Attached files

file filename
8-K - FORM 8-K - UNIVERSAL HEALTH SERVICES INCd575993d8k.htm
EX-10.1 - EX-10.1 - UNIVERSAL HEALTH SERVICES INCd575993dex101.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

CONTACT:    Steve Filton   
   Chief Financial Officer    July 25, 2013
   610-768-3300   

UNIVERSAL HEALTH SERVICES, INC. REPORTS FINANCIAL RESULTS FOR THREE AND SIX MONTHS ENDED JUNE 30, 2013

Consolidated Results of Operations, As Reported – Three and six-month periods ended June 30, 2013 and 2012:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $151.8 million, or $1.53 per diluted share, during the second quarter of 2013 as compared to $107.6 million, or $1.10 per diluted share, during the comparable quarter of 2012. Net revenues increased 6.5% to $1.83 billion during the second quarter of 2013 as compared to $1.72 billion during the second quarter of 2012.

Reported net income attributable to UHS was $271.6 million, or $2.75 per diluted share, during the first six months of 2013 as compared to $236.2 million, or $2.41 per diluted share, during the comparable period of 2012. Net revenues increased 4.3% to $3.67 billion during the six-month period ended June 30, 2013 as compared to $3.52 billion during the comparable six-month period of 2012.

Consolidated Results of Operations, As Adjusted – Three and six-month periods ended June 30, 2013 and 2012:

For the three-month period ended June 30, 2013, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”), was $118.9 million, or $1.20 per diluted share, as compared to $109.1 million, or $1.12 per diluted share, during the second quarter of 2012.

As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2013 was: (i) a net favorable after-tax impact of $37.8 million, or $.38 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2013, based upon a reserve analysis, and; (ii) an unfavorable after-tax impact of approximately $4.9 million, or $.05 per diluted share, related to the incentive income and expenses recorded in connection with the implementation of electronic health records (“EHR”) applications at our acute care hospitals (as discussed below in Accounting for HITECH Act incentive income and EHR expenses).

As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2012, was a net favorable after-tax impact of $3.4 million, or $.03 per diluted share, consisting primarily of the 2011 portion of net Medicaid supplemental revenues recorded during the quarter, and an unfavorable after-tax impact of approximately $5.0 million, or $.05 per diluted share, related to the incentive income and expenses recorded in connection with the implementation of EHR applications at our acute care hospitals


Included in our reported results during the six-month period ended June 30, 2013 was the above-mentioned net favorable after-tax impact of $37.8 million, or $.38 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to prior years, and an unfavorable after-tax impact of approximately $5.3 million, or $.05 per diluted share, related to the incentive income and expenses recorded in connection with the implementation of EHR applications.

Included in our reported results during the first six months of 2012 was the above-mentioned unfavorable after-tax impact of approximately $5.0 million, or $.05 per diluted share, recorded in connection with the implementation of EHR applications, and an aggregate favorable after-tax impact of $21.4 million, or $.21 per diluted share, consisting of the following: (i) a favorable after-tax impact of $18.8 million resulting from an industry-wide settlement with the United States Department of Health and Human Services, the Secretary of Health and Human Services, and the Centers for Medicare and Medicaid Services, related to underpayments of Medicare inpatient prospective payments during a number of years prior to 2012; (ii) a favorable after-tax impact of $4.3 million representing the 2011 portion of the net Medicaid supplemental reimbursements recorded pursuant to the Oklahoma Supplemental Hospital Offset Payment Program; (iii) an aggregate unfavorable after-tax impact of $5.1 million resulting from the revised Supplemental Security Income ratios utilized for calculating Medicare disproportionate share hospital reimbursements for federal fiscal years 2006 through 2009 ($2.4 million unfavorable after-tax impact), and the write-off of receivables related to revenues recorded during 2011 at two of our acute care hospitals located in Florida resulting from reductions in certain county reimbursements due to reductions in federal matching Inter-Governmental Transfer funds ($2.7 million unfavorable after-tax impact), and; (iv) a net favorable after-tax impact of $3.4 million consisting primarily of the 2011 portion of net Medicaid supplemental revenues recorded during the second quarter.

