KING OF PRUSSIA, Pa.,
July 25, 2019 /PRNewswire/
-- Universal Health Services, Inc. (NYSE: UHS) announced today
that its reported net income attributable to UHS was $238.3 million, or $2.66 per diluted share, during the second
quarter of 2019 as compared to $226.1
million, or $2.39 per diluted
share, during the comparable quarter of 2018. Net revenues
increased 6.5% to $2.855 billion
during the second quarter of 2019 as compared to $2.681 billion during the second quarter of
2018.
For the three-month period ended June 30,
2019, our adjusted net income attributable to UHS, as
calculated on the attached Schedule of Non-GAAP Supplemental
Information ("Supplemental Schedule"), was $247.2 million, or $2.76 per diluted share, as compared to
$233.3 million, or $2.47 per diluted share, during the second
quarter of 2018.
Included in our reported and our adjusted net income
attributable to UHS is a pre-tax unrealized gain of $6.9 million, or $.06 per diluted share, during the second quarter
of 2019, and $8.0 million, or
$.06 per diluted share, during the
second quarter of 2018. These unrealized gains, which are included
in "Other (income) expense, net" on the accompanying consolidated
statements of income, resulted from an increase 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 second quarter of 2019, is an aggregate
net unfavorable after-tax impact of $8.9
million, or $.10 per diluted
share, resulting from: (i) an unfavorable after-tax impact of
$8.4 million, or $.09 per diluted share, resulting from an
$11.0 million pre-tax increase in the
reserve ("DOJ Reserve") established in connection with the
discussions with the Department of Justice ("DOJ"), which have
recently resulted in an agreement in principle with the DOJ's Civil
Division (which is subject to certain conditions as discussed
below), and; (ii) an unfavorable after-tax impact of $509,000, or $.01
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 second quarter of 2018, is a net
aggregate unfavorable after-tax impact of $7.3 million, or $.08 per diluted share, substantially all of
which related to the unfavorable after-tax impact of $7.2 million, or $.08 per diluted share, resulting from a
$9.5 million pre-tax increase in the
DOJ Reserve.
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 $471.5
million during the second quarter of 2019 as compared to
$444.7 million during the second
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 impacts of
the above-mentioned increases in the DOJ Reserve, was $474.8 million during the second quarter of 2019
as compared to $438.8 million during
the second quarter of 2018.
Consolidated Results of Operations, As Reported and As
Adjusted – Six-month periods ended June 30, 2019 and 2018:
Reported net
income attributable to UHS was $472.5
million, or $5.23 per diluted
share, during the six-month period ended June 30, 2019 as compared to $449.9 million, or $4.76 per diluted share, during the comparable
six-month period of 2018. Net revenues increased 5.4% to
$5.660 billion during the first six
months of 2019 as compared to $5.369
billion during the first six months of 2018.
For the six-month period ended June 30,
2019, our adjusted net income attributable to UHS, as
calculated on the attached Supplemental Schedule, was $470.5 million, or $5.21 per diluted share, as compared to
$465.5 million, or $4.92 per diluted share, during the comparable
six-month period of 2018.
Included in our reported and our adjusted net income
attributable to UHS is a pre-tax unrealized gain of $2.6 million, or $.02 per diluted share, during the first six
months of 2019, and $8.0 million, or
$.06 per diluted share, during the
comparable six-month period of 2018. As discussed above, these
unrealized gains resulted from an increase 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 six-month period ended June 30, 2019, is an aggregate net favorable
after-tax impact of $2.0 million, or
$.02 per diluted share, resulting
from: (i) an unfavorable after-tax impact of $8.4 million, or $.09 per diluted share, resulting from an
$11.0 million pre-tax increase in the
DOJ Reserve, offset by; (ii) a favorable after-tax impact of
$10.4 million, or $.11 per diluted share, resulting from our
adoption of ASU 2016-09.
As reflected on the Supplemental Schedule, included in our
reported results during the six-month period ended June 30, 2018, is a net aggregate unfavorable
after-tax impact of $15.6 million, or
$.16 per diluted share, consisting
of: (i) an unfavorable after-tax impact of $17.1 million, or $.18 per diluted share, resulting from a
$22.5 million pre-tax increase in the
DOJ Reserve, partially offset by; (ii) a favorable after-tax impact
of $1.5 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 $924.3
million during the six-month period ended June 30, 2019 as compared to $886.8 million during the six-month period ended
June 30, 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 impacts of the above-mentioned increases in the DOJ
Reserve, was $932.0 million during
the six-month period ended June 30,
2019 as compared to $893.9
million during the six-month period ended June 30, 2018.
Acute Care Services – Three and six-month periods ended
June 30, 2019 and 2018:
During
the second quarter of 2019, at our acute care hospitals owned
during both periods ("same facility basis"), adjusted admissions
(adjusted for outpatient activity) increased 5.0% and adjusted
patient days increased 5.2%, as compared to the second quarter of
2018. At these facilities, net revenue per adjusted admission
increased 3.5% while net revenue per adjusted patient day increased
3.3% during the second quarter of 2019 as compared to the second
quarter of 2018. Net revenues from our acute care services on a
same facility basis increased 9.0% during the second quarter of
2019 as compared to the second quarter of 2018.
During the six-month period ended June
30, 2019, at our acute care hospitals on a same facility
basis, adjusted admissions increased 5.0% and adjusted patient days
increased 4.8%, as compared to the first six months of 2018. At
these facilities, net revenue per adjusted admission increased 1.5%
while net revenue per adjusted patient day increased 1.6% during
the six-month period ended June 30,
2019 as compared to the comparable six-month period of 2018.
