2.2 million, or 8.2%, to $28.9 million for the quarter
from
$26.7 million from the comparable period in the prior
year.
|
|
|
Recovery
division operating expenses decreased $2.1 million year over year
primarily due to restructuring related decreases of approximately of
$1.1
million in salaries and
$1.0
million in supplies, facilities, and other costs. Recovery
division, same-facility operating expenses decreased $1.8
million
or 3.6% primarily driven by decreases of
$0.7 million in
salaries and benefits. The remaining
$1.1 million decrease was due to decreases in
supplies,
facilities,
and other costs within residential treatment centers.
|
Nine
Months Ended September 30, 2009 Compared to Nine Months Ended September 30,
2008
|
|
Net
revenue decreased $0.5 million, or 0.2%, to $232.0 million for
the nine months ended September 30, 2009 from $232.5
million
from the comparable
period
in the prior year. Revenue decreases
were
due to
a decrease of $5.7 million in residential treatment center revenues
partially offset by
increases
of
$5.2 million in
revenues from CTCs.
Same-facility
revenue decreased $3.0 million due to a decrease of $8.3 million
in residential treatment centers
partially
offset by
an increase of $5.3
million in CTCs.
|
|
|
Adjusted
pro forma revenue decreased $3.7 million, or 1.6%, to $232.3 million for
the nine months ended September 30, 2009 from
$236.0 million from
the
comparable period in the prior year.
Adjusted pro
forma
EBITDA increased $4.4 million, or 5.8%, to $80.8 million for the
quarter from
$76.4 million
from
the comparable period in the prior year.
|
|
|
Recovery
division consolidated operating expenses decreased $4.8 million, or 2.9%,
to $159.9 million for the nine months ended September 30,
2009
from
$164.7 million from the
comparable period in the prior year. The decrease in recovery division
consolidated operating expenses is primarily
due
to a $2.0 million decrease in salaries and a
$2.5 million decrease
in supplies facilities and other costs resulting from restructuring
activities
under
the FY08 Plan. Recovery division, same-facility decrease in operating
expenses was
$6.7 million, or 4.5%, driven by decreases of $3.4 million
in
salaries and benefits with residential treatment centers and CTCs
contributing decreases
of $2.7 million and
$0.7 million respectively.
The
remaining $3.3 million decrease was due to decreases in supplies,
facilities, and other costs primarily within residential
treatment
centers.
|
Healthy
Living Division:
Three
Months Ended September 30, 2009 Compared to Three Months Ended September 30,
2008
|
|
Net
revenue decreased $8.5 million, or 19.1%, to $36.1 million for the quarter
from $44.6 million from the comparable prior-year period.
The
decrease in revenue was
driven
by a lessening of demand as a result of the weak economic environment and
the inability of families
and
individuals to access the credit markets and
student
loan
markets to fund the tuition. Same-facility net revenue decreased $9.2
million,
or
20.8%,
to $35.0 million for the quarter from $44.2 million from
the comparable
prior-year
quarter due primarily to the
aforementioned
economic conditions.
|
|
|
Adjusted
pro forma revenue decreased $8.5 million, or 19.0%, to $36.1 million for
the three
months ended September 30, 2009 from $44.6
million
from
the comparable period
in
the
prior year. Adjusted pro forma EBITDA decreased $1.3 million, or 19.0%, to
$5.7
million for the three months
from
$7.0 million from the comparable prior-year
period.
|
|
|
Excluding
non-cash impairment charges of $27.8 million and $142.3
million recognized during the three months ended September 30, 2009
and 2008
respectively,
our
healthy living division incurred a decrease of $7.3 million in operating
expense, or 18.3%, primarily driven by a $4.6 million
decrease
in salaries and
benefits as well as a $2.4
million decrease in supplies, facilities, and other costs. Same facility
operating expenses
decreased $5.7
million or 16.1% from the
comparable prior-year period. $3.4 million
of the decrease was due to decreases in salaries
and
benefits with decreases of $1.5 million
decrease in adolescent outdoor programs, $1.6 million decrease in
adolescent residential boarding
schools, and $0.3
million decrease in weight
management. The remaining $2.3 million decrease in operating expenses was
due to
decreased
expenditures
within supplies,
facilities, and other operating costs of a $0.7 million decrease in
adolescent residential boarding schools, a
$0.7 million
decrease in adolescent
outdoor programs, and a $0.8 million decrease in weight
management.
