KING OF PRUSSIA, Pa.,
July 25, 2017 /PRNewswire/
-- Universal Health Services, Inc. (NYSE: UHS) announced today
that its reported net income attributable to UHS was $185.4 million, or $1.91 per diluted share, during the second
quarter of 2017 as compared to $185.6
million, or $1.89 per diluted
share, during the comparable quarter of 2016.
Net revenues increased 7.5% to $2.61
billion during the second quarter of 2017 as compared to
$2.43 billion during the second
quarter of 2016. As calculated on attached Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule"), our earnings
before interest, taxes, depreciation & amortization ("EBITDA")
increased 3.2% to $438.3 million
during the second quarter of 2017 as compared to $424.8 million during the second quarter of
2016.
For the three-month period ended June 30,
2017, our adjusted net income attributable to UHS, as
calculated on the attached Supplemental Schedule, was $188.1 million, or $1.94 per diluted share, as compared to
$191.1 million, or $1.94 per diluted share, during the second
quarter of 2016. As reflected on the Supplemental Schedule,
included in our reported results during the second quarter of 2017,
is a net aggregate unfavorable after-tax impact of $2.7 million, or $.03 per diluted share, consisting of: (i) a
favorable after-tax impact of $1.4
million, or $.01 per diluted
share, resulting from our January 1,
2017 adoption of ASU 2016-09, "Compensation – Stock
Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting" ("ASU 2016-09"), as discussed below, offset by;
(ii) an unfavorable after tax impact of $4.0
million, or $.04 per diluted
share, related to the depreciation and amortization expense
recorded in connection with the implementation of electronic health
records ("EHR") applications at our acute care hospitals.
Included in our reported results during the second quarter of 2016
is an unfavorable after tax impact of $5.5
million, or $.05 per diluted
share, related to the depreciation and amortization expense
recorded in connection with the implementation of EHR applications
at our acute care hospitals.
Consolidated Results of Operations, As Reported and As
Adjusted – Six-month periods ended June 30, 2017 and 2016:
Reported net income attributable to UHS was $391.4 million, or $4.03 per diluted share, during the first six
months of 2017 as compared to $376.3
million, or $3.81 per diluted
share, during the comparable period of 2016.
Net revenues increased 7.1% to $5.23
billion during the first six months of 2017 as compared to
$4.88 billion during the first six
months of 2016. As calculated on attached Supplemental Schedule,
our EBITDA increased 4.5% to $898.6
million during the six-month period ended June 30, 2017 as compared to $860.2 million during the comparable six-month
period of 2016.
For the six-month period ended June 30,
2017, our adjusted net income attributable to UHS, as
calculated on the attached Supplemental Schedule, was $392.4 million, or $4.04 per diluted share, as compared to
$387.0 million, or $3.92 per diluted share, during the first six
months of 2016. As reflected on the Supplemental Schedule,
included in our reported results during the six-month period ended
June 30, 2017, is a net aggregate
unfavorable after-tax impact of $1.0
million, or $.01 per diluted
share, consisting of: (i) a favorable after-tax impact of
$8.1 million, or $.08 per diluted share, resulting from our
January 1, 2017 adoption of ASU
2016-09, offset by; (ii) an unfavorable after tax impact of
$9.1 million, or $.09 per diluted share, related to the
depreciation and amortization expense 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, 2016
is an unfavorable after tax impact of $10.7
million, or $.11 per diluted
share, related to the depreciation and amortization expense
recorded in connection with the implementation of EHR applications
at our acute care hospitals.
Acute Care Services – Three and six-month periods ended
June 30, 2017 and 2016:
During the second quarter of 2017, at our acute care hospitals
owned during both periods ("same facility basis"), adjusted
admissions (adjusted for outpatient activity) increased 6.0% and
adjusted patient days increased 2.7%, as compared to the second
quarter of 2016. Net revenues from our acute care services
increased 5.1% during the second quarter of 2017 as compared to the
comparable quarter of the prior year. At these facilities, net
revenue per adjusted admission remained unchanged while net revenue
per adjusted patient day increased 3.2% during the second quarter
of 2017 as compared to the comparable quarter of 2016.
During the six-month period ended June
30, 2017, at our acute care hospitals on a same facility
basis, adjusted admissions increased 5.5% and adjusted patient days
increased 2.2%, as compared to the first six months of 2016. Net
revenues from our acute care services increased 4.9% during the
first six months of 2017 as compared to the comparable period of
the prior year. At these facilities, net revenue per adjusted
admission decreased 0.2% while net revenue per adjusted patient day
increased 3.1% during the first six months of 2017 as compared to
the comparable six-month period of 2016.
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 gross charges, amounting to approximately $485 million and $339
million during the three-month periods ended June 30, 2017 and 2016, respectively, and
$901 million and $684 million during the six-month periods ended
June 30, 2017 and 2016, respectively.
The provision for doubtful accounts at our acute care hospitals
amounted to approximately $187
million and $179 million
during the three-month periods ended June
30, 2017 and 2016, respectively, and $368 million and $319
million during the six-month periods ended June 30, 2017 and 2016, respectively.
Behavioral Health Care Services – Three and six-month periods
ended June 30, 2017 and 2016:
During the second quarter of 2017, at our behavioral health care
facilities on a same facility basis, adjusted admissions increased
3.7% while adjusted patient days increased 1.4% as compared to the
second quarter of 2016. At these facilities, net revenue per
adjusted admission decreased 1.4% while net revenue per adjusted
patient day increased 0.9% during the second quarter of 2017 as
compared to the comparable quarter in 2016. On a same facility
basis, our behavioral health care services' net revenues increased
2.2% during the second quarter of 2017 as compared to the second
quarter of 2016.