Net revenues from our acute care services on a same facility basis
increased 6.8% during the first six months of 2019 as compared to
the first six months of 2018.
Behavioral Health Care Services – Three and six-month periods
ended June 30, 2019 and
2018:
During the second quarter of 2019, at our behavioral
health care facilities on a same facility basis, adjusted
admissions increased 0.5% while adjusted patient days increased
0.3% as compared to the second quarter of 2018. At these
facilities, net revenue per adjusted admission increased 2.2% while
net revenue per adjusted patient day increased 2.4% during the
second quarter of 2019 as compared to the comparable quarter in
2018. On a same facility basis, our behavioral health care
services' net revenues increased 2.7% during the second quarter of
2019 as compared to the second quarter of
2018.
During the six-month period ended June
30, 2019, at our behavioral health care facilities on a same
facility basis, adjusted admissions increased 1.7% while adjusted
patient days increased 0.6% as compared to the comparable six-month
period of 2018. At these facilities, net revenue per adjusted
admission increased 1.3% while net revenue per adjusted patient day
increased 2.4% during the first six months of 2019 as compared to
the comparable six-month period in 2018. On a same facility basis,
our behavioral health care services' net revenues increased 2.9%
during the six-month period ended June 30,
2019 as compared to the comparable six-month period of
2018.
Net Cash Provided by Operating Activities:
For the six
months ended June 30, 2019, our net
cash provided by operating activities increased to $624 million as compared to $607 million generated during the comparable
six-month period of 2018. The $17
million net increase was due to: (i) a favorable change of
$40 million resulting from an
increase in net income plus/minus depreciation and amortization
expense, stock-based compensation expense and net gains on sale of
assets and businesses; (ii) an unfavorable change of $37 million in accounts receivable, and; (iii)
$14 million of other combined net
favorable changes.
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.
Increases to Stock Repurchase Program and Cash
Dividend:
On July 25, 2019,
our Board of Directors authorized a $1.0
billion increase to our stock repurchase program, which
increased the aggregate authorization to $2.7 billion from the previous $1.7 billion authorization approved in various
increments since 2014. Pursuant to this program, which currently
has an aggregate available repurchase authorization of $1.017 billion, shares of our Class B Common
Stock may be repurchased, from time to time as conditions allow, on
the open market or in negotiated private transactions.
In conjunction with our previously approved stock repurchase
programs, during the second quarter of 2019, we have repurchased
approximately 2.72 million shares at an aggregate cost of
$339.2 million (approximately
$125 per share). During the
first six months of 2019, we have repurchased approximately 3.56
million shares at an aggregate cost of $445.6 million (approximately $125 per share). Since inception of the program
in 2014 through June 30, 2019, we
have repurchased approximately 14.23 million shares at an aggregate
cost of approximately $1.68 billion
(approximately $118 per
share).
Also on July 25, 2019, our Board
of Directors authorized a $.10 per
share increase in our cash dividend to $.20 per share. This cash dividend will be paid
on September 16, 2019 to shareholders
of record as of September 3,
2019.
Agreement in Principle with DOJ's Civil Division and DOJ
Reserve:
We have recently reached an agreement in principle
with the DOJ's Civil Division, and on behalf of various states'
attorneys general offices, to resolve the civil aspect of the
government's investigation of our behavioral health care facilities
for $127 million subject to requisite
approvals and preparation and execution of definitive settlement
and related agreements. We have further been advised that the
previously disclosed investigations being conducted by the DOJ's
Criminal Frauds Section in connection with these matters have been
closed. We are awaiting the initial draft of a potential
corporate integrity agreement with the Office of Inspector General
for the United States Department of Health and Human Services
("OIG") which we expect will be part of the overall settlement of
this matter.
In connection with the agreement in principle with the DOJ's
Civil Division, during the three and six-month periods ended
June 30, 2019, we recorded a pre-tax
increase of approximately $11.0
million in the DOJ Reserve, which includes related fees and
costs due to or on behalf of third-parties. The aggregate
pre-tax DOJ Reserve amounted to $134
million as of June 30, 2019
and $123 million as of December 31, 2018. Our financial statements
assume that the amounts included in the aggregate pre-tax DOJ
Reserve are fully deductible for federal and state income tax
purposes.
Since the agreement in principle with the DOJ's Civil Division
is subject to certain required approvals and negotiation and
execution of definitive settlement agreements, as well as
negotiation and execution of a potential corporate integrity
agreement with the OIG, we can provide no assurance that definitive
agreements will ultimately be finalized. We therefore can provide
no assurance that final amounts paid in settlement or otherwise, or
associated costs, or the income tax deductibility of such payments,
will not differ materially from our established reserve and
assumptions related to income tax deductibility. Please see Item
1-Legal Proceedings in our Form 10-Q for the quarterly period
ended March 31, 2019 for additional
disclosure in connection with this matter.
Conference call information:
We will hold a conference
call for investors and analysts at 9:00 a.m.
eastern time on July 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.
