Psychiatric Solutions Lowers Adjusted Profit View

FRANKLIN, Tenn. (AP) — Psychiatric Solutions Inc., a provider of behavioral health services, cut its 2009 profit outlook Wednesday, citing the sale of its employee assistance program provider.

Psychiatric Solutions now expects adjusted profit between $2.16 and $2.24 per share, down from prior guidance of $2.24 to $2.32 per share. Analysts polled by Thomson Reuters had forecast profit of $2.30 per share.

The company is selling its employee assistance program provider Horizon Behavioral Services LLC to Aetna Inc. for $70 million in cash. The deal is expected to close in the fourth quarter and the company has decided to classify the business as a discontinued operation.

Meanwhile, the company extended the maturity of its entire $300 million revolving credit facility to Dec. 31, 2011 from Dec. 21, 2009. The extension, along with cash, allows for the addition of new beds through both buyouts and internal development, the company said.

Shares of Psychiatric Solutions fell 17 cents to $26.35 in afternoon trading.