KING OF PRUSSIA, Pa.,
Feb. 28, 2018 /PRNewswire/
-- Universal Health Services, Inc. (NYSE: UHS) announced today
that its reported net income attributable to UHS was $219.6 million, or $2.31 per diluted share, during the fourth
quarter of 2017 as compared to $174.2
million, or $1.78 per diluted
share, during the comparable quarter of 2016. Net revenues
increased 6.7% to $2.64 billion
during the fourth quarter of 2017 as compared to $2.48 billion during the fourth quarter of
2016.
For the three-month period ended December
31, 2017, our adjusted net income attributable to UHS, as
calculated on the attached Schedule of Non-GAAP Supplemental
Information ("Supplemental Schedule"), was $189.6 million, or $2.00 per diluted share, as compared to
$176.0 million, or $1.80 per diluted share, during the fourth
quarter of 2016.
As reflected on the Supplemental Schedule, included in our
reported results during the fourth quarter of 2017, is a net
aggregate favorable after-tax impact of $30.0 million, or $.31 per diluted share, consisting of:
- a favorable after-tax impact of $30.0
million, or $.32 per diluted
share, resulting from a reduction in our net deferred income tax
liability recorded in connection with the Tax Cuts and Jobs Act of
2017 (the "TCJA-17") which reduced the U.S. federal corporate tax
rate to 21% from 35%, effective January 1,
2018;
- a favorable after-tax impact of $13.5
million, or $.14 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;
- an unfavorable after-tax impact of $11.3
million, or $.12 per diluted
share, due to the one-time repatriation tax incurred pursuant to
the TCJA-17 (incurred in connection with our behavioral health care
facilities located in the U.K. and Puerto
Rico), and;
- an unfavorable after-tax impact of $2.3
million, or $.03 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.
As calculated on the attached Supplemental Schedule, our
earnings before interest, taxes, depreciation & amortization
("EBITDA"), increased 7.1% to $447.0
million during the fourth quarter of 2017 as compared to
$417.1 million during the fourth
quarter of 2016.
Consolidated Results of Operations, As Reported and As
Adjusted – Twelve-month periods ended December 31, 2017 and 2016:
Reported net income attributable to UHS was $752.3 million, or $7.81 per diluted share, during the full year of
2017 as compared to $702.4 million,
or $7.14 per diluted share, during
2016.
Net revenues increased 6.6% to $10.41
billion during 2017 as compared to $9.77 billion during 2016. As calculated on the
attached Supplemental Schedule, our EBITDA increased 3.4% to
$1.71 billion during 2017 as compared
to $1.65 billion during 2016.
As reflected on the Supplemental Schedule, included in our
reported results during the full year of 2017, is a net aggregate
favorable after-tax impact of $26.8
million, or $.28 per diluted
share, consisting of:
- a favorable after-tax impact of $30.0
million, or $.32 per diluted
share, resulting from a reduction in our net deferred income tax
liability resulting from lower federal income tax rates beginning
January 1, 2018 pursuant to the
TCJA-17;
- a favorable after-tax impact of $22.1
million, or $.23 per diluted
share, resulting from our January 1,
2017 adoption of ASU 2016-09, as discussed below;
- an unfavorable after-tax impact of $11.3
million, or $.12 per diluted
share, due to the one-time repatriation tax incurred pursuant to
the TCJA of 2017, and;
- an unfavorable after-tax impact of $14.0
million, or $.15 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 twelve-month periods ended
December 31, 2017 and 2016:
During the fourth quarter of 2017, at our acute care hospitals
owned during both periods ("same facility basis"), adjusted
admissions (adjusted for outpatient activity) increased 7.3% and
adjusted patient days increased 5.2%, as compared to the fourth
quarter of 2016. Net revenues from our acute care services
increased 6.5% during the fourth quarter of 2017 as compared to the
comparable quarter of the prior year. At these facilities, net
revenue per adjusted admission decreased 0.1% while net revenue per
adjusted patient day increased 1.9% during the fourth quarter of
2017 as compared to the comparable quarter of 2016.
During the twelve-month period ended December 31, 2017, at our acute care hospitals on
a same facility basis, adjusted admissions increased 5.5% and
adjusted patient days increased 2.8%, as compared to the full year
of 2016. Net revenues from our acute care services increased 4.7%
during the full year of 2017 as compared to 2016. At these
facilities, net revenue per adjusted admission decreased 0.3% while
net revenue per adjusted patient day increased 2.4% during 2017 as
compared to 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 $406 million and $399
million during the three-month periods ended December 31, 2017 and 2016, respectively, and
$1.77 billion and $1.45 billion during the twelve-month periods
ended December 31, 2017 and 2016,
respectively. The provision for doubtful accounts at our acute care
hospitals amounted to approximately $182
million and $136 million
during the three-month periods ended December 31, 2017 and 2016, respectively, and
$756 million and $628 million during the twelve-month periods
ended December 31, 2017 and 2016,
respectively.
Behavioral Health Care Services – Three and twelve-month
periods ended December 31, 2017 and
2016:
During the fourth quarter of 2017, at our behavioral health care
facilities on a same facility basis, adjusted admissions increased
2.5% while adjusted patient days decreased 0.7% as compared to the
fourth quarter of 2016. At these facilities, net revenue per
adjusted admission decreased 0.3% while net revenue per adjusted
patient day increased 2.9% during the fourth quarter of 2017 as
compared to the comparable quarter in 2016. On a same facility
basis, our behavioral health care services' net revenues increased
1.6% during the fourth quarter of 2017 as compared to the fourth
quarter of 2016.
During the twelve-month period ended December 31, 2017, at our behavioral health care
facilities on a same facility basis, adjusted admissions increased
2.4% while adjusted patient days increased 0.2% as compared to the
full year of 2016. At these facilities, net revenue per adjusted
admission decreased 0.4% while net revenue per adjusted patient day
increased 1.9% during the full year of 2017 as compared to 2016. On
a same facility basis, our behavioral health care services' net
revenues increased 1.7% during 2017 as compared to
2016.
