KING OF PRUSSIA, Pa.,
Oct. 24, 2019 /PRNewswire/
-- Universal Health Services, Inc. (NYSE: UHS) announced today
that its reported net income attributable to UHS was $97.2 million, or $1.10 per diluted share, during the third quarter
of 2019 as compared to $171.7
million, or $1.84 per diluted
share, during the comparable quarter of 2018. Net revenues
increased 6.6% to $2.822 billion
during the third quarter of 2019 as compared to $2.649 billion during the third quarter of
2018.
For the three-month period ended September 30, 2019, our adjusted net income
attributable to UHS, as calculated on the attached Schedule of
Non-GAAP Supplemental Information ("Supplemental Schedule"), was
$176.3 million, or $1.99 per diluted share, as compared to
$208.8 million, or $2.23 per diluted share, during the third quarter
of 2018.
Included in our reported and our adjusted net income
attributable to UHS is a pre-tax unrealized loss of $15.2 million, or $.13 per diluted share after-tax, during the
third quarter of 2019, as compared to a pre-tax unrealized gain of
$10.5 million, or $.09 per diluted share after-tax, during the
third quarter of 2018. These unrealized losses/gains, which are
included in "Other (income) expense, net" on the accompanying
consolidated statements of income, resulted from
decreases/increases 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 third quarter of 2019, is an aggregate
net unfavorable after-tax impact of $79.1
million, or $.89 per diluted
share, resulting from: (i) an unfavorable after-tax impact of
$74.6 million, or $.84 per diluted share, resulting from a
$97.6 million provision for asset
impairment, as discussed below; (ii) an unfavorable after-tax
impact of $6.2 million, or
$.07 per diluted share, resulting
from the net estimated federal and state income taxes due on the
portion of the aggregate pre-tax reserve ("DOJ Reserve")
established in connection with the previously disclosed agreement
in principle with the Department Of Justice, Civil Division
("DOJ"), that is estimated to be non-deductible for income tax
purposes, and; (iii) a favorable after-tax impact of $1.7 million, or $.02 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 third quarter of 2018, is a net
aggregate unfavorable after-tax impact of $37.1 million, or $.39 per diluted share, substantially all of
which resulted from an unfavorable after-tax impact of $36.6 million, or $.39 per diluted share, resulting from a
$48.0 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 $297.4
million during the third quarter of 2019 as compared to
$377.7 million during the third
quarter of 2018. Our adjusted earnings before interest,
taxes, depreciation & amortization ("Adjusted EBITDA net of
NCI"), which excludes the impacts of other (income) expense, net,
as well as the unfavorable impact of the above-mentioned provision
for asset impairment and increase in the DOJ Reserve, was
$404.4 million during the third
quarter of 2019 as compared to $414.3
million during the third quarter of 2018.
Consolidated Results of Operations, As Reported and As
Adjusted – Nine-month periods ended September 30, 2019 and 2018:
Reported net
income attributable to UHS was $569.7
million, or $6.35 per diluted
share, during the nine-month period ended September 30, 2019 as compared to $621.6 million, or $6.60 per diluted share, during the comparable
nine-month period of 2018. Net revenues increased 5.8% to
$8.482 billion during the first nine
months of 2019 as compared to $8.018
billion during the first nine months of 2018.
For the nine-month period ended September
30, 2019, our adjusted net income attributable to UHS, as
calculated on the attached Supplemental Schedule, was $646.7 million, or $7.21 per diluted share, as compared to
$674.3 million, or $7.16 per diluted share, during the comparable
nine-month period of 2018.
Included in our reported and our adjusted net income
attributable to UHS is a pre-tax unrealized loss of $12.5 million, or $.11 per diluted share after-tax, during the
first nine months of 2019, as compared to a pre-tax unrealized gain
of $18.5 million, or $.15 per diluted share after-tax, during the
comparable nine-month period of 2018. As discussed above, these
unrealized losses/gains resulted from a decreases/increases 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 nine-month period ended September 30, 2019, is an aggregate net
unfavorable after-tax impact of $77.0
million, or $.86 per diluted
share, resulting from: (i) an unfavorable after-tax impact of
$74.6 million, or $.84 per diluted share, resulting from a
$97.6 million provision for asset
impairment, as discussed below; (ii) an unfavorable after-tax
impact of $14.6 million, or
$.16 per diluted share, resulting
from an increase in the DOJ Reserve and the net estimated federal
and state income taxes due on the portion of the DOJ Reserve that
is estimated to be non-deductible for income tax purposes, and;
(iii) a favorable after-tax impact of $12.1
million, or $.14 per diluted
share, resulting from our adoption of ASU 2016-09.
As reflected on the Supplemental Schedule, included in our
reported results during the nine-month period ended September 30, 2018, is a net aggregate
unfavorable after-tax impact of $52.6
million, or $.56 per diluted
share, consisting of: (i) an unfavorable after-tax impact of
$53.7 million, or $.57 per diluted share, resulting from a
$70.4 million pre-tax increase in the
DOJ Reserve, partially offset by; (ii) a favorable after-tax impact
of $1.1 million, or $.01 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"), was $1.222
billion during the nine-month period ended September 30, 2019 as compared to $1.264 billion during the nine-month period ended
September 30, 2018. Our
adjusted earnings before interest, taxes, depreciation &
amortization ("Adjusted EBITDA net of NCI"), which excludes the
impacts of other (income) expense, net, as well as the unfavorable
impact of the above-mentioned provision for asset impairment and
increase in the DOJ Reserve, was $1.336
billion during the nine-month period ended September 30, 2019 as compared to $1.308 billion during the nine-month period ended
September 30, 2018.
Acute Care Services – Three and nine-month periods ended
September 30, 2019 and
2018:
During the third quarter of 2019, at our acute care
hospitals owned during both periods ("same facility basis"),
adjusted admissions (adjusted for outpatient activity) increased
7.4% and adjusted patient days increased 7.0%, as compared to the
third quarter of 2018. At these facilities, net revenue per
adjusted admission increased 1.6% while net revenue per adjusted
patient day increased 2.0% during the third quarter of 2019 as
compared to the third quarter of 2018. Net revenues from our acute
care services on a same facility basis increased 9.3% during the
third quarter of 2019 as compared to the third quarter of 2018.