During the six-month period ended June
30, 2017, at our behavioral health care facilities on a same
facility basis, adjusted admissions increased 3.1% while adjusted
patient days increased 0.8% as compared to the first six months of
2016. At these facilities, net revenue per adjusted admission
decreased 1.2% while net revenue per adjusted patient day increased
1.0% during the first six months of 2017 as compared to the
comparable six-month period of 2016. On a same facility basis, our
behavioral health care services' net revenues increased 1.8% during
the first six months of 2017 as compared to the comparable period
of 2016.
Net Cash Provided by Operating Activities and Share
Repurchase Program:
For the six months ended June 30,
2017, our net cash provided by operating activities
decreased to $534 million from
$836 million generated during the
comparable six-month period of 2016. The $302 million decrease was caused primarily by a
$217 million unfavorable change in
other working capital accounts resulting primarily from changes in
accrued compensation and accounts payable due to timing of
disbursements, and a $92 million
unfavorable change in cash flows from foreign currency forward
exchange contracts related to our investments in the U.K.
In February of 2016, our Board of Directors authorized a
$400 million increase to our stock
repurchase program, which increased the aggregate authorization to
$800 million from the previous
$400 million authorization approved
during the third quarter of 2014. Pursuant to this program,
we may purchase shares of our Class B Common Stock, from time to
time as conditions allow, on the open market or in negotiated
private transactions.
In conjunction with this program, during the second quarter of
2017, we have repurchased 983,900 shares at an aggregate cost of
$115.9 million (approximately
$118 per share). During the
first six months of 2017, we have repurchased approximately 1.1
million shares at an aggregate cost of approximately $127.1 million (approximately $117 per share). Since inception of the program
through June 30, 2017, we have
repurchased approximately 5.47 million shares at an aggregate cost
of approximately $641.2 million
(approximately $117 per
share).
Revision of 2017 Full Year Earnings Guidance Range:
Based upon the operating trends and financial results
experienced during the first six months of 2017, we are revising
our estimated range of adjusted net income attributable to UHS for
the year ended December 31, 2017 to
$7.50 to $8.00 per diluted share from
the previously provided range of $7.70 to
$8.20 per diluted share. This revised guidance range
decreases both the lower and upper end of the previously provided
range by approximately 2.5%.
This revised guidance excludes the expected EHR unfavorable
impact of $.15 per diluted share for
the year, as well as the impact on our provision for income taxes
and net income attributable to UHS resulting from of our
January 1, 2017 adoption of ASU
2016-09, which as discussed below, we are unable to estimate at
this time. This guidance range also excludes the impact of future
items, if applicable, that are nonrecurring or non-operational in
nature including items such as, but not limited to, gains/losses on
sales of assets and businesses, costs related to extinguishment of
debt, reserves for settlements, legal judgments and lawsuits,
impairments of long-lived assets, impact of share repurchases and
other material amounts that may be reflected in our financial
statements that relate to prior periods. It is also subject to
certain conditions including those as set forth below in General
Information, Forward-Looking Statements and Risk Factors and
Non-GAAP Financial Measures.
Adoption of ASU 2016-09:
Effective January 1, 2017, we
adopted ASU 2016-09, "Compensation – Stock Compensation (Topic
718): Improvements to Employee Share-Based Payment Accounting",
which amends the accounting for employee share-based payment
transactions to require recognition of the tax effects resulting
from the settlement of stock-based awards as income tax expense or
benefit in the income statement in the reporting period in which
they occur. In connection with the adoption of ASU 2016-09,
during the three and six-month periods ended June 30, 2017, we recorded reductions to our
provision for income taxes of $1.4
million and $8.1 million,
respectively, which resulted in a corresponding increases in our
net income attributable to UHS of $1.4
million, or $.01 per diluted
share, during the second quarter of 2017 and $8.1 million, or $.08 per diluted share, during the first six
months of 2017.
Since the impact of ASU 2016-09 on our future financial
statements is dependent upon the timing of stock option exercises,
and the market price of our stock at the time of exercise, we are
unable to estimate the impact this adoption will have on our future
provision for income taxes and net income attributable to
UHS. This reporting change is applied prospectively,
effective as of January 1, 2017, with
the exception of the change in the presentation of the excess
income tax benefits related to stock-based compensation in the
Statement of Cash Flows, which was applied retrospectively.
