KING OF PRUSSIA, Pa.,
April 26, 2021 /PRNewswire/ --
Universal Health Services, Inc. (NYSE: UHS) announced today that
its reported net income attributable to UHS was $209.1 million, or $2.43 per diluted share, during the first quarter
of 2021, as compared to $142.0
million, or $1.64 per diluted
share, during the first quarter of 2020. Net revenues increased
6.5% to $3.013 billion during the
first quarter of 2021 as compared to $2.830
billion during the first quarter of 2020.
During the first quarter of 2021, we received approximately
$188 million of additional funds from
the federal government in connection with the Coronavirus Aid,
Relief, and Economic Security Act ("CARES Act"). We have begun
coordinating the return of the funds with the appropriate
government agencies and expect to return the $188 million during the second quarter of 2021
utilizing a portion of our cash and cash equivalents held on
deposit. Therefore, our results of operations for the quarter ended
March 31, 2021 include no impact from
the receipt of those funds.
Also, and as previously announced earlier this year, in March of
2021 we funded the early repayment of $695
million of funds received during 2020 pursuant to the
Medicare Accelerated and Advance Payment Program. These funds were
returned to the government utilizing a portion of our cash and cash
equivalents held on
deposit.
As reflected on the Schedule of Non-GAAP Supplemental
Information ("Supplemental Schedule"), our adjusted net income
attributable to UHS during the first quarter of 2021 was
$210.1 million, or $2.44 per diluted share, as compared to
$150.2 million, or $1.73 per diluted share, during the first quarter
of 2020.
As reflected on the Supplemental Schedule, included in our
reported results during the first quarter of 2021, was a net
aggregate unfavorable after-tax impact of $1.1 million, or $.01 per diluted share, consisting of the
following: (i) an after-tax unrealized loss of $2.1 million, or $.02 per diluted share, ($2.8 million pre-tax which is included in "Other
(income) expense, net"), resulting from a decrease in the market
value of shares of certain marketable securities held for
investment and classified as available for sale, and; (ii) a
favorable after-tax impact of $1.1
million, or $.01 per diluted
share, resulting from our adoption of ASU 2016-09, "Compensation –
Stock Compensation (Topic 718): Improvements to Employee
Share-Based Payment Accounting" ("ASU 2016-09").
As reflected on the Supplemental Schedule, included in our
reported results during the first quarter of 2020, was a net
aggregate unfavorable after-tax impact of $8.1 million, or $.09 per diluted share, consisting of the
following: (i) an after-tax unrealized loss of $7.4 million, or $.08 per diluted share, ($9.6 million pre-tax which is included in "Other
(income) expense, net"), resulting from a decrease in the market
value of shares of certain marketable securities held for
investment and classified as available for sale, and; (ii) a
unfavorable after-tax impact of $0.8
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", NCI is net income attributable to
noncontrolling interests), was $426.3
million during the first quarter of 2021, as compared to
$349.1 million during the first
quarter of 2020. Our adjusted earnings before interest, taxes,
depreciation & amortization ("Adjusted EBITDA net of NCI"),
which excludes the impact of other (income) expense, net, was
$427.1 million during the first
quarter of 2021 as compared to $358.7
million during the first quarter of 2020.
Acute Care Services – Three-month periods ended March 31, 2021 and 2020:
During the first quarter of 2021 adjusted admissions (adjusted
for outpatient activity), at our acute care hospitals owned during
both periods ("same facility basis"), decreased 12.1% and adjusted
patient days decreased 0.7%, as compared to the first quarter of
2020. At these facilities, net revenue per adjusted admission
increased 26.3% while net revenue per adjusted patient day
increased 11.8% during the first quarter of 2021 as compared to the
first quarter of 2020. Net revenues generated from our acute care
services on a same facility basis increased 11.7% during the first
quarter of 2021 as compared to the first quarter of 2020.
Behavioral Health Care Services – Three-month periods ended
March 31, 2021 and 2020:
During the first quarter of 2021 adjusted admissions, at our
behavioral health care facilities on a same facility basis,
decreased 4.9% and adjusted patient days decreased 3.8%, as
compared to the first quarter of 2020. At these facilities, net
revenue per adjusted admission increased 6.2% while net revenue per
adjusted patient day increased 4.9% during the first quarter of
2021 as compared to the comparable quarter in 2020. Net revenues
generated from our behavioral health care services on a same
facility basis increased 0.9% during the first quarter of 2021 as
compared to the first quarter of 2020.
