Universal Health Services, Inc. Reports 2015 Fourth Quarter And Full Year Earnings And 2016 Earnings Guidance

Consolidated Results of Operations, As Reported and As Adjusted - Three-month periods ended December 31, 2015 and 2014:

Feb 25, 2016, 16:16 ET from Universal Health Services, Inc.

KING OF PRUSSIA, Pa., Feb. 25, 2016 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $173.7 million, or $1.74 per diluted share, during the fourth quarter of 2015 as compared to $172.8 million, or $1.71 per diluted share, during the comparable quarter of 2014.  Net revenues increased 6.4% to $2.32 billion during the fourth quarter of 2015 as compared to $2.18 billion during the fourth quarter of 2014.

For the three-month period ended December 31, 2015, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule"), increased approximately 12% to $170.7 million, or $1.71 per diluted share, as compared to $152.0 million, or $1.51 per diluted share, during the fourth quarter of 2014.

As reflected on the Supplemental Schedule, included in our reported results during the fourth quarters of 2015 and 2014, are net favorable after-tax impacts of approximately $3.1 million, or $.03 per diluted share, during the fourth quarter of 2015 and $8.6 million, or $.08 per diluted share, during the fourth quarter of 2014, 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. 

Also included in our reported results during the fourth quarter of 2014, as reflected on the Supplemental Schedule, was an aggregate favorable after-tax impact of approximately $12.2 million, or $.12 per diluted share, consisting of: (i) a favorable after-tax impact of $11.7 million, or $.12 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2014, based upon a reserve analysis, and; (ii) an after-tax impact of $493,000 relating to the charge incurred during 2014 in connection with the settlement of a legal matter.    

Consolidated Results of Operations, As Reported and As Adjusted – Twelve-month periods ended December 31, 2015 and 2014:

Reported net income attributable to UHS was $680.5 million, or $6.76 per diluted share, during the year ended December 31, 2015 as compared to $545.3 million, or $5.42 per diluted share, during the 2014 full year.  Net revenues increased 10.2% to $9.04 billion during the twelve-month period of 2015 as compared to $8.21 billion during the comparable twelve-month period of 2014. 

For the year ended December 31, 2015, our adjusted net income attributable to UHS, as calculated on the Supplemental Schedule, increased approximately 19% to $692.0 million, or $6.87 per diluted share, as compared to $581.8 million, or $5.78 per diluted share, during the year ended December 31, 2014.

As reflected on the Supplemental Schedule, included in our reported results during the years ended December 31, 2015 and 2014, are net unfavorable after-tax impacts of approximately $11.5 million, or $.11 per diluted share, during 2015 and $4.7 million, or $.04 per diluted share, during 2014, related to the implementation of EHR applications at our acute care hospitals. 

Also included in our reporting results during the year ended December 31, 2014, as reflected on the Supplemental Schedule, was a net unfavorable after-tax impact of approximately $31.7 million, or $.32 per diluted share, consisting of: (i) an after-tax charge of $27.1 million, or $.27 per diluted share, incurred in connection with the settlement of the Garden City Employees' Retirement System v. Psychiatric Solutions, Inc. legal matter; (ii) an aggregate after-tax charge of $22.7 million, or $.23 per diluted share, recorded in connection with the costs related to extinguishment of debt resulting from various financing transactions that occurred during the third quarter of 2014; (iii) a favorable after-tax impact of $11.7 million, or $.12 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2014, based upon a reserve analysis, and; (iv) a favorable after-tax impact of $6.3 million, or $.06 per diluted share, resulting from a gain realized on the sale of a non-operating investment.

Acute Care Services – Three and twelve-month periods ended December 31, 2015 and 2014: During the fourth quarter of 2015, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 4.8% and adjusted patient days increased 3.9%, as compared to the fourth quarter of 2014. Net revenues at these facilities increased 7.3% during the fourth quarter of 2015 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 3.3% while net revenue per adjusted patient day increased 4.2% during the fourth quarter of 2015 as compared to the comparable quarter of 2014. On a same facility basis, the operating margin at our acute care hospitals increased to 17.2% during the fourth quarter of 2015 as compared to 16.8% during the fourth quarter of 2014. We define operating margin as net revenues less salaries, wages and benefits, other operating expenses and supplies expense (excluding the impact of EHR and other items as indicated on the Supplemental Schedules).