During the nine-month period ended September 30, 2019, at our acute care hospitals
on a same facility basis, adjusted admissions increased 5.8% and
adjusted patient days increased 5.5%, as compared to the first nine
months of 2018. At these facilities, net revenue per adjusted
admission increased 1.5% while net revenue per adjusted patient day
increased 1.7% during the nine-month period ended September 30, 2019 as compared to the comparable
nine-month period of 2018. Net revenues from our acute care
services on a same facility basis increased 7.6% during the first
nine months of 2019 as compared to the comparable period of
2018.
Behavioral Health Care Services – Three and nine-month
periods ended September 30, 2019 and
2018:
During the third quarter of 2019, at our behavioral
health care facilities on a same facility basis, adjusted
admissions increased 0.5% while adjusted patient days increased
0.4% as compared to the third quarter of 2018. At these facilities,
net revenue per adjusted admission increased 2.0% while net revenue
per adjusted patient day increased 2.2% during the third quarter of
2019 as compared to the comparable quarter in 2018. On a same
facility basis, our behavioral health care services' net revenues
increased 2.1% during the third quarter of 2019 as compared to the
third quarter of 2018.
During the nine-month period ended September 30, 2019, at our behavioral health care
facilities on a same facility basis, adjusted admissions increased
1.3% while adjusted patient days increased 0.5% as compared to the
comparable nine-month period of 2018. At these facilities, net
revenue per adjusted admission increased 1.5% while net revenue per
adjusted patient day increased 2.3% during the first nine months of
2019 as compared to the comparable nine-month period in 2018. On a
same facility basis, our behavioral health care services' net
revenues increased 2.6% during the nine-month period ended
September 30, 2019 as compared to the
comparable nine-month period of 2018.
Net Cash Provided by Operating Activities and Share
Repurchase Program:
For the nine months ended September 30, 2019, our net cash provided by
operating activities increased to $1.049
billion as compared to $949
million generated during the comparable nine-month period of
2018. The $100 million net increase
was due to: (i) a favorable change of $69
million resulting from an increase in net income plus/minus
depreciation and amortization expense, stock-based compensation
expense, provision for asset impairment and net gains on sale of
assets and businesses; (ii) a favorable change of $37 million in accounts receivable, and; (iii)
$6 million of other combined net
unfavorable 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/outflows, which were received/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. For the nine-month periods ended September 30, 2019 and 2018, we have received
$90.3 million and $26.1 million, respectively, of net cash inflows
in connection with foreign exchange contracts that hedge our
investment in the U.K. Prior to 2019, these net inflows/outflows
were included in operating cash flows. Prior period amounts have
been reclassified to conform with current year presentation on the
consolidated statements of cash flows included herein.
In July, 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
had an aggregate available repurchase authorization of $937.3 million as of September 30, 2019, 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 stock repurchase program, during the
third quarter of 2019, we have repurchased 550,564 shares at
an aggregate cost of $79.5 million
(approximately $144 per
share). During the first nine months of 2019, we have
repurchased approximately 4.11 million shares at an aggregate cost
of $525.0 million (approximately
$128 per share). Since inception
of the program in 2014 through September 30,
2019, we have repurchased approximately 14.78 million shares
at an aggregate cost of approximately $1.76
billion (approximately $119
per share).
Update on Agreement in Principle with DOJ's Civil Division
and DOJ Reserve:
As previously disclosed on July 25, 2019, we have 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. At that time, we also
disclosed that we were further advised that the previously
disclosed investigations being conducted by the DOJ's Criminal
Frauds Section in connection with these matters had been
closed.
In connection with the agreement in principle with the DOJ's
Civil Division, during the nine-month period ended September 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 approximately $134
million as of September 30,
2019 and approximately $123
million as of December 31,
2018.
In late August, 2019, we received the initial draft of the
settlement agreement from the DOJ's Civil Division.
Negotiations regarding the terms and conditions of the settlement
agreement continue. Based upon the terms and provisions included in
the draft settlement agreement, and related subsequent discussions,
our financial statements for each of the three and nine-month
periods ended September 30, 2019
include an unfavorable provision for income taxes of $6.2 million resulting from the net estimated
federal and state income taxes due on the portion of the aggregate
pre-tax DOJ Reserve that is estimated to be non-deductible for
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
finalization and execution of a corporate integrity agreement with
the Office of Inspector General for the United States Department of
Health and Human Services, 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 June 30, 2019
for additional disclosure in connection with this matter.
Provision for Asset Impairment – Foundations Recovery
Network
Our financial results for
the three and nine-month periods ended September 30, 2019, include an aggregate pre-tax
provision for asset impairment of $97.6
million recorded in connection with Foundations Recovery
Network, L.L.C. ("Foundations"), which was acquired by us in 2015.
This pre-tax provision for asset impairment includes: (i) a
$74.9 million impairment provision to
write-off the carrying value of the Foundations' tradename
intangible asset, and; (ii) a $22.7
million impairment provision to reduce the carrying value of
real property assets of certain Foundations' facilities.
This provision for asset impairment, which is included in other
operating expenses in our consolidated statements of income for the
three and nine-month periods ended September
30, 2019, was recorded after evaluation of the estimated
fair value of the Foundations' tradename as well as certain related
real property assets. The provision for asset impairment was
impacted by the following: (i) recent decisions made by management
to cancel the opening of future planned de novo facilities; (ii)
reductions in projected future patient volumes, revenues and cash
flows based upon the operating trends and financial results
experienced by existing facilities, and; (iii) competitive
pressures experienced in certain markets.
Revision of 2019 Full Year Earnings Guidance
Range:
Based upon the operating trends and financial results
experienced during the first nine months of 2019, we are revising
our estimated range of adjusted net income attributable to UHS for
the year ended December 31, 2019 to
$9.60 to $9.90 per diluted share as compared to the
previously provided range of $9.70 to
$10.40 per diluted share. This
revised estimated guidance range decreases the lower end of the
previously provided range 1.0% and decreases the upper end of the
previously provided range by 4.8%.