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 June 30, 2019 includes
right of use assets-operating leases ($332.1
million) and operating lease liabilities ($56.4 million current and $275.7 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; ranked #293 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. Our mission includes building
or acquiring high quality hospitals in rapidly growing markets,
investing in the people and equipment needed to allow each facility
to thrive, and becoming 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 353 inpatient acute care hospitals and
behavioral health facilities and 38 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 and in Item 2-Forward-Looking Statements and Risk
Factors in our Form 10-Q for the quarterly period ended
March 31, 2019), 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 and Form 10-Q for the quarterly period ended
March 31, 2019. 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
|
|
Six months
|
|
ended June
30,
|
|
ended June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net
revenues
|
$2,855,168
|
|
$2,681,353
|
|
$5,659,559
|
|
$5,368,869
|
|
|
|
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
1,383,481
|
|
1,305,974
|
|
2,749,027
|
|
2,606,122
|
Other
operating expenses
|
672,564
|
|
624,484
|
|
1,317,344
|
|
1,245,303
|
Supplies
expense
|
305,857
|
|
289,733
|
|
613,320
|
|
582,662
|
Depreciation and amortization
|
121,168
|
|
109,581
|
|
241,208
|
|
222,684
|
Lease
and rental expense
|
26,535
|
|
27,119
|
|
52,660
|
|
53,822
|
|
2,509,605
|
|
2,356,891
|
|
4,973,559
|
|
4,710,593
|
|
|
|
|
|
|
|
|
Income from
operations
|
345,563
|
|
324,462
|
|
686,000
|
|
658,276
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
42,487
|
|
38,000
|
|
82,127
|
|
75,576
|
Other (income)
expense, net
|
(7,732)
|
|
(15,308)
|
|
(3,231)
|
|
(15,308)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
310,808
|
|
301,770
|
|
607,104
|
|
598,008
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
69,543
|
|
71,059
|
|
128,441
|
|
138,628
|
|
|
|
|
|
|
|
|
Net income
|
241,265
|
|
230,711
|
|
478,663
|
|
459,380
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to
|
|
|
|
|
|
|
|
noncontrolling
interests ("NCI")
|
2,945
|
|
4,659
|
|
6,175
|
|
9,496
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$238,320
|
|
$226,052
|
|
$472,488
|
|
$449,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS (a)
|
$2.67
|
|
$2.40
|
|
$5.24
|
|
$4.78
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS (a)
|
$2.66
|
|
$2.39
|
|
$5.23
|
|
$4.76
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Footnotes to
Consolidated Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Six months
|
(a) Earnings per
share calculation:
|
ended June
30,
|
|
ended June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Basic and
diluted:
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$238,320
|
|
$226,052
|
|
$472,488
|
|
$449,884
|
Less: Net income
attributable to unvested restricted share grants
|
(656)
|
|
(392)
|
|
(1,171)
|
|
(496)
|
Net income
attributable to UHS - basic and diluted
|
$237,664
|
|
$225,660
|
|
$471,317
|
|
$449,388
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares - basic
|
89,136
|
|
93,842
|
|
89,956
|
|
94,034
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS:
|
$2.67
|
|
$2.40
|
|
$5.24
|
|
$4.78
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
89,136
|
|
93,842
|
|
89,956
|
|
94,034
|
Add: Other share
equivalents
|
99
|
|
439
|
|
145
|
|
448
|
Weighted average
number of common shares and equiv. - diluted
|
89,235
|
|
94,281
|
|
90,101
|
|
94,482
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS:
|
$2.66
|
|
$2.39
|
|
$5.23
|
|
$4.76
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the Three Months
ended June 30, 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
|
|
June 30,
2019
|
|
revenues
|
|
June 30,
2018
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$238,320
|
|
|
|
$226,052
|
|
|
Depreciation and amortization
|
121,168
|
|
|
|
109,581
|
|
|
Interest
expense, net
|
42,487
|
|
|
|
38,000
|
|
|
Provision for income taxes
|
69,543
|
|
|
|
71,059
|
|
|
EBITDA net of
NCI
|
$471,518
|
|
16.5%
|
|
$444,692
|
|
16.6%
|
|
|
|
|
|
|
|
|
Other (income)
expense, net
|
(7,732)
|
|
|
|
(15,308)
|
|
|
Increase in DOJ
Reserve
|
10,978
|
|
|
|
9,451
|
|
|
Adjusted EBITDA net
of NCI
|
$474,764
|
|
16.6%
|
|
$438,835
|
|
16.4%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$2,855,168
|
|
|
|
$2,681,353
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
June 30,
2019
|
|
June 30,
2018
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$238,320
|
|
$2.66
|
|
$226,052
|
|
$2.39
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Increase in DOJ
Reserve, after-tax
|
8,369
|
|
0.09
|
|
7,205
|
|
0.08
|
Impact of ASU
2016-09
|
509
|
|
0.01
|
|
61
|
|
-
|
Subtotal
adjustments
|
8,878
|
|
0.10
|
|
7,266
|
|
0.08
|
Adjusted net income
attributable to UHS
|
$247,198
|
|
$2.76
|
|
$233,318
|
|
$2.47
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the Six Months
ended June 30, 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")
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
% Net
|
|
Six months
ended
|
|
% Net
|
|
June 30,
2019
|
|
revenues
|
|
June 30,
2018
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$472,488
|
|
