KING OF PRUSSIA, Pa.,
April 25, 2019 /PRNewswire/
-- Universal Health Services, Inc. (NYSE: UHS) announced today
that its reported net income attributable to UHS was $234.2 million, or $2.57 per diluted share, during the first quarter
of 2019 as compared to $223.8
million, or $2.36 per diluted
share, during the comparable quarter of 2018. Net revenues
increased 4.3% to $2.804 billion
during the first quarter of 2019 as compared to $2.688 billion during the first quarter of
2018.
For the three-month period ended March
31, 2019, our adjusted net income attributable to UHS, as
calculated on the attached Schedule of Non-GAAP Supplemental
Information ("Supplemental Schedule"), was $223.3 million, or $2.45 per diluted share, as compared to
$232.1 million, or $2.45 per diluted share, during the first quarter
of 2018.
Included in our reported and our adjusted net income
attributable to UHS during the first quarter of 2019, is a pre-tax
unrealized loss of $4.3 million, or
$.03 per diluted share (included in
"Other (income) expense, net"), resulting from a decrease in the
market value of shares of certain marketable securities held for
investment and classified as available for sale.
As reflected on the Supplemental Schedule, included in our
reported results during the first quarter of 2019, is a favorable
after-tax impact of $10.9 million, or
$.12 per diluted share, resulting
from our adoption of ASU 2016-09, "Compensation – Stock
Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting" ("ASU 2016-09").
As reflected on the Supplemental Schedule, included in our
reported results during the first quarter of 2018, is a net
aggregate unfavorable after-tax impact of $8.3 million, or $.09 per diluted share, consisting of: (i) an
unfavorable after-tax impact of $9.9
million, or $.11 per diluted
share, resulting from a $13.0 million
pre-tax increase in the reserve established in connection with the
discussions with the Department of Justice ("DOJ"), as discussed
below, and; (ii) a favorable after-tax impact of $1.6 million, or $.02 per diluted share, resulting from our
adoption of ASU 2016-09.
As calculated on the attached Supplemental Schedule, our
earnings before interest, taxes, depreciation & amortization
("EBITDA net of NCI", NCI is net income attributable to
noncontrolling interests), was $452.7
million during the first quarter of 2019 as compared to
$442.1 million during the first
quarter of 2018. Our adjusted earnings before interest,
taxes, depreciation & amortization ("Adjusted EBITDA net of
NCI"), which excludes the impacts of our adoption of ASU 2016-09,
other (income) expense, net, as well as the unfavorable impact of
the above-mentioned $13.0 million
pre-tax increase in the DOJ Reserve recorded during the first
quarter of 2018, was $457.2 million
during the first quarter of 2019 as compared to $455.1 million during the first quarter of
2018.
Acute Care Services – Three-month periods ended March 31, 2019 and 2018:
During the first
quarter of 2019, at our acute care hospitals owned during both
periods ("same facility basis"), adjusted admissions (adjusted for
outpatient activity) increased 4.9% and adjusted patient days
increased 4.4%, as compared to the first quarter of 2018. At these
facilities, net revenue per adjusted admission decreased 0.4% while
net revenue per adjusted patient day was unchanged during the first
quarter of 2019 as compared to the comparable quarter of 2018. Net
revenues from our acute care services on a same facility basis
increased 4.7% during the first quarter of 2019 as compared to the
comparable quarter of the prior year.
Behavioral Health Care Services – Three-month periods ended
March 31, 2019 and
2018:
During the first quarter of 2019, at our behavioral
health care facilities on a same facility basis, adjusted
admissions increased 2.9% while adjusted patient days increased
0.9% as compared to the first quarter of 2018. At these facilities,
net revenue per adjusted admission increased 0.4% while net revenue
per adjusted patient day increased 2.5% during the first quarter of
2019 as compared to the comparable quarter in 2018. On a same
facility basis, our behavioral health care services' net revenues
increased 3.0% during the first quarter of 2019 as compared to the
first quarter of 2018.
Net Cash Provided by Operating Activities and Share
Repurchase Program:
For the three months ended March 31, 2019, our net cash provided by
operating activities was $391 million
as compared to $410 million generated
during the first quarter of 2018. The net decrease of $19 million was due to: (i) an unfavorable change
of $29 million in accounts
receivable; (ii) $39 million of other
combined net unfavorable changes, partially offset by; (iii) a
favorable change of $49 million in
other working capital accounts resulting primarily from changes in
accounts payable due to timing of disbursements.
In conjunction with our January 1,
2019 adoption of ASU 2017-12, "Targeted Improvements to
Accounting for Hedging Activities", we have included the net cash
inflows or outflows, which were received or paid in connection with
foreign exchange contracts that hedge our investment in the U.K.,
in investing cash flows on the consolidated statements of cash
flows. Prior to 2019, these net inflows/outflows were
included in operating cash flows. Prior period amounts have been
reclassified to conform with current year presentation on the
consolidated statements of cash flows included
herein.
