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UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES 2022 FIRST QUARTER FINANCIAL RESULTS

04/25/2022

Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended March 31, 2022 and 2021:

KING OF PRUSSIA, Pa., April 25, 2022 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $153.9 million, or $2.02 per diluted share, during the first quarter of 2022, as compared to $209.1 million, or $2.43 per diluted share, during the first quarter of 2021. Net revenues increased by 9.3% to $3.293 billion during the first quarter of 2022 as compared to $3.013 billion during the first quarter of 2021.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income attributable to UHS during the first quarter of 2022 was $163.5 million, or $2.15 per diluted share, as compared to $210.1 million, or $2.44 per diluted share, during the first quarter of 2021. 

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2022, was an unfavorable after-tax unrealized loss of $9.5 million, or $.13 per diluted share, ($12.5 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 first quarter of 2021, was a net aggregate unfavorable after-tax impact of $1.1 million, or $.01 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $2.1 million, or $.02 per diluted share, ($2.8 million pre-tax which is included in "Other (income) expense, net"), resulting from a decrease in the market value of certain equity securities, and; (ii) a favorable after-tax impact of $1.1 million, or $.01 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 earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI", NCI is net income attributable to noncontrolling interests), was $368.3 million during the first quarter of 2022, as compared to $426.3 million during the first 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 $379.5 million during the first quarter of 2022, as compared to $427.1 million during the first quarter of 2021.

Acute Care Services – Three-month periods ended March 31, 2022 and 2021:

During the first quarter of 2022, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased by 5.7% and adjusted patient days increased by 5.5%, as compared to the first quarter of 2021. At these facilities, during the first quarter of 2022, net revenue per adjusted admission increased by 3.1% and net revenue per adjusted patient day increased by 3.3%, as compared to the first quarter of 2021. Net revenues generated from our acute care services on a same facility basis increased by 9.7% during the first quarter of 2022, as compared to the first quarter of 2021. 

Behavioral Health Care Services – Three-month periods ended March 31, 2022 and 2021:

During the first quarter of 2022, at behavioral health care facilities on a same facility basis, adjusted admissions decreased by 1.9% and adjusted patient days decreased by 1.3%, as compared to the first quarter of 2021. At these facilities, during the first quarter of 2022, net revenue per adjusted admission increased by 5.8% and net revenue per adjusted patient day increased by 5.1%, as compared to the first quarter of 2021.  Net revenues generated from our behavioral health care services increased by 3.8% during the first quarter of 2022, as compared to the first quarter of 2021.

COVID-19

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 COVID-19 vaccination process commenced during the first quarter of 2021. Since that time through the second quarter of 2021, we had generally experienced a decline in COVID-19 patients as well as a corresponding recovery in non-COVID patient activity.  However, during the third and fourth quarters of 2021, and continuing into the early part of the first quarter of 2022, our facilities generally experienced an increase in COVID-19 patients resulting from the Delta and, more recently, the highly transmissible Omicron variants. COVID-19 related patient volumes at our facilities were generally declining during the latter part of the first quarter of 2022.   

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 had a material unfavorable impact on our results of operations during the first quarter of 2022. The length and extent of the disruptions caused by the COVID–19 pandemic are currently unknown; however, we expect such disruptions to continue during 2022.

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, developments related to the COVID-19 pandemic could continue to materially affect our financial performance during 2022. 

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

For the three months ended March 31, 2022, our net cash provided by operating activities was $445 million as compared to $72 million during the first quarter of 2021.  The $374 million net increase in our net cash provided by operating activities during the first quarter of 2022, as compared to the first quarter of 2021, was due to: (i) a favorable change of $510 million resulting primarily 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 $72 million in accounts receivable; (iii) an unfavorable change of $44 million resulting from a decrease in net income plus depreciation and amortization expense, stock-based compensation expense and gain/loss on sales of assets and businesses, and; (iv) $20 million of other combined net unfavorable changes.    

Liquidity:

As of March 31, 2022, we had $736 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 previously announced, on February 24, 2022, our Board of Directors authorized a $1.4 billion increase to our stock repurchase program. Pursuant to this 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 first quarter of 2022, we have repurchased approximately 2.65 million shares at an aggregate cost of approximately $350.2 million (approximately $132 per share).  As of March 31, 2022, we had an aggregate available repurchase authorization of approximately $1.41 billion.  