COVID-19
The impact of the COVID-19 pandemic, which began during the
second half of March, 2020, has had a material unfavorable effect
on our operations and financial results since that time. The
COVID-19 vaccination process commenced during the first quarter of
2021 and, while we expect the administration of vaccines will
assist in easing the number of COVID-19 patients, the pace of
distribution and the portion of the population that will ultimately
become vaccinated is difficult to predict. The extent to which the
COVID-19 pandemic and measures taken in response thereto impact our
business, results of operations and financial condition will depend
on numerous factors and future developments, most of which are
beyond our control or ability to predict. The ultimate impact of
the COVID-19 pandemic is highly uncertain and subject to change. We
are not able to fully quantify the impact that these factors will
have on our future financial results.
Net Cash Provided by Operating Activities and
Liquidity:
Net Cash Provided by Operating Activities:
For the three months ended March 31,
2021, our net cash provided by operating activities was
$72 million as compared to
$502 million during the first quarter
of 2020. The $430 million net
decrease in our cash provided by operating activities during the
first quarter of 2021, as compared to the first quarter of 2020,
was due to: (i) an unfavorable change of $509 million resulting primarily from the
above-mentioned $695 million of
Medicare accelerated payments repaid during the first quarter of
2021, net of the $188 million of
CARES Act grants received during the first quarter of 2021; (ii) a
favorable change of $72 million
resulting from an increase in net income plus depreciation and
amortization expense and stock-based compensation expense, and;
(iii) $7 million of other combined
net favorable changes.
Liquidity:
As of March 31, 2021, we had
$997 million of aggregate available
borrowing capacity pursuant to our $1
billion revolving credit facility, net of outstanding
letters of credit. In addition, as of March 31, 2021, we had approximately $765 million of cash and cash
equivalents.
Quarterly Dividend and Stock Repurchase Program:
As previously announced, during the first quarter our Board of
Directors approved a $0.20 per share
cash dividend that was paid on March 31,
2021 to shareholders of record as of March 15, 2021.
In addition, in April, 2021, our Board of Directors approved a
resumption to our stock repurchase program, effective immediately.
Pursuant to our $2.7 billion stock
repurchase program, which had an aggregate available repurchase
authorization of $559.6 million as of
March 31, 2021, 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. Since inception of the program in 2014 through
March 31, 2021, we have repurchased
approximately 18.02 million shares at an aggregate cost of
approximately $2.14 billion
(approximately $119 per
share).
Conference call information:
We will hold a conference call for investors and analysts at
9:00 a.m. eastern time on
April 27, 2021. 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.
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 approximately $11.6 billion during 2020. In 2021, UHS was again
recognized as one of the World's Most Admired Companies by
Fortune; in 2020 ranked #281 on the Fortune 500; and listed
#330 in Forbes ranking of U.S.' Largest Public
Companies.
Our operating philosophy is as effective today as it was over 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 approximately 89,000 employees and through its
subsidiaries operates 26 acute care hospitals, 335 behavioral
health facilities, 39 outpatient facilities and ambulatory care
access points, an insurance offering, a physician network and
various related services located in 38 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 the anticipated impact of
COVID-19 on our operations and financial results, 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, 2020), may cause the
results to differ materially from those anticipated in the
forward-looking statements. 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. Many of the factors that could
affect our future results are beyond our control or ability to
predict, including the impact of the COVID-19 pandemic. Our future
operations and financial results will likely be materially impacted
by developments related to COVID-19 including, but not limited to,
the length of time and severity of the spread of the pandemic; the
volume of cancelled or rescheduled elective procedures and the
volume of COVID-19 patients treated at our hospitals and other
healthcare facilities; measures we are taking to respond to the
COVID-19 pandemic; the impact of government and administrative
regulation and stimulus on the hospital industry and potential
retrospective adjustment in future periods of CARES Act and other
grant income revenues recorded as revenues in prior periods;
declining patient volumes and unfavorable changes in payer mix
caused by deteriorating macroeconomic conditions (including
increases in uninsured and underinsured patients as the result of
business closings and layoffs); potential disruptions to our
clinical staffing and shortages and disruptions related to supplies
required for our employees and patients; and potential increases to
expenses related to staffing, supply chain or other expenditures;
the impact of our substantial indebtedness and the ability to
refinance such indebtedness on acceptable terms, as well as risks
associated with disruptions in the financial markets and the
business of financial institutions as the result of the COVID-19
pandemic which could impact us from a financing perspective; and
changes in general economic conditions nationally and regionally in
our markets resulting from the COVID-19 pandemic. We are not able
to fully quantify the impact that these factors will have on our
future financial results, but expect developments related to the
COVID-19 pandemic to materially affect our financial performance in
2021.
