================================================================================ FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 16, 2003 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) ================================================================================
Item 7. Financial Statements and Exhibits. (c) Exhibits. 99.1 Universal Health Services, Inc. Press Release dated April 16, 2003 Item 9. Regulation FD Disclosure On April 16, 2003, Universal Health Services, Inc. made its first quarter earnings release. A copy of the company's press release is furnished as an exhibit to this Form 8-K and is incorporated herein by reference. The information contained in this report on Form 8-K is being furnished pursuant to Item 12 under Item 9 of Form 8-K as directed by the U.S. Securities and Exchange Commission in Release No. 34-47583
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/ Alan B. Miller ---------------------- Name: Alan B. Miller Title: President and Chief Executive Officer By: /s/ Steve Filton -------------------- Name: Steve Filton Title: Vice President, Controller and Chief Financial Officer Date: April 17, 2003 Exhibit Index ------------- Exhibit No. Exhibit 99.1 Press release, dated April 16, 2003
EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACT: Steve Filton April 16, 2003 Chief Financial Officer (610) 768-3300 UNIVERSAL HEALTH SERVICES, INC. REPORTS 18% FIRST QUARTER EPS GROWTH KING OF PRUSSIA, PA -- Universal Health Services, Inc. (NYSE: UHS) announced today that its earnings per share (diluted) for the three-month period ended March 31, 2003 were $.84, an 18% increase from the earnings per share recorded in the same period of the prior year. Net revenues and net income for the quarter were $894.8 million and $52.8 million, increases of 11% and 16%, respectively, from the results of the same period in the prior year. At March 31, 2003, the Company's balance sheet debt, net of cash, was approximately $709 million and its shareholders' equity was approximately $950 million. On a same facility basis, patient admissions to the Company's acute care hospitals located in the U.S. and Puerto Rico and the Company's behavioral health care facilities, increased approximately 2% during the first quarter of 2003 as compared to the comparable prior year quarter. For the Company's acute care hospitals owned in both periods located in the U.S. and Puerto Rico, revenues and revenue per adjusted patient day each increased 8.4% during the 2003 first quarter as compared to the prior year quarter. For the Company's behavioral health hospitals owned in both periods, revenues increased 4.8% and revenue per adjusted patient day increased 1.7%. The Company's operating margin (as calculated on the attached schedule of Supplemental Consolidated Income Statement Information), increased to 16.6% in the three-month period ended March 31, 2003 as compared to 16.3% in the same period of the prior year. Managed care pricing remained strong in the quarter. Operating margins for the Company's acute care hospitals located in the U.S. and Puerto Rico owned in both the three-month periods ended March 31, 2003 and March 31, 2002, increased to 18.3% from 17.7%. Operating margins for the Company's behavioral health hospitals owned in both periods increased to 21.4% during the first quarter of 2003 from 20.5% during the prior year quarter. During the quarter, the Company acquired a 108-bed behavioral health system in Anchorage, Alaska and two hospitals located in France. The Company expects to complete