In December of 2018, our Board of Directors authorized a
$500 million increase to our stock
repurchase program, which increased the aggregate authorization to
$1.7 billion from the previous
$1.2 billion authorization approved
during 2017, 2016 and 2014. Pursuant to this program, we may
purchase shares of our Class B Common Stock, from time to time as
conditions allow, on the open market or in negotiated private
transactions.
In conjunction with this program, during the first quarter of
2019, we have repurchased 840,699 shares at an aggregate cost of
approximately $106.3 million,
(approximately $126 per
share). Since inception of the program in 2014 through
March 31, 2019, we have repurchased
approximately 11.51 million shares at an aggregate cost of
approximately $1.34 billion
(approximately $117 per
share).
Conference call information:
We will hold a conference
call for investors and analysts at 9:00 a.m.
eastern time on April 26,
2019. The dial-in number is 1-877-648-7971.
A live broadcast of the conference call will be available on our
website at www.uhsinc.com. Also, a replay of the call will be
available following the conclusion of the live call and will be
available for one full year.
DOJ Reserve:
As previously disclosed, during 2018 and
2017 our financial statements included increases to the reserve
established in connection with the civil aspects of the
government's investigation of certain of our behavioral health care
facilities. The aggregate pre-tax reserve amounted to approximately
$123 million as of both March 31, 2019 and December 31, 2018. Changes in the reserve may be
required in future periods as discussions with the Department of
Justice continue and additional information becomes
available. We cannot predict the ultimate resolution of this
matter and therefore can provide no assurance that final amounts
paid in settlement or otherwise, if any, or associated costs, as
well as the income tax deductibility of payments, will not differ
materially from our established reserve and assumptions related to
income tax deductibility. Please see Item 3-Legal
Proceedings in our Form 10-K for the year ended December 31, 2018 for additional disclosure in
connection with this matter.
Adoption of ASU 2016-02, "Leases (Topic 842): Amendments to
the FASB Accounting Standards Codification":
Effective
January 1, 2019, we adopted ASU
2016-02 which requires companies to, among other things, recognize
lease assets and lease liabilities on the balance sheet. As a
result of our adoption of ASU 2016-02, our consolidated balance
sheet as of March 31, 2019 includes
right of use assets-operating leases ($342.0
million) and operating lease liabilities ($56.1 million current and $286.1 million noncurrent). Prior period
financial statements were not adjusted for the effects of this new
standard.
General Information, Forward-Looking Statements and Risk
Factors and Non-GAAP Financial Measures:
One of the nation's
largest and most respected hospital companies, Universal Health
Services, Inc. ("UHS") has built an impressive record of
achievement and performance. Growing steadily since our inception
into an esteemed Fortune 500 corporation, our annual revenues were
$10.77 billion during 2018. In 2019,
UHS was again recognized as one of the World's Most Admired
Companies by Fortune; in 2018, ranked #268 on the Fortune
500; and in 2017, listed #275 in Forbes inaugural ranking of
America's Top 500 Public Companies.
Our operating philosophy is as effective today as it was 40
years ago, enabling us to provide compassionate care to our
patients and their loved ones: Build or acquire high quality
hospitals in rapidly growing markets, invest in the people and
equipment needed to allow each facility to thrive, and become the
leading healthcare provider in each community we serve.
Headquartered in King of Prussia,
PA, UHS has more than 87,000 employees and through its
subsidiaries operates 350 inpatient acute care hospitals and
behavioral health facilities and 37 outpatient and other facilities
located in 37 states, Washington,
D.C., Puerto Rico and the
United Kingdom. It acts as the
advisor to Universal Health Realty Income Trust, a real estate
investment trust (NYSE:UHT). For additional information on
the Company, visit our web site: http://www.uhsinc.com.
This press release contains forward-looking statements based on
current management expectations. Numerous factors, including
those disclosed herein, those related to healthcare industry trends
and those detailed in our filings with the Securities and Exchange
Commission (as set forth in Item 1A-Risk Factors and
in Item 7-Forward-Looking Statements and Risk Factors in our
Form 10-K for the year ended December 31,
2018), may cause the results to differ materially from those
anticipated in the forward-looking statements. Many of the
factors that will determine our future results are beyond our
capability to control or predict. These statements are subject to
risks and uncertainties and therefore actual results may differ
materially. Readers should not place undue reliance on such
forward-looking statements which reflect management's view only as
of the date hereof. We undertake no obligation to revise or
update any forward-looking statements, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise.
