8-K
false000035291500003529152024-04-242024-04-24

 

 

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): April 24, 2024

 

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 April 24, 2024, 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 April 24, 2024.

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 April 24, 2024.

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: April 25, 2024

 

 

 


EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 24, 2024

 

CONTACT:

Steve Filton

 

Chief Financial Officer

 

610-768-3300

 

 

UNIVERSAL HEALTH SERVICES, INC.

ANNOUNCES 2024 FIRST QUARTER FINANCIAL RESULTS

 

Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended March 31, 2024 and 2023:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $261.8 million, or $3.82 per diluted share, during the first quarter of 2024, as compared to $163.1 million, or $2.28 per diluted share, during the first quarter of 2023. Net revenues increased by 10.8% to $3.844 billion during the first quarter of 2024, as compared to $3.468 billion during the first quarter of 2023.

As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the first quarter of 2024 was $253.1 million, or $3.70 per diluted share, as compared to $167.6 million, or $2.34 per diluted share, during the first quarter of 2023.

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2024 were: (i) a favorable after-tax impact of $9.2 million, or $.13 per diluted share, resulting from the tax benefit recorded in connection with employee share-based payments (pursuant to “ASU 2016-09”, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting), and; (ii) an unrealized after-tax loss of $0.4 million, or $.01 per diluted share ($0.6 million pre-tax), resulting from a decrease in the market value of certain equity securities (included in “Other (income) expense, net”). Our reported results during the first quarter of 2023 included an unrealized after-tax loss of $4.5 million, or $.06 per diluted share, ($5.8 million pre-tax) resulting from a decrease 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 $525.9 million during the first quarter of 2024, as compared to $407.3 million during the first quarter of 2023. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $525.8 million during the first quarter of 2024, as compared to $421.1 million during the first quarter of 2023.

Acute Care Services – Three-month periods ended March 31, 2024 and 2023:

During the first quarter of 2024, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 4.5% while adjusted patient days increased by 3.4%, as compared to the first quarter of 2023. At these facilities, during the first quarter of 2024, net revenue per adjusted admission increased by 4.6% while net revenue per adjusted patient day increased by 5.8%, as compared to the first quarter of 2023. Net revenues generated from our acute care services, on a same facility basis, increased by 9.6% during the first quarter of 2024, as compared to the first quarter of 2023.

Behavioral Health Care Services – Three-month periods ended March 31, 2024 and 2023:

During the first quarter of 2024, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased by 0.8% while adjusted patient days increased by 2.0%, as compared to the first quarter of 2023. At these facilities, during the first quarter of 2024, net revenue per adjusted admission increased by 11.2% and net revenue per adjusted patient day increased by 8.2%, as compared to the first quarter of 2023. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 10.4% during the first quarter of 2024, as compared to the first quarter of 2023.


Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the three-month period ended March 31, 2024, our net cash provided by operating activities was $396 million as compared to $291 million during the first three months of 2023. The $106 million net increase in our net cash provided by operating activities consisted of: (i) a favorable change of $98 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gains on sales of assets and businesses; (ii) a favorable change of $86 million in other working capital accounts due primarily to the timing of disbursements for other accrued liabilities; (iii) an unfavorable change of $59 million in accounts receivable; (iv) an unfavorable change of $45 million in other assets and deferred charges, and; (v) $26 million of other combined net favorable changes.

Liquidity:

As of March 31, 2024, we had $733 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:

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 first quarter of 2024, we have repurchased 700,000 shares at an aggregate cost of approximately $125.1 million (approximately $179 per share) pursuant to the program. As of March 31, 2024, we had an aggregate available repurchase authorization of approximately $298 million.

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 25, 2024. 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. (the “Company”) has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2023 were $14.282 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 96,700 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 333 inpatient behavioral health facilities, 48 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 healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth 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, 2023), 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:

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.
The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the March 28, 2024, jury award (of compensatory damages of $60 million and punitive damages of $475 million) against The Pavilion Behavioral Health System (the “Pavilion), an indirect subsidiary of the Company, as previously disclosed on Form 8-K, as filed with the Securities and Exchange Commission on April 1, 2024. While the Pavilion has professional liability insurance to cover a portion of these amounts, the resolution of this matter may have a material adverse effect on the Company.