|
|
$449,884
|
|
|
Depreciation and amortization
|
241,208
|
|
|
|
222,684
|
|
|
Interest
expense, net
|
82,127
|
|
|
|
75,576
|
|
|
Provision for income taxes
|
128,441
|
|
|
|
138,628
|
|
|
EBITDA net of
NCI
|
$924,264
|
|
16.3%
|
|
$886,772
|
|
16.5%
|
|
|
|
|
|
|
|
|
Other (income)
expense, net
|
(3,231)
|
|
|
|
(15,308)
|
|
|
Increase in DOJ
Reserve
|
10,978
|
|
|
|
22,451
|
|
|
Adjusted EBITDA net
of NCI
|
$932,011
|
|
16.5%
|
|
$893,915
|
|
16.6%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$5,659,559
|
|
|
|
$5,368,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Six months
ended
|
|
June 30,
2019
|
|
June 30,
2018
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$472,488
|
|
$5.23
|
|
$449,884
|
|
$4.76
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Increase in DOJ
Reserve, after-tax
|
8,369
|
|
0.09
|
|
17,116
|
|
0.18
|
Impact of ASU
2016-09
|
(10,398)
|
|
(0.11)
|
|
(1,537)
|
|
(0.02)
|
Subtotal
adjustments
|
(2,029)
|
|
(0.02)
|
|
15,579
|
|
0.16
|
Adjusted net income
attributable to UHS
|
$470,459
|
|
$5.21
|
|
$465,463
|
|
$4.92
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Comprehensive Income
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Six months
|
|
ended June
30,
|
|
ended June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net income
|
$241,265
|
|
$230,711
|
|
$478,663
|
|
$459,380
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Unrealized derivative gains (losses) on cash flow hedges
|
(1,008)
|
|
(545)
|
|
(3,925)
|
|
1,579
|
Foreign
currency translation adjustment
|
5,159
|
|
1,184
|
|
(9,103)
|
|
(3,157)
|
Other
|
0
|
|
(2,367)
|
|
0
|
|
0
|
Other comprehensive
income (loss) before tax
|
4,151
|
|
(1,728)
|
|
(13,028)
|
|
(1,578)
|
Income tax expense
(benefit) related to items of other comprehensive income
(loss)
|
1,616
|
|
(702)
|
|
(850)
|
|
375
|
Total other
comprehensive income (loss), net of tax
|
2,535
|
|
(1,026)
|
|
(12,178)
|
|
(1,953)
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
243,800
|
|
229,685
|
|
466,485
|
|
457,427
|
Less: Comprehensive
income attributable to noncontrolling interests
|
2,945
|
|
4,659
|
|
6,175
|
|
9,496
|
Comprehensive income
attributable to UHS
|
$240,855
|
|
$225,026
|
|
$460,310
|
|
$447,931
|
Universal Health
Services, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2019
|
|
|
2018
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
61,297
|
|
$
|
105,220
|
Accounts receivable, net
|
|
|
1,601,352
|
|
|
1,509,909
|
Supplies
|
|
|
153,574
|
|
|
148,206
|
Other current assets
|
|
|
148,809
|
|
|
174,467
|
Total current assets
|
|
|
1,965,032
|
|
|
1,937,802
|
|
|
|
|
|
|
|
Property and
equipment
|
|
|
8,859,104
|
|
|
8,563,455
|
Less: accumulated
depreciation
|
|
|
(3,914,406)
|
|
|
(3,715,515)
|
|
|
|
4,944,698
|
|
|
4,847,940
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
|
|
3,843,429
|
|
|
3,844,628
|
Deferred income taxes
|
|
|
15,747
|
|
|
5,280
|
Right of use assets-operating leases
|
|
|
332,135
|
|
|
0
|
Deferred charges
|
|
|
7,533
|
|
|
8,772
|
Other
|
|
|
644,076
|
|
|
621,058
|
Total
Assets
|
|
$
|
11,752,650
|
|
$
|
11,265,480
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
91,833
|
|
$
|
63,446
|
Accounts payable and accrued liabilities
|
|
|
1,253,760
|
|
|
1,253,714
|
Legal reserves
|
|
|
141,750
|
|
|
129,150
|
Operating lease liabilities
|
|
|
56,447
|
|
|
0
|
Federal and state taxes
|
|
|
479
|
|
|
2,428
|
Total current liabilities
|
|
|
1,544,269
|
|
|
1,448,738
|
|
|
|
|
|
|
|
Other noncurrent
liabilities
|
|
|
369,229
|
|
|
361,809
|
Operating lease
liabilities noncurrent
|
|
|
275,688
|
|
|
0
|
Long-term
debt
|
|
|
4,057,121
|
|
|
3,935,187
|
Deferred income
taxes
|
|
|
37,906
|
|
|
49,661
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
3,986
|
|
|
4,292
|
|
|
|
|
|
|
|
UHS common
stockholders' equity
|
|
|
5,393,089
|
|
|
5,389,262
|
Noncontrolling
interest
|
|
|
71,362
|
|
|
76,531
|
Total equity
|
|
|
5,464,451
|
|
|
5,465,793
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
11,752,650
|
|
$
|
11,265,480
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
Six
months
|
|
ended June
30,
|
|
2019
|
|
2018
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$478,663
|
|
$459,380
|
Adjustments
to reconcile net income to net
|
|
|
|
cash provided by
operating activities:
|
|
|
|
Depreciation &
amortization
|
241,208
|
|
222,716
|
Stock-based
compensation expense
|
34,676
|
|
34,716
|
Gain on sale of
assets and businesses
|
0
|
|
(2,513)
|
Changes in
assets & liabilities, net of effects from
|
|
|
|
acquisitions and
dispositions:
|
|
|
|
Accounts
receivable
|
(101,329)
|
|
(64,055)
|
Accrued
interest
|
948
|
|
199
|
Accrued
and deferred income taxes
|
(16,846)
|
|
(42,540)
|
Other
working capital accounts
|
30,082
|
|
8,977
|
Other
assets and deferred charges
|
(1,333)
|
|
(14,144)
|
Other
|
(49,687)
|
|
(3,422)
|
Accrued
insurance expense, net of commercial premiums paid
|
51,819
|
|
46,255
|
Payments
made in settlement of self-insurance claims
|
(44,115)
|
|
(38,606)
|
Net cash provided by operating activities
|
624,086
|
|
606,963
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Property
and equipment additions, net of disposals
|
(323,920)
|
|
(370,252)
|
Acquisition of property and businesses
|
0
|
|
(20,931)
|
Inflows
(outflows) from foreign exchange contracts that hedge our net U.K.