We believe that adjusted net income attributable to UHS,
adjusted net income attributable to UHS per diluted share, EBITDA
net of NCI and adjusted EBITDA net of NCI, which are non-GAAP
financial measures ("GAAP" is Generally Accepted Accounting
Principles in the United States of
America), are helpful to our investors as measures of our
operating performance. In addition, we believe that, when
applicable, comparing and discussing our financial results based on
these measures, as calculated, is helpful to our investors since it
neutralizes the effect in each year of material items impacting our
net income attributable to UHS, such as, changes in the reserve
established in connection with our discussions with the Department
of Justice, our adoption of ASU 2016-09 and other potential
material items that are nonrecurring or non-operational in nature
including, but not limited to, impairments of long-lived and
intangible assets, reserves for various matters including
settlements, legal judgments and lawsuits, costs related to
extinguishment of debt, gains/losses on sales of assets and
businesses, and other amounts that may be reflected in the current
or prior year financial statements that relate to prior periods. To
obtain a complete understanding of our financial performance these
measures should be examined in connection with net income
attributable to UHS, as determined in accordance with GAAP, and as
presented in the condensed consolidated financial statements and
notes thereto in this report or in our other filings with the
Securities and Exchange Commission including our Reports on Form
10-K for the year ended December 31,
2018. Since the items included or excluded from these
measures are significant components in understanding and assessing
financial performance under GAAP, these measures should not be
considered to be alternatives to net income as a measure of our
operating performance or profitability. Since these measures, as
presented, are not determined in accordance with GAAP and are thus
susceptible to varying calculations, they may not be comparable to
other similarly titled measures of other companies. Investors are
encouraged to use GAAP measures when evaluating our financial
performance.
Universal Health
Services, Inc.
|
Consolidated
Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
Three
months
|
|
ended March
31,
|
|
2019
|
|
2018
|
|
|
|
|
Net
revenues
|
$2,804,391
|
|
$2,687,516
|
|
|
|
|
Operating
charges:
|
|
|
|
Salaries, wages and benefits
|
1,365,546
|
|
1,300,148
|
Other
operating expenses
|
644,780
|
|
620,819
|
Supplies
expense
|
307,463
|
|
292,929
|
Depreciation and amortization
|
120,040
|
|
113,103
|
Lease
and rental expense
|
26,125
|
|
26,703
|
|
2,463,954
|
|
2,353,702
|
|
|
|
|
Income from
operations
|
340,437
|
|
333,814
|
|
|
|
|
Interest expense,
net
|
39,640
|
|
37,576
|
Other (income)
expense, net
|
4,501
|
|
0
|
|
|
|
|
Income before income
taxes
|
296,296
|
|
296,238
|
|
|
|
|
Provision for income
taxes
|
58,898
|
|
67,569
|
|
|
|
|
Net income
|
237,398
|
|
228,669
|
|
|
|
|
Less: Net
income attributable to
|
|
|
|
noncontrolling
interests ("NCI")
|
3,230
|
|
4,837
|
|
|
|
|
Net income
attributable to UHS
|
$234,168
|
|
$223,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS (a)
|
$2.57
|
|
$2.37
|
|
|
|
|
Diluted earnings per
share attributable to UHS (a)
|
$2.57
|
|
$2.36
|
Universal Health
Services, Inc.
|
Footnotes to
Consolidated Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
Three
months
|
(a) Earnings per
share calculation:
|
ended March
31,
|
|
2019
|
|
2018
|
Basic and
diluted:
|
|
|
|
Net income
attributable to UHS
|
$234,168
|
|
$223,832
|
Less: Net income
attributable to unvested restricted share grants
|
(515)
|
|
(104)
|
Net income
attributable to UHS - basic and diluted
|
$233,653
|
|
$223,728
|
|
|
|
|
Weighted average
number of common shares - basic
|
90,776
|
|
94,226
|
|
|
|
|
Basic earnings per
share attributable to UHS:
|
$2.57
|
|
$2.37
|
|
|
|
|
Weighted average
number of common shares
|
90,776
|
|
94,226
|
Add: Other share
equivalents
|
191
|
|
457
|
Weighted average
number of common shares and equiv. - diluted
|
90,967
|
|
94,683
|
|
|
|
|
Diluted earnings per
share attributable to UHS:
|
$2.57
|
|
$2.36
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the Three Months
ended March 31, 2019 and 2018
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA/Adjusted EBITDA net of NCI")
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
% Net
|
|
Three months
ended
|
|
% Net
|
|
March 31,
2019
|
|
revenues
|
|
March 31,
2018
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$234,168
|
|
|
|
$223,832
|
|
|
Depreciation and amortization
|
120,040
|
|
|
|
113,103
|
|
|
Interest
expense, net
|
39,640
|
|
|
|
37,576
|
|
|
Provision for income taxes
