Universal Health Services, Inc. Reports 18% First Quarter EPS Growth
04/16/2003
KING OF PRUSSIA, Pa., Apr 16, 2003 /PRNewswire-FirstCall via COMTEX/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its earnings per share (diluted) for the three-month period ended March 31, 2003 were $.84, an 18% increase from the earnings per share recorded in the same period of the prior year. Net revenues and net income for the quarter were $894.8 million and $52.8 million, increases of 11% and 16%, respectively, from the results of the same period in the prior year. At March 31, 2003, the Company's balance sheet debt, net of cash, was approximately $709 million and its shareholders' equity was approximately $950 million.
On a same facility basis, patient admissions to the Company's acute care hospitals located in the U.S. and Puerto Rico and the Company's behavioral health care facilities, increased approximately 2% during the first quarter of 2003 as compared to the comparable prior year quarter. For the Company's acute care hospitals owned in both periods located in the U.S. and Puerto Rico, revenues and revenue per adjusted patient day each increased 8.4% during the 2003 first quarter as compared to the prior year quarter. For the Company's behavioral health hospitals owned in both periods, revenues increased 4.8% and revenue per adjusted patient day increased 1.7%.
The Company's operating margin (as calculated on the attached schedule of Supplemental Consolidated Income Statement Information), increased to 16.6% in the three-month period ended March 31, 2003 as compared to 16.3% in the same period of the prior year. Managed care pricing remained strong in the quarter. Operating margins for the Company's acute care hospitals located in the U.S. and Puerto Rico owned in both the three-month periods ended March 31, 2003 and March 31, 2002, increased to 18.3% from 17.7%. Operating margins for the Company's behavioral health hospitals owned in both periods increased to 21.4% during the first quarter of 2003 from 20.5% during the prior year quarter.
During the quarter, the Company acquired a 108-bed behavioral health system in Anchorage, Alaska and two hospitals located in France. The Company expects to complete construction of its new 176-bed hospital in Las Vegas and a 90-bed addition to its Northwest Texas Hospital in Amarillo, Texas later in 2003.
There will be a conference call for investors at 9:00 AM ET on Thursday, April 17, 2003. The dial-in number is 1-877-648-7971.
Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals, ambulatory surgery and radiation centers nationwide, in Puerto Rico, and in France. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT).
Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filings with the Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes. The Company uses operating income and/or operating margin, which are commonly used indicators within the health care industry, as analytical indicators for purposes of assessing operating performance of its facilities. Operating income and operating margin should not be considered as a measure of financial performance under generally accepted accounting principles, and the items excluded from operating income and operating margin are significant components in understanding and assessing financial performance. Because operating income and operating margin are not measurements determined in accordance with generally accepted accounting principles and are thus susceptible to varying calculations, operating income and operating margin as presented may not be comparable to other similarly titled measures of other companies.
For additional information on the Company, visit our web site: http://www.uhsinc.com.
Universal Health Services, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
Unaudited
Three months
ended March 31,
2003 2002
Net revenues $894,808 $804,371
Operating charges:
Salaries, wages and benefits 355,782 319,707
Other operating expenses 203,910 191,896
Supplies expense 120,737 103,508
Provision for doubtful accounts 65,420 57,894
Depreciation and amortization 34,537 29,408
Lease and rental expense 15,821 15,190
Interest expense, net 9,855 8,964
Gain on foreign exchange and
derivative transactions (6) (234)
806,056 726,333
Income before minority interests and
income taxes 88,752 78,038
Minority interests in earnings
of consolidated entities 5,030 5,873
Income before income taxes 83,722 72,165
Provision for income taxes 30,932 26,492
Net income $52,790 $45,673
Earnings per common share - basic $0.91 $0.76
Earnings per common share - diluted $0.84 $0.71
Weighted average number of common
shares - basic 58,277 59,862
Weighted average number of common
share equivalents 7,319 7,186
Weighted average number of common
shares and equiv. - diluted 65,596 67,048
EARNINGS PER SHARE CALCULATION
Net income $52,790 $45,673
Add: Debenture interest, net of taxes 2,177 2,092
Adjusted net income $54,967 $47,765
Weighted average number of common
shares - basic 58,277 59,862
Add: Shares for conversion of
convertible debentures 6,577 6,577
Other share equivalents 742 609
Weighted average number of common
shares and equiv. - diluted 65,596 67,048
Earnings per common share - diluted $0.84 $0.71
Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Unaudited
March 31, December 31,
2003 2002
Assets:
Cash and cash equivalents $32,416 $17,750
Accounts receivable, net 510,149 474,763
Other current assets 112,013 114,063
Property, plant and equipment, net 1,222,171 1,167,287
Other assets 564,279 549,366
$2,441,028 $2,323,229
Liabilities and Stockholders'
Equity:
Current portion of long-term debt $11,092 $8,253
Other current liabilities 377,658 362,160
Other noncurrent liabilities 219,310 206,238
Minority interest 139,070 134,339
Long-term debt 730,600 680,514
Deferred income taxes 13,309 14,266
Stockholders' equity 949,989 917,459
$2,441,028 $2,323,229
Universal Health Services, Inc.