Conference call information:
We will hold a conference call for investors and analysts at
9:00 a.m. eastern time on
Wednesday, July 26, 2017. 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 be
available following the 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 through its subsidiaries acute
care hospitals, behavioral health facilities and ambulatory centers
located throughout the United
States, the United Kingdom,
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,
2016 and in Item 2-Forward-Looking Statements and Risk
Factors in our Form 10-Q for the quarterly period ended
March 31, 2017), 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
and adjusted 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, but not limited to,
costs/benefits related to the impact on our provision for income
taxes and net income attributable to UHS resulting from our
January 1, 2017 adoption of ASU
2016-09, the implementation of EHR applications at our acute care
hospitals, extinguishment of debt, gains/losses on sales of assets
and businesses, reserves for settlements, legal judgments and
lawsuits, impairments of long-lived assets, and other items and
other material 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, 2016 and our Report on Form 10-Q for
the quarterly period ended March 31,
2017. 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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net revenues before
provision for doubtful accounts
|
$2,827,709
|
|
$2,638,848
|
|
$5,653,181
|
|
$5,258,441
|
Less:
Provision for doubtful accounts
|
215,353
|
|
207,993
|
|
427,967
|
|
377,788
|
Net
revenues
|
2,612,356
|
|
2,430,855
|
|
5,225,214
|
|
4,880,653
|
|
|
|
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
1,236,294
|
|
1,130,933
|
|
2,474,258
|
|
2,279,072
|
Other
operating expenses
|
632,193
|
|
585,995
|
|
1,239,553
|
|
1,147,579
|
Supplies
expense
|
274,539
|
|
254,422
|
|
552,153
|
|
509,672
|
Depreciation and amortization
|
113,112
|
|
101,411
|
|
223,910
|
|
205,460
|
Lease
and rental expense
|
26,027
|
|
24,806
|
|
51,216
|
|
49,258
|
|
2,282,165
|
|
2,097,567
|
|
4,541,090
|
|
4,191,041
|
|
|
|
|
|
|
|
|
Income from
operations
|
330,191
|
|
333,288
|
|
684,124
|
|
689,612
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
35,920
|
|
30,442
|
|
71,427
|
|
60,042
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
294,271
|
|
302,846
|
|
612,697
|
|
629,570
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
103,883
|
|
107,397
|
|
211,782
|
|
218,402
|
|
|
|
|
|
|
|
|
Net income
|
190,388
|
|
195,449
|
|
400,915
|
|
411,168
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to
|
|
|
|
|
|
|
|
noncontrolling
interests
|
4,994
|
|
9,872
|
|
9,466
|
|
34,832
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$185,394
|
|
$185,577
|
|
$391,449
|
|
$376,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS (a)
|
$1.93
|
|
$1.91
|
|
$4.06
|
|
$3.86
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS (a)
|
$1.91
|
|
$1.89
|
|
$4.03
|
|
$3.81
|
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Basic and
diluted:
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$185,394
|
|
$185,577
|
|
$391,449
|
|
$376,336
|
Less: Net income
attributable to unvested restricted share grants
|
(82)
|
|
(84)
|
|
(176)
|
|
(173)
|
Net income
attributable to UHS - basic and diluted
|
$185,312
|
|
$185,493
|
|
$391,273
|
|
$376,163
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares - basic
|
96,247
|
|
97,109
|
|
96,416
|
|
97,358
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS:
|
$1.93
|
|
$1.91
|
|
$4.06
|
|
$3.86
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
96,247
|
|
97,109
|
|
96,416
|
|
97,358
|
Add: Other share
equivalents
|
795
|
|
1,280
|
|
791
|
|
1,284
|
Weighted average
number of common shares and equiv. - diluted
|
97,042
|
|
98,389
|
|
97,207
|
|
98,642
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS:
|
$1.91
|
|
$1.89
|
|
$4.03
|
|
$3.81
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the three months
ended June 30, 2017 and 2016
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA")
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
% Net
|
|
Three months
ended
|
|
% Net
|
|
June 30,
2017
|
|
revenues
|
|
June 30,
2016
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$185,394
|
|
|
|
$185,577
|
|
|
Depreciation and amortization
|
113,112
|
|
|
|
101,411
|
|
|
Interest
expense, net
|
35,920
|
|
|
|
30,442
|
|
|
Provision for income taxes
|
103,883
|
|
|
|
107,397
|
|
|
EBITDA
|
$438,309
|
|
16.8%
|
|
$424,827
|
|
17.5%
|
EHR-related net
income attributable to noncontrolling interests, pre-tax
|
29
|
|
|
|
(455)
|
|
|
Adjusted
EBITDA
|
$438,338
|
|
16.8%
|
|
$424,372
|
|
17.5%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$2,612,356
|
|
|
|
$2,430,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$185,394
|
|
$1.91
|
|
$185,577
|
|
$1.89
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Impact of ASU
2016-09
|
(1,382)
|
|
(0.01)
|
|
-
|
|
-
|
After-tax impact of
EHR-related items
|
4,038
|
|
0.04
|
|
5,477
|
|
0.05
|
Subtotal
|
2,656
|
|
0.03
|
|
5,477
|
|
0.05
|
Adjusted net income
attributable to UHS
|
$188,050
|
|
$1.94
|
|
$191,054
|
|
$1.94
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the six months
ended June 30, 2017 and 2016
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA")
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
% Net
|
|
Six months
ended
|
|
% Net
|
|
June 30,
2017
|
|
revenues
|
|
June 30,
2016
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$391,449
|
|
|
|
$376,336
|
|
|
Depreciation and amortization
|
223,910
|
|
|
|
205,460
|
|
|
Interest
expense, net
|
71,427
|
|
|
|
60,042
|
|
|
Provision for income taxes
|
211,782
|
|
|
|
218,402
|
|
|
EBITDA
|
$898,568
|
|
17.2%
|
|
$860,240
|
|
17.6%
|
EHR-related net
income attributable to noncontrolling interests, pre-tax
|
(173)
|
|
|
|
(1,417)
|
|
|
Adjusted
EBITDA
|
$898,395
|
|
17.2%
|
|
$858,823