Net Cash Provided by Operating Activities and Share
Repurchase Program:
For the twelve months ended December 31,
2017, our net cash provided by operating activities was
$1.18 billion as compared to
$1.33 billion generated during the
full year of 2016. The $151 million
decrease was due to: (i) a $144
million unfavorable change in cash flows from foreign
currency forward exchange contracts related to our investments in
the U.K; (ii) a $90 million
unfavorable change in other working capital accounts resulting
primarily from changes in accounts payable and accrued expenses due
to timing of disbursements, partially offset by; (iii) $83 million of other net favorable changes
including a $63 million favorable
change in accounts receivable.
In November of 2017, our Board of Directors authorized a
$400 million increase to our stock
repurchase program, which increased the aggregate authorization to
$1.2 billion from the previous
$800 million authorization approved
during 2016 and 2014. Pursuant to this program, we may
purchase shares of our Class B Common Stock, from time to time as
conditions allow, on the open market or in negotiated private
transactions.
In conjunction with this program, during the fourth quarter of
2017, we have repurchased approximately 1.0 million shares at an
aggregate cost of $100.8 million
(approximately $100 per share).
During the twelve months of 2017, we have repurchased approximately
2.96 million shares at an aggregate cost of $322.2 million (approximately $109 per share). Since inception of the program
through December 31, 2017, we have
repurchased approximately 7.35 million shares at an aggregate cost
of $836.3 million (approximately
$114 per share).
2018 Full Year Guidance Range:
Reflected below is our 2018 guidance range for consolidated net
revenues, earnings before interest, taxes, depreciation &
amortization ("EBITDA"), earnings per diluted share ("EPS-diluted")
and capital expenditures. EBITDA is a non-GAAP financial
measure and should be examined in connection with net income
determined in accordance with GAAP as presented in the consolidated
financial statements and notes thereto in this report or in our
filings with the Securities and Exchange Commission including our
Report on Form 10-K for the year ended December 31, 2017. Please see the Supplemental
Non-GAAP Disclosures - 2018 Operating Results Forecast schedule
as included herein for additional information and a reconciliation
to the financial forecasts as computed in accordance with
GAAP.
|
For the Year
Ended
|
|
December 31,
2018
|
|
Low
|
High
|
Net
revenues
|
$10.923
billion
|
$11.063
billion
|
EBITDA
|
$1.758
billion
|
$1.837
billion
|
Adjusted
EPS-diluted
|
$9.25 per
share
|
$9.90 per
share
|
Capital
expenditures
|
$600
million
|
$625
million
|
Our 2018 guidance contains a number of assumptions including,
but not limited to, the following:
- This guidance excludes the impact of future items, if
applicable, that are nonrecurring or non-operational in nature
including items such as, but not limited to, the impact of
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 that differ from included assumptions 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.
- Our net revenues are estimated to be approximately $10.923 billion to $11.063
billion representing an increase of approximately 5% to 6%
over our 2017 net revenues of approximately $10.410 billion.
- This adjusted EPS-diluted guidance range represents an increase
of approximately 23% to 31% over the adjusted net income
attributable to UHS of $7.53 per
diluted share for the year ended December
31, 2017, as calculated on the attached Supplemental
Schedule.
- This adjusted EPS-diluted guidance range includes the estimated
favorable impact on our 2018 provision for income taxes and net
income attributable to UHS, resulting from the TCJA-17, amounting
to approximately $142 million to
$152 million, or $1.52 to $1.63 per
diluted share.
- This guidance range, like our adjusted earnings for 2017 as
discussed above, excludes 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, as discussed below.
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 twelve-month periods ended December 31, 2017, we recorded reductions to our
provision for income taxes of $13.5
million and $22.1 million,
respectively, which resulted in a corresponding increases in our
net income attributable to UHS of $13.5
million, or $.14 per diluted
share, during the fourth quarter of 2017 and $22.1 million, or $.23 per diluted share, during the full year 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
March 1, 2018. 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:
One of the nation's largest and most respected hospital
companies, Universal Health Services, Inc. ("UHS") has built an
impressive record of achievement and performance. Growing steadily
since its inception into an esteemed Fortune 500 corporation, UHS
today has annual revenue exceeding $10
billion. In 2017, UHS was recognized as one of the World's
Most Admired Companies by Fortune; ranked #276 on the
Fortune 500, and listed #275 in Forbes inaugural ranking of
America's Top 500 Public Companies.
Our operating philosophy is as effective today as it was 40
years ago, enabling us to provide compassionate care to our
patients and their loved ones: Build or acquire high quality
hospitals in rapidly growing markets, invest in the people and
equipment needed to allow each facility to thrive, and become the
leading healthcare provider in each community we serve.
Headquartered in King of Prussia,
PA, UHS has more than 83,000 employees and through its
subsidiaries operates 326 inpatient acute care hospitals and
behavioral health facilities and 32 outpatient and other facilities
located in 37 states, Washington,
D.C., 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,
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 operating income, operating margin, adjusted net
income attributable to UHS, adjusted net income attributable to UHS
per diluted share and 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 related to the implementation
of EHR applications at our acute care hospitals, the impact on our
2017 provision for income taxes and net income attributable to UHS
resulting from the TCJA-17, the impact on our provision for income
taxes and net income attributable to UHS resulting from our
adoption of ASU 2016-09, and other potential items that are
nonrecurring or non-operational in nature including, but not
limited to, costs related to 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
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, 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.