Acute Care Services – Three and six-month periods ended June 30, 2013 and 2012:

During the second quarter of 2013, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased 2.0% and adjusted patient days increased 1.2%, as compared to the second quarter of 2012. Net revenues at these facilities increased 4.9% during the second quarter of 2013 as compared to the comparable quarter of 2012. At these facilities, net revenue per adjusted admission increased 2.9% while net revenue per adjusted patient day increased 3.7% during the second quarter of 2013 as compared to the second quarter of 2012. On a same facility basis, the operating margin at our acute care hospitals decreased to 14.8% during the second quarter of 2013 as compared to 16.1% during the second quarter of 2012. We define operating margin as net revenues less salaries, wages and benefits, other operating expenses and supplies expense (excluding the impact of the items mentioned above and as indicated on the Supplemental Schedule).

During the first six months of 2013, at our acute care hospitals on a same facility basis, adjusted admissions increased 0.2% and adjusted patient days increased 0.7%, as compared to the first six months of 2012. Net revenues at these facilities increased 2.8% during the six-month period ended June 30, 2013 as compared to the comparable period in 2012. At these facilities, net revenue per adjusted admission increased 2.5% while net revenue per adjusted patient day increased 2.1% during the first six months of 2013 as compared to the comparable period in 2012. On a same facility basis, the operating margin at our acute care hospitals decreased to 15.4% during the first six months of 2013 as compared to 17.6% during the first six months 2012.


We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $258 million and $266 million during the three-month periods ended June 30, 2013 and 2012, respectively, and $489 million and $581 million during the six-month periods ended June 30, 2013 and 2012, respectively. The decrease in charity care and uninsured discounts recorded at our acute care hospitals during the 2013 periods, as compared to the comparable 2012 periods, was offset by an increase in the provision for doubtful accounts which amounted to $216 million and $164 million during the three-month periods ended June 30, 2013 and 2012, respectively, and $434 million and $290 million during the six-month periods ended June 30, 2013 and 2012, respectively.

Behavioral Health Care Services – Three and six-month periods ended June 30, 2013 and 2012:

During the second quarter of 2013, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 5.4% while adjusted patient days increased 1.8%, as compared to the second quarter of 2012. Net revenues at these facilities increased 3.2% during the second quarter of 2013, as compared to the comparable quarter in 2012. At these facilities, net revenue per adjusted admission decreased 2.1% while net revenue per adjusted patient day increased 1.3% during the second quarter of 2013 over the comparable quarter in 2012. The operating margin at our behavioral health care facilities owned during both periods remained unchanged at 28.7% during each of the three-month periods ended June 30, 2013 and 2012.

During the first six months of 2013, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 2.9% while adjusted patient days increased 0.8%, as compared to the first six months of 2012. Net revenues at these facilities increased 2.8% during the six-month period ended June 30, 2013, as compared to the comparable period in 2012. At these facilities, net revenue per adjusted admission remained relatively flat while net revenue per adjusted patient day increased 2.0% during the first six months of 2013 over the comparable period in 2012. The operating margin at our behavioral health care facilities owned during both periods increased to 28.6% during the six-month period ended June 30, 2013, as compared to 27.7% during the comparable period in 2012.

Accounting for HITECH Act incentive income and EHR expenses:

The health information technology provisions of the American Recovery and Reinvestment Act (referred to as the “HITECH Act”) established criteria related to the “meaningful use” of electronic health records (“EHR”) for acute care hospitals and established requirements for the Medicare and Medicaid EHR payment incentive programs.

During 2011, we began implementing EHR applications at certain of our acute care hospitals and continued to do so, on a hospital-by-hospital basis, until completion which occurred at the end of June, 2013. Our acute care hospitals are eligible for Medicare and Medicaid EHR incentive payments upon implementation of the EHR application, assuming they meet the “meaningful use” criteria. As of June 30, 2013, fifteen of our acute care hospitals met the “meaningful use” criteria and we expect the remainder to do so by the end of 2013.