|
58,898
|
|
|
|
67,569
|
|
|
EBITDA net of
NCI
|
$452,746
|
|
16.1%
|
|
$442,080
|
|
16.4%
|
|
|
|
|
|
|
|
|
Other (income)
expense, net
|
4,501
|
|
|
|
-
|
|
|
Increase in DOJ
Reserve
|
-
|
|
|
|
13,000
|
|
|
Adjusted EBITDA net
of NCI
|
$457,247
|
|
16.3%
|
|
$455,080
|
|
16.9%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$2,804,391
|
|
|
|
$2,687,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$234,168
|
|
$2.57
|
|
$223,832
|
|
$2.36
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Increase in DOJ
Reserve, after-tax
|
-
|
|
-
|
|
9,911
|
|
0.11
|
Impact of ASU
2016-09
|
(10,907)
|
|
(0.12)
|
|
(1,598)
|
|
(0.02)
|
Subtotal
adjustments
|
(10,907)
|
|
(0.12)
|
|
8,313
|
|
0.09
|
Adjusted net income
attributable to UHS
|
$223,261
|
|
$2.45
|
|
$232,145
|
|
$2.45
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Comprehensive Income
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
Three
months
|
|
ended March
31,
|
|
2019
|
|
2018
|
|
|
|
|
Net income
|
$237,398
|
|
$228,669
|
Other comprehensive
income (loss):
|
|
|
|
Unrealized derivative gains (losses) on cash flow hedges
|
(2,917)
|
|
2,124
|
Foreign
currency translation adjustment
|
(14,262)
|
|
(4,341)
|
Other
|
0
|
|
2,367
|
Other comprehensive
income (loss) before tax
|
(17,179)
|
|
150
|
Income tax expense
(benefit) related to items of other comprehensive income
(loss)
|
(2,466)
|
|
1,077
|
Total other
comprehensive income (loss), net of tax
|
(14,713)
|
|
(927)
|
|
|
|
|
Comprehensive
income
|
222,685
|
|
227,742
|
Less: Comprehensive
income attributable to noncontrolling interests
|
3,230
|
|
4,837
|
Comprehensive income
attributable to UHS
|
$219,455
|
|
$222,905
|
Universal Health
Services, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2019
|
|
|
2018
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
62,726
|
|
$
|
105,220
|
Accounts receivable, net
|
|
|
1,602,405
|
|
|
1,509,909
|
Supplies
|
|
|
149,928
|
|
|
148,206
|
Other current assets
|
|
|
145,382
|
|
|
174,467
|
Total current assets
|
|
|
1,960,441
|
|
|
1,937,802
|
|
|
|
|
|
|
|
Property and
equipment
|
|
|
8,733,367
|
|
|
8,563,455
|
Less: accumulated
depreciation
|
|
|
(3,818,529)
|
|
|
(3,715,515)
|
|
|
|
4,914,838
|
|
|
4,847,940
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
|
|
3,856,664
|
|
|
3,844,628
|
Deferred income taxes
|
|
|
5,350
|
|
|
5,280
|
Right of use assets-operating leases
|
|
|
342,032
|
|
|
0
|
Deferred charges
|
|
|
8,207
|
|
|
8,772
|
Other
|
|
|
633,745
|
|
|
621,058
|
Total
Assets
|
|
$
|
11,721,277
|
|
$
|
11,265,480
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
71,991
|
|
$
|
63,446
|
Accounts payable and accrued liabilities
|
|
|
1,355,717
|
|
|
1,253,714
|
Legal reserves
|
|
|
128,294
|
|
|
129,150
|
Operating lease liabilities
|
|
|
56,136
|
|
|
0
|
Federal and state taxes
|
|
|
44,628
|
|
|
2,428
|
Total current liabilities
|
|
|
1,656,766
|
|
|
1,448,738
|
|
|
|
|
|
|
|
Other noncurrent
liabilities
|
|
|
364,334
|
|
|
361,809
|
Operating lease
liabilities noncurrent
|
|
|
286,101
|
|
|
0
|
Long-term
debt
|
|
|
3,821,938
|
|
|
3,935,187
|
Deferred income
taxes
|
|
|
35,984
|
|
|
49,661
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
3,843
|
|
|
4,292
|
|
|
|
|
|
|
|
UHS common
stockholders' equity
|
|
|
5,482,415
|
|
|
5,389,262
|
Noncontrolling
interest
|
|
|
69,896
|
|
|
76,531
|
Total equity
|
|
|
5,552,311
|
|
|
5,465,793
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
11,721,277
|
|
$
|
11,265,480
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
Three
months
|
|
ended March
31,
|
|
2019
|
|
2018
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$237,398
|
|
$228,669
|
Adjustments
to reconcile net income to net
|
|
|
|
cash provided by
operating activities:
|
|
|
|
Depreciation &
amortization
|
120,040
|
|
113,134
|
Gain on sale of
assets and businesses
|
0
|
|
(703)
|
Stock-based
compensation expense
|
17,591
|
|
19,700
|
Changes in
assets & liabilities, net of effects from
|
|
|
|
acquisitions and
dispositions:
|
|
|
|
Accounts
receivable
|
(101,619)
|
|
(72,526)
|
Accrued
interest
|
(2,687)
|
|
(6,209)
|
Accrued
and deferred income taxes
|
52,291
|
|
61,674
|
Other
working capital accounts
|
107,878
|
|
59,032
|
Other
assets and deferred charges
|
(3,771)
|
|
(5,438)
|
Other
|
(38,298)
|
|
8,211
|
Accrued
insurance expense, net of commercial premiums paid
|
24,398
|
|
23,125
|
Payments
made in settlement of self-insurance claims
|
(22,320)
|
|
(18,765)
|
Net cash provided by operating activities
|
390,901
|
|
409,904
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Property
and equipment additions, net of disposals
|
(169,848)
|
|
(189,041)
|
Acquisition of property and businesses
|
0
|
|
(20,931)
|
Inflows
(outflows) from foreign exchange contracts that hedge our net U.K.
