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 27, 2016 (July 26, 2016)

 

 

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))

 

 

 

 

---

Item 2.02 Results of Operations and Financial Condition

On July 26, 2016, 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 26, 2016.

---

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 27, 2016

---

Exhibit Index

 

Exhibit No.		Exhibit
99.1		Universal Health Services, Inc., press release, dated July 26, 2016.

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

CONTACT:		Steve Filton
		Chief Financial Officer		July 26, 2016
		610-768-3300

UNIVERSAL HEALTH SERVICES, INC. REPORTS

2016 SECOND QUARTER FINANCIAL RESULTS

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended June 30, 2016 and 2015:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $185.6 million, or $1.89 per diluted share, during the second quarter of 2016 as compared to $182.2 million, or $1.80 per diluted share, during the comparable quarter of 2015. Net revenues increased 6.8% to $2.43 billion during the second quarter of 2016 as compared to $2.28 billion during the second quarter of 2015.

For the three-month period ended June 30, 2016, our adjusted net income attributable to UHS per diluted share, as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information (“Supplemental Schedule”), increased to $1.94 per diluted share, as compared to $1.85 per diluted share during the second quarter of 2015. As reflected on the Supplemental Schedule, included in our reported results during each of the second quarters of 2016 and 2015, are net unfavorable after-tax impacts of $.05 per diluted share related to the incentive income and depreciation and amortization expense recorded in connection with the implementation of electronic health records (“EHR”) applications at our acute care hospitals.

Consolidated Results of Operations, As Reported and As Adjusted – Six-month periods ended June 30, 2016 and 2015:

Reported net income attributable to UHS was $376.3 million, or $3.81 per diluted share, during the first six months of 2016 as compared to $356.5 million, or $3.54 per diluted share, during the comparable period of 2015. Net revenues increased 8.4% to $4.88 billion during the first six months of 2016 as compared to $4.50 billion during the comparable period of 2015.

For the six-month period ended June 30, 2016, our adjusted net income attributable to UHS per diluted share, as calculated on the Supplemental Schedule, increased to $3.92 per diluted share, as compared to $3.63 per diluted share during the comparable period of 2015. As reflected on the Supplemental Schedule, included in our reported results during the six-month periods ended June 30, 2016 and 2015, are net unfavorable after-tax impacts of $.11 per diluted share and $.09 per diluted share, respectively, related to the incentive income and depreciation and amortization expense recorded in connection with the implementation of EHR applications at our acute care hospitals.

Acute Care Services – Three and six-month periods ended June 30, 2016 and 2015:

During the second quarter of 2016, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased 3.9% and adjusted patient days increased 2.8%, as compared to the second quarter of 2015. Net revenues from our acute care services increased 7.4% during the second quarter of 2016 as compared to the second quarter of the prior year. At these facilities, net revenue per adjusted admission increased 1.3% while net revenue per adjusted patient day increased 2.4% during the second quarter of 2016 as compared to the comparable quarter of 2015. On a same facility basis, the operating margin generated from our acute care services was 17.7% during the second quarter of 2016 as compared to 19.1% during the second quarter of 2015. We define operating margin as net revenues less salaries, wages and benefits, other operating expenses and supplies expense, divided by net revenues (excluding the impact of EHR and other items, if applicable, as indicated on the Supplemental Schedules).

---

During the first six months of 2016, at our acute care hospitals on a same facility basis, adjusted admissions increased 5.8% and adjusted patient days increased 3.1%, as compared to the first six months of 2015. Net revenues from our acute care services increased 9.7% during the first six months of 2016 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted admission increased 2.2% while net revenue per adjusted patient day increased 4.8% during the first six months of 2016 as compared to the comparable period of 2015. On a same facility basis, the operating margin generated from our acute care services was 19.4% during the first six months of 2016 as compared to 19.8% during the comparable period of 2015.

