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Press release from PR Newswire

Universal Health Services, Inc. Reports Financial Results For Three And Six Months Ended June 30, 2013

Thursday, July 25, 2013

Universal Health Services, Inc. Reports Financial Results For Three And Six Months Ended June 30, 2013

17:01 EDT Thursday, July 25, 2013

Consolidated Results of Operations, As Reported - Three and six-month periods ended June 30, 2013 and 2012:

KING OF PRUSSIA, Pa., July 25, 2013 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $151.8 million, or $1.53 per diluted share, during the second quarter of 2013 as compared to $107.6 million, or $1.10 per diluted share, during the comparable quarter of 2012.  Net revenues increased 6.5% to $1.83 billion during the second quarter of 2013 as compared to $1.72 billion during the second quarter of 2012. 

Reported net income attributable to UHS was $271.6 million, or $2.75 per diluted share, during the first six months of 2013 as compared to $236.2 million, or $2.41 per diluted share, during the comparable period of 2012.  Net revenues increased 4.3% to $3.67 billion during the six-month period ended June 30, 2013 as compared to $3.52 billion during the comparable six-month period of 2012. 

Consolidated Results of Operations, As Adjusted ? Three and six-month periods ended June 30, 2013 and 2012:

For the three-month period ended June 30, 2013, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule"), was $118.9 million, or $1.20 per diluted share, as compared to $109.1 million, or $1.12 per diluted share, during the second quarter of 2012.     

As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2013 was: (i) a net favorable after-tax impact of $37.8 million, or $.38 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2013, based upon a reserve analysis, and; (ii) an unfavorable after-tax impact of approximately $4.9 million, or $.05 per diluted share, related to the incentive income and expenses recorded in connection with the implementation of electronic health records ("EHR") applications at our acute care hospitals (as discussed below in Accounting for HITECH Act incentive income and EHR expenses). 

As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2012, was a net favorable after-tax impact of $3.4 million, or $.03 per diluted share, consisting primarily of the 2011 portion of net Medicaid supplemental revenues recorded during the quarter, and an unfavorable after-tax impact of approximately $5.0 million, or $.05 per diluted share, related to the incentive income and expenses recorded in connection with the implementation of EHR applications at our acute care hospitals

Included in our reported results during the six-month period ended June 30, 2013 was the above-mentioned net favorable after-tax impact of $37.8 million, or $.38 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to prior years, and an unfavorable after-tax impact of approximately $5.3 million, or $.05 per diluted share, related to the incentive income and expenses recorded in connection with the implementation of EHR applications.

Included in our reported results during the first six months of 2012 was the above-mentioned unfavorable after-tax impact of approximately $5.0 million, or $.05 per diluted share, recorded in connection with the implementation of EHR applications, and an aggregate favorable after-tax impact of $21.4 million, or $.21 per diluted share, consisting of the following: (i) a favorable after-tax impact of $18.8 million resulting from an industry-wide settlement with the United States Department of Health and Human Services, the Secretary of Health and Human Services, and the Centers for Medicare and Medicaid Services, related to underpayments of Medicare inpatient prospective payments during a number of years prior to 2012; (ii) a favorable after-tax impact of $4.3 million representing the 2011 portion of the net Medicaid supplemental reimbursements recorded pursuant to the Oklahoma Supplemental Hospital Offset Payment Program; (iii) an aggregate unfavorable after-tax impact of $5.1 million resulting from the revised Supplemental Security Income ratios utilized for calculating Medicare disproportionate share hospital reimbursements for federal fiscal years 2006 through 2009 ($2.4 million unfavorable after-tax impact), and the write-off of receivables related to revenues recorded during 2011 at two of our acute care hospitals located in Florida resulting from reductions in certain county reimbursements due to reductions in federal matching Inter-Governmental Transfer funds ($2.7 million unfavorable after-tax impact), and; (iv) a net favorable after-tax impact of $3.4 million consisting primarily of the 2011 portion of net Medicaid supplemental revenues recorded during the second quarter. 

