Q - Acadia Healthcare Company,
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
ACHC$37.00+6.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0000950170-25-069294
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000950170-25-103160
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 127 previous paragraphs and 148 current paragraphs.
98 unchanged; 28 reworded; 14 added; 0 removed; 1 previous and 8 current paragraphs rearranged.
Tables are not compared: 9 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
the impact of various executive orders affecting the broader healthcare industry; and
Current report
Recent Legislative Developments
Current report
The One Big Beautiful Bill Act (“OBBBA”), enacted on July 4, 2025, includes various healthcare policy changes, including changes to the Medicaid program. Among other changes, OBBBA includes work or community engagement requirements for adults under the age of 65 in the Medicaid expansion population. We do not expect a material impact on our operations as these requirements begin to be phased in during 2026, primarily due to exemptions for the populations we serve, including individuals with chronic substance use disorders and those with serious and complex medical conditions.
Current report
OBBBA also makes significant changes to Medicaid financing mechanisms beginning in 2028, including restrictions on provider tax arrangements that are intended to reduce the federal matching funds received by state Medicaid programs. The law prohibits states from establishing new provider taxes or increasing rates of existing provider taxes while also limiting the structure of such taxes. The law also directs the U.S. Department of Health and Human Services to revise regulations governing state directed payment programs, which many states have implemented to direct certain Medicaid managed care expenditures, to cap total payments rates for specified services including hospital services.
Current report
Loss on impairment. During the second quarter of 2025, we recorded a non-cash property impairment charge of $1.5 million
Current report
related to certain closed facilities. During the second quarter of 2024, we recorded a non-cash property impairment charge of $1.0 million related to certain closed facilities.
Current report
Gain on sale of property. During the second quarter of 2025, we recorded an $8.7 million gain on a facility property sale.
Current report
Six months ended June 30, 2025 compared to the six months ended June 30, 2024
Current report
Salaries, wages and benefits. SWB expense was $897.7 million for the six months ended June 30, 2025 compared to $837.3 million for the six months ended June 30, 2024, an increase of $60.4 million. SWB expense included $19.2 million and $17.5 million of equity-based compensation expense for the six months ended June 30, 2025 and 2024. Excluding equity-based compensation expense, SWB expense was $878.5 million, or 53.6% of revenue, for the six months ended June 30, 2025, compared to $819.8 million, or 52.4% of revenue, for the six months ended June 30, 2024. Same facility SWB expense was $782.8 million for the six months ended June 30, 2025, or 48.6% of revenue, compared to $738.5 million for the six months ended June 30, 2024, or 48.5% of revenue.
Current report
Professional fees. Professional fees were $95.7 million for the six months ended June 30, 2025, or 5.8% of revenue, compared to $93.7 million for the six months ended June 30, 2024, or 6.0% of revenue. Same facility professional fees were $81.2 million for the six months ended June 30, 2025, or 5.0% of revenue, compared to $79.8 million for the six months ended June 30, 2024, or 5.2% of revenue.
Current report
Other operating expenses. Other operating expenses consisted primarily of purchased services, utilities, insurance, provider taxes, travel and repairs and maintenance expenses. Other operating expenses were $248.4 million for the six months ended June 30, 2025, or 15.1% of revenue, compared to $210.8 million for the six months ended June 30, 2024, or 13.5% of revenue. Same facility other operating expenses were $222.9 million for the six months ended June 30, 2025, or 13.8% of revenue, compared to $195.2 million for the six months ended June 30, 2024, or 12.8% of revenue.
Current report
Depreciation and amortization. Depreciation and amortization expense was $96.0 million for the six months ended June 30, 2025, or 5.9% of revenue, compared to $72.4 million for the six months ended June 30, 2024, or 4.6% of revenue.
Current report
Loss on impairment. During the six months ended June 30, 2025 and 2024, we recorded a non-cash property impairment charge of $1.5 million related to certain closed facilities. During the six months ended June 30, 2024, we recorded a non-cash property impairment charge of $1.0 million related to certain closed facilities.
Current report
Gain on sale of property. During the six months ended June 30, 2025, we recorded an $8.7 million gain on a facility property sale.