2022 Operating Results Forecast:

On February 24, 2022, we provided our 2022 operating results forecast as part of our 2021 fourth quarter and full year financial results' announcement.  As disclosed at that time, since the future volumes and severity of COVID-19 patients remain highly uncertain and subject to change, as well as 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. 

Our operating results during the first quarter of 2022 reflect continued uncertainties related to the COVID-19 pandemic as well cost escalations related to the nationwide shortage of nurses and other clinical staff and support personnel.  As a result, our labor costs were higher than anticipated, and patient volumes at our behavioral health care facilities were lower than anticipated, which unfavorably impacted our operating results during the first quarter of 2022.

At this time, we are not changing our previously released 2022 operating results forecast.  However, given the continued uncertainties related to the COVID-19 pandemic, as well as the healthcare staffing shortage and its unfavorable impact on our labor costs and behavioral health patient volumes, we may make reductions to our 2022 full year operating results forecast at a future date if the unfavorable operating trends experienced during the first quarter of 2022 do not improve.     

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 26, 2022. The dial-in number is 1-877-648-7971. 

A live broadcast of the conference call will be available on our website at www.uhs.com.  Also, a replay of the call will be available following the conclusion of the live call and will be available for one full year.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation's largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2021 were approximately $12.6 billion. In 2022, UHS was again recognized as one of the World's Most Admired Companies by Fortune; and in 2021 the Company ranked #270 on the Fortune 500 and #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 (including the newly constructed, 170-bed Northern Nevada Sierra Medical Center located in Reno, Nevada, which opened in early April, 2022), 336 behavioral health facilities, 40 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 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 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. We are not able to fully quantify the impact that these factors will have on our future financial results, but developments related to the COVID-19 pandemic could continue to materially affect our financial performance during 2022.

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 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-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

ended March 31,

2022

2021




Net revenues

$3,292,956

$3,012,987




Operating charges:


   Salaries, wages and benefits

1,692,270

1,497,773

   Other operating expenses

820,934

709,708

   Supplies expense

371,073

347,110

   Depreciation and amortization

143,784

131,403

   Lease and rental expense

32,038

31,324

3,060,099

2,717,318




Income from operations

232,857

295,669




Interest expense, net

21,673

21,957

Other (income) expense, net

11,201

835




Income before income taxes

199,983

272,877




Provision for income taxes

48,962

63,807




Net income

151,021

209,070




Less:  Net income (loss) attributable to


noncontrolling interests ("NCI")

(2,892)

(21)




Net income attributable to UHS

$153,913

$209,091
















Basic earnings per share attributable to UHS (a)

$2.05

$2.46




Diluted earnings per share attributable to UHS (a)

$2.02

$2.43

 

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)



Three months

(a) Earnings per share calculation:

ended March 31,

2022

2021

Basic and diluted:


Net income attributable to UHS

$153,913

$209,091

Less: Net income attributable to unvested restricted share grants

(249)

(552)

Net income attributable to UHS - basic and diluted

$153,664

$208,539




Weighted average number of common shares - basic

75,030

84,782




Basic earnings per share attributable to UHS:

$2.05

$2.46




Weighted average number of common shares

75,030

84,782

Add: Other share equivalents

1,011

1,014

Weighted average number of common shares and equiv. - diluted

76,041

85,796




Diluted earnings per share attributable to UHS:

$2.02

$2.43

 

Universal Health Services, Inc.

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

For the Three Months ended March 31, 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

March 31, 2022

revenues

March 31, 2021

revenues








Net income attributable to UHS

$153,913


$209,091

   Depreciation and amortization

143,784


131,403

   Interest expense, net

21,673


21,957

   Provision for income taxes

48,962


63,807

EBITDA net of NCI

$368,332

11.2%

$426,258

14.1%








Other (income) expense, net

11,201


835

Adjusted EBITDA net of NCI

$379,533

11.5%

$427,093

14.2%








Net revenues

$3,292,956


$3,012,987









































Calculation of Adjusted Net Income Attributable to UHS









Three months ended

Three months ended

March 31, 2022

March 31, 2021



Per


Per

Amount

Diluted Share

Amount

Diluted Share








Net income attributable to UHS

$153,913

$2.02

$209,091

$2.43

Plus/minus after-tax adjustments:






Unrealized loss on equity securities

9,537

0.13

2,137

0.02

Impact of ASU 2016-09

-

-

(1,079)

(0.01)

Subtotal adjustments

9,537

0.13

1,058

0.01

Adjusted net income attributable to UHS

$163,450

$2.15

$210,149

$2.44

 