(more)
Universal Health
Services, Inc.
|
Consolidated
Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Twelve
months
|
|
ended December
31,
|
|
ended December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net revenues before
provision for doubtful accounts
|
$2,849,971
|
|
$2,638,436
|
|
$11,278,942
|
|
$10,507,788
|
Less:
Provision for doubtful accounts
|
207,184
|
|
162,751
|
|
869,077
|
|
741,578
|
Net
revenues
|
2,642,787
|
|
2,475,685
|
|
10,409,865
|
|
9,766,210
|
|
|
|
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
1,254,851
|
|
1,156,729
|
|
4,980,637
|
|
4,585,530
|
Other
operating expenses
|
624,986
|
|
614,490
|
|
2,493,062
|
|
2,359,339
|
Supplies
expense
|
284,854
|
|
263,872
|
|
1,105,096
|
|
1,031,337
|
Depreciation and amortization
|
113,638
|
|
107,436
|
|
447,765
|
|
416,608
|
Lease
and rental expense
|
25,714
|
|
24,267
|
|
103,127
|
|
97,324
|
Electronic health records incentive income
|
0
|
|
(5,339)
|
|
0
|
|
(5,339)
|
|
2,304,043
|
|
2,161,455
|
|
9,129,687
|
|
8,484,799
|
|
|
|
|
|
|
|
|
Income from
operations
|
338,744
|
|
314,230
|
|
1,280,178
|
|
1,281,411
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
36,786
|
|
32,882
|
|
145,169
|
|
125,053
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
301,958
|
|
281,348
|
|
1,135,009
|
|
1,156,358
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
76,923
|
|
102,610
|
|
363,697
|
|
409,187
|
|
|
|
|
|
|
|
|
Net income
|
225,035
|
|
178,738
|
|
771,312
|
|
747,171
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to
|
|
|
|
|
|
|
|
noncontrolling
interests
|
5,426
|
|
4,530
|
|
19,009
|
|
44,762
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$219,609
|
|
$174,208
|
|
$752,303
|
|
$702,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS (a)
|
$2.32
|
|
$1.80
|
|
$7.86
|
|
$7.22
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS (a)
|
$2.31
|
|
$1.78
|
|
$7.81
|
|
$7.14
|
Universal Health
Services, Inc.
|
Footnotes to
Consolidated Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Twelve
months
|
(a) Earnings per
share calculation:
|
ended December
31,
|
|
ended December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Basic and
diluted:
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$219,609
|
|
$174,208
|
|
$752,303
|
|
$702,409
|
Less: Net income
attributable to unvested restricted share grants
|
(105)
|
|
(72)
|
|
(362)
|
|
(314)
|
Net income
attributable to UHS - basic and diluted
|
$219,504
|
|
$174,136
|
|
$751,941
|
|
$702,095
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares - basic
|
94,530
|
|
96,998
|
|
95,652
|
|
97,208
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS:
|
$2.32
|
|
$1.80
|
|
$7.86
|
|
$7.22
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
94,530
|
|
96,998
|
|
95,652
|
|
97,208
|
Add: Other share
equivalents
|
379
|
|
917
|
|
673
|
|
1,172
|
Weighted average
number of common shares and equiv. - diluted
|
94,909
|
|
97,915
|
|
96,325
|
|
98,380
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS:
|
$2.31
|
|
$1.78
|
|
$7.81
|
|
$7.14
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the Three Months
ended December 31, 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
|
|
December 31,
2017
|
|
revenues
|
|
December 31,
2016
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$219,609
|
|
|
|
$174,208
|
|
|
Depreciation and amortization
|
113,638
|
|
|
|
107,436
|
|
|
Interest
expense, net
|
36,786
|
|
|
|
32,882
|
|
|
Provision for income taxes
|
76,923
|
|
|
|
102,610
|
|
|
EBITDA
|
$446,956
|
|
16.9%
|
|
$417,136
|
|
16.8%
|
EHR-related net
income attributable to
noncontrolling interests, pre-tax
|
(29)
|
|
|
|
(128)
|
|
|
Adjusted
EBITDA
|
$446,927
|
|
16.9%
|
|
$417,008
|
|
16.8%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$2,642,787
|
|
|
|
$2,475,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$219,609
|
|
$2.31
|
|
$174,208
|
|
$1.78
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Impact of ASU
2016-09
|
(13,477)
|
|
(0.14)
|
|
-
|
|
-
|
After-tax impact of
EHR-related items
|
2,255
|
|
0.03
|
|
1,770
|
|
0.02
|
Impact of
TCJA-17-Deferred tax
|
(30,000)
|
|
(0.32)
|
|
-
|
|
-
|
Impact of
TCJA-17-Repatriation tax
|
11,250
|
|
0.12
|
|
-
|
|
-
|
Subtotal
|
(29,972)
|
|
(0.31)
|
|
1,770
|
|
0.02
|
Adjusted net income
attributable to UHS
|
$189,637
|
|
$2.00
|
|
$175,978
|
|
$1.80
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the Twelve Months
ended December 31, 2017 and 2016
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA")
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
% Net
|
|
Twelve months
ended
|
|
% Net
|
|
December 31,
2017
|
|
revenues
|
|
December 31,
2016
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$752,303
|
|
|
|
$702,409
|
|
|
Depreciation and amortization
|
447,765
|
|
|
|
416,608
|
|
|
Interest
expense, net
|
145,169
|
|
|
|
125,053
|
|
|
Provision for income taxes
|
363,697
|
|
|
|
409,187
|
|
|
EBITDA
|
$1,708,934
|
|
16.4%
|
|
$1,653,257
|
|
16.9%
|
EHR-related net
income attributable to
noncontrolling interests, pre-tax
|
(229)
|
|
|
|
(1,746)
|
|
|
Adjusted
EBITDA
|
$1,708,705
|
|
16.4%
|
|
$1,651,511
|
|
16.9%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$10,409,865
|
|
|
|
$9,766,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
Twelve months
ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$752,303
|
|
$7.81
|
|
$702,409
|
|
$7.14
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Impact of ASU
2016-09
|
(22,096)
|
|
(0.23)
|
|
-
|
|
-
|
After-tax impact of
EHR-related items
|
14,002
|
|
0.15
|
|
17,830
|
|
0.18
|
Impact of
TCJA-17-Deferred tax
|
(30,000)
|
|
(0.32)
|
|
-
|
|
-
|
Impact of
TCJA-17-Repatriation tax
|
11,250
|
|
0.12
|
|
-
|
|
-
|
Subtotal
|
(26,844)
|
|
(0.28)