investment
|
12,895
|
|
(45,853)
|
Proceeds
received from sales of assets and businesses
|
0
|
|
839
|
Costs
incurred for purchase and implementation of information technology
applications
|
(9,678)
|
|
(8,570)
|
Decrease
in capital reserves of commercial insurance subsidiary
|
0
|
|
100
|
Investment in, and advances to, joint ventures and
other
|
(879)
|
|
(8,675)
|
Net cash used in investing activities
|
(167,510)
|
|
(272,131)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Reduction of long-term debt
|
(114,540)
|
|
(140,676)
|
Additional borrowings
|
8,700
|
|
20,500
|
Repurchase of common shares
|
(143,785)
|
|
(9,441)
|
Dividends paid
|
(9,081)
|
|
(9,422)
|
Issuance
of common stock
|
2,726
|
|
2,545
|
Profit
distributions to noncontrolling interests
|
(10,314)
|
|
(4,217)
|
Net cash used in financing activities
|
(266,294)
|
|
(140,711)
|
|
|
|
|
Effect
of exchange rate changes on cash, cash equivalents and restricted
cash
|
794
|
|
1,857
|
Decrease in cash,
cash equivalents and restricted cash
|
(42,109)
|
|
(1,081)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
199,685
|
|
167,297
|
Cash, cash
equivalents and restricted cash, end of period
|
$157,576
|
|
$166,216
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
Interest
paid
|
$41,050
|
|
$41,539
|
|
|
|
|
Income taxes
paid, net of refunds
|
$5,087
|
|
$2,749
|
|
|
|
|
Noncash
purchases of property and equipment
|
$71,987
|
|
$84,708
|
|
|
|
|
Right-of-use
assets obtained in exchange for lease obligations
|
$355,981
|
|
$0
|
Universal Health
Services, Inc.
|
Supplemental
Statistical Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
|
|
|
|
Quarter
ended
|
Same
Facility:
|
|
|
|
|
3/31/2019
|
|
|
|
|
|
|
Acute Care
Hospitals
|
|
|
|
|
|
Revenues
|
|
|
|
|
4.7%
|
Adjusted
Admissions
|
|
|
|
|
4.9%
|
Adjusted Patient
Days
|
|
|
|
|
4.4%
|
Revenue Per Adjusted
Admission
|
|
|
|
-0.4%
|
Revenue Per Adjusted
Patient Day
|
|
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Behavioral Health
Hospitals
|
|
|
|
|
|
Revenues
|
|
|
|
|
3.0%
|
Adjusted
Admissions
|
|
|
|
|
2.9%
|
Adjusted Patient
Days
|
|
|
|
|
0.9%
|
Revenue Per Adjusted
Admission
|
|
|
|
0.4%
|
Revenue Per Adjusted
Patient Day
|
|
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UHS
Consolidated
|
|
|
First quarter
ended
|
|
|
|
3/31/2019
|
|
3/31/2018
|
|
|
|
|
|
|
Revenues
|
|
|
$2,804,391
|
|
$2,687,516
|
EBITDA net of
NCI
|
|
|
$452,746
|
|
$442,080
|
EBITDA Margin net of
NCI
|
|
|
16.1%
|
|
16.4%
|
Adjusted EBITDA net
of NCI
|
|
|
$457,247
|
|
$455,080
|
Adjusted EBITDA
Margin net of NCI
|
|
16.3%
|
|
16.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From
Operations
|
|
|
$390,901
|
|
$409,904
|
Days Sales
Outstanding
|
|
|
51
|
|
53
|
Capital
Expenditures
|
|
|
$169,848
|
|
$189,041
|
|
|
|
|
|
|
Debt
|
|
|
$3,893,929
|
|
$3,921,335
|
UHS' Shareholders
Equity
|
|
|
$5,482,415
|
|
$5,215,646
|
Debt / Total
Capitalization
|
|
|
41.5%
|
|
42.9%
|
Debt / EBITDA net of
NCI (1)
|
|
|
2.38
|
|
2.32
|
Debt / Adjusted
EBITDA net of NCI (1)
|
2.21
|
|
2.30
|
Debt / Cash From
Operations (1)
|
|
|
3.10
|
|
3.36
|
|
|
|
|
|
|
(1) Latest 4
quarters
|
|
|
|
|
|
Universal Health
Services, Inc.