Contributing to, and included in, the revised estimated earnings
guidance range for the year ended December
31, 2019 is the above-mentioned unrealized loss of
$.11 per diluted share ($12.5 million pre-tax), recorded during the first
nine months of 2019 resulting from a decrease in the market value
of shares of certain marketable securities held for investment and
classified as available for sale. For comparative purposes,
included in our reported and our adjusted net income attributable
to UHS during the first nine months of 2018, was an unrealized gain
of $.15 per diluted share
($18.5 million pre-tax), resulting
from an increase in the market value of these marketable
securities. The revised estimated earnings guidance range for
the full year of 2019 assumes no change in the market value of
these marketable securities during the fourth quarter of
2019.
This revised estimated earnings guidance range excludes: (i) the
unfavorable after-tax impact of $14.6
million, or $.16 per diluted
share, representing the current year changes in the DOJ Reserve,
and related provision for income taxes, established in connection
with the civil aspects of the government's investigation of our
certain of our behavioral health care facilities, as discussed
above; (ii) the unfavorable after-tax impact of $74.6 million, or $.84 per diluted share, resulting from a
$97.6 million provision for asset
impairment, as discussed below, partially offset by; (iii) the
favorable impact of $12.1 million, or
$.14 per diluted share, on our
provision for income taxes and net income attributable to UHS
resulting from of our adoption of ASU 2016-09.
In addition, this revised estimated earnings guidance range
excludes the impact of future items, if applicable and material,
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 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.
Conference call information:
We will hold a conference
call for investors and analysts at 9:00 a.m.
eastern time on October 25,
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 September 30, 2019
includes right of use assets-operating leases ($329.3 million) and operating lease liabilities
($55.1 million current and
$274.2 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 providers of hospital and healthcare
services, Universal Health Services, Inc. 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 strategy 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 26 acute care hospitals, 327 behavioral
health facilities, 40 outpatient facilities and ambulatory care
access points, an insurance offering, a physician network and
various related services located in 37 U.S. 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
June 30, 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
June 30, 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
|
|
Nine
months
|
|
ended September
30,
|
|
ended September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net
revenues
|
$2,822,453
|
|
$2,648,913
|
|
$8,482,012
|
|
$8,017,782
|
|
|
|
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
1,408,226
|
|
1,316,710
|
|
4,157,253
|
|
3,922,832
|
Other
operating expenses
|
762,174
|
|
651,442
|
|
2,079,518
|
|
1,896,745
|
Supplies
expense
|
313,936
|
|
285,201
|
|
927,256
|
|
867,863
|
Depreciation and amortization
|
121,528
|
|
112,286
|
|
362,736
|
|
334,970
|
Lease
and rental expense
|
27,660
|
|
26,110
|
|
80,320
|
|
79,932
|
|
2,633,524
|
|
2,391,749
|
|
7,607,083
|
|
7,102,342
|
Income from
operations
|
188,929
|
|
257,164
|
|
874,929
|
|
915,440
|
Interest expense,
net
|
41,447
|
|
39,506
|
|
123,574
|
|
115,082
|
Other (income)
expense, net
|
9,407
|
|
(11,409)
|
|
6,176
|
|
(26,717)
|
Income before income
taxes
|
138,075
|
|
229,067
|
|
745,179
|
|
827,075
|
Provision for income
taxes
|
37,205
|
|
54,186
|
|
165,646
|
|
192,814
|
Net income
|
100,870
|
|
174,881
|
|
579,533
|
|
634,261
|
Less: Net
income attributable to
|
|
|
|
|
|
|
|
noncontrolling
interests ("NCI")
|
3,680
|
|
3,135
|
|
9,855
|
|
12,631
|
Net income
attributable to UHS
|
$97,190
|
|
$171,746
|
|
$569,678
|
|
$621,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS (a)
|
$1.10
|
|
$1.85
|
|
$6.36
|
|
$6.63
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS (a)
|
$1.10
|
|
$1.84
|
|
$6.35
|
|
$6.60
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Footnotes to
Consolidated Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Nine
months
|
(a) Earnings per
share calculation:
|
ended September
30,
|
|
ended September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Basic and
diluted:
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$97,190
|
|
$171,746
|
|
$569,678
|
|
$621,630
|
Less: Net income
attributable to unvested restricted share grants
|
(243)
|
|
(317)
|
|
(1,414)
|
|
(813)
|
Net income
attributable to UHS - basic and diluted
|
$96,947
|
|
$171,429
|
|
$568,264
|
|
$620,817
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares - basic
|
87,952
|
|
92,849
|
|
89,288
|
|
93,639
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS:
|
$1.10
|
|
$1.85
|
|
$6.36
|
|
$6.63
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
87,952
|
|
92,849
|
|
89,288
|
|
93,639
|
Add: Other share
equivalents
|
403
|
|
481
|
|
231
|
|
459
|
Weighted average
number of common shares and equiv. - diluted
|
88,355
|
|
93,330
|
|
89,519
|
|
94,098
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS:
|
$1.10
|
|
$1.84
|
|
$6.35
|
|
$6.60
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the Three Months
ended September 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
|
|
September 30,
2019
|
|
revenues
|
|
September 30,
2018
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$97,190
|
|
|
|
$171,746
|
|
|
Depreciation and amortization
|
121,528
|
|
|
|
112,286
|
|
|
Interest
expense, net
|
41,447
|
|
|
|
39,506
|
|
|
Provision for income taxes
|
37,205
|
|
|
|
54,186
|
|
|
EBITDA net of
NCI
|
$297,370
|
|
10.5%
|
|
$377,724
|
|
14.3%
|
|
|
|
|
|
|
|
|
Other (income)
expense, net
|
9,407
|
|
|
|
(11,409)
|
|
|
Increase in DOJ
Reserve
|
-
|
|
|
|
47,981
|
|
|
Provision for asset
impairment
|
97,631
|
|
|
|
-
|
|
|
Adjusted EBITDA net
of NCI
|
$404,408
|
|
14.3%
|
|
$414,296
|
|
15.6%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$2,822,453
|
|
|
|
$2,648,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
September 30,
2019
|
|
September 30,
2018