investment
|
53,363
|
|
22,298
|
Proceeds
received from sales of assets and businesses
|
0
|
|
13,502
|
Costs
incurred for purchase and implementation of information technology
applications
|
(13,893)
|
|
(24,087)
|
Decrease
in capital reserves of commercial insurance subsidiary
|
0
|
|
100
|
Investment in, and advances to, joint ventures and
other
|
(11,949)
|
|
(14,059)
|
Net cash used in investing activities
|
(296,399)
|
|
(393,429)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Reduction of long-term debt
|
(28,617)
|
|
(82,470)
|
Additional borrowings
|
177,200
|
|
30,500
|
Financing costs
|
0
|
|
(754)
|
Repurchase of common shares
|
(494,649)
|
|
(134,784)
|
Dividends paid
|
(17,953)
|
|
(18,804)
|
Issuance
of common stock
|
5,271
|
|
4,959
|
Profit
distributions to noncontrolling interests
|
(11,650)
|
|
(7,914)
|
Net cash used in financing activities
|
(370,398)
|
|
(209,267)
|
|
|
|
|
Effect
of exchange rate changes on cash, cash equivalents and restricted
cash
|
(273)
|
|
(1,138)
|
(Decrease) Increase
in cash, cash equivalents and restricted cash
|
(42,984)
|
|
3,129
|
Cash, cash
equivalents and restricted cash, beginning of period
|
199,685
|
|
167,297
|
Cash, cash
equivalents and restricted cash, end of period
|
$156,701
|
|
$170,426
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
Interest
paid
|
$78,623
|
|
$70,890
|
|
|
|
|
Income taxes
paid, net of refunds
|
$145,404
|
|
$182,130
|
|
|
|
|
Noncash
purchases of property and equipment
|
$71,923
|
|
$91,742
|
|
|
|
|
Right-of-use
assets obtained in exchange for lease obligations
|
$359,329
|
|
$0
|
Universal Health
Services, Inc.
|
Supplemental
Statistical Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
%
Change
|
|
|
|
|
|
|
|
Quarter
ended
|
|
6 months
ended
|
|
|
Same
Facility:
|
|
|
|
|
6/30/2019
|
|
6/30/2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Acute Care
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
9.0%
|
|
6.8%
|
|
|
Adjusted
Admissions
|
|
|
|
|
5.0%
|
|
5.0%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
5.2%
|
|
4.8%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
3.5%
|
|
1.5%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
3.3%
|
|
1.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Behavioral Health
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
2.7%
|
|
2.9%
|
|
|
Adjusted
Admissions
|
|
|
|
|
0.5%
|
|
1.7%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
0.3%
|
|
0.6%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
2.2%
|
|
1.3%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
2.4%
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UHS
Consolidated
|
|
|
second quarter
ended
|
|
six months
ended
|
|
|
|
6/30/2019
|
|
6/30/2018
|
|
6/30/2019
|
|
6/30/2018
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$2,855,168
|
|
$2,681,353
|
|
$5,659,559
|
|
$5,368,869
|
EBITDA net of
NCI
|
|
|
$471,518
|
|
$444,692
|
|
$924,264
|
|
$886,772
|
EBITDA Margin net of
NCI
|
|
|
16.5%
|
|
16.6%
|
|
16.3%
|
|
16.5%
|
Adjusted EBITDA net
of NCI
|
|
|
$474,764
|
|
$438,835
|
|
$932,011
|
|
$893,915
|
Adjusted EBITDA
Margin net of NCI
|
|
16.6%
|
|
16.4%
|
|
16.5%
|
|
16.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From
Operations
|
|
|
$233,185
|
|
$197,059
|
|
$624,086
|
|
$606,963
|
Days Sales
Outstanding
|
|
|
51
|
|
53
|
|
51
|
|
53
|
Capital
Expenditures
|
|
|
$154,072
|
|
$181,211
|
|
$323,920
|
|
$370,252
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
|
$4,148,954
|
|
$3,990,464
|
UHS' Shareholders
Equity
|
|
|
|
|
|
|
$5,393,089
|
|
$5,317,583
|
Debt / Total
Capitalization
|
|
|
|
|
|
|
43.5%
|
|
42.9%
|
Debt / EBITDA net of
NCI (1)
|
|
|
|
|
|
|
2.50
|
|
2.35
|
Debt / Adjusted
EBITDA net of NCI (1)
|
|
|
|
|
2.31
|
|
2.34
|
Debt / Cash From
Operations (1)
|
|
|
|
|
|
|
3.21
|
|
3.12
|
|
|
|
|
|
|
|
|
|
|
(1) Latest 4