construction of its new 176-bed hospital in Las Vegas and a 90-bed addition to its Northwest Texas Hospital in Amarillo, Texas later in 2003. There will be a conference call for investors at 9:00AM ET on Thursday, April 17, 2003. The dial-in number is 1-877-648-7971. Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals, 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. The Company uses operating income and/or operating margin, which are commonly used indicators within the health care industry, as analytical indicators for purposes of assessing operating performance of its facilities. Operating income and operating margin should not be considered as a measure of financial performance under generally accepted accounting principles, and the items excluded from operating income and operating margin are significant components in understanding and assessing financial performance. Because operating income and operating margin are not measurements determined in accordance with generally accepted accounting principles and are thus susceptible to varying calculations, operating income and operating margin as presented may not be comparable to other similarly titled measures of other companies. For additional information on the Company, visit our web site: http://www.uhsinc.com. (more)
Universal Health Services, Inc. Consolidated Statements of Income (in thousands, except per share amounts) Unaudited Three months ended March 31, ------------------------------ 2003 2002 ---- ---- Net revenues $ 894,808 $ 804,371 Operating charges: Salaries, wages and benefits 355,782 319,707 Other operating expenses 203,910 191,896 Supplies expense 120,737 103,508 Provision for doubtful accounts 65,420 57,894 Depreciation and amortization 34,537 29,408 Lease and rental expense 15,821 15,190 Interest expense, net 9,855 8,964 Gain on foreign exchange and derivative transactions (6) (234) ------------ ------------ 806,056 726,333 ------------ ------------ Income before minority interests and income taxes 88,752 78,038 Minority interests in earnings of consolidated entities 5,030 5,873 ------------ ------------ Income before income taxes 83,722 72,165 Provision for income taxes 30,932 26,492 ------------ ------------ Net income $ 52,790 $ 45,673 ============ ============ Earnings per common share - basic $ 0.91 $ 0.76 ============ ============ Earnings per common share - diluted $ 0.84 $ 0.71 ============ ============ Weighted average number of common shares - basic 58,277 59,862 Weighted average number of common share equivalents 7,319 7,186 ------------ ------------ Weighted average number of common shares and equiv. - diluted 65,596 67,048 ============ ============ EARNINGS PER SHARE CALCULATION Net income $ 52,790 $ 45,673 Add: Debenture interest, net of taxes 2,177 2,092 ------------ ------------ Adjusted net income $ 54,967 $ 47,765 Weighted average number of common shares - basic 58,277 59,862 Add: Shares for conversion of convertible debentures 6,577 6,577 Other share equivalents 742 609 ------------ ------------ Weighted average number of common shares and equiv. - diluted 65,596 67,048 Earnings per common share - diluted $ 0.84 $ 0.71 ============ ============
Universal Health Services, Inc. Condensed Consolidated Balance Sheets (in thousands) Unaudited March 31, December 31, 2003 2002 -------------- -------------- Assets: Cash and cash equivalents $ 32,416 $ 17,750 Accounts receivable, net 510,149 474,763 Other current assets 112,013 114,063 Property, plant and equipment, net 1,222,171 1,167,287 Other assets 564,279 549,366 -------------- -------------- $ 2,441,028 $ 2,323,229 ============== ============== Liabilities and Stockholders' Equity: Current portion of long-term debt $ 11,092 $ 8,253 Other current liabilities 377,658 362,160 Other noncurrent liabilities 219,310 206,238 Minority interest 139,070 134,339 Long-term debt 730,600 680,514 Deferred income taxes 13,309 14,266 Stockholders' equity 949,989 917,459 -------------- -------------- $ 2,441,028 $ 2,323,229 ============== ==============