During the year ended December 31, 2015, at our acute care hospitals on a same facility basis, adjusted admissions increased 5.4% and adjusted patient days increased 5.5%, as compared to the 2014 full year. Net revenues at these facilities increased 8.7% during the 2015 full year as compared to the 2014 full year. At these facilities, net revenue per adjusted admission increased 3.9% while net revenue per adjusted patient day increased 3.7% during 2015 as compared to 2014. On a same facility basis, the operating margin at our acute care hospitals increased to 18.5% during the year ended December 31, 2015 as compared to 17.9% during the 2014 full year.

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 $332 million and $284 million during the three-month periods ended December 31, 2015 and 2014, respectively, and $1.20 billion and $1.14 billion during the twelve-month periods ended December 31, 2015 and 2014, respectively.  The provision for doubtful accounts at our acute care hospitals amounted to approximately $172 million and $130 million during the three-month periods ended December 31, 2015 and 2014, respectively, and $631 million and $590 million during the twelve-month periods ended December 31, 2015 and 2014, 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 third and fourth quarters of 2015, as compared to the comparable quarters of 2014. During the year ended December 31, 2015, as compared to the 2014 full year, our acute care hospitals experienced a decrease in the aggregate of charity care, uninsured discounts and provision for doubtful accounts, as a percentage of gross charges.       

Behavioral Health Care Services – Three and twelve-month periods ended December 31, 2015 and 2014: During the fourth quarter of 2015, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 0.2% while adjusted patient days increased 0.7% compared to the fourth quarter of 2014. At these facilities, net revenue per adjusted admission increased 3.1% while net revenue per adjusted patient day increased 2.5% during the fourth quarter of 2015 as compared to the comparable quarter in 2014. On a same facility basis, our behavioral health services' net revenues increased 3.6% during the fourth quarter of 2015, as compared to the comparable quarter in 2014, and the operating margins were 27.1% and 27.9% during the three-month periods ended December 31, 2015 and 2014, respectively.   

During the twelve-month period ended December 31, 2015, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 2.9% while adjusted patient days increased 1.2% compared to the 2014 full year. At these facilities, net revenue per adjusted admission increased 1.8% during the year ended December 31, 2015 while net revenue per adjusted patient day increased 3.4% during the twelve-month period ended December 31, 2015 as compared to the 2014 full year. On a same facility basis, our behavioral health services' net revenues increased 5.0% during the full year of 2015, as compared to 2014, and the operating margins remained unchanged at 27.9% during each of the years ended December 31, 2015 and 2014.

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 fourth quarter of 2015, we repurchased 478,118 shares at an aggregate cost of $57.8 million. Since inception of the program through December 31, 2015, we repurchased approximately 1.9 million shares at an aggregate cost of approximately $224.2 million.  Subsequent to December 31, 2015, we repurchased an additional 886,782 shares at an aggregate cost of $99.0 million increasing our aggregate program inception to date stock repurchases to approximately 2.8 million shares at an aggregate cost of approximately $323.2 million.

2016 Full Year Guidance: Our estimated range of adjusted net income attributable to UHS for the year ended December 31, 2016, is $7.12 to $7.58 per diluted share. This guidance range represents an increase of approximately 4% to 10% over the adjusted net income attributable to UHS of $6.87 per diluted share for the year ended December 31, 2015, as calculated on the attached Supplemental Schedule.  The range excludes the below-mentioned unfavorable EHR impact of $.17 per diluted share expected during 2016.  

During 2016, our net revenues are estimated to be approximately $9.75 billion to $9.85 billion representing an increase of approximately 8% to 9% over our 2015 net revenues of approximately $9.04 billion.   

During 2016, we expect to record approximately $5 million of EHR incentive income and approximately $36 million of EHR-related depreciation and amortization expense resulting in a net unfavorable after-tax (and after income attributable to noncontrolling interest) impact of approximately $17 million, or $.17 per diluted share.       

This guidance range also excludes the impact of future 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, costs related to extinguishment of debt, reserves for settlements, legal judgments and lawsuits, impairments of long-lived assets, impact of share repurchases 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 26, 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), 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 that are nonrecurring or non-operational in nature including items such as, 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. 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.

