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): November 10, 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 November 10, 2003
Item 12. Results of Operations and Financial Condition
On November 10, 2003, Universal Health Services, Inc. (the “Company”) issued an updated 2003 third quarter earnings release reflecting the changes due to the deferral of FASB Statement 150. A copy of the Company’s press release is furnished as an exhibit to this Form 8-K and is incorporated herein by reference.
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, Chief Financial Officer and Controller | ||
Date: November 12, 2003
Exhibit Index
| Exhibit No. |
Exhibit | |
| 99.1 | Press release, dated November 10, 2003 | |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
November 10, 2003
| CONTACT: | Steve Filton |
| Chief Financial Officer |
| 610-768-3300 |
UNIVERSAL HEALTH SERVICES, INC. UPDATES
THIRD QUARTER RESULTS REFLECTING CHANGES
DUE TO THE DEFERRAL OF FASB STATEMENT 150
KING OF PRUSSIA, PA—Universal Health Services, Inc. (NYSE: UHS) today released updated financial results for the three and nine month periods ended September 30, 2003 solely due to the Financial Accounting Standard Board’s (“FASB”) October 29, 2003 announcement that certain provisions of Statement of Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity” (“FASB 150”), related to the accounting for minority interest of consolidated subsidiaries with finite lives, will be indefinitely deferred. In the Company’s October 20, 2003 press release announcing earnings for the three and nine month periods ended September 30, 2003, the Company had recorded an after-tax charge of $1,699,000 or $.03 per diluted share, for the cumulative effect of an accounting change related to this provision of FASB 150.
Due to the revised accounting treatment, the Company has revised its earnings for the three and nine month periods ended September 30, 2003 (previously reported on October 20, 2003) to eliminate this $1,699,000 after-tax charge. Accordingly, the Company is now reporting net income and earning per diluted share of $49.1 million and $.79, respectively, for the three-month period ended September 30, 2003 and $152.8 million and $2.45, respectively, for the nine-month period ended September 30, 2003. Included in the net income and earnings per diluted share for the three and nine month periods ended September 30, 2003 were after-tax (and after minority interest expense) gains on sales of assets and businesses of $4.4 million or $.07 per diluted share.
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.
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)
Unaudited
| Three months ended September 30, |
Nine months ended September 30, | |||||||||||||
| 2003 |
2002 |
2003 |
2002 | |||||||||||
| Net revenues |
$ | 896,332 | $ | 813,104 | $ | 2,694,094 | $ | 2,423,420 | ||||||
| Operating charges: |
||||||||||||||
| Salaries, wages and benefits |
362,440 | 323,331 | 1,075,670 | 964,633 | ||||||||||
| Other operating expenses |
213,424 | 196,007 | 628,950 | 586,199 | ||||||||||
| Supplies expense |
119,897 | 106,382 | 362,190 | 313,747 | ||||||||||
| Provision for doubtful accounts |
62,288 | 62,590 | 189,410 | 173,329 | ||||||||||
| Depreciation and amortization |
35,799 | 30,136 | 105,849 | 90,444 | ||||||||||
| Lease and rental expense |
15,994 | 15,609 | 47,676 | 46,089 | ||||||||||
| Interest expense, net |
8,615 | 8,636 | 27,839 | 25,768 | ||||||||||
| 818,457 | 742,691 | 2,437,584 | 2,200,209 | |||||||||||
| Income before gains on sales of assets and businesses, minority interests, and income taxes |
77,875 | 70,413 | 256,510 | 223,211 | ||||||||||
| Gains on sales of assets and businesses |
(7,837 | ) | 0 | (7,837 | ) | 0 | ||||||||
| Minority interests in earnings of consolidated entities |
7,476 | 4,924 | 21,036 | 15,485 | ||||||||||
| Income before income taxes |
78,236 | 65,489 | 243,311 | 207,726 | ||||||||||
| Provision for income taxes |
29,175 | 24,038 | 90,510 | 76,255 | ||||||||||
| Net income |
$ | 49,061 | $ | 41,451 | $ | 152,801 | $ | 131,471 | ||||||
| Earnings per common share—basic |
$ | 0.86 | $ | 0.69 | $ | 2.65 | $ | 2.20 | ||||||
| Earnings per common share—diluted |
$ | 0.79 | $ | 0.65 | $ | 2.45 | $ | 2.05 | ||||||
| EARNINGS PER SHARE CALCULATION |
||||||||||||||
| Net income |
$ | 49,061 | $ | 41,451 | $ | 152,801 | $ | 131,471 | ||||||
| Add: Debenture interest, net of taxes |
2,222 | 2,134 | 6,577 | 6,317 | ||||||||||
| Adjusted net income |
$ | 51,283 | $ | 43,585 | $ | 159,378 | $ | 137,788 | ||||||
| Weighted average number of common shares—basic |
57,354 | 59,883 | 57,762 | 59,893 | ||||||||||
| Add: Shares for conversion of convertible debentures |
6,577 | 6,577 | 6,577 | 6,577 | ||||||||||
| Other share equivalents |
909 | 715 | 787 | 689 | ||||||||||
| Weighted average number of common shares and equiv.—diluted |
64,840 | 67,175 | 65,126 | 67,159 | ||||||||||
| Earnings per common share—diluted |
$ | 0.79 | $ | 0.65 | $ | 2.45 | $ | 2.05 | ||||||
Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
Unaudited
| September 30, 2003 |
December 31, 2002 | |||||
| Assets: |
||||||
| Cash and cash equivalents |
$ | 28,261 | $ | 17,750 | ||
| Accounts receivable, net |
482,818 | 474,763 | ||||
| Other current assets |
88,756 | 114,063 | ||||
| Total Current Assets |
599,835 | 606,576 | ||||
| Property, plant and equipment, net |
1,282,259 | 1,173,195 | ||||
| Other assets |
553,754 | 549,366 | ||||
| Total Assets |
$ | 2,435,848 | $ | 2,329,137 | ||
| Liabilities and Stockholders’ Equity: |
||||||
| Current portion of long-term debt |
$ | 11,225 | $ | 8,253 | ||
| Other current liabilities |
381,630 | 362,160 | ||||
| Total Current Liabilities |
392,855 | 370,413 | ||||
| Other noncurrent liabilities |
211,484 | 206,238 | ||||
| Minority interest |
158,858 | 140,247 | ||||
| Long-term debt |
632,526 | 680,514 | ||||
| Deferred income taxes |
15,586 | 14,266 | ||||
| Total Liabilities |
1,411,309 | 1,411,678 | ||||
| Stockholders’ equity |
1,024,539 | 917,459 | ||||
| Total Liabilities and Stockholders’ Equity |
$ | 2,435,848 | $ | 2,329,137 | ||