|
|
17.6%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$5,225,214
|
|
|
|
$4,880,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Six months
ended
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$391,449
|
|
$4.03
|
|
$376,336
|
|
$3.81
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Impact of ASU
2016-09
|
(8,132)
|
|
(0.08)
|
|
-
|
|
-
|
After-tax impact of
EHR-related items
|
9,111
|
|
0.09
|
|
10,711
|
|
0.11
|
Subtotal
|
979
|
|
0.01
|
|
10,711
|
|
0.11
|
Adjusted net income
attributable to UHS
|
$392,428
|
|
$4.04
|
|
$387,047
|
|
$3.92
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Comprehensive Income
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Six months
|
|
ended June
30,
|
|
ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net income
|
$190,388
|
|
$195,449
|
|
$400,915
|
|
$411,168
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Unrealized derivative gains (losses) on cash flow hedges
|
(129)
|
|
(3,769)
|
|
2,937
|
|
(18,068)
|
Amortization of terminated hedge
|
0
|
|
(83)
|
|
0
|
|
(167)
|
Unrealized gain (loss) on marketable security
|
3,066
|
|
(621)
|
|
4,160
|
|
(621)
|
Foreign
currency translation adjustment
|
1,713
|
|
(4,163)
|
|
8,949
|
|
1,823
|
Other comprehensive
income (loss) before tax
|
4,650
|
|
(8,636)
|
|
16,046
|
|
(17,033)
|
Income tax expense
(benefit) related to items of other comprehensive income
|
1,095
|
|
(1,667)
|
|
2,646
|
|
(7,027)
|
Total other
comprehensive income (loss), net of tax
|
3,555
|
|
(6,969)
|
|
13,400
|
|
(10,006)
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
193,943
|
|
188,480
|
|
414,315
|
|
401,162
|
Less: Comprehensive
income attributable to noncontrolling interests
|
4,994
|
|
9,872
|
|
9,466
|
|
34,832
|
Comprehensive income
attributable to UHS
|
$188,949
|
|
$178,608
|
|
$404,849
|
|
$366,330
|
Universal Health
Services, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
66,446
|
|
$
|
33,747
|
Accounts receivable, net
|
|
|
1,456,999
|
|
|
1,439,553
|
Supplies
|
|
|
130,698
|
|
|
125,365
|
Other current assets
|
|
|
109,017
|
|
|
82,706
|
Total current assets
|
|
|
1,763,160
|
|
|
1,681,371
|
|
|
|
|
|
|
|
Property and
equipment
|
|
|
7,604,631
|
|
|
7,314,437
|
Less: accumulated
depreciation
|
|
|
(3,162,756)
|
|
|
(2,983,481)
|
|
|
|
4,441,875
|
|
|
4,330,956
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
|
|
3,803,386
|
|
|
3,784,106
|
Deferred charges
|
|
|
11,720
|
|
|
13,520
|
Deferred income taxes
|
|
|
1,301
|
|
|
1,234
|
Other
|
|
|
531,045
|
|
|
506,615
|
Total
Assets
|
|
$
|
10,552,487
|
|
$
|
10,317,802
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
126,109
|
|
$
|
105,895
|
Accounts payable and accrued liabilities
|
|
|
1,182,396
|
|
|
1,209,329
|
Federal and state taxes
|
|
|
13,724
|
|
|
2,149
|
Total current liabilities
|
|
|
1,322,229
|
|
|
1,317,373
|
|
|
|
|
|
|
|
Other noncurrent
liabilities
|
|
|
282,732
|
|
|
275,167
|
Long-term
debt
|
|
|
3,988,912
|
|
|
4,030,230
|
Deferred income
taxes
|
|
|
73,813
|
|
|
88,119
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
6,974
|
|
|
9,319
|
|
|
|
|
|
|
|
UHS common
stockholders' equity
|
|
|
4,812,854
|
|
|
4,533,220
|
Noncontrolling
interest
|
|
|
64,973
|
|
|
64,374
|
Total equity
|
|
|
4,877,827
|
|
|
4,597,594
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
10,552,487
|
|
$
|
10,317,802
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
Six
months
|
|
ended June
30,
|
|
2017
|
|
2016
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$400,915
|
|
$411,168
|
Adjustments
to reconcile net income to net
|
|
|
|
cash provided by
operating activities:
|
|
|
|
Depreciation &
amortization
|
223,910
|
|
205,460
|
Stock-based
compensation expense
|
29,053
|
|
24,693
|
Changes in
assets & liabilities, net of effects from
|
|
|
|
acquisitions and
dispositions:
|
|
|
|
Accounts
receivable
|
941
|
|
(45,729)
|
Accrued
interest
|
211
|
|
9,158
|
Accrued
and deferred income taxes
|
(5,529)
|
|
17,997
|
Other
working capital accounts
|
(93,715)
|
|
123,315
|
Other
assets and deferred charges
|
(19,927)
|
|
(8,149)
|
Other
|
(23,411)
|
|
52,050
|
Excess
income tax benefits related to stock-based compensation
|
0
|
|
35,247
|
Accrued
insurance expense, net of commercial premiums paid
|
58,903
|
|
44,231
|
Payments
made in settlement of self-insurance claims
|
(37,759)
|
|
(33,012)
|
Net cash provided by operating activities
|
533,592
|
|
836,429
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Property
and equipment additions, net of disposals
|
(262,452)
|
|
(247,715)
|
Acquisition of property and businesses
|
(19,610)
|
|
(27,525)
|
Increase
in capital reserves of commercial insurance subsidiary
|
(3,000)
|
|
0
|
Costs
incurred for purchase and implementation of information technology
application
|
(19,448)
|
|
0
|
Net cash used in investing activities
|
(304,510)
|
|
(275,240)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Reduction of long-term debt
|
(45,675)
|
|
(843,351)
|
Additional borrowings
|
21,600
|
|
1,022,239
|
Acquisition of noncontrolling interests in majority owned
businesses
|
0
|
|
(418,000)
|
Financing costs
|
0
|
|
(10,734)
|
Repurchase of common shares
|
(147,463)
|
|
(239,139)
|
Dividends paid
|
(19,280)
|
|
(19,484)
|
Issuance
of common stock
|
4,927
|
|
4,362
|
Profit
distributions to noncontrolling interests
|
(11,430)
|
|
(59,615)
|
Net cash used in financing activities
|
(197,321)
|
|
(563,722)
|
|
|
|
|
Effect
of exchange rate changes on cash and cash equivalents
|
938
|
|
(2,422)
|
Increase (decrease)
in cash and cash equivalents
|
32,699
|
|
(4,955)
|
Cash and cash
equivalents, beginning of period
|
33,747
|
|
61,228
|
Cash and cash
equivalents, end of period
|
$66,446
|
|
$56,273
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
Interest
paid
|
$66,765
|
|
$53,558
|
|
|
|
|
Income taxes
paid, net of refunds
|
$216,214
|
|
$165,947
|
|
|
|
|
Noncash
purchases of property and equipment
|
$63,089
|
|
$42,747
|
Universal Health
Services, Inc.
