UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2009 (July 28, 2009)

 

 

UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

DELAWARE		1-10765		23-2077891
(State or other jurisdiction of Incorporation or Organization)		(Commission File Number)		(I.R.S. Employer Identification No.)

 

UNIVERSAL CORPORATE CENTER 367 SOUTH GULPH ROAD KING OF PRUSSIA, PENNSYLVANIA		19406
(Address of principal executive office)		(Zip Code)

Registrant’s telephone number, including area code (610) 768-3300

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02

Results of Operations and Financial Condition

On July 28, 2009, Universal Health Services, Inc. issued the press release attached hereto as Exhibit 99.1.

 

Item 9.01

Financial Statements and Exhibits

(d) Exhibits. 99.1 Universal Health Services, Inc., press release, dated July 28, 2009.

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: July 29, 2009

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Exhibit Index

 

Exhibit No.		Exhibit
99.1		Universal Health Services, Inc., press release, dated July 28, 2009.

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

CONTACT:		SteveFilton Chief Financial Officer 610-768-3300		July  28, 2009

UNIVERSAL HEALTH SERVICES, INC. REPORTS

SIGNIFICANT INCREASES IN 2009 SECOND QUARTER AND SIX-MONTH

EARNINGS, RAISES FULL YEAR GUIDANCE

Consolidated Results of Operations - Three-month periods ended June 30, 2009 and 2008:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $80.9 million, or $1.64 per diluted share, during the second quarter of 2009 as compared to $54.2 million, or $1.06 per diluted share, during the comparable quarter of the prior year. Reported income from continuing operations attributable to UHS was $80.9 million, or $1.64 per diluted share, during the second quarter of 2009 as compared to $55.2 million, or $1.08 per diluted share, during the comparable quarter of the prior year.

As indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedules”), included in our income from continuing operations and net income during the three and six-month periods ended June 30, 2009, was a combined $9.8 million, or $.20 per diluted share, consisting of: (i) a favorable after-tax adjustment of $14.1 million, or $.29 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2009 based upon a reserve analysis, partially offset by; (ii) an unfavorable discrete tax item of $4.3 million, or $.09 per diluted share.

After adjusting the reported results for the second quarter of 2009 to neutralize the net favorable impact of the above-mentioned adjustments (there were no adjustments applicable to the second quarter of 2008), our adjusted income from continuing operations attributable to UHS during the second quarter of 2009 was $71.1 million, or an increase of 33% to $1.44 per diluted share, as compared to $55.2 million, or $1.08 per diluted share, during the comparable quarter of the prior year.

During the second quarter of 2009, adjusted net income attributable to UHS was $71.1 million, or an increase of 36% to $1.44 per diluted share, as compared to $54.2 million, or $1.06 per diluted share during the comparable quarter of the prior year.

Net revenues increased 3% to $1.30 billion during the second quarter of 2009 as compared to $1.26 billion during the second quarter of 2008.

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Consolidated Results of Operations - Six-month periods ended June 30, 2009 and 2008:

Reported net income attributable to UHS was $148.4 million, or $3.01 per diluted share, during the six-month period ended June 30, 2009 as compared to $115.9 million, or $2.26 per diluted share, during the comparable six-month period of the prior year. Reported income from continuing operations attributable to UHS was $148.4 million, or $3.01 per diluted share, during the six-month period ended June 30, 2009 as compared to $115.2 million, or $2.25 per diluted share, during the comparable six-month period of the prior year.

As indicated on the attached Supplemental Schedules, during the six-month period ended June 30, 2009, our adjusted income from continuing operations attributable to UHS was $138.6 million, or an increase of 25% to $2.81 per diluted share, as compared to $115.2 million, or $2.25 per diluted share, during the comparable six-month period of the prior year.

Adjusted net income attributable to UHS was $138.6 million, or an increase of 24% to $2.81 per diluted share, during the six-month period ended June 30, 2009, as compared to $115.9 million, or $2.26 per diluted share during the comparable six-month period of the prior year.

