Universal Health Services, Inc. Reports Second Quarter EPS Growth of 35%
07/17/2002
Patient admissions to the Company's hospitals continue to grow rapidly. For facilities owned in both the three month periods ended June 30, 2002 and June 30, 2001 admissions to the Company's acute care hospitals, excluding the hospitals located in France, increased 6.3% while admissions to the Company's behavioral health facilities owned in both periods increased 7.2%.
The Company's operating margin, defined as earnings before interest, tax, depreciation and amortization, rental, and minority interest expense was 16.0% in the three month period ended June 30, 2002, compared to 15.4% in the same period of the prior year. Operating margins for the Company's acute care hospitals owned in both the three month periods ended June 30, 2002 and June 30, 2001, increased to 17.8% from 17.5%. Operating margins for the Company's behavioral health hospitals owned in both periods increased to 20.9% from 20.3%. The Company's consolidated pre-tax income as a percentage of net revenue was 8.7% in the three month period ended June 30, 2002 compared to 7.1% in the same period of 2001, due to improvement in provision for doubtful accounts, interest expense, and depreciation and amortization expense.
The Company currently has five major acute care hospital construction projects, which will increase current bed capacity by approximately 12% by the end of 2003. These projects continue on schedule and on budget. The new 371- bed George Washington University Hospital will open for patient service on August 23, 2002. The 56-bed addition to Auburn Regional Medical Center will open in late December. Both the new 176-bed Spring Valley Medical Center in Las Vegas and the 90-bed expansion of Northwest Texas Hospital in Amarillo, Texas will open in the third quarter of 2003. The new 120-bed Lakewood Ranch Hospital in Manatee County, Florida will open in the fourth quarter of 2003. These projects will provide needed service capacity and quality of care improvements and be significant sources of growth for the Company.
Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory surgery and radiation centers nationwide, in Puerto Rico and in France. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT).
Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filings with the Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes.
For additional information on the Company, visit our web site: http://www.uhsinc.com.
Universal Health Services, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
Three months Six months
ended June 30, ended June 30,
2002 2001 2002 2001
Net revenues $805,945 $718,596 $1,610,316 $1,395,545
Operating charges:
Salaries, wages and
benefits 321,595 282,278 641,302 550,560
Other operating expenses 198,296 169,876 390,192 320,782
Supplies expense 103,857 92,979 207,365 182,347
Provision for doubtful
accounts 52,845 62,678 110,739 117,905
Depreciation and
amortization 30,900 32,248 60,308 62,043
Lease and rental expense 15,290 13,470 30,480 26,110
Interest expense, net 8,153 10,506 17,117 18,962
730,936 664,035 1,457,503 1,278,709
Income before minority
interests, effect of foreign
exchange and derivative
transactions and income
taxes 75,009 54,561 152,813 116,836
Minority interests in earnings
of consolidated entities 4,688 3,699 10,561 7,624
Losses (gains) on foreign
exchange and derivative
transactions 249 (26) 15 1,401
Income before income taxes 70,072 50,888 142,237 107,811
Provision for income taxes 25,725 18,498 52,217 39,250
Net income $44,347 $32,390 $90,020 $68,561
Earnings per common share -
basic $0.74 $0.54 $1.50 $1.15
Earnings per common share -