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)





Three months

ended March 31,

2022

2021




Net income

$151,021

$209,070

Other comprehensive income (loss):


   Foreign currency translation adjustment

(18,470)

(10,346)

Other comprehensive income (loss) before tax

(18,470)

(10,346)

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

(944)

(1,466)

Total other comprehensive income (loss), net of tax

(17,526)

(8,880)




Comprehensive income

133,495

200,190

Less: Comprehensive income (loss) attributable to noncontrolling interests

(2,892)

(21)

Comprehensive income attributable to UHS

$136,387

$200,211

 

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)










March 31,

December 31,



2022

2021

Assets





Current assets:





    Cash and cash equivalents

$

105,999

$

115,301

    Accounts receivable, net

1,754,877

1,746,635

    Supplies

208,302

206,839

    Other current assets

232,724

194,781

          Total current assets

2,301,902

2,263,556







Property and equipment

10,929,292

10,770,702

Less: accumulated depreciation

(5,010,825)

(4,896,427)



5,918,467

5,874,275







Other assets:





    Goodwill

3,949,788

3,962,624

    Deferred income taxes

47,549

45,707

    Right of use assets-operating leases

368,921

367,477

    Deferred charges

6,310

6,525

    Other

551,509

573,379

Total Assets

$

13,144,446

$

13,093,543







Liabilities and Stockholders' Equity





Current liabilities:





    Current maturities of long-term debt

$

48,486

$

48,409

    Accounts payable and other liabilities

1,976,389

1,860,496

    Operating lease liabilities

65,607

64,484

    Federal and state taxes

55,734

10,720

          Total current liabilities

2,146,216

1,984,109







Other noncurrent liabilities

475,006

464,759

Operating lease liabilities noncurrent

305,643

304,624

Long-term debt

4,250,689

4,141,879







Redeemable noncontrolling interest

4,314

5,119







UHS common stockholders' equity

5,867,872

6,089,664

Noncontrolling interest

94,706

103,389

          Total equity

5,962,578

6,193,053







Total Liabilities and Stockholders' Equity

$

13,144,446

$

13,093,543

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three months

ended March 31,

2022

2021




Cash Flows from Operating Activities:


  Net income

$151,021

$209,070

  Adjustments to reconcile net income to net 


cash provided by operating activities:


Depreciation & amortization

143,784

131,403

Loss on sale of assets and businesses

1,084

0

Stock-based compensation expense

19,055

18,022

  Changes in assets & liabilities, net of effects from


acquisitions and dispositions:


   Accounts receivable

(15,073)

56,851

   Accrued interest

180

10,133

   Accrued and deferred income taxes 

47,548

53,769

   Other working capital accounts 

63,308

82,663

   Medicare accelerated payments and deferred CARES Act and other grants

250

(509,448)

   Other assets and deferred charges

26,042

(17)

   Other 

(4,020)

2,623

   Accrued insurance expense, net of commercial premiums paid

41,685

35,467

   Payments made in settlement of self-insurance claims

(29,431)

(18,741)

          Net cash provided by operating activities

445,433

71,795




Cash Flows from Investing Activities:


   Property and equipment additions

(200,002)

(247,459)

   Proceeds received from sales of assets and businesses

10,232

0

   Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment

20,710

(14,264)

   Decrease in capital reserves of commercial insurance subsidiary 

100

100

   Costs incurred for purchase of information technology applications, net of refunds

0

(575)

   Investment in, and advances to, joint ventures and other

0

(129)

          Net cash used in investing activities

(168,960)

(262,327)




Cash Flows from Financing Activities:


   Repayments of long-term debt

(11,966)

(251,830)

   Additional borrowings

117,400

0

   Repurchase of common shares

(365,505)

(7,464)

   Dividends paid

(14,875)

(17,018)

   Issuance of common stock

3,503

3,357

   Profit distributions to noncontrolling interests

(5,289)

(4,525)

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

(1,307)

7,603

          Net cash used in financing activities

(278,039)

(269,877)




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

(2,232)

423

Decrease in cash, cash equivalents and restricted cash

(3,798)

(459,986)

Cash, cash equivalents and restricted cash, beginning of period

178,934

1,279,154

Cash, cash equivalents and restricted cash, end of period

$175,136

$819,168




Supplemental Disclosures of Cash Flow Information:


  Interest paid

$20,388

$11,421




  Income taxes paid, net of refunds

$4,423

$8,654




  Noncash purchases of property and equipment

$90,730

$60,124

 

