Universal Health Services, Inc. Updates Third Quarter Results Reflecting Changes Due to the Deferral of FASB Statement 150
11/10/2003
KING OF PRUSSIA, Pa., Nov. 10 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) today released updated financial results for the three- and nine-month periods ended September 30, 2003 solely due to the Financial Accounting Standard Board's ("FASB") October 29, 2003 announcement that certain provisions of Statement of Accounting Standards No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity" ("FASB 150"), related to the accounting for minority interest of consolidated subsidiaries with finite lives, will be indefinitely deferred. In the Company's October 20, 2003 press release announcing earnings for the three- and nine-month periods ended September 30, 2003, the Company had recorded an after-tax charge of $1,699,000 or $.03 per diluted share, for the cumulative effect of an accounting change related to this provision of FASB 150.
Due to the revised accounting treatment, the Company has revised its earnings for the three- and nine-month periods ended September 30, 2003 (previously reported on October 20, 2003) to eliminate this $1,699,000 after- tax charge. Accordingly, the Company is now reporting net income and earning per diluted share of $49.1 million and $.79, respectively, for the three-month period ended September 30, 2003 and $152.8 million and $2.45, respectively, for the nine-month period ended September 30, 2003. Included in the net income and earnings per diluted share for the three- and nine-month periods ended September 30, 2003 were after-tax (and after minority interest expense) gains on sales of assets and businesses of $4.4 million or $.07 per diluted share.
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.
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 Nine months
ended September 30, ended September 30,
2003 2002 2003 2002
Net revenues $896,332 $813,104 $2,694,094 $2,423,420
Operating charges:
Salaries, wages and
benefits 362,440 323,331 1,075,670 964,633
Other operating expenses 213,424 196,007 628,950 586,199
Supplies expense 119,897 106,382 362,190 313,747
Provision for doubtful
accounts 62,288 62,590 189,410 173,329
Depreciation and
amortization 35,799 30,136 105,849 90,444
Lease and rental expense 15,994 15,609 47,676 46,089
Interest expense, net 8,615 8,636 27,839 25,768
818,457 742,691 2,437,584 2,200,209
Income before gains on sales
of assets and businesses,
minority interests, and
income taxes 77,875 70,413 256,510 223,211
Gains on sales of assets and
businesses (7,837) 0 (7,837) 0
Minority interests in earnings
of consolidated entities 7,476 4,924 21,036 15,485
Income before income taxes 78,236 65,489 243,311 207,726
Provision for income taxes 29,175 24,038 90,510 76,255
Net income $49,061 $41,451 $152,801 $131,471
Earnings per common share -
basic $0.86 $0.69 $2.65 $2.20
Earnings per common share -
diluted $0.79 $0.65 $2.45 $2.05
EARNINGS PER SHARE CALCULATION
Net income $49,061 $41,451 $152,801 $131,471
Add: Debenture interest, net
of taxes 2,222 2,134 6,577 6,317
Adjusted net income $51,283 $43,585 $159,378 $137,788
Weighted average number of
common shares - basic 57,354 59,883 57,762 59,893
Add: Shares for conversion of
convertible debentures 6,577 6,577 6,577 6,577
Other share
equivalents 909 715 787 689
Weighted average number of
common shares and equiv. -
diluted 64,840 67,175 65,126 67,159
Earnings per common share -
diluted $0.79 $0.65 $2.45 $2.05
Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Unaudited
September 30, December 31,
2003 2002
Assets:
Cash and cash equivalents $28,261 $17,750
Accounts receivable, net 482,818 474,763
Other current assets 88,756 114,063
Total Current Assets 599,835 606,576
Property, plant and equipment, net 1,282,259 1,173,195
Other assets 553,754 549,366
Total Assets $2,435,848 $2,329,137
Liabilities and Stockholders'
Equity:
Current portion of long-term debt $11,225 $8,253
Other current liabilities 381,630 362,160
Total Current Liabilities 392,855 370,413
Other noncurrent liabilities 211,484 206,238
Minority interest 158,858 140,247
Long-term debt 632,526 680,514
Deferred income taxes 15,586 14,266
Total Liabilities 1,411,309 1,411,678
Stockholders' equity 1,024,539 917,459
Total Liabilities and
Stockholders' Equity $2,435,848 $2,329,137
SOURCE Universal Health Services, Inc.
-0- 11/10/2003
/CONTACT: Steve Filton, Chief Financial Officer, Universal Health
Services, +1-610-768-3300/
/Company News On-Call: http://www.prnewswire.com/comp/916225.html/
/Web site: http://www.uhsinc.com /
(UHS UHT)
CO: Universal Health Services, Inc.
ST: Pennsylvania
IN: HEA FIN
SU: ERN
PD
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1958 11/10/2003 17:21 EST http://www.prnewswire.com