We incur health-care related taxes ("Provider Taxes") imposed by states in the form of a licensing fee, assessment or other mandatory payment which are related to: (i) healthcare items or services; (ii) the provision of, or the authority to provide, the health care items or services, or; (iii) the payment for the health care items or services.  Such Provider Taxes are subject to various federal regulations that limit the scope and amount of the taxes that can be levied by states in order to secure federal matching funds as part of their respective state Medicaid programs. We derive a related Medicaid reimbursement benefit from assessed Provider Taxes in the form of Medicaid claims based payment increases and/or lump sum Medicaid supplemental payments. Under these programs, including the impact of uncompensated care and upper payment limit programs, and the Texas Delivery System Reform Incentive program, we earned revenues (before Provider Tax assessments) of approximately $86 million and $117 million during the three-month periods ended December 31, 2015 and 2014, respectively, and $307 million and $295 million during the twelve-month periods ended December 31, 2015 and 2014, respectively. These revenues were offset by assessments of $40 million and $69 million during the fourth quarters of 2015 and 2014, respectively, and $137 million and $140 million during the twelve-month periods ended December 31, 2015 and 2014, respectively, which are recorded in other operating expenses on the attached Consolidated Statement of Income. Prior to 2015, these assessments were recorded as a reduction to our net revenues. Accordingly, to conform with current year presentation, these assessments were reclassified on our Consolidated Statement of Income for the three and twelve-month periods ended December 31, 2014.    

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


Twelve months


ended December 31,


ended December 31,


2015


2014


2015


2014









Net revenues before provision for doubtful accounts

$2,512,872


$2,333,339


$9,784,724


$8,904,071

  Less: Provision for doubtful accounts

197,633


157,048


741,273


698,983

Net revenues

2,315,239


2,176,291


9,043,451


8,205,088









Operating charges:








   Salaries, wages and benefits

1,079,394


994,593


4,212,387


3,845,461

   Other operating expenses

548,745


528,417


2,119,805


1,922,743

   Supplies expense

252,109


233,413


974,088


895,693

   Depreciation and amortization

102,921


98,118


398,618


375,624

   Lease and rental expense

24,342


23,337


94,973


93,993

   Electronic health records incentive income

(14,064)


(23,873)


(15,815)


(27,902)

   Costs related to extinguishment of debt

0


0


0


36,171


1,993,447


1,854,005


7,784,056


7,141,783









Income from operations

321,792


322,286


1,259,395


1,063,305









Interest expense, net

28,643


31,225


113,494


133,638









Income before income taxes

293,149


291,061


1,145,901


929,667









Provision for income taxes

101,832


100,569


395,203


324,671









Net income

191,317


190,492


750,698


604,996









Less:  Income attributable to








noncontrolling interests

17,568


17,695


70,170


59,653









Net income attributable to UHS

$173,749


$172,797


$680,528


$545,343

















































Basic earnings per share attributable to UHS (a)

$1.76


$1.75


$6.89


$5.52









Diluted earnings per share attributable to UHS (a)

$1.74


$1.71


$6.76


$5.42









 

 

 

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,


2015


2014


2015


2014









(a) Earnings per share calculation:
















Basic and diluted:








Net income attributable to UHS

$173,749


$172,797


$680,528


$545,343

Less: Net income attributable to unvested restricted share grants

(60)


(72)


(281)


(236)

Net income attributable to UHS - basic and diluted

$173,689


$172,725


$680,247


$545,107









Weighted average number of common shares - basic

98,416


98,808


98,797


98,826









Basic earnings per share attributable to UHS:

$1.76


$1.75


$6.89


$5.52









Weighted average number of common shares

98,416


98,808


98,797


98,826

Add: Other share equivalents

1,627


1,943


1,897


1,718

Weighted average number of common shares and equiv. - diluted

100,043


100,751


100,694


100,544









Diluted earnings per share attributable to UHS:

$1.74


$1.71


$6.76


$5.42









 

 

 

Universal Health Services, Inc.