|
Supplemental
Statistical Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
%
Change
|
|
|
|
|
|
|
|
Quarter
ended
|
|
6 months
ended
|
|
|
Same
Facility:
|
|
|
|
|
6/30/2017
|
|
6/30/2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Acute Care
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
5.1%
|
|
4.9%
|
|
|
Adjusted
Admissions
|
|
|
|
|
6.0%
|
|
5.5%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
2.7%
|
|
2.2%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
0.0%
|
|
-0.2%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
3.2%
|
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Behavioral Health
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
2.2%
|
|
1.8%
|
|
|
Adjusted
Admissions
|
|
|
|
|
3.7%
|
|
3.1%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
1.4%
|
|
0.8%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
-1.4%
|
|
-1.2%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
0.9%
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UHS
Consolidated
|
|
|
Second quarter
ended
|
|
Six months
ended
|
|
|
|
6/30/2017
|
|
6/30/2016
|
|
6/30/2017
|
|
6/30/2016
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$2,612,356
|
|
$2,430,855
|
|
$5,225,214
|
|
$4,880,653
|
EBITDA (1)
|
|
|
$438,309
|
|
$424,827
|
|
$898,568
|
|
$860,240
|
EBITDA Margin
(1)
|
|
|
16.8%
|
|
17.5%
|
|
17.2%
|
|
17.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From
Operations
|
|
|
$50,584
|
|
$361,200
|
|
$533,592
|
|
$836,429
|
Days Sales
Outstanding
|
|
|
51
|
|
50
|
|
50
|
|
50
|
Capital
Expenditures
|
|
|
$118,114
|
|
$120,501
|
|
$262,452
|
|
$247,715
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
|
$4,115,021
|
|
$3,594,177
|
UHS' Shareholders
Equity
|
|
|
|
|
|
|
$4,812,854
|
|
$4,302,978
|
Debt / Total
Capitalization
|
|
|
|
|
|
|
46.1%
|
|
45.5%
|
Debt / EBITDA
(2)
|
|
|
|
|
|
|
2.43
|
|
2.21
|
Debt / Cash From
Operations (2)
|
|
|
|
|
|
3.99
|
|
2.67
|
|
|
|
|
|
|
|
|
|
|
(1) Net of
Minority Interest
|
(2) Latest 4
quarters
|
Universal Health
Services, Inc.
|
Acute Care Hospital
Services
|
For the three and six
months ended
|
June 30, 2017 and
2016
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility
Basis - Acute Care Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues before
provision for doubtful accounts
|
|
$1,472,401
|
|
|
|
$1,409,777
|
|
|
|
$2,978,717
|
|
|
|
$2,821,963
|
|
|
Less: Provision for
doubtful accounts
|
|
178,447
|
|
|
|
178,918
|
|
|
|
351,845
|
|
|
|
318,673
|
|
|
Net
revenues
|
|
1,293,954
|
|
100.0%
|
|
1,230,859
|
|
100.0%
|
|
2,626,872
|
|
100.0%
|
|
2,503,290
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
534,475
|
|
41.3%
|
|
507,371
|
|
41.2%
|
|
1,072,630
|
|
40.8%
|
|
1,019,331
|
|
40.7%
|
Other operating
expenses
|
|
308,211
|
|
23.8%
|
|
301,796
|
|
24.5%
|
|
617,213
|
|
23.5%
|
|
586,886
|
|
23.4%
|
Supplies
expense
|
|
218,899
|
|
16.9%
|
|
203,517
|
|
16.5%
|
|
441,868
|
|
16.8%
|
|
410,285
|
|
16.4%
|
Depreciation and
amortization
|
|
62,716
|
|
4.8%
|
|
56,294
|
|
4.6%
|
|
122,705
|
|
4.7%
|
|
115,603
|
|
4.6%
|
Lease and rental
expense
|
|
14,263
|
|
1.1%
|
|
13,875
|
|
1.1%
|
|
27,474
|
|
1.0%
|
|
26,917
|
|
1.1%
|
Subtotal-operating
expenses
|
|
1,138,564
|
|
88.0%
|
|
1,082,853
|
|
88.0%
|
|
2,281,890
|
|
86.9%
|
|
2,159,022
|
|
86.2%
|
Income from
operations
|
|
155,390
|
|
12.0%
|
|
148,006
|
|
12.0%
|
|
344,982
|
|
13.1%
|
|
344,268
|
|
13.8%
|
Interest expense,
net
|
|
690
|
|
0.1%
|
|
822
|
|
0.1%
|
|
1,434
|
|
0.1%
|
|
1,643
|
|
0.1%
|
Income before income
taxes
|
|
$154,700
|
|
12.0%
|
|
$147,184
|
|
12.0%
|
|
$343,548
|
|
13.1%
|
|
$342,625
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Acute Care
Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues before
provision for doubtful accounts
|
|
$1,553,826
|
|
|
|
$1,432,246
|
|
|
|
$3,124,356
|
|
|
|
$2,859,148
|
|
|
Less: Provision for
doubtful accounts
|
|
187,369
|
|
|
|
178,918
|
|
|
|
368,352
|
|
|
|
318,673
|
|
|
Net
revenues
|
|
1,366,457
|
|
100.0%
|
|
1,253,328
|
|
100.0%
|
|
2,756,004
|
|
100.0%
|
|
2,540,475
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
551,735
|
|
40.4%
|
|
507,745
|
|
40.5%
|
|
1,106,695
|
|
40.2%
|
|
1,019,767
|
|
40.1%
|
Other operating
expenses
|
|
343,669
|
|
25.2%
|
|
324,496
|
|
25.9%
|
|
675,968
|
|
24.5%
|
|
624,457
|
|
24.6%
|
Supplies
expense
|
|
224,924
|
|
16.5%
|
|
203,520
|
|
16.2%
|
