8-K
0000352915false00003529152023-10-252023-10-25

 

 

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): October 25, 2023

 

UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware

1-10765

23-2077891

(State or other jurisdiction of

(Commission

(I.R.S. Employer

Incorporation or Organization)

File Number)

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 Instructions 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))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class B Common Stock

UHS

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


 

Item 2.02 Results of Operations and Financial Condition

On October 25, 2023, 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 October 25, 2023.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

Exhibit Index

Exhibit No.

Exhibit

 

 

99.1

Universal Health Services, Inc., press release, dated October 25, 2023.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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.

Universal Health Services, Inc.

 

By:

/s/ Steve Filton

Name: Steve Filton

Title: Executive Vice President and

            Chief Financial Officer

Date: October 26, 2023

 

 

 


EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

October 25, 2023

 

CONTACT:

Steve Filton

 

Chief Financial Officer

 

610-768-3300

 

 

UNIVERSAL HEALTH SERVICES, INC.

ANNOUNCES 2023 THIRD QUARTER FINANCIAL RESULTS

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended September 30, 2023 and 2022:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $167.0 million, or $2.40 per diluted share, during the third quarter of 2023, as compared to $182.8 million, or $2.50 per diluted share, during the third quarter of 2022. Net revenues increased by 6.8% to $3.563 billion during the third quarter of 2023, as compared to $3.336 billion during the third quarter of 2022.

As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the third quarter of 2023 was $177.5 million, or $2.55 per diluted share, as compared to $185.8 million, or $2.54 per diluted share, during the third quarter of 2022. As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $10.5 million, or $.15 per diluted share ($13.8 million pre-tax), during the third quarter of 2023, and $3.0 million, or $.04 per diluted share ($3.9 million pre-tax) during the third quarter of 2022. These unrealized losses, which are included in “Other (income) expense, net”, resulted from decreases in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”, NCI is net income attributable to noncontrolling interests), was $410.1 million during the third quarter of 2023, as compared to $421.7 million during the third quarter of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $421.5 million during the third quarter of 2023, as compared to $427.8 million during the third quarter of 2022.

Consolidated Results of Operations, As Reported and As Adjusted – Nine-month periods ended September 30, 2023 and 2022:

Reported net income attributable to UHS was $501.4 million, or $7.09 per diluted share, during the first nine months of 2023, as compared to $500.8 million, or $6.71 per diluted share, during the first nine months 2022. Net revenues increased by 6.3% to $10.578 billion during the first nine months of 2023, as compared to $9.952 billion during the comparable period of 2022.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first nine months of 2023, was $524.5 million, or $7.42 per diluted share, as compared to $513.1 million, or $6.88 per diluted share, during the nine-month period ended September 30, 2022.

As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $23.0 million, or $.33 per diluted share, ($30.1 million pre-tax) during the first nine months of 2023 and $12.4 million, or $.17 per diluted share, ($16.1 million pre-tax) during the first nine months of 2022. These unrealized losses, which are included in “Other (income) expense, net”, resulted from decreases in the market value of certain equity securities.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”), was $1.237 billion during the first nine months of 2023, as compared to $1.175 billion during the first nine months of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was


$1.268 billion during the first nine months of 2023, as compared to $1.190 billion during the comparable period of 2022.

Acute Care Services – Three and nine-month periods ended September 30, 2023 and 2022:

During the third quarter of 2023, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 6.8% while adjusted patient days increased by 3.8%, as compared to the third quarter of 2022. At these facilities, during the third quarter of 2023, net revenue per adjusted admission increased by 0.4% while net revenue per adjusted patient day increased by 3.3%, as compared to the third quarter of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 7.5% during the third quarter of 2023, as compared to the third quarter of 2022.