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 gross charges, amounting to approximately $339 million and $263 million during the three-month periods ended June 30, 2016 and 2015, respectively, and approximately $684 million and $550 million during the six-month periods ended June 30, 2016 and 2015, respectively. The provision for doubtful accounts at our acute care hospitals amounted to approximately $179 million and $149 million during the three-month periods ended June 30, 2016 and 2015, respectively, and approximately $319 million and $274 million during the six-month periods ended June 30, 2016 and 2015, respectively. Our acute care hospitals experienced an increase in the aggregate of charity care, uninsured discounts and provision for doubtful accounts, as a percentage of gross charges, during the three and six-month period ended June 30, 2016, as compared to the comparable periods of 2015.

Behavioral Health Care Services – Three and six-month periods ended June 30, 2016 and 2015:

During the second quarter of 2016, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased 0.3% while adjusted patient days increased 0.2% as compared to the second quarter of 2015. At these facilities, net revenue per adjusted admission increased 2.4% while net revenue per adjusted patient day increased 1.9% during the second quarter of 2016 as compared to the comparable quarter in 2015. On a same facility basis, our behavioral health services’ net revenues increased 2.0% during the second quarter of 2016, as compared to the second quarter of 2015, and the operating margins were 28.1% and 28.7% during the second quarters of 2016 and 2015, respectively.

During the first six months of 2016, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 0.5% while adjusted patient days increased 0.7% as compared to the comparable period of 2015. At these facilities, net revenue per adjusted admission increased 2.1% while net revenue per adjusted patient day increased 1.9% during the first six months of 2016 as compared to the comparable period in 2015. On a same facility basis, our behavioral health services’ net revenues increased 2.7% during the first six months of 2016, as compared to the comparable period of 2015, and the operating margins were 28.0% and 28.6% during the first six months of 2016 and 2015, respectively.

---

Share Repurchase Program:

In February of 2016, our Board of Directors authorized a $400 million increase to our stock repurchase program, which increased the aggregate authorization to $800 million from the previous $400 million authorization approved during the third quarter of 2014. Pursuant to this program, we may purchase shares of our Class B Common Stock, from time to time as conditions allow, on the open market or in negotiated private transactions.

In conjunction with this program, during the second quarter of 2016, we repurchased 235,352 shares at an aggregate cost of $29.1 million (approximately $123 per share). During the first six months of 2016, we repurchased approximately 1.6 million shares at an aggregate cost of $181.5 million (approximately $115 per share). Since inception of the program through June 30, 2016, we repurchased approximately 3.5 million shares at an aggregate cost of approximately $405.7 million (approximately $117 per share).

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 27, 2016. The dial-in number is 1-877-648-7971.

A live broadcast of the conference call will be available on our website at www.uhsinc.com. 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:

Universal Health Services, Inc. (“UHS”) is one of the nation’s largest hospital companies operating through its subsidiaries acute care hospitals, behavioral health facilities and ambulatory centers located throughout the United States, the United Kingdom, Puerto Rico and the U.S. Virgin Islands. 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, 2015 and in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended March 31, 2016), 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 net income attributable to UHS, adjusted net income attributable to UHS per diluted share and earnings before interest, taxes, 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 material items related to the implementation of EHR applications at our acute care hospitals and other items that are nonrecurring or non-operational in nature including, but not limited to, costs related to extinguishment of debt, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits, impairments of long-lived assets 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, 2015 and our Report on Form 10-Q for the quarterly period ended March 31, 2016. 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.

Our acute care hospitals are eligible for Medicare and Medicaid EHR incentive payments upon implementation of the EHR application, once they have demonstrated meaningful use of certified EHR technology for the applicable stage or have completed attestations to their adoption or implementation of certified EHR technology. However, there may be timing differences in the recognition of the incentive income and expenses recorded in connection with the implementation of the EHR application which may cause material period-to-period changes in our future results of operations. Pursuant to regulations, hospitals that did not qualify as a meaningful user of EHR by 2015 are subject to a reduced market basket update to the inpatient prospective payment system standardized amount in 2015 and each subsequent fiscal year. We believe that all of our acute care hospitals have met the applicable meaningful use criteria and therefore are not subject to a reduced market basked update to the inpatient prospective payment standardized amount. Under the HITECH Act, hospitals must continue to meet the applicable meaningful use criteria in each fiscal year or they will be subject to a market basket update reduction in a subsequent fiscal year.