Reworded paragraphs (28)
Previous wording
the impact of the enactment, amendment or expiration of statutes and regulations affecting the healthcare industry, and potential reductions to Medicare and Medicaid payment rates, changes in reimbursement practices or funding levels, or modification of Medicaid supplemental payment programs;
Current wording
the impact of the enactment, amendment or expiration of statutes and regulations affecting the healthcare industry, and potential reductions to Medicare and Medicaid payment rates and coverage, changes in reimbursement practices or funding levels, or modification of Medicaid supplemental payment programs;
Previous wording
the impact of fluctuations in our operating results, quarter to quarter earnings and other factors on the price of our securities; and
Current wording
the impact of fluctuations in our operating results, quarter to quarter earnings and other factors on the price of our securities;
Previous wording
Our business strategy is to become the indispensable behavioral healthcare provider for the high-acuity and complex needs patient population. We are committed to providing the communities we serve with high-quality, cost-effective behavioral healthcare services, while growing our business, increasing profitability and creating long-term value for our stockholders. This strategy includes five growth pathways: expansions of existing facilities, joint venture partnerships, de novo facilities, acquisitions and expansion across our continuum of care. At March 31, 2025, we operated 270 behavioral healthcare facilities with approximately 12,000 beds in 39 states and Puerto Rico. During the three months ended March 31, 2025, we added 378 beds, consisting of 90 beds added to existing facilities and 288 beds added through the opening of one wholly-owned facility and one joint venture facility, and we opened seven CTCs.
Current wording
Our business strategy is to become the indispensable behavioral healthcare provider for the high-acuity and complex needs patient population. We are committed to providing the communities we serve with high-quality, cost-effective behavioral healthcare services, while growing our business, increasing profitability and creating long-term value for our stockholders. This strategy includes five growth pathways: expansions of existing facilities, joint venture partnerships, de novo facilities, acquisitions and expansion across our continuum of care. At June 30, 2025, we operated 274 behavioral healthcare facilities with approximately 12,100 beds in 39 states and Puerto Rico. During the six months ended June 30, 2025, we added 479 beds, consisting of 191 beds added to existing facilities and 288 beds added through the opening of one wholly-owned facility and one joint venture facility, and we opened eleven CTCs.
Previous wording
We believe that we are well positioned to help meet the growing demand for behavioral healthcare services and recorded revenue growth of 0.3% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Similar with many other healthcare providers and other industries across the country, we continue to navigate a tight labor market. While we experienced higher wage inflation compared to historical averages in recent years, we continue to see stability in our labor costs and our proactive focus helps us manage through this environment. We remain focused on ensuring that we have the level of staff to meet the demand in our markets across 39 states and Puerto Rico.
Current wording
We believe that we are well positioned to help meet the growing demand for behavioral healthcare services and recorded revenue growth of 4.8% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Similar with many other healthcare providers and other industries across the country, we continue to navigate a tight labor market. While we experienced higher wage inflation compared to historical averages in recent years, we continue to see stability in our labor costs and our proactive focus helps us manage through this environment. We remain focused on ensuring that we have the level of staff to meet the demand in our markets across 39 states and Puerto Rico.
Previous wording
The following table sets forth percent changes in same facility operating data for the three months ended March 31, 2025 compared to the same period in 2024:
Current wording
The following table sets forth percent changes in same facility operating data for the three and six months ended June 30, 2025 compared to the same periods in 2024:
Previous wording
Revenue. Revenue increased $2.5 million, or 0.3%, to $770.5 million for the three months ended March 31, 2025 from $768.1 million for the three months ended March 31, 2024. Same facility revenue increased $15.3 million, or 2.1%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, resulting from same facility growth in patient days of 2.2% slightly offset by a decrease in same facility revenue per day of -0.2%. Consistent with same facility revenue growth in 2024, the growth in same facility patient days for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 resulted from the addition of beds to our existing facilities and ongoing demand for our services.
Current wording
Revenue. Revenue increased $73.2 million, or 9.2%, to $869.2 million for the three months ended June 30, 2025 from $796.0 million for the three months ended June 30, 2024. The three months ended June 30, 2025, included $65.6 million of revenue for one state government program based on timing of program approval. Same facility revenue increased $73.5 million, or 9.5%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, resulting from same facility growth in revenue per day of 7.5%, same facility growth in patient days of 1.8% and same facility growth in admissions of 1.4%. Consistent with same facility revenue growth in 2024, the growth in same facility patient days for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 resulted from the addition of beds to our existing facilities and ongoing demand for our services.
