Universal Health Services, Inc. Reports 25% First Quarter EPS Growth
Patient admissions to the Company's hospitals owned in both the three months ended March 31, 2002 and March 31, 2001 increased 5.6% in the Company's acute care hospitals and 4.6% in the Company's behavioral health hospitals. For the Company's acute care hospitals owned in both periods, revenues increased 11.4% and revenue per adjusted patient day increased 5.4%. For the Company's behavioral health hospitals owned in both periods, revenues increased 4.0% and revenue per adjusted patient day remained relatively unchanged.
During the quarter, the Company commenced construction of a new 176-bed hospital in Las Vegas. The Company also commenced construction of a 90-bed addition of its Northwest Texas Hospital in Amarillo, Texas, and a 40-bed addition at its Auburn Regional Medical Center in Auburn, Washington. The Company expects to complete construction of the new 371-bed George Washington University Hospital in June and commence operations in late August. The Company is reviewing other investment opportunities and anticipates capital expenditures will be approximately $225 million in 2002.
Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and 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.
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)
Three months
ended March 31,
2002 2001
Net revenues $804,371 $676,949
Operating charges:
Salaries, wages and benefits 319,707 268,282
Other operating expenses 191,896 150,906
Supplies expense 103,508 89,368
Provision for doubtful accounts 57,894 55,227
Depreciation and amortization 29,408 29,795
Lease and rental expense 15,190 12,640
Interest expense, net 8,964 8,456
726,567 614,674
Income before minority interests,
effect of foreign
exchange and derivative
transactions and income taxes 77,804 62,275
Minority interests in earnings
of consolidated entities 5,873 3,925
(Gains) Losses on foreign exchange
and derivative transactions (234) 1,427
Income before income taxes 72,165 56,923
Provision for income taxes 26,492 20,752
Net income $45,673 $36,171
Earnings per common share - basic $0.76 $0.60
Earnings per common share - diluted $0.71 $0.57
Weighted average number of common
shares - basic 59,862 59,828
Weighted average number of common
share equivalents 7,186 7,320
Weighted average number of common
shares and equiv. - diluted 67,048 67,148
EARNINGS PER SHARE CALCULATION
Net income $45,673 $36,171
Add: Debenture interest, net of taxes 2,092 1,970
Adjusted net income $47,765 $38,141
Weighted average number of common
shares - basic 59,862 59,828
Add: Shares for conversion of
convertible debentures 6,578 6,578
Other share equivalents 608 742
Weighted average number of common
shares and equiv. - diluted 67,048 67,148
Earnings per common share - diluted $0.71 $0.57
Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2002 2001
Assets:
Cash and cash equivalents $16,382 $22,848
Accounts receivable, net 481,931 418,083
Other current assets 119,812 107,331
Property, plant and equipment, net 1,098,922 1,031,205
Other assets 477,330 535,117
$2,194,377 $2,114,584
Liabilities and Stockholders' Equity:
Current portion of long-term debt $2,751 $2,436
Other current liabilities 369,312 320,280
Other noncurrent liabilities 110,961 110,385
Minority interest 127,194 125,914
Long-term debt 703,291 718,830
Deferred income taxes 27,326 28,839
Stockholders' equity 853,542 807,900
$2,194,377 $2,114,584
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
MARCH 31, 2002
AS REPORTED:
For the three months ended
Domestic Acute Behavioral Health
03/31/02 03/31/01 % 03/31/02 03/31/01 %
Hospitals owned
and leased 26 24 8.3% 37 37 0.0%
Average
licensed beds 5,846 5,396 8.3% 3,749 3,699 1.4%
Patient days 323,304 287,297 12.5% 248,968 233,015 6.8%
Average daily
census 3,592.3 3,192.2 12.5% 2,766.3 2,589.1 6.8%
Occupancy-
licensed beds 61.4% 59.2% 3.9% 73.8% 70.0% 5.4%
Admissions 66,860 60,115 11.2% 21,251 19,748 7.6%
Length of stay 4.8 4.8 1.2% 11.7 11.8 -0.7%
Inpatient
revenue $1,286,326 $1,018,353 26.3% $242,379 $227,863 6.4%
Outpatient
revenue 424,543 342,026 24.1% 38,300 36,024 6.3%
Total patient
revenue 1,710,869 1,360,379 25.8% 280,679 263,887 6.4%
Other revenue 15,216 13,432 13.3% 9,742 10,006 -2.6%
Gross hospital
revenue 1,726,085 1,373,811 25.6% 290,421 273,893 6.0%
Total
deductions 1,102,157 845,234 30.4% 148,300 141,315 4.9%
Net hospital
revenue $623,928 $528,577 18.0% $142,121 $132,578 7.2%
SAME STORE:
For the three months ended
Domestic Acute (1) Behavioral Health (2)
03/31/02 03/31/01 % 03/31/02 03/31/01 %
Hospitals owned and
leased 24 24 0.0% 37 37 0.0%
Average licensed
beds 5,547 5,364 3.4% 3,635 3,621 0.4%
Patient days 306,747 286,389 7.1% 240,966 231,381 4.1%
Average daily
census 3,408.3 3,182.1 7.1% 2,677.4 2,570.9 4.1%
Occupancy-licensed
beds 61.4% 59.3% 3.6% 73.7% 71.0% 3.7%
Admissions 63,159 59,790 5.6% 20,548 19,648 4.6%
Length of stay 4.9 4.8 1.4% 11.7 11.8 -0.4%
(1) Central Montgomery and Lancaster are excluded in both current and
prior years.
Rancho Springs is included in the current and prior year totals from
February 1st through year to date.
(2) Westwood Lodge, Pembroke, SanJuan Capistrano are included in the
current and prior year totals from February 1st through year to date.
Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
% Change
Quarter Ended
Same Store Basis 03/31/2002
Domestic Acute Care Hospitals
Revenues 11.4%
Adjusted Admissions 4.3%
Adjusted Patient Days 5.7%
Revenue Per Adjusted Admission 6.9%
Revenue Per Adjusted Patient Day 5.4%
Behavioral Health Hospitals
Revenues 4.0%
Adjusted Admissions 4.6%
Adjusted Patient Days 4.2%
Revenue Per Adjusted Admission -0.6%
Revenue Per Adjusted Patient Day -0.2%
UHS Consolidated First Quarter Ended
03/31/2002 03/31/2001
Revenues $804,371 $676,949
EBITDA (1) $110,303 $96,601
EBITDA Margin (1) 13.7% 14.3%
Cash Flow From Operations $61,466 $68,654
Days Sales Outstanding 54 57
Capital Expenditures $40,711 $30,554
Debt (net of cash) $689,660 $687,954
Shareholders Equity $853,542 $745,669
Debt / Total Capitalization 44.7% 48.0%
Debt / EBITDA (2) 1.84 2.19
Debt / Cash From Operations (2) 2.26 3.39
Domestic Acute Care EBITDAR Margin (3) 17.4% 19.6%
Behavioral Health EBITDAR Margin (3) 20.0% 19.8%
(1) Net of Minority Interest
(2) Latest 4 quarters
(3) Before Corporate overhead allocation and minority interest
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SOURCE Universal Health Services, Inc.
CONTACT: Kirk E. Gorman, Chief Financial Officer of Universal Health
Services, +1-610-768-3300
/Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/916225.html
URL: http://www.uhsinc.com
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