(more)

---

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,
		2016				2015				2016				2015
Net revenues before provision for doubtful accounts		$	2,638,848			$	2,452,680			$	5,258,441			$	4,832,781
Less: Provision for doubtful accounts			207,993				177,476				377,788				332,224
Net revenues			2,430,855				2,275,204				4,880,653				4,500,557
Operating charges:
Salaries, wages and benefits			1,130,933				1,044,064				2,279,072				2,075,767
Other operating expenses			585,995				535,711				1,147,579				1,041,677
Supplies expense			254,422				240,979				509,672				479,720
Depreciation and amortization			101,411				97,257				205,460				196,255
Lease and rental expense			24,806				23,196				49,258				46,087
Electronic health records incentive income			0				(1,395	)			0				(1,395	)
			2,097,567				1,939,812				4,191,041				3,838,111
Income from operations			333,288				335,392				689,612				662,446
Interest expense, net			30,442				27,684				60,042				57,721
Income before income taxes			302,846				307,708				629,570				604,725
Provision for income taxes			107,397				106,304				218,402				208,998
Net income			195,449				201,404				411,168				395,727
Less: Income attributable to noncontrolling interests			9,872				19,211				34,832				39,235
Net income attributable to UHS		$	185,577			$	182,193			$	376,336			$	356,492
Basic earnings per share attributable to UHS (a)		$	1.91			$	1.84			$	3.86			$	3.60
Diluted earnings per share attributable to UHS (a)		$	1.89			$	1.80			$	3.81			$	3.54

---

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,
		2016				2015				2016				2015
(a) Earnings per share calculation:
Basic and diluted:
Net income attributable to UHS		$	185,577			$	182,193			$	376,336			$	356,492
Less: Net income attributable to unvested restricted share grants			(84	)			(71	)			(173	)			(139	)
Net income attributable to UHS—basic and diluted		$	185,493			$	182,122			$	376,163			$	356,353
Weighted average number of common shares—basic			97,109				99,004				97,358				98,957
Basic earnings per share attributable to UHS:		$	1.91			$	1.84			$	3.86			$	3.60
Weighted average number of common shares			97,109				99,004				97,358				98,957
Add: Other share equivalents			1,280				1,923				1,284				1,830
Weighted average number of common shares and equiv.—diluted			98,389				100,927				98,642				100,787
Diluted earnings per share attributable to UHS:		$	1.89			$	1.80			$	3.81			$	3.54

---

Universal Health Services, Inc.

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

For the three months ended June 30, 2016 and 2015

(in thousands, except per share amounts)

(unaudited)

Calculation of “EBITDA”

 

		Three months ended June 30, 2016								Three months ended June 30, 2015
Net revenues before provision for doubtful accounts		$	2,638,848							$	2,452,680
Less: Provision for doubtful accounts			207,993								177,476
Net revenues			2,430,855				100.0	%			2,275,204				100.0	%
Operating charges:
Salaries, wages and benefits			1,130,933				46.5	%			1,044,064				45.9	%
Other operating expenses			585,995				24.1	%			535,711				23.5	%
Supplies expense			254,422				10.5	%			240,979				10.6	%
EHR incentive income			0				0.0	%			(1,395	)			-0.1	%
			1,971,350				81.1	%			1,819,359				80.0	%
Operating income/margin (“EBITDAR”)			459,505				18.9	%			455,845				20.0	%
Lease and rental expense			24,806								23,196
Income attributable to noncontrolling interests			9,872								19,211
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			424,827				17.5	%			413,438				18.2	%
Depreciation and amortization			101,411								97,257
Interest expense, net			30,442								27,684
Income before income taxes			292,974								288,497
Provision for income taxes			107,397								106,304
Net income attributable to UHS		$	185,577							$	182,193