As reflected on the Supplemental Schedule, in connection with the implementation of EHR applications, our consolidated results of operations include the net unfavorable after-tax impact of $4.9


million ($7.9 million pre-tax) during the second quarter of 2013 and $5.0 million ($8.0 million pre-tax) during the second quarter of 2012. In connection with the implementation of EHR applications, our consolidated results of operations include the net unfavorable after-tax impact of $5.3 million ($8.4 million pre-tax) during the first six months of 2013 and $5.0 million ($8.0 million pre-tax) during the comparable six-month period of 2012.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 26, 2013. 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. A replay of the call will follow shortly after conclusion of the live call and will be available for one full year.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

Universal Health Services, Inc. (“UHS”) is one of the nation’s largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico and the U.S. Virgin Islands. 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, 2012 and in Item 2-Forward-Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended March 31, 2013), may cause the results to differ materially from those anticipated in the forward-looking statements. The operating pressures that we continue to experience in many of our acute care markets has increased the volatility of our financial results making estimation of future results more challenging. 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.

As mentioned above, our acute care hospitals may qualify for EHR incentive payments upon implementation of an EHR application assuming they meet the “meaningful use” criteria. However, there can be no assurance that we (our acute care hospitals) will ultimately qualify for these incentive payments and, should we qualify, we are unable to quantify the amount of incentive payments we may receive since the amounts are dependent upon various factors including the implementation timing at each hospital. Should we qualify for incentive payments, there may be timing differences in the recognition of the incentive income and expenses recorded in connection with the implementation of the EHR application which may cause material period-to-period changes in our future results of operations. Hospitals that do not qualify as a meaningful user of EHR by 2015 are subject to a reduced market


basket update to the inpatient prospective payment system standardized amount in 2015 and each subsequent fiscal year. Although we believe that our acute care hospitals will be in compliance with the EHR standards by 2015, there can be no assurance that all of our facilities will be in compliance and therefore not subject to the penalty provision of the HITECH Act.

We believe that operating income, operating margin, adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share and earnings before interest, taxes, depreciation and amortization (“EBITDA”), 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 that are nonrecurring or non-operational in nature including items such as, but not limited to, costs related to extinguishment of debt, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits 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, determined in accordance with GAAP, 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 Report on Form 10-K for the year ended December 31, 2012 and report on Form 10-Q for the quarterly period ended March 31, 2013. 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.

(more)


Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

     Three months
ended June 30,
    Six months
ended June 30,
 
     2013     2012     2013     2012  

Net revenues before provision for doubtful accounts

   $ 2,081,662      $ 1,907,789      $ 4,160,010      $ 3,849,412   

Less: Provision for doubtful accounts

     246,687        184,706        493,403        333,293   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net revenues

     1,834,975        1,723,083        3,666,607        3,516,119   

Operating charges:

        

Salaries, wages and benefits

     897,334        854,863        1,799,630        1,726,977   

Other operating expenses

     325,562        345,061        706,569        696,361   

Supplies expense

     202,344        197,816        406,986        403,176   

Depreciation and amortization

     81,682        72,983        161,494        144,775   

Lease and rental expense

     24,082        23,983        48,747        47,425   

Electronic health records incentive income

     (83     (1,955     (4,795     (1,955
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,530,921        1,492,751        3,118,631        3,016,759   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     304,054        230,332        547,976        499,360   

Interest expense, net

     38,236        45,888        78,174        92,598   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     265,818        184,444        469,802        406,762   

Provision for income taxes

     98,015        67,000        172,064        146,748   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     167,803        117,444        297,738        260,014   

Less: Income attributable to noncontrolling interests

     15,962        9,883        26,113        23,846   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to UHS

   $ 151,841      $ 107,561      $ 271,625      $ 236,168   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share attributable to UHS (a)

   $ 1.55      $ 1.11      $ 2.77      $ 2.44   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share attributable to UHS (a)

   $ 1.53      $ 1.10      $ 2.75      $ 2.41   
  

 

 

   

 

 

   

 

 

   

 

 

 


Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

     Three months     Six months  
     ended June 30,     ended June 30,  
     2013     2012     2013     2012  

(a) Earnings per share calculation:

        

Basic and diluted:

        

Net income attributable to UHS

   $ 151,841      $ 107,561      $ 271,625      $ 236,168   

Less: Net income attributable to unvested restricted share grants

     (88     (126     (157     (294
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to UHS - basic and diluted