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, the impact of ASU 2016-09 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-K for the year ended December 31, 2023. 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

 

 

 

ended March 31,

 

 

 

2024

 

 

2023

 

Net revenues

 

$

3,843,582

 

 

 

3,467,518

 

 

 

 

 

 

 

 

Operating charges:

 

 

 

 

 

 

Salaries, wages and benefits

 

 

1,842,624

 

 

 

1,753,335

 

Other operating expenses

 

 

1,032,170

 

 

 

878,951

 

Supplies expense

 

 

403,573

 

 

 

379,989

 

Depreciation and amortization

 

 

141,003

 

 

 

141,621

 

Lease and rental expense

 

 

35,450

 

 

 

34,922

 

 

 

3,454,820

 

 

 

3,188,818

 

 

 

 

 

 

 

 

Income from operations

 

 

388,762

 

 

 

278,700

 

Interest expense, net

 

 

52,826

 

 

 

50,876

 

Other (income) expense, net

 

 

(150

)

 

 

13,723

 

Income before income taxes

 

 

336,086

 

 

 

214,101

 

Provision for income taxes

 

 

70,264

 

 

 

51,726

 

Net income

 

 

265,822

 

 

 

162,375

 

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

 

 

3,988

 

 

 

(740

)

Net income attributable to UHS

 

$

261,834

 

 

$

163,115

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS (a)

 

$

3.90

 

 

$

2.31

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS (a)

 

$

3.82

 

 

$

2.28

 

 

 


Universal Health Services, Inc.

 

Footnotes to Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2024

 

 

2023

 

(a) Earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted:

 

 

 

 

 

 

Net income attributable to UHS

 

$

261,834

 

 

$

163,115

 

Less: Net income attributable to unvested restricted share grants

 

 

(45

)

 

 

(129

)

Net income attributable to UHS - basic and diluted

 

$

261,789

 

 

$

162,986

 

 

 

 

 

 

 

Weighted average number of common shares - basic

 

 

67,204

 

 

 

70,535

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS:

 

$

3.90

 

 

$

2.31

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

67,204

 

 

 

70,535

 

Add: Other share equivalents

 

 

1,278

 

 

 

952

 

Weighted average number of common shares and equiv. - diluted

 

 

68,482

 

 

 

71,487

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS:

 

$

3.82

 

 

$

2.28

 

 

 


Universal Health Services, Inc.

 

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

 

For the Three Months ended March 31, 2024 and 2023

 

(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

 

 

March 31, 2024

 

 

revenues

 

 

March 31, 2023

 

 

revenues

 

Net income attributable to UHS

$

261,834

 

 

 

 

 

$

163,115

 

 

 

 

   Depreciation and amortization

 

141,003

 

 

 

 

 

 

141,621

 

 

 

 

   Interest expense, net

 

52,826

 

 

 

 

 

 

50,876

 

 

 

 

   Provision for income taxes

 

70,264

 

 

 

 

 

 

51,726

 

 

 

 

EBITDA net of NCI

$

525,927

 

 

 

13.7

%

 

$

407,338

 

 

 

11.7

%

Other (income) expense, net

 

(150

)

 

 

 

 

 

13,723

 

 

 

 

Adjusted EBITDA net of NCI

$

525,777

 

 

 

13.7

%

 

$

421,061

 

 

 

12.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

3,843,582

 

 

 

 

 

$

3,467,518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Adjusted Net Income Attributable to UHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

March 31, 2024

 

 

March 31, 2023

 

 

 

 

 

Per

 

 

 

 

 

Per

 

 

Amount

 

 

Diluted Share

 

 

Amount

 

 

Diluted Share

 

Net income attributable to UHS

$

261,834

 

 

$

3.82

 

 

$

163,115

 

 

$

2.28

 

Plus/minus after-tax adjustments:

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on equity securities

 

444

 

 

 

0.01

 

 

 

4,461

 

 

 

0.06

 

Impact of ASU 2016-09

 

(9,156

)

 

 

(0.13

)

 

 

-

 

 

 

-

 

Subtotal adjustments

 

(8,712

)

 

 

(0.12

)

 

 

4,461

 

 

 

0.06

 

Adjusted net income attributable to UHS

$

253,122

 

 

$

3.70

 

 

$

167,576

 

 

$

2.34

 

 


Universal Health Services, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

112,093

 

 

$

119,439

 

Accounts receivable, net

 

 

2,299,425

 

 

 

2,238,265

 

Supplies

 

 

216,058

 

 

 

216,988

 

Other current assets

 

 

243,352

 

 

 

236,658

 

Total current assets

 

 

2,870,928

 

 

 

2,811,350

 

 

 

 

 

 

 

Property and equipment

 

 

11,955,109

 

 

