Sep 30 2009
Psychiatric Solutions, Inc. (“PSI”) (NASDAQ: PSYS) today announced that it has extended the maturity of its entire $300 million revolving credit facility to December 31, 2011. Earlier this year, PSI announced that the maturity of $200 million of its $300 million revolving credit facility had been extended until the end of 2011 from the originally scheduled maturity on December 21, 2009. The maturity of the remaining $100 million of the revolving credit facility has now also been extended to December 31, 2011. The revolver currently has an outstanding balance of approximately $80 million.
Brent Turner, Executive Vice President, Finance and Administration of PSI, commented, “In a challenging credit environment, we are very pleased to have extended the maturity of the final $100 million of our revolving credit facility. The extension provides us with $300 million through 2011, which, combined with the free cash flow we expect going forward, positions us well to continue adding new beds through acquisition and internal development. Consistent with our renewed focus on acquisitions, we completed the purchase of a 107-bed inpatient psychiatric facility in early September, and our active pipeline includes a number of potential facility acquisitions.”
PSI also today adjusted its financial guidance for 2009 to reflect the previously announced definitive agreement for the sale of its EAP business for approximately $70 million in cash. The transaction is expected to be consummated in the fourth quarter of 2009 and is subject to customary closing conditions, including applicable regulatory approvals in California. While PSI continues to expect this business to contribute approximately $0.08 per diluted share to net income for 2009, this contribution will now be classified as income from discontinued operations. Accordingly, PSI has adjusted its guidance for 2009 earnings from continuing operations per diluted share by $0.08 to a range of $2.16 to $2.24 from the previous range of $2.24 to $2.32. This guidance reflects growth of 18% to 22% compared with earnings from continuing operations for 2008 of $1.83 per diluted share, which also reflects the results of the EAP business in discontinued operations. Due to greater interest expense savings in 2010 resulting from the sale, PSI expects the net impact of the sale on 2010 earnings from continuing operations to be in a range of $0.04 to $0.06 per diluted share. The Company’s financial guidance does not include the impact from any future acquisitions.