CRC Health Corporation Reports Operating Results for the Three Months and Twelve Months Ended December 31, 2012
CRC Health CorporationLeAnne M. Stewart, 408-645-3160Chief Financial Officer
CRC Health Corporation, a leading provider of substance abuse treatment and adolescent youth services, announced its results for the three and twelve months ended December 31, 2012.
“Our operating results for 2012 were mixed. We delivered revenue growth in our recovery business, primarily as a result of strong performance in our CTC facilities. Our youth business also grew relative to last year, but our weight management business underperformed. The real message associated with 2012 is that we’ve made critical investments that position us well for the dramatic changes occurring in our country given healthcare reform,” said R. Andrew Eckert, Chief Executive Officer.
Net client service revenues for the twelve months ended December 31, 2012 increased $9.7 million, or 2%, to $452.3 million compared to the same period in 2011. For the twelve months ended December 31, 2012, operating income decreased $3.1 million, or 5%, to $64.8 million, compared to the same period in 2011. Adjusted EBITDA decreased $2.3 million, or 2%, to $102.3 million compared the same period in 2011.
The following table presents our net client service revenues, operating income (loss), Adjusted EBITDA and Adjusted EBITDA margin by division (in thousands, except for percentages):
Recovery:
Youth:
Weight Management:
Corporate:
Net client service revenues for the three months ended December 31, 2012 increased $5.1 million, or 5%, to $109.4 million compared to the same period in 2011. For the three months ended December 31, 2012, operating income increased $2.9 million, or 42%, to $9.9 million compared to the same period in 2011. Adjusted EBITDA increased $2.5 million, or 13%, to $21.3 million compared the same period in 2011.
The following table presents our net client service revenues, operating income (loss), Adjusted EBITDA and Adjusted EBITDA margin by division (in thousands, except for percentages):
Recovery:
Youth:
Weight Management:
Corporate:
Under the terms of the our borrowing arrangements, we are required to comply with various covenants, including the maintenance of certain financial ratios, the calculations of which are based on Adjusted EBITDA, as defined in our credit agreements. As of December 31 2012, we were in compliance with all such covenants. A breach of these could result in a default under our credit facilities and in our being unable to borrow additional amounts under our revolving credit facility. If an event of default occurs, the lenders could elect to declare all amounts borrowed under our credit facilities to be immediately due and payable and the lenders under our term loans and revolving credit facility could proceed against the collateral securing the indebtedness.
The computation of Adjusted EBITDA is provided below to provide an understanding of the impact that Adjusted EBITDA has on our ability to comply with certain covenants in our borrowing arrangements that are tied to these measures and to borrow under the credit facility. Adjusted EBITDA should not be considered as an alternative to net income (loss) or cash flows from operating activities (which are determined in accordance with GAAP) and is not being presented as an indicator of operating performance or a measure of liquidity. Other companies may define Adjusted EBITDA differently and as a result, such measures may not be comparable to our Adjusted EBITDA.
The following table reconciles our net income to our Adjusted EBITDA (in thousands):
CRC Health Corporation will host a conference call, open to all interested parties, on Tuesday, April 2, 2013 beginning at 4:30 PM Eastern Time (1:30 PM Pacific Time). The number to call within the United States is (888)-428-9473. Participants outside the United States should call (719) 457-2648. The conference ID is 8671484.
A replay of the conference call will be available starting at 7:30 PM Eastern Time on Tuesday, April 2, 2013 until 7:30 PM Eastern Time Friday, April 9, 2013. 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 8671484.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements related to trends and events that may affect or future financial position and operating results. Any statement contained in this release that is not statements of historical fact may be deemed forward-looking statements. For example, words such as “may”, “will”, “should”, “likely”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “potential” or “plan”, or comparable terminology, are intended to identify forward-looking statements. Such statements are based upon current expectations, estimates and assumptions, and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Important factors known to us that could cause or contribute to material differences include, but are not limited to, the following:
A more detailed discussion of many of these factors, as well as other factors that could affect our results, is contained in our periodic reports filed with the SEC. You should carefully consider each of these factors and all of the other information in this release. We believe that all forward-looking statements are based upon reasonable assumptions when made. However, we caution that it is impossible to predict actual results or outcomes and that accordingly you should not place undue reliance on these statements. Forward-looking statements speak only as of the date when made and we undertake no obligation to revise or update these statements in light of subsequent events or developments. Actual results and outcomes may differ materially from anticipated results or outcomes discussed in forward-looking statements. You are advised, however to consult any future disclosures we make on related subjects in future reports to the Securities and Exchange Commission (SEC).
CRC Health Group is the most comprehensive network of addiction treatment and related behavioral health services in the nation. CRC offers the largest array of personalized treatment options, allowing individuals, families and professionals to choose the most appropriate treatment setting for their behavioral, addiction, weight management or therapeutic education needs. CRC is committed to making our services widely and easily available, while maintaining a passion for delivering advanced treatment. Since 1995, CRC has been helping individuals and families reclaim and enrich their lives. For more information, visit or call (877) 637-6237.