|
|
17,830
|
|
0.18
|
Adjusted net income
attributable to UHS
|
$725,459
|
|
$7.53
|
|
$720,239
|
|
$7.32
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Comprehensive Income
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Twelve
months
|
|
ended December
31,
|
|
ended December
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Net income
|
$225,035
|
|
$178,738
|
|
$771,312
|
|
$747,171
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Unrealized derivative gains on cash flow hedges
|
3,132
|
|
13,082
|
|
6,679
|
|
1,438
|
Amortization of terminated hedge
|
0
|
|
0
|
|
0
|
|
(167)
|
Unrealized loss on marketable security
|
(3,814)
|
|
(1,474)
|
|
(2,169)
|
|
(2,229)
|
Minimum
pension liability
|
4,070
|
|
13,356
|
|
4,070
|
|
13,356
|
Foreign
currency translation adjustment
|
16,746
|
|
(888)
|
|
26,678
|
|
(10,038)
|
Other comprehensive
income before tax
|
20,134
|
|
24,076
|
|
35,258
|
|
2,360
|
Income tax expense
related to items of other comprehensive income
|
729
|
|
9,329
|
|
2,664
|
|
4,648
|
Total other
comprehensive income (loss), net of tax
|
19,405
|
|
14,747
|
|
32,594
|
|
(2,288)
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
244,440
|
|
193,485
|
|
803,906
|
|
744,883
|
Less: Comprehensive
income attributable to noncontrolling interests
|
5,426
|
|
4,530
|
|
19,009
|
|
44,762
|
Comprehensive income
attributable to UHS
|
$239,014
|
|
$188,955
|
|
$784,897
|
|
$700,121
|
Universal Health
Services, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
74,423
|
|
$
|
33,747
|
Accounts receivable, net
|
|
|
1,500,898
|
|
|
1,439,553
|
Supplies
|
|
|
136,177
|
|
|
125,365
|
Other current assets
|
|
|
86,504
|
|
|
82,706
|
Total current assets
|
|
|
1,798,002
|
|
|
1,681,371
|
|
|
|
|
|
|
|
Property and
equipment
|
|
|
7,921,126
|
|
|
7,314,437
|
Less: accumulated
depreciation
|
|
|
(3,349,289)
|
|
|
(2,983,481)
|
|
|
|
4,571,837
|
|
|
4,330,956
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
|
|
3,825,157
|
|
|
3,784,106
|
Deferred charges
|
|
|
9,787
|
|
|
13,520
|
Deferred income taxes
|
|
|
3,007
|
|
|
1,234
|
Other
|
|
|
554,038
|
|
|
506,615
|
Total
Assets
|
|
$
|
10,761,828
|
|
$
|
10,317,802
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
545,619
|
|
$
|
105,895
|
Accounts payable and accrued liabilities
|
|
|
1,284,081
|
|
|
1,209,329
|
Federal and state taxes
|
|
|
18,334
|
|
|
2,149
|
Total current liabilities
|
|
|
1,848,034
|
|
|
1,317,373
|
|
|
|
|
|
|
|
Other noncurrent
liabilities
|
|
|
306,304
|
|
|
275,167
|
Long-term
debt
|
|
|
3,494,390
|
|
|
4,030,230
|
Deferred income
taxes
|
|
|
54,962
|
|
|
88,119
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
6,702
|
|
|
9,319
|
|
|
|
|
|
|
|
UHS common
stockholders' equity
|
|
|
4,989,514
|
|
|
4,533,220
|
Noncontrolling
interest
|
|
|
61,922
|
|
|
64,374
|
Total equity
|
|
|
5,051,436
|
|
|
4,597,594
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
10,761,828
|
|
$
|
10,317,802
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
Twelve
months
|
|
ended December
31,
|
|
2017
|
|
2016
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$771,312
|
|
$747,171
|
Adjustments
to reconcile net income to net
|
|
|
|
cash
provided by operating activities:
|
|
|
|
Depreciation &
amortization
|
447,883
|
|
416,608
|
Stock-based compensation
expense
|
56,738
|
|
48,109
|
Changes in
assets & liabilities, net of effects from
|
|
|
|
acquisitions and
dispositions:
|
|
|
|
Accounts
receivable
|
(24,719)
|
|
(87,881)
|
Accrued
interest
|
705
|
|
9,766
|
Accrued
and deferred income taxes
|
(6,405)
|
|
22,068
|
Other
working capital accounts
|
(15,165)
|
|
74,489
|
Other
assets and deferred charges
|
(28,607)
|
|
(25,671)
|
Other
|
(42,564)
|
|
81,139
|
Excess
income tax benefits related to stock-based compensation
|
0
|
|
45,219
|
Accrued
insurance expense, net of commercial premiums paid
|
102,595
|
|
84,638
|
Payments
made in settlement of self-insurance claims
|
(79,192)
|
|
(81,962)
|
Net cash provided by operating activities
|
1,182,581
|
|
1,333,693
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Property
and equipment additions, net of disposals
|
(557,506)
|
|
(519,939)
|
Acquisition of property and businesses
|
(22,878)
|
|
(613,803)
|
Proceeds
received from sales of assets and businesses
|
108
|
|
0
|
Costs
incurred for purchase and implementation of information technology
application
|
(29,047)
|
|
(21,475)
|
Increase
in capital reserves of commercial insurance subsidiary
|
(7,100)
|
|
(32,000)
|
Investment in, and advances to, joint venture
|
(7,976)
|
|
0
|
Net cash used in investing activities
|
(624,399)
|
|
(1,187,217)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Reduction of long-term debt
|
(143,106)
|
|
(459,183)
|
Additional borrowings
|
41,100
|
|
1,170,800
|
Acquisition of noncontrolling interests in majority owned
businesses
|
0
|
|
(418,000)
|
Financing costs
|
(76)
|
|
(12,449)
|
Repurchase of common shares
|
(364,401)
|
|
(353,380)
|
Dividends paid
|
(38,211)
|
|
(38,875)
|
Issuance
of common stock
|
10,254
|
|
9,503
|
Profit
distributions to noncontrolling interests
|
(24,713)
|
|
(69,583)
|
Net cash used in financing activities
|
(519,153)
|
|
(171,167)
|
|
|
|
|
Effect
of exchange rate changes on cash and cash equivalents
|
1,647
|
|
(2,790)
|
Increase (decrease)
in cash and cash equivalents
|
40,676
|
|
(27,481)
|
Cash and cash
equivalents, beginning of period
|
33,747
|
|
61,228
|
Cash and cash
equivalents, end of period
|
$74,423
|
|
$33,747
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
Interest
paid
|
$135,533
|
|
$107,079
|
|
|
|
|
Income taxes
paid, net of refunds
|
$370,855
|
|
$344,611
|
|
|
|
|
Noncash
purchases of property and equipment
|
$82,496
|
|
$65,702
|
Universal Health
Services, Inc.