|
|
|
|
Acute Care Hospital
Services
|
|
|
|
For the three months
ended
|
|
|
|
March 31, 2019 and
2018
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility
Basis - Acute Care Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
|
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
|
|
|
Net
revenues
|
|
$1,490,862
|
|
100.0%
|
|
$1,423,777
|
|
100.0%
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
618,691
|
|
41.5%
|
|
581,768
|
|
40.9%
|
|
|
|
|
Other operating
expenses
|
|
331,885
|
|
22.3%
|
|
308,181
|
|
21.6%
|
|
|
|
|
Supplies
expense
|
|
257,711
|
|
17.3%
|
|
243,153
|
|
17.1%
|
|
|
|
|
Depreciation and
amortization
|
|
74,228
|
|
5.0%
|
|
72,150
|
|
5.1%
|
|
|
|
|
Lease and rental
expense
|
|
14,256
|
|
1.0%
|
|
14,283
|
|
1.0%
|
|
|
|
|
Subtotal-operating
expenses
|
|
1,296,771
|
|
87.0%
|
|
1,219,535
|
|
85.7%
|
|
|
|
|
Income from
operations
|
|
194,091
|
|
13.0%
|
|
204,242
|
|
14.3%
|
|
|
|
|
Interest expense,
net
|
|
279
|
|
0.0%
|
|
531
|
|
0.0%
|
|
|
|
|
Other (income)
expense, net
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
Income before income
taxes
|
|
$193,812
|
|
13.0%
|
|
$203,711
|
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Acute Care
Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
|
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
|
|
|
Net
revenues
|
|
$1,514,844
|
|
100.0%
|
|
$1,445,632
|
|
100.0%
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
619,317
|
|
40.9%
|
|
581,768
|
|
40.2%
|
|
|
|
|
Other operating
expenses
|
|
356,231
|
|
23.5%
|
|
330,036
|
|
22.8%
|
|
|
|
|
Supplies
expense
|
|
258,144
|
|
17.0%
|
|
243,153
|
|
16.8%
|
|
|
|
|
Depreciation and
amortization
|
|
74,361
|
|
4.9%
|
|
72,150
|
|
5.0%
|
|
|
|
|
Lease and rental
expense
|
|
14,299
|
|
0.9%
|
|
14,283
|
|
1.0%
|
|
|
|
|
Subtotal-operating
expenses
|
|
1,322,352
|
|
87.3%
|
|
1,241,390
|
|
85.9%
|
|
|
|
|
Income from
operations
|
|
192,492
|
|
12.7%
|
|
204,242
|
|
14.1%
|
|
|
|
|
Interest expense,
net
|
|
279
|
|
0.0%
|
|
531
|
|
0.0%
|
|
|
|
|
Other (income)
expense, net
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
Income before income
taxes
|
|
$192,213
|
|
12.7%
|
|
$203,711
|
|
14.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe that
providing our results on a "Same Facility" basis (which is a
non-GAAP measure), which includes the operating results for
facilities and businesses operated in both the current year and
prior year periods, is helpful to our investors as a measure of our
operating performance. Our Same Facility results also neutralize
(if applicable), the effect of material items that are nonrecurring
or non-operational in nature including items such as, but not
limited to, reserves for various matters, settlements, legal
judgments and lawsuits, cost related to extinguishment of debt,
gains/losses on sales of assets and businesses, impairments of
long-lived and intangible assets and other amounts that may be
reflected in the current or prior year financial statements that
relate to prior periods. Our Same Facility basis results exclude
from net revenues and other operating expenses, provider tax
assessments incurred in each period. However, these provider tax
assessments are included in net revenues and other operating
expenses as reflected in the table under All Acute Care Hospital
Services. The provider tax assessments had no impact on the
income before income taxes as reflected on the above tables since
the amounts offset between net revenues and other operating
expenses. To obtain a complete understanding of our financial
performance, the Same Facility results should be examined in
connection with our net income as determined in accordance with
GAAP and as presented herein and the condensed consolidated
financial statements and notes thereto as contained in our Form
10-K for the year ended December 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The All Acute Care
Hospital Servicestable summarizes the results of operations for
all our acute care operations during the periods presented. These
amounts include: (i) our acute care results on a same facility
basis, as indicated above; (ii) the impact of provider tax
assessments which increased net revenues and other operating
expenses but had no impact on income before income taxes, and;
(iii) certain other amounts including the results of
facilities acquired or opened during the last twelve
months.