 

11,777,047

 

Less: accumulated depreciation

 

 

(5,770,371

)

 

 

(5,652,518

)

 

 

6,184,738

 

 

 

6,124,529

 

Other assets:

 

 

 

 

 

 

Goodwill

 

 

3,928,120

 

 

 

3,932,407

 

Deferred income taxes

 

 

94,853

 

 

 

85,626

 

Right of use assets-operating leases

 

 

422,268

 

 

 

433,962

 

Deferred charges

 

 

6,871

 

 

 

6,974

 

Other

 

 

538,354

 

 

 

572,754

 

Total Assets

 

$

14,046,132

 

 

$

13,967,602

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current maturities of long-term debt

 

$

127,477

 

 

$

126,686

 

Accounts payable and other liabilities

 

 

1,830,178

 

 

 

1,813,015

 

Operating lease liabilities

 

 

71,014

 

 

 

71,600

 

Federal and state taxes

 

 

46,667

 

 

 

2,046

 

Total current liabilities

 

 

2,075,336

 

 

 

2,013,347

 

 

 

 

 

 

 

Other noncurrent liabilities

 

 

551,257

 

 

 

584,007

 

Operating lease liabilities noncurrent

 

 

374,380

 

 

 

382,559

 

Long-term debt

 

 

4,734,328

 

 

 

4,785,783

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

4,987

 

 

 

5,191

 

 

 

 

 

 

 

UHS common stockholders' equity

 

 

6,256,697

 

 

 

6,149,001

 

Noncontrolling interest

 

 

49,147

 

 

 

47,714

 

Total equity

 

 

6,305,844

 

 

 

6,196,715

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

14,046,132

 

 

$

13,967,602

 

 

 


Universal Health Services, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

(unaudited)

 

 

Three months

 

 

ended March 31,

 

 

2024

 

 

2023

 

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

$

265,822

 

 

$

162,375

 

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

 

 

 

 

 

Depreciation & amortization

 

141,003

 

 

 

141,621

 

Gains on sale of assets and businesses

 

(3,725

)

 

 

(295

)

Stock-based compensation expense

 

19,630

 

 

 

20,964

 

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

 

 

 

 

 

Accounts receivable

 

(74,446

)

 

 

(15,723

)

Accrued interest

 

3,453

 

 

 

(662

)

Accrued and deferred income taxes

 

72,193

 

 

 

46,576

 

Other working capital accounts

 

(33,291

)

 

 

(119,605

)

Medicare accelerated payments and deferred CARES Act and other grants

 

0

 

 

 

136

 

Other assets and deferred charges

 

(20,307

)

 

 

24,727

 

Other

 

8,897

 

 

 

7,030

 

Accrued insurance expense, net of commercial premiums paid

 

51,112

 

 

 

42,545

 

Payments made in settlement of self-insurance claims

 

(33,935

)

 

 

(18,936

)

Net cash provided by operating activities

 

396,406

 

 

 

290,753

 

Cash Flows from Investing Activities:

 

 

 

 

 

Property and equipment additions

 

(208,539

)

 

 

(168,752

)

Proceeds received from sales of assets and businesses

 

5,428

 

 

 

9,259

 

Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment

 

8,319

 

 

 

(18,818

)

Decrease in capital reserves of commercial insurance subsidiary

 

155

 

 

 

0

 

Net cash used in investing activities

 

(194,637

)

 

 

(178,311

)

Cash Flows from Financing Activities:

 

 

 

 

 

Repayments of long-term debt

 

(63,905

)

 

 

(16,489

)

Additional borrowings

 

12,038

 

 

 

11,300

 

Financing costs

 

0

 

 

 

(292

)

Repurchase of common shares

 

(142,084

)

 

 

(85,039

)

Dividends paid

 

(13,601

)

 

 

(14,214

)

Issuance of common stock

 

3,241

 

 

 

2,988

 

Profit distributions to noncontrolling interests

 

(4,480

)

 

 

(4,145

)

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

 

(156

)

 

 

0

 

Net cash used in financing activities

 

(208,947

)

 

 

(105,891

)

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

 

(492

)

 

 

1,650

 

(Decrease) increase in cash, cash equivalents and restricted cash

 

(7,670

)

 

 

8,201

 

Cash, cash equivalents and restricted cash, beginning of period

 

214,470

 

 

 

200,837

 

Cash, cash equivalents and restricted cash, end of period

$

206,800

 

 

$

209,038

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

Interest paid

$

48,116

 

 

$

50,279

 

