Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended June 30, 2023 and 2022:

KING OF PRUSSIA, Pa., July 25, 2023 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $171.3 million, or $2.42 per diluted share, during the second quarter of 2023, as compared to $164.1 million, or $2.20 per diluted share, during the second quarter of 2022. Net revenues increased by 6.8% to $3.548 billion during the second quarter of 2023, as compared to $3.323 billion during the second quarter of 2022.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income attributable to UHS during the second quarter of 2023 was $179.4 million, or $2.53 per diluted share, as compared to $163.9 million, or $2.20 per diluted share, during the second quarter of 2022.  As reflected on the Supplemental Schedule, included in our reported results was an unrealized after-tax loss of $8.1 million, or $.11 per diluted share, ($10.5 million pre-tax) during the second quarter of 2023. The unrealized loss, which is included in "Other (income) expense, net", resulted from a decrease in the market value 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 $419.3 million during the second quarter of 2023, as compared to $384.5 million during the second quarter of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $425.9 million during the second quarter of 2023, as compared to $382.6 million during the second quarter of 2022.

Consolidated Results of Operations, As Reported and As Adjusted  – Six-month periods ended June 30, 2023 and 2022:

Reported net income attributable to UHS was $334.4 million, or $4.70 per diluted share, during the first six months of 2023, as compared to $318.0 million, or $4.22 per diluted share, during the first six months 2022. Net revenues increased by 6.0% to $7.016 billion during the first six months of 2023, as compared to $6.616 billion during the comparable period of 2022.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first six months of 2023, was $346.9 million, or $4.87 per diluted share, as compared to $327.4 million, or $4.35 per diluted share, during the six-month period ended June 30, 2022. 

As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $12.5 million, or $.17 per diluted share, ($16.3 million pre-tax) during the first six months of 2023 and $9.4 million, or $.13 per diluted share, ($12.3 million pre-tax) during the first six months of 2022. These unrealized losses, which are included in "Other (income) expense, net", resulted from decreases in the market value of certain equity securities. 

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI"), was $826.6 million during the first six months of 2023, as compared to $752.9 million during the first six months of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $846.9 million during the first six months of 2023, as compared to $762.1 million during the comparable period of 2022.

Acute Care Services – Three and six-month periods ended June 30, 2023 and 2022:

During the second quarter of 2023, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased by 7.7% while adjusted patient days increased by 6.9%, as compared to the second quarter of 2022. At these facilities, during the second quarter of 2023, net revenue per adjusted admission increased by 1.3% while net revenue per adjusted patient day increased by 2.0%, as compared to the second quarter of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 9.7% during the second quarter of 2023, as compared to the second quarter of 2022.

 During the six-month period ended June 30, 2023, at our acute care hospitals on a same facility basis, adjusted admissions increased by 9.1% while adjusted patient days increased by 5.2%, as compared to the first six months of 2022. At these facilities, during the first six months of 2023, net revenue per adjusted admission decreased by 3.3% while net revenue per adjusted patient day increased by 0.3%, as compared to the first six months of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 6.6% during the first six months of 2023, as compared to the comparable period of 2022.

Behavioral Health Care Services – Three and six-month periods ended June 30, 2023 and 2022:

During the second quarter of 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 3.3% while adjusted patient days increased by 1.5%, as compared to the second quarter of 2022. At these facilities, during the second quarter of 2023, net revenue per adjusted admission increased by 4.4% and net revenue per adjusted patient day increased by 6.2%, as compared to the second quarter of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.8% during the second quarter of 2023, as compared to the second quarter of 2022.

During the six-month period ended June 30, 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 5.4% while adjusted patient days increased by 3.1%, as compared to the first six months of 2022. At these facilities, during the first six months of 2023, net revenue per adjusted admission increased by 3.3% and net revenue per adjusted patient day increased by 5.6%, as compared to the first six months of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 8.7% during the first six months of 2023, as compared to the comparable period of 2022.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the six-month period ended June 30, 2023, our net cash provided by operating activities was $654 million as compared to $478 million during the first six months of 2022. Included in the $176 million net increase in our net cash provided by operating activities was a favorable change of $119 million in other working capital accounts due primarily to the timing of disbursements for accrued compensation and accounts payable.