|
Supplemental
Statistical Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
%
Change
|
|
|
|
|
|
|
|
Quarter
ended
|
|
12 months
ended
|
|
|
Same
Facility:
|
|
|
|
|
12/31/2017
|
|
12/31/2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Acute Care
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
6.5%
|
|
4.7%
|
|
|
Adjusted
Admissions
|
|
|
|
|
7.3%
|
|
5.5%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
5.2%
|
|
2.8%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
-0.1%
|
|
-0.3%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
1.9%
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Behavioral Health
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
1.6%
|
|
1.7%
|
|
|
Adjusted
Admissions
|
|
|
|
|
2.5%
|
|
2.4%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
-0.7%
|
|
0.2%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
-0.3%
|
|
-0.4%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
2.9%
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UHS
Consolidated
|
|
|
Fourth quarter
ended
|
|
Twelve months
ended
|
|
|
|
12/31/2017
|
|
12/31/2016
|
|
12/31/2017
|
|
12/31/2016
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$2,642,787
|
|
$2,475,685
|
|
$10,409,865
|
|
$9,766,210
|
EBITDA (1)
|
|
|
$446,956
|
|
$417,136
|
|
$1,708,934
|
|
$1,653,257
|
EBITDA Margin
(1)
|
|
|
16.9%
|
|
16.8%
|
|
16.4%
|
|
16.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From
Operations
|
|
|
$304,316
|
|
$197,181
|
|
$1,182,581
|
|
$1,333,693
|
Days Sales
Outstanding
|
|
|
52
|
|
52
|
|
53
|
|
53
|
Capital
Expenditures
|
|
|
$138,813
|
|
$123,776
|
|
$557,506
|
|
$519,939
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
|
$4,040,009
|
|
$4,136,125
|
UHS' Shareholders
Equity
|
|
|
|
|
|
|
$4,989,514
|
|
$4,533,220
|
Debt / Total
Capitalization
|
|
|
|
|
|
|
44.7%
|
|
47.7%
|
Debt / EBITDA
(2)
|
|
|
|
|
|
|
2.36
|
|
2.50
|
Debt / Cash From
Operations (2)
|
|
|
|
|
|
3.42
|
|
3.10
|
|
|
|
|
|
|
|
|
|
|
(1) Net of
Minority Interest
|
|
|
|
|
|
|
|
|
|
(2) Latest 4
quarters
|
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Acute Care Hospital
Services
|
For the three and
twelve months ended
|
December 31, 2017 and
2016
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility
Basis - Acute Care Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Twelve months
ended
|
|
Twelve months
ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues before
provision for doubtful accounts
|
|
$1,551,711
|
|
|
|
$1,424,468
|
|
|
|
$5,983,425
|
|
|
|
$5,649,163
|
|
|
Less: Provision for
doubtful accounts
|
|
180,051
|
|
|
|
136,271
|
|
|
|
728,438
|
|
|
|
627,827
|
|
|
Net
revenues
|
|
1,371,660
|
|
100.0%
|
|
1,288,197
|
|
100.0%
|
|
5,254,987
|
|
100.0%
|
|
5,021,336
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
563,616
|
|
41.1%
|
|
535,777
|
|
41.6%
|
|
2,187,390
|
|
41.6%
|
|
2,083,357
|
|
41.5%
|
Other operating
expenses
|
|
300,372
|
|
21.9%
|
|
318,555
|
|
24.7%
|
|
1,225,494
|
|
23.3%
|
|
1,215,144
|
|
24.2%
|
Supplies
expense
|
|
232,611
|
|
17.0%
|
|
215,141
|
|
16.7%
|
|
886,829
|
|
16.9%
|
|
836,399
|
|
16.7%
|
Depreciation and
amortization
|
|
67,214
|
|
4.9%
|
|
62,803
|
|
4.9%
|
|
252,365
|
|
4.8%
|
|
237,658
|
|
4.7%
|
Lease and rental
expense
|
|
14,051
|
|
1.0%
|
|
13,093
|
|
1.0%
|
|
55,915
|
|
1.1%
|
|
52,582
|
|
1.0%
|
EHR incentive
income
|
|
0
|
|
—
|
|
0
|
|
—
|
|
0
|
|
—
|
|
0
|
|
—
|
Subtotal-operating
expenses
|
|
1,177,864
|
|
85.9%
|
|
1,145,369
|
|
88.9%
|
|
4,607,993
|
|
87.7%
|
|
4,425,140
|
|
88.1%
|
Income from
operations
|
|
193,796
|
|
14.1%
|
|
142,828
|
|
11.1%
|
|
646,994
|
|
12.3%
|
|
596,196
|
|
11.9%
|
Interest expense,
net
|
|
610
|
|
0.0%
|
|
817
|
|
0.1%
|
|
2,683
|
|
0.1%
|
|
3,277
|
|
0.1%
|
Income before income
taxes
|
|
$193,186
|
|
14.1%
|
|
$142,011
|
|
11.0%
|
|
$644,311
|
|
12.3%
|
|
$592,919
|
|
11.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Acute Care
Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Twelve months
ended
|
|
Twelve months
ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues before
provision for doubtful accounts
|
|
$1,594,219
|
|
|
|
$1,454,880
|
|
|
|
$6,240,302