Acute Care Services ? Three and six-month periods ended June 30, 2013 and 2012:During the second quarter of 2013, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 2.0% and adjusted patient days increased 1.2%, as compared to the second quarter of 2012. Net revenues at these facilities increased 4.9% during the second quarter of 2013 as compared to the comparable quarter of 2012. At these facilities, net revenue per adjusted admission increased 2.9% while net revenue per adjusted patient day increased 3.7% during the second quarter of 2013 as compared to the second quarter of 2012. On a same facility basis, the operating margin at our acute care hospitals decreased to 14.8% during the second quarter of 2013 as compared to 16.1% during the second quarter of 2012. We define operating margin as net revenues less salaries, wages and benefits, other operating expenses and supplies expense (excluding the impact of the items mentioned above and as indicated on the Supplemental Schedule).

During the first six months of 2013, at our acute care hospitals on a same facility basis, adjusted admissions increased 0.2% and adjusted patient days increased 0.7%, as compared to the first six months of 2012. Net revenues at these facilities increased 2.8% during the six-month period ended June 30, 2013 as compared to the comparable period in 2012. At these facilities, net revenue per adjusted admission increased 2.5% while net revenue per adjusted patient day increased 2.1% during the first six months of 2013 as compared to the comparable period in 2012. On a same facility basis, the operating margin at our acute care hospitals decreased to 15.4% during the first six months of 2013 as compared to 17.6% during the first six months 2012.

We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $258 million and $266 million during the three-month periods ended June 30, 2013 and 2012, respectively, and $489 million and $581 million during the six-month periods ended June 30, 2013 and 2012, respectively.  The decrease in charity care and uninsured discounts recorded at our acute care hospitals during the 2013 periods, as compared to the comparable 2012 periods, was offset by an increase in the provision for doubtful accounts which amounted to $216 million and $164 million during the three-month periods ended June 30, 2013 and 2012, respectively, and $434 million and $290 million during the six-month periods ended June 30, 2013 and 2012, respectively.

Behavioral Health Care Services ? Three and six-month periods ended June 30, 2013 and 2012:During the second quarter of 2013, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 5.4% while adjusted patient days increased 1.8%, as compared to the second quarter of 2012. Net revenues at these facilities increased 3.2% during the second quarter of 2013, as compared to the comparable quarter in 2012. At these facilities, net revenue per adjusted admission decreased 2.1% while net revenue per adjusted patient day increased 1.3% during the second quarter of 2013 over the comparable quarter in 2012. The operating margin at our behavioral health care facilities owned during both periods remained unchanged at 28.7% during each of the three-month periods ended June 30, 2013 and 2012.   

During the first six months of 2013, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 2.9% while adjusted patient days increased 0.8%, as compared to the first six months of 2012. Net revenues at these facilities increased 2.8% during the six-month period ended June 30, 2013, as compared to the comparable period in 2012. At these facilities, net revenue per adjusted admission remained relatively flat while net revenue per adjusted patient day increased 2.0% during the first six months of 2013 over the comparable period in 2012. The operating margin at our behavioral health care facilities owned during both periods increased to 28.6% during the six-month period ended June 30, 2013, as compared to 27.7% during the comparable period in 2012.

Accounting for HITECH Act incentive income and EHR expenses:

The health information technology provisions of the American Recovery and Reinvestment Act (referred to as the "HITECH Act") established criteria related to the "meaningful use" of electronic health records ("EHR") for acute care hospitals and established requirements for the Medicare and Medicaid EHR payment incentive programs.    

During 2011, we began implementing EHR applications at certain of our acute care hospitals and continued to do so, on a hospital-by-hospital basis, until completion which occurred at the end of June, 2013. Our acute care hospitals are eligible for Medicare and Medicaid EHR incentive payments upon implementation of the EHR application, assuming they meet the "meaningful use" criteria.  As of June 30, 2013, fifteen of our acute care hospitals met the "meaningful use" criteria and we expect the remainder to do so by the end of 2013.