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


For the three months ended December 31, 2015 and 2014


(in thousands, except per share amounts)


(unaudited)





























Calculation of "EBITDA"












Three months ended


Three months ended



December 31, 2015


December 31, 2014




















Net revenues before provision for doubtful accounts

$2,512,872




$2,333,339




  Less: Provision for doubtful accounts

197,633




157,048




Net revenues

2,315,239


100.0%


2,176,291


100.0%











Operating charges:









   Salaries, wages and benefits

1,079,394


46.6%


994,593


45.7%


   Other operating expenses

548,745


23.7%


528,417


24.3%


   Supplies expense

252,109


10.9%


233,413


10.7%


   EHR incentive income

(14,064)


-0.6%


(23,873)


-1.1%



1,866,184


80.6%


1,732,550


79.6%











Operating income/margin ("EBITDAR")

449,055


19.4%


443,741


20.4%











   Lease and rental expense

24,342




23,337




   Income attributable to noncontrolling interests

17,568




17,695













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

407,145


17.6%


402,709


18.5%











   Depreciation and amortization

102,921




98,118




   Costs related to extinguishment of debt

0




0




   Interest expense, net

28,643




31,225













Income before income taxes 

275,581




273,366













Provision for income taxes

101,832




100,569




Net income attributable to UHS

$173,749




$172,797






















Calculation of Adjusted Net Income Attributable to UHS












Three months ended


Three months ended



December 31, 2015


December 31, 2014





Per




Per



Amount


Diluted Share


Amount


Diluted Share


Calculation of Adjusted Net Income Attributable to UHS - including and excluding EHR impact:









Net income attributable to UHS

$173,749


$1.74


$172,797


$1.71


Plus/minus adjustments:









  Litigation settlement, net of income taxes

-


-


(493)


-


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









      self-insured claims, net of income taxes

-


-


(11,707)


(0.12)


Subtotal after-tax adjustments to net income attributable to UHS

-


-


(12,200)


(0.12)


Adjusted net income attributable to UHS - including Electronic Health Records ("EHR") impact

$173,749


$1.74


$160,597


$1.59











Plus/minus impact of EHR implementation: 









EHR-related incentive income, pre-tax

(14,064)




(23,873)




EHR-related depreciation & amortization, pre-tax

9,306




9,361




EHR-related minority interest in earnings of consolidated entities, pre-tax

(152)




727




Income tax provision on EHR-related items 

1,830




5,147




After-tax impact of EHR-related items

(3,080)


(0.03)


(8,638)


(0.08)


Adjusted net income attributable to UHS

$170,669


$1.71


$151,959


$1.51











 

 

 

Universal Health Services, Inc.


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


For the twelve months ended December 31, 2015 and 2014


(in thousands, except per share amounts)


(unaudited)





























Calculation of "EBITDA"












Twelve months ended


Twelve months ended



December 31, 2015


December 31, 2014




















Net revenues before provision for doubtful accounts

$9,784,724




$8,904,071




  Less: Provision for doubtful accounts

741,273




698,983




Net revenues

9,043,451


100.0%


8,205,088


100.0%











Operating charges:









   Salaries, wages and benefits

4,212,387


46.6%


3,845,461


46.9%


   Other operating expenses

2,119,805


23.4%


1,922,743


23.4%


   Supplies expense

974,088


10.8%


895,693


10.9%


   EHR incentive income

(15,815)


-0.2%


(27,902)


-0.3%



7,290,465


80.6%


6,635,995


80.9%











Operating income/margin ("EBITDAR")

1,752,986


19.4%


1,569,093


19.1%











   Lease and rental expense

94,973




93,993




   Income attributable to noncontrolling interests

70,170




59,653













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

1,587,843


17.6%


1,415,447


17.3%











   Depreciation and amortization

398,618




375,624




   Costs related to extinguishment of debt

0




36,171




   Interest expense, net

113,494




133,638













Income before income taxes 

1,075,731




870,014













Provision for income taxes

395,203




324,671




Net income attributable to UHS

$680,528




$545,343






















Calculation of Adjusted Net Income Attributable to UHS












Twelve months ended


Twelve months ended



December 31, 2015


December 31, 2014





Per




Per



Amount


Diluted Share


Amount


Diluted Share


Calculation of Adjusted Net Income Attributable to UHS - including and excluding EHR impact:









Net income attributable to UHS

$680,528


$6.76


$545,343


$5.42


Plus/minus adjustments:









  Gain on sale of investment, net of income taxes

-


-


(6,330)


(0.06)


  Litigation settlement, net of income taxes

-


-


27,077


0.27


  Costs related to extinguishment of debt, net of income taxes

-


-


22,665


0.23


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









      self-insured claims, net of income taxes

-


-


(11,707)


(0.12)


Subtotal after-tax adjustments to net income attributable to UHS

-


-


31,705


0.32


Adjusted net income attributable to UHS - including Electronic Health Records ("EHR") impact