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 of material items impacting our net income
attributable to UHS, such as, our adoption of ASU 2016-09,
unrealized gains/losses resulting from changes in the market value
of shares of certain marketable securities held for investment and
classified as available for sale, 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, changes in the reserve established in connection with our
discussions with the Department of Justice, 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 Report on
Form 10-K for the year ended December 31,
2020. 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
|
|
ended March
31,
|
|
2021
|
|
2020
|
|
|
|
|
Net
revenues
|
$3,012,987
|
|
$2,829,667
|
|
|
|
|
Operating
charges:
|
|
|
|
Salaries, wages and benefits
|
1,497,773
|
|
1,432,669
|
Other
operating expenses
|
709,708
|
|
689,790
|
Supplies
expense
|
347,110
|
|
317,827
|
Depreciation and amortization
|
131,403
|
|
124,394
|
Lease
and rental expense
|
31,324
|
|
28,293
|
|
2,717,318
|
|
2,592,973
|
|
|
|
|
Income from
operations
|
295,669
|
|
236,694
|
|
|
|
|
Interest expense,
net
|
21,957
|
|
36,351
|
Other (income)
expense, net
|
835
|
|
9,560
|
|
|
|
|
Income before income
taxes
|
272,877
|
|
190,783
|
|
|
|
|
Provision for income
taxes
|
63,807
|
|
46,323
|
|
|
|
|
Net income
|
209,070
|
|
144,460
|
|
|
|
|
Less: Net
income attributable to
|
|
|
|
noncontrolling
interests ("NCI")
|
(21)
|
|
2,423
|
|
|
|
|
Net income
attributable to UHS
|
$209,091
|
|
$142,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS (a)
|
$2.46
|
|
$1.64
|
|
|
|
|
Diluted earnings per
share attributable to UHS (a)
|
$2.43
|
|
$1.64
|
Universal Health
Services, Inc.
|
Footnotes to
Consolidated Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
Three
months
|
(a) Earnings per
share calculation:
|
ended March
31,
|
|
2021
|
|
2020
|
Basic and
diluted:
|
|
|
|
Net income
attributable to UHS
|
$209,091
|
|
$142,037
|
Less: Net income
attributable to unvested restricted share grants
|
(552)
|
|
(373)
|
Net income
attributable to UHS - basic and diluted
|
$208,539
|
|
$141,664
|
|
|
|
|
Weighted average
number of common shares - basic
|
84,782
|
|
86,212
|
|
|
|
|
Basic earnings per
share attributable to UHS:
|
$2.46
|
|
$1.64
|
|
|
|
|
Weighted average
number of common shares
|
84,782
|
|
86,212
|
Add: Other share
equivalents
|
1,014
|
|
243
|
Weighted average
number of common shares and equiv. - diluted
|
85,796
|
|
86,455
|
|
|
|
|
Diluted earnings per
share attributable to UHS:
|
$2.43
|
|
$1.64
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Information ("Supplemental Schedule")
|
For the Three Months
ended March 31, 2021 and 2020
|
(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
|
|
March 31,
2021
|
|
revenues
|
|
March 31,
2020
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$209,091
|
|
|
|
$142,037
|
|
|
Depreciation and amortization
|
131,403
|
|
|
|
124,394
|
|
|
Interest
expense, net
|
21,957
|
|
|
|
36,351
|
|
|
Provision for income taxes
|
63,807
|
|
|
|
46,323
|
|
|
EBITDA net of
NCI
|
$426,258
|
|
14.1%
|
|
$349,105