Previous wording
Salaries, wages and benefits. Salaries, wages and benefits (“SWB”) expense was $445.3 million for the three months ended March 31, 2025 compared to $417.5 million for the three months ended March 31, 2024, an increase of $27.8 million. SWB expense included $8.7 million of equity-based compensation expense for both the three months ended March 31, 2025 and 2024. Excluding equity-based compensation expense, SWB expense was $436.6 million, or 56.7% of revenue, for the three months ended March 31, 2025, compared to $408.8 million, or 53.2% of revenue, for the three months ended March 31, 2024. Same facility SWB expense was $390.0 million for the three months ended March 31, 2025, or 51.3% of revenue, compared to $366.3 million for the three months ended March 31, 2024, or 49.2% of revenue.
Current wording
Salaries, wages and benefits. Salaries, wages and benefits (“SWB”) expense was $452.4 million for the three months ended June 30, 2025 compared to $419.8 million for the three months ended June 30, 2024, an increase of $32.6 million. SWB expense included $10.5 million and $8.9 million of equity-based compensation expense for the three months ended June 30, 2025 and 2024, respectively. Excluding equity-based compensation expense, SWB expense was $441.9 million, or 50.8% of revenue, for the three months ended June 30, 2025, compared to $410.9 million, or 51.6% of revenue, for the three months ended June 30, 2024. Same facility SWB expense was $392.8 million for the three months ended June 30, 2025, or 46.1% of revenue, compared to $372.2 million for the three months ended June 30, 2024, or 47.9% of revenue.
Previous wording
Professional fees. Professional fees were $45.7 million for the three months ended March 31, 2025, or 5.9% of revenue, compared to $45.7 million for the three months ended March 31, 2024, or 5.9% of revenue. Same facility professional fees were $39.2 million for the three months ended March 31, 2025, or 5.2% of revenue, compared to $38.4 million for the three months ended March 31, 2024, or 5.2% of revenue.
Current wording
Professional fees. Professional fees were $50.0 million for the three months ended June 30, 2025, or 5.7% of revenue, compared to $48.1 million for the three months ended June 30, 2024, or 6.0% of revenue. Same facility professional fees were $42.1 million for the three months ended June 30, 2025, or 4.9% of revenue, compared to $41.4 million for the three months ended June 30, 2024, or 5.3% of revenue.
Previous wording
Supplies. Supplies expense was $28.3 million for the three months ended March 31, 2025, or 3.7% of revenue, compared to $26.7 million for the three months ended March 31, 2024, or 3.5% of revenue. Same facility supplies expense was $27.4 million for the three months ended March 31, 2025, or 3.6% of revenue, compared to $25.6 million for the three months ended March 31, 2024, or 3.4% of revenue.
Current wording
Supplies. Supplies expense was $28.5 million for the three months ended June 30, 2025, or 3.3% of revenue, compared to $27.9 million for the three months ended June 30, 2024, or 3.5% of revenue. Same facility supplies expense was $27.6 million for the three months ended June 30, 2025, or 3.2% of revenue, compared to $27.1 million for the three months ended June 30, 2024, or 3.5% of revenue.
Previous wording
Rents and leases. Rents and leases were $11.7 million for the three months ended March 31, 2025, or 1.5% of revenue, compared to $11.9 million for the three months ended March 31, 2024, or 1.5% of revenue. Same facility rents and leases were $10.2 million for the three months ended March 31, 2025, or 1.3% of revenue, compared to $10.5 million for the three months ended March 31, 2024, or 1.4% of revenue.
Current wording
Rents and leases. Rents and leases were $12.6 million for the three months ended June 30, 2025, or 1.5% of revenue, compared to $11.9 million for the three months ended June 30, 2024, or 1.5% of revenue. Same facility rents and leases were $11.2 million for the three months ended June 30, 2025, or 1.3% of revenue, compared to $10.5 million for the three months ended June 30, 2024, or 1.4% of revenue.