|
Universal Health
Services, Inc.
|
|
|
|
|
Behavioral Health
Care Services
|
|
|
|
|
For the three months
ended
|
|
|
|
|
March 31, 2019 and
2018
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility -
Behavioral Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
|
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
|
|
|
Net
revenues
|
|
$1,241,225
|
|
100.0%
|
|
$1,205,048
|
|
100.0%
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
655,586
|
|
52.8%
|
|
630,831
|
|
52.3%
|
|
|
|
|
Other operating
expenses
|
|
234,424
|
|
18.9%
|
|
230,586
|
|
19.1%
|
|
|
|
|
Supplies
expense
|
|
48,618
|
|
3.9%
|
|
48,743
|
|
4.0%
|
|
|
|
|
Depreciation and
amortization
|
|
39,872
|
|
3.2%
|
|
36,738
|
|
3.0%
|
|
|
|
|
Lease and rental
expense
|
|
10,917
|
|
0.9%
|
|
11,696
|
|
1.0%
|
|
|
|
|
Subtotal-operating
expenses
|
|
989,417
|
|
79.7%
|
|
958,594
|
|
79.5%
|
|
|
|
|
Income from
operations
|
|
251,808
|
|
20.3%
|
|
246,454
|
|
20.5%
|
|
|
|
|
Interest expense,
net
|
|
375
|
|
0.0%
|
|
427
|
|
0.0%
|
|
|
|
|
Other (income)
expense, net
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
Income before income
taxes
|
|
$251,433
|
|
20.3%
|
|
$246,027
|
|
20.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Behavioral
Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
|
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
|
|
|
Net
revenues
|
|
$1,286,383
|
|
100.0%
|
|
$1,237,996
|
|
100.0%
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
675,699
|
|
52.5%
|
|
642,128
|
|
51.9%
|
|
|
|
|
Other operating
expenses
|
|
262,137
|
|
20.4%
|
|
256,402
|
|
20.7%
|
|
|
|
|
Supplies
expense
|
|
49,131
|
|
3.8%
|
|
49,536
|
|
4.0%
|
|
|
|
|
Depreciation and
amortization
|
|
42,552
|
|
3.3%
|
|
38,454
|
|
3.1%
|
|
|
|
|
Lease and rental
expense
|
|
11,644
|
|
0.9%
|
|
12,301
|
|
1.0%
|
|
|
|
|
Subtotal-operating
expenses
|
|
1,041,163
|
|
80.9%
|
|
998,821
|
|
80.7%
|
|
|
|
|
Income from
operations
|
|
245,220
|
|
19.1%
|
|
239,175
|
|
19.3%
|
|
|
|
|
Interest expense,
net
|
|
375
|
|
0.0%
|
|
427
|
|
0.0%
|
|
|
|
|
Other (income)
expense, net
|
|
677
|
|
0.1%
|
|
-
|
|
-
|
|
|
|
|
Income before income
taxes
|
|
244,168
|
|
19.0%
|
|
238,748
|
|
19.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe that
providing our results on a "Same Facility" basis (which is a
non-GAAP measure), which includes the operating results for
facilities and businesses operated in both the current year and
prior year periods, is helpful to our investors as a measure of our
operating performance. Our Same Facility results also neutralize
(if applicable), the effect of material items that are nonrecurring
or non-operational in nature including items such as, but not
limited to, reserves for various matters, settlements, legal
judgments and lawsuits, cost related to extinguishment of debt,
gains/losses on sales of assets and businesses, impairments of
long-lived and intangible assets and other amounts that may be
reflected in the current or prior year financial statements that
relate to prior periods. Our Same Facility basis results exclude
from net revenues and other operating expenses, provider tax
assessments incurred in each period.However, these provider
tax assessments are included in net revenues and other operating
expenses as reflected in the table under All Behavioral Health
Care Services. The provider tax assessments had no impact on
the income before income taxes as reflected on the above tables
since the amounts offset between net revenues and other operating
expenses. To obtain a complete understanding of our financial
performance, the Same Facility results should be examined in
connection with our net income as determined in accordance with
GAAP and as presented herein and in the condensed consolidated
financial statements and notes thereto as contained in our Form
10-K for the year ended December 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The All Behavioral
Health Care Servicestable summarizes the results of operations
for all our behavioral health care facilities during the periods
presented. These amounts include: (i) our behavioral health
results on a same facility basis, as indicated above; (ii) the
impact of provider tax assessments which increased net revenues and
other operating expenses but had no impact on income before income
taxes, and; (iii) certain other amounts including the results
of facilities acquired or opened during the last twelve months as
well as the results of certain facilities that were closed or
restructured during the past year.