|
|
12.3%
|
|
|
|
|
|
|
|
|
Other (income)
expense, net
|
835
|
|
|
|
9,560
|
|
|
Adjusted EBITDA net
of NCI
|
$427,093
|
|
14.2%
|
|
$358,665
|
|
12.7%
|
|
|
|
|
|
|
|
|
Net
revenues
|
$3,012,987
|
|
|
|
$2,829,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
March 31,
2021
|
|
March 31,
2020
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$209,091
|
|
$2.43
|
|
$142,037
|
|
$1.64
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Unrealized loss on
marketable securities held for sale
|
2,137
|
|
0.02
|
|
7,350
|
|
0.08
|
Impact of ASU
2016-09
|
(1,079)
|
|
(0.01)
|
|
770
|
|
0.01
|
Subtotal
adjustments
|
1,058
|
|
0.01
|
|
8,120
|
|
0.09
|
Adjusted net income
attributable to UHS
|
$210,149
|
|
$2.44
|
|
$150,157
|
|
$1.73
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Comprehensive Income
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
Three
months
|
|
ended March
31,
|
|
2021
|
|
2020
|
|
|
|
|
Net income
|
$209,070
|
|
$144,460
|
Other comprehensive
income (loss):
|
|
|
|
Foreign
currency translation adjustment
|
(10,346)
|
|
(39,201)
|
Other comprehensive
income (loss) before tax
|
(10,346)
|
|
(39,201)
|
Income tax expense
(benefit) related to items of other comprehensive income
(loss)
|
(1,466)
|
|
(2,108)
|
Total other
comprehensive income (loss), net of tax
|
(8,880)
|
|
(37,093)
|
|
|
|
|
Comprehensive
income
|
200,190
|
|
107,367
|
Less: Comprehensive
income (loss) attributable to noncontrolling interests
|
(21)
|
|
2,423
|
Comprehensive income
attributable to UHS
|
$200,211
|
|
$104,944
|
Universal Health
Services, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2021
|
|
|
2020
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
764,502
|
|
$
|
1,224,490
|
Accounts receivable, net
|
|
|
1,668,650
|
|
|
1,728,928
|
Supplies
|
|
|
193,961
|
|
|
190,417
|
Other current assets
|
|
|
157,052
|
|
|
138,034
|
Total current assets
|
|
|
2,784,165
|
|
|
3,281,869
|
|
|
|
|
|
|
|
Property and
equipment
|
|
|
10,119,037
|
|
|
9,885,888
|
Less: accumulated
depreciation
|
|
|
(4,623,435)
|
|
|
(4,512,764)
|
|
|
|
5,495,602
|
|
|
5,373,124
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
|
|
3,886,973
|
|
|
3,882,715
|
Deferred income taxes
|
|
|
23,514
|
|
|
22,689
|
Right of use assets-operating leases
|
|
|
326,703
|
|
|
336,513
|
Deferred charges
|
|
|
4,782
|
|
|
4,985
|
Other
|
|
|
574,590
|
|
|
574,984
|
Total
Assets
|
|
$
|
13,096,329
|
|
$
|
13,476,879
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
107,281
|
|
$
|
331,998
|
Accounts payable and other liabilities
|
|
|
1,779,700
|
|
|
1,668,671
|
Medicare accelerated payments and deferred CARES Act and other
grants
|
|
189,320
|
|
|
376,151
|
Operating lease liabilities
|
|
|
60,812
|
|
|
59,796
|
Federal and state taxes
|
|
|
102,266
|
|
|
44,423
|
Total current liabilities
|
|
|
2,239,379
|
|
|
2,481,039
|
|
|
|
|
|
|
|
Other noncurrent
liabilities
|
|
|
476,377
|
|
|
458,549
|
Operating lease
liabilities noncurrent
|
|
|
267,707
|
|
|
278,303
|
Medicare accelerated
payments noncurrent
|
|
|
0
|
|
|
322,617
|
Long-term
debt
|
|
|
3,505,822
|
|
|
3,524,253
|