Income taxes paid, net of refunds

$

2,671

 

 

$

2,360

 

Noncash purchases of property and equipment

$

60,125

 

 

$

61,341

 

 


Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

 

 

 

 

 

 

 

 

 

% Change

Same Facility:

 

 

 

Three Months ended

 

 

 

 

3/31/2024

Acute Care Services

 

 

 

 

Revenues

 

 

 

9.6%

Adjusted Admissions

 

 

 

4.5%

Adjusted Patient Days

 

 

 

3.4%

Revenue Per Adjusted Admission

 

 

 

4.6%

Revenue Per Adjusted Patient Day

 

 

 

5.8%

 

 

 

 

 

Behavioral Health Care Services

 

 

 

 

Revenues

 

 

 

10.4%

Adjusted Admissions

 

 

 

-0.8%

Adjusted Patient Days

 

 

 

2.0%

Revenue Per Adjusted Admission

 

 

 

11.2%

Revenue Per Adjusted Patient Day

 

 

 

8.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UHS Consolidated

 

Three months ended

 

 

3/31/2024

 

3/31/2023

Revenues

 

$3,843,582

 

$3,467,518

EBITDA net of NCI

 

$525,927

 

$407,338

EBITDA Margin net of NCI

 

13.7%

 

11.7%

Adjusted EBITDA net of NCI

 

$525,777

 

$421,061

Adjusted EBITDA Margin net of NCI

 

13.7%

 

12.1%

 

 

 

 

Cash Flow From Operations

 

$396,406

 

$290,753

Capital Expenditures

 

$208,539

 

$168,752

Days Sales Outstanding

 

54

 

53

 

 

 

 

Debt

 

$4,861,805

 

$4,803,556

UHS' Shareholders Equity

 

$6,256,697

 

$6,012,108

Debt / Total Capitalization

 

43.7%

 

44.4%

Debt / EBITDA net of NCI (1)

 

2.65

 

2.94

Debt / Adjusted EBITDA net of NCI (1)

 

2.63

 

2.82

Debt / Cash From Operations (1)

 

3.54

 

5.71

 

 

 

 

 

(1) Latest 4 quarters.

 

 

 

 

 


Universal Health Services, Inc.

Acute Care Hospital Services

For the Three Months ended

March 31, 2024 and 2023

(in thousands)

(unaudited)

 

Same Facility Basis - Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2024

 

 

March 31, 2023

 

 

 

Amount

 

 

% of Net
Revenues

 

 

Amount

 

 

% of Net
Revenues

 

Net revenues

 

$

2,107,434

 

 

 

100.0

%

 

$

1,922,464

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

860,676

 

 

 

40.8

%

 

 

826,975

 

 

 

43.0

%

Other operating expenses

 

 

577,076

 

 

 

27.4

%

 

 

504,617

 

 

 

26.2

%

Supplies expense

 

 

347,095

 

 

 

16.5

%

 

 

325,371

 

 

 

16.9

%

Depreciation and amortization

 

 

90,120

 

 

 

4.3

%

 

 

93,007

 

 

 

4.8

%

Lease and rental expense

 

 

23,793

 

 

 

1.1

%

 

 

23,995

 

 

 

1.2

%

Subtotal-operating expenses

 

 

1,898,760

 

 

 

90.1

%

 

 

1,773,965

 

 

 

92.3

%

Income from operations

 

 

208,674

 

 

 

9.9

%

 

 

148,499

 

 

 

7.7

%

Interest expense, net

 

 

1,300

 

 

 

0.1

%

 

 

(577

)

 

 

(0.0

)%

Other (income) expense, net

 

 

(81

)

 

 

(0.0

)%

 

 

6,213

 

 

 

0.3

%

Income before income taxes

 

$

207,455

 

 

 

9.8

%

 

$

142,863

 

 

 

7.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

All Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2024

 

 

March 31, 2023

 

 

 

Amount

 

 

% of Net
Revenues

 

 

Amount

 

 

% of Net
Revenues

 

Net revenues

 

$

2,185,081

 

 

 

100.0

%

 

$

1,973,532

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

861,547

 

 

 

39.4

%

 

 

843,960

 

 

 

42.8

%

Other operating expenses

 

 

654,983

 

 

 

30.0

%

 

 

544,300

 

 

 

27.6

%

Supplies expense

 

 

347,004

 

 

 

15.9

%

 

 

328,060

 

 

 

16.6

%

Depreciation and amortization

 

 

90,312

 

 

 

4.1

%

 

 