|
Nine Months Ended
September 30, 2009 Compared to Nine Months Ended September 30, 2008
|
|
Net
revenue decreased $24.6 million, or 19.9%, to $98.7 million for
the nine months ended September 30, 2009 from $123.3
million from the
comparable
prior-year period. The decrease in revenue
was driven by lower revenue performance across the division due to a
lessening
of demand
as a result of the weak economic environment and the inability of
families and individuals to access the credit markets and
student
loan
markets to fund the tuition. Same-facility net revenue decreased $25.4
million, or 20.7%, to $97.3
million for the nine months from $122.7 million
from the
comparable prior-year period. Of the decrease in same-facility net
revenue, $12.1 million and $10.3 million, or
17.9% and 30.9% was
attributable to our
adolescent residential boarding and our adolescent outdoor programs,
respectively. The remaining $3.0 million
or 13.7%
decrease was in weight management.
|
|
|
Adjusted
pro forma revenue decreased $24.6 million, or 19.9%, to $98.7 million for
the nine months ended September 30, 2009 from $123.3
million
from the
comparable period in the prior year.
Adjusted pro forma EBITDA decreased $5.1 million, or 37.1%, to $8.7
million for the nine months
from
$13.8 million from the comparable prior-year period.
|
2
|
|
Excluding
non-cash impairment charges of $29.3 million and $142.3
million recognized during the nine months ended September
30, 2009 and 2008
respectively, our healthy living division incurred a decrease
of $18.7 million in operating expense, or 16.0%, primarily driven by a
$11.8 million
decrease in
salaries and benefits as
well
as
a $6.0 million decrease in supplies, facilities, and other costs. Same
facility operating expenses
decreased
$15.9
million or 15.5% from the comparable prior-year
period.
$10.1
million of the decrease was due to decreases in salaries
and
benefits comprised
of a $4.4 million decrease in adolescent residential boarding
schools,
$4.5
million decrease
in adolescent outdoor
programs,
and
$1.2 million decrease in weight management. The remaining $5.8 million
decrease in
operating
expenses
was
due
to decreased
expenditures
in supplies, facilities, and other operating costs consisting of a
$2.4
million decrease
in
adolescent residential boarding
schools,
$1.8
million decrease in weight management,
and 1.6 million in adolescent outdoor
programs.
|
Corporate:
Three Months
Ended September 30, 2009 Compared to Three Months Ended September 30,
2008
|
|
Corporate operating expenses of $7.2 million
remained flat year over year.
|
|
|
Adjusted
pro forma EBITDA negative contribution decreased $0.3
million, or 6.4%, to ($4.0) million from ($4.3) million
year
over year.
|
Nine Months
Ended September 30, 2009 Compared to Nine Months Ended September 30,
2008
|
|
Corporate operating expenses increased $3.4
million or 16.7% year over year due in part to restructuring activities
inclusive
of the consolidation of our
administrative functions.
|
|
|
Adjusted
pro forma EBITDA negative contribution increased $1.9 million,
or 14.9%, to ($14.6 ) million from ($12.7) million year
over year.
|
The unaudited
adjusted pro forma revenue and EBITDA for the periods presented give effect to
all acquisitions as if they had occurred
on January 1,
2008. The pro forma adjustments are based upon available information and certain
assumptions that CRC believes are reasonable.
The pro forma
adjusted EBITDA is for informational purposes only and does not purport to
represent what CRC's result of operations
or financial
position would have been if the acquisitions in 2008 occurred at any date, nor
does such information purport to project
the results
of operations for any future period.
In order to
supplement its condensed consolidated financial statements presented in
accordance with GAAP, CRC is providing a
summary to
show the computation of EBITDA, as well as adjusted pro forma EBITDA. Adjusted
pro forma EBITDA takes into
account
certain adjustments which are excluded from EBITDA for purposes of various
covenants in the indenture governing
CRC's 10¾%
senior subordinated notes due 2016 and its senior secured credit facility, as
amended to date. CRC believes that the
adjusted pro forma
EBITDA information presented provides useful information to both management and
investors concerning its
ability to meet its
future debt obligations and to comply with certain covenants in its borrowing
arrangements that are tied to
these measures. CRC
also believes that including the effect of these items allows management and
investors to better compare
CRC's financial
performance from period-to-period, and to better compare CRC's financial
performance with that of its competitors.