   $ 151,753      $ 107,435      $ 271,468      $ 235,874   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares - basic

     98,033        96,691        97,872        96,642   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share attributable to UHS:

   $ 1.55      $ 1.11      $ 2.77      $ 2.44   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares

     98,033        96,691        97,872        96,642   

Add: Other share equivalents

     1,178        1,038        1,019        1,118   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares and equiv. - diluted

     99,211        97,729        98,891        97,760   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share attributable to UHS:

   $ 1.53      $ 1.10      $ 2.75      $ 2.41   
  

 

 

   

 

 

   

 

 

   

 

 

 


Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”)

For the three months ended June 30, 2013 and 2012

(in thousands, except per share amounts)

(unaudited)

Calculation of “EBITDA”

 

     Three months ended     Three months ended  
     June 30, 2013     June 30, 2012  

Net revenues before provision for doubtful accounts

   $ 2,081,662        $ 1,907,789     

Less: Provision for doubtful accounts

     246,687          184,706     
  

 

 

     

 

 

   

Net revenues

     1,834,975        100.0     1,723,083        100.0

Operating charges:

        

Salaries, wages and benefits

     897,334        48.9     854,863        49.6

Other operating expenses

     325,562        17.7     345,061        20.0

Supplies expense

     202,344        11.0     197,816        11.5

EHR incentive income

     (83     0.0     (1,955     -0.1
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,425,157        77.7     1,395,785        81.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income/margin (“EBITDAR”)

     409,818        22.3     327,298        19.0

Lease and rental expense

     24,082          23,983     

Income attributable to noncontrolling interests

     15,962          9,883     
  

 

 

     

 

 

   

Earnings before, depreciation and amortization, interest expense, and income taxes (“EBITDA”)

     369,774        20.2     293,432        17.0

Depreciation and amortization

     81,682          72,983     

Interest expense, net

     38,236          45,888     
  

 

 

     

 

 

   

Income before income taxes

     249,856          174,561     

Provision for income taxes

     98,015          67,000     
  

 

 

     

 

 

   

Net income attributable to UHS

   $ 151,841        $ 107,561     
  

 

 

     

 

 

   

Calculation of Adjusted Net Income Attributable to UHS

 

     Three months ended     Three months ended  
     June 30, 2013     June 30, 2012  
           Per           Per  
     Amount     Diluted Share     Amount     Diluted Share  

Calculation of Adjusted Net Income Attributable to UHS - including and excluding EHR impact:

        

Net income attributable to UHS

   $ 151,841      $ 1.53      $ 107,561      $ 1.10   

Plus/minus adjustments:

        

Reduction of reserves relating to prior years for professional and general liability self-insured claims, net of income taxes

     (37,826     (0.38     —          —     

Net Medicaid reimbursements related to prior years, net of income taxes

     —          —          (3,417     (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal after-tax adjustments to net income attributable to UHS

     (37,826     (0.38     (3,417     (0.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income attributable to UHS - including Electronic Health Records (“EHR”) impact

   $ 114,015      $ 1.15      $ 104,144      $ 1.07   
  

 

 

   

 

 

   

 

 

   

 

 

 

Plus/minus impact of EHR implementation:

        

EHR-related incentive income, pre-tax

     (83       (1,955  

EHR-related salaries, wages and benefits, pre-tax

     (88       7,943     

EHR-related other operating costs, pre-tax

     2,053          396     

EHR-related depreciation & amortization, pre-tax

     7,006          3,527     

EHR-related minority interest in earnings of consolidated entities, pre-tax

     (984       (1,897  

Income tax provision on EHR-related items

     (2,977       (3,034  
  

 

 

   

 

 

   

 

 

   

 

 

 

After-tax impact of EHR-related items

     4,927        0.05        4,980        0.05   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income attributable to UHS

   $ 118,942      $ 1.20      $ 109,124      $ 1.12   
  

 

 

   

 

 

   

 

 

   

 

 

 


Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”)

For the six months ended June 30, 2013 and 2012

(in thousands, except per share amounts)

(unaudited)

Calculation of “EBITDA”

 