As reflected on the Supplemental Schedule, in connection with the implementation of EHR applications, our consolidated results of operations include the net unfavorable after-tax impact of $4.9 million ($7.9 million pre-tax) during the second quarter of 2013 and $5.0 million ($8.0 million pre-tax) during the second quarter of 2012.  In connection with the implementation of EHR applications, our consolidated results of operations include the net unfavorable after-tax impact of $5.3 million ($8.4 million pre-tax) during the first six months of 2013 and $5.0 million ($8.0 million pre-tax) during the comparable six-month period of 2012.   

Conference call information:We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 26, 2013. The dial-in number is 1-877-648-7971. 

A live broadcast of the conference call will be available on our website at www.uhsinc.com.  A replay of the call will follow shortly after conclusion of the live call and will be available for one full year.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:Universal Health Services, Inc. ("UHS") is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico and the U.S. Virgin Islands.  It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT).  For additional information on the Company, visit our web site: http://www.uhsinc.com.

This press release contains forward-looking statements based on current management expectations.  Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2012 and in Item 2-Forward-Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended March 31, 2013), may cause the results to differ materially from those anticipated in the forward-looking statements.  The operating pressures that we continue to experience in many of our acute care markets has increased the volatility of our financial results making estimation of future results more challenging.  Many of the factors that will determine our future results are beyond our capability to control or predict.  These statements are subject to risks and uncertainties and therefore actual results may differ materially.  Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof.  We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

As mentioned above, our acute care hospitals may qualify for EHR incentive payments upon implementation of an EHR application assuming they meet the "meaningful use" criteria. However, there can be no assurance that we (our acute care hospitals) will ultimately qualify for these incentive payments and, should we qualify, we are unable to quantify the amount of incentive payments we may receive since the amounts are dependent upon various factors including the implementation timing at each hospital. Should we qualify for incentive payments, there may be timing differences in the recognition of the incentive income and expenses recorded in connection with the implementation of the EHR application which may cause material period-to-period changes in our future results of operations. Hospitals that do not qualify as a meaningful user of EHR by 2015 are subject to a reduced market basket update to the inpatient prospective payment system standardized amount in 2015 and each subsequent fiscal year. Although we believe that our acute care hospitals will be in compliance with the EHR standards by 2015, there can be no assurance that all of our facilities will be in compliance and therefore not subject to the penalty provision of the HITECH Act.

We believe that operating income, operating margin, adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share and earnings before interest, taxes, depreciation and amortization ("EBITDA"), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, costs related to extinguishment of debt, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods.  To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2012 and report on Form 10-Q for the quarterly period ended March 31, 2013. 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,

2013

2012

2013

2012

Net revenues before provision for doubtful accounts

$2,081,662

$1,907,789

$4,160,010

$3,849,412

  Less: Provision for doubtful accounts

246,687

184,706

493,403

333,293

Net revenues

1,834,975

1,723,083

3,666,607

3,516,119

Operating charges:

   Salaries, wages and benefits

897,334

854,863

1,799,630

1,726,977

   Other operating expenses

325,562

345,061

706,569

696,361

   Supplies expense

202,344

197,816

406,986

403,176

   Depreciation and amortization

81,682

72,983

161,494

144,775

   Lease and rental expense

24,082

23,983

48,747

47,425

   Electronic health records incentive income

(83)

(1,955)

(4,795)

(1,955)

1,530,921

1,492,751

3,118,631

3,016,759

Income from operations

304,054

230,332

547,976

499,360

Interest expense, net

38,236

45,888

78,174

92,598

Income before income taxes

265,818

184,444

469,802

406,762

Provision for income taxes

98,015

67,000

172,064

146,748

Net income

167,803

117,444

297,738

260,014

Less:  Income attributable to

noncontrolling interests

15,962

9,883

26,113

23,846

Net income attributable to UHS

$151,841

$107,561

$271,625

$236,168

Basic earnings per share attributable to UHS (a)