The presentation of
this additional information is not meant to be considered in isolation of, or as
a substitute for,
results
prepared in accordance with GAAP.
3
CRC
HEALTH CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER
30, 2009 AND DECEMBER 31, 2008
(In
thousands, except share amounts)
|
September 30,
2009
|
December
31,
2008
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT
ASSETS:
|
||||||||
|
Cash
and cash equivalents
|
$ | 6,454 | $ | 2,540 | ||||
|
Restricted
cash
|
875 | — | ||||||
|
Accounts
receivable, net of allowance for doubtful accounts of $5,410 in 2009 and
$5,409 in 2008
|
32,569 | 30,826 | ||||||
|
Prepaid
expenses
|
5,613 | 7,703 | ||||||
|
Other
current assets
|
1,263 | 1,618 | ||||||
|
Deferred
income taxes
|
4,029 | 4,029 | ||||||
|
Current
assets of discontinued operations, facility exits
|
16,170 | 14,125 | ||||||
|
Total
current assets
|
66,973 | 60,841 | ||||||
|
PROPERTY
AND EQUIPMENT-Net
|
124,276 | 129,728 | ||||||
|
GOODWILL
|
579,262 | 604,078 | ||||||
|
INTANGIBLE
ASSETS-Net
|
344,306 | 354,463 | ||||||
|
OTHER
ASSETS
|
19,426 | 20,065 | ||||||
|
TOTAL
ASSETS
|
$ | 1,134,243 | $ | 1,169,175 | ||||
|
LIABILITIES
AND EQUITY
|
||||||||
|
CURRENT
LIABILITIES:
|
||||||||
|
Accounts
payable
|
$ | 4,642 | $ | 6,165 | ||||
|
Accrued
liabilities
|
30,519 | 29,061 | ||||||
|
Income
taxes payable
|
6,102 | 1,201 | ||||||
|
Current
portion of long-term debt
|
6,014 | 6,522 | ||||||
|
Other
current liabilities
|
26,386 | 31,657 | ||||||
|
Current
liabilities of discontinued operations, facility
exits
|
1,428 | 703 | ||||||
|
Total
current liabilities
|
75,091 | 75,309 | ||||||
|
LONG-TERM
DEBT-Less current portion
|
629,042 | 646,630 | ||||||
|
OTHER
LONG-TERM LIABILITIES
|
7,419 | 7,553 | ||||||
|
LIABILITIES
OF DISCONTINUED OPERATIONS, FACILITY EXITS
|
1,738 | 1,909 | ||||||
|
DEFERRED
INCOME TAXES
|
126,487 | 134,331 | ||||||
|
Total
liabilities
|
839,777 | 865,732 | ||||||
|
|
||||||||
|
CRC
HEALTH CORPORATION STOCKHOLDER’S EQUITY:
|
||||||||
|
Common
stock, $0.001 par value-1,000 shares authorized; 1,000 shares issued and
outstanding at September 30, 2009 and December 31,
2008
|
— | — | ||||||
|
Additional
paid-in capital
|
451,578 | 444,275 | ||||||
|
Accumulated
deficit
|
(152,496 | ) | (134,764 | ) | ||||
|
Accumulated
other comprehensive (loss)
|
(4,861 | ) | (6,289 | ) | ||||
|
Total
CRC Health Corporation stockholder’s equity
|
294,221 | 303,222 | ||||||
|
NONCONTROLLING INTEREST
|
245 | 221 | ||||||
|
Total
equity
|
294,466 | 303,443 | ||||||
|
TOTAL
LIABILITIES AND EQUITY
|
$ | 1,134,243 | $ | 1,169,175 | ||||
4
CRC
HEALTH CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR
THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(In
thousands)
|
|
Three Months
Ended September 30,
2009
|
Three Months
Ended September 30,
2008
|
Nine Months
Ended September 30,
2009
|
Nine Months
Ended September 30,
2008
|
||||||||||||
|
NET
REVENUE:
|
|
|||||||||||||||
|
Net
client service revenue
|
|
$
|
113,074
|
|
$
|
121,325
|
|
$
|
325,464
|
|
$
|
349,908
|
|
|||
|
Other revenue
|
|
1,650
|
|
2,146
|
|
5,417
|
|
6,125
|
|
|||||||
|
Total
net revenue
|
|
114,724
|
|
123,471
|
|
330,881
|
|
356,033
|
|
|||||||
|
OPERATING
EXPENSES:
|
|
|||||||||||||||
|
Salaries
and benefits
|
|
53,056
|
|
59,155
|
|
165,450
|
|
176,968