Deferred income
taxes
|
|
|
735
|
|
|
5,582
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
4,470
|
|
|
4,569
|
|
|
|
|
|
|
|
UHS common
stockholders' equity
|
|
|
6,513,862
|
|
|
6,317,146
|
Noncontrolling
interest
|
|
|
87,977
|
|
|
84,821
|
Total equity
|
|
|
6,601,839
|
|
|
6,401,967
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
13,096,329
|
|
$
|
13,476,879
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
Three
months
|
|
ended March
31,
|
|
2021
|
|
2020
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$209,070
|
|
$144,460
|
Adjustments
to reconcile net income to net
|
|
|
|
cash provided by
operating activities:
|
|
|
|
Depreciation &
amortization
|
131,403
|
|
124,394
|
Stock-based
compensation expense
|
18,022
|
|
18,047
|
Changes in
assets & liabilities, net of effects from
|
|
|
|
acquisitions and
dispositions:
|
|
|
|
Accounts
receivable
|
56,851
|
|
69,763
|
Accrued
interest
|
10,133
|
|
(4,412)
|
Accrued
and deferred income taxes
|
53,769
|
|
45,200
|
Other
working capital accounts
|
82,663
|
|
73,929
|
Medicare
accelerated payments and deferred CARES Act and other
grants
|
(509,448)
|
|
0
|
Other
assets and deferred charges
|
(17)
|
|
11,084
|
Other
|
2,623
|
|
(3,038)
|
Accrued
insurance expense, net of commercial premiums paid
|
35,467
|
|
49,559
|
Payments
made in settlement of self-insurance claims
|
(18,741)
|
|
(26,924)
|
Net cash provided by operating activities
|
71,795
|
|
502,062
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Property
and equipment additions, net of disposals
|
(247,459)
|
|
(184,102)
|
Inflows
(outflows) from foreign exchange contracts that hedge our net U.K.
investment
|
(14,264)
|
|
51,691
|
Decrease
in capital reserves of commercial insurance
subsidiary
|
100
|
|
0
|
Costs
incurred for purchase and implementation of information technology
applications
|
(575)
|
|
(1,857)
|
Investment in, and advances to, joint ventures and
other
|
(129)
|
|
(751)
|
Net cash used in investing activities
|
(262,327)
|
|
(135,019)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Reduction of long-term debt
|
(251,830)
|
|
(185,098)
|
Additional borrowings
|
0
|
|
5,453
|
Repurchase of common shares
|
(7,464)
|
|
(172,092)
|
Dividends paid
|
(17,018)
|
|
(17,344)
|
Issuance
of common stock
|
3,357
|
|
3,002
|
Profit
distributions to noncontrolling interests
|
(4,525)
|
|
(5,735)
|
Purchase
of ownership interests by minority members
|
7,603
|
|
0
|
Net cash used in financing activities
|
(269,877)
|
|
(371,814)
|
|
|
|
|
Effect
of exchange rate changes on cash, cash equivalents and restricted
cash
|
423
|
|
(1,673)
|
Decrease in cash,
cash equivalents and restricted cash
|
(459,986)
|
|
(6,444)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
1,279,154
|
|
105,667
|
Cash, cash
equivalents and restricted cash, end of period
|
$819,168
|
|
$99,223
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
Interest
paid
|
$11,421
|
|
$39,483
|
|
|
|
|
Income taxes
paid, net of refunds
|
$8,654
|
|
$6,783
|
|
|
|
|
Noncash
purchases of property and equipment
|
$60,124
|
|
$58,935
|
Universal Health
Services, Inc.