     Six months ended     Six months ended  
     June 30, 2013     June 30, 2012  

Net revenues before provision for doubtful accounts

   $ 4,160,010        $ 3,849,412     

Less: Provision for doubtful accounts

     493,403          333,293     
  

 

 

     

 

 

   

Net revenues

     3,666,607        100.0     3,516,119        100.0

Operating charges:

        

Salaries, wages and benefits

     1,799,630        49.1     1,726,977        49.1

Other operating expenses

     706,569        19.3     696,361        19.8

Supplies expense

     406,986        11.1     403,176        11.5

EHR incentive income

     (4,795     -0.1     (1,955     -0.1
  

 

 

   

 

 

   

 

 

   

 

 

 
     2,908,390        79.3     2,824,559        80.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income/margin (“EBITDAR”)

     758,217        20.7     691,560        19.7

Lease and rental expense

     48,747          47,425     

Income attributable to noncontrolling interests

     26,113          23,846     
  

 

 

     

 

 

   

Earnings before, depreciation and amortization, interest expense, and income taxes (“EBITDA”)

     683,357        18.6     620,289        17.6

Depreciation and amortization

     161,494          144,775     

Interest expense, net

     78,174          92,598     
  

 

 

     

 

 

   

Income before income taxes

     443,689          382,916     

Provision for income taxes

     172,064          146,748     
  

 

 

     

 

 

   

Net income attributable to UHS

   $ 271,625        $ 236,168     
  

 

 

     

 

 

   

Calculation of Adjusted Net Income Attributable to UHS

 

     Six months ended     Six months ended  
     June 30, 2013     June 30, 2012  
           Per           Per  
     Amount     Diluted Share     Amount     Diluted Share  

Calculation of Adjusted Net Income Attributable to UHS - including and excluding EHR impact:

        

Net income attributable to UHS

   $ 271,625      $ 2.75      $ 236,168      $ 2.41   

Plus/minus adjustments:

        

Reduction of reserves relating to prior years for professional and general liability self-insured claims, net of income taxes

     (37,826       —       

Medicare Rural Floor settlement, net of income taxes

     —            (18,753  

Oklahoma SHOPP Medicaid reimbursements related to prior years, net of income taxes

     —            (4,329  

Impact of revised SSI ratios and write-off Florida county receivables, net of income taxes

     —            5,149     

Net Medicaid reimbursements related to prior years, net of income taxes

     —            (3,417  
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal after-tax adjustments to net income attributable to UHS

     (37,826     (0.38     (21,350     (0.21
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income attributable to UHS - including Electronic Health Records (“EHR”) impact

   $ 233,799      $ 2.37      $ 214,818      $ 2.20   
  

 

 

   

 

 

   

 

 

   

 

 

 

Plus/minus impact of EHR implementation:

        

EHR-related incentive income, pre-tax

     (4,795       (1,955  

EHR-related salaries, wages and benefits, pre-tax

     238          7,943     

EHR-related other operating costs, pre-tax

     2,018          396     

EHR-related depreciation & amortization, pre-tax

     12,492          3,527     

EHR-related minority interest in earnings of consolidated entities, pre-tax

     (1,525       (1,897  

Income tax provision on EHR-related items

     (3,174       (3,034  
  

 

 

   

 

 

   

 

 

   

 

 

 

After-tax impact of EHR-related items

     5,254        0.05        4,980        0.05   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income attributable to UHS

   $ 239,053      $ 2.42      $ 219,798      $ 2.25   
  

 

 

   

 

 

   

 

 

   

 

 

 


Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

 

     Three months     Six months  
     ended June 30,     ended June 30,  
     2013     2012     2013     2012  

Net income

   $ 167,803      $ 117,444      $ 297,738      $ 260,014   

Other comprehensive income (loss):

        

Unrealized derivative gains (loss) on cash flow hedges

     5,282        212        9,817        1,827   

Amortization of terminated hedge

     (84     (84     (168     (168
  

 

 

   

 

 

   

 

 

   

 

 

 

Other comprehensive (loss) income before tax

     5,198        128        9,649        1,659   

Income tax (benefit) expense related to items of other comprehensive income (loss)

     1,960        50        3,638        632   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive (loss) income, net of tax

