2014

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:

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.



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