$680,528


$6.76


$577,048


$5.74











Plus/minus impact of EHR implementation: 









EHR-related incentive income, pre-tax

(15,815)




(27,902)




EHR-related depreciation & amortization, pre-tax

37,224




37,273




EHR-related minority interest in earnings of consolidated entities, pre-tax

(3,044)




(1,844)




Income tax provision on EHR-related items 

(6,846)




(2,822)




After-tax impact of EHR-related items

11,519


0.11


4,705


0.04


Adjusted net income attributable to UHS

$692,047


$6.87


$581,753


$5.78











 

 

 

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)










Three months


Twelve months


ended December 31,


ended December 31,


2015


2014


2015


2014









Net income

$191,317


$190,492


$750,698


$604,996

Other comprehensive income (loss):








   Unrealized derivative gains (loss) on cash flow hedges

9,920


4,746


4,970


17,668

   Amortization of terminated hedge

(84)


(84)


(336)


(336)

   Minimum pension liability

2,177


(14,270)


2,177


(14,270)

   Foreign currency translation adjustment

(1,632)


75


(1,728)


(2,431)

Other comprehensive income before tax

10,381


(9,533)


5,083


631

Income tax expense related to items of other comprehensive income

4,510


(3,632)


2,980


1,053

Total other comprehensive income, net of tax

5,871


(5,901)


2,103


(422)









Comprehensive income

197,188


184,591


752,801


604,574

Less: Comprehensive income attributable to noncontrolling interests

17,568


17,695


70,170


59,653

Comprehensive income attributable to UHS

$179,620


$166,896


$682,631


$544,921









 

 

 

Universal Health Services, Inc.


Condensed Consolidated Balance Sheets


(in thousands)


(unaudited)













December 31,



December 31,





2015



2014


Assets








Current assets:








    Cash and cash equivalents


$

61,228


$

32,069


    Accounts receivable, net



1,302,429



1,282,735


    Supplies



116,037



108,115


    Deferred income taxes



135,120



114,565


    Other current assets



103,490



77,654


          Total current assets



1,718,304



1,615,138










Property and equipment



6,530,569



6,212,030


Less: accumulated depreciation



(2,694,591)



(2,532,341)





3,835,978



3,679,689










Other assets:








    Goodwill



3,596,114



3,291,213


    Deferred charges



35,357



40,319


    Other



448,360



348,084




$

9,634,113


$

8,974,443










Liabilities and Stockholders' Equity








Current liabilities:








    Current maturities of long-term debt


$

62,722


$

68,319


    Accounts payable and accrued liabilities



1,033,697



1,113,062


    Federal and state taxes



3,987



1,446


          Total current liabilities



1,100,406



1,182,827










Other noncurrent liabilities



278,834



268,555


Long-term debt



3,387,303



3,210,215


Deferred income taxes



315,900



282,214










Redeemable noncontrolling interest



242,509



239,552










UHS common stockholders' equity



4,249,647



3,735,946


Noncontrolling interest



59,514



55,134


          Total equity



4,309,161



3,791,080












$

9,634,113


$

8,974,443










 

 

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


Twelve months


ended December 31,


2015


2014





Cash Flows from Operating Activities:




  Net income

$750,698


$604,996

  Adjustments to reconcile net income to net 




cash provided by operating activities:




Depreciation & amortization

398,618


375,624

Gains on sales of assets and businesses, net of losses

(3,615)


(7,837)

Stock-based compensation expense

39,971


31,092

Costs related to extinguishment of debt

0


19,730

  Changes in assets & liabilities, net of effects from




acquisitions and dispositions:




   Accounts receivable

(45,814)


(105,708)

   Accrued interest

(693)


4,400

   Accrued and deferred income taxes 

(34,394)


33,920

   Other working capital accounts 

(125,556)


73,912

   Other assets and deferred charges

6,631


13,667

   Other 

23,295


2,449

   Accrued insurance expense, net of commercial premiums paid

90,895


59,276

   Payments made in settlement of self-insurance claims

(79,138)


(69,645)

          Net cash provided by operating activities

1,020,898


1,035,876





Cash Flows from Investing Activities:




   Property and equipment additions, net of disposals

(379,321)


(391,150)

   Acquisition of property and businesses

(533,655)


(431,386)

   Proceeds received from sales of assets and businesses

3,391


15,178

   Costs incurred for purchase and implementation of electronic health records application