|
Supplemental
Statistical Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
|
|
|
|
3 Months
ended
|
Same
Facility:
|
|
|
|
|
3/31/2021
|
|
|
|
|
|
|
Acute Care
Hospitals
|
|
|
|
|
|
Revenues
|
|
|
|
|
11.7%
|
Adjusted
Admissions
|
|
|
|
|
-12.1%
|
Adjusted Patient
Days
|
|
|
|
|
-0.7%
|
Revenue Per Adjusted
Admission
|
|
|
|
|
26.3%
|
Revenue Per Adjusted
Patient Day
|
|
|
|
|
11.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Behavioral Health
Hospitals
|
|
|
|
|
|
Revenues
|
|
|
|
|
0.9%
|
Adjusted
Admissions
|
|
|
|
|
-4.9%
|
Adjusted Patient
Days
|
|
|
|
|
-3.8%
|
Revenue Per Adjusted
Admission
|
|
|
|
|
6.2%
|
Revenue Per Adjusted
Patient Day
|
|
|
|
|
4.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UHS
Consolidated
|
|
|
Three months
ended
|
|
|
|
3/31/2021
|
|
3/31/2020
|
|
|
|
|
|
|
Revenues
|
|
|
$3,012,987
|
|
$2,829,667
|
EBITDA net of
NCI
|
|
|
$426,258
|
|
$349,105
|
EBITDA Margin net of
NCI
|
|
|
14.1%
|
|
12.3%
|
Adjusted EBITDA net
of NCI
|
|
|
$427,093
|
|
$358,665
|
Adjusted EBITDA
Margin net of NCI
|
|
14.2%
|
|
12.7%
|
|
|
|
|
|
|
Cash Flow From
Operations
|
|
|
$71,795
|
|
$502,062
|
Days Sales
Outstanding
|
|
|
50
|
|
48
|
Capital
Expenditures
|
|
|
$247,459
|
|
$184,102
|
|
|
|
|
|
|
Debt
|
|
|
$3,613,103
|
|
$3,805,320
|
UHS' Shareholders
Equity
|
|
|
$6,513,862
|
|
$5,413,209
|
Debt / Total
Capitalization
|
|
|
35.7%
|
|
41.3%
|
Debt / EBITDA net of
NCI (1)
|
|
|
1.87
|
|
2.37
|
Debt / Adjusted
EBITDA net of NCI (1)
|
|
1.87
|
|
2.23
|
Debt / Cash From
Operations (1)
|
|
|
1.87
|
|
2.52
|
Net Debt / EBITDA net
of NCI (1) (2)
|
|
1.48
|
|
|
Net Debt / Adjusted
EBITDA net of NCI (1) (2)
|
|
1.48
|
|
|
Net Debt / Cash From
Operations (1) (2)
|
|
1.48
|
|
|
|
|
|
|
|
|
(1) Latest 4
quarters.
|
|
|
|
|
|
(2) Debt, net of
approximately $749,000 of short-term cash investments as of March
31, 2021.
|
Universal Health
Services, Inc.
|
Acute Care Hospital
Services
|
For the three months
ended
|
March 31, 2021 and
2020
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility
Basis - Acute Care Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March 31,
2021
|
|
March 31,
2020
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,671,836
|
|
100.0%
|
|
$1,497,123
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
706,811
|
|
42.3%
|
|
658,929
|
|
44.0%
|
Other operating
expenses
|
|
393,207
|
|
23.5%
|
|
375,531
|
|
25.1%
|
Supplies
expense
|
|
296,478
|
|
17.7%
|
|
264,530
|
|
17.7%
|
Depreciation and
amortization
|
|
81,184
|
|
4.9%
|
|
77,928
|
|
5.2%
|
Lease and rental
expense
|
|
20,112
|
|
1.2%
|
|
16,020
|
|
1.1%
|
Subtotal-operating
expenses
|
|
1,497,792
|
|
89.6%
|
|
1,392,938
|
|
93.0%
|
Income from
operations
|
|
174,044
|
|
10.4%
|
|
104,185
|
|
7.0%
|
Interest expense,
net
|
|
246
|
|
0.0%
|
|
618
|
|
0.0%
|
Other (income)
expense, net
|
|
0
|
|
-
|
|
0
|
|
-
|
Income before income
taxes
|
|
$173,798
|
|
10.4%
|
|
$103,567
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Acute Care
Hospital Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March 31,
2021
|
|
March 31,
2020
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,694,542
|
|
100.0%
|
|
$1,521,049
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
707,218
|
|
41.7%
|
|
658,959
|
|
43.3%
|
Other operating
expenses
|
|
416,007
|
|
24.5%
|
|
399,457
|
|
26.3%
|
Supplies
expense
|
|
296,479
|
|
17.5%
|
|
264,530
|
|
17.4%
|
Depreciation and
amortization
|
|
81,362
|
|
4.8%
|
|
77,928
|
|
5.1%
|
Lease and rental
expense
|
|
20,112
|
|
1.2%
|
|
16,020
|
|
1.1%
|
Subtotal-operating
expenses
|
|
1,521,178
|
|
89.8%
|
|
1,416,894
|
|
93.2%
|
Income from
operations
|
|
173,364
|
|
10.2%
|
|
104,155
|
|
6.8%
|
Interest expense,
net
|
|
246
|
|
0.0%
|
|
618
|
|
0.0%
|
Other (income)
expense, net
|
|
0
|
|
-
|
|
0
|
|
-
|
Income before income
taxes
|
|
$173,118
|
|
10.2%
|
|
$103,537
|
|
6.8%
|
|
We believe that
providing our results on a "Same Facility" basis (which is a
non-GAAP measure), which includes the operating results for
facilities and businesses operated in both the current year and
prior year periods, is helpful to our investors as a measure of our
operating performance. Our Same Facility results also neutralize
(if applicable), the effect of material items that are nonrecurring
or non-operational in nature including items such as, but not
limited to, reserves for various matters, settlements, legal
judgments and lawsuits, cost related to extinguishment of debt,
gains/losses on sales of assets and businesses, impairments of
long-lived and intangible assets and other amounts that may be
reflected in the current or prior year financial statements that
relate to prior periods. Our Same Facility basis results exclude
from net revenues and other operating expenses, provider tax
assessments incurred in each period. However, these provider tax
assessments are included in net revenues and other operating
expenses as reflected in the table under All Acute Care Hospital
Services. The provider tax assessments had no impact on the income
before income taxes as reflected on the above tables since the
amounts offset between net revenues and other operating expenses.