93,326

 

 

 

4.7

%

Lease and rental expense

 

 

23,833

 

 

 

1.1

%

 

 

24,154

 

 

 

1.2

%

Subtotal-operating expenses

 

 

1,977,679

 

 

 

90.5

%

 

 

1,833,800

 

 

 

92.9

%

Income from operations

 

 

207,402

 

 

 

9.5

%

 

 

139,732

 

 

 

7.1

%

Interest expense, net

 

 

1,300

 

 

 

0.1

%

 

 

(577

)

 

 

(0.0

)%

Other (income) expense, net

 

 

634

 

 

 

0.0

%

 

 

7,013

 

 

 

0.4

%

Income before income taxes

 

$

205,468

 

 

 

9.4

%

 

$

133,296

 

 

 

6.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2023.

 

The All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

 

 


Universal Health Services, Inc.

Behavioral Health Care Services

For the Three Months ended

March 31, 2024 and 2023

(in thousands)

(unaudited)

 

Same Facility - Behavioral Health Care Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2024

 

 

March 31, 2023

 

 

 

Amount

 

 

% of Net
Revenues

 

 

Amount

 

 

% of Net
Revenues

 

Net revenues

 

$

1,616,312

 

 

 

100.0

%

 

$

1,463,723

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

868,876

 

 

 

53.8

%

 

 

808,938

 

 

 

55.3

%

Other operating expenses

 

 

312,285

 

 

 

19.3

%

 

 

278,722

 

 

 

19.0

%

Supplies expense

 

 

56,766

 

 

 

3.5

%

 

 

52,485

 

 

 

3.6

%

Depreciation and amortization

 

 

47,108

 

 

 

2.9

%

 

 

45,332

 

 

 

3.1

%

Lease and rental expense

 

 

11,446

 

 

 

0.7

%

 

 

10,598

 

 

 

0.7

%

Subtotal-operating expenses

 

 

1,296,481

 

 

 

80.2

%

 

 

1,196,075

 

 

 

81.7

%

Income from operations

 

 

319,831

 

 

 

19.8

%

 

 

267,648

 

 

 

18.3

%

Interest expense, net

 

 

1,027

 

 

 

0.1

%

 

 

1,210

 

 

 

0.1

%

Other (income) expense, net

 

 

(676

)

 

 

(0.0

)%

 

 

(576

)

 

 

(0.0

)%

Income before income taxes

 

$

319,480

 

 

 

19.8

%

 

$

267,014

 

 

 

18.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

All Behavioral Health Care Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2024

 

 

March 31, 2023

 

 

 

Amount

 

 

% of Net
Revenues

 

 

Amount

 

 

% of Net
Revenues

 

Net revenues

 

$

1,656,067

 

 

 

100.0

%

 

$

1,490,489

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

872,196

 

 

 

52.7

%

 

 

809,786

 

 

 

54.3

%

Other operating expenses

 

 

347,268

 

 

 

21.0

%

 

 

305,232

 

 

 

20.5

%

Supplies expense

 

 

56,924

 

 

 

3.4

%

 

 

52,488

 

 

 

3.5

%

Depreciation and amortization

 

 

47,872

 

 

 

2.9

%

 

 

45,619

 

 

 

3.1

%

Lease and rental expense

 

 

11,518

 

 

 

0.7

%

 

 

10,668

 

 

 

0.7

%

Subtotal-operating expenses

 

 

1,335,778

 

 

 

80.7

%

 

 

1,223,793

 

 

 

82.1

%

Income from operations

 

 

320,289

 

 

 

19.3

%

 

 

266,696

 

 

 

17.9

%

Interest expense, net

 

 

1,027

 

 

 

0.1

%

 

 

1,211

 

 

 

0.1

%

Other (income) expense, net

 

 

(676

)

 

 

(0.0

)%

 

 

(871

)

 

 

(0.1

)%

Income before income taxes

 

$

319,938

 

 

 

19.3

%

 

$

266,356

 

 

 

17.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


We believe that providing our results on a “Same Facility” basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2023.

 

The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

 


Universal Health Services, Inc.

