KING OF PRUSSIA, Pa.,
July 26, 2016 /PRNewswire/
-- Universal Health Services, Inc. (NYSE: UHS) announced today
that its reported net income attributable to UHS was $185.6 million, or $1.89 per diluted share, during the second
quarter of 2016 as compared to $182.2
million, or $1.80 per diluted
share, during the comparable quarter of 2015. Net revenues
increased 6.8% to $2.43 billion
during the second quarter of 2016 as compared to $2.28 billion during the second quarter of
2015.
For the three-month period ended June 30,
2016, our adjusted net income attributable to UHS per
diluted share, as calculated on the attached Schedule of Non-GAAP
Supplemental Consolidated Statements of Income Information
("Supplemental Schedule"), increased to $1.94 per diluted share, as compared to
$1.85 per diluted share during the
second quarter of 2015. As reflected on the Supplemental
Schedule, included in our reported results during each of the
second quarters of 2016 and 2015, are net unfavorable after-tax
impacts of $.05 per diluted share
related to the incentive income and depreciation and amortization
expense recorded in connection with the implementation of
electronic health records ("EHR") applications at our acute care
hospitals.
Consolidated Results of Operations, As Reported and As
Adjusted – Six-month periods ended June 30, 2016 and 2015:
Reported net income attributable to UHS was $376.3 million, or $3.81 per diluted share, during the first six
months of 2016 as compared to $356.5
million, or $3.54 per diluted
share, during the comparable period of 2015. Net revenues
increased 8.4% to $4.88 billion
during the first six months of 2016 as compared to $4.50 billion during the comparable period of
2015.
For the six-month period ended June 30,
2016, our adjusted net income attributable to UHS per
diluted share, as calculated on the Supplemental Schedule,
increased to $3.92 per diluted share,
as compared to $3.63 per diluted
share during the comparable period of 2015. As reflected on
the Supplemental Schedule, included in our reported results during
the six-month periods ended June 30,
2016 and 2015, are net unfavorable after-tax impacts of
$.11 per diluted share and
$.09 per diluted share, respectively,
related to the incentive income and depreciation and amortization
expense recorded in connection with the implementation of EHR
applications at our acute care hospitals.
Acute Care Services – Three and six-month periods ended
June 30, 2016 and 2015:
During the second quarter of 2016, at our acute care hospitals
owned during both periods ("same facility basis"), adjusted
admissions (adjusted for outpatient activity) increased 3.9% and
adjusted patient days increased 2.8%, as compared to the second
quarter of 2015. Net revenues from our acute care services
increased 7.4% during the second quarter of 2016 as compared to the
second quarter of the prior year. At these facilities, net revenue
per adjusted admission increased 1.3% while net revenue per
adjusted patient day increased 2.4% during the second quarter of
2016 as compared to the comparable quarter of 2015. On a same
facility basis, the operating margin generated from our acute care
services was 17.7% during the second quarter of 2016 as compared to
19.1% during the second quarter of 2015. We define operating margin
as net revenues less salaries, wages and benefits, other operating
expenses and supplies expense, divided by net revenues (excluding
the impact of EHR and other items, if applicable, as indicated on
the Supplemental Schedules).
During the first six months of 2016, at our acute care hospitals
on a same facility basis, adjusted admissions increased 5.8% and
adjusted patient days increased 3.1%, as compared to the first six
months of 2015. Net revenues from our acute care services increased
9.7% during the first six months of 2016 as compared to the
comparable period of the prior year. At these facilities, net
revenue per adjusted admission increased 2.2% while net revenue per
adjusted patient day increased 4.8% during the first six months of
2016 as compared to the comparable period of 2015. On a same
facility basis, the operating margin generated from our acute care
services was 19.4% during the first six months of 2016 as compared
to 19.8% during the comparable period of 2015.
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 gross charges, amounting to approximately $339 million and $263
million during the three-month periods ended June 30, 2016 and 2015, respectively, and
approximately $684 million and
$550 million during the six-month
periods ended June 30, 2016 and 2015,
respectively. The provision for doubtful accounts at our acute care
hospitals amounted to approximately $179
million and $149 million
during the three-month periods ended June
30, 2016 and 2015, respectively, and approximately
$319 million and $274 million during the six-month periods ended
June 30, 2016 and 2015, respectively.
Our acute care hospitals experienced an increase in the
aggregate of charity care, uninsured discounts and provision for
doubtful accounts, as a percentage of gross charges, during the
three and six-month period ended June 30,
2016, as compared to the comparable periods of
2015.
Behavioral Health Care Services – Three and six-month periods
ended June 30, 2016 and 2015:
During the second quarter of 2016, at our behavioral health care
facilities on a same facility basis, adjusted admissions decreased
0.3% while adjusted patient days increased 0.2% as compared to the
second quarter of 2015. At these facilities, net revenue per
adjusted admission increased 2.4% while net revenue per adjusted
patient day increased 1.9% during the second quarter of 2016 as
compared to the comparable quarter in 2015. On a same facility
basis, our behavioral health services' net revenues increased 2.0%
during the second quarter of 2016, as compared to the second
quarter of 2015, and the operating margins were 28.1% and 28.7%
during the second quarters of 2016 and 2015, respectively.
During the first six months of 2016, at our behavioral health
care facilities on a same facility basis, adjusted admissions
increased 0.5% while adjusted patient days increased 0.7% as
compared to the comparable period of 2015. At these facilities, net
revenue per adjusted admission increased 2.1% while net revenue per
adjusted patient day increased 1.9% during the first six months of
2016 as compared to the comparable period in 2015. On a same
facility basis, our behavioral health services' net revenues
increased 2.7% during the first six months of 2016, as compared to
the comparable period of 2015, and the operating margins were 28.0%
and 28.6% during the first six months of 2016 and 2015,
respectively.
Share Repurchase Program:
In February of 2016, our Board of Directors authorized a
$400 million increase to our stock
repurchase program, which increased the aggregate authorization to
$800 million from the previous
$400 million authorization approved
during the third quarter of 2014. Pursuant to this program,
we may purchase shares of our Class B Common Stock, from time to
time as conditions allow, on the open market or in negotiated
private transactions.
In conjunction with this program, during the second quarter of
2016, we repurchased 235,352 shares at an aggregate cost of
$29.1 million (approximately
$123 per share). During the
first six months of 2016, we repurchased approximately 1.6 million
shares at an aggregate cost of $181.5
million (approximately $115
per share). Since inception of the program through June 30, 2016, we repurchased approximately 3.5
million shares at an aggregate cost of approximately $405.7 million (approximately $117 per share).
Conference call information:
We will hold a conference call for investors and analysts at
9:00 a.m. eastern time on
July 27, 2016. The dial-in number is
1-877-648-7971.
A live broadcast of the conference call will be available on our
website at www.uhsinc.com. A replay of the call will be
available following the conclusion of the live call and will be
available for one full year.
General Information, Forward-Looking Statements and Risk
Factors and Non-GAAP Financial Measures:
Universal Health Services, Inc. ("UHS") is one of the nation's
largest hospital companies operating through its subsidiaries acute
care hospitals, behavioral health facilities and ambulatory centers
located throughout the United
States, the United Kingdom,
Puerto Rico and the U.S. Virgin
Islands. It acts as the advisor to Universal Health Realty
Income Trust, a real estate investment trust (NYSE:UHT). For
additional information on the Company, visit our web site:
http://www.uhsinc.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
in Item 7-Forward-Looking Statements and Risk Factors in our
Form 10-K for the year ended December 31,
2015 and in Item 2-Forward Looking Statements and Risk
Factors in our Form 10-Q for the quarterly period ended
March 31, 2016), may cause the
results to differ materially from those anticipated in the
forward-looking statements. Many of the factors that will
determine our future results are beyond our capability to control
or predict. 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.
We believe that operating income, operating margin, adjusted net
income attributable to UHS, adjusted net income attributable to UHS
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 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 in each year of material items related to the implementation
of EHR applications at our acute care hospitals and other items
that are nonrecurring or non-operational in nature including, but
not limited to, costs related to extinguishment of debt, gains on
sales of assets and businesses, reserves for settlements, legal
judgments and lawsuits, impairments of long-lived assets 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,
determined in accordance with GAAP, 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, 2015 and our Report on Form 10-Q for
the quarterly period ended March 31,
2016. 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.
Our acute care hospitals are eligible for Medicare and Medicaid
EHR incentive payments upon implementation of the EHR application,
once they have demonstrated meaningful use of certified EHR
technology for the applicable stage or have completed attestations
to their adoption or implementation of certified EHR technology.
However, there may be timing differences in the recognition
of the incentive income and expenses recorded in connection with
the implementation of the EHR application which may cause material
period-to-period changes in our future results of operations.
Pursuant to regulations, hospitals that did not qualify as a
meaningful user of EHR by 2015 are subject to a reduced market
basket update to the inpatient prospective payment system
standardized amount in 2015 and each subsequent fiscal year. We
believe that all of our acute care hospitals have met the
applicable meaningful use criteria and therefore are not subject to
a reduced market basked update to the inpatient prospective payment
standardized amount. Under the HITECH Act, hospitals must continue
to meet the applicable meaningful use criteria in each fiscal year
or they will be subject to a market basket update reduction in a
subsequent fiscal year.
Universal Health
Services, Inc.
|
Consolidated
Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Six months
|
|
ended June
30,
|
|
ended June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net revenues before
provision for doubtful accounts
|
$2,638,848
|
|
$2,452,680
|
|
$5,258,441
|
|
$4,832,781
|
Less:
Provision for doubtful accounts
|
207,993
|
|
177,476
|
|
377,788
|
|
332,224
|
Net
revenues
|
2,430,855
|
|
2,275,204
|
|
4,880,653
|
|
4,500,557
|
|
|
|
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
1,130,933
|
|
1,044,064
|
|
2,279,072
|
|
2,075,767
|
Other
operating expenses
|
585,995
|
|
535,711
|
|
1,147,579
|
|
1,041,677
|
Supplies
expense
|
254,422
|
|
240,979
|
|
509,672
|
|
479,720
|
Depreciation and amortization
|
101,411
|
|
97,257
|
|
205,460
|
|
196,255
|
Lease
and rental expense
|
24,806
|
|
23,196
|
|
49,258
|
|
46,087
|
Electronic health records incentive income
|
0
|
|
(1,395)
|
|
0
|
|
(1,395)
|
|
2,097,567
|
|
1,939,812
|
|
4,191,041
|
|
3,838,111
|
|
|
|
|
|
|
|
|
Income from
operations
|
333,288
|
|
335,392
|
|
689,612
|
|
662,446
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
30,442
|
|
27,684
|
|
60,042
|
|
57,721
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
302,846
|
|
307,708
|
|
629,570
|
|
604,725
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
107,397
|
|
106,304
|
|
218,402
|
|
208,998
|
|
|
|
|
|
|
|
|
Net income
|
195,449
|
|
201,404
|
|
411,168
|
|
395,727
|
|
|
|
|
|
|
|
|
Less: Income
attributable to
|
|
|
|
|
|
|
|
noncontrolling
interests
|
9,872
|
|
19,211
|
|
34,832
|
|
39,235
|
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$185,577
|
|
$182,193
|
|
$376,336
|
|
$356,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS (a)
|
$1.91
|
|
$1.84
|
|
$3.86
|
|
$3.60
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS (a)
|
$1.89
|
|
$1.80
|
|
$3.81
|
|
$3.54
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Footnotes to
Consolidated Statements of Income
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Six months
|
|
ended June
30,
|
|
ended June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
(a) Earnings per
share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted:
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$185,577
|
|
$182,193
|
|
$376,336
|
|
$356,492
|
Less: Net income
attributable to unvested restricted share grants
|
(84)
|
|
(71)
|
|
(173)
|
|
(139)
|
Net income
attributable to UHS - basic and diluted
|
$185,493
|
|
$182,122
|
|
$376,163
|
|
$356,353
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares - basic
|
97,109
|
|
99,004
|
|
97,358
|
|
98,957
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to UHS:
|
$1.91
|
|
$1.84
|
|
$3.86
|
|
$3.60
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
|
97,109
|
|
99,004
|
|
97,358
|
|
98,957
|
Add: Other share
equivalents
|
1,280
|
|
1,923
|
|
1,284
|
|
1,830
|
Weighted average
number of common shares and equiv. - diluted
|
98,389
|
|
100,927
|
|
98,642
|
|
100,787
|
|
|
|
|
|
|
|
|
Diluted earnings per
share attributable to UHS:
|
$1.89
|
|
$1.80
|
|
$3.81
|
|
$3.54
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Consolidated Statements of Income Information
("Supplemental Schedule")
|
For the three months
ended June 30, 2016 and 2015
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
"EBITDA"
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues before
provision for doubtful accounts
|
$2,638,848
|
|
|
|
$2,452,680
|
|
|
Less:
Provision for doubtful accounts
|
207,993
|
|
|
|
177,476
|
|
|
Net
revenues
|
2,430,855
|
|
100.0%
|
|
2,275,204
|
|
100.0%
|
|
|
|
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
1,130,933
|
|
46.5%
|
|
1,044,064
|
|
45.9%
|
Other
operating expenses
|
585,995
|
|
24.1%
|
|
535,711
|
|
23.5%
|
Supplies
expense
|
254,422
|
|
10.5%
|
|
240,979
|
|
10.6%
|
EHR
incentive income
|
0
|
|
0.0%
|
|
(1,395)
|
|
-0.1%
|
|
1,971,350
|
|
81.1%
|
|
1,819,359
|
|
80.0%
|
|
|
|
|
|
|
|
|
Operating
income/margin ("EBITDAR")
|
459,505
|
|
18.9%
|
|
455,845
|
|
20.0%
|
|
|
|
|
|
|
|
|
Lease
and rental expense
|
24,806
|
|
|
|
23,196
|
|
|
Income
attributable to noncontrolling interests
|
9,872
|
|
|
|
19,211
|
|
|
|
|
|
|
|
|
|
|
Earnings before
depreciation and amortization, interest expense, and income taxes
("EBITDA")
|
424,827
|
|
17.5%
|
|
413,438
|
|
18.2%
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
101,411
|
|
|
|
97,257
|
|
|
Interest
expense, net
|
30,442
|
|
|
|
27,684
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
292,974
|
|
|
|
288,497
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
107,397
|
|
|
|
106,304
|
|
|
Net income
attributable to UHS
|
$185,577
|
|
|
|
$182,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Three months
ended
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$185,577
|
|
$1.89
|
|
$182,193
|
|
$1.80
|
|
|
|
|
|
|
|
|
Plus/minus impact of
EHR implementation:
|
|
|
|
|
|
|
|
EHR-related incentive
income, pre-tax
|
-
|
|
|
|
(1,395)
|
|
|
EHR-related
depreciation & amortization, pre-tax
|
9,187
|
|
|
|
9,306
|
|
|
EHR-related minority
interest in earnings of consolidated entities, pre-tax
|
(455)
|
|
|
|
(963)
|
|
|
Income tax provision
on EHR-related items
|
(3,255)
|
|
|
|
(2,590)
|
|
|
After-tax impact of
EHR-related items
|
5,477
|
|
0.05
|
|
4,358
|
|
0.05
|
Adjusted net income
attributable to UHS
|
$191,054
|
|
$1.94
|
|
$186,551
|
|
$1.85
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Schedule of Non-GAAP
Supplemental Consolidated Statements of Income Information
("Supplemental Schedule")
|
For the six months
ended June 30, 2016 and 2015
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
"EBITDA"
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Six months
ended
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues before
provision for doubtful accounts
|
$5,258,441
|
|
|
|
$4,832,781
|
|
|
Less:
Provision for doubtful accounts
|
377,788
|
|
|
|
332,224
|
|
|
Net
revenues
|
4,880,653
|
|
100.0%
|
|
4,500,557
|
|
100.0%
|
|
|
|
|
|
|
|
|
Operating
charges:
|
|
|
|
|
|
|
|
Salaries, wages and benefits
|
2,279,072
|
|
46.7%
|
|
2,075,767
|
|
46.1%
|
Other
operating expenses
|
1,147,579
|
|
23.5%
|
|
1,041,677
|
|
23.1%
|
Supplies
expense
|
509,672
|
|
10.4%
|
|
479,720
|
|
10.7%
|
EHR
incentive income
|
0
|
|
0.0%
|
|
(1,395)
|
|
0.0%
|
|
3,936,323
|
|
80.7%
|
|
3,595,769
|
|
79.9%
|
|
|
|
|
|
|
|
|
Operating
income/margin ("EBITDAR")
|
944,330
|
|
19.3%
|
|
904,788
|
|
20.1%
|
|
|
|
|
|
|
|
|
Lease
and rental expense
|
49,258
|
|
|
|
46,087
|
|
|
Income
attributable to noncontrolling interests
|
34,832
|
|
|
|
39,235
|
|
|
|
|
|
|
|
|
|
|
Earnings before
depreciation and amortization, interest expense, and income taxes
("EBITDA")
|
860,240
|
|
17.6%
|
|
819,466
|
|
18.2%
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
205,460
|
|
|
|
196,255
|
|
|
Interest
expense, net
|
60,042
|
|
|
|
57,721
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
594,738
|
|
|
|
565,490
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
218,402
|
|
|
|
208,998
|
|
|
Net income
attributable to UHS
|
$376,336
|
|
|
|
$356,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
Six months
ended
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
|
Per
|
|
|
|
Per
|
|
Amount
|
|
Diluted
Share
|
|
Amount
|
|
Diluted
Share
|
Calculation of
Adjusted Net Income Attributable to UHS
|
|
|
|
|
|
|
|
Net income
attributable to UHS
|
$376,336
|
|
$3.81
|
|
$356,492
|
|
$3.54
|
|
|
|
|
|
|
|
|
Plus/minus impact of
EHR implementation:
|
|
|
|
|
|
|
|
EHR-related incentive
income, pre-tax
|
-
|
|
|
|
(1,395)
|
|
|
EHR-related
depreciation & amortization, pre-tax
|
18,493
|
|
|
|
18,612
|
|
|
EHR-related minority
interest in earnings of consolidated entities, pre-tax
|
(1,417)
|
|
|
|
(1,927)
|
|
|
Income tax provision
on EHR-related items
|
(6,365)
|
|
|
|
(5,699)
|
|
|
After-tax impact of
EHR-related items
|
10,711
|
|
0.11
|
|
9,591
|
|
0.09
|
Adjusted net income
attributable to UHS
|
$387,047
|
|
$3.92
|
|
$366,083
|
|
$3.63
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Comprehensive Income
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
Six months
|
|
ended June
30,
|
|
ended June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net income
|
$195,449
|
|
$201,404
|
|
$411,168
|
|
$395,727
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
Unrealized derivative gains (loss) on cash flow hedges
|
(3,769)
|
|
806
|
|
(18,068)
|
|
4,938
|
Amortization of terminated hedge
|
(83)
|
|
(84)
|
|
(167)
|
|
(168)
|
Unrealized loss on marketable security
|
(621)
|
|
0
|
|
(621)
|
|
0
|
Foreign
currency translation adjustment
|
(4,163)
|
|
2,626
|
|
1,823
|
|
2,208
|
Other comprehensive
income (loss) before tax
|
(8,636)
|
|
3,348
|
|
(17,033)
|
|
6,978
|
Income tax expense
related to items of other comprehensive income
|
(1,667)
|
|
715
|
|
(7,027)
|
|
2,212
|
Total other
comprehensive income (loss), net of tax
|
(6,969)
|
|
2,633
|
|
(10,006)
|
|
4,766
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
188,480
|
|
204,037
|
|
401,162
|
|
400,493
|
Less: Comprehensive
income attributable to noncontrolling interests
|
9,872
|
|
19,211
|
|
34,832
|
|
39,235
|
Comprehensive income
attributable to UHS
|
$178,608
|
|
$184,826
|
|
$366,330
|
|
$361,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2016
|
|
|
2015
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
56,273
|
|
$
|
61,228
|
Accounts receivable, net
|
|
|
1,344,916
|
|
|
1,302,429
|
Supplies
|
|
|
117,710
|
|
|
116,037
|
Deferred income taxes
|
|
|
2,849
|
|
|
135,120
|
Other current assets
|
|
|
85,005
|
|
|
103,490
|
Total current assets
|
|
|
1,606,753
|
|
|
1,718,304
|
|
|
|
|
|
|
|
Property and
equipment
|
|
|
6,722,246
|
|
|
6,530,569
|
Less: accumulated
depreciation
|
|
|
(2,819,773)
|
|
|
(2,694,591)
|
|
|
|
3,902,473
|
|
|
3,835,978
|
|
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
|
|
Goodwill
|
|
|
3,585,892
|
|
|
3,596,114
|
Deferred charges
|
|
|
15,319
|
|
|
16,688
|
Other
|
|
|
430,493
|
|
|
448,360
|
|
|
$
|
9,540,930
|
|
$
|
9,615,444
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
94,802
|
|
$
|
62,722
|
Accounts payable and accrued liabilities
|
|
|
1,169,241
|
|
|
1,033,697
|
Federal and state taxes
|
|
|
3,991
|
|
|
3,987
|
Total current liabilities
|
|
|
1,268,034
|
|
|
1,100,406
|
|
|
|
|
|
|
|
Other noncurrent
liabilities
|
|
|
306,561
|
|
|
278,834
|
Long-term
debt
|
|
|
3,499,375
|
|
|
3,368,634
|
Deferred income
taxes
|
|
|
90,251
|
|
|
315,900
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
8,782
|
|
|
242,509
|
|
|
|
|
|
|
|
UHS common
stockholders' equity
|
|
|
4,302,978
|
|
|
4,249,647
|
Noncontrolling
interest
|
|
|
64,949
|
|
|
59,514
|
Total equity
|
|
|
4,367,927
|
|
|
4,309,161
|
|
|
|
|
|
|
|
|
|
$
|
9,540,930
|
|
$
|
9,615,444
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
Six
months
|
|
ended June
30,
|
|
2016
|
|
2015
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
Net
income
|
$411,168
|
|
$395,727
|
Adjustments
to reconcile net income to net
|
|
|
|
cash provided by
operating activities:
|
|
|
|
Depreciation &
amortization
|
205,460
|
|
196,255
|
Stock-based
compensation expense
|
24,693
|
|
20,474
|
Changes in
assets & liabilities, net of effects from
|
|
|
|
acquisitions and
dispositions:
|
|
|
|
Accounts
receivable
|
(45,729)
|
|
(95,013)
|
Accrued
interest
|
9,158
|
|
(1,520)
|
Accrued
and deferred income taxes
|
17,997
|
|
10,870
|
Other
working capital accounts
|
123,315
|
|
(10,899)
|
Other
assets and deferred charges
|
(8,149)
|
|
4,074
|
Other
|
52,050
|
|
2,163
|
Accrued
insurance expense, net of commercial premiums paid
|
44,231
|
|
50,511
|
Payments
made in settlement of self-insurance claims
|
(33,012)
|
|
(41,039)
|
Net cash provided by operating activities
|
801,182
|
|
531,603
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Property
and equipment additions, net of disposals
|
(247,715)
|
|
(170,580)
|
Acquisition of property and businesses
|
(27,525)
|
|
(34,500)
|
Net cash used in investing activities
|
(275,240)
|
|
(205,080)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Reduction of long-term debt
|
(843,351)
|
|
(255,658)
|
Additional borrowings and related funds
|
1,022,239
|
|
5,200
|
Acquisition of minority ownership interests in majority owned
businesses
|
(418,000)
|
|
0
|
Financing costs
|
(10,734)
|
|
0
|
Repurchase of common shares
|
(239,139)
|
|
(68,157)
|
Dividends paid
|
(19,484)
|
|
(19,804)
|
Issuance
of common stock
|
4,362
|
|
4,039
|
Excess
income tax benefits related to stock-based compensation
|
35,247
|
|
28,489
|
Profit
distributions to noncontrolling interests
|
(59,615)
|
|
(23,295)
|
Proceeds
received from sale/leaseback of real property
|
0
|
|
12,765
|
Net cash used in financing activities
|
(528,475)
|
|
(316,421)
|
|
|
|
|
Effect
of exchange rate changes on cash and cash equivalents
|
(2,422)
|
|
293
|
(Decrease) increase
in cash and cash equivalents
|
(4,955)
|
|
10,395
|
Cash and cash
equivalents, beginning of period
|
61,228
|
|
32,069
|
Cash and cash
equivalents, end of period
|
$56,273
|
|
$42,464
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information:
|
|
|
|
Interest
paid
|
$53,558
|
|
$55,718
|
|
|
|
|
Income taxes
paid, net of refunds
|
$165,947
|
|
$166,637
|
|
|
|
|
Noncash
purchases of property and equipment
|
$42,747
|
|
$34,488
|
|
|
|
|
Universal Health
Services, Inc.
|
Supplemental
Statistical Information
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
%
Change
|
|
|
|
|
|
|
|
Quarter
ended
|
|
6 months
ended
|
|
|
Same
Facility:
|
|
|
|
|
6/30/2016
|
|
6/30/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Acute Care
Hospitals
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
7.4%
|
|
9.7%
|
|
|
Adjusted
Admissions
|
|
|
|
|
3.9%
|
|
5.8%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
2.8%
|
|
3.1%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
1.3%
|
|
2.2%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
2.4%
|
|
4.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Behavioral Health
Hospitals
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
2.0%
|
|
2.7%
|
|
|
Adjusted
Admissions
|
|
|
|
|
-0.3%
|
|
0.5%
|
|
|
Adjusted Patient
Days
|
|
|
|
|
0.2%
|
|
0.7%
|
|
|
Revenue Per Adjusted
Admission
|
|
|
|
2.4%
|
|
2.1%
|
|
|
Revenue Per Adjusted
Patient Day
|
|
|
|
1.9%
|
|
1.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UHS
Consolidated
|
|
|
Second quarter
ended
|
|
Six months
ended
|
|
|
|
6/30/2016
|
|
6/30/2015
|
|
6/30/2016
|
|
6/30/2015
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
$2,430,855
|
|
$2,275,204
|
|
$4,880,653
|
|
$4,500,557
|
EBITDA
(1)
|
|
|
$424,827
|
|
$413,438
|
|
$860,240
|
|
$819,466
|
EBITDA Margin
(1)
|
|
|
17.5%
|
|
18.2%
|
|
17.6%
|
|
18.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow From
Operations
|
|
|
$336,955
|
|
$260,329
|
|
$801,182
|
|
$531,603
|
Days Sales
Outstanding
|
|
|
50
|
|
54
|
|
50
|
|
55
|
Capital
Expenditures
|
|
|
$120,501
|
|
$81,304
|
|
$247,715
|
|
$170,580
|
|
|
|
|
|
|
|
|
|
|
Debt
|
|
|
|
|
|
|
$3,594,177
|
|
$3,014,643
|
UHS' Shareholders
Equity
|
|
|
|
|
|
|
$4,302,978
|
|
$4,061,756
|
Debt / Total
Capitalization
|
|
|
|
|
|
|
45.5%
|
|
42.6%
|
Debt / EBITDA
(2)
|
|
|
|
|
|
|
2.21
|
|
1.99
|
Debt / Cash From
Operations (2)
|
|
|
|
|
|
2.79
|
|
2.72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acute Care EBITDAR
Margin (3)
|
17.7%
|
|
19.1%
|
|
19.4%
|
|
19.8%
|
Behavioral Health
EBITDAR Margin (3)
|
28.1%
|
|
28.7%
|
|
28.0%
|
|
28.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net of
Minority Interest
|
|
|
|
|
|
|
|
|
|
(2) Latest 4
quarters
|
|
|
|
|
|
|
|
|
|
(3) Same
facility basis, before Corporate overhead allocation and minority
interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the three months
ended
|
June 30, 2016 and
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
|
BEHAVIORAL HEALTH
|
|
|
06/30/16
|
06/30/15
|
%
change
|
|
06/30/16
|
06/30/15
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
24
|
24
|
0.0%
|
|
213
|
202
|
5.4%
|
Average licensed
beds
|
|
5,854
|
5,836
|
0.3%
|
|
21,824
|
21,027
|
3.8%
|
Patient
days
|
|
306,907
|
302,757
|
1.4%
|
|
1,511,204
|
1,463,553
|
3.3%
|
Average daily
census
|
|
3,372.6
|
3,327.0
|
1.4%
|
|
16,606.6
|
16,083.0
|
3.3%
|
Occupancy-licensed
beds
|
|
57.6%
|
57.0%
|
1.1%
|
|
76.1%
|
76.5%
|
-0.5%
|
Admissions
|
|
66,824
|
65,218
|
2.5%
|
|
114,873
|
113,855
|
0.9%
|
Length of
stay
|
|
4.6
|
4.6
|
-1.1%
|
|
13.2
|
12.9
|
2.0%
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$4,682,682
|
$4,188,933
|
11.8%
|
|
$1,995,992
|
$1,865,070
|
7.0%
|
Outpatient
revenue
|
|
2,838,852
|
2,403,044
|
18.1%
|
|
229,243
|
217,013
|
5.6%
|
Total patient
revenue
|
|
7,521,534
|
6,591,977
|
14.1%
|
|
2,225,235
|
2,082,083
|
6.9%
|
Other
revenue
|
|
118,988
|
88,970
|
33.7%
|
|
53,053
|
54,440
|
-2.5%
|
Gross hospital
revenue
|
|
7,640,522
|
6,680,947
|
14.4%
|
|
2,278,288
|
2,136,523
|
6.6%
|
|
|
|
|
|
|
|
|
|
Total
deductions
|
|
6,208,276
|
5,367,134
|
15.7%
|
|
1,074,462
|
1,001,556
|
7.3%
|
|
|
|
|
|
|
|
|
|
Net hospital revenue
before
|
|
|
|
|
|
|
|
|
provision for
doubtful accounts
|
|
1,432,246
|
1,313,813
|
9.0%
|
|
1,203,826
|
1,134,967
|
6.1%
|
|
|
|
|
|
|
|
|
|
Provision for
doubtful accounts
|
|
178,918
|
149,297
|
19.8%
|
|
29,071
|
28,107
|
3.4%
|
|
|
|
|
|
|
|
|
|
Net hospital
revenue
|
|
$1,253,328
|
$1,164,516
|
7.6%
|
|
$1,174,755
|
$1,106,860
|
6.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
|
BEHAVIORAL HEALTH (1)
|
|
|
06/30/16
|
06/30/15
|
%
change
|
|
06/30/16
|
06/30/15
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
24
|
24
|
0.0%
|
|
202
|
202
|
0.0%
|
Average licensed
beds
|
|
5,854
|
5,836
|
0.3%
|
|
21,039
|
20,708
|
1.6%
|
Patient
days
|
|
306,907
|
302,757
|
1.4%
|
|
1,458,903
|
1,450,622
|
0.6%
|
Average daily
census
|
|
3,372.6
|
3,327.0
|
1.4%
|
|
16,031.9
|
15,940.9
|
0.6%
|
Occupancy-licensed
beds
|
|
57.6%
|
57.0%
|
1.1%
|
|
76.2%
|
77.0%
|
-1.0%
|
Admissions
|
|
66,824
|
65,218
|
2.5%
|
|
113,579
|
113,565
|
0.0%
|
Length of
stay
|
|
4.6
|
4.6
|
-1.1%
|
|
12.8
|
12.8
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) ALPHA (UK)
entities, and the Foundations Recovery Network entities are
excluded in both
|
|
|
|
current and prior years.
|
|
|
|
|
|
|
|
|
Universal Health
Services, Inc.
|
Selected Hospital
Statistics
|
For the six months
ended
|
June 30, 2016 and
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AS
REPORTED:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
|
BEHAVIORAL HEALTH
|
|
|
06/30/16
|
06/30/15
|
%
change
|
|
06/30/16
|
06/30/15
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
24
|
24
|
0.0%
|
|
213
|
202
|
5.4%
|
Average licensed
beds
|
|
5,854
|
5,814
|
0.7%
|
|
21,788
|
21,005
|
3.7%
|
Patient
days
|
|
632,141
|
620,720
|
1.8%
|
|
3,011,909
|
2,906,619
|
3.6%
|
Average daily
census
|
|
3,473.3
|
3,429.3
|
1.3%
|
|
16,549.0
|
16,058.7
|
3.1%
|
Occupancy-licensed
beds
|
|
59.3%
|
59.0%
|
0.6%
|
|
76.0%
|
76.5%
|
-0.7%
|
Admissions
|
|
136,498
|
130,637
|
4.5%
|
|
230,294
|
226,561
|
1.6%
|
Length of
stay
|
|
4.6
|
4.8
|
-2.5%
|
|
13.1
|
12.8
|
1.9%
|
|
|
|
|
|
|
|
|
|
Inpatient
revenue
|
|
$9,648,219
|
$8,517,700
|
13.3%
|
|
$3,955,562
|
$3,688,495
|
7.2%
|
Outpatient
revenue
|
|
5,606,181
|
4,687,756
|
19.6%
|
|
450,886
|
421,582
|
7.0%
|
Total patient
revenue
|
|
15,254,400
|
13,205,456
|
15.5%
|
|
4,406,448
|
4,110,077
|
7.2%
|
Other
revenue
|
|
230,545
|
177,645
|
29.8%
|
|
103,591
|
105,120
|
-1.5%
|
Gross hospital
revenue
|
|
15,484,945
|
13,383,101
|
15.7%
|
|
4,510,039
|
4,215,197
|
7.0%
|
|
|
|
|
|
|
|
|
|
Total
deductions
|
|
12,625,797
|
10,798,998
|
16.9%
|
|
2,115,123
|
1,973,529
|
7.2%
|
|
|
|
|
|
|
|
|
|
Net hospital revenue
before
|
|
|
|
|
|
|
|
|
provision for
doubtful accounts
|
|
2,859,148
|
2,584,103
|
10.6%
|
|
2,394,916
|
2,241,668
|
6.8%
|
|
|
|
|
|
|
|
|
|
Provision for
doubtful accounts
|
|
318,673
|
273,647
|
16.5%
|
|
59,115
|
58,463
|
1.1%
|
|
|
|
|
|
|
|
|
|
Net hospital
revenue
|
|
$2,540,475
|
$2,310,456
|
10.0%
|
|
$2,335,801
|
$2,183,205
|
7.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SAME
FACILITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACUTE
|
|
|
BEHAVIORAL HEALTH (1)
|
|
|
06/30/16
|
06/30/15
|
%
change
|
|
06/30/16
|
06/30/15
|
%
change
|
|
|
|
|
|
|
|
|
|
Hospitals owned and
leased
|
|
24
|
24
|
0.0%
|
|
202
|
202
|
0.0%
|
Average licensed
beds
|
|
5,854
|
5,814
|
0.7%
|
|
21,019
|
20,708
|
1.5%
|
Patient
days
|
|
632,141
|
620,720
|
1.8%
|
|
2,907,195
|
2,881,882
|
0.9%
|
Average daily
census
|
|
3,473.3
|
3,429.3
|
1.3%
|
|
15,973.6
|
15,922.0
|
0.3%
|
Occupancy-licensed
beds
|
|
59.3%
|
59.0%
|
0.6%
|
|
76.0%
|
76.9%
|
-1.2%
|
Admissions
|
|
136,498
|
130,637
|
4.5%
|
|
227,688
|
225,892
|
0.8%
|
Length of
stay
|
|
4.6
|
4.8
|
-2.5%
|
|
12.8
|
12.8
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) ALPHA (UK)
entities, and the Foundations Recovery Network entities are
excluded in both
|
|
|
|
current and prior years.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/universal-health-services-inc-reports-2016-second-quarter-financial-results-300304307.html
SOURCE Universal Health Services, Inc.