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the three months
ended
|
March 31, 2019 and
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
3/31/19
|
|
3/31/18
|
|
%
change
|
|
3/31/19
|
|
3/31/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
327
|
|
300
|
|
9.0%
|
Average licensed
beds
|
|
6,371
|
|
6,161
|
|
3.4%
|
|
23,509
|
|
23,240
|
|
1.2%
|
Average available
beds
|
|
6,195
|
|
5,985
|
|
3.5%
|
|
23,425
|
|
23,158
|
|
1.2%
|
Patient
days
|
|
369,720
|
|
352,818
|
|
4.8%
|
|
6,418,334
|
|
1,581,996
|
|
305.7%
|
Average daily
census
|
|
4,108.0
|
|
3,920.2
|
|
4.8%
|
|
17,584.5
|
|
17,577.7
|
|
0.0%
|
Occupancy-licensed
beds
|
|
64.5%
|
|
63.6%
|
|
1.3%
|
|
74.8%
|
|
75.6%
|
|
-1.1%
|
Occupancy-available
beds
|
|
66.3%
|
|
65.5%
|
|
1.2%
|
|
75.1%
|
|
75.9%
|
|
-1.1%
|
Admissions
|
|
80,663
|
|
76,643
|
|
5.2%
|
|
482,658
|
|
119,980
|
|
302.3%
|
Length of
stay
|
|
4.6
|
|
4.6
|
|
-0.4%
|
|
13.3
|
|
13.2
|
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$7,163,714
|
|
$6,361,766
|
|
12.6%
|
|
$2,483,999
|
|
$2,402,258
|
|
3.4%
|
Outpatient
revenue
|
|
4,257,614
|
|
3,714,661
|
|
14.6%
|
|
266,546
|
|
255,181
|
|
4.5%
|
Total patient
revenue
|
|
11,421,328
|
|
10,076,427
|
|
13.3%
|
|
2,750,545
|
|
2,657,439
|
|
3.5%
|
Other
revenue
|
|
109,326
|
|
98,187
|
|
11.3%
|
|
48,599
|
|
50,033
|
|
-2.9%
|
Gross hospital
revenue
|
|
11,530,654
|
|
10,174,614
|
|
13.3%
|
|
2,799,144
|
|
2,707,472
|
|
3.4%
|
Total
deductions
|
|
10,015,810
|
|
8,728,982
|
|
14.7%
|
|
1,512,761
|
|
1,469,476
|
|
2.9%
|
Net hospital
revenue
|
|
$1,514,844
|
|
$1,445,632
|
|
4.8%
|
|
$1,286,383
|
|
$1,237,996
|
|
3.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
3/31/19
|
|
3/31/18
|
|
%
change
|
|
3/31/19
|
|
3/31/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
289
|
|
289
|
|
0.0%
|
Average licensed
beds
|
|
6,371
|
|
6,161
|
|
3.4%
|
|
22,852
|
|
22,571
|
|
1.2%
|
Average available
beds
|
|
6,195
|
|
5,985
|
|
3.5%
|
|
22,752
|
|
22,489
|
|
1.2%
|
Patient
days
|
|
369,720
|
|
352,818
|
|
4.8%
|
|
1,570,752
|
|
1,557,954
|
|
0.8%
|
Average daily
census
|
|
4,108.0
|
|
3,920.2
|
|
4.8%
|
|
17,452.8
|
|
17,310.6
|
|
0.8%
|
Occupancy-licensed
beds
|
|
64.5%
|
|
63.6%
|
|
1.3%
|
|
76.4%
|
|
76.7%
|
|
-0.4%
|
Occupancy-available
beds
|
|
66.3%
|
|
65.5%
|
|
1.2%
|
|
76.7%
|
|
77.0%
|
|
-0.3%
|
Admissions
|
|
80,663
|
|
76,643
|
|
5.2%
|
|
122,169
|
|
118,788
|
|
2.8%
|
Length of
stay
|
|
4.6
|
|
4.6
|
|
-0.4%
|
|
12.9
|
|
13.1
|
|
-2.0%
|
View original
content:http://www.prnewswire.com/news-releases/universal-health-services-inc-reports-2019-first-quarter-financial-results-300838634.html
SOURCE Universal Health Services, Inc.