     3,238        78        6,011        1,027   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

     171,041        117,522        303,749        261,041   

Less: Comprehensive income attributable to noncontrolling interests

     15,962        9,883        26,113        23,846   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to UHS

   $ 155,079      $ 107,639      $ 277,636      $ 237,195   
  

 

 

   

 

 

   

 

 

   

 

 

 


Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

     June 30,     December 31,  
     2013     2012  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 12,558      $ 23,471   

Accounts receivable, net

     1,149,477        1,067,197   

Supplies

     100,324        99,000   

Deferred income taxes

     134,888        104,461   

Other current assets

     86,733        87,936   

Assets of facilities held for sale

     0        25,431   
  

 

 

   

 

 

 

Total current assets

     1,483,980        1,407,496   
  

 

 

   

 

 

 

Property and equipment

     5,519,819        5,368,345   

Less: accumulated depreciation

     (2,116,414     (1,986,110
  

 

 

   

 

 

 
     3,403,405        3,382,235   
  

 

 

   

 

 

 

Other assets:

    

Goodwill

     3,041,346        3,036,765   

Deferred charges

     66,910        75,888   

Other

     321,612        298,459   
  

 

 

   

 

 

 
   $ 8,317,253      $ 8,200,843   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Current maturities of long-term debt

   $ 73,579      $ 2,589   

Accounts payable and accrued liabilities

     958,952        889,557   

Federal and state taxes

     16,619        1,062   

Liabilities of facilities held for sale

     0        850   
  

 

 

   

 

 

 

Total current liabilities

     1,049,150        894,058   
  

 

 

   

 

 

 

Other noncurrent liabilities

     310,948        395,355   

Long-term debt

     3,473,106        3,727,431   

Deferred income taxes

     206,818        183,747   

Redeemable noncontrolling interest

     233,417        234,303   

UHS common stockholders’ equity

     2,991,457        2,713,345   

Noncontrolling interest

     52,357        52,604   
  

 

 

   

 

 

 

Total equity

     3,043,814        2,765,949   
  

 

 

   

 

 

 
   $ 8,317,253      $ 8,200,843   
  

 

 

   

 

 

 


Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

     Six months  
     ended June 30,  
     2013     2012  

Cash Flows from Operating Activities:

    

Net income

   $ 297,738      $ 260,014   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation & amortization

     161,677        148,703   

Stock-based compensation expense

     13,579        10,996   

Gains on sales of assets and business, net of losses

     (2,277     0   

Changes in assets & liabilities, net of effects from acquisitions and dispositions:

    

Accounts receivable

     (82,224     (63,937

Accrued interest

     13,199        15,873   

Accrued and deferred income taxes

     18,365        3,955   

Other working capital accounts

     32,421        (13,085

Other assets and deferred charges

     9,069        13,866   

Other

     4,083        2,050   

Accrued insurance expense, net of commercial premiums paid

     (22,590     42,241   

Payments made in settlement of self-insurance claims

     (37,038     (47,814
  

 

 

   

 

 

 

Net cash provided by operating activities

     406,002        372,862   
  

 

 

   

 

 

 

Cash Flows from Investing Activities:

    

Property and equipment additions, net of disposals

     (175,944     (182,351

Proceeds received from sale of assets and businesses

     34,008        53,461   

Acquisition of property and businesses

     (1,320     (11,476

Costs incurred for purchase and implementation of electronic health records application

     (33,396     (28,008

Return of deposit on terminated purchase agreement

     0        6,500   
  

 

 

   

 

 

 

Net cash used in investing activities

     (176,652     (161,874
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

Reduction of long-term debt

     (196,096     (195,686

Additional borrowings

     11,000        0   

Repurchase of common shares

     (21,373     (2,927

Dividends paid

     (9,795     (9,673

Issuance of common stock

     2,735        2,575   

Profit distributions to noncontrolling interests

     (26,734     (13,565
  

 

 

   

 

 

 

Net cash used in financing activities

     (240,263     (219,276
  

 

 

   

 

 

 

Decrease in cash and cash equivalents

     (10,913     (8,288

Cash and cash equivalents, beginning of period

     23,471        41,229   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 12,558      $ 32,941   
  

