Consolidated Results of Operations, As Reported and As
Adjusted – Three-month periods ended September 30, 2022 and 2021:
KING OF
PRUSSIA, Pa., Oct. 25,
2022 /PRNewswire/ -- Universal Health Services, Inc.
(NYSE: UHS) announced today that its reported net income
attributable to UHS was $182.8
million, or $2.50 per diluted
share, during the third quarter of 2022, as compared to
$218.4 million, or $2.60 per diluted share, during the third quarter
of 2021. Net revenues increased by 5.7% to $3.336 billion during the third quarter of 2022
as compared to $3.156 billion during
the third quarter of 2021.
As reflected on the Schedule of Non-GAAP Supplemental
Information ("Supplemental Schedule"), our adjusted net income
attributable to UHS during the third quarter of 2022 was
$185.8 million, or $2.54 per diluted share, as compared to
$224.1 million, or $2.67 per diluted share, during the third quarter
of 2021.
Included in our reported and adjusted net income attributable to
UHS during the three and nine-month periods ended September 30, 2022 was an aggregate of
$25.3 million in Quality Incentive
Fund ("QIF") payments, applicable to the period of September 1, 2020 to August 31, 2021, recorded by certain of our acute
care hospitals located in Texas in
connection with the state's Uniform Hospital Rate Increase Program
("UHRIP") program. This revenue was earned pursuant to
contract terms with various Medicaid managed care plans which
requires the annual payout of QIF funds when a managed care service
delivery area's actual claims based UHRIP payments are less than
targeted UHRIP payments for a specific rate year. We anticipate
that these hospitals may be entitled to an additional $5 million of QIF revenue during the fourth
quarter of 2022, increasing the 2022 aggregate to approximately
$30 million. We also anticipate that
these hospitals may be entitled to a comparable amount of aggregate
QIF revenue during 2023.
As reflected on the Supplemental Schedule, included in our
reported results during the third quarter of 2022, was an
unfavorable after-tax unrealized loss of $3.0 million, or $.04 per diluted share, ($3.9 million pre-tax which is included in "Other
(income) expense, net"), resulting from a decrease in the market
value of certain equity securities.
As reflected on the Supplemental Schedule, included in our
reported results during the third quarter of 2021, was a net
aggregate unfavorable after-tax impact of $5.8 million, or $.07 per diluted share, consisting primarily of
the following: (i) an after-tax charge of $12.9 million, or $.15 per diluted share, ($16.8 million pre-tax which is included in "Other
(income) expense, net") recorded in connection with costs related
to extinguishment of debt, partially offset by; (ii) an after-tax
unrealized gain of $6.8 million, or
$.08 per diluted share, ($8.9 million pre-tax which is included in "Other
(income) expense, net"), resulting from an increase in the market
value of shares of certain equity securities.
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 $421.7
million during the third quarter of 2022, as compared to
$441.5 million during the third
quarter of 2021. Our adjusted earnings before interest, taxes,
depreciation & amortization ("Adjusted EBITDA net of NCI"),
which excludes the impact of other (income) expense, net, was
$427.8 million during the third
quarter of 2022, as compared to $448.2
million during the third quarter of 2021.
Consolidated Results of Operations, As Reported and As
Adjusted – Nine-month periods ended September 30, 2022 and 2021:
Reported net income attributable to UHS was $500.8 million, or $6.71 per diluted share, during the first nine
months 2022, as compared to $752.5
million, or $8.83 per diluted
share, during the first nine months of 2021. Net revenues increased
by 6.3% to $9.952 billion during the
first nine months of 2022 as compared to $9.367 billion during the comparable period of
2021.
Included in our reported and adjusted net income attributable to
UHS during the nine-month period ended September 30, 2021 was a net favorable after-tax
impact of approximately $31.2
million, or $.37 per diluted
share, from the following: (i) a favorable after-tax impact of
$47.7 million, or $.56 per diluted share, resulting from
approximately $62 million of revenues
recorded during the second and third quarters of 2021 ($55 million and $7
million, respectively) in connection with the Kentucky
Medicaid managed care hospital rate increase program (covering the
period of July 1, 2020 to
June 30, 2021); (ii) an unfavorable
after-tax impact of approximately $31.0
million, or $.36 per diluted
share, resulting from a $41 million
increase to our reserves for self-insured professional and general
liability claims recorded during the second and third quarters of
2021 ($36 million and $5 million, respectively); (iii) an aggregate
favorable after-tax impact of $22.1
million, or $.26 per diluted
share, resulting from aggregate commercial insurance proceeds of
approximately $29 million recorded
during the second and third quarters of 2021 ($19 million and $10
million, respectively) in connection with a previously
incurred information technology incident and the COVID-19 pandemic,
and; (iv) an estimated unfavorable after-tax impact of
approximately $7.6 million
(approximately $10 million pre-tax),
or $.09 per diluted share, resulting
from damage sustained from Hurricane Ida during the third quarter
of 2021.
As reflected on the Supplemental Schedule, our adjusted net
income attributable to UHS during the nine-month period ended
September 30, 2022 was $513.1 million, or $6.88 per diluted share, as compared to
$756.6 million, or $8.88 per diluted share, during the nine-month
period ended September 30,
2021.
As reflected on the Supplemental Schedule, included in our
reported results during the first nine months of 2022, was an
unfavorable after-tax unrealized loss of $12.4 million, or $.17 per diluted share, ($16.1 million pre-tax which is included in "Other
(income) expense, net"), resulting from a decrease in the market
value of certain equity securities.
As reflected on the Supplemental Schedule, included in our
reported results during the nine-month period ended September 30, 2021, was a net aggregate
unfavorable after-tax impact of $4.1
million, or $.05 per diluted
share, consisting of the following: (i) an after-tax charge of
$12.9 million, or $.15 per diluted share, ($16.8 million pre-tax which is included in "Other
(income) expense, net") recorded in connection with costs related
to extinguishment of debt, partially offset by; (ii) an after-tax
unrealized gain of $6.3 million, or
$.07 per diluted share, ($8.2 million pre-tax which is included in "Other
(income) expense, net") resulting from an increase in the market
value of shares of certain equity securities, and; (iii) a
favorable after-tax impact of $2.5
million, or $.03 per diluted
share, resulting from ASU 2016-09 "Compensation – Stock
Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting" ("ASU 2016-09").
As calculated on the attached Supplemental Schedule, our EBITDA
net of NCI was $1.175 billion during
the first nine months of 2022, as compared to $1.450 billion during the first nine months of
2021. Our Adjusted EBITDA net of NCI was $1.190 billion during the first nine months of
2022, as compared to $1.448 billion
during the first nine months of 2021.