diluted $0.69 $0.51 $1.40 $1.08
Weighted average number of
common shares - basic 59,934 59,918 59,898 59,873
Weighted average number of
common share equivalents 7,320 7,306 7,253 7,313
Weighted average number of
common shares and equiv. -
diluted 67,254 67,224 67,151 67,186
EARNINGS PER SHARE CALCULATION
Net income $44,347 $32,390 $90,020 $68,561
Add: Debenture interest, net
of taxes 2,091 2,049 4,183 4,019
Adjusted net income $46,438 $34,439 $94,203 $72,580
Weighted average number of
common shares - basic 59,934 59,918 59,898 59,873
Add: Shares for conversion of
convertible debentures 6,578 6,578 6,578 6,578
Other share
equivalents 742 728 675 735
Weighted average number of
common shares and equiv. -
diluted 67,254 67,224 67,151 67,186
Earnings per common share -
diluted $0.69 $0.51 $1.40 $1.08
Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2002 2001
Assets:
Cash and cash equivalents $14,820 $22,848
Accounts receivable, net 464,987 418,083
Other current assets 128,653 107,331
Property, plant and equipment, net 1,127,685 1,031,205
Other assets 472,745 535,117
$2,208,890 $2,114,584
Liabilities and Stockholders' Equity:
Current portion of long-term debt $2,641 $2,436
Other current liabilities 344,124 320,280
Other noncurrent liabilities 119,366 110,385
Minority interest 127,862 125,914
Long-term debt 688,018 718,830
Deferred income taxes 27,471 28,839
Stockholders' equity 899,408 807,900
$2,208,890 $2,114,584
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
FOR THE THREE MONTHS ENDED
JUNE 30, 2002
AS REPORTED:
ACUTE (A)
6/30/02 6/30/01 %
Hospitals owned and leased 26 24 8.3%
Average licensed beds 5,846 5,475 6.8%
Patient days 300,761 279,070 7.8%
Average daily census 3,305.1 3,066.7 7.8%
Occupancy-licensed beds 56.5% 56.0% 0.9%
Admissions 65,605 59,001 11.2%
Length of stay 4.6 4.7 -3.1%
Inpatient revenue $1,242,178 $993,180 25.1%
Outpatient revenue 456,875 363,231 25.8%
Total patient revenue 1,699,053 1,356,411 25.3%
Other revenue 16,187 14,054 15.2%
Gross hospital revenue 1,715,240 1,370,465 25.2%
Total deductions 1,094,852 823,257 33.0%
Net hospital revenue $620,388 $547,208 13.4%
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
FOR THE THREE MONTHS ENDED
JUNE 30, 2002
AS REPORTED:
BEHAVIORAL HEALTH
6/30/02 6/30/01 %
Hospitals owned and leased 37 37 0.0%
Average licensed beds 3,749 3,735 0.4%
Patient days 255,016 244,080 4.5%
Average daily census 2,802.4 2,682.2 4.5%
Occupancy-licensed beds 74.7% 71.8% 4.1%
Admissions 21,176 19,760 7.2%
Length of stay 12.0 12.4 -2.5%
Inpatient revenue $248,255 $232,652 6.7%
Outpatient revenue 39,450 38,111 3.5%
Total patient revenue 287,705 270,763 6.3%
Other revenue 9,495 10,160 -6.5%
Gross hospital revenue 297,200 280,923 5.8%
Total deductions 153,777 140,770 9.2%
Net hospital revenue $143,423 $140,153 2.3%
SAME STORE:
ACUTE (A) (B) BEHAVIORAL HEALTH (C)
6/30/02 6/30/01 % 6/30/02 6/30/01 %
Hospitals owned and
leased 24 24 0.0% 37 37 0.0%
Average licensed
beds 5,579 5,475 1.9% 3,749 3,735 0.4%
Patient days 287,851 279,079 3.1% 255,018 244,080 4.5%
Average daily
census 3,163.2 3,066.8 3.1% 2,802.4 2,682.2 4.5%
Occupancy-licensed
beds 56.7% 56.0% 1.2% 74.8% 71.8% 4.1%
Admissions 62,704 59,001 6.3% 21,176 19,760 7.2%
Length of stay 4.6 4.7 -2.9% 12.0 12.4 -2.5%
(A) Does not include hospitals located in France.
(B) Central Montgomery and Lancaster are excluded in both current and
prior years. Rancho Springs is included in both current and prior
year from February 1st through year to date.
(C) Westwood Lodge, Pembroke, San Juan Capestrano and the facilities
acquired from Charter are included in both the current and prior
year from February 1st through year to date.