$1.55

$1.11

$2.77

$2.44

Diluted earnings per share attributable to UHS (a)

$1.53

$1.10

$2.75

$2.41

      

 

 

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

Six months

ended June 30,

ended June 30,

2013

2012

2013

2012

(a) Earnings per share calculation:

Basic and diluted:

Net income attributable to UHS

$151,841

$107,561

$271,625

$236,168

Less: Net income attributable to unvested restricted share grants

(88)

(126)

(157)

(294)

Net income attributable to UHS - basic and diluted

$151,753

$107,435

$271,468

$235,874

Weighted average number of common shares - basic

98,033

96,691

97,872

96,642

Basic earnings per share attributable to UHS:

$1.55

$1.11

$2.77

$2.44

Weighted average number of common shares

98,033

96,691

97,872

96,642

Add: Other share equivalents

1,178

1,038

1,019

1,118

Weighted average number of common shares and equiv. - diluted

99,211

97,729

98,891

97,760

Diluted earnings per share attributable to UHS:

$1.53

$1.10

$2.75

$2.41

 

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule")

For the three months ended June 30, 2013 and 2012

(in thousands, except per share amounts)

(unaudited)

Calculation of "EBITDA"

Three months ended

Three months ended

June 30, 2013

June 30, 2012

Net revenues before provision for doubtful accounts

$2,081,662

$1,907,789

  Less: Provision for doubtful accounts

246,687

184,706

Net revenues

1,834,975

100.0%

1,723,083

100.0%

Operating charges:

   Salaries, wages and benefits

897,334

48.9%

854,863

49.6%

   Other operating expenses

325,562

17.7%

345,061

20.0%

   Supplies expense

202,344

11.0%

197,816

11.5%

   EHR incentive income

(83)

0.0%

(1,955)

-0.1%

1,425,157

77.7%

1,395,785

81.0%

Operating income/margin ("EBITDAR")

409,818

22.3%

327,298

19.0%

   Lease and rental expense

24,082

23,983

   Income attributable to noncontrolling interests

15,962

9,883

Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA")

369,774

20.2%

293,432

17.0%

   Depreciation and amortization

81,682

72,983

   Interest expense, net

38,236

45,888

Income before income taxes 

249,856

174,561

Provision for income taxes

98,015

67,000

Net income attributable to UHS

$151,841

$107,561

Calculation of Adjusted Net Income Attributable to UHS

Three months ended

Three months ended

June 30, 2013

June 30, 2012

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Calculation of Adjusted Net Income Attributable to UHS - including and excluding EHR impact:

Net income attributable to UHS

$151,841

$1.53

$107,561

$1.10

Plus/minus adjustments:

  Reduction of reserves relating to prior years for professional and general liability

      self-insured claims, net of income taxes

(37,826)

(0.38)

-

-

  Net Medicaid reimbursements related to prior years, net of income taxes

-

-

(3,417)

(0.03)

Subtotal after-tax adjustments to net income attributable to UHS

(37,826)

(0.38)

(3,417)

(0.03)

Adjusted net income attributable to UHS - including Electronic Health Records ("EHR") impact

$114,015

$1.15

$104,144

$1.07

Plus/minus impact of EHR implementation: 

EHR-related incentive income, pre-tax

(83)

(1,955)

EHR-related salaries, wages and benefits, pre-tax

(88)

7,943

EHR-related other operating costs, pre-tax

2,053

396

EHR-related depreciation & amortization, pre-tax

7,006

3,527

EHR-related minority interest in earnings of consolidated entities, pre-tax

(984)

(1,897)

Income tax provision on EHR-related items 

(2,977)

(3,034)

After-tax impact of EHR-related items

4,927

0.05

4,980

0.05

Adjusted net income attributable to UHS

$118,942

$1.20

$109,124

$1.12

 

 

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule")

For the six months ended June 30, 2013 and 2012

(in thousands, except per share amounts)

(unaudited)

Calculation of "EBITDA"