quarters
|
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Acute Care Hospital
Services
|
For the three and six
months ended
|
June 30, 2019 and
2018
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility
Basis - Acute Care Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2019
|
|
June 30,
2018
|
|
June 30,
2019
|
|
June 30,
2018
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,498,493
|
|
100.0%
|
|
$1,374,725
|
|
100.0%
|
|
$2,989,355
|
|
100.0%
|
|
$2,798,502
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
623,218
|
|
41.6%
|
|
584,126
|
|
42.5%
|
|
1,241,909
|
|
41.5%
|
|
1,165,894
|
|
41.7%
|
Other operating
expenses
|
|
339,507
|
|
22.7%
|
|
308,660
|
|
22.5%
|
|
671,392
|
|
22.5%
|
|
616,841
|
|
22.0%
|
Supplies
expense
|
|
255,322
|
|
17.0%
|
|
240,118
|
|
17.5%
|
|
513,033
|
|
17.2%
|
|
483,271
|
|
17.3%
|
Depreciation and
amortization
|
|
75,368
|
|
5.0%
|
|
67,165
|
|
4.9%
|
|
149,596
|
|
5.0%
|
|
139,315
|
|
5.0%
|
Lease and rental
expense
|
|
14,654
|
|
1.0%
|
|
14,708
|
|
1.1%
|
|
28,910
|
|
1.0%
|
|
28,991
|
|
1.0%
|
Subtotal-operating
expenses
|
|
1,308,069
|
|
87.3%
|
|
1,214,777
|
|
88.4%
|
|
2,604,840
|
|
87.1%
|
|
2,434,312
|
|
87.0%
|
Income from
operations
|
|
190,424
|
|
12.7%
|
|
159,948
|
|
11.6%
|
|
384,515
|
|
12.9%
|
|
364,190
|
|
13.0%
|
Interest expense,
net
|
|
244
|
|
0.0%
|
|
431
|
|
0.0%
|
|
523
|
|
0.0%
|
|
962
|
|
0.0%
|
Other (income)
expense, net
|
|
(45)
|
|
(0.0)%
|
|
(2,498)
|
|
(0.2)%
|
|
(45)
|
|
(0.0)%
|
|
(2,498)
|
|
(0.1)%
|
Income before income
taxes
|
|
190,225
|
|
12.7%
|
|
$162,015
|
|
11.8%
|
|
384,037
|
|
12.8%
|
|
$365,726
|
|
13.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Acute Care
Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2019
|
|
June 30,
2018
|
|
June 30,
2019
|
|
June 30,
2018
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,531,709
|
|
100.0%
|
|
$1,403,991
|
|
100.0%
|
|
$3,046,553
|
|
100.0%
|
|
$2,849,623
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
624,035
|
|
40.7%
|
|
584,126
|
|
41.6%
|
|
1,243,352
|
|
40.8%
|
|
1,165,894
|
|
40.9%
|
Other operating
expenses
|
|
373,069
|
|
24.4%
|
|
337,926
|
|
24.1%
|
|
729,300
|
|
23.9%
|
|
667,962
|
|
23.4%
|
Supplies
expense
|
|
255,703
|
|
16.7%
|
|
240,118
|
|
17.1%
|
|
513,847
|
|
16.9%
|
|
483,271
|
|
17.0%
|
Depreciation and
amortization
|
|
75,810
|
|
4.9%
|
|
67,165
|
|
4.8%
|
|
150,171
|
|
4.9%
|
|
139,315
|
|
4.9%
|
Lease and rental
expense
|
|
14,736
|
|
1.0%
|
|
14,708
|
|
1.0%
|
|
29,035
|
|
1.0%
|
|
28,991
|
|
1.0%
|
Subtotal-operating
expenses
|
|
1,343,353
|
|
87.7%
|
|
1,244,043
|
|
88.6%
|
|
2,665,705
|
|
87.5%
|
|
2,485,433
|
|
87.2%
|
Income from
operations
|
|
188,356
|
|
12.3%
|
|
159,948
|
|
11.4%
|
|
380,848
|
|
12.5%
|
|
364,190
|
|
12.8%
|
Interest expense,
net
|
|
244
|
|
0.0%
|
|
431
|
|
0.0%
|
|
523
|
|
0.0%
|
|
962
|
|
0.0%
|
Other (income)
expense, net
|
|
(45)
|
|
(0.0)%
|
|
(2,498)
|
|
(0.2)%
|
|
(45)
|
|
(0.0)%
|
|
(2,498)
|
|
(0.1)%
|
Income before income
taxes
|
|
188,157
|
|
12.3%
|
|
$162,015
|
|
11.5%
|
|
380,370
|
|
12.5%
|
|
$365,726
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
and Form 10-Q for the
quarter ended March
31, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and six
months ended
|
June 30, 2019 and
2018
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility -
Behavioral Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2019
|
|
June 30,
2018
|
|
June 30,
2019
|
|
June 30,
2018
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,272,249
|
|
100.0%
|
|
$1,238,263
|
|
100.0%
|
|
$2,513,474
|
|
100.0%
|
|
$2,443,311
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
664,547
|
|
52.2%
|
|
642,368
|
|
51.9%
|
|
1,320,133
|
|
52.5%
|
|
1,273,199
|
|
52.1%
|
Other operating
expenses
|
|
234,563
|
|
18.4%
|
|
233,585
|
|
18.9%
|
|
468,987
|
|
18.7%