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$97,190
|
|
$1.10
|
|
$171,746
|
|
$1.84
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Increase in DOJ
Reserve and related income taxes
|
6,214
|
|
0.07
|
|
36,578
|
|
0.39
|
Impact of ASU
2016-09
|
(1,724)
|
|
(0.02)
|
|
481
|
|
-
|
Provision for asset
impairment, after-tax
|
74,583
|
|
0.84
|
|
-
|
|
-
|
Subtotal
adjustments
|
79,073
|
|
0.89
|
|
37,059
|
|
0.39
|
Adjusted net income
attributable to UHS
|
$176,263
|
|
$1.99
|
|
$208,805
|
|
$2.23
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the Nine Months
ended September 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")
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
% Net
|
|
Nine months
ended
|
|
% Net
|
|
September 30,
2019
|
|
revenues
|
|
September 30,
2018
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$569,678
|
|
|
|
$621,630
|
|
|
Depreciation and amortization
|
362,736
|
|
|
|
334,970
|
|
|
Interest
expense, net
|
123,574
|
|
|
|
115,082
|
|
|
Provision for income taxes
|
165,646
|
|
|
|
192,814
|
|
|
EBITDA net of
NCI
|
$1,221,634
|
|
14.4%
|
|
$1,264,496
|
|
15.8%
|
|
|
|
|
|
|
|
|
Other (income)
expense, net
|
6,176
|
|
|
|
(26,717)
|
|
|
Increase in DOJ
Reserve
|
10,978
|
|
|
|
70,432
|
|
|
Provision for asset
impairment
|
97,631
|
|
|
|
-
|
|
|
Adjusted EBITDA net
of NCI
|
$1,336,419
|
|
15.8%
|
|
$1,308,211
|
|
16.3%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$8,482,012
|
|
|
|
$8,017,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Nine months
ended
|
|
September 30,
2019
|
|
September 30,
2018
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$569,678
|
|
$6.35
|
|
$621,630
|
|
$6.60
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Increase in DOJ
Reserve and related income taxes
|
14,583
|
|
0.16
|
|
53,694
|
|
0.57
|
Impact of ASU
2016-09
|
(12,122)
|
|
(0.14)
|
|
(1,056)
|
|
(0.01)
|
Provision for asset
impairment, after-tax
|
74,583
|
|
0.84
|
|
-
|
|
-
|
Subtotal
adjustments
|
77,044
|
|
0.86
|
|
52,638
|
|
0.56
|
Adjusted net income
attributable to UHS
|
$646,722
|
|
$7.21
|
|
$674,268
|
|
$7.16
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Comprehensive Income
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Nine
months
|
|
ended September
30,
|
|
ended September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net income
|
$100,870
|
|
$174,881
|
|
$579,533
|
|
$634,261
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Unrealized derivative gains (losses) on cash flow hedges
|
0
|
|
(1,924)
|
|
(3,925)
|
|
(345)
|
Foreign
currency translation adjustment
|
(10,089)
|
|
(12,323)
|
|
(19,192)
|
|
(15,480)
|
Other comprehensive
income (loss) before tax
|
(10,089)
|
|
(14,247)
|
|
(23,117)
|
|
(15,825)
|
Income tax expense
(benefit) related to items of other comprehensive income
(loss)
|
174
|
|
(457)
|
|
(676)
|
|
(82)
|
Total other
comprehensive income (loss), net of tax
|
(10,263)
|
|
(13,790)
|
|
(22,441)
|
|
(15,743)
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
90,607
|
|
161,091
|
|
557,092
|
|
618,518
|
Less: Comprehensive
income attributable to noncontrolling interests
|
3,680
|
|
3,135
|
|
9,855
|
|
12,631
|
Comprehensive income
attributable to UHS
|
$86,927
|
|
$157,956
|
|
$547,237
|
|
$605,887
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2019
|
|
|
2018
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
58,905
|
|
$
|
105,220
|
Accounts receivable, net
|
|
|
1,544,077
|
|
|
1,509,909
|
Supplies
|
|
|
156,285
|
|
|
148,206
|
Other current assets
|
|
|
171,360
|
|
|
174,467
|
Total current assets
|
|
|
1,930,627
|
|
|
1,937,802
|
|
|
|
|
|
|
|
Property and
equipment
|
|
|
8,967,340
|
|
|
8,563,455
|
Less: accumulated
depreciation
|
|
|
(4,008,931)
|
|
|
(3,715,515)
|
|
|
|
4,958,409
|
|
|
4,847,940
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
|
|
3,827,867
|
|
|
3,844,628
|
Deferred income taxes
|
|
|
19,199
|
|
|
5,280
|
Right of use assets-operating leases
|
|
|
329,328
|
|
|
0
|
Deferred charges
|
|
|
6,926
|
|
|
8,772
|
Other
|
|
|
522,045
|
|
|
621,058
|
Total
Assets
|
|
$
|
11,594,401
|
|
$
|
11,265,480
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
78,077
|
|
$
|
63,446
|
Accounts payable and accrued liabilities
|
|
|
1,343,922
|
|
|
1,253,714
|
Legal reserves
|
|
|
144,120
|
|
|
129,150
|
Operating lease liabilities
|
|
|
55,080
|
|
|
0
|
Federal and state taxes
|
|
|
570
|
|
|
2,428
|
Total current liabilities
|
|
|
1,621,769
|
|
|
1,448,738
|
|
|
|
|
|
|
|
Other noncurrent
liabilities
|
|
|
338,871
|
|
|
361,809
|
Operating lease
liabilities noncurrent
|
|
|
274,248
|
|
|
0
|
Long-term
debt
|
|
|
3,870,294
|
|
|
3,935,187
|
Deferred income
taxes
|
|
|
21,213
|
|
|
49,661
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
4,061
|
|
|
4,292
|
|
|
|
|
|
|
|
UHS common
stockholders' equity
|
|
|
5,389,215
|
|
|
5,389,262
|
Noncontrolling
interest
|
|
|
74,730
|
|
|
76,531
|
Total equity
|
|
|
5,463,945
|
|
|
5,465,793
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
11,594,401
|
|
$
|
11,265,480
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
Nine
months
|
|
ended September
30,
|
|
2019
|
|
2018
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net income
|
$579,533
|
|
$634,261
|
Adjustments to
reconcile net income to net
|
|
|
|
cash provided by
operating activities:
|
|
|
|
Depreciation &
amortization
|
362,736
|
|
335,002
|
Stock-based
compensation expense
|
52,167
|
|
50,645
|
Gain on sale of assets
and businesses
|
(5,982)
|
|
(2,513)
|
Provision for asset
impairment
|
97,631
|
|
0
|
Changes in assets
& liabilities, net of effects from
|
|
|
|
acquisitions and
dispositions:
|
|
|
|
Accounts
receivable
|
(37,332)
|
|
(74,129)
|
Accrued
interest
|
(2,962)
|
|
(5,808)
|
Accrued and
deferred income taxes
|
(53,714)
|
|
(53,165)
|
Other working
capital accounts
|
90,262
|
|
89,157
|
Other assets and
deferred charges
|
15,237
|
|
(37,133)
|
Other
|
(56,465)
|
|
(3,080)
|
Accrued
insurance expense, net of commercial premiums paid
|
76,245
|
|
69,386
|
Payments made in
settlement of self-insurance claims
|
(68,046)
|
|
(53,223)
|
Net cash provided by operating activities
|
1,049,310
|
|
949,400
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Property
and equipment additions, net of disposals
|
(480,247)
|
|
(521,349)
|
Acquisition of property and businesses
|
0
|
|
(108,016)
|
Inflows
from foreign exchange contracts that hedge our net U.K.