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
FOR THE SIX MONTHS ENDED
JUNE 30, 2002
AS REPORTED: ACUTE (A)
6/30/02 6/30/01 %
Hospitals owned and leased 26 24 8.3%
Average licensed beds 5,846 5,436 7.5%
Patient days 624,065 566,367 10.2%
Average daily census 3,447.9 3,129.1 10.2%
Occupancy-licensed beds 59.0% 57.6% 2.5%
Admissions 132,465 119,116 11.2%
Length of stay 4.7 4.8 -0.9%
Inpatient revenue $2,528,504 $2,011,533 25.7%
Outpatient revenue 881,418 705,257 25.0%
Total patient revenue 3,409,922 2,716,790 25.5%
Other revenue 31,403 27,486 14.3%
Gross hospital revenue 3,441,325 2,744,276 25.4%
Total deductions 2,197,009 1,668,491 31.7%
Net hospital revenue $1,244,316 $1,075,785 15.7%
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
FOR THE SIX MONTHS ENDED
JUNE 30, 2002
AS REPORTED: BEHAVIORAL HEALTH
6/30/02 6/30/01 %
Hospitals owned and leased 37 37 0.0%
Average licensed beds 3,749 3,717 0.9%
Patient days 503,984 477,095 5.6%
Average daily census 2,784.4 2,635.9 5.6%
Occupancy-licensed beds 74.3% 70.9% 4.7%
Admissions 42,427 39,508 7.4%
Length of stay 11.9 12.1 -1.6%
Inpatient revenue $490,634 $460,515 6.5%
Outpatient revenue 77,750 74,135 4.9%
Total patient revenue 568,384 534,650 6.3%
Other revenue 19,237 20,166 -4.6%
Gross hospital revenue 587,621 554,816 5.9%
Total deductions 302,077 282,085 7.1%
Net hospital revenue $285,544 $272,731 4.7%
SAME STORE:
ACUTE (A) (B) BEHAVIORAL HEALTH (C)
6/30/02 6/30/01 % 6/30/02 6/30/01 %
Hospitals owned and
leased 24 24 0.0% 37 37 0.0%
Average licensed
beds 5,563 5,420 2.6% 3,692 3,678 0.4%
Patient days 594,567 565,480 5.1% 496,085 475,505 4.3%
Average daily
census 3,284.9 3,124.2 5.1% 2,740.8 2,627.1 4.3%
Occupancy-licensed
beds 59.0% 57.6% 2.4% 74.2% 71.4% 3.9%
Admissions 125,863 118,791 6.0% 41,724 39,408 5.9%
Length of stay 4.7 4.8 -0.8% 11.9 12.1 -1.5%
(A) Does not include hospitals located in France.
(B) Central Montgomery and Lancaster are excluded in both current and
prior years. Rancho Springs is included in both current and prior
year from February 1st through year to date.
(C) Westwood Lodge, Pembroke, San Juan Capestrano and the facilities
acquired from Charter are included in both the current and prior
year from February 1st through year to date.
Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
% Change % Change
Quarter Ended 6 mos. ended
Same Store: 06/30/2002 06/30/2002
Acute Care Hospitals
Revenues 8.0% 9.7%
Adjusted Admissions 6.6% 5.6%
Adjusted Patient Days 4.0% 5.2%
Revenue Per Adjusted Admission 1.3% 3.9%
Revenue Per Adjusted Patient Day 3.9% 4.3%
Behavioral Health Hospitals
Revenues 2.3% 3.1%
Adjusted Admissions 6.3% 4.9%
Adjusted Patient Days 3.2% 3.0%
Revenue Per Adjusted Admission -3.7% -1.7%
Revenue Per Adjusted Patient Day -0.9% 0.1%
UHS Consolidated First Quarter Ended Six months Ended
06/30/2002 06/30/2001 06/30/2002 06/30/2001
Revenues $805,945 $718,596 $1,610,316 $1,395,545
EBITDA (A) $109,374 $93,616 $219,677 $190,217
EBITDA Margin (A) 13.6% 13.0% 13.6% 13.6%
Cash Flow From Operations $72,600 $84,147 $134,066 $152,801
Days Sales Outstanding 53 51 52 53
Capital Expenditures $56,441 $38,854 $97,152 $69,408
Debt (net of cash) - - $675,839 $640,112
Shareholders Equity - - $899,408 $782,456
Debt / Total Capitalization - - 42.9% 45.0%
Debt / EBITDA (B) - - 1.69 1.91
Debt / Cash From Operations (B) - - 2.42 2.77
Acute Care EBITDAR Margin (C) 17.5% 17.5% 17.5% 18.5%
Behavioral Health EBITDAR
Margin (C) 20.9% 20.3% 20.5% 20.0%
(A) Net of Minority Interest
(B) Latest 4 quarters
(C) Before Corporate overhead allocation and minority interest
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SOURCE Universal Health Services, Inc.
CONTACT: Kirk E. Gorman, Chief Financial Officer of Universal Health
Services, +1-610-768-3300
/Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/916225.html
URL: http://www.uhsinc.com
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