Net revenues increased 3% to $2.62 billion during the six-month period ended June 30, 2009 as compared to $2.54 billion during the comparable six-month period of the prior year.

Acute Care Services - Three-month periods ended June 30, 2009 and 2008:

At our acute care hospitals owned during both periods (“same facility basis”), inpatient admissions increased 1.5% while patient days decreased 0.8% during the second quarter of 2009, as compared to the second quarter of 2008. Net revenues at these facilities increased 2.9% during the second quarter of 2009 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission decreased 0.2% while net revenue per adjusted patient day increased 2.0% during the second quarter of 2009 as compared to the comparable quarter of the prior year. On a same facility basis, the operating margin (net revenues less salaries, wages and benefits, other operating expenses, supplies expense and provision for doubtful accounts) at our acute care hospitals increased to 16.8% during the second quarter of 2009 as compared to 14.7% during the second quarter of 2008.

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 $181 million and $143 million during the three-month periods ended June 30, 2009 and 2008, respectively.

Acute Care Services - Six-month periods ended June 30, 2009 and 2008:

During the six-month period ended June 30, 2009, on a same facility basis, inpatient admissions to our acute care facilities increased 0.1% while patient days decreased 1.5%, as compared to the comparable period of the prior year. Net revenues at our acute

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care facilities increased 1.9% during the six-month period ended June 30, 2009 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted admission increased 0.3% while net revenue per adjusted patient day increased 2.0% during the six-month period ended June 30, 2009 as compared to the comparable period of the prior year. On a same facility basis, the operating margin at our acute care hospitals increased to 17.2% during the six-month period ended June 30, 2009 as compared to 15.5% during the comparable period of the prior year.

Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $340 million and $296 million during the six-month periods ended June 30, 2009 and 2008, respectively.

Behavioral Health Care Services - Three-month periods ended June 30, 2009 and 2008:

At our behavioral health care facilities, on a same facility basis, inpatient admissions increased 1.5% and patient days increased 1.0% during the second quarter of 2009 as compared to the second quarter of 2008. Net revenues at these facilities increased 4.0% during the second quarter of 2009 as compared to the comparable quarter in the prior year. Net revenue per adjusted patient day at these facilities increased 3.5% during the second quarter of 2009 over the comparable prior year quarter. The operating margin at our behavioral health care facilities owned during both periods was 26.3% during the second quarter of 2009 as compared to 25.1% during the second quarter of 2008.

Behavioral Health Care Services - Six-month periods ended June 30, 2009 and 2008:

During the six-month period ended June 30, 2009, on a same facility basis, inpatient admissions to our behavioral health care facilities increased 1.3% while patient days decreased 0.2%, as compared to the comparable period of the prior year. Net revenues at our behavioral health care facilities increased 3.4% during the six-month period ended June 30, 2009 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted patient day increased 4.2% during the six-month period ended June 30, 2009 as compared to the comparable prior year period. On a same facility basis, the operating margin at our behavioral health facilities increased to 25.7% during the six-month period ended June 30, 2009 as compared to 24.4% during the comparable period of the prior year.

2009 Full Year Guidance Increased to $4.40 to $4.55 Per Diluted Share:

Based upon the operating trends and financial results experienced during the first six months of 2009, and subject to certain assumptions, provisions and adjustments, including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures, we are increasing our estimated range of earnings per diluted share from continuing operations for the year ended December 31, 2009 to $4.40 to $4.55 from the previously provided range of $4.00 to $4.15. This revised guidance range excludes the net favorable impact of $.20 per diluted share resulting from the above-mentioned items that were included in our results for the three and six-month periods ended June 30, 2009 (consisting of the favorable impact resulting from the reduction to our professional and general liability self-insurance reserves and the unfavorable impact resulting from the discrete tax item).

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Recent Acquisition:

On June 30, 2009, we completed the acquisition of Centennial Peaks Hospital, a 72-bed behavioral health facility located in Louisville, Colorado. Centennial Peaks will provide services to adolescent and adult patients and will compliment our existing services in the high growth Denver-Boulder corridor.