|
|
|||||||
|
Supplies,
facilities and other operating costs
|
|
32,438
|
|
35,647
|
|
95,126
|
|
103,525
|
|
|||||||
|
Provision
for doubtful accounts
|
|
1,558
|
|
1,663
|
|
4,614
|
|
4,909
|
|
|||||||
|
Depreciation
and amortization
|
|
5,678
|
|
5,690
|
|
17,005
|
|
16,778
|
|
|||||||
|
Asset
impairment
|
|
2,257
|
|
—
|
|
2,257
|
|
—
|
|
|||||||
|
Goodwill
impairment
|
|
24,919
|
|
142,238
|
|
24,919
|
|
142,238
|
|
|||||||
|
Total
operating expenses
|
|
119,906
|
|
244,393
|
|
309,371
|
444,418
|
|
||||||||
|
OPERATING
(LOSS) INCOME
|
|
(5,182
|
)
|
(120,922
|
)
|
21,510
|
(88,385
|
)
|
||||||||
|
INTEREST
EXPENSE, NET
|
|
(11,519
|
)
|
(13,110
|
)
|
(35,337
|
)
|
(40,132
|
)
|
|||||||
|
OTHER
EXPENSE
|
|
—
|
|
(1
|
)
|
(82
|
)
|
(34
|
)
|
|||||||
|
LOSS
FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
(16,701
|
)
|
(134,033
|
)
|
(13,909
|
)
|
(128,551
|
)
|
|||||||
|
INCOME
TAX EXPENSE (BENEFIT)
|
|
993
|
|
(10,604
|
)
|
1,171
|
|
(8,357
|
)
|
|||||||
|
LOSS
FROM CONTINUING OPERATIONS, NET OF TAX
|
|
(17,694
|
)
|
(123,429
|
)
|
(15,080
|
)
|
(120,194
|
)
|
|||||||
|
LOSS
FROM DISCONTINUED OPERATIONS (net of tax benefit of ($429)
and ($8,618) in the three months ended September 30, 2009 and
2008, and ($1,197) and ($9,342) in the nine months ended
September 30, 2009 and 2008, respectively)
|
|
(1,027
|
)
|
(16,204
|
)
|
(2,623
|
)
|
(17,564
|
)
|
|||||||
|
NET
LOSS
|
|
(18,721
|
)
|
(139,633
|
)
|
(17,703
|
)
|
(137,758
|
)
|
|||||||
|
LESS:
NET INCOME (LOSS) ATTRIBUTABLE TO THE NONCONTROLLING
INTEREST
|
|
148
|
|
301
|
29
|
(57
|
)
|
|||||||||
|
NET
LOSS ATTRIBUTABLE TO CRC HEALTH CORPORATION
|
|
$
|
(18,869
|
)
|
$
|
(139,934
|
)
|
$
|
(17,732
|
)
|
$
|
(137,701
|
)
|
|||
|
AMOUNTS
ATTRIBUTABLE TO CRC HEALTH CORPORATION:
|
|
|||||||||||||||
|
LOSS
FROM CONTINUING OPERATIONS, NET OF TAX
|
|
$
|
(17,842
|
)
|
$
|
(123,718
|
)
|
$
|
(15,113
|
)
|
$
|
(120,116
|
)
|
|||
|
DISCONTINUED
OPERATIONS, NET OF TAX
|
|
(1,027
|
)
|
(16,216
|
)
|
(2,619
|
)
|
(17,585
|
)
|
|||||||
|
NET
LOSS ATTRIBUTABLE TO CRC HEALTH
CORPORATION
|
|
$
|
(18,869
|
)
|
$
|
(139,934
|
)
|
$
|
(17,732
|
)
|
$
|
(137,701
|
)
|
|||
|
|
|
|
|
|
||||||||||||
5
|
Reconciliation
of GAAP "Cash Flows Provided By Operating Activities" to non-GAAP "EBITDA
from
|
||||||||
|
continuing
operations" and Reconciliation of non-GAAP "EBITDA attributable to CRC
Health Corporation" to GAAP "Net Loss attributable to CRC Health
Corporation"
|
||||||||
|
(In
thousands) (unaudited)
|
||||||||
|
Three
Months Ended September 30, 2009
|
Three
Months Ended September 30, 2008
|
Nine
Months Ended September 30, 2009
|
Nine Months
Ended September 30, 2008
|
|||||||||||||
|
Cash
flows provided by operating activities
|
$ | 1,082 | $ | 259 | $ | 29,559 | $ | 21,090 | ||||||||
|
Write-off of prior year acquisition
costs
|
— | — | (62 | ) |
—
|
|||||||||||
|
Amortization
of debt discount and other financing costs
|
(1,104 | ) | (1,132 | ) | (3,279 | ) | (3,357 | ) | ||||||||
|
Stock-based
compensation
|
(1,376 | ) | (1,544 | ) | (4,164 | ) | (3,847 | ) | ||||||||
|
Deferred
income taxes
|
4,786 | 25,645 | 5,897 | 26,674 | ||||||||||||
|
Net
effect of changes in non-current net assets
|
2,219 | (207 | ) | 2,618 | (129 | ) | ||||||||||
| Goodwill impairment | (24,919 | ) | (142,238 | ) | (24,919 | ) | (142,238 | ) | ||||||||