|
453,409
|
|
16.5%
|
|
410,288
|
|
16.2%
|
Depreciation and
amortization
|
|
73,017
|
|
5.3%
|
|
65,482
|
|
5.2%
|
|
144,355
|
|
5.2%
|
|
134,097
|
|
5.3%
|
Lease and rental
expense
|
|
14,545
|
|
1.1%
|
|
13,891
|
|
1.1%
|
|
28,461
|
|
1.0%
|
|
26,933
|
|
1.1%
|
Subtotal-operating
expenses
|
|
1,207,890
|
|
88.4%
|
|
1,115,134
|
|
89.0%
|
|
2,408,888
|
|
87.4%
|
|
2,215,542
|
|
87.2%
|
Income from
operations
|
|
158,567
|
|
11.6%
|
|
138,194
|
|
11.0%
|
|
347,116
|
|
12.6%
|
|
324,933
|
|
12.8%
|
Interest expense,
net
|
|
690
|
|
0.1%
|
|
822
|
|
0.1%
|
|
1,435
|
|
0.1%
|
|
1,643
|
|
0.1%
|
Income before income
taxes
|
|
$157,877
|
|
11.6%
|
|
$137,372
|
|
11.0%
|
|
$345,681
|
|
12.5%
|
|
$323,290
|
|
12.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 impact of the EHR applications, the effect of
items that are non-operational in nature including items such as,
but not limited to, gains on sales of assets and businesses,
impacts of 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. 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 in the
condensed consolidated financial statements and notes thereto as
contained in our Form 10-K for the year ended December 31, 2016 and
our Form 10-Q for the quarterly period ended March 31,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The All Acute Care
Hospital Servicestable summarizes the results of operations for
all our acute care operations during the three and six-month
periods ended June 30, 2017 and 2016. These amounts include:
(i) our acute care results on a same facility basis, as
indicated above; (ii) the impact of the implementation of EHR
applications at our acute care hospitals; (iii) the impact of
provider tax assessments which increased net revenues and other
operating expenses but had no impact on income before income taxes,
and; (iv) certain other amounts including the results of
facilities acquired or opened during the last twelve
months.
|
Universal Health
Services, Inc.
|
Behavioral Health
Services
|
For the three and six
months ended
|
June 30, 2017 and
2016
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility -
Behavioral Health
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues before
provision for doubtful accounts
|
|
$1,209,123
|
|
|
|
$1,184,696
|
|
|
|
$2,390,357
|
|
|
|
$2,349,621
|
|
|
Less: Provision for
doubtful accounts
|
|
28,047
|
|
|
|
29,109
|
|
|
|
58,662
|
|
|
|
58,897
|
|
|
Net
revenues
|
|
1,181,076
|
|
100.0%
|
|
1,155,587
|
|
100.0%
|
|
2,331,695
|
|
100.0%
|
|
2,290,724
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
590,987
|
|
50.0%
|
|
564,335
|
|
48.8%
|
|
1,174,551
|
|
50.4%
|
|
1,125,008
|
|
49.1%
|
Other operating
expenses
|
|
233,260
|
|
19.7%
|
|
222,502
|
|
19.3%
|
|
458,255
|
|
19.7%
|
|
436,619
|
|
19.1%
|
Supplies
expense
|
|
48,896
|
|
4.1%
|
|
48,524
|
|
4.2%
|
|
96,657
|
|
4.1%
|
|
96,623
|
|
4.2%
|
Depreciation and
amortization
|
|
33,633
|
|
2.8%
|
|
33,006
|
|
2.9%
|
|
66,632
|
|
2.9%
|
|
65,749
|
|
2.9%
|
Lease and rental
expense
|
|
10,920
|
|
0.9%
|
|
10,746
|
|
0.9%
|
|
21,497
|
|
0.9%
|
|
21,815
|
|
1.0%
|
Subtotal-operating
expenses
|
|
917,696
|
|
77.7%
|
|
879,113
|
|
76.1%
|
|
1,817,592
|
|
78.0%
|
|
1,745,814
|
|
76.2%
|
Income from
operations
|
|
263,380
|
|
22.3%
|
|
276,474
|
|
23.9%
|
|
514,103
|
|
22.0%
|
|
544,910
|
|
23.8%
|
Interest expense,
net
|
|
439
|
|
0.0%
|
|
438
|
|
0.0%
|
|
1,162
|
|
0.0%
|
|
882
|
|
0.0%
|
Income before income
taxes
|
|
$262,941
|
|
22.3%
|
|
$276,036
|
|
23.9%
|
|
$512,941
|
|
22.0%
|
|
$544,028
|
|
23.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Behavioral
Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Six months
ended
|
|
Six months
ended
|
|
|
June 30,
2017
|
|
June 30,
2016
|
|
June 30,
2017
|
|
June 30,
2016
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues before
provision for doubtful accounts
|
|
$1,270,547
|
|
|
|
$1,203,826
|
|
|
|
$2,520,295
|
|
|
|
$2,394,916
|
|
|
Less: Provision for
doubtful accounts
|
|
27,986
|
|
|
|
29,071
|
|
|
|
59,612
|
|
|
|
59,115
|
|
|
Net
revenues
|
|
1,242,561
|
|
100.0%
|
|
1,174,755
|
|
100.0%
|
|
2,460,683
|
|
100.0%
|
|
2,335,801
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
622,829
|
|
50.1%
|
|
567,280
|
|
48.3%
|
|
1,236,678
|
|
50.3%
|
|
1,132,152
|
|
48.5%
|
Other operating
expenses
|
|
268,241
|
|
21.6%
|
|
240,714
|
|
20.5%
|
|
522,719
|
|
21.2%
|
|