Previous wording
Other operating expenses. Other operating expenses consisted primarily of purchased services, utilities, insurance, travel and repairs and maintenance expenses. Other operating expenses were $114.0 million for the three months ended March 31, 2025, or 14.8% of revenue, compared to $101.1 million for the three months ended March 31, 2024, or 13.2% of revenue. Same facility other operating expenses were $101.4 million for the three months ended March 31, 2025, or 13.3% of revenue, compared to $93.0 million for the three months ended March 31, 2024, or 12.5% of revenue.
Current wording
Other operating expenses. Other operating expenses consisted primarily of purchased services, utilities, insurance, provider taxes, travel and repairs and maintenance expenses. Other operating expenses were $134.4 million for the three months ended June 30, 2025, or 15.5% of revenue, compared to $109.7 million for the three months ended June 30, 2024, or 13.8% of revenue. Same facility other operating expenses were $121.5 million for the three months ended June 30, 2025, or 14.3% of revenue, compared to $102.2 million for the three months ended June 30, 2024, or 13.1% of revenue.
Previous wording
Depreciation and amortization. Depreciation and amortization expense was $47.0 million for the three months ended March 31, 2025, or 6.1% of revenue, compared to $36.3 million for the three months ended March 31, 2024, or 4.7% of revenue.
Current wording
Depreciation and amortization. Depreciation and amortization expense was $49.0 million for the three months ended June 30, 2025, or 5.6% of revenue, compared to $36.1 million for the three months ended June 30, 2024, or 4.5% of revenue.
Previous wording
Interest expense. Interest expense was $29.2 million for the three months ended March 31, 2025 compared to $27.2 million for the three months ended March 31, 2024. The increase in interest expense was primarily the result of interest on the 7.375% Senior Notes issued during the first quarter of 2025.
Current wording
Interest expense. Interest expense was $35.1 million for the three months ended June 30, 2025 compared to $29.2 million for the three months ended June 30, 2024. The increase in interest expense was primarily the result of interest on the 7.375% Senior Notes issued during the first quarter of 2025.
Previous wording
Transaction, legal and other costs. Transaction, legal and other costs were $31.1 million for the three months ended March 31, 2025, compared to $2.8 million for the three months ended March 31, 2024. Transaction, legal and other costs represent legal, accounting, government investigation, termination, restructuring, management transition, acquisition and other similar costs incurred in the respective period, as summarized below (in thousands).
Current wording
Transaction, legal and other costs. Transaction, legal and other costs were $64.4 million for the three months ended June 30, 2025, compared to $6.1 million for the three months ended June 30, 2024. Transaction, legal and other costs represent legal, accounting, government investigation, termination, restructuring, management transition, acquisition and other similar costs incurred in the respective period, as summarized below (in thousands).
Previous wording
Government investigations include legal fees and settlement costs related to certain litigation, including the matters referenced in Note 9 — Commitments and Contingencies. Legal, accounting and other acquisition-related costs include costs incurred for the development of new facilities ($0.9 million and $0.6 million for the three months ended March 31, 2025 and 2024, respectively); legal and settlement costs incurred related to certain litigation not included in government investigations ($(3.0) million and $4.0 million for the three months ended March 31, 2025 and 2024, respectively); and direct costs associated with acquisitions ($0.2 million for the three months ended March 31, 2024). Management transition costs include certain costs associated with the transition of the leadership team, including the design and implementation of the revised organizational structure. Management transition costs incurred with the transition of our Chief Executive Officer beginning in the first quarter of 2022 concluded in the fourth quarter of 2024. Termination and restructuring costs include costs, net of gains, incurred related to the closure and disposition of certain facilities or contract amendments.
Current wording
Government investigations include legal fees and settlement costs related to certain litigation, including the matters referenced in Note 9 — Commitments and Contingencies in the accompanying notes to our condensed consolidated financial statements. Termination and restructuring costs include costs, net of gains, incurred related to workforce reductions, contract amendments, and the closure and disposition of certain facilities, including related lease terminations. Legal, accounting and other acquisition-related costs include costs incurred for the development of new facilities ($0.4 million and $1.4 million for the three months ended June 30, 2025 and 2024, respectively); legal and settlement costs incurred related to certain litigation not included in government investigations ($0.4 million for both the three months ended June 30, 2025 and 2024, respectively); and direct costs associated with acquisitions ($0.2 million for the three months ended June 30, 2024). Management transition costs include certain costs associated with the transition of the leadership team, including the design and implementation of the revised organizational structure. Management transition costs incurred with the transition of our Chief Executive Officer beginning in the first quarter of 2022 concluded in the fourth quarter of 2024.
Previous wording
Debt extinguishment costs. Debt extinguishment costs were $1.3 million for the three months ended March 31, 2025 related to the refinancing of the Prior Credit Facility.
Current wording
Debt extinguishment costs. Debt extinguishment costs were $1.3 million for the six months ended June 30, 2025 related to the refinancing of the Prior Credit Facility.
Previous wording
Legal settlements expense. Legal settlements expense was $3.5 million for the three months ended March 31, 2025 related to costs associated with the Desert Hills Litigation.
Current wording
Legal settlements expense. Legal settlements expense was $3.5 million for the six months ended June 30, 2025 related to costs associated with the Desert Hills Litigation.
Previous wording
Provision for income taxes. For the three months ended March 31, 2025, the provision for income taxes was $4.4 million, reflecting an effective tax rate of 32.7%, compared to $20.1 million, reflecting an effective tax rate of 20.3%, for the three months ended March 31, 2024. The increase in the effective tax rate for the three months ended March 31, 2025 was primarily attributable to our lower pre-tax results for the three months ended March 31, 2025, which yields higher volatility in the items impacting the effective tax rate when compared to prior periods and decreased deductions related to equity-based compensation in the current year. In addition, the three months ended March 31, 2024 included a tax benefit related to a legal entity restructuring.
Current wording
Provision for income taxes. For the six months ended June 30, 2025, the provision for income taxes was $16.5 million, reflecting an effective tax rate of 26.0%, compared to $45.7 million, reflecting an effective tax rate of 22.3%, for the six months ended June 30, 2024. The increase in the effective tax rate for the six months ended June 30, 2025 was primarily attributable to our lower pre-tax results for the six months ended June 30, 2025, which yields higher volatility in the items impacting the effective tax rate when compared to prior periods and decreased deductions related to equity-based compensation in the current year. In addition, the six months ended June 30, 2024 included a tax benefit related to a legal entity restructuring.
Previous wording
The following table presents revenue by payor type and as a percentage of revenue for the three months ended March 31, 2025 and 2024 (dollars in thousands):
Current wording
The following table presents revenue by payor type and as a percentage of revenue for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):
Previous wording
Cash provided by operating activities for the three months ended March 31, 2025 was $11.5 million compared to cash used in operating activities of $321.3 million for the three months ended March 31, 2024. Days sales outstanding at March 31, 2025 was 46 days compared to 43 days at December 31, 2024.
Current wording
Cash provided by operating activities for the six months ended June 30, 2025 was $145.0 million compared to cash used in operating activities of $150.1 million for the six months ended June 30, 2024. Days sales outstanding were 43 days for both June 30, 2025 and December 31, 2024.
Previous wording
Cash used in investing activities for the three months ended March 31, 2025 was $183.2 million compared to $184.6 million for the three months ended March 31, 2024. Cash used in investing activities for the three months ended March 31, 2025 primarily consisted of $174.6 million of cash paid for capital expenditures and $8.6 million of cash paid for acquisitions. Cash paid for capital expenditures for the three months ended March 31, 2025 was $174.6 million, consisting of routine or maintenance capital expenditures of $22.2 million and expansion capital expenditures of $152.4 million. We define expansion capital expenditures as those that increase the capacity of our facilities or otherwise enhance revenue. Routine or maintenance capital expenditures, including information technology capital expenditures, were approximately 3% of revenue for the three months ended March 31, 2025. Cash used in investing activities for the three months ended March 31, 2024 primarily consisted of $142.4 million of cash paid for capital expenditures, $50.4 million of cash paid for acquisitions and $0.9 million of other, offset by $9.1 million of proceeds from sales of property and equipment. Cash paid for capital expenditures for the three months ended March 31, 2024 was $142.4 million, consisting of routine or maintenance capital expenditures of $22.3 million and expansion capital expenditures of $120.1 million.
Current wording
Cash used in investing activities for the six months ended June 30, 2025 was $334.0 million compared to $340.1 million for the six months ended June 30, 2024. Cash used in investing activities for the six months ended June 30, 2025 primarily consisted of $342.4 million of cash paid for capital expenditures, $8.2 million of cash paid for acquisitions and $0.1 million of other, offset by $16.6 million of proceeds from sale of property and equipment. Cash paid for capital expenditures for the six months ended June 30, 2025 was $342.4 million, consisting of routine or maintenance capital expenditures of $51.2 million and expansion capital expenditures of $291.2 million. We define expansion capital expenditures as those that increase the capacity of our facilities or otherwise enhance revenue. Routine or maintenance capital expenditures, including information technology capital expenditures, were approximately 3% of revenue for the six months ended June 30, 2025. Cash used in investing activities for the six months ended June 30, 2024 primarily consisted of $296.7 million of cash paid for capital expenditures, $50.7 million of cash paid for acquisitions and $2.9 million of other, offset by $10.2 million of proceeds from sales of property and equipment. Cash paid for capital expenditures for the six months ended June 30, 2024 was $296.7 million, consisting of routine or maintenance capital expenditures of $44.1 million and expansion capital expenditures of $252.6 million.
Previous wording
Cash provided by financing activities for the three months ended March 31, 2025 was $186.7 million compared to $483.1 million for the three months ended March 31, 2024. Cash provided by financing activities for the three months ended March 31, 2025 consisted of borrowings on long-term debt of $1,200.0 million and borrowings on revolving credit facility of $760.0 million, offset by principal payments on revolving credit facility of $1,035.0 million, repayment of long-term debt of $670.9 million, payment of debt issuance costs of $18.6 million, repurchase of common stock of $46.9 million and repurchase of shares for payroll tax withholding, net of proceeds from stock option exercises of $1.9 million. Cash provided by financing activities for the three months ended March 31, 2024 consisted of borrowings on long-term debt of $350.0 million, borrowings on revolving credit facility of $160.0 million and contributions from noncontrolling partners in joint ventures of $2.3 million, offset by principal payments on revolving credit facility of $15.0 million, principal payments on long-term debt of $10.2 million, payment of debt issuance costs of $1.5 million, distributions to noncontrolling partners in joint ventures of $1.0 million, repurchase of shares for payroll tax withholding, net of proceeds from stock option exercises of $1.0 million and $0.4 million of other.
Current wording
Cash provided by financing activities for the six months ended June 30, 2025 was $244.2 million compared to $467.3 million for the six months ended June 30, 2024. Cash provided by financing activities for the six months ended June 30, 2025 consisted of borrowings on long-term debt of $1,200.0 million and borrowings on revolving credit facility of $830.0 million, offset by principal payments on revolving credit facility of $1,035.0 million, repayment of long-term debt of $670.9 million, repurchase of common stock of $50.0 million, payment of debt issuance costs of $18.6 million, principal payments on long-term debt of $4.1 million, withholding of shares for payroll tax, net of proceeds from stock option exercises, of $3.7 million, distributions to noncontrolling partners in joint ventures of $2.0 million, cash paid for contingent consideration of $1.5 million and $0.1 million of other. Cash provided by financing activities for the six months ended June 30, 2024 consisted of borrowings on long-term debt of $350.0 million, borrowings on revolving credit facility of $160.0 million and contributions from noncontrolling partners in joint ventures of $3.0 million, offset by principal payments on long-term debt of $25.6 million, principal payments on revolving credit facility of $15.0 million, repurchase of shares for payroll tax withholding, net of proceeds from stock option exercises, of $1.7 million, payment of debt issuance costs of $1.5 million, distributions to noncontrolling partners in joint ventures of $1.5 million and $0.4 million of other.
Previous wording
We had total available cash and cash equivalents of $91.2 million and $76.3 million at March 31, 2025 and December 31, 2024, respectively, of which approximately $6.0 million and $7.7 million was held by our foreign subsidiaries, respectively. Our strategic plan does not require the repatriation of foreign cash in order to fund our operations in the U.S.