Conference Call Information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 29, 2009. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on July 29, 2009 and will continue through midnight on August 12, 2009. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 17867500. This call will also be available live over the internet at our web site at www.uhsinc.com. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents at www.streetevents.com.

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. 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, 2008 and in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended March 31, 2009), may cause the results to differ materially from those anticipated in the forward-looking statements. 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.

We believe that operating income, operating margin, adjusted income from continuing operations, adjusted income from continuing operations per diluted share, adjusted net income, adjusted net income per diluted share and earnings before interest, taxes,

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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 items that are nonrecurring or non-operational in nature including items such as, but not limited to, 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, 2008 and Report on Form 10-Q for the quarter ended March 31, 2009. 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.

(more)

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Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended June 30,							Six months ended June 30,
		2009			2008				2009			2008
Net revenues		$	1,303,640		$	1,262,577			$	2,616,059		$	2,540,553
Operating charges:
Salaries, wages and benefits			541,950			528,081				1,083,247			1,069,656
Other operating expenses			232,894			259,313				506,115			507,958
Supplies expense			176,411			174,264				350,378			353,503
Provision for doubtful accounts			120,670			120,646				239,648			240,443
Depreciation and amortization			51,085			47,336				102,219			94,079
Lease and rental expense			17,587			17,866				34,659			35,421
			1,140,597			1,147,506				2,316,266			2,301,060
Income from continuing operations before interest expense and income taxes			163,043			115,071				299,793			239,493
Interest expense, net			11,879			13,249				24,517			26,728
Income from continuing operations before income taxes			151,164			101,822				275,276			212,765
Provision for income taxes			57,187			35,205				99,265			72,816
Income from continuing operations			93,977			66,617				176,011			139,949
Income from continuing operations attributable to minority interests			13,084			11,427				27,577			24,706
Income from continuing operations attributable to UHS			80,893			55,190				148,434			115,243
(Loss) income from discontinued operations, net of income tax expense (a)			—			(950	)			—			660
Net income attributable to UHS		$	80,893		$	54,240			$	148,434		$	115,903
Basic earnings (loss) per share attributable to UHS (b)
From continuing operations		$	1.65		$	1.09			$	3.01		$	2.25
From discontinued operations			—			(0.02	)			—			0.02
Total basic earnings per share		$	1.65		$	1.07			$	3.01		$	2.27
Diluted earnings (loss) per share attributable to UHS (b)
From continuing operations		$	1.64		$	1.08			$	3.01		$	2.25
From discontinued operations			—			(0.02	)			—			0.01
Total diluted earnings per share		$	1.64		$	1.06			$	3.01		$	2.26

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Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended June 30,								Six months ended June 30,
		2009				2008				2009				2008
(a) Calculation of income from discontinued operations, net of income tax:
(Loss) income from discontinued operations, pre-tax			—			($	1,540	)			—			$	1,069
Income tax benefit (expense)			—				590				—				(409	)
(Loss) income from discontinued operations, net of taxes			—			($	950	)			—			$	660
(b) Earnings per share calculation:
Basic and diluted:
Income from continuing operations attributable to UHS		$	80,893			$	55,190			$	148,434			$	115,243
Less: Net income attributable to unvested restricted share grants			(381	)			(229	)			(695	)			(488	)
Income from continuing operations - basic and diluted			80,512				54,961				147,739				114,755
Income from discontinued operations			—				(950	)			—				660
Net income attributable to UHS - basic and diluted		$	80,512			$	54,011			$	147,739			$	115,415
Weighted average number of common shares - basic			48,850				50,629				49,028				50,946
Basic earnings (loss) per share attributable to UHS:
From continuing operations		$	1.65			$	1.09			$	3.01			$	2.25
From discontinued operations			—				(0.02	)			—				0.02
Total basic earnings per share		$	1.65			$	1.07			$	3.01			$	2.27
Weighted average number of common shares			48,850				50,629				49,028				50,946
Add: Other share equivalents			202				113				101				65
Weighted average number of common shares and equiv. - diluted			49,052				50,742				49,129				51,011
Diluted earnings (loss) per share attributable to UHS:
From continuing operations		$	1.64			$	1.08			$	3.01			$	2.25
From discontinued operations			—				(0.02	)			—				0.01
Total diluted earnings per share		$	1.64			$	1.06			$	3.01			$	2.26

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Universal Health Services, Inc.