Liquidity:

As of June 30, 2023, we had $946 million 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, 2022, we had an aggregate remaining repurchase authorization of approximately $947 million pursuant to our stock repurchase program. 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 second quarter of 2023, we have repurchased 758,578 shares at an aggregate cost of approximately $113.4 million (approximately $150 per share) pursuant to the program. During the first six months of 2023, we have repurchased approximately 1.4 million shares at an aggregate cost of approximately $192.1 million (approximately $136 per share) pursuant to the program.

As of June 30, 2023, we had an aggregate available repurchase authorization of approximately $755 million

Revised 2023 Operating Results Forecasts:

Based upon the operating trends and financial results experienced during the first six months of 2023, as indicated on the Revised Forecast table below, we are increasing the lower end of our guidance range for consolidated net revenues, earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests ("Adjusted EBITDA, net of NCI"), and adjusted net income attributable to UHS per diluted share ("Adjusted EPS-diluted") for the year ended December 31, 2023. The higher end of the 2023 guidance range for these metrics is remaining substantially unchanged.

The tables below include our revised 2023 operating results forecasts for the year ended December 31, 2023, as well as our original 2023 operating results forecast which was previously disclosed on February 27, 2023.


Revised Forecast


Original Forecast


For the Year Ended


For the Year Ended


December 31, 2023


December 31, 2023


Low

High


Low

High

Net revenues

$14.130 billion

$14.330 billion


$14.044 billion

$14.314 billion

Adjusted EBITDA, net of NCI

$1.696 billion

$1.756 billion


$1.662 billion

$1.753 billion

Adjusted EPS – diluted

$9.85 per share

$10.50 per share


$9.50 per share

$10.50 per share

Adjusted EPS-diluted and Adjusted EBITDA net of NCI, are non-GAAP financial measures and should be examined in connection with net income determined in accordance with GAAP as presented in the consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2022 and our Form 10-Q for the quarter ended March 31, 2023. Please see the schedule of Supplemental Non-GAAP Disclosures - 2023 Revised Operating Results Forecast, as included herein for additional information and a reconciliation to the financial forecasts as computed in accordance with GAAP.  In addition, the 2023 revised forecasted amounts exclude the impact of certain future items, if applicable, including those as outlined below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 26, 2023.  A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at 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 2022 were approximately $13.4 billion. UHS ranked #311 on the Fortune 500; and #434 on Forbes' list of America's Largest Public Companies. UHS was again recognized as one of the World's Most Admired Companies by Fortune.  

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 approximately 93,800 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 331 inpatient behavioral health facilities, 42 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. 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 potential 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 March 31, 2023 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2022), 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, but not limited to:

  • The nationwide shortage of nurses and other clinical staff and support personnel has been a significant operating issue facing us and other healthcare providers. 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. These factors, which had a material unfavorable impact on our results of operations during 2022, could continue to have an unfavorable material impact on our results of operations for the foreseeable future.
  • The impact of the COVID-19 pandemic, which began in March, 2020, has had a material effect on our operations and financial results, at various times, since that time. We cannot predict if there will be future disruptions caused by the COVID‑19 pandemic.      
  • A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions.  Changes to these programs, if adopted, could materially affect program payments which could materially impact our results of operations.
  • The increase in interest rates has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms.  Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy.       

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, 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, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, 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 March 31, 2023 and our Report on Form 10-K for the year ended December 31, 2022. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

 

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)










Three months


Six months


ended June 30,


ended June 30,


2023


2022


2023


2022









Net revenues

$3,548,138


$3,323,407


$7,015,656


$6,616,363









Operating charges:








   Salaries, wages and benefits

1,770,271


1,691,472


3,523,606


3,383,742

   Other operating expenses

938,314


867,885


1,817,265


1,688,819

   Supplies expense

380,294


354,993


760,283


726,066

   Depreciation and amortization

143,744


143,850


285,365


287,634

   Lease and rental expense

35,387


31,773


70,309


63,811


3,268,010


3,089,973


6,456,828


6,150,072









Income from operations

280,128


233,434


558,828


466,291









Interest expense, net

48,831


25,676


99,707


47,349

Other (income) expense, net

6,602


(1,972)