| Asset impairment | (3,143 | ) | (23,880 | ) | (4,560 | ) | (23,880 | ) | ||||||||
|
Net
effect of working capital changes
|
9,305 | 9,092 | (1,674 | ) | 5,329 | |||||||||||
|
Interest
expense and other financing costs
|
11,521 | 13,125 | 35,344 | 40,148 | ||||||||||||
|
Income
tax (benefit) expense
|
565 | (19,222 | ) | (26 | ) | (17,699 | ) | |||||||||
|
EBITDA
attributable to CRC Health Corporation
|
(1,064 | ) | (140,102 | ) | 34,734 | (97,909 | ) | |||||||||
|
Interest
expense and other financing costs
|
(11,521 | ) | (13,125 | ) | (35,344 | ) | (40,148 | ) | ||||||||
|
Income
tax expense (benefit)
|
(565 | ) | 19,222 | 26 | 17,699 | |||||||||||
|
Depreciation
and amortization
|
(5,719 | ) | (5,929 | ) | (17,148 | ) | (17,343 | ) | ||||||||
|
Net loss
attributable to CRC Health Corporation
|
$ | (18,869 | ) | $ | (139,934 | ) | $ | (17,732 | ) | $ | (137,701 | ) | ||||
6
|
Reconciliation
of non-GAAP "EBITDA attributable to CRC Health Corporation" to non-GAAP
"Adjusted pro forma EBITDA"
|
||||||||
|
(In
thousands) (unaudited)
|
||||||||
|
Three
Months Ended September 30, 2009
|
Three
Months Ended September 30, 2008
|
Nine Months
Ended September 30, 2009
|
Nine Months
Ended September 30, 2008
|
|||||||||||||
|
EBITDA
attributable to CRC Health Corporation
|
$ | (1,064 | ) | $ | (140,102 | ) | $ | 34,734 | $ | (97,909 | ) | |||||
|
Acquisition
adjustments
|
—
|
236
|
117
|
1,083
|
||||||||||||
| Unrecognized profit on deferred revenue | — | 13 | — | 13 | ||||||||||||
|
Adjustments
for discontinued operations
|
236
|
687
|
894
|
2,446
|
||||||||||||
|
Asset
impairment
|
3,143
|
23,880
|
4,560
|
23,880
|
||||||||||||
| Goodwill impairment | 24,919 | 142,238 | 24,919 | 142,238 | ||||||||||||
|
Non-impairment
restructuring activities
|
468 |
—
|
2,481 |
—
|
||||||||||||
|
Stock-based
compensation expense
|
1,376
|
1,543
|
4,164
|
3,847
|
||||||||||||
| (Gain) loss on interest rate swap |
—
|
1 |
—
|
34 | ||||||||||||
|
Foreign
exchange translation
|
28
|
35
|
21
|
35
|
||||||||||||
|
Other
nonrecurring costs
|
94
|
—
|
319
|
—
|
||||||||||||
|
Loss
(gain) on fixed asset disposal
|
428
|
(20
|
) |
599
|
(21
|
) | ||||||||||
|
Management
fees to Sponsor
|
806
|
530
|
2,044
|
1,630
|
||||||||||||
|
Write-off
of cancelled acquisitions
|
—
|
116
|
62
|
240
|
||||||||||||
|
Noncontrolling
interest in loss of subsidiaries
|
148
|
301
|
29
|
(57
|
) | |||||||||||
|
Franchise
taxes
|
44
|
40
|
35
|
128
|
||||||||||||
|
Write-off
of miscellaneous accounts (non-cash)
|
—
|
—
|
—
|
8
|
||||||||||||
| Adjusted Pro forma EBITDA | $ | 30,626 | $ | 29,498 | $ | 74,978 | $ | 77,595 | ||||||||
7
|
CRC
Health Corporation
Selected
Statistics
|
Nine Months
Ended
September 30,
2009
|
Nine Months
Ended
September 30,
2008
|
||||||
|
Recovery
Division:
|
||||||||
|
Number
of inpatient facilities - end of period
|
29
|
30
|
||||||
|
Number
of outpatient facilities - end of period
|
15 |
15
|
||||||
|
Number
of comprehensive treatment clinics (CTC) - end of period
|
54
|
64
|
||||||
|
Available
beds - end of period
|
1,904
|
1,910 | ||||||
|
Patient
days - Inpatient
|
416,355
|
417,918
|
||||||
|
Net
revenue per patient day - inpatient
|
$
|
350.83
|
$
|
363.20
|
||||
|
Patient
days - CTC
|
7,041,552
|
6,695,627
|
||||||
|
Net
revenue per patient day - CTC