Calculation of Adjusted Net Income Attributable to UHS

 

		Three months ended June 30, 2016								Three months ended June 30, 2015
		Amount				Per Diluted Share				Amount				Per Diluted Share
Calculation of Adjusted Net Income Attributable to UHS
Net income attributable to UHS		$	185,577			$	1.89			$	182,193			$	1.80
Plus/minus impact of EHR implementation:
EHR-related incentive income, pre-tax			—								(1,395	)
EHR-related depreciation & amortization, pre-tax			9,187								9,306
EHR-related minority interest in earnings of consolidated entities, pre-tax			(455	)							(963	)
Income tax provision on EHR-related items			(3,255	)							(2,590	)
After-tax impact of EHR-related items			5,477				0.05				4,358				0.05
Adjusted net income attributable to UHS		$	191,054			$	1.94			$	186,551			$	1.85

---

Universal Health Services, Inc.

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

For the six months ended June 30, 2016 and 2015

(in thousands, except per share amounts)

(unaudited)

Calculation of “EBITDA”

 

		Six months ended June 30, 2016								Six months ended June 30, 2015
Net revenues before provision for doubtful accounts		$	5,258,441							$	4,832,781
Less: Provision for doubtful accounts			377,788								332,224
Net revenues			4,880,653				100.0	%			4,500,557				100.0	%
Operating charges:
Salaries, wages and benefits			2,279,072				46.7	%			2,075,767				46.1	%
Other operating expenses			1,147,579				23.5	%			1,041,677				23.1	%
Supplies expense			509,672				10.4	%			479,720				10.7	%
EHR incentive income			0				0.0	%			(1,395	)			0.0	%
			3,936,323				80.7	%			3,595,769				79.9	%
Operating income/margin (“EBITDAR”)			944,330				19.3	%			904,788				20.1	%
Lease and rental expense			49,258								46,087
Income attributable to noncontrolling interests			34,832								39,235
Earnings before depreciation and amortization, interest expense, and income taxes (“EBITDA”)			860,240				17.6	%			819,466				18.2	%
Depreciation and amortization			205,460								196,255
Interest expense, net			60,042								57,721
Income before income taxes			594,738								565,490
Provision for income taxes			218,402								208,998
Net income attributable to UHS		$	376,336							$	356,492

Calculation of Adjusted Net Income Attributable to UHS

 

		Six months ended								Six months ended
		June 30, 2016								June 30, 2015
		Amount				Per Diluted Share				Amount				Per Diluted Share
Calculation of Adjusted Net Income Attributable to UHS
Net income attributable to UHS		$	376,336			$	3.81			$	356,492			$	3.54
Plus/minus impact of EHR implementation:
EHR-related incentive income, pre-tax			—								(1,395	)
EHR-related depreciation & amortization, pre-tax			18,493								18,612
EHR-related minority interest in earnings of consolidated entities, pre-tax			(1,417	)							(1,927	)
Income tax provision on EHR-related items			(6,365	)							(5,699	)
After-tax impact of EHR-related items			10,711				0.11				9,591				0.09
Adjusted net income attributable to UHS		$	387,047			$	3.92			$	366,083			$	3.63

---

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

 

		Three months ended June 30,								Six months ended June 30,
		2016				2015				2016				2015
Net income		$	195,449			$	201,404			$	411,168			$	395,727
Other comprehensive income (loss):
Unrealized derivative gains (loss) on cash flow hedges			(3,769	)			806				(18,068	)			4,938
Amortization of terminated hedge			(83	)			(84	)			(167	)			(168	)
Unrealized loss on marketable security			(621	)			0				(621	)			0
Foreign currency translation adjustment			(4,163	)			2,626				1,823				2,208
Other comprehensive income (loss) before tax			(8,636	)			3,348				(17,033	)			6,978
Income tax expense related to items of other comprehensive income			(1,667	)			715				(7,027	)			2,212
Total other comprehensive income (loss), net of tax			(6,969	)			2,633				(10,006	)			4,766
Comprehensive income			188,480				204,037				401,162				400,493
Less: Comprehensive income attributable to noncontrolling interests			9,872				19,211				34,832				39,235
Comprehensive income attributable to UHS		$	178,608			$	184,826			$	366,330			$	361,258