Acute Care Services – Three and nine-month periods ended
September 30, 2022 and 2021:
During the third quarter of 2022, at our acute care hospitals
owned during both periods ("same facility basis"), adjusted
admissions (adjusted for outpatient activity) increased by 1.9%
while adjusted patient days decreased by 5.0%, as compared to the
third quarter of 2021. At these facilities, during the third
quarter of 2022, net revenue per adjusted admission decreased by
2.5% while net revenue per adjusted patient day increased 4.5%, as
compared to the third quarter of 2021. Net revenues generated from
our acute care services on a same facility basis increased by 0.9%
during the third quarter of 2022, as compared to the third quarter
of 2021.
During the nine-month period ended September 30, 2022, at our acute care hospitals
on a same facility basis, adjusted admissions increased by 2.2%
while adjusted patient days increased by 0.6%, as compared to the
comparable nine-month period of 2021. At these facilities, during
the first nine months of 2022, net revenue per adjusted admission
increased by 1.0% while net revenue per adjusted patient day
increased by 2.6%, as compared to the comparable nine-month period
of 2021. Net revenues generated from our acute care services on a
same facility basis increased by 4.6% during the first nine months
of 2022, as compared to the comparable nine-month period of
2021.
Behavioral Health Care Services – Three and nine-month
periods ended September 30, 2022 and
2021:
During the third quarter of 2022, at our behavioral health care
facilities on a same facility basis, adjusted admissions increased
by 4.0% while adjusted patient days increased by 3.3%, as compared
to the third quarter of 2021. At these facilities, during the third
quarter of 2022, net revenue per adjusted admission increased by
4.2% and net revenue per adjusted patient day increased by 5.0%, as
compared to the third quarter of 2021. Net revenues generated from
our behavioral health care services increased by 8.4% during the
third quarter of 2022, as compared to the third quarter of
2021.
During the nine-month period ended September 30, 2022, at our behavioral health care
facilities on a same facility basis, adjusted admissions increased
by 0.6% while adjusted patient days increased by 0.9%, as compared
to the comparable nine-month period of 2021. At these facilities,
during the first nine months of 2022, net revenue per adjusted
admission increased by 4.2% and net revenue per adjusted patient
day increased by 3.9%, as compared to the comparable nine-month
period of 2021. Net revenues generated from our behavioral health
care services increased by 4.1% during the first nine months of
2022, as compared to the comparable period of 2021.
COVID-19 and Staffing Shortage
The impact of the COVID-19 pandemic, which began during the
second half of March, 2020, has had a material effect on our
operations and financial results since that time. The length and
extent of the disruptions caused by the COVID‑19 pandemic are
currently unknown; however, we expect such disruptions to continue
into the future. Since the future volumes and severity of COVID-19
patients remain highly uncertain and subject to change, including
potential increases in future COVID-19 patient volumes caused by
new variants of the virus, as well as related pressures on staffing
and wage rates, we are not able to fully quantify the impact that
these factors will have on our future financial results. However,
future developments related to the COVID-19 pandemic could continue
to materially affect our financial performance.
The nationwide shortage of nurses and other clinical staff and
support personnel has been a significant operating issue facing us
and other healthcare providers. Like others in the healthcare
industry, we continue to experience a shortage of nurses and other
clinical staff and support personnel at our acute care and
behavioral health care hospitals in many geographic areas. In some
areas, the labor scarcity is putting a strain on our resources and
staff, which has required us to utilize higher‑cost temporary labor
and pay premiums above standard compensation for essential workers.
This staffing shortage has required us to hire expensive temporary
personnel and/or enhance wages and benefits to recruit and retain
nurses and other clinical staff and support personnel. At certain
facilities, particularly within our behavioral health care segment,
we have been unable to fill all vacant positions and, consequently,
have been required to limit patient volumes. These factors, which
had a material unfavorable impact on our results of operations
during the first nine months of 2022, are expected to continue to
have an unfavorable material impact on our results of operations
for the foreseeable future.
However, as previously disclosed on June
30, 2022, our revised operating results forecast for the
balance of 2022 assumed that staffing vacancies and the
corresponding premium pay expenditures continue to sequentially
decline in the second half of the year and that non-COVID patient
volumes will incrementally improve, although both at a slower pace
than our original forecast anticipated. We believe these
assumptions will be bolstered by our continuing recruitment and
retention initiatives, by changes to our historical patient care
models, by other cost cutting measures and by aggressive
contractual negotiations and renegotiations with our managed care
payers.
Net Cash Provided by Operating Activities and
Liquidity:
Net Cash Provided by Operating Activities:
During the nine-month period ended September 30, 2022, our net cash provided by
operating activities was $699 million
as compared to $562 million during
the comparable nine-month period of 2021. The $137 million net increase in our net cash
provided by operating activities during the first nine months of
2022, as compared to the first nine months of 2021, was due to: (i)
a favorable change of $695 million
resulting from the early return of Medicare accelerated payments
which were received during 2020 and repaid during the first quarter
of 2021, partially offset by; (ii) an unfavorable change of
$245 million resulting from a
decrease in net income plus depreciation and amortization expense,
stock-based compensation expense, gain/loss on sales of assets and
businesses, costs related to extinguishment of debt and provision
for asset impairment; (iii) an unfavorable change of $227 million from other working capital accounts
due primarily to the timing of disbursements for accrued
compensation; (iv) an unfavorable change of $126 million in accounts receivable, and; (v)
$40 million of other combined net
favorable changes.
Liquidity:
As of September 30, 2022, we had
$1.007 billion of aggregate available
borrowing capacity pursuant to our $1.2
billion revolving credit facility, net of outstanding
borrowings and letters of credit.
Stock Repurchase Program:
As of December 31, 2021, we had an
aggregate remaining repurchase authorization of approximately
$358 million pursuant to our stock
repurchase program. In February of 2022, our Board of Directors
authorized a $1.4 billion increase to
the program. As of September 30,
2022, we had an aggregate available repurchase authorization
of $1.05 billion.
Pursuant to the terms of our stock repurchase program, 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. During the third quarter of 2022, we have repurchased
approximately 1.60 million shares at an aggregate cost of
approximately $157.9 million
(approximately $99 per share)
pursuant to the program. During the first nine months of 2022, we
have repurchased approximately 5.85 million shares at an aggregate
cost of approximately $703.7 million
(approximately $120 per share)
pursuant to the program.
Conference call information:
We will hold a conference call for investors and analysts at
9:00 a.m. eastern time on
October 26, 2022. A live webcast of
the call will be available on our website at www.uhs.com. To
participate via telephone, please register in advance by accessing
this link. Upon registration, all telephone participants will
receive a confirmation email detailing how to join the conference
call, including the dial-in number along with a unique passcode and
registrant ID that can be used to access the call. A replay of the
call will be available for one full year following the live
call.