Six months ended

Six months ended

June 30, 2013

June 30, 2012

Net revenues before provision for doubtful accounts

$4,160,010

$3,849,412

  Less: Provision for doubtful accounts

493,403

333,293

Net revenues

3,666,607

100.0%

3,516,119

100.0%

Operating charges:

   Salaries, wages and benefits

1,799,630

49.1%

1,726,977

49.1%

   Other operating expenses

706,569

19.3%

696,361

19.8%

   Supplies expense

406,986

11.1%

403,176

11.5%

   EHR incentive income

(4,795)

-0.1%

(1,955)

-0.1%

2,908,390

79.3%

2,824,559

80.3%

Operating income/margin ("EBITDAR")

758,217

20.7%

691,560

19.7%

   Lease and rental expense

48,747

47,425

   Income attributable to noncontrolling interests

26,113

23,846

Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA")

683,357

18.6%

620,289

17.6%

   Depreciation and amortization

161,494

144,775

   Interest expense, net

78,174

92,598

Income before income taxes 

443,689

382,916

Provision for income taxes

172,064

146,748

Net income attributable to UHS

$271,625

$236,168

Calculation of Adjusted Net Income Attributable to UHS

Six months ended

Six months ended

June 30, 2013

June 30, 2012

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Calculation of Adjusted Net Income Attributable to UHS - including and excluding EHR impact:

Net income attributable to UHS

$271,625

$2.75

$236,168

$2.41

Plus/minus adjustments:

  Reduction of reserves relating to prior years for professional and general liability

      self-insured claims, net of income taxes

(37,826)

-

  Medicare Rural Floor settlement, net of income taxes

-

(18,753)

  Oklahoma SHOPP Medicaid reimbursements related to prior years, net of income taxes

-

(4,329)

  Impact of revised SSI ratios and write-off Florida county receivables, net of income taxes

-

5,149

  Net Medicaid reimbursements related to prior years, net of income taxes

-

(3,417)

Subtotal after-tax adjustments to net income attributable to UHS

(37,826)

(0.38)

(21,350)

(0.21)

Adjusted net income attributable to UHS - including Electronic Health Records ("EHR") impact

$233,799

$2.37

$214,818

$2.20

Plus/minus impact of EHR implementation: 

EHR-related incentive income, pre-tax

(4,795)

(1,955)

EHR-related salaries, wages and benefits, pre-tax

238

7,943

EHR-related other operating costs, pre-tax

2,018

396

EHR-related depreciation & amortization, pre-tax

12,492

3,527

EHR-related minority interest in earnings of consolidated entities, pre-tax

(1,525)

(1,897)

Income tax provision on EHR-related items 

(3,174)

(3,034)

After-tax impact of EHR-related items

5,254

0.05

4,980

0.05

Adjusted net income attributable to UHS

$239,053

$2.42

$219,798

$2.25

 

 

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

Three months

Six months

ended June 30,

ended June 30,

2013

2012

2013

2012

Net income

$167,803

$117,444

$297,738

$260,014

Other comprehensive income (loss):

   Unrealized derivative gains (loss) on cash flow hedges

5,282

212

9,817

1,827

   Amortization of terminated hedge

(84)

(84)

(168)

(168)

Other comprehensive (loss) income before tax

5,198

128

9,649

1,659

Income tax (benefit) expense related to items of other comprehensive income (loss)

1,960

50

3,638

632

Total other comprehensive (loss) income, net of tax

3,238

78

6,011

1,027

Comprehensive income

171,041

117,522

303,749

261,041

Less: Comprehensive income attributable to noncontrolling interests

15,962

9,883

26,113

23,846

Comprehensive income attributable to UHS

$155,079

$107,639

$277,636

$237,195

 

 

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

June 30,

December 31,

2013

2012

Assets

Current assets:

    Cash and cash equivalents

$

12,558

$

23,471

    Accounts receivable, net

1,149,477

1,067,197

    Supplies

100,324

99,000

    Deferred income taxes

134,888

104,461

    Other current assets

86,733

87,936

    Assets of facilities held for sale

0

25,431

          Total current assets

1,483,980

1,407,496

Property and equipment

5,519,819

5,368,345

Less: accumulated depreciation

(2,116,414)

(1,986,110)

3,403,405

3,382,235

Other assets:

    Goodwill

3,041,346

3,036,765

    Deferred charges

66,910

75,888

    Other

321,612

298,459

$

8,317,253

$

8,200,843

Liabilities and Stockholders' Equity

Current liabilities:

    Current maturities of long-term debt

$

73,579

$

2,589

    Accounts payable and accrued liabilities

958,952

889,557

    Federal and state taxes

16,619

1,062

    Liabilities of facilities held for sale

0

850

          Total current liabilities

1,049,150

894,058

Other noncurrent liabilities

310,948

395,355

Long-term debt

3,473,106

3,727,431

Deferred income taxes

206,818

183,747

Redeemable noncontrolling interest

233,417

234,303

UHS common stockholders' equity

2,991,457

2,713,345

Noncontrolling interest

52,357

52,604

          Total equity

3,043,814

2,765,949

$

8,317,253

$

8,200,843

 

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Six months

ended June 30,

2013

2012

Cash Flows from Operating Activities:

  Net income

$297,738

$260,014

  Adjustments to reconcile net income to net 

cash provided by operating activities:

Depreciation & amortization

161,677

148,703

Stock-based compensation expense

13,579

10,996

Gains on sales of assets and business, net of losses

(2,277)

0

  Changes in assets & liabilities, net of effects from

acquisitions and dispositions:

   Accounts receivable

(82,224)

(63,937)

   Accrued interest

13,199

15,873

   Accrued and deferred income taxes 

18,365

3,955

   Other working capital accounts 

32,421

(13,085)

   Other assets and deferred charges

9,069

13,866

   Other 

4,083

2,050

   Accrued insurance expense, net of commercial premiums paid

(22,590)

42,241

   Payments made in settlement of self-insurance claims

(37,038)

(47,814)

          Net cash provided by operating activities

406,002

372,862

Cash Flows from Investing Activities:

   Property and equipment additions, net of disposals

(175,944)

(182,351)

   Proceeds received from sale of assets and businesses

34,008

53,461

   Acquisition of property and businesses

(1,320)

(11,476)

   Costs incurred for purchase and implementation of electronic health records application

(33,396)

(28,008)

   Return of deposit on terminated purchase agreement

0

6,500

          Net cash used in investing activities

(176,652)

(161,874)

Cash Flows from Financing Activities:

   Reduction of long-term debt

(196,096)

(195,686)

   Additional borrowings

11,000

0

   Repurchase of common shares

(21,373)

(2,927)

   Dividends paid

(9,795)

(9,673)

   Issuance of common stock

2,735

2,575

   Profit distributions to noncontrolling interests

(26,734)

(13,565)

          Net cash used in financing activities

(240,263)

(219,276)

Decrease in cash and cash equivalents

(10,913)

(8,288)

Cash and cash equivalents, beginning of period

23,471

41,229

Cash and cash equivalents, end of period

$12,558

$32,941

Supplemental Disclosures of Cash Flow Information:

  Interest paid

$54,067

$62,158

  Income taxes paid, net of refunds

$152,553

$141,571

 

 

       Universal Health Services, Inc.

