Universal Health Services, Inc. Reports 17% Increase in 2009 First Quarter Earnings from Continuing Operations Per Diluted Share
04/27/2009
Consolidated Results of Operations:
KING OF PRUSSIA, Pa.,
Net revenues increased 3% to
Acute Care Services:
At our acute care hospitals owned during both periods ("same facility basis"), inpatient admissions decreased 1.1% and patients days decreased 2.2% during the first quarter of 2009, as compared to the first quarter of 2008. On a same facility basis, net revenues at our acute care facilities increased 0.9% during the first quarter of 2009 as compared to the comparable prior year quarter. Net revenue per adjusted admission and adjusted patient day at these facilities increased 0.9% and 2.0%, respectively, during the first quarter of 2009 over the comparable prior year quarter. The operating margin at our acute care hospitals owned during both periods increased to 17.5% during the first quarter of 2009 as compared to 16.2% during the first quarter of 2008.
We provide care to patients who meet certain financial or economic
criteria without charge or at amounts substantially less than our established
rates. Because we do not pursue collection of amounts determined to qualify as
charity care, they are not reported in net revenues or in accounts receivable,
net. Our acute care hospitals provided charity care and uninsured discounts,
based on charges at established rates, amounting to
Behavioral Health Care Services:
At our behavioral health facilities, on a same facility basis, inpatient admissions increased 1.1% and patient days decreased 1.4% during the first quarter of 2009 as compared to the first quarter of 2008. On a same facility basis, net revenues at our behavioral health facilities increased 2.8% during the first quarter of 2009 as compared to the comparable prior year quarter. Net revenue per adjusted patient day at these facilities increased 4.8% during the first quarter of 2009 over the comparable prior year quarter. The operating margin at our behavioral health facilities owned during both periods was 25.0% during the first quarter of 2009 as compared to 23.7% during the first quarter of 2008.
Conference Call Information:
We will hold a conference call for investors and analysts at
General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:
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
We believe that operating income, operating margin, adjusted income from
continuing operations, adjusted income from continuing operations per diluted
share, adjusted net income, adjusted net income per diluted share and earnings
before interest, taxes, depreciation and amortization ("EBITDA"), which are
non-GAAP financial measures ("GAAP" is Generally Accepted Accounting
Principles in the
Universal Health Services, Inc. ------------------------------- Consolidated Statements of Income --------------------------------- (in thousands, except per share amounts) (unaudited) Three months ended March 31, --------------- 2009 2008 ---- ---- Net revenues $1,312,419 $1,277,976 Operating charges: Salaries, wages and benefits 541,297 541,575 Other operating expenses 273,221 248,645 Supplies expense 173,967 179,239 Provision for doubtful accounts 118,978 119,797 Depreciation and amortization 51,134 46,743 Lease and rental expense 17,072 17,555 ------ ------ 1,175,669 1,153,554 --------- --------- Income from continuing operations before interest expense and income taxes 136,750 124,422 Interest expense, net 12,638 13,479 ------ ------ Income from continuing operations before income taxes 124,112 110,943 Provision for income taxes 42,078 37,611 ------ ------ Income from continuing operations 82,034 73,332 Income from continuing operations attributable to minority interests 14,493 13,279 ------ ------ Income from continuing operations attributable to UHS 67,541 60,053 Income from discontinued operations, net of income tax expense (a) - 1,610 ------- ------- Net income attributable to UHS $67,541 $61,663 ======= ======= Basic earnings per share attributable to UHS (b) From continuing operations $1.37 $1.17 From discontinued operations - 0.03 ----- ---- Total basic earnings per share $1.37 $1.20 ===== ===== Diluted earnings per share attributable to UHS (b) From continuing operations $1.37 $1.17 From discontinued operations - 0.03 ----- ---- Total diluted earnings per share $1.37 $1.20 ===== ===== Universal Health Services, Inc. ------------------------------- Footnotes to Consolidated Statements of Income ---------------------------------------------- (in thousands, except per share amounts) (unaudited) Three months ended March 31, 2009 2008 ---- ---- (a) Calculation of income from discontinued operations, net of income tax: Income from discontinued operations, pre-tax - $2,609 Income tax - (999) Income