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 during 2021 were approximately
$12.6 billion. In 2022, UHS was again
recognized as one of the World's Most Admired Companies by
Fortune; ranked #297 on the Fortune 500; and in 2021, ranked
#307 on Forbes' list of America's Largest Public
Companies.
Our operating philosophy is as effective today as it was upon
the Company's founding in 1979, 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 over 89,000 employees and through its
subsidiaries operates 28 acute care hospitals, 331 behavioral
health facilities, 41 outpatient facilities and ambulatory care
access points, an insurance offering, a physician network and
various related services located in 39 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 visit www.uhs.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
2-Forward Looking Statements and Risk Factors in our Form 10-Q
for the quarter ended June 30, 2022
and 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,
2021), 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 unfavorably impacted by developments
related to COVID-19 including, but not limited to, the potential
impact on future COVID-19 patient volumes resulting from new
variants of the virus, 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; potential increases to expenses and other
costs related to staffing, supply chain, construction and medical
equipment costs and other expenditures resulting from inflation;
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. In addition,
please see the disclosure above in COVID-19 and Staffing
Shortage, in connection with the nationwide shortage of nurses
and other clinical staff and support personnel which has had, and
is expected to continue to have, a material unfavorable impact on
our results of operations.
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, changes in the market value of shares
of certain equity securities and other potential material items
that are nonrecurring or non-operational in nature including, but
not limited to, impairments of goodwill and long-lived and
intangible assets, reserves for various matters including
settlements, legal judgments and lawsuits, costs related to
extinguishment of debt, gains/losses on sales of assets and
businesses, and other amounts that may be reflected in the current
or prior year financial statements that relate to prior periods. To
obtain a complete understanding of our financial performance these
measures should be examined in connection with net income
attributable to UHS, as determined in accordance with GAAP, and as
presented in the condensed consolidated financial statements and
notes thereto in this report or in our other filings with the
Securities and Exchange Commission including our Report on Form
10-Q for the quarter ended June 30,
2022 and our Report on Form 10-K for the year ended
December 31, 2021. Since the items
included or excluded from these measures are significant components
in understanding and assessing financial performance under GAAP,
these measures should not be considered to be alternatives to net
income as a measure of our operating performance or profitability.
Since these measures, as presented, are not determined in
accordance with GAAP and are thus susceptible to varying
calculations, they may not be comparable to other similarly titled
measures of other companies. Investors are encouraged to use GAAP
measures when evaluating our financial performance.
Universal Health Services, Inc.
|
Consolidated Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
|
|
Nine months
|
|
ended September
30,
|
|
ended September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
Net revenues
|
$3,336,027
|
|
$3,155,999
|
|
$9,952,390
|
|
$9,366,866
|
|
|
|
|
|
|
|
|
Operating charges:
|
|
|
|
|
|
|
|
Salaries,
wages and benefits
|
1,677,431
|
|
1,556,448
|
|
5,061,173
|
|
4,542,156
|
Other
operating expenses
|
837,241
|
|
754,072
|
|
2,526,060
|
|
2,233,590
|
Supplies
expense
|
366,337
|
|
367,834
|
|
1,092,403
|
|
1,052,977
|
Depreciation and amortization
|
145,874
|
|
134,462
|
|
433,508
|
|
399,850
|
Lease and
rental expense
|
33,264
|
|
28,375
|
|
97,075
|
|
88,848
|
|
3,060,147
|
|
2,841,191
|
|
9,210,219
|
|
8,317,421
|
|
|
|
|
|
|
|
|
Income from
operations
|
275,880
|
|
314,808
|
|
742,171
|
|
1,049,445
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
35,653
|
|
21,199
|
|
83,002
|
|
64,455
|
Other (income) expense,
net
|
6,015
|
|
6,719
|
|
15,244
|
|
(1,575)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
234,212
|
|
286,890
|
|
643,925
|
|
986,565
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
57,401
|
|
67,515
|
|
157,312
|
|
232,844
|
|
|
|
|
|
|
|
|
Net income
|
176,811
|
|
219,375
|
|
486,613
|
|
753,721
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to
|
|
|
|
|
|
|
|
noncontrolling
interests ("NCI")
|
(6,003)
|
|
1,024
|
|
(14,176)
|
|
1,255
|
|
|
|
|
|
|
|
|
Net income attributable
to UHS
|
$182,814
|
|
$218,351
|
|
$500,789
|
|
$752,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS (a)
|
$2.52
|
|
$2.65
|
|
$6.78
|
|
$8.96
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS (a)
|
$2.50
|
|
$2.60
|
|
$6.71
|
|
$8.83
|
Universal Health Services, Inc.
|
Footnotes to Consolidated Statements of
Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
|
|
Nine months
|
(a) Earnings per share
calculation:
|
ended September
30,
|
|
ended September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Basic and diluted:
|
|
|
|
|
|
|
|
Net income attributable
to UHS
|
$182,814
|
|
$218,351
|
|
$500,789
|
|
$752,466
|
Less: Net income
attributable to unvested restricted share grants
|
(179)
|
|
(396)
|
|
(592)
|
|
(1,609)
|
Net income attributable
to UHS - basic and diluted
|
$182,635
|
|
$217,955
|
|
$500,197
|
|
$750,857
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares - basic
|
72,595
|
|
82,262
|
|
73,769
|
|
83,756
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS:
|
$2.52
|
|
$2.65
|
|
$6.78
|
|
$8.96
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares
|
72,595
|
|
82,262
|
|
73,769
|
|
83,756
|
Add: Other share
equivalents
|
465
|
|
1,411
|
|
743
|
|
1,275
|
Weighted average number
of common shares and equiv. - diluted
|
73,060
|
|
83,673
|
|
74,512
|
|
85,031
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS:
|
$2.50
|
|
$2.60
|
|
$6.71
|
|
$8.83
|
|
|
|
|
|
|
|
|
Universal Health Services, Inc.