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)



















 % Change 





3 Months ended

Same Facility:



3/31/2022







Acute Care Hospitals





Revenues



9.7%

Adjusted Admissions



5.7%

Adjusted Patient Days



5.5%

Revenue Per Adjusted Admission



3.1%

Revenue Per Adjusted Patient Day



3.3%







Behavioral Health Hospitals





Revenues



3.8%

Adjusted Admissions



-1.9%

Adjusted Patient Days



-1.3%

Revenue Per Adjusted Admission



5.8%

Revenue Per Adjusted Patient Day



5.1%







UHS Consolidated

First Quarter Ended



3/31/2022

3/31/2021







Revenues

$3,292,956

$3,012,987

EBITDA net of NCI

$368,332

$426,258

EBITDA Margin net of NCI

11.2%

14.1%

Adjusted EBITDA net of NCI

$379,533

$427,093

Adjusted EBITDA Margin net of NCI

11.5%

14.2%







Cash Flow From Operations

$445,433

$71,795

Days Sales Outstanding

48

50

Capital Expenditures  

$200,002

$247,459







Debt 

$4,299,175

$3,613,103

UHS' Shareholders Equity

$5,867,872

$6,513,862

Debt / Total Capitalization

42.3%

35.7%

Debt / EBITDA net of NCI (1) (2)

2.32

1.87

Debt / Adjusted EBITDA net of NCI (1) (2)

2.32

1.87

Debt / Cash From Operations (1) (2)

3.42

1.87







(1) Latest 4 quarters.





(2) For the three months ended March 31, 2021, Debt, net of approximately $749 million of short-term cash

investments, resulted in ratios of 1.48 for each of Net Debt/EBITDA net of NCI, Net Debt/Adjusted EBITDA

net of NCI, and Net Debt/Cash from Operations.




 

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three months ended

March 31, 2022 and 2021

(in thousands)

























Same Facility Basis - Acute Care Hospital Services
























Three months ended

Three months ended




March 31, 2022

March 31, 2021




Amount

% of Net
Revenues 

Amount

% of Net
Revenues 


Net revenues

$1,834,779

100.0%

$1,671,836

100.0%


Operating charges:










Salaries, wages and benefits

820,210

44.7%

706,811

42.3%


Other operating expenses

437,477

23.8%

393,207

23.5%


Supplies expense

313,137

17.1%

296,478

17.7%


Depreciation and amortization

92,939

5.1%

81,184

4.9%


Lease and rental expense

17,715

1.0%

20,112

1.2%


Subtotal-operating expenses

1,681,478

91.6%

1,497,792

89.6%


Income from operations

153,301

8.4%

174,044

10.4%


Interest expense, net

638

0.0%

246

0.0%


Other (income) expense, net

201

0.0%

-

-


Income before income taxes

$152,462

8.3%

$173,798

10.4%






































All Acute Care Hospital Services
























Three months ended

Three months ended




March 31, 2022

March 31, 2021




Amount

% of Net
Revenues

Amount

% of Net
Revenues 


Net revenues

$1,912,316

100.0%

$1,694,542

100.0%


Operating charges:










Salaries, wages and benefits

843,906

44.1%

707,218

41.7%


Other operating expenses

482,078

25.2%

416,007

24.5%


Supplies expense

321,427

16.8%

296,479

17.5%


Depreciation and amortization

94,534

4.9%

81,362

4.8%


Lease and rental expense

20,852

1.1%

20,112

1.2%


Subtotal-operating expenses

1,762,797

92.2%

1,521,178

89.8%


Income from operations

149,519

7.8%

173,364

10.2%


Interest expense, net

638

0.0%

246

0.0%


Other (income) expense, net

201

0.0%

-

-


Income before income taxes

$148,680

7.8%

$173,118

10.2%






































We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments 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.