 

Selected Hospital Statistics

 

For the Three Months Ended

 

March 31, 2024 and 2023

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AS REPORTED:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACUTE

 

 

BEHAVIORAL HEALTH

 

 

03/31/24

 

 

03/31/23

 

 

% change

 

 

03/31/24

 

 

03/31/23

 

 

% change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospitals owned and leased

 

 

27

 

 

 

27

 

 

 

0.0

%

 

 

333

 

 

 

331

 

 

 

0.6

%

Average licensed beds

 

 

6,657

 

 

 

6,798

 

 

 

-2.1

%

 

 

24,378

 

 

 

24,232

 

 

 

0.6

%

Average available beds

 

 

6,485

 

 

 

6,626

 

 

 

-2.1

%

 

 

24,278

 

 

 

24,132

 

 

 

0.6

%

Patient days

 

 

415,327

 

 

 

404,253

 

 

 

2.7

%

 

 

1,608,992

 

 

 

1,572,571

 

 

 

2.3

%

Average daily census

 

 

4,564.0

 

 

 

4,491.7

 

 

 

1.6

%

 

 

17,681.2

 

 

 

17,473.0

 

 

 

1.2

%

Occupancy-licensed beds

 

 

68.6

%

 

 

66.1

%

 

 

3.8

%

 

 

72.5

%

 

 

72.1

%

 

 

0.6

%

Occupancy-available beds

 

 

70.4

%

 

 

67.8

%

 

 

3.8

%

 

 

72.8

%

 

 

72.4

%

 

 

0.6

%

Admissions

 

 

83,581

 

 

 

80,126

 

 

 

4.3

%

 

 

119,930

 

 

 

120,560

 

 

 

-0.5

%

Length of stay

 

 

5.0

 

 

 

5.0

 

 

 

0.0

%

 

 

13.4

 

 

 

13.0

 

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inpatient revenue

 

$

12,910,102

 

 

$

11,401,491

 

 

 

13.2

%

 

$

2,754,684

 

 

$

2,627,990

 

 

 

4.8

%

Outpatient revenue

 

 

8,346,289

 

 

 

7,296,116

 

 

 

14.4

%

 

 

278,528

 

 

 

272,371

 

 

 

2.3

%

Total patient revenue

 

 

21,256,391

 

 

 

18,697,607

 

 

 

13.7

%

 

 

3,033,212

 

 

 

2,900,361

 

 

 

4.6

%

Other revenue

 

 

246,251

 

 

 

221,993

 

 

 

10.9

%

 

 

80,211

 

 

 

65,318

 

 

 

22.8

%

Gross revenue

 

 

21,502,642

 

 

 

18,919,600

 

 

 

13.7

%

 

 

3,113,423

 

 

 

2,965,679

 

 

 

5.0

%

Total deductions

 

 

19,317,561

 

 

 

16,946,068

 

 

 

14.0

%

 

 

1,457,356

 

 

 

1,475,190

 

 

 

-1.2

%

Net revenue

 

$

2,185,081

 

 

$

1,973,532

 

 

 

10.7

%

 

$

1,656,067

 

 

$

1,490,489

 

 

 

11.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SAME FACILITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACUTE

 

 

BEHAVIORAL HEALTH

 

 

 

03/31/24

 

 

03/31/23

 

 

% change

 

 

03/31/24

 

 

03/31/23

 

 

% change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hospitals owned and leased

 

 

27

 

 

 

27

 

 

 

0.0

%

 

 

331

 

 

 

331

 

 

 

0.0

%

Average licensed beds

 

 

6,657

 

 

 

6,610

 

 

 

0.7

%

 

 

24,124

 

 

 

24,106

 

 

 

0.1

%

Average available beds

 

 

6,485

 

 

 

6,438

 

 

 

0.7

%

 

 

24,024

 

 

 

24,006

 

 

 

0.1

%

Patient days

 

 

415,327

 

 

 

397,998

 

 

 

4.4

%

 

 

1,596,431

 

 

 

1,562,130

 

 

 

2.2

%

Average daily census

 

 

4,564.0

 

 

 

4,422.2

 

 

 

3.2

%

 

 

17,543.2

 

 

 

17,357.0

 

 

 

1.1

%

Occupancy-licensed beds

 

 

68.6

%

 

 

66.9

%

 

 

2.5

%

 

 

72.7

%

 

 

72.0

%

 

 

1.0

%

Occupancy-available beds

 

 

70.4

%

 

 

68.7

%

 

 

2.5

%

 

 

73.0

%

 

 

72.3

%

 

 

1.0

%

Admissions

 

 

83,581

 

 

 

79,063

 

 

 

5.7

%

 

 

118,897

 

 

 

119,615

 

 

 

-0.6

%

Length of stay

 

 

5.0

 

 

 

5.0

 

 

 

0.0

%

 

 

13.4

 

 

 

13.1

 

 

 

2.3

%