|
|
464,171
|
|
19.0%
|
Supplies
expense
|
|
49,499
|
|
3.9%
|
|
48,808
|
|
3.9%
|
|
98,117
|
|
3.9%
|
|
97,551
|
|
4.0%
|
Depreciation and
amortization
|
|
39,095
|
|
3.1%
|
|
37,734
|
|
3.0%
|
|
78,967
|
|
3.1%
|
|
74,472
|
|
3.0%
|
Lease and rental
expense
|
|
11,006
|
|
0.9%
|
|
11,528
|
|
0.9%
|
|
21,923
|
|
0.9%
|
|
23,224
|
|
1.0%
|
Subtotal-operating
expenses
|
|
998,710
|
|
78.5%
|
|
974,023
|
|
78.7%
|
|
1,988,127
|
|
79.1%
|
|
1,932,617
|
|
79.1%
|
Income from
operations
|
|
273,539
|
|
21.5%
|
|
264,240
|
|
21.3%
|
|
525,347
|
|
20.9%
|
|
510,694
|
|
20.9%
|
Interest expense,
net
|
|
369
|
|
0.0%
|
|
410
|
|
0.0%
|
|
744
|
|
0.0%
|
|
837
|
|
0.0%
|
Other (income)
expense, net
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Income before income
taxes
|
|
$273,170
|
|
21.5%
|
|
$263,830
|
|
21.3%
|
|
$524,603
|
|
20.9%
|
|
$509,857
|
|
20.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Behavioral
Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2019
|
|
June 30,
2018
|
|
June 30,
2019
|
|
June 30,
2018
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,320,241
|
|
100.0%
|
|
$1,274,083
|
|
100.0%
|
|
$2,606,624
|
|
100.0%
|
|
$2,512,079
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
683,948
|
|
51.8%
|
|
651,852
|
|
51.2%
|
|
1,359,647
|
|
52.2%
|
|
1,293,980
|
|
51.5%
|
Other operating
expenses
|
|
265,785
|
|
20.1%
|
|
259,959
|
|
20.4%
|
|
527,922
|
|
20.3%
|
|
516,361
|
|
20.6%
|
Supplies
expense
|
|
49,986
|
|
3.8%
|
|
49,470
|
|
3.9%
|
|
99,117
|
|
3.8%
|
|
99,006
|
|
3.9%
|
Depreciation and
amortization
|
|
42,339
|
|
3.2%
|
|
39,777
|
|
3.1%
|
|
84,891
|
|
3.3%
|
|
78,231
|
|
3.1%
|
Lease and rental
expense
|
|
11,719
|
|
0.9%
|
|
12,256
|
|
1.0%
|
|
23,363
|
|
0.9%
|
|
24,557
|
|
1.0%
|
Subtotal-operating
expenses
|
|
1,053,777
|
|
79.8%
|
|
1,013,314
|
|
79.5%
|
|
2,094,940
|
|
80.4%
|
|
2,012,135
|
|
80.1%
|
Income from
operations
|
|
266,464
|
|
20.2%
|
|
260,769
|
|
20.5%
|
|
511,684
|
|
19.6%
|
|
499,944
|
|
19.9%
|
Interest expense,
net
|
|
369
|
|
0.0%
|
|
410
|
|
0.0%
|
|
744
|
|
0.0%
|
|
837
|
|
0.0%
|
Other (income)
expense, net
|
|
109
|
|
0.0%
|
|
(1,085)
|
|
(0.1)%
|
|
786
|
|
0.0%
|
|
(1,085)
|
|
(0.0)%
|
Income before income
taxes
|
|
265,986
|
|
20.1%
|
|
261,444
|
|
20.5%
|
|
510,154
|
|
19.6%
|
|
500,192
|
|
19.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and Form 10-Q for the
quarter ended March
31, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The All Behavioral
Health Care Services table 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
|
June 30, 2019 and
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
6/30/19
|
|
6/30/18
|
|
%
change
|
|
6/30/19
|
|
6/30/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
327
|
|
301
|
|
8.6%
|
Average licensed
beds
|
|
6,371
|
|
6,213
|
|
2.5%
|
|
23,798
|
|
23,262
|
|
2.3%
|
Average available
beds
|
|
6,195
|
|
6,037
|
|
2.6%
|
|
23,698
|
|
23,178
|
|
2.2%
|
Patient
days
|
|
357,894
|
|
339,697
|
|
5.4%
|
|
1,632,531
|
|
1,605,977
|
|
1.7%
|
Average daily
census
|
|
3,932.9
|
|
3,733.1
|
|
5.4%
|
|
17,939.9
|
|
17,648.1
|
|
1.7%
|
Occupancy-licensed
beds
|
|
61.7%
|
|
60.1%
|
|
2.7%
|
|
75.4%
|
|
75.9%
|
|
-0.6%
|
Occupancy-available
beds
|
|
63.5%
|
|
61.8%
|
|
2.7%
|
|
75.7%
|
|
76.1%
|
|
-0.6%
|
Admissions
|
|
78,879
|
|
74,997
|
|
5.2%
|
|
121,687
|
|
120,469
|
|
1.0%
|
Length of
stay
|
|
4.5
|
|
4.5
|
|
0.2%
|
|
13.4
|
|
13.3
|
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$7,051,925
|
|
$6,164,010
|
|
14.4%
|
|
$2,547,626
|
|
$2,448,894
|
|
4.0%
|
Outpatient
revenue
|
|
4,402,308
|
|
3,760,326
|
|
17.1%
|
|
268,693
|
|
267,537
|
|
0.4%
|
Total patient
revenue
|
|
11,454,233
|
|
9,924,336
|
|
15.4%
|
|
2,816,319
|
|
2,716,431
|
|
3.7%
|
Other
revenue
|
|
114,017
|
|
100,171
|
|
13.8%
|
|
62,140
|
|
51,145
|
|
21.5%
|
Gross hospital
revenue