Current wording
We had total available cash and cash equivalents of $131.4 million and $76.3 million at June 30, 2025 and December 31, 2024, respectively, of which approximately $8.8 million and $7.7 million was held by our foreign subsidiaries, respectively. Our strategic plan does not require the repatriation of foreign cash in order to fund our operations in the U.S.
Previous wording
Borrowings under the Credit Agreement bear interest at a floating rate equal to, at our option, either (i) a SOFR-based rate plus a margin ranging from 1.375% to 2.250% or (ii) a base rate plus a margin ranging from 0.375% to 1.250%, in each case, depending on our Consolidated Total Net Leverage Ratio. In addition, an unused fee that varies according to our Consolidated Total Net Leverage Ratio ranging from 0.200% to 0.350% is payable quarterly in arrears based on the average daily undrawn portion of the commitments in respect of the Revolving Facility. The Term Loan Facility requires quarterly principal repayments of $4.0 million from June 30, 2025 to March 31, 2026, $8.1 million from June 30, 2026 to March 31, 2028, $12.2 million from June 30, 2028 to March 31, 2029 and
Current wording
Borrowings under the Credit Agreement bear interest at a floating rate equal to, at our option, either (i) a SOFR-based rate plus a margin ranging from 1.375% to 2.250% or (ii) a base rate plus a margin ranging from 0.375% to 1.250%, in each case, depending on our Consolidated Total Net Leverage Ratio. In addition, an unused fee that varies according to our Consolidated Total Net Leverage Ratio ranging from 0.200% to 0.350% is payable quarterly in arrears based on the average daily undrawn portion of the commitments in respect of the Revolving Facility. The Term Loan Facility requires quarterly principal repayments of $4.0 million from September 30, 2025 to March 31, 2026, $8.1 million from June 30, 2026 to March 31, 2028, $12.2 million from June 30, 2028 to March 31, 2029 and $16.2 million from June 30, 2029 to December 31, 2029, with the remaining outstanding principal balance of the Term Loan Facility due on the maturity date of February 28, 2030.
Previous wording
During three months ended March 31, 2025, we borrowed $645.0 million on the Revolving Facility and repaid $550.0 million of the balance outstanding.
Current wording
During the six months ended June 30, 2025, we borrowed $715.0 million on the Revolving Facility and repaid $550.0 million of the balance outstanding.
Previous wording
At March 31, 2025, we had $901.6 million of availability under the Revolving Facility and had standby letters of credit outstanding of $3.4 million related to security for the payment of claims required by our workers’ compensation insurance program.
Current wording
At June 30, 2025, we had $828.3 million of availability under the Revolving Facility and had standby letters of credit outstanding of $6.7 million related to security for the payment of claims required by our workers’ compensation insurance program.
Previous wording
During the three months ended March 31, 2025, we borrowed $115.0 million on the Prior Revolving Facility and repaid $485.0 million of the balance outstanding. During the three months ended March 31, 2024, we borrowed $160.0 million on the Prior Revolving Facility and repaid $15.0 million of the balance outstanding.
Current wording
During the six months ended June 30, 2025, we borrowed $115.0 million on the Prior Revolving Facility and repaid $485.0 million of the balance outstanding. During the six months ended June 30, 2024, we borrowed $160.0 million on the Prior Revolving Facility and repaid $15.0 million of the balance outstanding.
Previous wording
We conduct substantially all of our business through our subsidiaries. The Senior Notes are jointly and severally guaranteed on an unsecured senior basis by all of our subsidiaries that guarantee our obligations under the Credit Agreement. The summarized financial information presented below is consistent with our condensed consolidated financial statements, except transactions between combining entities have been eliminated. Financial information for our combined non-guarantor entities has been excluded pursuant to SEC Regulation S-X Rule 13-01. Presented below is condensed financial information for our combined wholly-owned subsidiary guarantors at March 31, 2025 and December 31, 2024, and for the three months ended March 31, 2025.