20,325


9,229









Income before income taxes

224,695


209,730


438,796


409,713









Provision for income taxes

55,393


50,949


107,119


99,911









Net income

169,302


158,781


331,677


309,802









Less:  Net income (loss) attributable to








noncontrolling interests ("NCI")

(2,011)


(5,281)


(2,751)


(8,173)









Net income attributable to UHS

$171,313


$164,062


$334,428


$317,975

































Basic earnings per share attributable to UHS (a)

$2.44


$2.22


$4.75


$4.27









Diluted earnings per share attributable to UHS (a)

$2.42


$2.20


$4.70


$4.22

 

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)










Three months


Six months

(a) Earnings per share calculation:

ended June 30,


ended June 30,


2023


2022


2023


2022

Basic and diluted:








Net income attributable to UHS

$171,313


$164,062


$334,428


$317,975

Less: Net income attributable to unvested restricted share grants

(61)


(164)


(190)


(413)

Net income attributable to UHS - basic and diluted

$171,252


$163,898


$334,238


$317,562









Weighted average number of common shares - basic

70,073


73,682


70,304


74,356









Basic earnings per share attributable to UHS:

$2.44


$2.22


$4.75


$4.27









Weighted average number of common shares

70,073


73,682


70,304


74,356

Add: Other share equivalents

766


753


859


882

Weighted average number of common shares and equiv. - diluted

70,839


74,435


71,163


75,238









Diluted earnings per share attributable to UHS:

$2.42


$2.20


$4.70


$4.22

 

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Three Months ended June 30, 2023 and 2022

(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


June 30, 2023


revenues


June 30, 2022


revenues









Net income attributable to UHS

$171,313




$164,062



   Depreciation and amortization

143,744




143,850



   Interest expense, net

48,831




25,676



   Provision for income taxes

55,393




50,949



EBITDA net of NCI

$419,281


11.8 %


$384,537


11.6 %









Other (income) expense, net

6,602




(1,972)



Adjusted EBITDA net of NCI

$425,883


12.0 %


$382,565


11.5 %









Net revenues

$3,548,138




$3,323,407



























Calculation of Adjusted Net Income Attributable to UHS










Three months ended


Three months ended


June 30, 2023


June 30, 2022




Per




Per


Amount


Diluted Share


Amount


Diluted Share









Net income attributable to UHS

$171,313


$2.42


$164,062


$2.20

Plus/minus after-tax adjustments:








Unrealized loss (gain) on equity securities

8,051


0.11


(153)


-

Subtotal adjustments

8,051


0.11


(153)


-

Adjusted net income attributable to UHS

$179,364


$2.53


$163,909


$2.20

 

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

For the Six Months ended June 30, 2023 and 2022

(in thousands, except per share amounts)

(unaudited)









Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA/Adjusted EBITDA net of NCI")










Six months ended


% Net


Six months ended


% Net


June 30, 2023


revenues


June 30, 2022


revenues









Net income attributable to UHS

$334,428




$317,975



   Depreciation and amortization

285,365




287,634



   Interest expense, net

99,707




47,349



   Provision for income taxes

107,119




99,911



EBITDA net of NCI

$826,619


11.8 %


$752,869


11.4 %









Other (income) expense, net

20,325




9,229



Adjusted EBITDA net of NCI

$846,944


12.1 %


$762,098


11.5 %









Net revenues

$7,015,656




$6,616,363



























Calculation of Adjusted Net Income Attributable to UHS










Six months ended


Six months ended


June 30, 2023


June 30, 2022




Per




Per


Amount


Diluted Share


Amount


Diluted Share









Net income attributable to UHS

$334,428


$4.70


$317,975


$4.22

Plus/minus after-tax adjustments:








Unrealized loss on equity securities

12,512


0.17


9,384


0.13

Subtotal adjustments

12,512


0.17


9,384


0.13

Adjusted net income attributable to UHS

$346,940


$4.87


$327,359


$4.35

 

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)











June 30,



December 31,




2023



2022

Assets







Current assets:







    Cash and cash equivalents


$

79,451


$

102,818

    Accounts receivable, net



2,103,478



2,017,722

    Supplies



215,380



218,517

    Other current assets



226,405



198,283

          Total current assets



2,624,714



2,537,340








Property and equipment



11,441,608



11,085,852

Less: accumulated depreciation



(5,413,892)



