Universal Health Services, Inc. Reports 2015 Second Quarter Financial Results and Increases 2015 Full Year Earnings Guidance

Consolidated Results of Operations, As Reported and As Adjusted - Three-month periods ended June 30, 2015 and 2014:

Jul 30, 2015, 17:01 ET from Universal Health Services, Inc.

KING OF PRUSSIA, Pa., July 30, 2015 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $182.2 million, or $1.80 per diluted share, during the second quarter of 2015 as compared to $151.7 million, or $1.51 per diluted share, during the comparable quarter of 2014.  Net revenues increased 10.9% to $2.28 billion during the second quarter of 2015 as compared to $2.05 billion during the second quarter of 2014.

For the three-month period ended June 30, 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 20% to $186.6 million, or $1.85 per diluted share, as compared to $155.6 million, or $1.55 per diluted share, during the second quarter of 2014.

As reflected on the Supplemental Schedule, included in our reported results during the second quarters of 2015 and 2014 are net unfavorable after-tax impacts of approximately $4.4 million, or $.05 per diluted share, during the second quarter of 2015 and $3.9 million, or $.04 per diluted share, during the second 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. 

Consolidated Results of Operations, As Reported and As Adjusted – Six-month periods ended June 30, 2015 and 2014:

Reported net income attributable to UHS was $356.5 million, or $3.54 per diluted share, during the first six months of 2015 as compared to $289.7 million, or $2.89 per diluted share, during the comparable period of 2014. Net revenues increased 12.8% to $4.50 billion during the first six months of 2015 as compared to $3.99 billion during the comparable period of 2014. 

For the six-month period ended June 30, 2015, our adjusted net income attributable to UHS, as calculated on the attached Supplemental Schedule, increased approximately 25% to $366.1 million, or $3.63 per diluted share, as compared to $292.3 million, or $2.92 per diluted share, during the first six months of 2014.

As reflected on the Supplemental Schedule, included in our reported results during the first six months of 2015 is a net unfavorable after-tax impact of approximately $9.6 million, or $.09 per diluted share, related to the incentive income and depreciation and amortization expense recorded in connection with the implementation of EHR applications at our acute care hospitals.  As reflected on the Supplemental Schedule, included in our reported results during the six-month period ended June 30, 2014 was: (i) an aggregate net unfavorable after-tax impact of approximately $8.9 million, or $.09 per diluted share, related to the incentive income and depreciation and amortization expense recorded in connection with the implementation of EHR applications, and; (ii) 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 during the first quarter of 2014.  

Acute Care Services – Three and six-month periods ended June 30, 2015 and 2014:

During the second quarter of 2015, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 5.7% and adjusted patient days increased 5.2%, as compared to the second quarter of 2014. Net revenues at these facilities increased 8.4% during the second quarter of 2015 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 3.2% while net revenue per adjusted patient day increased 3.7% during the second 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 19.8% during the second quarter of 2015 as compared to 18.7% during the second quarter of 2014. We define operating margin as net revenues less salaries, wages and benefits, other operating expenses and supplies expense (excluding the EHR impact, as indicated on the Supplemental Schedule).

During the first six months of 2015, at our acute care hospitals on a same facility basis, adjusted admissions increased 5.7% and adjusted patient days increased 6.3%, as compared to the comparable period of 2014. Net revenues at these facilities increased 10.2% during the first six months of 2015 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted admission increased 4.6% while net revenue per adjusted patient day increased 4.0% during the first six months of 2015 as compared to the comparable period of 2014. On a same facility basis, the operating margin at our acute care hospitals increased to 20.7% during the first six months of 2015 as compared to 19.0% during the comparable period of 2014.

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 $263 million and $266 million during the three-month periods ended June 30, 2015 and 2014, respectively, and $550 million and $586 million during the six-month periods ended June 30, 2015 and 2014, respectively.  The provision for doubtful accounts at our acute care hospitals amounted to approximately $149 million during each of the three-month periods ended June 30, 2015 and 2014, and $274 million and $331 million during the six-month periods ended June 30, 2015 and 2014, respectively.   During the three and six-month periods ended June 30, 2015, as compared to the comparable periods of 2014, 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 six-month periods ended June 30, 2015 and 2014:

During the second quarter of 2015, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 4.2% while adjusted patient days increased 0.6% compared to the second quarter of 2014. At these facilities, net revenue per adjusted admission increased 0.5% and net revenue per adjusted patient day increased 4.1% during the second quarter of 2015 over the comparable quarter in 2014. On a same facility basis, our behavioral health services' net revenues increased 5.1% during the second quarter of 2015, as compared to the comparable quarter in 2014, and the operating margins were 28.5% and 28.4% during the three-month periods ended June 30, 2015 and 2014, respectively.   