477,729
|
|
20.5%
|
Supplies
expense
|
|
49,984
|
|
4.0%
|
|
48,664
|
|
4.1%
|
|
99,020
|
|
4.0%
|
|
97,000
|
|
4.2%
|
Depreciation and
amortization
|
|
37,564
|
|
3.0%
|
|
33,887
|
|
2.9%
|
|
74,509
|
|
3.0%
|
|
67,419
|
|
2.9%
|
Lease and rental
expense
|
|
11,358
|
|
0.9%
|
|
10,856
|
|
0.9%
|
|
22,518
|
|
0.9%
|
|
22,118
|
|
0.9%
|
Subtotal-operating
expenses
|
|
989,976
|
|
79.7%
|
|
901,401
|
|
76.7%
|
|
1,955,444
|
|
79.5%
|
|
1,796,418
|
|
76.9%
|
Income from
operations
|
|
252,585
|
|
20.3%
|
|
273,354
|
|
23.3%
|
|
505,239
|
|
20.5%
|
|
539,383
|
|
23.1%
|
Interest expense,
net
|
|
439
|
|
0.0%
|
|
438
|
|
0.0%
|
|
1,162
|
|
0.0%
|
|
882
|
|
0.0%
|
Income before income
taxes
|
|
$252,146
|
|
20.3%
|
|
$272,916
|
|
23.2%
|
|
$504,077
|
|
20.5%
|
|
$538,501
|
|
23.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe that
providing our results on a "Same Facility" basis (which is a
non-GAAP measure), which includes the operating results for
facilities and businesses operated in both the current year and
prior year periods, is helpful to our investors as a measure of our
operating performance. Our Same Facility results also neutralize
(if applicable), the effect of items that are non-operational in
nature including items such as, but not limited to, gains on sales
of assets and businesses, impacts of 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.
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 in
the condensed consolidated financial statements and notes thereto
as contained in our Form 10-K for the year ended December 31, 2016
and our Form 10-Q for the quarterly period ended March 31,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The All Behavioral
Health Care Servicestable summarizes the results of operations
for all our behavioral health care facilities during the three and
six-month periods ended June 30, 2017 and 2016. 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.
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the three months
ended
|
June 30, 2017 and
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
6/30/17
|
6/30/16
|
%
change
|
|
6/30/17
|
6/30/16
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
24
|
8.3%
|
|
294
|
213
|
38.0%
|
Average licensed
beds
|
|
6,120
|
5,854
|
4.5%
|
|
23,133
|
21,824
|
6.0%
|
Patient
days
|
|
324,249
|
306,907
|
5.7%
|
|
1,625,692
|
1,511,204
|
7.6%
|
Average daily
census
|
|
3,563.2
|
3,372.6
|
5.7%
|
|
17,864.7
|
16,606.6
|
7.6%
|
Occupancy-licensed
beds
|
|
58.2%
|
57.6%
|
1.1%
|
|
77.2%
|
76.1%
|
1.5%
|
Admissions
|
|
73,552
|
66,824
|
10.1%
|
|
119,142
|
114,873
|
3.7%
|
Length of
stay
|
|
4.4
|
4.6
|
-4.0%
|
|
13.6
|
13.2
|
3.7%
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$5,430,997
|
$4,682,682
|
16.0%
|
|
$2,249,135
|
$1,995,992
|
12.7%
|
Outpatient
revenue
|
|
3,286,930
|
2,838,852
|
15.8%
|
|
257,312
|
229,243
|
12.2%
|
Total patient
revenue
|
|
8,717,927
|
7,521,534
|
15.9%
|
|
2,506,447
|
2,225,235
|
12.6%
|
Other
revenue
|
|
118,177
|
118,988
|
-0.7%
|
|
52,883
|
53,053
|
-0.3%
|
Gross hospital
revenue
|
|
8,836,104
|
7,640,522
|
15.6%
|
|
2,559,330
|
2,278,288
|
12.3%
|
|
|
|
|
|
|
|
|
|
Total
deductions
|
|
7,282,278
|
6,208,276
|
17.3%
|
|
1,288,783
|
1,074,462
|
19.9%
|
|
|
|
|
|
|
|
|
|
Net hospital revenue
before
|
|
|
|
|
|
|
|
|
provision for
doubtful accounts
|
|
1,553,826
|
1,432,246
|
8.5%
|
|
1,270,547
|
1,203,826
|
5.5%
|
|
|
|
|
|
|
|
|
|
Provision for
doubtful accounts
|
|
187,369
|
178,918
|
4.7%
|
|
27,986
|
29,071
|
-3.7%
|
|
|
|
|
|
|
|
|
|
Net hospital
revenue
|
|
$1,366,457
|
$1,253,328
|
9.0%
|
|
$1,242,561
|
$1,174,755
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
(1)
|
|
BEHAVIORAL HEALTH
(2)
|
|
|
6/30/17
|
6/30/16
|
%
change
|
|
6/30/17
|
6/30/16
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
24
|
24
|
0.0%
|
|
212
|
212
|
0.0%
|
Average licensed
beds
|
|
5,965
|
5,854
|
1.9%
|
|
21,922
|
21,713
|
1.0%
|
Patient
days
|
|
318,555
|
306,907
|
3.8%
|
|
1,526,725
|
1,505,750
|
1.4%
|
Average daily
census
|
|
3,500.6
|
3,372.6
|
3.8%
|
|
16,777.2
|
16,546.7
|
1.4%
|
Occupancy-licensed
beds
|
|
58.7%
|
57.6%
|
1.9%
|
|
76.5%
|
76.2%
|
0.4%
|
Admissions
|
|
71,557
|
66,824
|
7.1%
|
|
118,887
|
114,627
|
3.7%
|
Length of
stay
|
|
4.5
|
4.6
|
-3.1%
|
|
12.8
|
13.1
|
-2.2%
|
|
|
|
|
|
|
|
|
|
(1) Henderson
Hospital and Desert View Hospital are excluded in current
year.