Universal Health Services, Inc. Supplemental Consolidated Income Statement Information (in thousands) unaudited Three months ended Three months ended March 31, 2003 March 31, 2002 -------------- -------------- Net revenues $894,808 100.0% $804,371 100.0% Operating charges: Salaries, wages and benefits 355,782 39.8% 319,707 39.7% Other operating expenses 203,910 22.8% 191,896 23.9% Supplies expense 120,737 13.5% 103,508 12.9% Provision for doubtful accounts 65,420 7.3% 57,894 7.2% ---------- -------- ---------- -------- 745,849 83.4% 673,005 83.7% ---------- -------- ---------- -------- Operating income/margin 148,959 16.6% 131,366 16.3% Depreciation and amortization 34,537 29,408 Lease and rental expense 15,821 15,190 Interest expense, net 9,855 8,964 Gain on foreign exchange and derivative transactions (6) (234) Minority interests in earnings of consolidated entities 5,030 5,873 ---------- ---------- Income before income taxes 83,722 72,165 Provision for income taxes 30,932 26,492 ---------- ---------- Net income $ 52,790 $ 45,673 ========== ==========
Universal Health Services, Inc. Supplemental Statistical Information (unaudited) % Change Quarter Ended Same Facility Basis 03/31/2003 ------------- Acute Care Hospitals - -------------------- Revenues 8.4% Adjusted Admissions 2.7% Adjusted Patient Days 0.0% Revenue Per Adjusted Admission 5.6% Revenue Per Adjusted Patient Day 8.4% Behavioral Health Hospitals - --------------------------- Revenues 4.8% Adjusted Admissions 1.3% Adjusted Patient Days 3.1% Revenue Per Adjusted Admission 3.4% Revenue Per Adjusted Patient Day 1.7% - -------------------------------------------------------------------------------- UHS Consolidated First Quarter Ended ------------------------------ 03/31/2003 03/31/2002 ---------- ---------- Revenues $894,808 $804,371 EBITDA (1) $128,108 $110,303 EBITDA Margin (1) 14.3% 13.7% Cash Flow From Operations $ 80,766 $ 56,873 Days Sales Outstanding 51 54 Capital Expenditures $ 40,342 $ 40,711 Debt (net of cash) $709,276 $689,660 Shareholders Equity $949,989 $853,542 Debt / Total Capitalization 42.7% 44.7% Debt / EBITDA (2) 1.57 1.84 Debt / Cash From Operations (2) 2.00 2.37 Acute Care EBITDAR Margin (3) 18.3% 17.7% Behavioral Health EBITDAR Margin (3) 21.4% 20.5% (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, 2003 AS REPORTED: For the three months ended Acute (1) Behavioral Health 03/31/03 03/31/02 % 03/31/03 03/31/02 % -------- -------- - -------- -------- - Hospitals owned and leased 25 26 -3.8% 39 37 5.4% Average licensed beds 5,735 5,846 -1.9% 3,871 3,749 3.3% Patient days 320,892 323,304 -0.7% 268,090 248,968 7.7% Average daily census 3,565.5 3,592.3 -0.7% 2,978.8 2,766.3 7.7% Occupancy-licensed beds 62.2% 61.4% 1.2% 77.0% 73.8% 4.3% Admissions 68,115 66,860 1.9% 21,954 21,251 3.3% Length of stay 4.7 4.8 -2.6% 12.2 11.7 4.2% Inpatient revenue $1,509,452 $1,286,326 17.3% $273,277 $242,379 12.7% Outpatient revenue 510,743 424,543 20.3% 38,573 38,300 0.7% Total patient revenue 2,020,195 1,710,869 18.1% 311,850 280,679 11.1% Other revenue 11,006 15,216 -27.7% 8,601 9,742 -11.7% Gross hospital revenue 2,031,201 1,726,085 17.7% 320,451 290,421 10.3% Total deductions 1,354,963 1,102,157 22.9% 167,704 148,300 13.1% Net hospital revenue $ 676,238 $ 623,928 8.4% $152,747 $142,121 7.5% SAME FACILITY: For the three months ended Acute (1) Behavioral Health (2) 03/31/03 03/31/02 % 03/31/03 03/31/02 % -------- -------- - -------- -------- - Hospitals owned and leased 25 26 -3.8% 37 37 0.0% Average licensed beds 5,735 5,846 -1.9% 3,754 3,749 0.1% Patient days 320,892 323,304 -0.7% 259,038 248,940 4.1% Average daily census 3,565.6 3,592.3 -0.7% 2,878.2 2,766.0 4.1% Occupancy-licensed beds 62.2% 61.4% 1.2% 76.7% 73.8% 3.9% Admissions 68,115 66,860 1.9% 21,744 21,251 2.3% Length of stay 4.7 4.8 -2.6% 11.9 11.7 1.7% (1) Inland Valley and Rancho Springs combined on July 1, 2002 (2) North Star Hospital and Residential Center are excluded in both current and prior years.