During the six-month period ended June 30, 2015, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 5.0% while adjusted patient days increased 1.5% compared to the comparable period of 2014. At these facilities, net revenue per adjusted admission increased 0.5% and net revenue per adjusted patient day increased 3.9% during the first six months of 2015 over the comparable period of 2014. On a same facility basis, our behavioral health services' net revenues increased 5.7% during the first six months of 2015, as compared to the comparable period of 2014, and the operating margins were 28.6% and 28.1% during the six-month periods ended June 30, 2015 and 2014, respectively.

2015 Full Year Earnings Guidance Increase:

Based upon the operating trends and financial results experienced during the first six months of 2015, we are increasing our estimated range of adjusted net income attributable to UHS, for the year ended December 31, 2015, to $6.75 to $7.15 per diluted share. This revised guidance, which excludes the expected EHR impact for the year, represents an increase of approximately 9% to 10% from the previously provided range of $6.15 to $6.55 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.

Share Repurchase Program:

During the third quarter of 2014, our Board of Directors authorized a stock repurchase program whereby, from time to time as conditions allow, we may spend up to $400 million to purchase shares of our Class B Common Stock on the open market or in negotiated private transactions.  In conjunction with this program, during the second quarter of 2015, we repurchased 256,440 shares at an aggregate cost of $30.8 million. Since inception of the program through June 30, 2015, we repurchased 852,901 shares at an aggregate cost of $94.4 million

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 31, 2015. 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, 2014 and in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended March 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, 2014 and our Report on Form 10-Q for the quarterly period ended March 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 $92 million and $75 million during the three-month periods ended June 30, 2015 and 2014, respectively, and $159 million and $124 million during the six-month periods ended June 30, 2015 and 2014, respectively. These revenues were offset by assessments of $39 million and $32 million during the second quarters of 2015 and 2014, respectively, and $67 million and $50 million during the six-month periods ended June 30, 2015 and 2014, respectively, which are recorded in other operating expenses on the attached Condensed 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 Condensed Consolidated Statement of Income for the three and six-month periods ended June 30, 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 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. 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 in federal fiscal year 2015. Under the HITECH Act, hospitals must continue to meet the applicable meaningful use criteria in each fiscal year or they will be subject to a market basket update reduction in a subsequent fiscal year.  

 

 

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)










Three months


Six months


ended June 30,


ended June 30,


2015


2014


2015


2014









Net revenues before provision for doubtful accounts

$2,452,680


$2,227,721


$4,832,781


$4,374,219

  Less: Provision for doubtful accounts

177,476


175,955


332,224


384,139

Net revenues

2,275,204


2,051,766


4,500,557


3,990,080









Operating charges:








   Salaries, wages and benefits

1,044,064


961,920


2,075,767


1,897,285

   Other operating expenses

535,711


460,665


1,041,677


860,573

   Supplies expense

240,979


223,774


479,720


439,572

   Depreciation and amortization

97,257


90,691


196,255


184,050

   Lease and rental expense

23,196


23,458


46,087


46,796

   Electronic health records incentive income

(1,395)


(2,174)


(1,395)


(2,604)


1,939,812


1,758,334


3,838,111


3,425,672









Income from operations

335,392


293,432


662,446


564,408









Interest expense, net

27,684


35,087


57,721


70,280









Income before income taxes

307,708


258,345


604,725


494,128









Provision for income taxes

106,304


91,731


208,998


175,662









Net income

201,404


166,614


395,727


318,466









Less:  Income attributable to








noncontrolling interests

19,211


14,943


39,235


28,717









Net income attributable to UHS

$182,193


$151,671


$356,492


$289,749

















































Basic earnings per share attributable to UHS (a)

$1.84


$1.53


$3.60


$2.93









Diluted earnings per share attributable to UHS (a)