 

 

   

 

 

 

Supplemental Disclosures of Cash Flow Information:

    

Interest paid

   $ 54,067      $ 62,158   
  

 

 

   

 

 

 

Income taxes paid, net of refunds

   $ 152,553      $ 141,571   
  

 

 

   

 

 

 


Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

Same Facility:

 

     % Change     % Change  
     Quarter Ended     6 months ended  
     6/30/2013     6/30/2013  

Acute Care Hospitals

    

Revenues

     4.9     2.8

Adjusted Admissions

     2.0     0.2

Adjusted Patient Days

     1.2     0.7

Revenue Per Adjusted Admission

     2.9     2.5

Revenue Per Adjusted Patient Day

     3.7     2.1

Behavioral Health Hospitals

    

Revenues

     3.2     2.8

Adjusted Admissions

     5.4     2.9

Adjusted Patient Days

     1.8     0.8

Revenue Per Adjusted Admission

     -2.1     -0.1

Revenue Per Adjusted Patient Day

     1.3     2.0

 

 

UHS Consolidated

 

      Second Quarter Ended     Six months Ended  
     6/30/2013     6/30/2012     6/30/2013     6/30/2012  

Revenues

   $ 1,834,975      $ 1,723,083      $ 3,666,607      $ 3,516,119   

EBITDA (1)

     369,774        293,432        683,357        620,289   

EBITDA Margin (1)

     20.2     17.0     18.6     17.6

Cash Flow From Operations

     218,239        245,639        406,002        372,862   

Days Sales Outstanding

     57        54        57        53   

Capital Expenditures

     80,025        89,788        175,944        182,351   

Debt

         3,546,685        3,461,006   

Shareholders Equity

         2,991,457        2,536,884   

Debt / Total Capitalization

         54.2     57.7

Debt / EBITDA (2)

         2.75        2.99   

Debt / Cash From Operations (2)

         4.18        4.71   

Acute Care EBITDAR Margin (3)

     14.8     16.1     15.4     17.6

Behavioral Health EBITDAR Margin (3)

     28.7     28.7     28.6     27.7

 

(1) Net of Minority Interest
(2) Latest 4 quarters
(3) Same facility basis, before Corporate overhead allocation and minority interest.


UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE THREE MONTHS ENDED

JUNE 30, 2013 AND 2012

AS REPORTED:

 

     ACUTE (1)     BEHAVIORAL HEALTH  
     06/30/13     06/30/12     % change     06/30/13     06/30/12     % change  

Hospitals owned and leased

     23        23        0.0     182        176        3.4

Average licensed beds

     5,617        5,545        1.3     19,982        19,191        4.1

Patient days

     272,745        270,752        0.7     1,368,883        1,305,933        4.8

Average daily census

     2,997.2        2,975.3        0.7     15,042.7        14,350.9        4.8

Occupancy-licensed beds

     53.4     53.7     -0.6     75.3     74.8     0.7

Admissions

     60,697        59,768        1.6     101,726        91,936        10.6

Length of stay

     4.5        4.5        -0.8     13.5        14.2        -5.3

Inpatient revenue

   $ 3,321,384      $ 3,034,837        9.4   $ 1,598,383      $ 1,416,820        12.8

Outpatient revenue

     1,708,200        1,540,569        10.9     193,703        162,162        19.5

Total patient revenue

     5,029,584        4,575,406        9.9     1,792,086        1,578,982        13.5

Other revenue

     30,747        22,842        34.6     30,887        36,404        -15.2

Gross hospital revenue

     5,060,331        4,598,248        10.0     1,822,973        1,615,386        12.9

Total deductions

     3,949,632        3,590,507        10.0     862,919        724,569        19.1

Net hospital revenue before provision for doubtful accounts

   $ 1,110,699      $ 1,007,741        10.2   $ 960,054      $ 890,817        7.8

Provision for doubtful accounts

   $ 216,053      $ 164,144        31.6   $ 30,584      $ 20,550        48.8

Net hospital revenue

     894,646        843,597        6.1     929,470        870,267        6.8

SAME FACILITY:

 