|
(2) CAMBIAN
facilities are excluded in current year.
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the six months
ended
|
June 30, 2017 and
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
6/30/17
|
6/30/16
|
%
change
|
|
6/30/17
|
6/30/16
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
24
|
8.3%
|
|
294
|
213
|
38.0%
|
Average licensed
beds
|
|
6,114
|
5,854
|
4.4%
|
|
23,094
|
21,788
|
6.0%
|
Patient
days
|
|
657,249
|
632,141
|
4.0%
|
|
3,218,146
|
3,011,909
|
6.8%
|
Average daily
census
|
|
3,631.2
|
3,473.3
|
4.5%
|
|
17,779.8
|
16,549.0
|
7.4%
|
Occupancy-licensed
beds
|
|
59.4%
|
59.3%
|
0.2%
|
|
77.0%
|
76.0%
|
1.3%
|
Admissions
|
|
147,903
|
136,498
|
8.4%
|
|
237,472
|
230,294
|
3.1%
|
Length of
stay
|
|
4.4
|
4.6
|
-4.0%
|
|
13.6
|
13.1
|
3.6%
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$11,028,847
|
$9,648,219
|
14.3%
|
|
$4,432,137
|
$3,955,562
|
12.0%
|
Outpatient
revenue
|
|
6,581,107
|
5,606,181
|
17.4%
|
|
503,772
|
450,886
|
11.7%
|
Total patient
revenue
|
|
17,609,954
|
15,254,400
|
15.4%
|
|
4,935,909
|
4,406,448
|
12.0%
|
Other
revenue
|
|
239,442
|
230,545
|
3.9%
|
|
104,359
|
103,591
|
0.7%
|
Gross hospital
revenue
|
|
17,849,396
|
15,484,945
|
15.3%
|
|
5,040,268
|
4,510,039
|
11.8%
|
|
|
|
|
|
|
|
|
|
Total
deductions
|
|
14,725,040
|
12,625,797
|
16.6%
|
|
2,519,973
|
2,115,123
|
19.1%
|
|
|
|
|
|
|
|
|
|
Net hospital revenue
before
|
|
|
|
|
|
|
|
|
provision for
doubtful accounts
|
|
3,124,356
|
2,859,148
|
9.3%
|
|
2,520,295
|
2,394,916
|
5.2%
|
|
|
|
|
|
|
|
|
|
Provision for
doubtful accounts
|
|
368,352
|
318,673
|
15.6%
|
|
59,612
|
59,115
|
0.8%
|
|
|
|
|
|
|
|
|
|
Net hospital
revenue
|
|
$2,756,004
|
$2,540,475
|
8.5%
|
|
$2,460,683
|
$2,335,801
|
5.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
(1)
|
|
BEHAVIORAL HEALTH
(2)
|
|
|
6/30/17
|
6/30/16
|
%
change
|
|
6/30/17
|
6/30/16
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
24
|
24
|
0.0%
|
|
212
|
212
|
0.0%
|
Average licensed
beds
|
|
5,959
|
5,854
|
1.8%
|
|
21,840
|
21,601
|
1.1%
|
Patient
days
|
|
646,514
|
632,141
|
2.3%
|
|
3,020,202
|
2,995,902
|
0.8%
|
Average daily
census
|
|
3,571.9
|
3,473.3
|
2.8%
|
|
16,686.2
|
16,461.0
|
1.4%
|
Occupancy-licensed
beds
|
|
59.9%
|
59.3%
|
1.0%
|
|
76.4%
|
76.2%
|
0.3%
|
Admissions
|
|
144,209
|
136,498
|
5.6%
|
|
236,842
|
229,762
|
3.1%
|
Length of
stay
|
|
4.5
|
4.6
|
-3.2%
|
|
12.8
|
13.0
|
-2.2%
|
|
|
|
|
|
|
|
|
|
(1) Henderson
Hospital and Desert View Hospital are excluded in current
year.
|
(2) CAMBIAN
facilities are excluded in current year.
|
View original
content:http://www.prnewswire.com/news-releases/universal-health-services-inc-reports-2017-second-quarter-financial-results-and-revises-2017-full-year-earnings-guidance-300493922.html
SOURCE Universal Health Services, Inc.