0


(13,488)

   Increase in insurance subsidiary investments

(3,300)


(12,000)

          Net cash used in investing activities

(912,885)


(832,846)





Cash Flows from Financing Activities:




   Reduction of long-term debt

(68,166)


(879,129)

   Additional borrowings

234,400


830,000

   Financing costs

(515)


(14,976)

   Repurchase of common shares

(209,782)


(100,749)

   Dividends paid

(39,532)


(29,665)

   Issuance of common stock

8,441


6,863

   Excess income tax benefits related to stock-based compensation

47,364


33,912

   Profit distributions to noncontrolling interests

(62,220)


(33,680)

   Proceeds received from sale/leaseback of real property

12,765


0

          Net cash used in financing activities

(77,245)


(187,424)





   Effect of exchange rate changes on cash and cash equivalents

(1,609)


(775)

Increase in cash and cash equivalents

29,159


14,831

Cash and cash equivalents, beginning of period

32,069


17,238

Cash and cash equivalents, end of period

$61,228


$32,069





Supplemental Disclosures of Cash Flow Information:




  Interest paid, including early redemption premium and original issue discount write-off in 2014

$107,054


$130,279





  Income taxes paid, net of refunds

$380,658


$258,612





  Noncash purchases of property and equipment

$49,086


$35,469





 

 

 

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)




































 % Change 


 % Change 








Quarter ended


12 months ended



Same Facility:





12/31/2015


12/31/2015













Acute Care Hospitals










Revenues





7.3%


8.7%



Adjusted Admissions





4.8%


5.4%



Adjusted Patient Days





3.9%


5.5%



Revenue Per Adjusted Admission




3.3%


3.9%



Revenue Per Adjusted Patient Day




4.2%


3.7%

































Behavioral Health Hospitals









Revenues





3.6%


5.0%



Adjusted Admissions





0.2%


2.9%



Adjusted Patient Days





0.7%


1.2%



Revenue Per Adjusted Admission




3.1%


1.8%



Revenue Per Adjusted Patient Day




2.5%


3.4%











































UHS Consolidated



Fourth quarter ended


Twelve months ended




12/31/2015


12/31/2014


12/31/2015


12/31/2014











Revenues



$2,315,239


$2,176,291


$9,043,451


$8,205,088

EBITDA   (1)



407,145


402,709


1,587,843


1,415,447

EBITDA Margin (1)



17.6%


18.5%


17.6%


17.3%





















Cash Flow From Operations



224,399


346,322


1,020,898


1,035,876

Days Sales Outstanding



52


54


53


57

Capital Expenditures  



109,743


81,789


379,321


391,150











Debt 







3,450,025


3,278,534

UHS' Shareholders Equity







4,249,647


3,735,946

Debt / Total Capitalization







44.8%


46.7%

Debt / EBITDA  (2)







2.17


2.32

Debt / Cash From Operations  (2)






3.38


3.16





















Acute Care EBITDAR Margin  (3) 

17.2%


16.8%


18.5%


17.9%

Behavioral Health EBITDAR Margin  (3) 

27.1%


27.9%


27.9%


27.9%





















(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


December 31, 2015 and 2014






















AS REPORTED:
































                       ACUTE



               BEHAVIORAL HEALTH




12/31/15

12/31/14

%  change


12/31/15

12/31/14

%  change












Hospitals owned and leased


24

24

0.0%


208

203

2.5%


Average licensed beds


5,854

5,769

1.5%


21,628

20,925

3.4%


Patient days


299,524

292,009

2.6%


1,473,065

1,414,337

4.2%


Average daily census


3,255.7

3,174.0

2.6%


16,011.6

15,373.2

4.2%


Occupancy-licensed beds


55.6%

55.0%

1.1%


74.0%

73.5%

0.7%


Admissions


65,802

63,578

3.5%


108,646

106,845

1.7%


Length of stay


4.6

4.6

-0.9%


13.6

13.2

2.4%












Inpatient revenue


$4,214,646

$3,725,782

13.1%


$1,891,006

$1,716,120

10.2%


Outpatient revenue


2,472,740

2,063,316

19.8%


215,969

203,682

6.0%


Total patient revenue


6,687,386

5,789,098

15.5%


2,106,975

1,919,802

9.7%


Other revenue


94,222

88,608

6.3%


49,363

50,041

-1.4%


Gross hospital revenue


6,781,608

5,877,706

15.4%


2,156,338

1,969,843

9.5%












Total deductions


5,423,707

4,623,897

17.3%


1,003,219

894,753

12.1%












Net hospital revenue before 










  provision for doubtful accounts


1,357,901

1,253,809

8.3%


1,153,119

1,075,090

7.3%












Provision for doubtful accounts


172,134

130,065

32.3%


25,498

26,921

-5.3%












Net hospital revenue 


$1,185,767

$1,123,744

5.5%


$1,127,621

$1,048,169

7.6%






















SAME FACILITY:






