     ACUTE (1)     BEHAVIORAL HEALTH (2)  
     06/30/13     06/30/12     % change     06/30/13     06/30/12     % change  

Hospitals owned and leased

     23        23        0.0     171        171        0.0

Average licensed beds

     5,617        5,545        1.3     19,018        18,926        0.5

Patient days

     272,745        270,752        0.7     1,310,418        1,290,025        1.6

Average daily census

     2,997.2        2,975.3        0.7     14,400.2        14,176.1        1.6

Occupancy-licensed beds

     53.4     53.7     -0.6     75.7     74.9     1.1

Admissions

     60,697        59,768        1.6     96,235        91,494        5.2

Length of stay

     4.5        4.5        -0.8     13.6        14.1        -3.4

 

(1) Auburn is excluded in both current and prior years.
(2) Jefferson Trail, Manatee Palms Group Homes, The Peaks, San Juan Capestrano, Keys of Carolina, Garfield Park and Austin Oaks are excluded in both current and prior years. Community BH and prior years. Brooke Glen is included in both current and prior years from March 1st through June 30th. John Costigan Ctr and Community BH is excluded in both current and prior years from June 1st through June 30th.


UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE SIX MONTHS ENDED

JUNE 30, 2013 AND 2012

AS REPORTED:

 

     ACUTE (1)     BEHAVIORAL HEALTH  
     06/30/13     06/30/12     % change     06/30/13     06/30/12     % change  

Hospitals owned and leased

     23        23        0.0     182        176        3.4

Average licensed beds

     5,617        5,543        1.3     20,003        19,142        4.5

Patient days

     563,471        560,778        0.5     2,723,937        2,615,095        4.2

Average daily census

     3,113.1        3,081.2        1.0     15,049.4        14,368.7        4.7

Occupancy-licensed beds

     55.4     55.6     -0.3     75.2     75.1     0.2

Admissions

     124,436        124,378        0.0     203,122        187,711        8.2

Length of stay

     4.5        4.5        0.4     13.4        13.9        -3.7

Inpatient revenue

   $ 6,828,424      $ 6,312,862        8.2   $ 3,174,531      $ 2,832,358        12.1

Outpatient revenue

     3,359,775        3,089,419        8.8     379,505        322,835        17.6

Total patient revenue

     10,188,199        9,402,281        8.4     3,554,036        3,155,193        12.6

Other revenue

     61,872        43,821        41.2     61,987        72,970        -15.1

Gross hospital revenue

     10,250,071        9,446,102        8.5     3,616,023        3,228,163        12.0

Total deductions

     8,012,595        7,386,466        8.5     1,717,818        1,453,758        18.2

Net hospital revenue before provision for doubtful accounts

   $ 2,237,476      $ 2,059,636        8.6   $ 1,898,205      $ 1,774,405        7.0

Provision for doubtful accounts

     434,096        289,508        49.9     59,191        43,818        35.1

Net hospital revenue

     1,803,380        1,770,128        1.9     1,839,014        1,730,587        6.3

SAME FACILITY:

 

     ACUTE (1)     BEHAVIORAL HEALTH (2)  
     06/30/13     06/30/12     % change     06/30/13     06/30/12     % change  

Hospitals owned and leased

     23        23        0.0     171        171        0.0

Average licensed beds

     5,617        5,543        1.3     18,985        18,830        0.8

Patient days

     563,471        560,778        0.5     2,593,658        2,576,883        0.7

Average daily census

     3,113.1        3,081.2        1.0     14,329.6        14,158.7        1.2

Occupancy-licensed beds

     55.4     55.6     -0.3     75.5     75.2     0.4

Admissions

     124,436        124,378        0.0     191,343        186,097        2.8

Length of stay

     4.5        4.5        0.4     13.6        13.8        -2.1

 

(1) Auburn is excluded in both current and prior years.
(2) Jefferson Trail, Manatee Palms Group Homes, The Peaks, San Juan Capestrano, Keys of Carolina, Garfield Park and Austin Oaks are excluded in both current and prior years. Community BH and prior years. Brooke Glen is included in both current and prior years from March 1st through June 30th. John Costigan Ctr and Community BH is excluded in both current and prior years from June 1st through June 30th.