(5,167,394)




6,027,716



5,918,458








Other assets:







    Goodwill



3,929,722



3,909,456

    Deferred income taxes



109,773



68,397

    Right of use assets-operating leases



446,618



454,650

    Deferred charges



5,858



6,264

    Other



587,908



599,623

Total Assets


$

13,732,309


$

13,494,188








Liabilities and Stockholders' Equity







Current liabilities:







    Current maturities of long-term debt


$

111,357


$

81,447

    Accounts payable and other liabilities



1,843,379



1,760,588

    Operating lease liabilities



73,649



67,776

    Federal and state taxes



6,962



4,608

          Total current liabilities



2,035,347



1,914,419








Other noncurrent liabilities



571,206



487,669

Operating lease liabilities noncurrent



387,709



395,522

Long-term debt



4,605,075



4,726,533








Redeemable noncontrolling interest



4,213



4,695








UHS common stockholders' equity



6,087,182



5,920,582

Noncontrolling interest



41,577



44,768

          Total equity



6,128,759



5,965,350








Total Liabilities and Stockholders' Equity


$

13,732,309


$

13,494,188

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)






Six months


ended June 30,


2023


2022





Cash Flows from Operating Activities:




  Net income

$331,677


$309,802

  Adjustments to reconcile net income to net




   cash provided by operating activities:




   Depreciation & amortization

285,365


287,634

   (Gain) loss on sale of assets and businesses

(6,250)


1,084

   Stock-based compensation expense

43,062


41,640

  Changes in assets & liabilities, net of effects from




   acquisitions and dispositions:




   Accounts receivable

(82,078)


(89,729)

   Accrued interest

(107)


1,329

   Accrued and deferred income taxes

(32,695)


(34,260)

   Other working capital accounts

20,216


(98,811)

   Medicare accelerated payments and deferred CARES Act and other grants

2,741


5,339

   Other assets and deferred charges

32,746


30,278

   Other

15,471


(15,763)

   Accrued insurance expense, net of commercial premiums paid

95,157


97,570

   Payments made in settlement of self-insurance claims

(51,604)


(58,066)

          Net cash provided by operating activities

653,701


478,047





Cash Flows from Investing Activities:




   Property and equipment additions

(336,664)


(407,962)

   Proceeds received from sales of assets and businesses

23,688


10,232

   Acquisition of businesses and property

(3,728)


(12,485)

   (Outflows) inflows from foreign exchange contracts that hedge our net U.K. investment

(31,305)


84,535

   Decrease in capital reserves of commercial insurance subsidiary

0


100

          Net cash used in investing activities

(348,009)


(325,580)





Cash Flows from Financing Activities:




   Repayments of long-term debt

(93,557)


(226,854)

   Additional borrowings

0


700,000

   Financing costs

(293)


(2,387)

   Repurchase of common shares

(209,756)


(565,182)

   Dividends paid

(28,263)


(29,641)

   Issuance of common stock

6,598


6,661

   Profit distributions to noncontrolling interests

(4,735)


(5,323)

   Purchase (sale) of ownership interests by (from) minority members

407


(1,307)

          Net cash used in financing activities

(329,599)


(124,033)





   Effect of exchange rate changes on cash, cash equivalents and restricted cash

2,377


(5,457)

Decrease (increase) in cash, cash equivalents and restricted cash

(21,530)


22,977

Cash, cash equivalents and restricted cash, beginning of period

200,837


178,934

Cash, cash equivalents and restricted cash, end of period

$179,307


$201,911





Supplemental Disclosures of Cash Flow Information:




  Interest paid

$97,297


$43,796





  Income taxes paid, net of refunds

$133,840


$145,448





  Noncash purchases of property and equipment

$100,461


$112,420

 

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)


















 % Change


 % Change








3 Months ended


6 Months ended

Same Facility:







6/30/2023


6/30/2023











Acute Care Hospitals










Revenues







9.7 %


6.6 %

Adjusted Admissions







7.7 %


9.1 %

Adjusted Patient Days







6.9 %


5.2 %

Revenue Per Adjusted Admission







1.3 %


-3.3 %

Revenue Per Adjusted Patient Day







2.0 %


0.3 %











Behavioral Health Hospitals










Revenues







7.8 %


8.7 %

Adjusted Admissions







3.3 %


5.4 %

Adjusted Patient Days







1.5 %


3.1 %

Revenue Per Adjusted Admission







4.4 %


3.3 %

Revenue Per Adjusted Patient Day







6.2 %


5.6 %











UHS Consolidated



Second Quarter Ended


Six Months Ended




6/30/2023


6/30/2022


6/30/2023


6/30/2022











Revenues



$3,548,138


$3,323,407


$7,015,656


$6,616,363

EBITDA net of NCI



$419,281


$384,537


$826,619


$752,869

EBITDA Margin net of NCI



11.8 %


11.6 %


11.8 %


11.4 %

Adjusted EBITDA net of NCI



$425,883


$382,565


$846,944


$762,098

Adjusted EBITDA Margin net of NCI



12.0 %


11.5 %


12.1 %


11.5 %











Cash Flow From Operations



$362,948


$32,614


$653,701


$478,047

Days Sales Outstanding



54


50


54


50

Capital Expenditures 



$167,912


$207,960


$336,664


$407,962











Debt







$4,716,432


$4,665,409

UHS' Shareholders Equity







$6,087,182


$5,814,660

Debt / Total Capitalization







43.7 %


44.5 %

Debt / EBITDA net of NCI (1)







2.83


2.81

Debt / Adjusted EBITDA net of NCI (1)






2.70


2.81

Debt / Cash From Operations (1)







4.03


3.76











(1) Latest 4 quarters.










 

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three and Six Months ended

June 30, 2023 and 2022

(in thousands)


















Same Facility Basis - Acute Care Hospital Services




































Three months ended


Three months ended


Six months ended


Six months ended



June 30, 2023


June 30, 2022


June 30, 2023


June 30, 2022



Amount


% of Net
Revenues


Amount


% of Net
Revenues


Amount


% of Net
Revenues


Amount


% of Net
Revenues

Net revenues


$1,953,269


100.0 %


$1,779,801


100.0 %


$3,842,349


100.0 %


$3,604,498


100.0 %

Operating charges:

















Salaries, wages and benefits


828,503


42.4 %


799,804


44.9 %


1,639,056


42.7 %


1,611,447


44.7 %

Other operating expenses


548,713


28.1 %


469,560


26.4 %


1,041,113


27.1 %


904,030


25.1 %

Supplies expense


323,746


16.6 %


292,303


16.4 %


640,002


16.7 %


602,385


16.7 %

Depreciation and amortization


91,511


4.7 %


89,980


5.1 %


178,438


4.6 %


181,744


5.0 %

Lease and rental expense


23,639


1.2 %


20,204


1.1 %


47,231


1.2 %


40,909


1.1 %

Subtotal-operating expenses


1,816,112


93.0 %


1,671,851


93.9 %


3,545,840


92.3 %


3,340,515


92.7 %

Income from operations


137,157


7.0 %


107,950


6.1 %


296,509


7.7 %


263,983


7.3 %

Interest expense, net


(503)


(0.0) %


478


0.0 %


(1,080)


(0.0) %


1,116


0.0 %

Other (income) expense, net


0


-


221


0.0 %


6,213


0.2 %


422


0.0 %

Income before income taxes


$137,660


7.0 %


$107,251


6.0 %


$291,376


7.6 %


$262,445


7.3 %




















































All Acute Care Hospital Services




































Three months ended


Three months ended


Six months ended


Six months ended



June 30, 2023


June 30, 2022


June 30, 2023


June 30, 2022



Amount


% of Net
Revenues


Amount


% of Net
Revenues


Amount


% of Net
Revenues


Amount


% of Net
Revenues

Net revenues


$2,003,079


100.0 %


$1,875,516


100.0 %


$3,976,611


100.0 %


$3,787,832


100.0 %

Operating charges:

