During the nine-month period ended September 30, 2023, at our acute care hospitals on a same facility basis, adjusted admissions increased by 8.3% while adjusted patient days increased by 4.8%, as compared to the first nine months of 2022. At these facilities, during the first nine months of 2023, net revenue per adjusted admission decreased by 2.0% while net revenue per adjusted patient day increased by 1.3%, as compared to the first nine months of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 6.9% during the first nine months of 2023, as compared to the comparable period of 2022.

Behavioral Health Care Services – Three and nine-month periods ended September 30, 2023 and 2022:

During the third quarter of 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.8% while adjusted patient days increased by 1.1%, as compared to the third quarter of 2022. At these facilities, during the third quarter of 2023, net revenue per adjusted admission increased by 6.8% and net revenue per adjusted patient day increased by 6.5%, as compared to the third quarter of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.6% during the third quarter of 2023, as compared to the third quarter of 2022.

During the nine-month period ended September 30, 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 3.8% while adjusted patient days increased by 2.4%, as compared to the first nine months of 2022. At these facilities, during the first nine months of 2023, net revenue per adjusted admission increased by 4.4% and net revenue per adjusted patient day increased by 5.9%, as compared to the first nine months of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 8.3% during the first nine months of 2023, as compared to the comparable period of 2022.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the nine-month period ended September 30, 2023, our net cash provided by operating activities was $815 million as compared to $699 million during the first nine months of 2022. Included in the $117 million net increase in our net cash provided by operating activities was a favorable change of $109 million in other working capital accounts due primarily to the timing of disbursements for accrued compensation and accounts payable.

Liquidity:

As of September 30, 2023, we had $721 million of aggregate available borrowing capacity pursuant to our $1.2 billion revolving credit facility, net of outstanding borrowings and letters of credit.

Stock Repurchase Program:

As of December 31, 2022, we had an aggregate remaining repurchase authorization of approximately $947 million pursuant to our stock repurchase program. Pursuant to the terms of our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions.

During the third quarter of 2023, we have repurchased 1.32 million shares at an aggregate cost of approximately $175.1 million (approximately $133 per share) pursuant to the program. During the first nine months of 2023, we have repurchased approximately 2.73 million shares at an aggregate cost of approximately $367.2 million (approximately $135 per share) pursuant to the program.


As of September 30, 2023, we had an aggregate available repurchase authorization of approximately $580 million.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 26, 2023. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link.

Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call.

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation’s largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2022 were approximately $13.4 billion. UHS ranked #311 on the Fortune 500; and #434 on Forbes’ list of America’s Largest Public Companies. UHS was again recognized as one of the World’s Most Admired Companies by Fortune.

Our operating philosophy is as effective today as it was upon the Company’s founding in 1979, enabling us to provide compassionate care to our patients and their loved ones. Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has approximately 93,800 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 331 inpatient behavioral health facilities, 43 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT). For additional information visit www.uhs.com.

This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to the potential impact of COVID-19 on our operations and financial results, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended June 30, 2023 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2022), may cause the results to differ materially from those anticipated in the forward-looking statements. 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.

Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to:

The nationwide shortage of nurses and other clinical staff and support personnel has been a significant operating issue facing us and other healthcare providers. In some areas, the labor scarcity is putting a strain on our resources and staff, which has required us to utilize higher‑cost temporary labor and pay premiums above standard compensation for essential workers. These factors, which had a material unfavorable impact on our results of operations during 2022, could continue to have an unfavorable material impact on our results of operations for the foreseeable future.
The impact of the COVID-19 pandemic, which began in March, 2020, has had a material effect on our operations and financial results, at various times, since that time. We cannot predict if there will be future disruptions caused by the COVID‑19 pandemic.

A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions. Changes to these programs, if adopted, could materially affect program payments which could materially impact our results of operations.
The increase in interest rates has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy.