$1.80


$1.51


$3.54


$2.89

 

 

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)










Three months


Six months


ended June 30,


ended June 30,


2015


2014


2015


2014









(a) Earnings per share calculation:
















Basic and diluted:








Net income attributable to UHS

$182,193


$151,671


$356,492


$289,749

Less: Net income attributable to unvested restricted share grants

(71)


(77)


(139)


(147)

Net income attributable to UHS - basic and diluted

$182,122


$151,594


$356,353


$289,602









Weighted average number of common shares - basic

99,004


98,872


98,957


98,722









Basic earnings per share attributable to UHS:

$1.84


$1.53


$3.60


$2.93









Weighted average number of common shares

99,004


98,872


98,957


98,722

Add: Other share equivalents

1,923


1,363


1,830


1,474

Weighted average number of common shares and equiv. - diluted

100,927


100,235


100,787


100,196









Diluted earnings per share attributable to UHS:

$1.80


$1.51


$3.54


$2.89

 

 

Universal Health Services, Inc.

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

For the three months ended June 30, 2015 and 2014

(in thousands, except per share amounts)

(unaudited)

























Calculation of "EBITDA"










Three months ended


Three months ended


June 30, 2015


June 30, 2014

















Net revenues before provision for doubtful accounts

$2,452,680




$2,227,721



  Less: Provision for doubtful accounts

177,476




175,955



Net revenues

2,275,204


100.0%


2,051,766


100.0%









Operating charges:








   Salaries, wages and benefits

1,044,064


45.9%


961,920


46.9%

   Other operating expenses

535,711


23.5%


460,665


22.5%

   Supplies expense

240,979


10.6%


223,774


10.9%

   EHR incentive income

(1,395)


-0.1%


(2,174)


-0.1%


1,819,359


80.0%


1,644,185


80.1%









Operating income/margin ("EBITDAR")

455,845


20.0%


407,581


19.9%









   Lease and rental expense

23,196




23,458



   Income attributable to noncontrolling interests

19,211




14,943











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

413,438


18.2%


369,180


18.0%









   Depreciation and amortization

97,257




90,691



   Interest expense, net

27,684




35,087











Income before income taxes 

288,497




243,402











Provision for income taxes

106,304




91,731



Net income attributable to UHS

$182,193




$151,671



















Calculation of Adjusted Net Income Attributable to UHS










Three months ended


Three months ended


June 30, 2015


June 30, 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

$182,193


$1.80


$151,671


$1.51









Plus/minus impact of EHR implementation: 








EHR-related incentive income, pre-tax

(1,395)




(2,174)



EHR-related depreciation & amortization, pre-tax

9,306




9,310



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

(963)




(871)



Income tax provision on EHR-related items 

(2,590)




(2,350)



After-tax impact of EHR-related items

4,358


0.05


3,915


0.04

Adjusted net income attributable to UHS

$186,551


$1.85


$155,586


$1.55

 

 

Universal Health Services, Inc.

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

For the six months ended June 30, 2015 and 2014

(in thousands, except per share amounts)

(unaudited)

























Calculation of "EBITDA"










Six months ended


Six months ended


June 30, 2015


June 30, 2014

















Net revenues before provision for doubtful accounts

$4,832,781




$4,374,219



  Less: Provision for doubtful accounts

332,224




384,139



Net revenues

4,500,557


100.0%


3,990,080


100.0%









Operating charges:








   Salaries, wages and benefits

2,075,767


46.1%


1,897,285


47.6%

   Other operating expenses

1,041,677


23.1%


860,573


21.6%

   Supplies expense

479,720


10.7%


439,572


11.0%

   EHR incentive income

(1,395)


0.0%


(2,604)


-0.1%


3,595,769


79.9%


3,194,826


80.1%









Operating income/margin ("EBITDAR")

904,788


20.1%


795,254


19.9%









   Lease and rental expense

46,087




46,796



   Income attributable to noncontrolling interests

39,235




28,717











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

819,466


18.2%


719,741


18.0%









   Depreciation and amortization

196,255




184,050



   Interest expense, net

57,721




70,280











Income before income taxes 

565,490




465,411











Provision for income taxes

208,998




175,662



Net income attributable to UHS

$356,492




$289,749



















Calculation of Adjusted Net Income Attributable to UHS










Six months ended


Six months ended


June 30, 2015


June 30, 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

$356,492


$3.54


$289,749


$2.89

Plus/minus adjustments:








  Gain on sale of investment, net of income taxes

-


-


(6,330)


(0.06)

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

$356,492


$3.54


$283,419


$2.83









Plus/minus impact of EHR implementation: 








EHR-related incentive income, pre-tax

(1,395)




(2,604)



EHR-related depreciation & amortization, pre-tax

18,612




18,600



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

(1,927)




(1,837)



Income tax provision on EHR-related items 

(5,699)




(5,298)



After-tax impact of EHR-related items

9,591


0.09


8,861


0.09

Adjusted net income attributable to UHS

$366,083


$3.63


$292,280


$2.92

 

 

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)










Three months


Six months


ended June 30,


ended June 30,


2015


2014


2015


2014









Net income

$201,404


$166,614


$395,727


$318,466

Other comprehensive income (loss):








   Unrealized derivative gains (loss) on cash flow hedges

806


4,465


4,938


8,210

   Amortization of terminated hedge

(84)


(84)


(168)


(168)

   Foreign currency translation adjustment

2,626


0


2,208


0

Other comprehensive income before tax

3,348


4,381


6,978


8,042

Income tax expense related to items of other comprehensive income

715


1,620


2,212


2,974

Total other comprehensive income, net of tax

2,633


2,761


4,766


5,068









Comprehensive income

204,037


169,375


400,493


323,534

Less: Comprehensive income attributable to noncontrolling interests

19,211


14,943


39,235


28,717

Comprehensive income attributable to UHS

$184,826


$154,432


$361,258


$294,817

 

 

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)











June 30,



December 31,




2015



2014

Assets







Current assets:







    Cash and cash equivalents


$

42,464


$

32,069

    Accounts receivable, net



1,360,973



1,282,735

    Supplies



109,117



108,115

    Deferred income taxes



124,857



114,565

    Other current assets



71,548



77,654

          Total current assets



1,708,959



1,615,138








Property and equipment



6,371,767



6,212,030

Less: accumulated depreciation



(2,685,730)



(2,532,341)




3,686,037



3,679,689








Other assets:







    Goodwill



3,316,945



3,291,213

    Deferred charges



36,927



40,319

    Other



329,691



348,084



$

9,078,559


$

8,974,443








Liabilities and Stockholders' Equity







Current liabilities:







    Current maturities of long-term debt


$

73,807


$

68,319

    Accounts payable and accrued liabilities



1,096,081



1,113,062

    Federal and state taxes



24,423



1,446

          Total current liabilities



1,194,311



1,182,827








Other noncurrent liabilities



279,281



268,555

Long-term debt



2,961,515



3,210,215

Deferred income taxes



271,109



282,214








Redeemable noncontrolling interest



250,533



239,552








UHS common stockholders' equity



4,061,756



3,735,946

Noncontrolling interest



60,054



55,134

          Total equity



4,121,810



3,791,080










$

9,078,559


$

8,974,443

 

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


Six months


ended June 30,


2015


2014





Cash Flows from Operating Activities:




  Net income

$395,727


$318,466

  Adjustments to reconcile net income to net 




cash provided by operating activities:




Depreciation & amortization

196,255


184,050

Gains on sales of assets and businesses, net of losses

0


(10,134)

Stock-based compensation expense

20,474


14,945

  Changes in assets & liabilities, net of effects from




acquisitions and dispositions:




   Accounts receivable

(95,013)


(61,865)

   Accrued interest

(1,520)


(271)

   Accrued and deferred income taxes 

10,870


(9,435)

   Other working capital accounts 

(10,899)


17,739

   Other assets and deferred charges

4,074


10,415

   Other 

2,163


(4,092)

   Accrued insurance expense, net of commercial premiums paid

50,511


38,520

   Payments made in settlement of self-insurance claims

(41,039)


(39,922)

          Net cash provided by operating activities

531,603


458,416





Cash Flows from Investing Activities:




   Property and equipment additions, net of disposals

(170,580)


(186,786)

   Proceeds received from sale of assets and businesses

0


11,450

   Acquisition of property and businesses

(34,500)


(71,000)

   Costs incurred for purchase and implementation of electronic health records application