|
|
|
|
$5,740,777
|
|
|
Less: Provision for
doubtful accounts
|
|
182,288
|
|
|
|
136,271
|
|
|
|
755,619
|
|
|
|
627,827
|
|
|
Net
revenues
|
|
1,411,931
|
|
100.0%
|
|
1,318,609
|
|
100.0%
|
|
5,484,683
|
|
100.0%
|
|
5,112,950
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
568,618
|
|
40.3%
|
|
537,675
|
|
40.8%
|
|
2,241,527
|
|
40.9%
|
|
2,086,986
|
|
40.8%
|
Other operating
expenses
|
|
332,287
|
|
23.5%
|
|
349,449
|
|
26.5%
|
|
1,350,741
|
|
24.6%
|
|
1,308,293
|
|
25.6%
|
Supplies
expense
|
|
234,721
|
|
16.6%
|
|
215,176
|
|
16.3%
|
|
905,165
|
|
16.5%
|
|
836,481
|
|
16.4%
|
Depreciation and
amortization
|
|
72,084
|
|
5.1%
|
|
71,097
|
|
5.4%
|
|
285,501
|
|
5.2%
|
|
273,176
|
|
5.3%
|
Lease and rental
expense
|
|
14,142
|
|
1.0%
|
|
13,094
|
|
1.0%
|
|
57,208
|
|
1.0%
|
|
52,604
|
|
1.0%
|
EHR incentive
income
|
|
0
|
|
—
|
|
(5,339)
|
|
(0.4)%
|
|
0
|
|
—
|
|
(5,339)
|
|
(0.1)%
|
Subtotal-operating
expenses
|
|
1,221,852
|
|
86.5%
|
|
1,181,152
|
|
89.6%
|
|
4,840,142
|
|
88.2%
|
|
4,552,201
|
|
89.0%
|
Income from
operations
|
|
190,079
|
|
13.5%
|
|
137,457
|
|
10.4%
|
|
644,541
|
|
11.8%
|
|
560,749
|
|
11.0%
|
Interest expense,
net
|
|
610
|
|
0.0%
|
|
817
|
|
0.1%
|
|
2,684
|
|
0.0%
|
|
3,277
|
|
0.1%
|
Income before income
taxes
|
|
$189,469
|
|
13.4%
|
|
$136,640
|
|
10.4%
|
|
$641,857
|
|
11.7%
|
|
$557,472
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe that
providing our results on a "Same Facility" basis (which is a
non-GAAP measure), which includes the operating results for
facilities and businesses operated in both the current year and
prior year periods, is helpful to our investors as a measure of our
operating performance. Our Same Facility results also neutralize
(if applicable) the 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,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TheAll Acute Care
Hospital Servicestable summarizes the results of operations for
all our acute care operations during the three and twelve-month
periods ended December 31, 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
twelve months ended
|
December 31, 2017 and
2016
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility -
Behavioral Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Twelve months
ended
|
|
Twelve months
ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues before
provision for doubtful accounts
|
|
$1,177,124
|
|
|
|
$1,157,416
|
|
|
|
$4,743,340
|
|
|
|
$4,666,633
|
|
|
Less: Provision for
doubtful accounts
|
|
28,304
|
|
|
|
26,451
|
|
|
|
111,277
|
|
|
|
113,455
|
|
|
Net
revenues
|
|
1,148,820
|
|
100.0%
|
|
1,130,965
|
|
100.0%
|
|
4,632,063
|
|
100.0%
|
|
4,553,178
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
591,423
|
|
51.5%
|
|
564,614
|
|
49.9%
|
|
2,361,545
|
|
51.0%
|
|
2,257,512
|
|
49.6%
|
Other operating
expenses
|
|
228,791
|
|
19.9%
|
|
225,015
|
|
19.9%
|
|
921,991
|
|
19.9%
|
|
885,574
|
|
19.4%
|
Supplies
expense
|
|
49,005
|
|
4.3%
|
|
48,275
|
|
4.3%
|
|
195,291
|
|
4.2%
|
|
193,901
|
|
4.3%
|
Depreciation and
amortization
|
|
35,162
|
|
3.1%
|
|
32,725
|
|
2.9%
|
|
136,000
|
|
2.9%
|
|
131,231
|
|
2.9%
|
Lease and rental
expense
|
|
11,271
|
|
1.0%
|
|
12,097
|
|
1.1%
|
|
44,259
|
|
1.0%
|
|
44,975
|
|
1.0%
|
Subtotal-operating
expenses
|
|
915,652
|
|
79.7%
|
|
882,726
|
|
78.1%
|
|
3,659,086
|
|
79.0%
|
|
3,513,193
|
|
77.2%
|
Income from
operations
|
|
233,168
|
|
20.3%
|
|
248,239
|
|
21.9%
|
|
972,977
|
|
21.0%
|
|
1,039,985
|
|
22.8%
|
Interest expense,
net
|
|
416
|
|
0.0%
|
|
426
|
|
0.0%
|
|
2,006
|
|
0.0%
|
|
1,728
|
|
0.0%
|
Income before income
taxes
|
|
$232,752
|
|
20.3%
|
|
$247,813
|
|
21.9%
|
|
$970,971
|
|
21.0%
|
|
$1,038,257
|
|
22.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Behavioral
Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Twelve months
ended
|
|
Twelve months
ended
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues before
provision for doubtful accounts
|
|
$1,250,298
|
|
|
|
$1,181,804
|
|
|
|
$5,020,177
|
|
|
|
$4,758,761
|
|
|
Less: Provision for
doubtful accounts
|
|
28,809
|
|
|
|
26,478
|
|
|
|
113,458
|
|
|
|
113,754
|
|
|
Net
revenues