We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, 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 of material items impacting our net income attributable to UHS, such as, changes in the market value of shares of certain equity securities and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, 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 attributable to UHS, as determined in accordance with GAAP, and 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-Q for the quarter ended June 30, 2023 and our Report on Form 10-K for the year ended December 31, 2022. 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)

 

 

 


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,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net revenues

 

$

3,562,774

 

 

 

3,336,027

 

 

$

10,578,430

 

 

 

9,952,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

1,784,870

 

 

 

1,677,431

 

 

 

5,308,476

 

 

 

5,061,173

 

Other operating expenses

 

 

941,219

 

 

 

837,241

 

 

 

2,758,484

 

 

 

2,526,060

 

Supplies expense

 

 

378,667

 

 

 

366,337

 

 

 

1,138,950

 

 

 

1,092,403

 

Depreciation and amortization

 

 

137,195

 

 

 

145,874

 

 

 

422,560

 

 

 

433,508

 

Lease and rental expense

 

 

35,466

 

 

 

33,264

 

 

 

105,775

 

 

 

97,075

 

 

 

3,277,417

 

 

 

3,060,147

 

 

 

9,734,245

 

 

 

9,210,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

285,357

 

 

 

275,880

 

 

 

844,185

 

 

 

742,171

 

Interest expense, net

 

 

53,378

 

 

 

35,653

 

 

 

153,085

 

 

 

83,002

 

Other (income) expense, net

 

 

11,472

 

 

 

6,015

 

 

 

31,797

 

 

 

15,244

 

Income before income taxes

 

 

220,507

 

 

 

234,212

 

 

 

659,303

 

 

 

643,925

 

Provision for income taxes

 

 

52,499

 

 

 

57,401

 

 

 

159,618

 

 

 

157,312

 

Net income

 

 

168,008

 

 

 

176,811

 

 

 

499,685

 

 

 

486,613

 

Less: Net income (loss) attributable to noncontrolling interests ("NCI")

 

 

1,019

 

 

 

(6,003

)

 

 

(1,732

)

 

 

(14,176

)

Net income attributable to UHS

 

$

166,989

 

 

$

182,814

 

 

$

501,417

 

 

$

500,789

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS (a)

 

$

2.42

 

 

$

2.52

 

 

$

7.18

 

 

$

6.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS (a)

 

$

2.40

 

 

$

2.50

 

 

$

7.09

 

 

$

6.71

 

 

 


Universal Health Services, Inc.

 

Footnotes to Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

Nine months

 

 

 

ended September 30,

 

 

ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

(a) Earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to UHS

 

$

166,989

 

 

$

182,814

 

 

$

501,417

 

 

$

500,789

 

Less: Net income attributable to unvested restricted share grants

 

 

(52

)

 

 

(179

)

 

 

(242

)

 

 

(592

)

Net income attributable to UHS - basic and diluted

 

$

166,937

 

 

$

182,635

 

 

$

501,175

 

 

$

500,197

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic

 

 

68,867

 

 

 

72,595

 

 

 

69,825

 

 

 

73,769

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS:

 

$

2.42

 

 

$

2.52

 

 

$

7.18

 

 

$

6.78

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

68,867

 

 

 

72,595

 

 

 

69,825

 

 

 

73,769

 

Add: Other share equivalents

 

 

757

 

 

 

465

 

 

 

825

 

 

 

743

 

Weighted average number of common shares and equiv. - diluted

 

 

69,624

 

 

 

73,060

 

 

 

70,650

 

 

 

74,512

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS:

 

$

2.40

 

 

$

2.50

 

 

$

7.09

 

 

$

6.71

 

 

 


Universal Health Services, Inc.