---

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

		June 30,				December 31,
		2016				2015
Assets
Current assets:
Cash and cash equivalents		$	56,273			$	61,228
Accounts receivable, net			1,344,916				1,302,429
Supplies			117,710				116,037
Deferred income taxes			2,849				135,120
Other current assets			85,005				103,490
Total current assets			1,606,753				1,718,304
Property and equipment			6,722,246				6,530,569
Less: accumulated depreciation			(2,819,773	)			(2,694,591	)
			3,902,473				3,835,978
Other assets:
Goodwill			3,585,892				3,596,114
Deferred charges			15,319				16,688
Other			430,493				448,360
		$	9,540,930			$	9,615,444
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt		$	94,802			$	62,722
Accounts payable and accrued liabilities			1,169,241				1,033,697
Federal and state taxes			3,991				3,987
Total current liabilities			1,268,034				1,100,406
Other noncurrent liabilities			306,561				278,834
Long-term debt			3,499,375				3,368,634
Deferred income taxes			90,251				315,900
Redeemable noncontrolling interest			8,782				242,509
UHS common stockholders’ equity			4,302,978				4,249,647
Noncontrolling interest			64,949				59,514
Total equity			4,367,927				4,309,161
		$	9,540,930			$	9,615,444

---

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

		Six months ended June 30,
		2016				2015
Cash Flows from Operating Activities:
Net income		$	411,168			$	395,727
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization			205,460				196,255
Stock-based compensation expense			24,693				20,474
Changes in assets & liabilities, net of effects from acquisitions and dispositions:
Accounts receivable			(45,729	)			(95,013	)
Accrued interest			9,158				(1,520	)
Accrued and deferred income taxes			17,997				10,870
Other working capital accounts			123,315				(10,899	)
Other assets and deferred charges			(8,149	)			4,074
Other			52,050				2,163
Accrued insurance expense, net of commercial premiums paid			44,231				50,511
Payments made in settlement of self-insurance claims			(33,012	)			(41,039	)
Net cash provided by operating activities			801,182				531,603
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals			(247,715	)			(170,580	)
Acquisition of property and businesses			(27,525	)			(34,500	)
Net cash used in investing activities			(275,240	)			(205,080	)
Cash Flows from Financing Activities:
Reduction of long-term debt			(843,351	)			(255,658	)
Additional borrowings and related funds			1,022,239				5,200
Acquisition of minority ownership interests in majority owned businesses			(418,000	)			0
Financing costs			(10,734	)			0
Repurchase of common shares			(239,139	)			(68,157	)
Dividends paid			(19,484	)			(19,804	)
Issuance of common stock			4,362				4,039
Excess income tax benefits related to stock-based compensation			35,247				28,489
Profit distributions to noncontrolling interests			(59,615	)			(23,295	)
Proceeds received from sale/leaseback of real property			0				12,765
Net cash used in financing activities			(528,475	)			(316,421	)
Effect of exchange rate changes on cash and cash equivalents			(2,422	)			293
(Decrease) increase in cash and cash equivalents			(4,955	)			10,395
Cash and cash equivalents, beginning of period			61,228				32,069
Cash and cash equivalents, end of period		$	56,273			$	42,464
Supplemental Disclosures of Cash Flow Information:
Interest paid		$	53,558			$	55,718
Income taxes paid, net of refunds		$	165,947			$	166,637
Noncash purchases of property and equipment		$	42,747			$	34,488

---

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

 