investment
|
90,286
|
|
26,088
|
Proceeds
received from sales of assets and businesses
|
7,497
|
|
13,502
|
Costs
incurred for purchase and implementation of information technology
applications
|
(18,240)
|
|
(25,487)
|
Decrease
in capital reserves of commercial insurance subsidiary
|
0
|
|
100
|
Investment in, and advances to, joint ventures and
other
|
(11,949)
|
|
(13,910)
|
Net cash used in investing activities
|
(412,653)
|
|
(629,072)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Reduction of long-term debt
|
(68,175)
|
|
(99,969)
|
Additional borrowings
|
15,100
|
|
82,400
|
Financing costs
|
0
|
|
(774)
|
Repurchase of common shares
|
(587,976)
|
|
(261,256)
|
Dividends paid
|
(35,556)
|
|
(28,086)
|
Issuance
of common stock
|
8,248
|
|
7,737
|
Profit
distributions to noncontrolling interests
|
(11,887)
|
|
(8,243)
|
Net cash used in financing activities
|
(680,246)
|
|
(308,191)
|
|
|
|
|
Effect
of exchange rate changes on cash, cash equivalents and restricted
cash
|
(1,259)
|
|
(1,742)
|
(Decrease) Increase
in cash, cash equivalents and restricted cash
|
(44,848)
|
|
10,395
|
Cash, cash
equivalents and restricted cash, beginning of period
|
199,685
|
|
167,297
|
Cash, cash
equivalents and restricted cash, end of period
|
$154,837
|
|
$177,692
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
Interest
paid
|
$122,699
|
|
$114,162
|
Income taxes
paid, net of refunds
|
$221,298
|
|
$247,486
|
Noncash
purchases of property and equipment
|
$83,552
|
|
$88,932
|
Right-of-use
assets obtained in exchange for lease obligations
|
$364,453
|
|
$0
|
|
|
|
|
Universal Health
Services, Inc.
|
Supplemental
Statistical Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
%
Change
|
|
|
|
|
|
|
|
Quarter
ended
|
|
9 months
ended
|
|
|
Same
Facility:
|
|
|
|
|
9/30/2019
|
|
9/30/2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Acute Care
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
9.3%
|
|
7.6%
|
|
|
Adjusted
Admissions
|
|
|
|
|
7.4%
|
|
5.8%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
7.0%
|
|
5.5%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
1.6%
|
|
1.5%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
2.0%
|
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Behavioral Health
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
2.1%
|
|
2.6%
|
|
|
Adjusted
Admissions
|
|
|
|
|
0.5%
|
|
1.3%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
0.4%
|
|
0.5%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
2.0%
|
|
1.5%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
2.2%
|
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UHS
Consolidated
|
|
|
Third quarter
ended
|
|
Nine months
ended
|
|
|
|
9/30/2019
|
|
9/30/2018
|
|
9/30/2019
|
|
9/30/2018
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$2,822,453
|
|
$2,648,913
|
|
$8,482,012
|
|
$8,017,782
|
EBITDA net of
NCI
|
|
|
$297,370
|
|
$377,724
|
|
$1,221,634
|
|
$1,264,496
|
EBITDA Margin net of
NCI
|
|
|
10.5%
|
|
14.3%
|
|
14.4%
|
|
15.8%
|
Adjusted EBITDA net
of NCI
|
|
|
$404,408
|
|
$414,296
|
|
$1,336,419
|
|
$1,308,211
|
Adjusted EBITDA
Margin net of NCI
|
|
14.3%
|
|
15.6%
|
|
15.8%
|
|
16.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From
Operations
|
|
|
$425,224
|
|
$342,437
|
|
$1,049,310
|
|
$949,400
|
Days Sales
Outstanding
|
|
|
50
|
|
54
|
|
50
|
|
53
|
Capital
Expenditures
|
|
|
$156,327
|
|
$151,097
|
|
$480,247
|
|
$521,349
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
|
$3,948,371
|
|
$4,026,344
|
UHS' Shareholders
Equity
|
|
|
|
|
|
|
$5,389,215
|
|
$5,363,745
|
Debt / Total
Capitalization
|
|
|
|
|
|
|
42.3%
|
|
42.9%
|
Debt / EBITDA net of
NCI (1)
|
|
|
|
|
|
|
2.50
|
|
2.35
|
Debt / Adjusted
EBITDA net of NCI (1)
|
|
|
|
|
2.21
|
|
2.29
|
Debt / Cash From
Operations (1)
|
|
|
|
|
|
|
2.87
|
|
3.23
|
|
|
|
|
|
|
|
|
|
|
(1) Latest 4
quarters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Acute Care Hospital
Services
|
For the three and
nine months ended
|
September 30, 2019
and 2018
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility
Basis - Acute Care Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,502,383
|
|
100.0%
|
|
$1,375,116
|
|
100.0%
|
|
$4,491,738
|
|
100.0%
|
|
$4,173,618
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
652,804
|
|
43.5%
|
|
596,903