 

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

 

For the Three Months ended September 30, 2023 and 2022

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

% Net

 

 

Three months ended

 

 

% Net

 

 

September 30, 2023

 

 

revenues

 

 

September 30, 2022

 

 

revenues

 

Net income attributable to UHS

$

166,989

 

 

 

 

 

$

182,814

 

 

 

 

   Depreciation and amortization

 

137,195

 

 

 

 

 

 

145,874

 

 

 

 

   Interest expense, net

 

53,378

 

 

 

 

 

 

35,653

 

 

 

 

   Provision for income taxes

 

52,499

 

 

 

 

 

 

57,401

 

 

 

 

EBITDA net of NCI

$

410,061

 

 

 

11.5

%

 

$

421,742

 

 

 

12.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

11,472

 

 

 

 

 

 

6,015

 

 

 

 

Adjusted EBITDA net of NCI

$

421,533

 

 

 

11.8

%

 

$

427,757

 

 

 

12.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

3,562,774

 

 

 

 

 

$

3,336,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Adjusted Net Income Attributable to UHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

September 30, 2023

 

 

September 30, 2022

 

 

 

 

 

Per

 

 

 

 

 

Per

 

 

Amount

 

 

Diluted Share

 

 

Amount

 

 

Diluted Share

 

Net income attributable to UHS

$

166,989

 

 

$

2.40

 

 

$

182,814

 

 

$

2.50

 

Plus/minus after-tax adjustments:

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on equity securities

 

10,528

 

 

 

0.15

 

 

 

2,974

 

 

 

0.04

 

Subtotal adjustments

 

10,528

 

 

 

0.15

 

 

 

2,974

 

 

 

0.04

 

Adjusted net income attributable to UHS

$

177,517

 

 

$

2.55

 

 

$

185,788

 

 

$

2.54

 

 


Universal Health Services, Inc.

 

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

 

For the Nine Months ended September 30, 2023 and 2022

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

% Net

 

 

Nine months ended

 

 

% Net

 

 

September 30, 2023

 

 

revenues

 

 

September 30, 2022

 

 

revenues

 

Net income attributable to UHS

$

501,417

 

 

 

 

 

$

500,789

 

 

 

 

   Depreciation and amortization

 

422,560

 

 

 

 

 

 

433,508

 

 

 

 

   Interest expense, net

 

153,085

 

 

 

 

 

 

83,002

 

 

 

 

   Provision for income taxes

 

159,618

 

 

 

 

 

 

157,312

 

 

 

 

EBITDA net of NCI

$

1,236,680

 

 

 

11.7

%

 

$

1,174,611

 

 

 

11.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

31,797

 

 

 

 

 

 

15,244

 

 

 

 

Adjusted EBITDA net of NCI

$

1,268,477

 

 

 

12.0

%

 

$

1,189,855

 

 

 

12.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

10,578,430

 

 

 

 

 

$

9,952,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Adjusted Net Income Attributable to UHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

Nine months ended

 

 

September 30, 2023

 

 

September 30, 2022

 

 

 

 

 

Per

 

 

 

 

 

Per

 

 

Amount

 

 

Diluted Share

 

 

Amount

 

 

Diluted Share

 

Net income attributable to UHS

$

501,417

 

 

$

7.09

 

 

$

500,789

 

 

$

6.71

 

Plus/minus after-tax adjustments:

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on equity securities

 

23,040

 

 

 

0.33

 

 

 

12,358

 

 

 

0.17

 

Subtotal adjustments

 

23,040

 

 

 

0.33

 

 

 

12,358

 

 

 

0.17

 

Adjusted net income attributable to UHS

$

524,457

 

 

$

7.42

 

 

$

513,147

 

 

$

6.88

 

 


Universal Health Services, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

80,768

 

 

$

102,818

 

Accounts receivable, net

 

 

2,234,343

 

 

 

2,017,722

 

Supplies

 

 

214,587

 

 

 

218,517

 

Other current assets

 

 

223,303

 

 

 

198,283

 

Total current assets

 

 

2,753,001

 

 

 

2,537,340

 

 

 

 

 

 

 

Property and equipment

 

 

11,610,188

 

 

 

11,085,852

 

Less: accumulated depreciation

 

 

(5,523,135

)

 

 

(5,167,394

)

 

 

6,087,053

 