Same Facility:		% Change Quarter ended 6/30/2016				% Change 6 months ended 6/30/2016
Acute Care Hospitals
Revenues			7.4	%			9.7	%
Adjusted Admissions			3.9	%			5.8	%
Adjusted Patient Days			2.8	%			3.1	%
Revenue Per Adjusted Admission			1.3	%			2.2	%
Revenue Per Adjusted Patient Day			2.4	%			4.8	%
Behavioral Health Hospitals
Revenues			2.0	%			2.7	%
Adjusted Admissions			-0.3	%			0.5	%
Adjusted Patient Days			0.2	%			0.7	%
Revenue Per Adjusted Admission			2.4	%			2.1	%
Revenue Per Adjusted Patient Day			1.9	%			1.9	%

 

UHS Consolidated		Second quarter ended								Six months ended
		6/30/2016				6/30/2015				6/30/2016				6/30/2015
Revenues		$	2,430,855			$	2,275,204			$	4,880,653			$	4,500,557
EBITDA (1)		$	424,827			$	413,438			$	860,240			$	819,466
EBITDA Margin (1)			17.5	%			18.2	%			17.6	%			18.2	%
Cash Flow From Operations		$	336,955			$	260,329			$	801,182			$	531,603
Days Sales Outstanding			50				54				50				55
Capital Expenditures		$	120,501			$	81,304			$	247,715			$	170,580
Debt										$	3,594,177			$	3,014,643
UHS’ Shareholders Equity										$	4,302,978			$	4,061,756
Debt / Total Capitalization											45.5	%			42.6	%
Debt / EBITDA (2)											2.21				1.99
Debt / Cash From Operations (2)											2.79				2.72
Acute Care EBITDAR Margin (3)			17.7	%			19.1	%			19.4	%			19.8	%
Behavioral Health EBITDAR Margin (3)			28.1	%			28.7	%			28.0	%			28.6	%

 

(1)	Net of Minority Interest

(2)	Latest 4 quarters

(3)	Same facility basis, before Corporate overhead allocation and minority interest.

 

---

Universal Health Services, Inc.

Selected Hospital Statistics

For the three months ended

June 30, 2016 and 2015

 

AS REPORTED:
		ACUTE												BEHAVIORAL HEALTH
		06/30/16				06/30/15				% change				06/30/16				06/30/15				% change
Hospitals owned and leased			24				24				0.0	%			213				202				5.4	%
Average licensed beds			5,854				5,836				0.3	%			21,824				21,027				3.8	%
Patient days			306,907				302,757				1.4	%			1,511,204				1,463,553				3.3	%
Average daily census			3,372.6				3,327.0				1.4	%			16,606.6				16,083.0				3.3	%
Occupancy-licensed beds			57.6	%			57.0	%			1.1	%			76.1	%			76.5	%			-0.5	%
Admissions			66,824				65,218				2.5	%			114,873				113,855				0.9	%
Length of stay			4.6				4.6				-1.1	%			13.2				12.9				2.0	%
Inpatient revenue		$	4,682,682			$	4,188,933				11.8	%		$	1,995,992			$	1,865,070				7.0	%
Outpatient revenue			2,838,852				2,403,044				18.1	%			229,243				217,013				5.6	%
Total patient revenue			7,521,534				6,591,977				14.1	%			2,225,235				2,082,083				6.9	%
Other revenue			118,988				88,970				33.7	%			53,053				54,440				-2.5	%
Gross hospital revenue			7,640,522				6,680,947				14.4	%			2,278,288				2,136,523				6.6	%
Total deductions			6,208,276				5,367,134				15.7	%			1,074,462				1,001,556				7.3	%
Net hospital revenue before provision for doubtful accounts			1,432,246				1,313,813				9.0	%			1,203,826				1,134,967				6.1	%
Provision for doubtful accounts			178,918				149,297				19.8	%			29,071				28,107				3.4	%
Net hospital revenue		$	1,253,328			$	1,164,516				7.6	%		$	1,174,755			$	1,106,860				6.1	%
SAME FACILITY:
		ACUTE												BEHAVIORAL HEALTH (1)
		06/30/16				06/30/15				% change				06/30/16				06/30/15				% change
Hospitals owned and leased			24				24				0.0	%			202				202				0.0	%
Average licensed beds			5,854				5,836				0.3	%			21,039				20,708				1.6	%
Patient days			306,907				302,757				1.4	%			1,458,903				1,450,622				0.6	%
Average daily census			3,372.6				3,327.0				1.4	%			16,031.9				15,940.9				0.6	%
Occupancy-licensed beds			57.6	%			57.0	%			1.1	%			76.2	%			77.0	%			-1.0	%
Admissions			66,824				65,218				2.5	%			113,579				113,565				0.0	%
Length of stay			4.6				4.6				-1.1	%			12.8				12.8				0.6	%