|
$
|
11.91
|
$
|
11.75
|
||||
|
Aspen
Programs:
|
||||||||
|
Number
of facilities - end of period
|
25
|
29
|
||||||
|
Patient
days
|
270,214
|
329,766
|
||||||
|
Net
revenue per patient day
|
$
|
289.73
|
$
|
305.20
|
||||
|
Weight
Management:
|
||||||||
|
Number
of facilities - end of period
|
18 |
17
|
||||||
|
Patient
days
|
71,165
|
80,345
|
||||||
|
Net
revenue per patient day
|
$
|
286.61
|
$
|
281.09 | ||||
Conference
Call
CRC
Health Corporation will host a conference call, open to all interested parties,
on Thursday, November 19, 2009 beginning at 10:00 AM
Pacific
Time (1:00 PM Eastern Time) . The number to call within the United States is
(800) 218-2154. Participants outside the United States
should
call 913-312-0822. The conference ID is 6486033.
A replay
of the conference call will be available starting at 1:00 PM Pacific Time (4:00
PM Eastern Time) on Thursday, November 19, 2009
until
1:00 PM Pacific Time (4:00 PM Eastern Time)
Thursday, November 26, 2009. The replay number for callers within the United
States
is
888-203-1112 or 719-457-0820 from outside the
United States and the conference ID for all callers is 6486033.
Forward-Looking
Statements
This
press release includes or may include "forward-looking statements." All
statements included herein, other than statements of
historical
fact, may constitute forward-looking statements. Although CRC believes that the
expectations reflected in such forward-looking
statements
are reasonable, it can give no assurance that such expectations will prove to be
correct. Important factors that could cause
actual
results to differ materially from those expressed or implied by such
forward-looking statements include, among others, the following
factors:
changes in government reimbursement for CRC's services; CRC's substantial
indebtedness; changes in applicable regulations
or a
government investigation or assertion that CRC has violated applicable
regulations; attempts by local residents to force our closure
or
relocation; the potentially difficult, unsuccessful or costly integration of
recently acquired operations and future acquisitions;
the
potentially difficult, unsuccessful or costly opening and operating of new
treatment facilities; the possibility that commercial payors
for
CRC's services may undertake future cost containment initiatives; the limited
number of national suppliers of methadone used in CRC's
outpatient
treatment clinics; the failure to maintain established relationships or
cultivate new relationships with patient referral sources;
shortages
in qualified healthcare workers; natural disasters such as hurricanes,
earthquakes and floods; competition that limits CRC's
ability
to grow; the potentially costly implementation of new information systems to
comply with federal and state initiatives relating to
patient
privacy, security of medical information and electronic transactions; the
potentially costly implementation of accounting and
other
management systems and resources in response to financial reporting and other
requirements; the loss of key members of
CRC's
management; claims asserted against CRC or lack of adequate available insurance;
and certain restrictive covenants in CRC's
debt
documents.
Contact:
CRC
Health Corporation
Kevin
Hogge, 877-272-8668
Chief
Financial Officer
8