Salaries, wages and benefits


836,331


41.8 %


829,040


44.2 %


1,680,291


42.3 %


1,672,946


44.2 %

Other operating expenses


590,616


29.5 %


532,504


28.4 %


1,134,916


28.5 %


1,014,582


26.8 %

Supplies expense


327,650


16.4 %


302,728


16.1 %


655,710


16.5 %


624,155


16.5 %

Depreciation and amortization


94,304


4.7 %


95,004


5.1 %


187,630


4.7 %


189,538


5.0 %

Lease and rental expense


24,035


1.2 %


20,482


1.1 %


48,189


1.2 %


41,334


1.1 %

Subtotal-operating expenses


1,872,936


93.5 %


1,779,758


94.9 %


3,706,736


93.2 %


3,542,555


93.5 %

Income from operations


130,143


6.5 %


95,758


5.1 %


269,875


6.8 %


245,277


6.5 %

Interest expense, net


(503)


(0.0) %


478


0.0 %


(1,080)


(0.0) %


1,116


0.0 %

Other (income) expense, net


119


0.0 %


221


0.0 %


7,132


0.2 %


422


0.0 %

Income before income taxes


$130,527


6.5 %


$95,059


5.1 %


$263,823


6.6 %


$243,739


6.4 %


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 goodwill, 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, 2022 and Form 10-Q for the quarter ended March 31, 2023.




















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 Six Months ended

June 30, 2023 and 2022

(in thousands)


















Same Facility - Behavioral Health Care Services




































Three months ended


Three months ended


Six months ended


Six months ended



June 30, 2023


June 30, 2022


June 30, 2023


June 30, 2022



Amount


% of Net
Revenues


Amount


% of Net
Revenues


Amount


% of Net
Revenues


Amount


% of Net
Revenues

Net revenues


$1,517,005


100.0 %


$1,407,147


100.0 %


$2,976,724


100.0 %


$2,737,959


100.0 %

Operating charges:

















Salaries, wages and benefits


843,222


55.6 %


767,333


54.5 %


1,649,168


55.4 %


1,513,493


55.3 %

Other operating expenses


296,203


19.5 %


274,146


19.5 %


573,572


19.3 %


542,694


19.8 %

Supplies expense


53,773


3.5 %


52,373


3.7 %


106,103


3.6 %


101,991


3.7 %

Depreciation and amortization


46,554


3.1 %


45,280


3.2 %


91,555


3.1 %


90,762


3.3 %

Lease and rental expense


11,203


0.7 %


10,415


0.7 %


21,785


0.7 %


20,676


0.8 %

Subtotal-operating expenses


1,250,955


82.5 %


1,149,547


81.7 %


2,442,183


82.0 %


2,269,616


82.9 %

Income from operations


266,050


17.5 %


257,600


18.3 %


534,541


18.0 %


468,343


17.1 %

Interest expense, net


993


0.1 %


1,360


0.1 %


2,071


0.1 %


2,587


0.1 %

Other (income) expense, net


(733)


(0.0) %


(643)


(0.0) %


(1,309)


(0.0) %


(758)


(0.0) %

Income before income taxes


265,790


17.5 %


$256,883


18.3 %


$533,779


17.9 %


$466,514


17.0 %




















































All Behavioral Health Care Services




































Three months ended


Three months ended


Six months ended


Six months ended



June 30, 2023


June 30, 2022


June 30, 2023


June 30, 2022



Amount


% of Net
Revenues


Amount


% of Net
Revenues


Amount


% of Net
Revenues


Amount


% of Net
Revenues

Net revenues


$1,542,194


100.0 %


$1,433,920


100.0 %


$3,032,683


100.0 %


$2,800,387


100.0 %

Operating charges:

















Salaries, wages and benefits


844,308


54.7 %


773,966


54.0 %


1,654,094


54.5 %


1,527,852


54.6 %

Other operating expenses


322,518


20.9 %


299,782


20.9 %


627,750


20.7 %


598,249


21.4 %

Supplies expense


53,837


3.5 %


52,655


3.7 %


106,325


3.5 %


102,832


3.7 %

Depreciation and amortization


46,778


3.0 %


45,863


3.2 %


92,397


3.0 %


91,942


3.3 %

Lease and rental expense


11,255


0.7 %


10,973


0.8 %


21,923


0.7 %


21,793


0.8 %

Subtotal-operating expenses


1,278,696


82.9 %


1,183,239


82.5 %


2,502,489


82.5 %


2,342,668


83.7 %

Income from operations


263,498


17.1 %


250,681


17.5 %


530,194


17.5 %


457,719


16.3 %

Interest expense, net


993


0.1 %


1,366


0.1 %


2,204


0.1 %


2,731


0.1 %

Other (income) expense, net


(1,188)