|
|
1,221,489
|
|
100.0%
|
|
1,155,326
|
|
100.0%
|
|
4,906,719
|
|
100.0%
|
|
4,645,007
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
627,066
|
|
51.3%
|
|
568,745
|
|
49.2%
|
|
2,496,236
|
|
50.9%
|
|
2,271,967
|
|
48.9%
|
Other operating
expenses
|
|
257,378
|
|
21.1%
|
|
245,195
|
|
21.2%
|
|
1,042,056
|
|
21.2%
|
|
965,873
|
|
20.8%
|
Supplies
expense
|
|
49,969
|
|
4.1%
|
|
48,628
|
|
4.2%
|
|
199,936
|
|
4.1%
|
|
194,872
|
|
4.2%
|
Depreciation and
amortization
|
|
38,984
|
|
3.2%
|
|
33,484
|
|
2.9%
|
|
152,067
|
|
3.1%
|
|
134,487
|
|
2.9%
|
Lease and rental
expense
|
|
11,452
|
|
0.9%
|
|
12,130
|
|
1.0%
|
|
45,445
|
|
0.9%
|
|
45,346
|
|
1.0%
|
Subtotal-operating
expenses
|
|
984,849
|
|
80.6%
|
|
908,182
|
|
78.6%
|
|
3,935,740
|
|
80.2%
|
|
3,612,545
|
|
77.8%
|
Income from
operations
|
|
236,640
|
|
19.4%
|
|
247,144
|
|
21.4%
|
|
970,979
|
|
19.8%
|
|
1,032,462
|
|
22.2%
|
Interest expense,
net
|
|
415
|
|
0.0%
|
|
426
|
|
0.0%
|
|
2,005
|
|
0.0%
|
|
1,728
|
|
0.0%
|
Income before income
taxes
|
|
$236,225
|
|
19.3%
|
|
$246,718
|
|
21.4%
|
|
$968,974
|
|
19.7%
|
|
$1,030,734
|
|
22.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The All Behavioral
Health Care Services table summarizes the results of operations for
all our behavioral health care facilities during the three and
twelve-month periods ended December 31, 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
|
December 31, 2017 and
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
12/31/17
|
12/31/16
|
%
change
|
|
12/31/17
|
12/31/16
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
26
|
0.0%
|
|
300
|
214
|
40.2%
|
Average licensed
beds
|
|
6,132
|
6,100
|
0.5%
|
|
23,225
|
21,884
|
6.1%
|
Average available
beds
|
|
5,960
|
5,925
|
0.6%
|
|
23,140
|
21,803
|
6.1%
|
Patient
days
|
|
330,319
|
309,916
|
6.6%
|
|
1,569,123
|
1,488,685
|
5.4%
|
Average daily
census
|
|
3,590.4
|
3,368.7
|
6.6%
|
|
17,055.7
|
16,181.4
|
5.4%
|
Occupancy-licensed
beds
|
|
58.6%
|
55.2%
|
6.1%
|
|
73.4%
|
73.9%
|
-0.6%
|
Occupancy-available
beds
|
|
60.2%
|
56.9%
|
6.0%
|
|
73.7%
|
74.2%
|
-0.7%
|
Admissions
|
|
75,795
|
69,411
|
9.2%
|
|
114,049
|
111,080
|
2.7%
|
Length of
stay
|
|
4.4
|
4.5
|
-2.4%
|
|
13.8
|
13.4
|
2.7%
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$5,514,735
|
$4,746,830
|
16.2%
|
|
$2,260,616
|
$2,030,155
|
11.4%
|
Outpatient
revenue
|
|
3,335,708
|
2,913,066
|
14.5%
|
|
253,078
|
233,645
|
8.3%
|
Total patient
revenue
|
|
8,850,443
|
7,659,896
|
15.5%
|
|
2,513,694
|
2,263,800
|
11.0%
|
Other
revenue
|
|
115,512
|
117,385
|
-1.6%
|
|
50,711
|
53,553
|
-5.3%
|
Gross hospital
revenue
|
|
8,965,955
|
7,777,281
|
15.3%
|
|
2,564,405
|
2,317,353
|
10.7%
|
|
|
|
|
|
|
|
|
|
Total
deductions
|
|
7,371,736
|
6,322,401
|
16.6%
|
|
1,314,107
|
1,135,549
|
15.7%
|
|
|
|
|
|
|
|
|
|
Net hospital revenue
before
|
|
|
|
|
|
|
|
|
provision for
doubtful accounts
|
|
1,594,219
|
1,454,880
|
9.6%
|
|
1,250,298
|
1,181,804
|
5.8%
|
|
|
|
|
|
|
|
|
|
Provision for
doubtful accounts
|
|
182,288
|
136,271
|
33.8%
|
|
28,809
|
26,478
|
8.8%
|
|
|
|
|
|
|
|
|
|
Net hospital
revenue
|
|
$1,411,931
|
$1,318,609
|
7.1%
|
|
$1,221,489
|
$1,155,326
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
(1)
|
|
BEHAVIORAL HEALTH
(2)
|
|
|
12/31/17
|
12/31/16
|
%
change
|
|
12/31/17
|
12/31/16
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
26
|
0.0%
|
|
210
|
210
|
0.0%
|
Average licensed
beds
|
|
6,089
|
6,057
|
0.5%
|
|
21,803
|
21,579
|
1.0%
|
Average available
beds
|
|
5,917
|
5,882
|
0.6%
|
|
21,722
|
21,498
|
1.0%
|
Patient
days
|
|
328,376
|
309,672
|
6.0%
|
|
1,458,835
|
1,466,222
|
-0.5%
|
Average daily
census
|
|
3,569.3
|
3,366.0
|
6.0%
|
|
15,856.9
|
15,937.2
|
-0.5%
|
Occupancy-licensed
beds
|
|
58.6%
|
55.6%
|
5.5%
|
|
72.7%
|
73.9%
|
-1.5%
|
Occupancy-available
beds
|
|
60.3%
|
57.2%
|
5.4%
|
|
73.0%
|
74.1%
|
-1.5%
|
Admissions
|
|
75,098
|
69,403
|
8.2%
|
|
113,436
|
110,444
|
2.7%
|
Length of
stay
|
|
4.4
|
4.5
|
-2.0%
|
|
12.9
|
13.3
|
-3.1%
|
|
|
|
|
|
|
|
|
|
(1) Henderson
Hospital is excluded from October in current year.
|
|
(2) CAMBIAN
facilities are excluded in current year.