 

 

5,918,458

 

Other assets:

 

 

 

 

 

 

Goodwill

 

 

3,912,122

 

 

 

3,909,456

 

Deferred income taxes

 

 

99,580

 

 

 

68,397

 

Right of use assets-operating leases

 

 

443,924

 

 

 

454,650

 

Deferred charges

 

 

7,062

 

 

 

6,264

 

Other

 

 

570,728

 

 

 

599,623

 

Total Assets

 

$

13,873,470

 

 

$

13,494,188

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current maturities of long-term debt

 

$

126,555

 

 

$

81,447

 

Accounts payable and other liabilities

 

 

1,783,460

 

 

 

1,760,588

 

Operating lease liabilities

 

 

72,655

 

 

 

67,776

 

Federal and state taxes

 

 

7,145

 

 

 

4,608

 

Total current liabilities

 

 

1,989,815

 

 

 

1,914,419

 

 

 

 

 

 

 

Other noncurrent liabilities

 

 

587,829

 

 

 

487,669

 

Operating lease liabilities noncurrent

 

 

388,550

 

 

 

395,522

 

Long-term debt

 

 

4,796,074

 

 

 

4,726,533

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

4,719

 

 

 

4,695

 

 

 

 

 

 

 

UHS common stockholders' equity

 

 

6,064,915

 

 

 

5,920,582

 

Noncontrolling interest

 

 

41,568

 

 

 

44,768

 

Total equity

 

 

6,106,483

 

 

 

5,965,350

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

13,873,470

 

 

$

13,494,188

 

 

 


Universal Health Services, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

(unaudited)

 

 

Nine months

 

 

ended September 30,

 

 

2023

 

 

2022

 

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

$

499,685

 

 

$

486,613

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation & amortization

 

422,560

 

 

 

433,508

 

(Gain) loss on sale of assets and businesses

 

(6,250

)

 

 

584

 

Stock-based compensation expense

 

65,702

 

 

 

62,741

 

Changes in assets & liabilities, net of effects from acquisitions and dispositions:

 

 

 

 

 

Accounts receivable

 

(193,108

)

 

 

(155,142

)

Accrued interest

 

60

 

 

 

529

 

Accrued and deferred income taxes

 

(33,240

)

 

 

(4,900

)

Other working capital accounts

 

(65,062

)

 

 

(173,903

)

Medicare accelerated payments and deferred CARES Act and other grants

 

1,764

 

 

 

2,921

 

Other assets and deferred charges

 

48,985

 

 

 

22,219

 

Other

 

13,717

 

 

 

(23,358

)

Accrued insurance expense, net of commercial premiums paid

 

141,414

 

 

 

134,908

 

Payments made in settlement of self-insurance claims

 

(80,861

)

 

 

(88,001

)

Net cash provided by operating activities

 

815,366

 

 

 

698,719

 

Cash Flows from Investing Activities:

 

 

 

 

 

Property and equipment additions

 

(536,665

)

 

 

(569,555

)

Proceeds received from sales of assets and businesses

 

23,688

 

 

 

12,001

 

Acquisition of businesses and property

 

(3,728

)

 

 

(18,666

)

(Outflows) inflows from foreign exchange contracts that hedge our net U.K. investment

 

(7,723

)

 

 

177,214

 

Decrease in capital reserves of commercial insurance subsidiary

 

0

 

 

 

100

 

Net cash used in investing activities

 

(524,428

)

 

 

(398,906

)

Cash Flows from Financing Activities:

 

 

 

 

 

Repayments of long-term debt

 

(54,009

)

 

 

(194,115

)

Additional borrowings

 

165,000

 

 

 

705,321

 

Financing costs

 

(308

)

 

 

(2,541

)

Repurchase of common shares

 

(385,339

)

 

 

(723,384

)

Dividends paid

 

(41,964

)

 

 

(44,192

)

Issuance of common stock

 