 

(1)	ALPHA (UK) entities, and the Foundations Recovery Network entities are excluded in both current and prior years.

 

---

Universal Health Services, Inc.

Selected Hospital Statistics

For the six months ended

June 30, 2016 and 2015

 

 

AS REPORTED:
		ACUTE												BEHAVIORAL HEALTH
		06/30/16				06/30/15				% change				06/30/16				06/30/15				% change
Hospitals owned and leased			24				24				0.0	%			213				202				5.4	%
Average licensed beds			5,854				5,814				0.7	%			21,788				21,005				3.7	%
Patient days			632,141				620,720				1.8	%			3,011,909				2,906,619				3.6	%
Average daily census			3,473.3				3,429.3				1.3	%			16,549.0				16,058.7				3.1	%
Occupancy-licensed beds			59.3	%			59.0	%			0.6	%			76.0	%			76.5	%			-0.7	%
Admissions			136,498				130,637				4.5	%			230,294				226,561				1.6	%
Length of stay			4.6				4.8				-2.5	%			13.1				12.8				1.9	%
Inpatient revenue		$	9,648,219			$	8,517,700				13.3	%		$	3,955,562			$	3,688,495				7.2	%
Outpatient revenue			5,606,181				4,687,756				19.6	%			450,886				421,582				7.0	%
Total patient revenue			15,254,400				13,205,456				15.5	%			4,406,448				4,110,077				7.2	%
Other revenue			230,545				177,645				29.8	%			103,591				105,120				-1.5	%
Gross hospital revenue			15,484,945				13,383,101				15.7	%			4,510,039				4,215,197				7.0	%
Total deductions			12,625,797				10,798,998				16.9	%			2,115,123				1,973,529				7.2	%
Net hospital revenue before provision for doubtful accounts			2,859,148				2,584,103				10.6	%			2,394,916				2,241,668				6.8	%
Provision for doubtful accounts			318,673				273,647				16.5	%			59,115				58,463				1.1	%
Net hospital revenue		$	2,540,475			$	2,310,456				10.0	%		$	2,335,801			$	2,183,205				7.0	%
SAME FACILITY:
		ACUTE												BEHAVIORAL HEALTH (1)
		06/30/16				06/30/15				% change				06/30/16				06/30/15				% change
Hospitals owned and leased			24				24				0.0	%			202				202				0.0	%
Average licensed beds			5,854				5,814				0.7	%			21,019				20,708				1.5	%
Patient days			632,141				620,720				1.8	%			2,907,195				2,881,882				0.9	%
Average daily census			3,473.3				3,429.3				1.3	%			15,973.6				15,922.0				0.3	%
Occupancy-licensed beds			59.3	%			59.0	%			0.6	%			76.0	%			76.9	%			-1.2	%
Admissions			136,498				130,637				4.5	%			227,688				225,892				0.8	%
Length of stay			4.6				4.8				-2.5	%			12.8				12.8				0.1	%

 

(1)	ALPHA (UK) entities, and the Foundations Recovery Network entities are excluded in both current and prior years.