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the twelve months
ended
|
December 31, 2017 and
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
12/31/17
|
12/31/16
|
%
change
|
|
12/31/17
|
12/31/16
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
26
|
0.0%
|
|
300
|
214
|
40.2%
|
Average licensed
beds
|
|
6,127
|
5,934
|
3.3%
|
|
23,151
|
21,829
|
6.1%
|
Average available
beds
|
|
5,954
|
5,759
|
3.4%
|
|
23,068
|
21,744
|
6.1%
|
Patient
days
|
|
1,312,265
|
1,251,511
|
4.9%
|
|
6,381,756
|
6,004,066
|
6.3%
|
Average daily
census
|
|
3,595.2
|
3,419.4
|
5.1%
|
|
17,484.3
|
16,404.6
|
6.6%
|
Occupancy-licensed
beds
|
|
58.7%
|
57.6%
|
1.9%
|
|
75.5%
|
75.2%
|
0.4%
|
Occupancy-available
beds
|
|
60.4%
|
59.4%
|
1.7%
|
|
75.8%
|
75.4%
|
0.5%
|
Admissions
|
|
297,390
|
274,074
|
8.5%
|
|
467,822
|
456,052
|
2.6%
|
Length of
stay
|
|
4.4
|
4.6
|
-3.4%
|
|
13.6
|
13.2
|
3.6%
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$21,888,207
|
$19,042,627
|
14.9%
|
|
$8,949,984
|
$8,017,585
|
11.6%
|
Outpatient
revenue
|
|
13,115,881
|
11,374,098
|
15.3%
|
|
993,409
|
902,102
|
10.1%
|
Total patient
revenue
|
|
35,004,088
|
30,416,725
|
15.1%
|
|
9,943,393
|
8,919,687
|
11.5%
|
Other
revenue
|
|
468,300
|
462,274
|
1.3%
|
|
205,212
|
210,714
|
-2.6%
|
Gross hospital
revenue
|
|
35,472,388
|
30,878,999
|
14.9%
|
|
10,148,605
|
9,130,401
|
11.2%
|
|
|
|
|
|
|
|
|
|
Total
deductions
|
|
29,232,086
|
25,138,222
|
16.3%
|
|
5,128,428
|
4,371,640
|
17.3%
|
|
|
|
|
|
|
|
|
|
Net hospital revenue
before
|
|
|
|
|
|
|
|
|
provision for
doubtful accounts
|
|
6,240,302
|
5,740,777
|
8.7%
|
|
5,020,177
|
4,758,761
|
5.5%
|
|
|
|
|
|
|
|
|
|
Provision for
doubtful accounts
|
|
755,619
|
627,827
|
20.4%
|
|
113,458
|
113,754
|
-0.3%
|
|
|
|
|
|
|
|
|
|
Net hospital
revenue
|
|
$5,484,683
|
$5,112,950
|
7.3%
|
|
$4,906,719
|
$4,645,007
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
(1)
|
|
BEHAVIORAL HEALTH
(2)
|
|
|
12/31/17
|
12/31/16
|
%
change
|
|
12/31/17
|
12/31/16
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
26
|
0.0%
|
|
210
|
210
|
0.0%
|
Average licensed
beds
|
|
6,004
|
5,923
|
1.4%
|
|
21,824
|
21,597
|
1.1%
|
Average available
beds
|
|
5,831
|
5,748
|
1.4%
|
|
21,743
|
21,512
|
1.1%
|
Patient
days
|
|
1,294,035
|
1,251,171
|
3.4%
|
|
5,964,648
|
5,947,976
|
0.3%
|
Average daily
census
|
|
3,545.3
|
3,418.5
|
3.7%
|
|
16,341.5
|
16,251.3
|
0.6%
|
Occupancy-licensed
beds
|
|
59.0%
|
57.7%
|
2.3%
|
|
74.9%
|
75.2%
|
-0.5%
|
Occupancy-available
beds
|
|
60.8%
|
59.5%
|
2.2%
|
|
75.2%
|
75.5%
|
-0.5%
|
Admissions
|
|
290,928
|
274,066
|
6.2%
|
|
466,104
|
454,562
|
2.5%
|
Length of
stay
|
|
4.4
|
4.6
|
-2.6%
|
|
12.8
|
13.1
|
-2.2%
|
|
|
|
|
|
|
|
|
|
(1) Henderson
Hospital is excluded from January through October in current
year.
|
(2) CAMBIAN
facilities are excluded in current year.
|
Universal Health
Services, Inc.
|
|
Supplemental Non-GAAP
Disclosures
|
|
2018 Operating
Results Forecast
|
|
(in thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecast For The
Year Ending December 31, 2018
|
|
|
|
|
|
|
% Net
|
|
|
|
% Net
|
|
|
|
|
Low
|
|
revenues
|
|
High
|
|
revenues
|
|
Net
revenues
|
|
|
$10,923,000
|
|
|
|
$11,063,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to UHS (a) (b)
|
|
$864,409
|
|
|
|
$924,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
472,148
|
|
|
|
472,148
|
|
|
|
Interest
expense
|
|
|
155,421
|
|
|
|
155,421
|
|
|
|
Provision for
income taxes (b)
|
|
|
266,129
|
|
|
|
284,739
|
|
|
|
EBITDA (a)
(c)
|
|
|
1,758,107
|
|
16.1%
|
|
1,837,167
|
|
16.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to UHS, per diluted share (a) (b)
|
$9.25
|
|
|
|
$9.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing diluted earnings per share
|
|
93,394
|
|
|
|
93,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The 2018
forecasted amounts exclude the impact of future items, if
applicable, that are nonrecurring or non-operational in nature
including items such as, but not limited to, the impact of
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 that differ from included assumptions 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 set forth in the accompanying report in
General Information, Forward-Looking Statements and Risk Factors
and Non-GAAP Financial Measures.
|
|
|
|
|
|
|
|
|
|
|
|
(b) Excludes the
impact on our provision for income taxes and net income
attributable to UHS/per diluted share resulting from our January 1,
2017 adoption of ASU 2016-09, as discussed in the accompanying
report.
|
|
|
|
|
|
|
|
|
|
|
|
(c) EBITDA is a
non-GAAP financial measure. To obtain a complete
understanding of our financial performance, EBIDTA should be
examined in connection with net income determined in accordance
with GAAP as presented in the consolidated financial statements and
notes thereto in this report or in our filings with the Securities
and Exchange Commission including our Report on Form 10-K for the
year ended December 31, 2017.
|
View original
content:http://www.prnewswire.com/news-releases/universal-health-services-inc-reports-2017-fourth-quarter-and-full-year-earnings-and-2018-guidance-300606088.html
SOURCE Universal Health Services, Inc.