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

For the three months ended June 30, 2009 and 2008

(in thousands, except per share amounts)

(unaudited)

 

		Three months ended June 30, 2009								Three months ended June 30, 2008
Net revenues		$	1,303,640				100.0	%		$	1,262,577				100.0	%
Operating charges:
Salaries, wages and benefits			541,950				41.6	%			528,081				41.8	%
Other operating expenses			232,894				17.9	%			259,313				20.5	%
Supplies expense			176,411				13.5	%			174,264				13.8	%
Provision for doubtful accounts			120,670				9.3	%			120,646				9.6	%
			1,071,925				82.2	%			1,082,304				85.7	%
Operating income/margin			231,715				17.8	%			180,273				14.3	%
Lease and rental expense			17,587								17,866
Income from continuing operations attributable to minority interests			13,084								11,427
Earnings before, depreciation and amortization, interest expense, and income taxes (“EBITDA”)			201,044								150,980
Depreciation and amortization			51,085								47,336
Interest expense, net			11,879								13,249
Income before income taxes			138,080								90,395
Provision for income taxes			57,187								35,205
Income from continuing operations attributable to UHS			80,893								55,190
Loss from discontinued operations, net of income taxes			—								(950	)
Net income attributable to UHS		$	80,893							$	54,240
		Three months ended June 30, 2009								Three months ended June 30, 2008
		Amount				Per Diluted Share				Amount				Per Diluted Share
Calculation of Adjusted Income from Continuing Operations Attributable to UHS
Income from continuing operations attributable to UHS		$	80,893			$	1.64			$	55,190			$	1.08
Plus/minus adjustments:
Reduction of reserve for professional and general liability self-insured claims, net of income taxes			(14,168	)			(0.29	)			—				—
Unfavorable discrete tax item			4,331				0.09
Subtotal after-tax adjustments to income from continuing operations attributable to UHS			(9,837	)			(0.20	)			—				—
Adjusted income from continuing operations attributable to UHS		$	71,056			$	1.44			$	55,190			$	1.08
Calculation of Adjusted Net Income Attributable to UHS
Net income attributable to UHS		$	80,893			$	1.64			$	54,240			$	1.06
After-tax adjustments to income from continuing operations attributable to UHS, as indicated above			(9,837	)			(0.20	)			—				—
Adjusted net income attributable to UHS		$	71,056			$	1.44			$	54,240			$	1.06

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Universal Health Services, Inc.

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

For the six months ended June 30, 2009 and 2008

(in thousands, except per share amounts)

(unaudited)

 