                      ACUTE



             BEHAVIORAL HEALTH (1)




12/31/15

12/31/14

%  change


12/31/15

12/31/14

%  change












Hospitals owned and leased


24

24

0.0%


198

198

0.0%


Average licensed beds


5,854

5,769

1.5%


20,849

20,665

0.9%


Patient days


299,524

292,009

2.6%


1,418,346

1,400,341

1.3%


Average daily census


3,255.7

3,174.0

2.6%


15,416.8

15,221.1

1.3%


Occupancy-licensed beds


55.6%

55.0%

1.1%


73.9%

73.7%

0.4%


Admissions


65,802

63,578

3.5%


107,258

106,440

0.8%


Length of stay


4.6

4.6

-0.9%


13.2

13.2

0.5%






















(1) Timberlawn of Garland, ALPHA UK, Taunton UK and the Foundations Recovery Network entities are excluded in both



    current and prior years.










 

 

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the twelve months ended

December 31, 2015 and 2014



















AS REPORTED:





























                       ACUTE



               BEHAVIORAL HEALTH



12/31/15

12/31/14

%  change


12/31/15

12/31/14

%  change










Hospitals owned and leased


24

24

0.0%


208

203

2.5%

Average licensed beds


5,832

5,776

1.0%


21,202

20,231

4.8%

Patient days


1,218,991

1,167,726

4.4%


5,835,134

5,518,660

5.7%

Average daily census


3,339.7

3,199.2

4.4%


15,986.7

15,119.6

5.7%

Occupancy-licensed beds


57.3%

55.4%

3.4%


75.4%

74.7%

0.9%

Admissions


261,727

251,165

4.2%


447,007

426,510

4.8%

Length of stay


4.7

4.6

1.2%


13.1

12.9

1.2%










Inpatient revenue


$16,847,944

$14,943,102

12.7%


$7,456,397

$6,689,753

11.5%

Outpatient revenue


9,604,952

8,147,031

17.9%


839,884

784,309

7.1%

Total patient revenue


26,452,896

23,090,133

14.6%


8,296,281

7,474,062

11.0%

Other revenue


362,620

261,835

38.5%


206,563

185,997

11.1%

Gross hospital revenue


26,815,516

23,351,968

14.8%


8,502,844

7,660,059

11.0%










Total deductions


21,551,939

18,583,481

16.0%


3,992,367

3,538,873

12.8%










Net hospital revenue before 









  provision for doubtful accounts


5,263,577

4,768,487

10.4%


4,510,477

4,121,186

9.4%










Provision for doubtful accounts


631,013

590,384

6.9%


110,142

108,970

1.1%










Net hospital revenue 


$4,632,564

$4,178,103

10.9%


$4,400,335

$4,012,216

9.7%



















SAME FACILITY:




















                      ACUTE



             BEHAVIORAL HEALTH (1)



12/31/15

12/31/14

%  change


12/31/15

12/31/14

%  change










Hospitals owned and leased


24

24

0.0%


198

198

0.0%

Average licensed beds


5,832

5,776

1.0%


20,103

19,931

0.9%

Patient days


1,218,991

1,167,726

4.4%


5,557,381

5,469,817

1.6%

Average daily census


3,339.7

3,199.2

4.4%


15,225.7

14,985.8

1.6%

Occupancy-licensed beds


57.3%

55.4%

3.4%


75.7%

75.2%

0.7%

Admissions


261,727

251,165

4.2%


439,219

425,625

3.2%

Length of stay


4.7

4.6

0.2%


12.7

12.9

-1.5%



















(1) Timberlawn of Garland, ALPHA UK, Taunton UK and the Foundations Recovery Network entities are excluded in both


    current and prior years.









 

 

 

SOURCE Universal Health Services, Inc.



RELATED LINKS

http://www.uhsinc.com