|
Schedule of Non-GAAP Supplemental Information
("Supplemental Schedule")
|
For the Three Months ended September 30, 2022 and
2021
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Earnings/Adjusted Earnings Before
Interest, Taxes, Depreciation
and Amortization ("EBITDA/Adjusted EBITDA net of
NCI")
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
% Net
|
|
Three months
ended
|
|
% Net
|
|
September 30,
2022
|
|
revenues
|
|
September 30,
2021
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income attributable
to UHS
|
$182,814
|
|
|
|
$218,351
|
|
|
Depreciation and amortization
|
145,874
|
|
|
|
134,462
|
|
|
Interest
expense, net
|
35,653
|
|
|
|
21,199
|
|
|
Provision
for income taxes
|
57,401
|
|
|
|
67,515
|
|
|
EBITDA net of
NCI
|
$421,742
|
|
12.6 %
|
|
$441,527
|
|
14.0 %
|
|
|
|
|
|
|
|
|
Other (income) expense,
net
|
6,015
|
|
|
|
6,719
|
|
|
Adjusted EBITDA net of
NCI
|
$427,757
|
|
12.8 %
|
|
$448,246
|
|
14.2 %
|
|
|
|
|
|
|
|
|
Net revenues
|
$3,336,027
|
|
|
|
$3,155,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Adjusted Net Income Attributable to
UHS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income attributable
to UHS
|
$182,814
|
|
$2.50
|
|
$218,351
|
|
$2.60
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Unrealized (gain) loss
on equity securities
|
2,974
|
|
0.04
|
|
(6,785)
|
|
(0.08)
|
Debt extinguishment
costs
|
-
|
|
-
|
|
12,884
|
|
0.15
|
Impact of ASU
2016-09
|
-
|
|
-
|
|
(323)
|
|
-
|
Subtotal
adjustments
|
2,974
|
|
0.04
|
|
5,776
|
|
0.07
|
Adjusted net income
attributable to UHS
|
$185,788
|
|
$2.54
|
|
$224,127
|
|
$2.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Universal Health Services, Inc.
|
Schedule of Non-GAAP Supplemental Information
("Supplemental Schedule")
|
For the Nine Months ended September 30, 2022 and
2021
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Earnings/Adjusted Earnings Before
Interest, Taxes, Depreciation and
Amortization ("EBITDA/Adjusted EBITDA net of
NCI")
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
% Net
|
|
Nine months
ended
|
|
% Net
|
|
September 30,
2022
|
|
revenues
|
|
September 30,
2021
|
|
revenues
|
|
|
|
|
|
|
|
|
Net income attributable
to UHS
|
$500,789
|
|
|
|
$752,466
|
|
|
Depreciation and amortization
|
433,508
|
|
|
|
399,850
|
|
|
Interest
expense, net
|
83,002
|
|
|
|
64,455
|
|
|
Provision
for income taxes
|
157,312
|
|
|
|
232,844
|
|
|
EBITDA net of
NCI
|
$1,174,611
|
|
11.8 %
|
|
$1,449,615
|
|
15.5 %
|
|
|
|
|
|
|
|
|
Other (income) expense,
net
|
15,244
|
|
|
|
(1,575)
|
|
|
Adjusted EBITDA net of
NCI
|
$1,189,855
|
|
12.0 %
|
|
$1,448,040
|
|
15.5 %
|
|
|
|
|
|
|
|
|
Net revenues
|
$9,952,390
|
|
|
|
$9,366,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Adjusted Net Income Attributable to
UHS
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
Nine months
ended
|
|
September 30,
2022
|
|
September 30,
2021
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
|
|
|
|
|
|
|
|
Net income attributable
to UHS
|
$500,789
|
|
$6.71
|
|
$752,466
|
|
$8.83
|
Plus/minus after-tax
adjustments:
|
|
|
|
|
|
|
|
Unrealized (gain) loss
on equity securities
|
12,358
|
|
0.17
|
|
(6,255)
|
|
(0.07)
|
Debt extinguishment
costs
|
-
|
|
-
|
|
12,884
|
|
0.15
|
Impact of ASU
2016-09
|
-
|
|
-
|
|
(2,522)
|
|
(0.03)
|
Subtotal
adjustments
|
12,358
|
|
0.17
|
|
4,107
|
|
0.05
|
Adjusted net income
attributable to UHS
|
$513,147
|
|
$6.88
|
|
$756,573
|
|
$8.88
|
|
|
|
|
|
|
|
|
Universal Health Services, Inc.
|
|
Condensed Consolidated Balance
Sheets
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2022
|
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
74,571
|
|
$
|
115,301
|
|
Accounts receivable, net
|
|
|
1,902,472
|
|
|
1,746,635
|
|
Supplies
|
|
|
217,818
|
|
|
206,839
|
|
Other current assets
|
|
|
261,698
|
|
|
194,781
|
|
Total current assets
|
|
|
2,456,559
|
|
|
2,263,556
|
|
|
|
|
|
|
|
|
|
Property and
equipment
|
|
|
11,103,596
|
|
|
10,770,702
|
|
Less: accumulated
depreciation
|
|
|
(5,167,198)
|
|
|
(4,896,427)
|
|
|
|
|
5,936,398
|
|
|
5,874,275
|
|
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
|
Goodwill
|
|
|
3,874,021
|
|
|
3,962,624
|
|
Deferred income taxes
|
|
|
55,789
|
|
|
45,707
|
|
Right of use assets-operating leases
|
|
|
457,209
|
|
|
367,477
|
|
Deferred charges
|
|
|
6,336
|
|
|
6,525
|
|
Other
|
|
|
592,588
|
|
|
573,379
|
|
Total Assets
|
|
$
|
13,378,900
|
|
$
|
13,093,543
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
66,307
|
|
$
|
48,409
|
|
Accounts payable and other liabilities
|
|
|
1,795,004
|
|
|
1,860,496
|
|
Operating lease liabilities
|
|
|
70,146
|
|
|
64,484
|
|
Federal and state taxes
|
|
|
7,743
|
|
|
10,720
|
|
Total current liabilities
|
|
|
1,939,200
|
|
|
1,984,109
|
|
|
|
|
|
|
|
|
|
Other noncurrent
liabilities
|
|
|
500,119
|
|
|
464,759
|
|
Operating lease
liabilities noncurrent
|
|
|
392,582
|
|
|
304,624
|
|
Long-term
debt
|
|
|
4,638,356
|
|
|
4,141,879
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
4,563
|
|
|
5,119
|
|
|
|
|
|
|
|
|
|
UHS common
stockholders' equity
|
|
|
5,855,353
|
|
|
6,089,664
|
|
Noncontrolling
interest
|
|
|
48,727
|
|
|
103,389
|
|
Total equity
|
|
|
5,904,080
|
|
|
6,193,053
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
13,378,900
|
|
$
|
13,093,543
|
|
|
|
|
|
|
|
|
|
Universal Health Services, Inc.
|
Consolidated Statements of Cash
Flows
|
(in
thousands)
|
(unaudited)
|
|
Nine months
|
|
ended September
30,
|
|
2022
|
|
2021
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$486,613
|
|
$753,721
|
Adjustments to
reconcile net income to net
|
|
|
|
cash provided by
operating activities:
|
|
|
|
Depreciation &
amortization
|
433,508
|
|
399,850
|
(Gain) loss on sale of
assets and businesses
|
584
|
|
(4,803)
|
Costs related to
extinguishment of debt
|
0
|
|
16,831
|
Stock-based
compensation expense
|
62,741
|
|
55,548
|
Provision for asset
impairment
|
0
|
|
7,195
|
Changes in
assets & liabilities, net of effects from
|
|
|
|
acquisitions and
dispositions:
|
|
|
|
Accounts
receivable
|
(155,142)
|
|
(29,079)
|
Accrued
interest
|
529
|
|
3,714
|
Accrued
and deferred income taxes
|
(4,900)
|
|
(52,727)
|
Other
working capital accounts
|
(173,903)
|
|
52,616
|
Medicare
accelerated payments and deferred CARES Act and other
grants
|
2,921
|
|
(697,393)
|
Other
assets and deferred charges
|
22,219
|
|
(34,038)
|
Other
|
(23,358)
|
|
9,607
|
Accrued
insurance expense, net of commercial premiums paid
|
134,908
|
|
140,702
|
Payments
made in settlement of self-insurance claims
|
(88,001)
|
|
(60,069)
|
Net cash provided by operating activities
|
698,719
|
|
561,675
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Property
and equipment additions
|
(569,555)
|
|
(666,025)
|
Proceeds
received from sales of assets and businesses
|
12,001
|
|
21,143
|
Acquisition of businesses and property
|
(18,666)
|
|
(39,391)
|
Inflows
from foreign exchange contracts that hedge our net U.K.
investment
|
177,214
|
|
4,261
|
Decrease
in capital reserves of commercial insurance
subsidiary
|
100
|
|
100
|
Costs
incurred for purchase of information technology applications, net
of refunds
|
0
|
|
20,202
|
Net cash used in investing activities
|
(398,906)
|
|
(659,710)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Repayments
of long-term debt
|
(194,115)
|
|
(3,026,888)
|
Additional
borrowings
|
705,321
|
|
2,912,374
|
Financing
costs
|
(2,541)
|
|
(17,967)
|
Repurchase
of common shares
|
(723,384)
|
|
(770,665)
|
Dividends
paid
|
(44,192)
|
|
(50,284)
|
Issuance
of common stock
|
10,399
|
|
10,108
|
Profit
distributions to noncontrolling interests
|
(5,426)
|
|
(5,744)
|
Purchase
(sale) of ownership interests by (from) minority members
|
(49,089)
|
|
13,046
|
Net cash used in financing activities
|
(303,027)
|
|
(936,020)
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash
|
(10,339)
|
|
(682)
|
Decrease in cash, cash
equivalents and restricted cash
|
(13,553)
|
|
(1,034,737)
|
Cash, cash equivalents
and restricted cash, beginning of period
|
178,934
|
|
1,279,154
|
Cash, cash equivalents
and restricted cash, end of period
|
$165,381
|
|
$244,417
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
Interest
paid
|
$78,992
|
|
$58,719
|
|
|
|
|
Income taxes
paid, net of refunds
|
$182,091
|
|
$286,376
|
|
|
|
|
Noncash
purchases of property and equipment
|
$97,264
|
|
$73,428
|
|
|
|
|
|
|
|
|
Universal Health Services, Inc.
|
Supplemental Statistical
Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
%
Change
|
|
|
|
|
|
|
|
3 Months
ended
|
|
9 Months
ended
|
Same Facility:
|
|
|
|
|
|
|
9/30/2022
|
|
9/30/2022
|
|
|
|
|
|
|
|
|
|
|
Acute Care Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
0.9 %
|
|
4.6 %
|
Adjusted
Admissions
|
|
|
|
|
|
|
1.9 %
|
|
2.2 %
|
Adjusted Patient
Days
|
|
|
|
|
|
|
-5.0 %
|
|
0.6 %
|
Revenue Per Adjusted
Admission
|
|
|
|
|
|
|
-2.5 %
|
|
1.0 %
|
Revenue Per Adjusted
Patient Day
|
|
|
|
|
|
|
4.5 %
|
|
2.6 %
|
|
|
|
|
|
|
|
|
|
|
Behavioral Health Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
8.4 %
|
|
4.1 %
|
Adjusted
Admissions
|
|
|
|
|
|
|
4.0 %
|
|
0.6 %
|
Adjusted Patient
Days
|
|
|
|
|
|
|
3.3 %
|
|
0.9 %
|
Revenue Per Adjusted
Admission
|
|
|
|
|
|
|
4.2 %
|
|
4.2 %
|
Revenue Per Adjusted
Patient Day
|
|
|
|
|
|
|
5.0 %
|
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
UHS
Consolidated
|
|
|
Third Quarter
Ended
|
|
Nine Months
Ended
|
|
|
|
9/30/2022
|
|
9/30/2021
|
|
9/30/2022
|
|
9/30/2021
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$3,336,027
|
|
$3,155,999
|
|
$9,952,390
|
|
$9,366,866
|
EBITDA net of
NCI
|
|
|
$421,742
|
|
$441,527
|
|
$1,174,611
|
|
$1,449,615
|
EBITDA Margin net of
NCI
|
|
|
12.6 %
|
|
14.0 %
|
|
11.8 %
|
|
15.5 %
|
Adjusted EBITDA net of
NCI
|
|
|
$427,757
|
|
$448,246
|
|
$1,189,855
|
|
$1,448,040
|
Adjusted EBITDA Margin
net of NCI
|
|
|
12.8 %
|
|
14.2 %
|
|
12.0 %
|
|
15.5 %
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From
Operations
|
|
|
$220,672
|
|
$442,227
|
|
$698,719
|
|
$561,675
|
Days Sales
Outstanding
|
|
|
52
|
|
51
|
|
52
|
|
51
|
Capital
Expenditures
|
|
|
$161,593
|
|
$183,814
|
|
$569,555
|
|
$666,025
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
|
$4,704,663
|
|
$3,754,277
|
UHS' Shareholders
Equity
|
|
|
|
|
|
|
$5,855,353
|
|
$6,274,021
|
Debt / Total
Capitalization
|
|
|
|
|
|
|
44.6 %
|
|
37.4 %
|
Debt / EBITDA net of
NCI (1)
|
|
|
|
|
|
|
2.87
|
|
1.87
|
Debt / Adjusted EBITDA
net of NCI (1)
|
|
|
|
|
|
2.87
|
|
1.88
|
Debt / Cash From
Operations (1)
|
|
|
|
|
|
|
4.61
|
|
5.34
|
|
|
|
|
|
|
|
|
|
|
(1) Latest 4
quarters.
|
|
|
|
|
|
|
|
|
|
Universal Health Services, Inc.
|
Acute Care Hospital Services
|
For the Three and Nine
Months ended
|
September 30, 2022 and
2021
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility Basis - Acute Care Hospital
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2022
|
|
September 30,
2021
|
|
September 30,
2022
|
|
September 30,
2021
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues
|
|
$1,813,899
|
|
100.0 %
|
|
$1,797,161
|
|
100.0 %
|
|
$5,419,224
|
|
100.0 %
|
|
$5,182,893
|
|
100.0 %
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
791,902
|
|
43.7 %
|
|
756,524
|
|
42.1 %
|
|
2,405,034
|
|
44.4 %
|
|
2,154,354
|
|
41.6 %
|
Other operating
expenses
|
|
474,086
|
|
26.1 %
|
|
411,348
|
|
22.9 %
|
|
1,380,670
|
|
25.5 %
|
|
1,216,665
|
|
23.5 %
|
Supplies
expense
|
|
299,888
|
|
16.5 %
|
|
316,890
|
|
17.6 %
|
|
903,092
|
|
16.7 %
|
|
902,479
|
|
17.4 %
|
Depreciation and
amortization
|
|
88,931
|
|
4.9 %
|
|
82,811
|
|
4.6 %
|
|
269,506
|
|
5.0 %
|
|
246,954
|
|
4.8 %
|
Lease and rental
expense
|
|
18,738
|
|
1.0 %
|
|
17,508
|
|
1.0 %
|
|
53,804
|
|
1.0 %
|
|
55,666
|
|
1.1 %
|
Subtotal-operating
expenses
|
|
1,673,545
|
|
92.3 %
|
|
1,585,081
|
|
88.2 %
|
|
5,012,106
|
|
92.5 %
|
|
4,576,118
|
|
88.3 %
|
Income from
operations
|
|
140,354
|
|
7.7 %
|
|
212,080
|
|
11.8 %
|
|
407,118
|
|
7.5 %
|
|
606,775
|
|
11.7 %
|
Interest expense,
net
|
|
234
|
|
0.0 %
|
|
255
|
|
0.0 %
|
|
1,350
|
|
0.0 %
|
|
749
|
|
0.0 %
|
Other (income) expense,
net
|
|
384
|
|
0.0 %
|
|
436
|
|
0.0 %
|
|
806
|
|
0.0 %
|
|
436
|
|
0.0 %
|
Income before income
taxes
|
|
$139,736
|
|
7.7 %
|
|
$211,389
|
|
11.8 %
|
|
$404,962
|
|
7.5 %
|
|
$605,590
|
|
11.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Acute Care Hospital
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Three months ended
|
|
Nine months ended
|
|
Nine months ended
|
|
|
September 30, 2022
|
|
September 30, 2021
|
|
September 30, 2022
|
|
September 30, 2021
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues
|
|
$1,919,678
|
|
100.0 %
|
|
$1,822,027
|
|
100.0 %
|
|
$5,707,510
|
|
100.0 %
|
|
$5,271,000
|
|
100.0 %
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
824,942
|
|
43.0 %
|
|
757,962
|
|
41.6 %
|
|
2,497,888
|
|
43.8 %
|
|
2,157,060
|
|
40.9 %
|
Other operating
expenses
|
|
535,463
|
|
27.9 %
|
|
436,475
|
|
24.0 %
|
|
1,550,044
|
|
27.2 %
|
|
1,305,544
|
|
24.8 %
|
Supplies
expense
|
|
311,404
|
|
16.2 %
|
|
316,950
|
|
17.4 %
|
|
935,559
|
|
16.4 %
|
|
902,654
|
|
17.1 %
|
Depreciation and
amortization
|
|
96,020
|
|
5.0 %
|
|
83,794
|
|
4.6 %
|
|
285,558
|
|
5.0 %
|
|
248,462
|
|
4.7 %
|
Lease and rental
expense
|
|
21,990
|
|
1.1 %
|
|
17,518
|
|
1.0 %
|
|
63,324
|
|
1.1 %
|
|
55,676
|
|
1.1 %
|
Subtotal-operating
expenses
|
|
1,789,819
|
|
93.2 %
|
|
1,612,699
|
|
88.5 %
|
|
5,332,373
|
|
93.4 %
|
|
4,669,396
|
|
88.6 %
|
Income from
operations
|
|
129,859
|
|
6.8 %
|
|
209,328
|
|
11.5 %
|
|
375,137
|
|
6.6 %
|
|
601,604
|
|
11.4 %
|
Interest expense,
net
|
|
234
|
|
0.0 %
|
|
255
|
|
0.0 %
|
|
1,350
|
|
0.0 %
|
|
749
|
|
0.0 %
|
Other (income) expense,
net
|
|
384
|
|
0.0 %
|
|
436
|
|
0.0 %
|
|
806
|
|
0.0 %
|
|
436
|
|
0.0 %
|
Income before income
taxes
|
|
$129,241
|
|
6.7 %
|
|
$208,637
|
|
11.5 %
|
|
$372,981
|
|
6.5 %
|
|
$600,419
|
|
11.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2021 and Form 10-Q for the quarter ended June 30,
2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The All Acute Care
Hospital Services table summarizes the results of operations for
all our acute care operations during the periods presented. These
amounts include: (i) our acute care results on a same facility
basis, as indicated above; (ii) the impact of provider tax
assessments which increased net revenues and other operating
expenses but had no impact on income before income taxes, and;
(iii) certain other amounts including the results of
facilities acquired or opened during the last twelve
months.
|
Universal Health
Services, Inc.
|
Behavioral Health Care
Services
|
For the Three and Nine
Months ended
|
September 30, 2022 and
2021
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Facility -
Behavioral Health Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2022
|
|
September 30,
2021
|
|
September 30,
2022
|
|
September 30,
2021
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues
|
|
$1,403,013
|
|
100.0 %
|
|
$1,294,141
|
|
100.0 %
|
|
$4,148,344
|
|
100.0 %
|
|
$3,984,260
|
|
100.0 %
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
774,406
|
|
55.2 %
|
|
717,807
|
|
55.5 %
|
|
2,288,386
|
|
55.2 %
|
|
2,125,205
|
|
53.3 %
|
Other operating
expenses
|
|
271,295
|
|
19.3 %
|
|
267,083
|
|
20.6 %
|
|
811,223
|
|
19.6 %
|
|
774,583
|
|
19.4 %
|
Supplies
expense
|
|
55,036
|
|
3.9 %
|
|
51,111
|
|
3.9 %
|
|
156,976
|
|
3.8 %
|
|
150,902
|
|
3.8 %
|
Depreciation and
amortization
|
|
44,566
|
|
3.2 %
|
|
46,004
|
|
3.6 %
|
|
134,451
|
|
3.2 %
|
|
137,417
|
|
3.4 %
|
Lease and rental
expense
|
|
10,617
|
|
0.8 %
|
|
10,012
|
|
0.8 %
|
|
32,026
|
|
0.8 %
|
|
30,999
|
|
0.8 %
|
Subtotal-operating
expenses
|
|
1,155,920
|
|
82.4 %
|
|
1,092,017
|
|
84.4 %
|
|
3,423,062
|
|
82.5 %
|
|
3,219,106
|
|
80.8 %
|
Income from
operations
|
|
247,093
|
|
17.6 %
|
|
202,124
|
|
15.6 %
|
|
725,282
|
|
17.5 %
|
|
765,154
|
|
19.2 %
|
Interest expense,
net
|
|
1,151
|
|
0.1 %
|
|
994
|
|
0.1 %
|
|
2,757
|
|
0.1 %
|
|
2,321
|
|
0.1 %
|
Other (income) expense,
net
|
|
(664)
|
|
(0.0) %
|
|
27
|
|
0.0 %
|
|
(1,422)
|
|
(0.0) %
|
|
435
|
|
0.0 %
|
Income before income
taxes
|
|
246,606
|
|
17.6 %
|
|
$201,103
|
|
15.5 %
|
|
$723,947
|
|
17.5 %
|
|
$762,398
|
|
19.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Behavioral Health
Care Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
Nine months
ended
|
|
Nine months
ended
|
|
|
September 30,
2022
|
|
September 30,
2021
|
|
September 30,
2022
|
|
September 30,
2021
|
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
|
Amount
|
|
% of Net
Revenues
|
Net revenues
|
|
$1,434,828
|
|
100.0 %
|
|
$1,328,293
|
|
100.0 %
|
|
$4,235,215
|
|
100.0 %
|
|
$4,075,127
|
|
100.0 %
|
Operating
charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and
benefits
|
|
782,909
|
|
54.6 %
|
|
727,137
|
|
54.7 %
|
|
2,310,761
|
|
54.6 %
|
|
2,144,735
|
|
52.6 %
|
Other operating
expenses
|
|
300,406
|
|
20.9 %
|
|
292,794
|
|
22.0 %
|
|
898,655
|
|
21.2 %
|
|
847,780
|
|
20.8 %
|
Supplies
expense
|
|
55,482
|
|
3.9 %
|
|
51,712
|
|
3.9 %
|
|
158,315
|
|
3.7 %
|
|
152,273
|
|
3.7 %
|
Depreciation and
amortization
|
|
46,861
|
|
3.3 %
|
|
47,205
|
|
3.6 %
|
|
138,803
|
|
3.3 %
|
|
140,870
|
|
3.5 %
|
Lease and rental
expense
|
|
11,010
|
|
0.8 %
|
|
10,421
|
|
0.8 %
|
|
32,803
|
|
0.8 %
|
|
31,789
|
|
0.8 %
|
Subtotal-operating
expenses
|
|
1,196,668
|
|
83.4 %
|
|
1,129,269
|
|
85.0 %
|
|
3,539,337
|
|
83.6 %
|
|
3,317,447
|
|
81.4 %
|
Income from
operations
|
|
238,160
|
|
16.6 %
|
|
199,024
|
|
15.0 %
|
|
695,878
|
|
16.4 %
|
|
757,680
|
|
18.6 %
|
Interest expense,
net
|
|
1,375
|
|
0.1 %
|
|
1,218
|
|
0.1 %
|
|
4,106
|
|
0.1 %
|
|
3,564
|
|
0.1 %
|
Other (income) expense,
net
|
|
(1,164)
|
|
(0.1) %
|
|
27
|
|
0.0 %
|
|
(1,922)
|
|
(0.0) %
|
|
435
|
|
0.0 %
|
Income before income
taxes
|
|
237,949
|
|
16.6 %
|
|
$197,779
|
|
14.9 %
|
|
$693,694
|
|
16.4 %
|
|
$753,681
|
|
18.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We believe that
providing our results on a "Same Facility" basis (which is a
non-GAAP measure), which includes the operating results for
facilities and businesses operated in both the current year and
prior year periods, is helpful to our investors as a measure of our
operating performance. Our Same Facility results also neutralize
(if applicable), the effect of material items that are nonrecurring
or non-operational in nature including items such as, but not
limited to, reserves for various matters, settlements, legal
judgments, 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, 2021
and Form 10-Q for the quarter ended June 30, 2022.
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The All Behavioral
Health Care Services table summarizes the results of operations for
all our behavioral health care facilities during the periods
presented. These amounts include: (i) our behavioral health
results on a same facility basis, as indicated above; (ii) the
impact of provider tax assessments which increased net revenues and
other operating expenses but had no impact on income before income
taxes, and; (iii) certain other amounts including the results
of facilities acquired or opened during the last twelve months as
well as the results of certain facilities that were closed or
restructured during the past year.
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Universal Health
Services, Inc.
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Selected Hospital
Statistics
|
|
For the Three Months
ended
|
|
September 30, 2022 and
2021
|
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|
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|
|
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|
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AS REPORTED:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
|
9/30/22
|
|
9/30/21
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|
%
change
|
|
9/30/22
|
|
9/30/21
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
28
|
|
27
|
|
3.7 %
|
|
331
|
|
333
|
|
-0.6 %
|
|
Average licensed
beds
|
|
6,982
|
|
6,579
|
|
6.1 %
|
|
24,222
|
|
24,189
|
|
0.1 %
|
|
Average available
beds
|
|
6,810
|
|
6,407
|
|
6.3 %
|
|
24,122
|
|
24,084
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|
0.2 %
|
|
Patient days
|
|
386,341
|
|
416,422
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|
-7.2 %
|
|
1,588,532
|
|
1,537,206
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|
3.3 %
|
|
Average daily
census
|
|
4,199.4
|
|
4,526.3
|
|
-7.2 %
|
|
17,266.7
|
|
16,708.8
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|
3.3 %
|
|
Occupancy-licensed
beds
|
|
60.1 %
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|
68.8 %
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|
-12.6 %
|
|
71.3 %
|
|
69.1 %
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|
3.2 %
|
|
Occupancy-available
beds
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|
61.7 %
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|
70.6 %
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-12.7 %
|
|
71.6 %
|
|
69.4 %
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|
3.1 %
|
|
Admissions
|
|
78,221
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|
78,799
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-0.7 %
|
|
117,913
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|
113,448
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3.9 %
|
|
Length of
stay
|
|
4.9
|
|
5.3
|
|
-6.8 %
|
|
13.4
|
|
13.4
|
|
0.0 %
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Inpatient
revenue
|
|
$9,875,794
|
|
$9,497,975
|
|
4.0 %
|
|
$2,582,448
|
|
$2,470,401
|
|
4.5 %
|
|
Outpatient
revenue
|
|
6,379,324
|
|
5,343,246
|
|
19.4 %
|
|
248,167
|
|
242,976
|
|
2.1 %
|
|
Total patient
revenue
|
|
16,255,118
|
|
14,841,221
|
|
9.5 %
|
|
2,830,615
|
|
2,713,377
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4.3 %
|
|
Other
revenue
|
|
215,179
|
|
173,063
|
|
24.3 %
|
|
67,228
|
|
56,337
|
|
19.3 %
|
|
Gross hospital
revenue
|
|
16,470,297
|
|
15,014,284
|
|
9.7 %
|
|
2,897,843
|
|
2,769,714
|
|
4.6 %
|
|
Total
deductions
|
|
14,550,619
|
|
13,192,257
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10.3 %
|
|
1,463,015
|
|
1,441,421
|
|
1.5 %
|
|
Net hospital
revenue
|
|
$1,919,678
|
|
$1,822,027
|
|
5.4 %
|
|
$1,434,828
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|
$1,328,293
|
|
8.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
SAME
FACILITY:
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
|
9/30/22
|
|
9/30/21
|
|
%
change
|
|
9/30/22
|
|
9/30/21
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
27
|
|
27
|
|
0.0 %
|
|
326
|
|
326
|
|
0.0 %
|
|
Average licensed
beds
|
|
6,780
|
|
6,579
|
|
3.1 %
|
|
23,772
|
|
23,692
|
|
0.3 %
|
|
Average available
beds
|
|
6,608
|
|
6,407
|
|
3.1 %
|
|
23,672
|
|
23,588
|
|
0.4 %
|
|
Patient days
|
|
379,003
|
|
416,422
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|
-9.0 %
|
|
1,570,265
|
|
1,515,691
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|
3.6 %
|
|
Average daily
census
|
|
4,119.6
|
|
4,526.3
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-9.0 %
|
|
17,068.1
|
|
16,474.9
|
|
3.6 %
|
|
Occupancy-licensed
beds
|
|
60.8 %
|
|
68.8 %
|
|
-11.7 %
|
|
71.8 %
|
|
69.5 %
|
|
3.3 %
|
|
Occupancy-available
beds
|
|
62.3 %
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|
70.6 %
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-11.7 %
|
|
72.1 %
|
|
69.8 %
|
|
3.2 %
|
|
Admissions
|
|
76,875
|
|
78,799
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-2.4 %
|
|
116,159
|
|
111,359
|
|
4.3 %
|
|
Length of
stay
|
|
4.9
|
|
5.3
|
|
-6.7 %
|
|
13.5
|
|
13.6
|
|
-0.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the Nine Months
ended
|
September 30, 2022 and
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
9/30/22
|
|
9/30/21
|
|
%
change
|
|
9/30/22
|
|
9/30/21
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
28
|
|
27
|
|
3.7 %
|
|
331
|
|
333
|
|
-0.6 %
|
Average licensed
beds
|
|
6,901
|
|
6,534
|
|
5.6 %
|
|
24,269
|
|
24,121
|
|
0.6 %
|
Average available
beds
|
|
6,729
|
|
6,362
|
|
5.8 %
|
|
24,169
|
|
24,018
|
|
0.6 %
|
Patient days
|
|
1,168,248
|
|
1,171,141
|
|
-0.2 %
|
|
4,669,598
|
|
4,636,270
|
|
0.7 %
|
Average daily
census
|
|
4,279.3
|
|
4,289.9
|
|
-0.2 %
|
|
17,104.8
|
|
16,982.7
|
|
0.7 %
|
Occupancy-licensed
beds
|
|
62.0 %
|
|
65.7 %
|
|
-5.6 %
|
|
70.5 %
|
|
70.4 %
|
|
0.1 %
|
Occupancy-available
beds
|
|
63.6 %
|
|
67.4 %
|
|
-5.6 %
|
|
70.8 %
|
|
70.7 %
|
|
0.1 %
|
Admissions
|
|
230,223
|
|
227,944
|
|
1.0 %
|
|
346,973
|
|
345,874
|
|
0.3 %
|
Length of
stay
|
|
5.1
|
|
5.1
|
|
-0.5 %
|
|
13.5
|
|
13.4
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$29,821,756
|
|
$27,279,494
|
|
9.3 %
|
|
$7,580,475
|
|
$7,471,742
|
|
1.5 %
|
Outpatient
revenue
|
|
18,360,902
|
|
15,281,854
|
|
20.1 %
|
|
773,769
|
|
756,068
|
|
2.3 %
|
Total patient
revenue
|
|
48,182,658
|
|
42,561,348
|
|
13.2 %
|
|
8,354,244
|
|
8,227,810
|
|
1.5 %
|
Other
revenue
|
|
602,635
|
|
484,227
|
|
24.5 %
|
|
209,284
|
|
189,474
|
|
10.5 %
|
Gross hospital
revenue
|
|
48,785,293
|
|
43,045,575
|
|
13.3 %
|
|
8,563,528
|
|
8,417,284
|
|
1.7 %
|
Total
deductions
|
|
43,077,783
|
|
37,774,575
|
|
14.0 %
|
|
4,328,313
|
|
4,342,157
|
|
-0.3 %
|
Net hospital
revenue
|
|
$5,707,510
|
|
$5,271,000
|
|
8.3 %
|
|
$4,235,215
|
|
$4,075,127
|
|
3.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
BEHAVIORAL
HEALTH
|
|
|
9/30/22
|
|
9/30/21
|
|
%
change
|
|
9/30/22
|
|
9/30/21
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
27
|
|
27
|
|
0.0 %
|
|
326
|
|
326
|
|
0.0 %
|
Average licensed
beds
|
|
6,737
|
|
6,534
|
|
3.1 %
|
|
23,857
|
|
23,762
|
|
0.4 %
|
Average available
beds
|
|
6,565
|
|
6,362
|
|
3.2 %
|
|
23,757
|
|
23,659
|
|
0.4 %
|
Patient days
|
|
1,149,494
|
|
1,171,141
|
|
-1.8 %
|
|
4,624,511
|
|
4,583,943
|
|
0.9 %
|
Average daily
census
|
|
4,210.6
|
|
4,289.9
|
|
-1.8 %
|
|
16,939.6
|
|
16,791.0
|
|
0.9 %
|
Occupancy-licensed
beds
|
|
62.5 %
|
|
65.7 %
|
|
-4.8 %
|
|
71.0 %
|
|
70.7 %
|
|
0.5 %
|
Occupancy-available
beds
|
|
64.1 %
|
|
67.4 %
|
|
-4.9 %
|
|
71.3 %
|
|
71.0 %
|
|
0.5 %
|
Admissions
|
|
227,357
|
|
227,944
|
|
-0.3 %
|
|
342,394
|
|
340,290
|
|
0.6 %
|
Length of
stay
|
|
5.1
|
|
5.1
|
|
-1.6 %
|
|
13.5
|
|
13.5
|
|
0.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/universal-health-services-inc-reports-2022-third-quarter-financial-results-301659160.html
SOURCE Universal Health Services, Inc.