(0.1) %


(643)


(0.0) %


(2,059)


(0.1) %


(758)


(0.0) %

Income before income taxes


263,693


17.1 %


$249,958


17.4 %


$530,049


17.5 %


$455,746


16.3 %


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 goodwill, 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, 2022 and Form 10-Q for the quarter ended March 31, 2023.




















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.

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the Three Months ended

June 30, 2023 and 2022














AS REPORTED:









































ACUTE


BEHAVIORAL HEALTH



6/30/23


6/30/22


%  change


6/30/23


6/30/22


%  change














Hospitals owned and leased


27


28


-3.6 %


331


333


-0.6 %

Average licensed beds


6,624


6,971


-5.0 %


24,189


24,340


-0.6 %

Average available beds


6,452


6,799


-5.1 %


24,089


24,240


-0.6 %

Patient days


384,373


375,955


2.2 %


1,588,575


1,574,715


0.9 %

Average daily census


4,223.8


4,131.4


2.2 %


17,456.9


17,304.6


0.9 %

Occupancy-licensed beds


63.8 %


59.3 %


7.6 %


72.2 %


71.1 %


1.5 %

Occupancy-available beds


65.5 %


60.8 %


7.7 %


72.5 %


71.4 %


1.5 %

Admissions


79,100


76,713


3.1 %


119,656


116,627


2.6 %

Length of stay


4.9


4.9


-0.8 %


13.3


13.4


-0.9 %














Inpatient revenue


$10,960,845


$9,706,731


12.9 %


$2,670,370


$2,561,553


4.2 %

Outpatient revenue


7,515,780


6,206,039


21.1 %


281,036


268,489


4.7 %

Total patient revenue


18,476,625


15,912,770


16.1 %


2,951,406


2,830,042


4.3 %

Other revenue


240,899


202,975


18.7 %


73,926


75,359


-1.9 %

Gross hospital revenue


18,717,524


16,115,745


16.1 %


3,025,332


2,905,401


4.1 %

Total deductions


16,714,445


14,240,229


17.4 %


1,483,138


1,471,481


0.8 %

Net hospital revenue


$2,003,079


$1,875,516


6.8 %


$1,542,194


$1,433,920


7.6 %



























SAME FACILITY:




























ACUTE


BEHAVIORAL HEALTH



6/30/23


6/30/22


%  change


6/30/23


6/30/22


%  change














Hospitals owned and leased


27


27


0.0 %


330


330


0.0 %

Average licensed beds


6,624


6,689


-1.0 %


24,063


23,991


0.3 %

Average available beds


6,452


6,517


-1.0 %


23,963


23,891


0.3 %

Patient days


384,373


362,044


6.2 %


1,578,277


1,559,048


1.2 %

Average daily census


4,223.8


3,978.5


6.2 %


17,343.7


17,132.4


1.2 %

Occupancy-licensed beds


63.8 %


59.5 %


7.2 %


72.1 %


71.4 %


0.9 %

Occupancy-available beds


65.5 %


61.0 %


7.2 %


72.4 %


71.7 %


0.9 %

Admissions


79,100


73,927


7.0 %


118,778


115,271


3.0 %

Length of stay


4.9


4.9


-0.8 %


13.3


13.5


-1.8 %

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the Six Months ended

June 30, 2023 and 2022



























AS REPORTED:









































ACUTE


BEHAVIORAL HEALTH



6/30/23


6/30/22


%  change


6/30/23


6/30/22


%  change














Hospitals owned and leased


27


28


-3.6 %


331


333


-0.6 %

Average licensed beds


6,711


6,860


-2.2 %


24,210


24,291


-0.3 %

Average available beds


6,539


6,688


-2.2 %


24,110


24,191


-0.3 %

Patient days


788,626


781,907


0.9 %


3,161,147


3,081,066


2.6 %

Average daily census


4,357.0


4,319.9


0.9 %


17,464.9


17,022.5


2.6 %

Occupancy-licensed beds


64.9 %


63.0 %


3.1 %


72.1 %


70.1 %


2.9 %

Occupancy-available beds


66.6 %


64.6 %


3.2 %


72.4 %


70.4 %


2.9 %

Admissions


159,226


152,002


4.8 %


240,216


229,060


4.9 %

Length of stay


5.0


5.1


-3.7 %


13.2


13.5


-2.2 %














Inpatient revenue


$22,362,336


$19,945,962


12.1 %


$5,298,360


$4,998,027


6.0 %

Outpatient revenue


14,811,896


11,981,578


23.6 %


553,407


525,602


5.3 %

Total patient revenue


37,174,232


31,927,540


16.4 %


5,851,767


5,523,629


5.9 %

Other revenue


462,892


387,456


19.5 %


139,244


142,056


-2.0 %

Gross hospital revenue


37,637,124


32,314,996


16.5 %


5,991,011


5,665,685


5.7 %

Total deductions


33,660,513


28,527,164


18.0 %


2,958,328


2,865,298


3.2 %

Net hospital revenue


$3,976,611


$3,787,832


5.0 %


$3,032,683


$2,800,387


8.3 %



























SAME FACILITY:




























ACUTE


BEHAVIORAL HEALTH



6/30/23


6/30/22


%  change


6/30/23


6/30/22


%  change














Hospitals owned and leased


27


27


0.0 %


330


330


0.0 %

Average licensed beds


6,538


6,578


-0.6 %


24,024


23,939


0.4 %

Average available beds


6,366


6,406


-0.6 %


23,924


23,839


0.4 %

Patient days


776,943


752,308


3.3 %


3,136,187


3,047,895


2.9 %

Average daily census


4,292.5


4,156.4


3.3 %


17,327.0


16,839.2


2.9 %

Occupancy-licensed beds


65.7 %


63.2 %


3.9 %


72.1 %


70.3 %


2.5 %

Occupancy-available beds


67.4 %


64.9 %


3.9 %


72.4 %


70.6 %


2.5 %

Admissions


156,837


146,434


7.1 %


237,799


226,006


5.2 %

Length of stay


5.0


5.1


-3.6 %


13.2


13.5


-2.2 %

 

Universal Health Services, Inc.

Supplemental Non-GAAP Disclosures

2023 Revised Operating Results Forecast

(in thousands, except per share amounts)
























Forecast For The Year Ending December 31, 2023






% Net




% Net




Low


revenues


High


revenues

Net revenues



$14,130,000




$14,330,000













Adjusted net income attributable to UHS (a)


$693,483




$739,143













 Depreciation and amortization



584,725




584,725



 Interest expense



198,996




198,996



 Other (income) expense, net



1,353




1,353



 Provision for income taxes



217,796




232,136



Adjusted EBITDA net of NCI (b)



$1,696,353


12.0 %


$1,756,353


12.3 %











Adjusted net income attributable to UHS, per diluted share (a)

$9.85




$10.50













Shares used in computing diluted earnings per share

70,332




70,322




(a) Adjusted net income attributable to UHS/per diluted share are non-GAAP financial measures.  The 2023 forecasted amounts exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as pre-tax unrealized gains/losses resulting from changes in the market value of shares of certain equity securities, and other potential material items including, but not limited to, reserves for various matters including settlements, legal judgments and lawsuits, potential impacts of non-ordinary course acquisitions, divestitures, joint ventures or other strategic transactions, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets, other amounts that may be reflected in the current financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. It is also subject to certain conditions including those as set forth in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.












(b) Adjusted EBITDA net of NCI is a non-GAAP financial measure.  To obtain a complete understanding of our financial performance, Adjusted EBITDA net of NCI should be examined in connection with net income determined in accordance with GAAP as presented in the consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including in our Form 10-K for the year ended December 31, 2022 and Form 10-Q for the quarter ended March 31, 2023.

 

Cision View original content:https://www.prnewswire.com/news-releases/universal-health-services-inc-announces-2023-second-quarter-financial-results-301885626.html

SOURCE Universal Health Services, Inc.

Copyright 2023 PR Newswire

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