		Six months ended June 30, 2009								Six months ended June 30, 2008
Net revenues		$	2,616,059				100.0	%		$	2,540,553			100.0	%
Operating charges:
Salaries, wages and benefits			1,083,247				41.4	%			1,069,656			42.1	%
Other operating expenses			506,115				19.3	%			507,958			20.0	%
Supplies expense			350,378				13.4	%			353,503			13.9	%
Provision for doubtful accounts			239,648				9.2	%			240,443			9.5	%
			2,179,388				83.3	%			2,171,560			85.5	%
Operating income/margin			436,671				16.7	%			368,993			14.5	%
Lease and rental expense			34,659								35,421
Income from continuing operations attributable to minority interests			27,577								24,706
Earnings before, depreciation and amortization, interest expense, and income taxes (“EBITDA”)			374,435								308,866
Depreciation and amortization			102,219								94,079
Interest expense, net			24,517								26,728
Income before income taxes			247,699								188,059
Provision for income taxes			99,265								72,816
Income from continuing operations attributable to UHS			148,434								115,243
Income from discontinued operations, net of income taxes			—								660
Net income attributable to UHS		$	148,434							$	115,903
		Six months ended June 30, 2009								Six months ended June 30, 2008
		Amount				Per Diluted Share				Amount			Per Diluted Share
Calculation of Adjusted Income from Continuing Operations Attributable to UHS
Income from continuing operations attributable to UHS		$	148,434			$	3.01			$	115,243		$	2.25
Plus/minus adjustments:
Reduction of reserve for professional and general liability self-insured claims, net of income taxes			(14,168	)			(0.29	)			—			—
Unfavorable discrete tax item			4,331				0.09
Subtotal after-tax adjustments to income from continuing operations attributable to UHS			(9,837	)			(0.20	)			—			—
Adjusted income from continuing operations attributable to UHS		$	138,597			$	2.81			$	115,243		$	2.25
Calculation of Adjusted Net Income Attributable to UHS
Net income attributable to UHS		$	148,434			$	3.01			$	115,903		$	2.26
After-tax adjustments to income from continuing operations attributable to UHS, as indicated above			(9,837	)			(0.20	)			—			—
Adjusted net income attributable to UHS		$	138,597			$	2.81			$	115,903		$	2.26

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Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

(unaudited)

 

		June 30, 2009				December 31, 2008
Assets
Current assets:
Cash and cash equivalents		$	10,623			$	5,460
Accounts receivable, net			605,870				625,437
Supplies			78,885				76,043
Other current assets			31,182				26,375
Deferred income taxes			38,933				34,522
Current assets held for sale			21,580				21,580
Total current assets			787,073				789,417
Property and equipment			3,549,211				3,355,974
Less: accumulated depreciation			(1,345,692	)			(1,255,682	)
			2,203,519				2,100,292
Other assets:
Goodwill			733,887				732,937
Deferred charges			10,318				10,428
Other			102,079				109,388
		$	3,836,876			$	3,742,462
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt		$	8,730			$	8,708
Accounts payable and accrued liabilities			561,471				542,008
Federal and state taxes			16,098				10,409
Total current liabilities			586,299				561,125
Other noncurrent liabilities			389,572				407,652
Long-term debt			913,148				990,661
Deferred income taxes			19,806				12,439
UHS common stockholders’ equity			1,677,996				1,543,850
Minority interest			250,055				226,735
Total equity			1,928,051				1,770,585
		$	3,836,876			$	3,742,462

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Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

		Six months ended June 30,
		2009				2008
Cash Flows from Operating Activities:
Net income attributable to UHS		$	148,434			$	115,903
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization			102,219				95,379
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable			4,392				(74,863	)
Construction management and other receivable			21,003				(8,016	)
Accrued interest			106				811
Accrued and deferred income taxes			7,934				3,288
Other working capital accounts			(1,499	)			18,331
Other assets and deferred charges			3,844				15,821
Other			3,327				5,410
Minority interest in earnings of consolidated entities, net of distributions			23,320				13,307
Accrued insurance expense, net of commercial premiums paid			13,323				38,743
Payments made in settlement of self-insurance claims			(29,823	)			(25,648	)
Net cash provided by operating activities			296,580				198,466
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals			(183,248	)			(156,062	)
Acquisition of property and business			(9,006	)			—
Proceeds received from sale of assets			—				2,235
Settlement proceeds received related to prior year acquisitions, net of expenses			—				1,539
Investment in joint-venture			—				(2,095	)
Net cash used in investing activities			(192,254	)			(154,383	)
Cash Flows from Financing Activities:
Reduction of long-term debt			(77,356	)			(109,727	)
Additional borrowings			170				150,155
Repurchase of common shares			(15,437	)			(89,816	)
Dividends paid			(7,890	)			(8,096	)
Issuance of common stock			1,350				1,151
Capital contributions from minority member			—				2,107
Net cash used in financing activities			(99,163	)			(54,226	)
Increase (decrease) in cash and cash equivalents			5,163				(10,143	)
Cash and cash equivalents, beginning of period			5,460				16,354
Cash and cash equivalents, end of period		$	10,623			$	6,211
Supplemental Disclosures of Cash Flow Information:
Interest paid		$	28,723			$	29,335
Income taxes paid, net of refunds		$	90,942			$	70,269

---

Universal Health Services, Inc.