To obtain a complete understanding of our financial performance,
the Same Facility results should be examined in connection with our
net income as determined in accordance with GAAP and as presented
herein and the condensed consolidated financial statements and
notes thereto as contained in our Form 10-K for the year ended
December 31, 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 months
ended
|
March 31, 2021 and
2020
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility -
Behavioral Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March 31,
2021
|
|
March 31,
2020
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,292,042
|
|
100.0%
|
|
$1,281,052
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
701,567
|
|
54.3%
|
|
690,375
|
|
53.9%
|
Other operating
expenses
|
|
245,373
|
|
19.0%
|
|
242,366
|
|
18.9%
|
Supplies
expense
|
|
50,746
|
|
3.9%
|
|
51,561
|
|
4.0%
|
Depreciation and
amortization
|
|
45,302
|
|
3.5%
|
|
42,715
|
|
3.3%
|
Lease and rental
expense
|
|
11,274
|
|
0.9%
|
|
11,020
|
|
0.9%
|
Subtotal-operating
expenses
|
|
1,054,262
|
|
81.6%
|
|
1,038,037
|
|
81.0%
|
Income from
operations
|
|
237,780
|
|
18.4%
|
|
243,015
|
|
19.0%
|
Interest expense,
net
|
|
338
|
|
0.0%
|
|
364
|
|
0.0%
|
Other (income)
expense, net
|
|
413
|
|
0.0%
|
|
889
|
|
0.1%
|
Income before income
taxes
|
|
$237,029
|
|
18.3%
|
|
$241,762
|
|
18.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Behavioral
Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
|
March 31,
2021
|
|
March 31,
2020
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net
revenues
|
|
$1,315,337
|
|
100.0%
|
|
$1,306,109
|
|
100.0%
|
Operating
charges:
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
703,975
|
|
53.5%
|
|
693,272
|
|
53.1%
|
Other operating
expenses
|
|
269,297
|
|
20.5%
|
|
266,182
|
|
20.4%
|
Supplies
expense
|
|
51,009
|
|
3.9%
|
|
51,639
|
|
4.0%
|
Depreciation and
amortization
|
|
46,482
|
|
3.5%
|
|
43,889
|
|
3.4%
|
Lease and rental
expense
|
|
11,683
|
|
0.9%
|
|
12,158
|
|
0.9%
|
Subtotal-operating
expenses
|
|
1,082,446
|
|
82.3%
|
|
1,067,140
|
|
81.7%
|
Income from
operations
|
|
232,891
|
|
17.7%
|
|
238,969
|
|
18.3%
|
Interest expense,
net
|
|
1,153
|
|
0.1%
|
|
397
|
|
0.0%
|
Other (income)
expense, net
|
|
413
|
|
0.0%
|
|
889
|
|
0.1%
|
Income before income
taxes
|
|
$231,325
|
|
17.6%
|
|
$237,683
|
|
18.2%
|
|
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 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, lawsuits and reserves established in connection with the
government's investigation of our behavioral health care
facilities, 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,
2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