|
|
11,568,250
|
|
10,024,507
|
|
15.4%
|
|
2,878,459
|
|
2,767,576
|
|
4.0%
|
Total
deductions
|
|
10,036,541
|
|
8,620,516
|
|
16.4%
|
|
1,558,218
|
|
1,493,493
|
|
4.3%
|
Net hospital
revenue
|
|
$1,531,709
|
|
$1,403,991
|
|
9.1%
|
|
$1,320,241
|
|
$1,274,083
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
6/30/19
|
|
6/30/18
|
|
%
change
|
|
6/30/19
|
|
6/30/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
288
|
|
288
|
|
0.0%
|
Average licensed
beds
|
|
6,371
|
|
6,213
|
|
2.5%
|
|
22,833
|
|
22,625
|
|
0.9%
|
Average available
beds
|
|
6,195
|
|
6,037
|
|
2.6%
|
|
22,733
|
|
22,541
|
|
0.9%
|
Patient
days
|
|
357,894
|
|
339,697
|
|
5.4%
|
|
1,585,284
|
|
1,579,633
|
|
0.4%
|
Average daily
census
|
|
3,932.9
|
|
3,733.1
|
|
5.4%
|
|
17,420.7
|
|
17,358.6
|
|
0.4%
|
Occupancy-licensed
beds
|
|
61.7%
|
|
60.1%
|
|
2.7%
|
|
76.3%
|
|
76.7%
|
|
-0.6%
|
Occupancy-available
beds
|
|
63.5%
|
|
61.8%
|
|
2.7%
|
|
76.6%
|
|
77.0%
|
|
-0.5%
|
Admissions
|
|
78,879
|
|
74,997
|
|
5.2%
|
|
120,006
|
|
119,288
|
|
0.6%
|
Length of
stay
|
|
4.5
|
|
4.5
|
|
0.2%
|
|
13.2
|
|
13.2
|
|
-0.2%
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the six months
ended
|
June 30, 2019 and
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
6/30/19
|
|
6/30/18
|
|
%
change
|
|
6/30/19
|
|
6/30/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
327
|
|
301
|
|
8.6%
|
Average licensed
beds
|
|
6,371
|
|
6,187
|
|
3.0%
|
|
23,871
|
|
23,252
|
|
2.7%
|
Average available
beds
|
|
6,195
|
|
6,011
|
|
3.1%
|
|
23,771
|
|
23,169
|
|
2.6%
|
Patient
days
|
|
727,620
|
|
692,496
|
|
5.1%
|
|
3,251,336
|
|
3,187,973
|
|
2.0%
|
Average daily
census
|
|
4,020.2
|
|
3,825.8
|
|
5.1%
|
|
17,963.2
|
|
17,613.1
|
|
2.0%
|
Occupancy-licensed
beds
|
|
63.1%
|
|
61.8%
|
|
2.0%
|
|
75.3%
|
|
75.7%
|
|
-0.7%
|
Occupancy-available
beds
|
|
64.9%
|
|
63.6%
|
|
2.0%
|
|
75.6%
|
|
76.0%
|
|
-0.6%
|
Admissions
|
|
159,542
|
|
151,640
|
|
5.2%
|
|
245,394
|
|
240,449
|
|
2.1%
|
Length of
stay
|
|
4.6
|
|
4.6
|
|
-0.1%
|
|
13.2
|
|
13.3
|
|
-0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$14,215,639
|
|
$12,525,776
|
|
13.5%
|
|
$5,031,625
|
|
$4,851,152
|
|
3.7%
|
Outpatient
revenue
|
|
8,659,922
|
|
7,474,987
|
|
15.9%
|
|
535,239
|
|
522,718
|
|
2.4%
|
Total patient
revenue
|
|
22,875,561
|
|
20,000,763
|
|
14.4%
|
|
5,566,864
|
|
5,373,870
|
|
3.6%
|
Other
revenue
|
|
223,343
|
|
198,358
|
|
12.6%
|
|
110,739
|
|
101,178
|
|
9.4%
|
Gross hospital
revenue
|
|
23,098,904
|
|
20,199,121
|
|
14.4%
|
|
5,677,603
|
|
5,475,048
|
|
3.7%
|
Total
deductions
|
|
20,052,351
|
|
17,349,498
|
|
15.6%
|
|
3,070,979
|
|
2,962,969
|
|
3.6%
|
Net hospital
revenue
|
|
$3,046,553
|
|
$2,849,623
|
|
6.9%
|
|
$2,606,624
|
|
$2,512,079
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
6/30/19
|
|
6/30/18
|
|
%
change
|
|
6/30/19
|
|
6/30/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
288
|
|
288
|
|
0.0%
|
Average licensed
beds
|
|
6,371
|
|
6,187
|
|
3.0%
|
|
22,842
|
|
22,598
|
|
1.1%
|
Average available
beds
|
|
6,195
|
|
6,011
|
|
3.1%
|
|
22,742
|
|
22,515
|
|
1.0%
|
Patient
days
|
|
727,620
|
|
692,496
|
|
5.1%
|
|
3,156,169
|
|
3,137,870
|
|
0.6%
|
Average daily
census
|
|
4,020.2
|
|
3,825.8
|
|
5.1%
|
|
17,437.4
|
|
17,336.3
|
|
0.6%
|
Occupancy-licensed
beds
|
|
63.1%
|
|
61.8%
|
|
2.0%
|
|
76.3%
|
|
76.7%
|
|
-0.5%
|
Occupancy-available
beds
|
|
64.9%
|
|
63.6%
|
|
2.0%
|
|
76.7%
|
|
77.0%
|
|
-0.4%
|
Admissions
|
|
159,542
|
|
151,640
|
|
5.2%
|
|
242,175
|
|
238,076
|
|
1.7%
|
Length of
stay
|
|
4.6
|
|
4.6
|
|
-0.1%
|
|
13.0
|
|
13.2
|
|
-1.1%
|
View original
content:http://www.prnewswire.com/news-releases/universal-health-services-inc-reports-2019-second-quarter-financial-results-and-increases-to-stock-repurchase-program-and-cash-dividend-300891272.html
SOURCE Universal Health Services, Inc.