Current wording
We conduct substantially all of our business through our subsidiaries. The Senior Notes are jointly and severally guaranteed on an unsecured senior basis by all of our subsidiaries that guarantee our obligations under the Credit Agreement. The summarized financial information presented below is consistent with our condensed consolidated financial statements, except transactions between combining entities have been eliminated. Financial information for our combined non-guarantor entities has been excluded pursuant to SEC Regulation S-X Rule 13-01. Presented below is condensed financial information for our combined wholly-owned subsidiary guarantors at June 30, 2025 and December 31, 2024, and for the six months ended June 30, 2025.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
Provision for income taxes. For the three months ended June 30, 2025, the provision for income taxes was $12.1 million, reflecting an effective tax rate of 24.1%, compared to $25.6 million, reflecting an effective tax rate of 24.1%, for the three months ended June 30, 2024.
Current report — wording carried from elsewhere
Revenue. Revenue increased $75.6 million, or 4.8%, to $1,639.7 million for the six months ended June 30, 2025 from $1,564.1 million for the six months ended June 30, 2024. The six months ended June 30, 2025, included $65.6 million of revenue for one state government program based on timing of program approval. Same facility revenue increased $88.8 million, or 5.8%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, resulting from same facility growth in revenue per day of 3.8%, same facility growth in patient days of 2.0%, and same facility growth in admissions of 1.7%. Consistent with same facility revenue growth in 2024, the growth in same facility patient days for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 resulted from the addition of beds to our existing facilities and ongoing demand for our services.
Current report — wording carried from elsewhere
Supplies. Supplies expense was $56.9 million for the six months ended June 30, 2025, or 3.5% of revenue, compared to $54.5 million for the six months ended June 30, 2024, or 3.5% of revenue. Same facility supplies expense was $55.0 million for the six months ended June 30, 2025, or 3.4% of revenue, compared to $52.7 million for the six months ended June 30, 2024, or 3.5% of revenue.
Current report — wording carried from elsewhere
Rents and leases. Rents and leases were $24.3 million for the six months ended June 30, 2025, or 1.5% of revenue, compared to $23.8 million for the six months ended June 30, 2024, or 1.5% of revenue. Same facility rents and leases were $21.3 million for the six months ended June 30, 2025, or 1.3% of revenue, compared to $21.0 million for the six months ended June 30, 2024, or 1.4% of revenue.
Current report — wording carried from elsewhere
Interest expense. Interest expense was $64.3 million for the six months ended June 30, 2025 compared to $56.4 million for the six months ended June 30, 2024. The increase in interest expense was primarily the result of interest on the 7.375% Senior Notes issued during the first quarter of 2025.
Current report — wording carried from elsewhere
Transaction, legal and other costs. Transaction, legal and other costs were $95.5 million for the six months ended June 30, 2025, compared to $8.9 million for the six months ended June 30, 2024. Transaction, legal and other costs represent legal, accounting, government investigation, termination, restructuring, management transition, acquisition and other similar costs incurred in the respective period, as summarized below (in thousands).
Current report — wording carried from elsewhere
Government investigations include legal fees and settlement costs related to certain litigation, including the matters referenced in Note 9 — Commitments and Contingencies in the accompanying notes to our condensed consolidated financial statements. Termination and restructuring costs include costs, net of gains, incurred related to workforce reductions, contract amendments, and the closure and disposition of certain facilities, including related lease terminations. Legal, accounting and other acquisition-related costs include costs incurred for the development of new facilities ($1.3 million and $2.0 million for the six months ended June 30, 2025 and 2024, respectively); legal and settlement costs incurred related to certain litigation not included in government investigations ($(2.6) million and $4.4 million for the six months ended June 30, 2025 and 2024, respectively); and direct costs associated with acquisitions ($0.4 million for the three months ended June 30, 2024). Management transition costs include certain costs associated with the transition of the leadership team, including the design and implementation of the revised organizational structure. Management transition costs incurred with the transition of our Chief Executive Officer beginning in the first quarter of 2022 concluded in the fourth quarter of 2024.
Current report — wording carried from elsewhere
As we continue to monitor the implications of potential tax legislation in each of our jurisdictions, we may adjust our estimates and record additional amounts for tax assets and liabilities. Any adjustments to our tax assets and liabilities could materially impact our provision for income taxes and our effective tax rate in the periods in which they are made.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
$16.2 million from June 30, 2029 to December 31, 2029, with the remaining outstanding principal balance of the Term Loan Facility due on the maturity date of February 28, 2030.