March 31, 2021 and
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
3/31/21
|
|
3/31/20
|
|
%
change
|
|
3/31/21
|
|
3/31/20
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
335
|
|
331
|
|
0.9%
|
Average licensed
beds
|
|
6,515
|
|
6,451
|
|
1.0%
|
|
24,018
|
|
23,634
|
|
1.6%
|
Average available
beds
|
|
6,343
|
|
6,279
|
|
1.0%
|
|
23,918
|
|
23,531
|
|
1.6%
|
Patient
days
|
|
392,391
|
|
370,513
|
|
5.9%
|
|
1,534,162
|
|
1,592,611
|
|
-3.7%
|
Average daily
census
|
|
4,359.9
|
|
4,071.7
|
|
7.1%
|
|
17,046.2
|
|
17,501.2
|
|
-2.6%
|
Occupancy-licensed
beds
|
|
66.9%
|
|
63.1%
|
|
6.0%
|
|
71.0%
|
|
74.1%
|
|
-4.2%
|
Occupancy-available
beds
|
|
68.7%
|
|
64.8%
|
|
6.0%
|
|
71.3%
|
|
74.4%
|
|
-4.2%
|
Admissions
|
|
72,924
|
|
77,768
|
|
-6.2%
|
|
115,408
|
|
121,017
|
|
-4.6%
|
Length of
stay
|
|
5.4
|
|
4.8
|
|
12.9%
|
|
13.3
|
|
13.2
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$9,119,184
|
|
$7,821,472
|
|
16.6%
|
|
$2,473,565
|
|
$2,525,539
|
|
-2.1%
|
Outpatient
revenue
|
|
4,580,720
|
|
4,681,741
|
|
-2.2%
|
|
246,764
|
|
259,739
|
|
-5.0%
|
Total patient
revenue
|
|
13,699,904
|
|
12,503,213
|
|
9.6%
|
|
2,720,329
|
|
2,785,278
|
|
-2.3%
|
Other
revenue
|
|
143,265
|
|
116,278
|
|
23.2%
|
|
62,208
|
|
56,390
|
|
10.3%
|
Gross hospital
revenue
|
|
13,843,169
|
|
12,619,491
|
|
9.7%
|
|
2,782,537
|
|
2,841,668
|
|
-2.1%
|
Total
deductions
|
|
12,148,627
|
|
11,098,442
|
|
9.5%
|
|
1,467,200
|
|
1,535,559
|
|
-4.5%
|
Net hospital
revenue
|
|
$1,694,542
|
|
$1,521,049
|
|
11.4%
|
|
$1,315,337
|
|
$1,306,109
|
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
3/31/21
|
|
3/31/20
|
|
%
change
|
|
3/31/21
|
|
3/31/20
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
26
|
|
26
|
|
0.0%
|
|
319
|
|
319
|
|
0.0%
|
Average licensed
beds
|
|
6,515
|
|
6,451
|
|
1.0%
|
|
23,689
|
|
23,397
|
|
1.2%
|
Average available
beds
|
|
6,343
|
|
6,279
|
|
1.0%
|
|
23,589
|
|
23,294
|
|
1.3%
|
Patient
days
|
|
392,391
|
|
370,513
|
|
5.9%
|
|
1,525,725
|
|
1,582,445
|
|
-3.6%
|
Average daily
census
|
|
4,359.9
|
|
4,071.7
|
|
7.1%
|
|
16,952.5
|
|
17,389.5
|
|
-2.5%
|
Occupancy-licensed
beds
|
|
66.9%
|
|
63.1%
|
|
6.0%
|
|
71.6%
|
|
74.3%
|
|
-3.7%
|
Occupancy-available
beds
|
|
68.7%
|
|
64.8%
|
|
6.0%
|
|
71.9%
|
|
74.7%
|
|
-3.7%
|
Admissions
|
|
72,924
|
|
77,768
|
|
-6.2%
|
|
114,426
|
|
120,082
|
|
-4.7%
|
Length of
stay
|
|
5.4
|
|
4.8
|
|
12.9%
|
|
13.3
|
|
13.2
|
|
1.2%
|
View original
content:http://www.prnewswire.com/news-releases/universal-health-services-inc-announces-2021-first-quarter-financial-results-and-plans-to-return-cares-act-grants-received-during-first-quarter-of-2021-301277060.html
SOURCE Universal Health Services, Inc.