Supplemental Statistical Information

(un-audited)

Same Facility:

 

		% Change Quarter Ended 6/30/2009			% Change 6 months ended 6/30/2009
Acute Care Hospitals
Revenues		2.9	%		1.9	%
Adjusted Admissions		3.1	%		1.5	%
Adjusted Patient Days		0.9	%		-0.2	%
Revenue Per Adjusted Admission		-0.2	%		0.3	%
Revenue Per Adjusted Patient Day		2.0	%		2.0	%
Behavioral Health Hospitals
Revenues		4.0	%		3.4	%
Adjusted Admissions		1.0	%		0.7	%
Adjusted Patient Days		0.5	%		-0.7	%
Revenue Per Adjusted Admission		3.0	%		2.6	%
Revenue Per Adjusted Patient Day		3.5	%		4.2	%

UHS Consolidated

 

		Second Quarter Ended								Six months Ended
		6/30/2009				6/30/2008				6/30/2009				6/30/2008
Revenues		$	1,303,640			$	1,262,577			$	2,616,059			$	2,540,553
EBITDA (1)			178,244				150,980				351,635				308,866
EBITDA Margin (1)			13.7	%			12.0	%			13.4	%			12.2	%
Cash Flow From Operations			144,578				66,790				296,580				198,466
Days Sales Outstanding			42				51				41				50
Capital Expenditures			105,029				74,311				183,248				156,062
Debt											921,878				1,053,305
Shareholders Equity											1,677,996				1,544,474
Debt / Total Capitalization											35.5	%			40.5	%
Debt / EBITDA (2)											1.67				1.96
Debt / Cash From Operations (2)											2.06				2.71
Acute Care EBITDAR Margin (3)			16.8	%			14.7	%			17.2	%			15.5	%
Behavioral Health EBITDAR Margin (3)			25.8	%			24.3	%			25.0	%			23.7	%

 

(1)	Net of Minority Interest and before prior year self insurance reserve adjustment booked in 2009

(2)	Latest 4 quarters

(3)	Before Corporate overhead allocation, minority interest and prior year self insurance reserve adjustment booked in 2009

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UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE THREE MONTHS ENDED

JUNE 30, 2009

AS REPORTED:

 

		ACUTE (1)											BEHAVIORAL HEALTH
		06/30/09				06/30/08				% change			06/30/09				06/30/08				% change
Hospitals owned and leased			21				21			0.0	%			83				83			0.0	%
Average licensed beds			5,465				5,453			0.2	%			7,857				7,668			2.5	%
Patient days			289,661				291,892			-0.8	%			529,536				530,769			-0.2	%
Average daily census			3,183.1				3,207.6			-0.8	%			5,819.1				5,832.6			-0.2	%
Occupancy-licensed beds			58.2	%			58.8	%		-1.0	%			74.1	%			76.1	%		-2.6	%
Admissions			65,946				64,991			1.5	%			34,059				32,560			4.6	%
Length of stay			4.4				4.5			-2.2	%			15.5				16.3			-4.6	%
Inpatient revenue		$	2,469,774			$	2,300,755			7.3	%		$	524,246			$	489,317			7.1	%
Outpatient revenue			1,047,095				924,984			13.2	%			72,513				65,335			11.0	%
Total patient revenue			3,516,869				3,225,739			9.0	%			596,759				554,652			7.6	%
Other revenue			19,102				19,541			-2.2	%			8,342				9,893			-15.7	%
Gross hospital revenue			3,535,971				3,245,280			9.0	%			605,101				564,545			7.2	%
Total deductions			2,583,393				2,319,649			11.4	%			272,512				247,229			10.2	%
Net hospital revenue		$	952,578			$	925,631			2.9	%		$	332,589			$	317,316			4.8	%
SAME FACILITY:
		ACUTE (1)											BEHAVIORAL HEALTH (2)
		06/30/09				06/30/08				% change			06/30/09				06/30/08				% change
Hospitals owned and leased			21				21			0.0	%			79				79			0.0	%
Average licensed beds			5,465				5,453			0.2	%			7,611				7,477			1.8	%
Patient days			289,644				291,883			-0.8	%			521,721				516,562			1.0	%
Average daily census			3,182.9				3,207.5			-0.8	%			5,733.2				5,676.5			1.0	%
Occupancy-licensed beds			58.2	%			58.8	%		-1.0	%			75.3	%			75.9	%		-0.8	%
Admissions			65,946				64,991			1.5	%			32,983				32,502			1.5	%
Length of stay			4.4				4.5			-2.2	%			15.8				15.9			-0.5	%