|
|
43.4%
|
|
1,894,713
|
|
42.2%
|
|
1,762,797
|
|
42.2%
|
Other operating
expenses
|
|
343,845
|
|
22.9%
|
|
312,383
|
|
22.7%
|
|
1,015,237
|
|
22.6%
|
|
929,224
|
|
22.3%
|
Supplies
expense
|
|
263,198
|
|
17.5%
|
|
235,272
|
|
17.1%
|
|
776,231
|
|
17.3%
|
|
718,543
|
|
17.2%
|
Depreciation and
amortization
|
|
76,028
|
|
5.1%
|
|
68,647
|
|
5.0%
|
|
225,624
|
|
5.0%
|
|
207,962
|
|
5.0%
|
Lease and rental
expense
|
|
16,168
|
|
1.1%
|
|
14,052
|
|
1.0%
|
|
45,078
|
|
1.0%
|
|
43,043
|
|
1.0%
|
Subtotal-operating
expenses
|
|
1,352,043
|
|
90.0%
|
|
1,227,257
|
|
89.2%
|
|
3,956,883
|
|
88.1%
|
|
3,661,569
|
|
87.7%
|
Income from
operations
|
|
150,340
|
|
10.0%
|
|
147,859
|
|
10.8%
|
|
534,855
|
|
11.9%
|
|
512,049
|
|
12.3%
|
Interest expense,
net
|
|
305
|
|
0.0%
|
|
382
|
|
0.0%
|
|
828
|
|
0.0%
|
|
1,344
|
|
0.0%
|
Other (income)
expense, net
|
|
13
|
|
0.0%
|
|
-
|
|
-
|
|
(32)
|
|
(0.0)%
|
|
(2,498)
|
|
(0.1)%
|
Income before income
taxes
|
|
150,022
|
|
10.0%
|
|
$147,477
|
|
10.7%
|
|
534,059
|
|
11.9%
|
|
$513,203
|
|
12.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Acute Care
Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,528,535
|
|
100.0%
|
|
$1,383,050
|
|
100.0%
|
|
$4,575,088
|
|
100.0%
|
|
$4,232,673
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
653,792
|
|
42.8%
|
|
596,932
|
|
43.2%
|
|
1,897,144
|
|
41.5%
|
|
1,762,826
|
|
41.6%
|
Other operating
expenses
|
|
370,325
|
|
24.2%
|
|
320,317
|
|
23.2%
|
|
1,099,625
|
|
24.0%
|
|
988,279
|
|
23.3%
|
Supplies
expense
|
|
263,462
|
|
17.2%
|
|
235,272
|
|
17.0%
|
|
777,309
|
|
17.0%
|
|
718,543
|
|
17.0%
|
Depreciation and
amortization
|
|
76,318
|
|
5.0%
|
|
68,647
|
|
5.0%
|
|
226,489
|
|
5.0%
|
|
207,962
|
|
4.9%
|
Lease and rental
expense
|
|
16,235
|
|
1.1%
|
|
14,052
|
|
1.0%
|
|
45,270
|
|
1.0%
|
|
43,043
|
|
1.0%
|
Subtotal-operating
expenses
|
|
1,380,132
|
|
90.3%
|
|
1,235,220
|
|
89.3%
|
|
4,045,837
|
|
88.4%
|
|
3,720,653
|
|
87.9%
|
Income from
operations
|
|
148,403
|
|
9.7%
|
|
147,830
|
|
10.7%
|
|
529,251
|
|
11.6%
|
|
512,020
|
|
12.1%
|
Interest expense,
net
|
|
305
|
|
0.0%
|
|
382
|
|
0.0%
|
|
828
|
|
0.0%
|
|
1,344
|
|
0.0%
|
Other (income)
expense, net
|
|
13
|
|
0.0%
|
|
-
|
|
-
|
|
(32)
|
|
(0.0)%
|
|
(2,498)
|
|
(0.1)%
|
Income before income
taxes
|
|
148,085
|
|
9.7%
|
|
$147,448
|
|
10.7%
|
|
528,455
|
|
11.6%
|
|
$513,174
|
|
12.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe that
providing our results on a "Same Facility" basis (which is a
non-GAAP measure), which includes the operating results for
facilities and businesses operated in both the current year and
prior year periods, is helpful to our investors as a measure of our
operating performance. Our Same Facility results also neutralize
(if applicable), the effect of material items that are nonrecurring
or non-operational in nature including items such as, but not
limited to, reserves for various matters, settlements, legal
judgments and lawsuits, cost related to extinguishment of debt,
gains/losses on sales of assets and businesses, impairments of
long-lived and intangible assets and other amounts that may be
reflected in the current or prior year financial statements that
relate to prior periods. Our Same Facility basis results exclude
from net revenues and other operating expenses, provider tax
assessments incurred in each period. However, these provider tax
assessments are included in net revenues and other operating
expenses as reflected in the table under All Acute Care Hospital
Services. The provider tax assessments had no impact on the
income before income taxes as reflected on the above tables since
the amounts offset between net revenues and other operating
expenses. To obtain a complete understanding of our financial
performance, the Same Facility results should be examined in
connection with our net income as determined in accordance with
GAAP and as presented herein and the condensed consolidated
financial statements and notes thereto as contained in our Form
10-K for the year ended December 31, 2018 and Form 10-Q for the
quarter ended June 30, 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
nine months ended
|
September 30, 2019
and 2018
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility -
Behavioral Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,256,549
|
|
100.0%
|
|
$1,230,406
|
|
100.0%
|
|
$3,770,023
|
|
100.0%
|
|
$3,673,717
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
679,995
|
|
54.1%
|
|
651,145
|
|
52.9%
|
|
2,000,128
|
|
53.1%
|
|
1,924,344
|
|
52.4%
|
Other operating
expenses
|
|
238,637
|
|
19.0%
|
|
237,698
|
|
19.3%
|
|
707,624
|
|
18.8%
|
|
701,869
|
|
19.1%
|
Supplies
expense
|
|
50,301
|
|
4.0%
|
|
49,291
|
|
4.0%
|
|
148,418
|
|
3.9%
|
|
146,842
|
|
4.0%
|
Depreciation and
amortization
|
|
40,688
|
|
3.2%
|
|
39,134
|
|
3.2%
|
|
119,655
|
|
3.2%
|
|
113,606
|
|
3.1%
|
Lease and rental
expense
|
|
11,202
|
|
0.9%
|
|
11,296
|
|
0.9%
|
|
33,125
|
|
0.9%
|
|
34,520
|
|
0.9%
|
Subtotal-operating
expenses
|
|
1,020,823
|
|
81.2%
|
|
988,564
|
|
80.3%
|
|
3,008,950
|
|
79.8%
|
|
2,921,181
|
|
79.5%
|
Income from
operations
|
|
235,726
|
|
18.8%
|
|
241,842
|
|
19.7%
|
|
761,073
|
|
20.2%
|
|
752,536
|
|
20.5%
|
Interest expense,
net
|
|
359
|
|
0.0%
|
|
397
|
|
0.0%
|
|
1,103
|
|
0.0%
|
|
1,234
|
|
0.0%
|
Other (income)
expense, net
|
|
1,058
|
|
0.1%
|
|
1,325
|
|
0.1%
|
|
1,058
|
|
0.0%
|
|
1,325
|
|
0.0%
|
Income before income
taxes
|
|
$234,309
|
|
18.6%
|
|
$240,120
|
|
19.5%
|
|
$758,912
|
|
20.1%
|
|
$749,977
|
|
20.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Behavioral
Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2019
|
|
September 30,
2018
|
|
September 30,
2019
|
|
September 30,
2018
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,291,816
|
|
100.0%
|
|
$1,262,472
|
|
100.0%
|
|
$3,898,440
|
|
100.0%
|
|
$3,774,551
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
690,084
|
|
53.4%
|
|
661,240
|
|
52.4%
|
|
2,049,731
|
|
52.6%
|
|
1,955,220
|
|
51.8%
|
Other operating
expenses
|
|
363,328
|
|
28.1%
|
|
262,337
|
|
20.8%
|
|
891,250
|
|
22.9%
|
|
778,698
|
|
20.6%
|
Supplies
expense
|
|
50,692
|
|
3.9%
|
|
49,958
|
|
4.0%
|
|
149,809
|
|
3.8%
|
|
148,965
|
|
3.9%
|
Depreciation and
amortization
|
|
42,436
|
|
3.3%
|
|
40,718
|
|
3.2%
|
|
127,327
|
|
3.3%
|
|
118,948
|
|
3.2%
|
Lease and rental
expense
|
|
11,822
|
|
0.9%
|
|
11,931
|
|
0.9%
|
|
35,185
|
|
0.9%
|
|
36,489
|
|
1.0%
|
Subtotal-operating
expenses
|
|
1,158,362
|
|
89.7%
|
|
1,026,184
|
|
81.3%
|
|
3,253,302
|
|
83.5%
|
|
3,038,320
|
|
80.5%
|
Income from
operations
|
|
133,454
|
|
10.3%
|
|
236,288
|
|
18.7%
|
|
645,138
|
|
16.5%
|
|
736,231
|
|
19.5%
|
Interest expense,
net
|
|
359
|
|
0.0%
|
|
397
|
|
0.0%
|
|
1,103
|
|
0.0%
|
|
1,234
|
|
0.0%
|
Other (income)
expense, net
|
|
(4,924)
|
|
(0.4)%
|
|
1,721
|
|
0.1%
|
|
(4,138)
|
|
(0.1)%
|
|
636
|
|
0.0%
|
Income before income
taxes
|
|
$138,019
|
|
10.7%
|
|
$234,170
|
|
18.5%
|
|
$648,173
|
|
16.6%
|
|
$734,361
|
|
19.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The All Behavioral
Health Care Servicestable summarizes the results of operations
for all our behavioral health care facilities during the periods
presented. These amounts include: (i) our behavioral health
results on a same facility basis, as indicated above; (ii) the
impact of provider tax assessments which increased net revenues and
other operating expenses but had no impact on income before income
taxes, and; (iii) certain other amounts including the results
of facilities acquired or opened during the last twelve months as
well as the results of certain facilities that were closed or
restructured during the past year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the three months
ended
|
September 30, 2019
and 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
9/30/19
|
|
9/30/18
|
|
%
change
|
|
9/30/19
|
|
9/30/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
327
|
|
324
|
|
0.9%
|
Average licensed
beds
|
|
6,387
|
|
6,213
|
|
2.8%
|
|
23,637
|
|
23,612
|
|
0.1%
|
Average available
beds
|
|
6,211
|
|
6,037
|
|
2.9%
|
|
23,536
|
|
23,528
|
|
0.0%
|
Patient
days
|
|
356,914
|
|
336,093
|
|
6.2%
|
|
1,623,465
|
|
1,618,280
|
|
0.3%
|
Average daily
census
|
|
3,879.5
|
|
3,653.2
|
|
6.2%
|
|
17,646.4
|
|
17,590.0
|
|
0.3%
|
Occupancy-licensed
beds
|
|
60.7%
|
|
58.8%
|
|
3.3%
|
|
74.7%
|
|
74.5%
|
|
0.2%
|
Occupancy-available
beds
|
|
62.5%
|
|
60.5%
|
|
3.2%
|
|
75.0%
|
|
74.8%
|
|
0.3%
|
Admissions
|
|
79,285
|
|
74,357
|
|
6.6%
|
|
122,709
|
|
122,212
|
|
0.4%
|
Length of
stay
|
|
4.5
|