Supplemental Consolidated Income Statement Information
(in thousands)
unaudited
Three months ended Three months ended
March 31, 2003 March 31, 2002
Net revenues $894,808 100.0% $804,371 100.0%
Operating charges:
Salaries, wages and benefits 355,782 39.8% 319,707 39.7%
Other operating expenses 203,910 22.8% 191,896 23.9%
Supplies expense 120,737 13.5% 103,508 12.9%
Provision for doubtful accounts 65,420 7.3% 57,894 7.2%
745,849 83.4% 673,005 83.7%
Operating income/margin 148,959 16.6% 131,366 16.3%
Depreciation and amortization 34,537 29,408
Lease and rental expense 15,821 15,190
Interest expense, net 9,855 8,964
Gain on foreign exchange and
derivative transactions (6) (234)
Minority interests in earnings of
consolidated entities 5,030 5,873
Income before income taxes 83,722 72,165
Provision for income taxes 30,932 26,492
Net income $52,790 $45,673
Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
% Change
Quarter Ended
Same Facility Basis 03/31/2003
Acute Care Hospitals
Revenues 8.4%
Adjusted Admissions 2.7%
Adjusted Patient Days 0.0%
Revenue Per Adjusted Admission 5.6%
Revenue Per Adjusted Patient Day 8.4%
Behavioral Health Hospitals
Revenues 4.8%
Adjusted Admissions 1.3%
Adjusted Patient Days 3.1%
Revenue Per Adjusted Admission 3.4%
Revenue Per Adjusted Patient Day 1.7%
UHS Consolidated First Quarter Ended
03/31/2003 03/31/2002
Revenues $894,808 $804,371
EBITDA (1) $128,108 $110,303
EBITDA Margin (1) 14.3% 13.7%
Cash Flow From Operations $80,766 $56,873
Days Sales Outstanding 51 54
Capital Expenditures $40,342 $40,711
Debt (net of cash) $709,276 $689,660
Shareholders Equity $949,989 $853,542
Debt / Total Capitalization 42.7% 44.7%
Debt / EBITDA (2) 1.57 1.84
Debt / Cash From Operations (2) 2.00 2.37
Acute Care EBITDAR Margin (3) 18.3% 17.7%
Behavioral Health EBITDAR Margin (3) 21.4% 20.5%
(1) Net of Minority Interest
(2) Latest 4 quarters
(3) Before Corporate overhead allocation and minority interest
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
MARCH 31, 2003
AS REPORTED:
For the three months ended
Acute (1) Behavioral Health
03/31/03 03/31/02 % 03/31/03 03/31/02 %
Hospitals owned
and leased 25 26 -3.8% 39 37 5.4%
Average licensed
beds 5,735 5,846 -1.9% 3,871 3,749 3.3%
Patient days 320,892 323,304 -0.7% 268,090 248,968 7.7%
Average daily
census 3,565.5 3,592.3 -0.7% 2,978.8 2,766.3 7.7%
Occupancy-
licensed beds 62.2% 61.4% 1.2% 77.0% 73.8% 4.3%
Admissions 68,115 66,860 1.9% 21,954 21,251 3.3%
Length of stay 4.7 4.8 -2.6% 12.2 11.7 4.2%
Inpatient
revenue $1,509,452 $1,286,326 17.3% $273,277 $242,379 12.7%
Outpatient
revenue 510,743 424,543 20.3% 38,573 38,300 0.7%
Total patient
revenue 2,020,195 1,710,869 18.1% 311,850 280,679 11.1%
Other revenue 11,006 15,216 -27.7% 8,601 9,742 -11.7%
Gross
hospital
revenue 2,031,201 1,726,085 17.7% 320,451 290,421 10.3%
Total
deductions 1,354,963 1,102,157 22.9% 167,704 148,300 13.1%
Net hospital
revenue $676,238 $623,928 8.4% $152,747 $142,121 7.5%
SAME FACILITY:
For the three months ended
Acute (1) Behavioral Health (2)
03/31/03 03/31/02 % 03/31/03 03/31/02 %
Hospitals owned
and leased 25 26 -3.8% 37 37 0.0%
Average
licensed beds 5,735 5,846 -1.9% 3,754 3,749 0.1%
Patient days 320,892 323,304 -0.7% 259,038 248,940 4.1%
Average daily
census 3,565.6 3,592.3 -0.7% 2,878.2 2,766.0 4.1%
Occupancy-
licensed beds 62.2% 61.4% 1.2% 76.7% 73.8% 3.9%
Admissions 68,115 66,860 1.9% 21,744 21,251 2.3%
Length of stay 4.7 4.8 -2.6% 11.9 11.7 1.7%
(1) Inland Valley and Rancho Springs combined on July 1, 2002
(2) North Star Hospital and Residential Center are excluded in both
current and prior years.
SOURCE Universal Health Services, Inc.
Steve Filton, Chief Financial Officer, Universal Health Services, +1-610-768-3300 /Company News On-Call: http://www.prnewswire.com/gh/cnoc/comp/916225.html
http://www.uhsinc.com