from discontinued operations, net of taxes - $1,610 ====== ====== (b) Earnings per share calculation: Basic: ------ Income from continuing operations attributable to UHS $67,541 $60,053 Less: Net income attributable to unvested restricted share grants (314) (259) ---- ---- Income from continuing operations - basic 67,227 59,794 Income from discontinued operations - 1,610 ------ ----- Net income attributable to UHS - basic $67,227 $61,404 ======= ======= Weighted average number of common shares - basic 49,206 51,263 ------ ------ Basic earnings per share attributable to UHS: From continuing operations $1.37 $1.17 From discontinued operations - 0.03 ---- ---- Total basic earnings per share $1.37 $1.20 ===== ===== Diluted: -------- Income from continuing operations attributable to UHS $67,541 $60,053 Less: Net income attributable to unvested restricted share grants (314) (259) ---- ---- Income from continuing operations - diluted 67,227 59,794 Income from discontinued operations - 1,610 ----- ----- Net income attributable to UHS - diluted $67,227 $61,404 ======= ======= Weighted average number of common shares 49,206 51,263 Add: Other share equivalents - 17 ------ ------ Weighted average number of common shares and equiv. - diluted 49,206 51,280 ------ ------ Diluted earnings per share attributable to UHS: From continuing operations $1.37 $1.17 From discontinued operations - 0.03 ---- ---- Total diluted earnings per share $1.37 $1.20 ===== ===== Universal Health Services, Inc. ------------------------------- Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule") ------------------------------------------------------------- For the three months ended March 31, 2009 and 2008 -------------------------------------------------- (in thousands, except per share amounts) (unaudited) Three months Three months ended ended March 31, 2009 March 31, 2008 -------------- -------------- Net revenues $1,312,419 100.0% $1,277,976 100.0% Operating charges: Salaries, wages and benefits 541,297 41.2% 541,575 42.4% Other operating expenses 273,221 20.8% 248,645 19.5% Supplies expense 173,967 13.3% 179,239 14.0% Provision for doubtful accounts 118,978 9.1% 119,797 9.4% ------- --- ------- --- 1,107,463 84.4% 1,089,256 85.2% --------- ---- --------- ---- Operating income/margin 204,956 15.6% 188,720 14.8% Lease and rental expense 17,072 17,555 Income from continuing operations attributable to minority interests 14,493 13,279 ------ ------ Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA") 173,391 157,886 Depreciation and amortization 51,134 46,743 Interest expense, net 12,638 13,479 ------ ------ Income before income taxes 109,619 97,664 Provision for income taxes 42,078 37,611 ------ ------ Income from continuing operations attributable to UHS 67,541 60,053 Income from discontinued operations, net of income taxes - 1,610 ------- ------- Net income attributable to UHS $67,541 $61,663 ======= ======= Universal Health Services, Inc. ------------------------------- Condensed Consolidated Balance Sheets ------------------------------------- (in thousands) (unaudited) March 31, December 31, 2009 2008 ---- ---- Assets Current assets: Cash and cash equivalents $9,423 $5,460 Accounts receivable, net 652,854 625,437 Supplies 77,022 76,043 Other current assets 32,392 26,375 Deferred income taxes 39,249 34,522 Current assets held for sale 21,580 21,580 ------ ------ Total current assets 832,520 789,417 ------- ------- Property and equipment 3,446,127 3,355,974 Less: accumulated depreciation (1,300,845) (1,255,682) ---------- ---------- 2,145,282 2,100,292 --------- --------- Other assets: Goodwill 733,882 732,937 Deferred charges 11,440 10,428 Other 112,193 109,388 ------- ------- $3,835,317 $3,742,462 ========== ========== Liabilities and Stockholders' Equity Current liabilities: Current maturities of long-term debt $8,725 $8,708 Accounts payable and accrued liabilities 591,427 542,008 Federal and state taxes 44,211 10,409 ------ ------ Total current liabilities 644,363 561,125 ------- ------- Other noncurrent liabilities 403,325 407,652 Long-term debt 938,844 990,661 Deferred income taxes 11,267 12,439 UHS common stockholders' equity 1,596,544 1,543,850 Minority interest 240,974 226,735 ------- ------- Total equity 1,837,518 1,770,585 ---------- ---------- $3,835,317 $3,742,462 ========== ========== Universal Health Services, Inc. ------------------------------- Consolidated Statements of Cash Flows ------------------------------------- (in thousands) (unaudited) Three months ended March 31, -------------- 2009 2008 ---- ---- Cash Flows from Operating Activities: Net income $67,541 $61,663 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation & amortization 51,135 47,370 Changes in assets & liabilities, net of effects from acquisitions and dispositions: Accounts receivable (44,894) (63,970) Construction management and other receivable 17,477 383 Accrued interest 10,491 8,999 Accrued and deferred income taxes 28,062 31,301 Other working capital accounts 6,581 27,777 Other assets and deferred charges (1,902) 1,351 Other (1,073) (1,714) Minority interest in earnings of consolidated entities, net of distributions 14,239 12,906 Accrued insurance expense, net of commercial premiums paid 20,014 19,376 Payments made in settlement of self-insurance claims (15,669) (13,766) ------- ------- Net cash provided by operating activities 152,002 131,676 ------- ------- Cash Flows from Investing Activities: Property and equipment additions, net of disposals (78,219) (81,751) Proceeds received from sale of assets - 2,235 ----- ----- Net cash used in investing activities (78,219) (79,516) ------- ------- Cash Flows from Financing Activities: Reduction of long-term debt (51,800) - Additional borrowings - 33,180 Repurchase of common shares (14,725) (89,799) Dividends paid (3,962) (4,072) Issuance of common stock 667 1,093 --- ----- Net cash used in financing activities (69,820) (59,598) ------- ------- Increase (decrease) in cash and cash equivalents 3,963 (7,438) Cash and cash equivalents, beginning of period 5,460 16,354 ----- ------ Cash and cash equivalents, end of period $9,423 $8,916 ====== ====== Supplemental Disclosures of Cash Flow Information: Interest paid $3,966 $6,407 ====== ====== Income taxes paid, net of refunds $13,784 $7,642 ======= ====== Universal Health Services, Inc. Supplemental Statistical Information (unaudited) % Change Quarter Ended Same Facility: 3/31/2009 -------------- --------- Acute Care Hospitals -------------------- Revenues 0.9% Adjusted Admissions 0.0% Adjusted Patient Days -1.1% Revenue Per Adjusted Admission 0.9% Revenue Per Adjusted Patient Day 2.0% Behavioral Health Hospitals --------------------------- Revenues 2.8% Adjusted Admissions 0.5% Adjusted Patient Days -1.9% Revenue Per Adjusted Admission 2.3% Revenue Per Adjusted Patient Day 4.8% UHS Consolidated First Quarter Ended ---------------- ------------------- 3/31/2009 3/31/2008 --------- --------- Revenues $1,312,419 $1,277,976 EBITDA (1) $173,391 $157,886 EBITDA Margin (1) 13.2% 12.4% Cash Flow From Operations $152,002 $131,676 Days Sales Outstanding 45 48 Capital Expenditures $78,219 $81,751 Debt 947,569 1,045,082 Shareholders Equity 1,596,544 1,487,212 Debt / Total Capitalization 37.2% 41.3% Debt / EBITDA (2) 1.64 1.98 Debt / Cash From Operations (2) 1.96 2.74 Acute Care EBITDAR Margin (3) 17.5% 16.2% Behavioral Health EBITDAR Margin (3) 24.3% 23.1% (1) Net of Minority Interest (2) Latest 4 quarters (3) Before Corporate overhead allocation and minority interest UNIVERSAL HEALTH SERVICES, INC. SELECTED HOSPITAL STATISTICS MARCH 31, 2009 AS REPORTED: For the three months ended Acute (1) Behavioral Health 03/31/09 03/31/08 % 03/31/09 03/31/08 % -------- -------- - -------- -------- - Hospitals owned and leased 21 23 -8.7% 82 83 -1.2% Average licensed beds 5,465 5,453 0.2% 7,794 7,596 2.6% Patient days 307,278 314,241 -2.2% 512,934 529,955 -3.2% Average daily census 3,414.2 3,453.2 -1.1% 5,699.3 5,823.7 -2.1% Occupancy-licensed beds 62.5% 63.3% -1.3% 73.1% 76.7% -4.6% Admissions 68,198 68,956 -1.1% 33,961 32,882 3.3% Length of stay 4.5 4.6 -1.1% 15.1 16.1 -6.3% Inpatient revenue $2,580,139 $2,439,285 5.8% $503,681 $488,733 3.1% Outpatient revenue 995,699 905,416 10.0% 68,128 66,588 2.3% Total patient revenue 3,575,838 3,344,701 6.9% 571,809 555,321 3.0% Other revenue 17,675 18,173 -2.7% 7,909 8,158 -3.1% Gross hospital revenue 3,593,513 3,362,874 6.9% 579,718 563,479 2.9% Total deductions 2,633,799 2,411,605 9.2% 257,565 250,621 2.8% Net hospital revenue $959,714 $951,269 0.9% $322,153 $312,858 3.0% SAME FACILITY: Acute (2) Behavioral Health (3) 03/31/09 03/31/08 % 03/31/09 03/31/08 % -------- -------- - -------- -------- - Hospitals owned and leased 21 21 0.0% 79 79 0.0% Average licensed beds 5,465 5,453 0.2% 7,581 7,405 2.4% Patient days 307,278 314,241 -2.2% 507,195 514,159 -1.4% Average daily census 3,414.2 3,453.2 -1.1% 5,635.5 5,650.1 -0.3% Occupancy-licensed beds 62.5% 63.3% -1.3% 74.3% 76.3% -2.6% Admissions 68,198 68,956 -1.1% 33,153 32,785 1.1% Length of stay 4.5 4.6 -1.1% 15.3 15.7 -2.4% (1) Our three acute care hospitals located inNew Orleans and Discontinued operations are excluded in current and prior years. (2) Central Montgomery is excluded in both current and prior years. (3)Central Florida , Coastal Behavioral, Summit Ridge and Shenandoah Valley are excluded in both current and prior years. Broad Horizons, Highlander RTC, Midwest Youth and Vista Group Homes are excluded in both current and prior years.
SOURCE
Steve Filton, Chief Financial Officer of
/Web Site: http://www.uhsinc.com.
(UHS UHT)