  Supplemental Statistical Information

                   (un-audited)

 % Change 

 % Change 

Quarter Ended

6 months ended

Same Facility:

6/30/2013

6/30/2013

Acute Care Hospitals

Revenues

4.9%

2.8%

Adjusted Admissions

2.0%

0.2%

Adjusted Patient Days

1.2%

0.7%

Revenue Per Adjusted Admission

2.9%

2.5%

Revenue Per Adjusted Patient Day

3.7%

2.1%

Behavioral Health Hospitals

Revenues

3.2%

2.8%

Adjusted Admissions

5.4%

2.9%

Adjusted Patient Days

1.8%

0.8%

Revenue Per Adjusted Admission

-2.1%

-0.1%

Revenue Per Adjusted Patient Day

1.3%

2.0%

UHS Consolidated

Second Quarter Ended

Six months Ended

6/30/2013

6/30/2012

6/30/2013

6/30/2012

Revenues

$1,834,975

$1,723,083

$3,666,607

$3,516,119

EBITDA   (1)

369,774

293,432

683,357

620,289

EBITDA Margin (1)

20.2%

17.0%

18.6%

17.6%

Cash Flow From Operations

218,239

245,639

406,002

372,862

Days Sales Outstanding

57

54

57

53

Capital Expenditures  

80,025

89,788

175,944

182,351

Debt 

3,546,685

3,461,006

Shareholders Equity

2,991,457

2,536,884

Debt / Total Capitalization

54.2%

57.7%

Debt / EBITDA  (2)

2.75

2.99

Debt / Cash From Operations  (2)

4.18

4.71

Acute Care EBITDAR Margin  (3) 

14.8%

16.1%

15.4%

17.6%

Behavioral Health EBITDAR Margin  (3) 

28.7%

28.7%

28.6%

27.7%

(1)  Net of Minority Interest 

(2)  Latest 4 quarters

(3)  Same facility basis, before Corporate overhead allocation and minority interest.

 

 

       UNIVERSAL HEALTH SERVICES, INC.

        SELECTED HOSPITAL STATISTICS

         FOR THE THREE MONTHS ENDED

                     JUNE 30, 2013 AND 2012

AS REPORTED:

                       ACUTE (1)

               BEHAVIORAL HEALTH

06/30/13

06/30/12

%  change

06/30/13

06/30/12

%  change

Hospitals owned and leased

23

23

0.0%

182

176

3.4%

Average licensed beds

5,617

5,545

1.3%

19,982

19,191

4.1%

Patient days

272,745

270,752

0.7%

1,368,883

1,305,933

4.8%

Average daily census

2,997.2

2,975.3

0.7%

15,042.7

14,350.9

4.8%

Occupancy-licensed beds

53.4%

53.7%

-0.6%

75.3%

74.8%

0.7%

Admissions

60,697

59,768

1.6%

101,726

91,936

10.6%

Length of stay

4.5

4.5

-0.8%

13.5

14.2

-5.3%

Inpatient revenue

$3,321,384

$3,034,837

9.4%

$1,598,383

$1,416,820

12.8%

Outpatient revenue

1,708,200

1,540,569

10.9%

193,703

162,162

19.5%

Total patient revenue

5,029,584

4,575,406

9.9%

1,792,086

1,578,982

13.5%

Other revenue

30,747

22,842

34.6%

30,887

36,404

-15.2%

Gross hospital revenue

5,060,331

4,598,248

10.0%

1,822,973

1,615,386

12.9%

Total deductions

3,949,632

3,590,507

10.0%

862,919

724,569

19.1%

Net hospital revenue before 

  provision for doubtful accounts

$1,110,699

$1,007,741

10.2%

$960,054

$890,817

7.8%

Provision for doubtful accounts

$216,053

$164,144

31.6%

$30,584

$20,550

48.8%

Net hospital revenue 

894,646

843,597

6.1%

929,470

870,267

6.8%

SAME FACILITY:

                      ACUTE  (1)

             BEHAVIORAL HEALTH (2)

06/30/13

06/30/12

%  change

06/30/13

06/30/12

%  change

Hospitals owned and leased

23

23

0.0%

171

171

0.0%

Average licensed beds

5,617

5,545

1.3%

19,018

18,926

0.5%

Patient days

272,745

270,752

0.7%

1,310,418

1,290,025

1.6%

Average daily census

2,997.2

2,975.3

0.7%

14,400.2

14,176.1

1.6%

Occupancy-licensed beds

53.4%

53.7%

-0.6%

75.7%

74.9%

1.1%

Admissions

60,697

59,768

1.6%

96,235

91,494

5.2%

Length of stay

4.5

4.5

-0.8%

13.6

14.1

-3.4%

(1) Auburn is excluded in both current and prior years.