|
4.5
|
|
-0.4%
|
|
13.2
|
|
13.2
|
|
-0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$7,004,832
|
|
$6,009,303
|
|
16.6%
|
|
$2,536,504
|
|
$2,459,078
|
|
3.1%
|
Outpatient
revenue
|
|
4,477,277
|
|
3,694,389
|
|
21.2%
|
|
257,690
|
|
242,167
|
|
6.4%
|
Total patient
revenue
|
|
11,482,109
|
|
9,703,692
|
|
18.3%
|
|
2,794,194
|
|
2,701,245
|
|
3.4%
|
Other
revenue
|
|
114,026
|
|
99,094
|
|
15.1%
|
|
57,602
|
|
51,096
|
|
12.7%
|
Gross hospital
revenue
|
|
11,596,135
|
|
9,802,786
|
|
18.3%
|
|
2,851,796
|
|
2,752,341
|
|
3.6%
|
Total
deductions
|
|
10,067,600
|
|
8,419,736
|
|
19.6%
|
|
1,559,980
|
|
1,489,869
|
|
4.7%
|
Net hospital
revenue
|
|
$1,528,535
|
|
$1,383,050
|
|
10.5%
|
|
$1,291,816
|
|
$1,262,472
|
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
9/30/19
|
|
9/30/18
|
|
%
change
|
|
9/30/19
|
|
9/30/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
313
|
|
313
|
|
0.0%
|
Average licensed
beds
|
|
6,387
|
|
6,213
|
|
2.8%
|
|
23,096
|
|
22,944
|
|
0.7%
|
Average available
beds
|
|
6,211
|
|
6,037
|
|
2.9%
|
|
22,995
|
|
22,860
|
|
0.6%
|
Patient
days
|
|
356,914
|
|
336,093
|
|
6.2%
|
|
1,593,992
|
|
1,593,458
|
|
0.0%
|
Average daily
census
|
|
3,879.5
|
|
3,653.2
|
|
6.2%
|
|
17,326.0
|
|
17,320.2
|
|
0.0%
|
Occupancy-licensed
beds
|
|
60.7%
|
|
58.8%
|
|
3.3%
|
|
75.0%
|
|
75.5%
|
|
-0.6%
|
Occupancy-available
beds
|
|
62.5%
|
|
60.5%
|
|
3.2%
|
|
75.3%
|
|
75.8%
|
|
-0.6%
|
Admissions
|
|
79,285
|
|
74,357
|
|
6.6%
|
|
121,290
|
|
121,124
|
|
0.1%
|
Length of
stay
|
|
4.5
|
|
4.5
|
|
-0.4%
|
|
13.1
|
|
13.2
|
|
-0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the nine months
ended
|
September 30, 2019
and 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
9/30/19
|
|
9/30/18
|
|
%
change
|
|
9/30/19
|
|
9/30/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
327
|
|
324
|
|
0.9%
|
Average licensed
beds
|
|
6,376
|
|
6,196
|
|
2.9%
|
|
23,792
|
|
23,371
|
|
1.8%
|
Average available
beds
|
|
6,200
|
|
6,020
|
|
3.0%
|
|
23,692
|
|
23,288
|
|
1.7%
|
Patient
days
|
|
1,084,534
|
|
1,028,589
|
|
5.4%
|
|
4,874,801
|
|
4,806,253
|
|
1.4%
|
Average daily
census
|
|
3,972.6
|
|
3,767.8
|
|
5.4%
|
|
17,856.4
|
|
17,605.3
|
|
1.4%
|
Occupancy-licensed
beds
|
|
62.3%
|
|
60.8%
|
|
2.5%
|
|
75.1%
|
|
75.3%
|
|
-0.4%
|
Occupancy-available
beds
|
|
64.1%
|
|
62.6%
|
|
2.4%
|
|
75.4%
|
|
75.6%
|
|
-0.3%
|
Admissions
|
|
238,827
|
|
225,997
|
|
5.7%
|
|
368,103
|
|
362,661
|
|
1.5%
|
Length of
stay
|
|
4.5
|
|
4.6
|
|
-0.2%
|
|
13.2
|
|
13.3
|
|
-0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$21,220,471
|
|
$18,535,079
|
|
14.5%
|
|
$7,568,129
|
|
$7,310,230
|
|
3.5%
|
Outpatient
revenue
|
|
13,137,199
|
|
11,169,376
|
|
17.6%
|
|
792,929
|
|
764,885
|
|
3.7%
|
Total patient
revenue
|
|
34,357,670
|
|
29,704,455
|
|
15.7%
|
|
8,361,058
|
|
8,075,115
|
|
3.5%
|
Other
revenue
|
|
337,369
|
|
297,452
|
|
13.4%
|
|
168,341
|
|
152,274
|
|
10.6%
|
Gross hospital
revenue
|
|
34,695,039
|
|
30,001,907
|
|
15.6%
|
|
8,529,399
|
|
8,227,389
|
|
3.7%
|
Total
deductions
|
|
30,119,951
|
|
25,769,234
|
|
16.9%
|
|
4,630,959
|
|
4,452,838
|
|
4.0%
|
Net hospital
revenue
|
|
$4,575,088
|
|
$4,232,673
|
|
8.1%
|
|
$3,898,440
|
|
$3,774,551
|
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
9/30/19
|
|
9/30/18
|
|
%
change
|
|
9/30/19
|
|
9/30/18
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
313
|
|
313
|
|
0.0%
|
Average licensed
beds
|
|
6,376
|
|
6,196
|
|
2.9%
|
|
22,927
|
|
22,713
|
|
0.9%
|
Average available
beds
|
|
6,200
|
|
6,020
|
|
3.0%
|
|
22,827
|
|
22,630
|
|
0.9%
|
Patient
days
|
|
1,084,534
|
|
1,028,589
|
|
5.4%
|
|
4,750,036
|
|
4,731,145
|
|
0.4%
|
Average daily
census
|
|
3,972.6
|
|
3,767.8
|
|
5.4%
|
|
17,399.4
|
|
17,330.2
|
|
0.4%
|
Occupancy-licensed
beds
|
|
62.3%
|
|
60.8%
|
|
2.5%
|
|
75.9%
|
|
76.3%
|
|
-0.5%
|
Occupancy-available
beds
|
|
64.1%
|
|
62.6%
|
|
2.4%
|
|
76.2%
|
|
76.6%
|
|
-0.5%
|
Admissions
|
|
238,827
|
|
225,997
|
|
5.7%
|
|
363,465
|
|
359,200
|
|
1.2%
|
Length of
stay
|
|
4.5
|
|
4.6
|
|
-0.2%
|
|
13.1
|
|
13.2
|
|
-0.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/universal-health-services-inc-reports-2019-third-quarter-financial-results-and-revises-2019-full-year-earnings-guidance-range-300945191.html
SOURCE Universal Health Services, Inc.