 

(1)	Acute care hospitals located in New Orleans and Central Montgomery Medical Center are excluded in current and prior years.

(2)	Centennial Peaks, Central Florida, Coastal Behavioral, Summit Ridge Hospital, Broad Horizons, Highlander RTC, Midwest Youth, Vista Group Homes and Shenandoah Valley are excluded in current and prior years.

---

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE SIX MONTHS ENDED

JUNE 30, 2009

AS REPORTED:

 

		ACUTE (1)											BEHAVIORAL HEALTH
		06/30/09				06/30/08				% change			06/30/09				06/30/08				% change
Hospitals owned and leased			21				21			0.0	%			83				83			0.0	%
Average licensed beds			5,465				5,453			0.2	%			7,826				7,632			2.5	%
Patient days			596,950				606,142			-1.5	%			1,042,470				1,060,724			-1.7	%
Average daily census			3,279.9				3,330.5			-1.5	%			5,727.9				5,828.2			-1.7	%
Occupancy-licensed beds			60.0	%			61.1	%		-1.7	%			73.2	%			76.4	%		-4.2	%
Admissions			134,144				133,947			0.1	%			68,020				65,442			3.9	%
Length of stay			4.5				4.5			-1.7	%			15.3				16.2			-5.4	%
Inpatient revenue		$	5,049,913			$	4,740,040			6.5	%		$	1,027,927			$	978,050			5.1	%
Outpatient revenue			2,042,794				1,830,400			11.6	%			140,641				131,923			6.6	%
Total patient revenue			7,092,707				6,570,440			7.9	%			1,168,568				1,109,973			5.3	%
Other revenue			36,777				37,714			-2.5	%			16,251				18,051			-10.0	%
Gross hospital revenue			7,129,484				6,608,154			7.9	%			1,184,819				1,128,024			5.0	%
Total deductions			5,217,192				4,731,254			10.3	%			530,077				497,850			6.5	%
Net hospital revenue		$	1,912,292			$	1,876,900			1.9	%		$	654,742			$	630,174			3.9	%
SAME FACILITY:
		ACUTE (1)											BEHAVIORAL HEALTH (2)
		06/30/09				06/30/08				% change			06/30/09				06/30/08				% change
Hospitals owned and leased			21				21			0.0	%			79				79			0.0	%
Average licensed beds			5,465				5,453			0.2	%			7,596				7,441			2.1	%
Patient days			596,920				606,133			-1.5	%			1,028,876				1,030,793			-0.2	%
Average daily census			3,297.9				3,330.4			-1.0	%			5,684.4				5,663.7			0.4	%
Occupancy-licensed beds			60.3	%			61.1	%		-1.2	%			74.8	%			76.1	%		-1.7	%
Admissions			134,144				133,947			0.1	%			66,136				65,287			1.3	%
Length of stay			4.4				4.5			-1.7	%			15.6				15.8			-1.5	%

 

(1)	Acute care hospitals located in New Orleans and Central Montgomery Medical Center are excluded in current and prior years.

(2)	Centennial Peaks, Central Florida, Coastal Behavioral, Summit Ridge Hospital, Broad Horizons, Highlander RTC, Midwest Youth, Vista Group Homes and Shenandoah Valley are excluded in current and prior years.