(2) Jefferson Trail, Manatee Palms Group Homes, The Peaks, San Juan Capestrano, Keys of Carolina, 

    Garfield Park and Austin Oaks are excluded in both current and prior years. Community BH

    and prior years. Brooke Glen is included in both current and prior years from March 1st through 

    June 30th. John Costigan Ctr and Community BH is excluded in both current and prior years from  

    June 1st through June 30th. 

       UNIVERSAL HEALTH SERVICES, INC.

        SELECTED HOSPITAL STATISTICS

          FOR THE SIX MONTHS ENDED

                     JUNE 30, 2013 AND 2012

AS REPORTED:

                       ACUTE   (1)

               BEHAVIORAL HEALTH

06/30/13

06/30/12

%  change

06/30/13

06/30/12

%  change

Hospitals owned and leased

23

23

0.0%

182

176

3.4%

Average licensed beds

5,617

5,543

1.3%

20,003

19,142

4.5%

Patient days

563,471

560,778

0.5%

2,723,937

2,615,095

4.2%

Average daily census

3,113.1

3,081.2

1.0%

15,049.4

14,368.7

4.7%

Occupancy-licensed beds

55.4%

55.6%

-0.3%

75.2%

75.1%

0.2%

Admissions

124,436

124,378

0.0%

203,122

187,711

8.2%

Length of stay

4.5

4.5

0.4%

13.4

13.9

-3.7%

Inpatient revenue

$6,828,424

$6,312,862

8.2%

$3,174,531

$2,832,358

12.1%

Outpatient revenue

3,359,775

3,089,419

8.8%

379,505

322,835

17.6%

Total patient revenue

10,188,199

9,402,281

8.4%

3,554,036

3,155,193

12.6%

Other revenue

61,872

43,821

41.2%

61,987

72,970

-15.1%

Gross hospital revenue

10,250,071

9,446,102

8.5%

3,616,023

3,228,163

12.0%

Total deductions

8,012,595

7,386,466

8.5%

1,717,818

1,453,758

18.2%

Net hospital revenue before 

  provision for doubtful accounts

$2,237,476

$2,059,636

8.6%

$1,898,205

$1,774,405

7.0%

Provision for doubtful accounts

434,096

289,508

49.9%

59,191

43,818

35.1%

Net hospital revenue 

1,803,380

1,770,128

1.9%

1,839,014

1,730,587

6.3%

SAME FACILITY:

                       ACUTE   (1)

             BEHAVIORAL HEALTH (2)

06/30/13

06/30/12

%  change

06/30/13

06/30/12

%  change

Hospitals owned and leased

23

23

0.0%

171

171

0.0%

Average licensed beds

5,617

5,543

1.3%

18,985

18,830

0.8%

Patient days

563,471

560,778

0.5%

2,593,658

2,576,883

0.7%

Average daily census

3,113.1

3,081.2

1.0%

14,329.6

14,158.7

1.2%

Occupancy-licensed beds

55.4%

55.6%

-0.3%

75.5%

75.2%

0.4%

Admissions

124,436

124,378

0.0%

191,343

186,097

2.8%

Length of stay

4.5

4.5

0.4%

13.6

13.8

-2.1%

(1) Auburn is excluded in both current and prior years.

(2) Jefferson Trail, Manatee Palms Group Homes, The Peaks, San Juan Capestrano, Keys of Carolina, 

    Garfield Park and Austin Oaks are excluded in both current and prior years. Community BH

    and prior years. Brooke Glen is included in both current and prior years from March 1st through 

    June 30th. John Costigan Ctr and Community BH is excluded in both current and prior years from  

    June 1st through June 30th. 

SOURCE Universal Health Services, Inc.

For further information: Steve Filton, Chief Financial Officer, 610-768-3300

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