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 months ended

March 31, 2022 and 2021

(in thousands)

























Same Facility - Behavioral Health Care Services
























Three months ended

Three months ended




March 31, 2022

March 31, 2021




Amount

% of Net
Revenues 

Amount

% of Net
Revenues 


Net revenues

$1,334,532

100.0%

$1,285,977

100.0%


Operating charges:










Salaries, wages and benefits

745,806

55.9%

698,228

54.3%


Other operating expenses

265,691

19.9%

244,365

19.0%


Supplies expense

49,597

3.7%

50,513

3.9%


Depreciation and amortization

44,731

3.4%

45,090

3.5%


Lease and rental expense

10,724

0.8%

11,251

0.9%


Subtotal-operating expenses

1,116,549

83.7%

1,049,447

81.6%


Income from operations

217,983

16.3%

236,530

18.4%


Interest expense, net

465

0.0%

338

0.0%


Other (income) expense, net

(115)

(0.0)%

413

0.0%


Income before income taxes

217,633

16.3%

$235,779

18.3%






































All Behavioral Health Care Services
























Three months ended

Three months ended




March 31, 2022

March 31, 2021




Amount

% of Net
Revenues

Amount

% of Net
Revenues 


Net revenues

$1,366,467

100.0%

$1,315,337

100.0%


Operating charges:










Salaries, wages and benefits

753,886

55.2%

703,975

53.5%


Other operating expenses

298,467

21.8%

269,297

20.5%


Supplies expense

50,178

3.7%

51,009

3.9%


Depreciation and amortization

46,079

3.4%

46,482

3.5%


Lease and rental expense

10,820

0.8%

11,683

0.9%


Subtotal-operating expenses

1,159,430

84.8%

1,082,446

82.3%


Income from operations

207,037

15.2%

232,891

17.7%


Interest expense, net

1,365

0.1%

1,153

0.1%


Other (income) expense, net

(115)

(0.0)%

413

0.0%


Income before income taxes

205,787

15.1%

$231,325

17.6%

















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.












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

March 31, 2022 and 2021


























AS REPORTED:







































ACUTE

BEHAVIORAL HEALTH


3/31/22

3/31/21

%  change

3/31/22

3/31/21

%  change













Hospitals owned and leased

27

26

3.8%

336

335

0.3%

Average licensed beds

6,749

6,515

3.6%

24,243

24,018

0.9%

Average available beds

6,577

6,343

3.7%

24,143

23,918

0.9%

Patient days

405,952

392,391

3.5%

1,506,351

1,534,162

-1.8%

Average daily census

4,510.6

4,359.9

3.5%

16,737.2

17,046.2

-1.8%

Occupancy-licensed beds

66.8%

66.9%

-0.1%

69.0%

71.0%

-2.8%

Occupancy-available beds

68.6%

68.7%

-0.2%

69.3%

71.3%

-2.8%

Admissions

75,289

72,924

3.2%

112,433

115,408

-2.6%

Length of stay

5.4

5.4

-0.1%

13.4

13.3

0.7%













Inpatient revenue

$10,239,231

$9,119,184

12.3%

$2,436,474

$2,473,565

-1.5%

Outpatient revenue

5,775,539

4,580,720

26.1%

257,113

246,764

4.2%

Total patient revenue

16,014,770

13,699,904

16.9%

2,693,587

2,720,329

-1.0%

Other revenue

184,481

143,265

28.8%

66,697

62,208

7.2%

Gross hospital revenue

16,199,251

13,843,169

17.0%

2,760,284

2,782,537

-0.8%

Total deductions

14,286,935

12,148,627

17.6%

1,393,817

1,467,200

-5.0%

Net hospital revenue 

$1,912,316

$1,694,542

12.9%

$1,366,467

$1,315,337

3.9%


























SAME FACILITY:


























ACUTE

BEHAVIORAL HEALTH


3/31/22

3/31/21

%  change

3/31/22

3/31/21

%  change













Hospitals owned and leased

26

26

0.0%

331

331

0.0%

Average licensed beds

6,683

6,515

2.6%

23,841

23,725

0.5%

Average available beds

6,511

6,343

2.6%

23,741

23,625

0.5%

Patient days

402,165

392,391

2.5%

1,493,766

1,519,290

-1.7%

Average daily census

4,468.5

4,359.9

2.5%

16,597.4

16,881.0

-1.7%

Occupancy-licensed beds

66.9%

66.9%

-0.1%

69.6%

71.2%

-2.2%

Occupancy-available beds

68.6%

68.7%

-0.2%

69.9%

71.5%

-2.2%

Admissions

74,933

72,924

2.8%

111,084

113,708

-2.3%

Length of stay

5.4

5.4

-0.3%

13.4

13.4

0.6%

 

 

Cision View original content:https://www.prnewswire.com/news-releases/universal-health-services-inc-announces-2022-first-quarter-financial-results-301532277.html

SOURCE Universal Health Services, Inc.

Steve Filton, Chief Financial Officer, 610-768-3300