9,841

 

 

 

10,399

 

Profit distributions to noncontrolling interests

 

(5,258

)

 

 

(5,426

)

(Purchase) sale of ownership interests by (from) minority members

 

408

 

 

 

(49,089

)

Net cash used in financing activities

 

(311,629

)

 

 

(303,027

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

493

 

 

 

(10,339

)

Decrease in cash, cash equivalents and restricted cash

 

(20,198

)

 

 

(13,553

)

Cash, cash equivalents and restricted cash, beginning of period

 

200,837

 

 

 

178,934

 

Cash, cash equivalents and restricted cash, end of period

$

180,639

 

 

$

165,381

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

Interest paid

$

149,247

 

 

$

78,992

 

Income taxes paid, net of refunds

$

191,189

 

 

$

182,091

 

Noncash purchases of property and equipment

$

108,412

 

 

$

97,264

 

 


Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

 

 

 

 

 

 

 

 

 

 

% Change

 

% Change

Same Facility:

 

 

 

 

Three Months ended

 

Nine Months ended

 

 

 

 

 

9/30/2023

 

9/30/2023

Acute Care Services

 

 

 

 

 

 

 

Revenues

 

 

 

 

7.5%

 

6.9%

Adjusted Admissions

 

 

 

 

6.8%

 

8.3%

Adjusted Patient Days

 

 

 

 

3.8%

 

4.8%

Revenue Per Adjusted Admission

 

 

 

 

0.4%

 

-2.0%

Revenue Per Adjusted Patient Day

 

 

 

 

3.3%

 

1.3%

 

 

 

 

 

 

 

 

Behavioral Health Care Services

 

 

 

 

 

 

 

Revenues

 

 

 

 

7.6%

 

8.3%

Adjusted Admissions

 

 

 

 

0.8%

 

3.8%

Adjusted Patient Days

 

 

 

 

1.1%

 

2.4%

Revenue Per Adjusted Admission

 

 

 

 

6.8%

 

4.4%

Revenue Per Adjusted Patient Day

 

 

 

 

6.5%

 

5.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UHS Consolidated

Third quarter ended

 

Nine months ended

 

9/30/2023

 

9/30/2022

 

9/30/2023

 

9/30/2022

Revenues

$3,562,774

 

$3,336,027

 

$10,578,430

 

$9,952,390

EBITDA net of NCI

$410,061

 

$421,742

 

$1,236,680

 

$1,174,611

EBITDA Margin net of NCI

11.5%

 

12.6%

 

11.7%

 

11.8%

Adjusted EBITDA net of NCI

$421,533

 

$427,757

 

$1,268,477

 

$1,189,855

Adjusted EBITDA Margin net of NCI

11.8%

 

12.8%

 

12.0%

 

12.0%

 

 

 

 

 

 

 

Cash Flow From Operations

$161,665

 

$220,672

 

$815,366

 

$698,719

Capital Expenditures

$200,001

 

$161,593

 

$536,665

 

$569,555

Days Sales Outstanding

 

 

 

 

58

 

52

 

 

 

 

 

 

 

Debt

 

 

 

 

$4,922,629

 

$4,704,663

UHS' Shareholders Equity

 

 

 

 

$6,064,915

 

$5,855,353

Debt / Total Capitalization

 

 

 

 

44.8%

 

44.6%

Debt / EBITDA net of NCI (1)

 

 

 

 

2.97

 

2.87

Debt / Adjusted EBITDA net of NCI (1)

 

 

 

 

2.83

 

2.87

Debt / Cash From Operations (1)

 

 

 

 

4.42

 

4.61

 

 

 

 

 

 

 

 

(1) Latest 4 quarters.

 

 

 

 

 

 

 

 


Universal Health Services, Inc.

Acute Care Hospital Services

For the Three and Nine Months ended

September 30, 2023 and 2022

(in thousands)

 

Same Facility Basis - Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended