Universal Health Services, Inc. Reports 2011 Fourth Quarter and Full Year Earnings and 2012 Earnings Guidance

Consolidated Results of Operations, As Reported - Three-month periods ended December 31, 2011 and 2010:

27 Feb, 2012, 17:01 ET from Universal Health Services, Inc.

KING OF PRUSSIA, Pa., Feb. 27, 2012 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $95.3 million, or $.98 per diluted share, during the fourth quarter of 2011 as compared to $37.2 million, or $.38 per diluted share, during the comparable prior year quarter.

Net revenues increased 18% to $1.84 billion during the fourth quarter of 2011 as compared to $1.56 billion during the fourth quarter of 2010.  The increase in net revenues during the fourth quarter of 2011, as compared to the comparable quarter of the prior year, was due primarily to the revenues generated at the behavioral health care facilities acquired from Psychiatric Solutions, Inc. ("PSI") in November, 2010.  

Consolidated Results of Operations, As Reported – Years ended December 31, 2011 and 2010:

Reported net income attributable to UHS was $398.2 million, or $4.04 per diluted share, during the year ended December 31, 2011 as compared to $230.2 million, or $2.34 per diluted share, during 2010.  Net revenues increased 35% to $7.50 billion during 2011 as compared to $5.57 billion during 2010.  The increase in revenues was due primarily to the acquisition of the behavioral health facilities formerly owned by PSI.  

"This past quarter marked the one year anniversary of our acquisition of PSI and we remain pleased with how that integration process has gone, as well as, with the continued strong demand for our behavioral services, in general", said Alan B. Miller, Chief Executive Officer.  "As we enter 2012, we are encouraged by the opportunities to expand our presence in the behavioral health business and we look forward to improvement in our acute care business as the economy continues its gradual recovery."

Consolidated Results of Operations, As Adjusted – Three-month periods ended December 31, 2011 and 2010:

After adjusting the reported results for the three-month periods ended December 31, 2011 and 2010 to neutralize the net impact of the items mentioned below, and as reflected on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), our adjusted net income attributable to UHS was $88.8 million, or $.91 per diluted share, during the fourth quarter of 2011 as compared to $57.5 million, or $.58 per diluted share, during the fourth quarter of 2010.  

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the three-month period ended December 31, 2011, was the favorable after-tax impact of $6.5 million, or $.07 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2011 based upon a reserve analysis.

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the three-month period ended December 31, 2010, was a net charge of $20.4 million, or $.20 per diluted share, consisting of: (i) the unfavorable after-tax impact of $24.9 million, or $.25 per diluted share, resulting from the recording of transaction fees incurred in connection with our acquisition of PSI; (ii) the unfavorable after-tax impact of $9.2 million, or $.09 per diluted share, resulting from the charge incurred in connection with the previously disclosed split-dollar life insurance agreements; (iii) the unfavorable after-tax impact of $4.1 million, or $.04 per diluted share, resulting from the write-off of certain construction costs, partially offset by; (iv) the favorable after-tax impact of $17.9 million, or $.18 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2010 based upon a reserve analysis.

Consolidated Results of Operations, As Adjusted – Years ended December 31, 2011 and 2010:

After adjusting the reported results for the years ended December 31, 2011 and 2010 to neutralize the impact of the items mentioned below, and as reflected on the attached Supplemental Schedule, our adjusted net income attributable to UHS was $391.7 million, or $3.97 per diluted share, during 2011 as compared to $249.8 million, or $2.54 per diluted share, during 2010.  

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the year ended December 31, 2011, was the favorable after-tax impact of $6.5 million, or $.07 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2011.

As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the year ended December 31, 2010, was a net charge of $19.6 million, or $.20 per diluted share, consisting of: (i) the unfavorable after-tax impact of $38.7 million, or $.39 per diluted share, resulting from the recording of transaction fees incurred in connection with our acquisition of PSI; (ii) the unfavorable after-tax impact of $9.2 million, or $.09 per diluted share, resulting from the charge incurred in connection with split-dollar life insurance agreements; (iii) the unfavorable after-tax impact of $4.1 million, or $.04 per diluted share, resulting from the write-off of certain construction costs, partially offset by; (iv) the favorable after-tax impact of $28.1 million, or $.28 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2010, and; (v) a favorable discrete tax item of $4.3 million, or $.04 per diluted share.

Acute Care Services - Three-month periods ended December 31, 2011 and 2010:

At our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 0.3% and adjusted patient days increased 0.8% during the fourth quarter of 2011, as compared to the fourth quarter of 2010. Net revenues at these facilities increased 1.6% during the fourth quarter of 2011 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 1.3% while net revenue per adjusted patient day increased 0.8% during the fourth quarter of 2011 as compared to the comparable quarter of the prior year. On a same facility basis, the operating margin (net revenues less salaries, wages and benefits, other operating expenses, supplies expense and provision for doubtful accounts, excluding the items indicated on the Supplemental Schedules) at our acute care hospitals decreased to 13.3% during the fourth quarter of 2011 as compared to 14.4% during the fourth quarter of 2010.  The decrease in the operating margin at our acute care hospitals during the fourth quarter of 2011 was caused by pressure on patient volumes and payor mix as several of our more significant markets continue to be negatively impacted by local economic trends.

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 $248 million and $208 million during the three-month periods ended December 31, 2011 and 2010, respectively.

Acute Care Services – Years ended December 31, 2011 and 2010:

During the year ended December 31, 2011, on a same facility basis, adjusted admissions to our acute care facilities were relatively unchanged while adjusted patient days increased 1.7%, as compared to 2010. Net revenues at our acute care facilities increased 4.4% during 2011 as compared to 2010. At these facilities, net revenue per adjusted admission increased 4.5% while net revenue per adjusted patient day increased 2.6% during 2011 as compared to 2010. On a same facility basis, the operating margin at our acute care hospitals increased to 14.7% during 2011 as compared to 14.5% during 2010.    

Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $956 million and $807 million during 2011 and 2010, respectively.  

Behavioral Health Care Services - Three-month periods ended December 31, 2011 and 2010:

Since the former PSI facilities were acquired by us in mid-November, 2010, for accurate comparability purposes, we have included the patient statistics and financial results for these facilities in our same facility results provided below beginning on December 1st of 2011 and 2010.

At our behavioral health care facilities, on a same facility basis, adjusted admissions increased 8.3% while adjusted patient days increased 4.1% during the fourth quarter of 2011 as compared to the fourth quarter of 2010.  Net revenues at these facilities increased 6.3% during the fourth quarter of 2011 as compared to the comparable quarter in the prior year. At these facilities, net revenue per adjusted admission decreased 1.6% while net revenue per adjusted patient day increased 2.4% during the fourth quarter of 2011 over the comparable prior year quarter. The operating margin at our behavioral health care facilities owned during both periods increased to 24.7% during the fourth quarter of 2011 as compared to 22.6% during the fourth quarter of 2010.  

Behavioral Health Care Services – Years ended December 31, 2011 and 2010:

During the year ended December 31, 2011, on a same facility basis, adjusted admissions to our behavioral health care facilities increased 7.6% while adjusted patient days increased 3.3%, as compared to 2010. Net revenues at our behavioral health care facilities increased 6.4% during 2011 as compared to 2010. At these facilities, net revenue per adjusted admission decreased 0.8% while net revenue per adjusted patient day increased 3.3% during 2011 as compared to 2010. On a same facility basis, the operating margin at our behavioral health facilities increased to 25.8% during 2011 as compared to 25.3% during 2010.

Accounting for HITECH Act incentive payments and EHR expenses:

The health information technology provisions of the American Recovery and Reinvestment Act (referred to as the "HITECH Act") established criteria related to the "meaningful use" of electronic health records ("EHR") for acute care hospitals and established requirements for the Medicare and Medicaid EHR payment incentive programs.    

During 2011, we began implementing EHR applications at certain of our acute care facilities and will continue to do so, on a facility-by-facility basis, until completion which is scheduled to occur by the end of 2013. Our acute care hospitals will be eligible for Medicare and Medicaid EHR incentive payments upon implementation of the EHR application, assuming they meet the "meaningful use" criteria.

There are no EHR-related revenues included in our consolidated results of operations for the three or twelve-month periods ended December 31, 2011. Although we received approximately $11 million of EHR incentive payments during the fourth quarter of 2011 related to state Medicaid programs, these payments have been reflected as deferred revenue on our consolidated balance sheet as of December 31, 2011. These payments will be recorded as revenue on our consolidated statements of income in the periods in which the applicable hospitals are deemed to have met the "meaningful use" criteria.  Although our 2011 results of operations include certain EHR-related expenses, the amounts did not have a material impact on our consolidated financial results during the three or twelve-month periods ended December 31, 2011.  

During 2012, based upon our scheduled EHR implementations and anticipated "meaningful use" qualifications, we expect to record approximately $12 million of EHR revenues and $17 million of EHR-related incremental expenses resulting in a net after-tax charge of approximately $4 million, or $.04 per diluted share.        

2012 Full Year Guidance:

Excluding the unfavorable $.04 per diluted share EHR impact mentioned above, our estimated range of net income attributable to UHS for the year ended December 31, 2012, is $4.33 to $4.48 per diluted share.    

During 2012, our net revenues are estimated to increase approximately 5% to $7.24 billion, as compared to $6.89 billion during 2011.  Our net revenues for 2012 and 2011 have been adjusted to reflect reclassifications of our provision for doubtful accounts which, beginning on January 1st 2012, will be reflected as a deduction from revenues rather than as an operating expense. This reclassification will have no impact on our net income attributable to UHS.      

This guidance range excludes the impact of items, if applicable, that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits and other material amounts that may be reflected in our financial statements that relate to prior periods. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

Conference Call Information:        

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on February 28, 2012. The dial-in number is 1-877-648-7971.  A digital recording of the conference call will be available two hours after the completion of the conference call on February 28, 2012 and will continue through midnight on March 13, 2012.  The recording can be accessed by calling 1-855-859-2056 and entering the pass code 47643444.

This call will also be available live over the internet at our web site at www.uhsinc.com.  The webcast will also be available through the Thomson StreetEvents Network at www.earnings.com or www.streetevents.com, a password-protected event management site for institutional investors.

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 acute care and behavioral health hospitals and ambulatory centers nationwide and in 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, 2011), 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.

As mentioned above, our acute care hospitals may qualify for EHR incentive payments upon implementation of a EHR application assuming they meet the "meaningful use" criteria. However, there can be no assurance that we (our acute care hospitals) will ultimately qualify for these incentive payments and, should we qualify, we are unable to quantify the amount of incentive payments we may receive since the amounts are dependent upon various factors including the implementation timing at each hospital. Should we qualify for incentive payments, there may be timing differences in the recognition of the revenues 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. Hospitals that do 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. Although we believe that our acute care hospitals will be in compliance with the EHR standards by 2015, there can be no assurance that all of our facilities will be in compliance and therefore not subject to the penalty provision of the HITECH Act.

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 items that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits 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, 2011. 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.

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(quarterly amounts are unaudited)

Three months

Twelve months

ended December 31,

ended December 31,

2011

2010

2011

2010

Net revenues

$1,838,774

$1,559,453

$7,500,198

$5,568,185

Operating charges:

  Salaries, wages and benefits

851,207

707,882

3,394,967

2,423,102

  Other operating expenses

331,041

272,873

1,385,680

1,005,288

  Supplies expense

206,230

189,327

821,811

733,093

  Provision for doubtful accounts

143,687

144,288

613,619

546,909

  Depreciation and amortization

75,477

60,849

295,228

223,915

  Lease and rental expense

22,182

22,413

91,765

76,961

  Transaction costs

0

31,105

0

53,220

1,629,824

1,428,737

6,603,070

5,062,488

Income from operations

208,950

130,716

897,128

505,697

Interest expense, net

46,115

41,468

200,792

77,600

Income before income taxes

162,835

89,248

696,336

428,097

Provision for income taxes

54,828

38,432

247,466

152,302

Net income

108,007

50,816

448,870

275,795

Less:  Net income attributable to

noncontrolling interests

12,736

13,634

50,703

45,612

Net income attributable to UHS

$95,271

$37,182

$398,167

$230,183

Basic earnings per share attributable to UHS (a)

$0.99

$0.38

$4.09

$2.37

Diluted earnings per share attributable to UHS (a)

$0.98

$0.38

$4.04

$2.34

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

Three months

Twelve months

ended December 31,

ended December 31,

2011

2010

2011

2010

(a) Earnings per share calculation:

Basic and diluted:

Net income attributable to UHS

$95,271

$37,182

$398,167

$230,183

Less: Net income attributable to unvested restricted share grants

(81)

(92)

(521)

(918)

Net income attributable to UHS - basic and diluted

$95,190

$37,090

$397,646

$229,265

Weighted average number of common shares - basic

96,455

97,125

97,199

96,786

Basic earnings per share attributable to UHS:

$0.99

$0.38

$4.09

$2.37

Weighted average number of common shares

96,455

97,125

97,199

96,786

Add: Other share equivalents

969

1,328

1,338

1,187

Weighted average number of common shares and equiv. - diluted

97,424

98,453

98,537

97,973

Diluted earnings per share attributable to UHS:

$0.98

$0.38

$4.04

$2.34

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule")

For the three months ended December 31, 2011 and 2010

(in thousands, except per share amounts)

(unaudited)

Calculation of "EBITDA"

Three months ended

Three months ended

December 31, 2011

December 31, 2010

Net revenues

$1,838,774

100.0%

$1,559,453

100.0%

Operating charges:

  Salaries, wages and benefits

851,207

46.3%

707,882

45.4%

  Other operating expenses

331,041

18.0%

272,873

17.5%

  Supplies expense

206,230

11.2%

189,327

12.1%

  Provision for doubtful accounts

143,687

7.8%

144,288

9.3%

1,532,165

83.3%

1,314,370

84.3%

Operating income/margin ("EBITDAR")

306,609

16.7%

245,083

15.7%

  Lease and rental expense

22,182

22,413

  Net income attributable to noncontrolling interests

12,736

13,634

Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA")

271,691

14.8%

209,036

13.4%

  Depreciation and amortization

75,477

60,849

  Interest expense, net

46,115

41,468

  Transaction costs

0

31,105

Income before income taxes attributable to UHS

150,099

75,614

Provision for income taxes

54,828

38,432

Net income attributable to UHS

$95,271

$37,182

Calculation of Adjusted Net Income Attributable to UHS

Three months ended

Three months ended

December 31, 2011

December 31, 2010

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Calculation of Adjusted Net Income Attributable to UHS

Net income attributable to UHS

$95,271

$0.98

$37,182

$0.38

Plus/minus adjustments:

  Reduction of reserves relating to prior years for professional and general liability

     self-insured claims, net of income taxes

(6,477)

(0.07)

(17,915)

(0.18)

 Acquisition transaction costs, net of income taxes

-

-

24,933

0.25

 Write-off certain construction costs, net of income taxes

-

-

4,133

0.04

 Charge recorded in connection with split-dollar life insurance agreements

-

-

9,207

0.09

Subtotal after-tax adjustments to net income attributable to UHS

(6,477)

(0.07)

20,358

0.20

Adjusted net income attributable to UHS

$88,794

$0.91

$57,540

$0.58

Universal Health Services, Inc.

Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule")

For the twelve months ended December 31, 2011 and 2010

(in thousands, except per share amounts)

(unaudited)

Calculation of "EBITDA"

Twelve months ended

Twelve months ended

December 31, 2011

December 31, 2010

Net revenues

$7,500,198

100.0%

$5,568,185

100.0%

Operating charges:

  Salaries, wages and benefits

3,394,967

45.3%

2,423,102

43.5%

  Other operating expenses

1,385,680

18.5%

1,005,288

18.1%

  Supplies expense

821,811

11.0%

733,093

13.2%

  Provision for doubtful accounts

613,619

8.2%

546,909

9.8%

6,216,077

82.9%

4,708,392

84.6%

Operating income/margin ("EBITDAR")

1,284,121

17.1%

859,793

15.4%

  Lease and rental expense

91,765

76,961

  Net income attributable to noncontrolling interests

50,703

45,612

Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA")

1,141,653

15.2%

737,220

13.2%

  Depreciation and amortization

295,228

223,915

  Interest expense, net

200,792

77,600

  Transaction costs

0

53,220

Income before income taxes attributable to UHS

645,633

382,485

Provision for income taxes

247,466

152,302

Net income attributable to UHS

$398,167

$230,183

Calculation of Adjusted Net Income Attributable to UHS

Twelve months ended

Twelve months ended

December 31, 2011

December 31, 2010

Per

Per

Amount

Diluted Share

Amount

Diluted Share

Calculation of Adjusted Net Income Attributable to UHS

Net income attributable to UHS

$398,167

$4.04

$230,183

$2.34

Plus/minus adjustments:

  Reduction of reserves relating to prior years for professional and general liability

     self-insured claims, net of income taxes

(6,477)

(0.07)

(28,113)

(0.28)

  Reduction of reserves relating to prior years for workers' compensation

     self-insured claims, net of income taxes

 Acquisition transaction costs, net of income taxes

-

-

38,675

0.39

 Write-off certain construction costs, net of income taxes

-

-

4,133

0.04

 Charge recorded in connection with split-dollar life insurance agreements

-

-

9,207

0.09

  Favorable discrete tax item

-

-

(4,331)

(0.04)

Subtotal after-tax adjustments to net income attributable to UHS

(6,477)

(0.07)

19,571

0.20

Adjusted net income attributable to UHS

$391,690

$3.97

$249,754

$2.54

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

December 31,

December 31,

2011

2010

Assets

Current assets:

   Cash and cash equivalents

$

41,229

$

29,474

   Accounts receivable, net

969,802

837,820

   Supplies

96,775

94,330

   Other current assets

99,859

130,060

   Deferred income taxes

108,324

120,834

   Assets of facilities held for sale

48,916

118,598

         Total current assets

1,364,905

1,331,116

Property and equipment

5,106,160

4,853,972

Less: accumulated depreciation

(1,818,180)

(1,601,005)

3,287,980

3,252,967

Other assets:

   Goodwill

2,627,602

2,589,914

   Deferred charges

111,780

108,660

   Other

272,978

245,279

$

7,665,245

$

7,527,936

Liabilities and Stockholders' Equity

Current liabilities:

   Current maturities of long-term debt

$

2,479

$

3,449

   Accounts payable and accrued liabilities

832,125

819,334

   Liabilities of facilities held for sale

2,329

3,516

         Total current liabilities

836,933

826,299

Other noncurrent liabilities

401,908

380,649

Long-term debt

3,651,428

3,912,102

Deferred income taxes

209,592

173,354

Redeemable noncontrolling interest

218,266

211,761

UHS common stockholders' equity

2,296,352

1,978,772

Noncontrolling interest

50,766

44,999

         Total equity

2,347,118

2,023,771

$

7,665,245

$

7,527,936

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

Twelve months

ended December 31,

2011

2010

Cash Flows from Operating Activities:

 Net income

$448,870

$275,795

 Adjustments to reconcile net income to net

cash provided by operating activities:

Depreciation & amortization

295,861

223,997

Gain on sale of assets and businesses, net

(452)

(1,993)

Stock-based compensation expense

18,225

16,799

 Changes in assets & liabilities, net of effects from

acquisitions and dispositions:

  Accounts receivable

(134,838)

22,726

  Accrued interest

(3,577)

8,408

  Accrued and deferred income taxes

85,792

132

  Other working capital accounts

(28,382)

(26,437)

  Other assets and deferred charges

37,160

11,539

  Other

(1,387)

812

  Accrued insurance expense, net of commercial premiums paid

83,612

19,739

  Payments made in settlement of self-insurance claims

(82,633)

(50,173)

         Net cash provided by operating activities

718,251

501,344

Cash Flows from Investing Activities:

  Property and equipment additions, net of disposals

(285,682)

(239,274)

  Acquisition of property and businesses

(29,466)

(1,958,298)

  Proceeds received from sale of assets and businesses

67,592

21,460

  Costs incurred for purchase and implementation of electronic health records application

(38,249)

(17,971)

         Net cash used in investing activities

(285,805)

(2,194,083)

Cash Flows from Financing Activities:

  Reduction of long-term debt

(381,517)

(1,392,086)

  Additional borrowings

98,100

3,266,146

  Financing costs

(23,608)

(101,815)

  Repurchase of common shares

(60,482)

(11,528)

  Dividends paid

(19,466)

(19,422)

  Issuance of common stock

4,779

3,594

  Profit distributions to noncontrolling interests

(38,497)

(32,456)

  Proceeds from sale of noncontrolling interest in majority owned business

0

600

         Net cash (used in) provided by financing activities

(420,691)

1,713,033

Increase in cash and cash equivalents

11,755

20,294

Cash and cash equivalents, beginning of period

29,474

9,180

Cash and cash equivalents, end of period

$41,229

$29,474

Supplemental Disclosures of Cash Flow Information:

 Interest paid

$176,328

$76,900

 Income taxes paid, net of refunds

$163,029

$152,088

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

% Change

% Change

Quarter Ended

Year Ended

Same Facility:

12/31/2011

12/31/2011

Acute Care Hospitals

Revenues

1.6%

4.4%

Adjusted Admissions

0.3%

-0.1%

Adjusted Patient Days

0.8%

1.7%

Revenue Per Adjusted Admission

1.3%

4.5%

Revenue Per Adjusted Patient Day

0.8%

2.6%

Behavioral Health Hospitals

Revenues

6.3%

6.4%

Adjusted Admissions

8.3%

7.6%

Adjusted Patient Days

4.1%

3.3%

Revenue Per Adjusted Admission

-1.6%

-0.8%

Revenue Per Adjusted Patient Day

2.4%

3.3%

UHS Consolidated

Fourth Quarter Ended

Year Ended

12/31/2011

12/31/2010

12/31/2011

12/31/2010

Revenues

$1,838,774

$1,559,453

$7,500,198

$5,568,185

EBITDA   (1)

271,691

209,036

1,141,653

737,220

EBITDA Margin (1)

14.8%

13.4%

15.2%

13.2%

Cash Flow From Operations

155,749

88,529

718,251

501,344

Days Sales Outstanding

49

43

47

43

Capital Expenditures  

90,278

61,524

285,682

239,274

Total Debt

3,653,907

3,915,551

Shareholders Equity

2,296,352

1,978,772

Total Debt / Total Capitalization

61.4%

66.4%

Total Debt / EBITDA  

3.20

5.31

Debt / Cash From Operations  

5.09

7.81

Acute Care EBITDAR Margin  (2)

13.3%

14.4%

14.7%

14.5%

Behavioral Health EBITDAR Margin  (2)

24.3%

22.1%

25.2%

24.8%

(1)  Net of Minority Interest and before the items indicated on the supplemental schedules

(2)  Before Corporate overhead allocation, minority interest and prior year self insurance reserve adjustments

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE THREE MONTHS ENDED

DECEMBER 31, 2011 AND 2010

AS REPORTED:

ACUTE

BEHAVIORAL HEALTH

12/31/11

12/31/10

%  change

12/31/11

12/31/10

%  change

Hospitals owned and leased

21

21

0.0%

177

179

-1.1%

Average licensed beds

5,763

5,689

1.3%

19,372

13,698

41.4%

Patient days

278,263

284,538

-2.2%

1,276,929

883,460

44.5%

Average daily census

3,024.6

3,092.8

-2.2%

13,879.7

9,602.8

44.5%

Occupancy-licensed beds

52.5%

54.4%

-3.5%

71.6%

70.1%

2.2%

Admissions

62,936

64,655

-2.7%

86,811

56,928

52.5%

Length of stay

4.4

4.4

0.5%

14.7

15.5

-5.2%

Inpatient revenue

$2,901,748

$2,794,619

3.8%

$1,359,378

$916,831

48.3%

Outpatient revenue

1,408,537

1,235,850

14.0%

153,538

111,874

37.2%

Total patient revenue

4,310,285

4,030,469

6.9%

1,512,916

1,028,705

47.1%

Other revenue

23,533

19,136

23.0%

34,804

24,131

44.2%

Gross hospital revenue

4,333,818

4,049,605

7.0%

1,547,720

1,052,836

47.0%

Total deductions

3,345,778

3,076,918

8.7%

707,577

474,299

49.2%

Net hospital revenue

$988,040

$972,687

1.6%

$840,143

$578,537

45.2%

SAME FACILITY:

ACUTE  

BEHAVIORAL HEALTH (1)

12/31/11

12/31/10

%  change

12/31/11

12/31/10

%  change

Hospitals owned and leased

21

21

0.0%

177

177

0.0%

Average licensed beds

5,763

5,689

1.3%

11,761

11,589

1.5%

Patient days

278,263

284,538

-2.2%

785,625

753,719

4.2%

Average daily census

3,024.6

3,092.8

-2.2%

8,539.4

8,192.6

4.2%

Occupancy-licensed beds

52.5%

54.4%

-3.5%

72.6%

70.7%

2.7%

Admissions

62,936

64,655

-2.7%

53,654

49,460

8.5%

Length of stay

4.4

4.4

0.5%

14.6

15.2

-3.9%

 (1) Pennsylvania Clinical School is excluded in both current and prior years. King George School is excluded  

  in both current and prior years from July 1st thru December 31st. Facilities acquired in acquisition of  

  Psychiatric Solutions are included in both current and prior year from December 1st thru December 31st.    

  Brooke Glen and The Pines/Brighton are excluded in both current and prior years.  

UNIVERSAL HEALTH SERVICES, INC.

SELECTED HOSPITAL STATISTICS

FOR THE TWELVE MONTHS ENDED

AS REPORTED:

ACUTE

BEHAVIORAL HEALTH

12/31/11

12/31/10

%  change

12/31/11

12/31/10

%  change

Hospitals owned and leased

21

21

0.0%

177

179

-1.1%

Average licensed beds

5,726

5,689

0.7%

19,388

9,414

105.9%

Patient days

1,151,210

1,155,984

-0.4%

5,190,080

2,504,699

107.2%

Average daily census

3,154.0

3,167.1

-0.4%

14,219.4

6,862.2

107.2%

Occupancy-licensed beds

55.1%

55.7%

-1.1%

73.3%

72.9%

0.6%

Admissions

258,754

264,470

-2.2%

356,856

166,422

114.4%

Length of stay

4.4

4.4

1.8%

14.5

15.1

-3.4%

Inpatient revenue

$12,025,664

$10,890,171

10.4%

$5,529,205

$2,566,366

115.4%

Outpatient revenue

5,629,420

4,771,070

18.0%

608,785

350,192

73.8%

Total patient revenue

17,655,084

15,661,241

12.7%

6,137,990

2,916,558

110.5%

Other revenue

80,434

71,004

13.3%

139,925

46,638

200.0%

Gross hospital revenue

17,735,518

15,732,245

12.7%

6,277,915

2,963,196

111.9%

Total deductions

13,663,948

11,830,430

15.5%

2,876,797

1,327,741

116.7%

Net hospital revenue

$4,071,570

$3,901,815

4.4%

$3,401,118

$1,635,455

108.0%

SAME FACILITY:

ACUTE  

BEHAVIORAL HEALTH (1)

12/31/11

12/31/10

%  change

12/31/11

12/31/10

%  change

Hospitals owned and leased

21

21

0.0%

177

177

0.0%

Average licensed beds

5,725

5,689

0.6%

8,966

8,780

2.1%

Patient days

1,151,210

1,155,984

-0.4%

2,431,375

2,350,418

3.4%

Average daily census

3,154.0

3,167.1

-0.4%

6,661.3

6,439.5

3.4%

Occupancy-licensed beds

55.1%

55.7%

-1.0%

74.3%

73.3%

1.3%

Admissions

258,754

264,470

-2.2%

171,141

158,911

7.7%

Length of stay

4.4

4.4

1.8%

14.2

14.8

-3.9%

 (1) Pennsylvania Clinical School is excluded in both current and prior years. King George School is excluded  

  in both current and prior years from July 1st thru December 31st. Facilities acquired in acquisition of  

  Psychiatric Solutions are included in both current and prior year from December 1st thru December 31st.    

  Brooke Glen and The Pines/Brighton are excluded in both current and prior years.  

SOURCE Universal Health Services, Inc.



RELATED LINKS

http://www.uhsinc.com