0


(8,399)

          Net cash used in investing activities

(205,080)


(254,735)





Cash Flows from Financing Activities:




   Reduction of long-term debt

(255,658)


(179,126)

   Additional borrowings

5,200


0

   Repurchase of common shares

(68,157)


(35,773)

   Dividends paid

(19,804)


(9,884)

   Issuance of common stock

4,039


3,287

   Excess income tax benefits related to stock-based compensation

28,489


28,493

   Profit distributions to noncontrolling interests

(23,295)


(13,184)

   Proceeds received from sale/leaseback of real property

12,765


0

          Net cash used in financing activities

(316,421)


(206,187)





   Effect of exchange rate changes on cash and cash equivalents

293


0

Increase (decrease) in cash and cash equivalents

10,395


(2,506)

Cash and cash equivalents, beginning of period

32,069


17,238

Cash and cash equivalents, end of period

$42,464


$14,732





Supplemental Disclosures of Cash Flow Information:




  Interest paid

$55,718


$60,078





  Income taxes paid, net of refunds

$166,637


$156,434





  Noncash purchases of propery and equipment

$34,488


$58,020

 

 

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)


























 % Change 


 % Change 








quarter ended


six months ended



Same Facility:




6/30/2015


6/30/2015













Acute Care Hospitals








Revenues



8.4%


10.2%



Adjusted Admissions



5.7%


5.7%



Adjusted Patient Days



5.2%


6.3%



Revenue Per Adjusted Admission



3.2%


4.6%



Revenue Per Adjusted Patient Day



3.7%


4.0%























Behavioral Health Hospitals


















Revenues



5.1%


5.7%



Adjusted Admissions



4.2%


5.0%



Adjusted Patient Days



0.6%


1.5%



Revenue Per Adjusted Admission



0.5%


0.5%



Revenue Per Adjusted Patient Day



4.1%


3.9%











































UHS Consolidated


Second quarter ended


Six months ended


6/30/2015


6/30/2014


6/30/2015


6/30/2014









Revenues

$2,275,204


$2,051,766


$4,500,557


$3,990,080

EBITDA   (1)

413,438


369,180


819,466


719,741

EBITDA Margin (1)

18.2%


18.0%


18.2%


18.0%









Cash Flow From Operations

260,329


263,777


531,603


458,416

Days Sales Outstanding

54


53


55


54

Capital Expenditures  

81,304


94,399


170,580


186,786









Debt 





3,035,322


3,147,997

UHS' Shareholders Equity





4,061,756


3,546,134

Debt / Total Capitalization





42.8%


47.0%

Debt / EBITDA  (2)





2.00


2.34

Debt / Cash From Operations  (2)





2.74


3.31

















Acute Care EBITDAR Margin  (3) 

19.8%


18.7%


20.7%


19.0%

Behavioral Health EBITDAR Margin  (3) 

28.5%


28.4%


28.6%


28.1%





















(1)  Net of Minority Interest 

(2)  Latest 4 quarters

(3)  Same facility basis, before Corporate overhead allocation and minority interest.

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the Three Months ended

June 30, 2015 and 2014



















AS REPORTED:





























                       ACUTE



               BEHAVIORAL HEALTH



06/30/15

06/30/14

%  change


06/30/15

06/30/14

%  change










Hospitals owned and leased


24

24

0.0%


202

182

11.0%

Average licensed beds


5,836

5,802

0.6%


21,027

19,951

5.3%

Patient days


302,757

289,982

4.4%


1,463,553

1,387,757

5.5%

Average daily census


3,327.0

3,186.6

4.4%


16,083.0

15,250.1

5.5%

Occupancy-licensed beds


57.0%

54.9%

3.8%


76.5%

76.4%

0.1%

Admissions


65,218

62,138

5.0%


113,855

107,436

6.0%

Length of stay


4.6

4.7

-0.5%


12.9

12.9

-0.4%










Inpatient revenue


$4,188,933

$3,724,309

12.5%


$1,865,070

$1,686,512

10.6%

Outpatient revenue


2,403,044

2,068,076

16.2%


217,013

204,480

6.1%

Total patient revenue


6,591,977

5,792,385

13.8%


2,082,083

1,890,992

10.1%

Other revenue


88,970

54,139

64.3%


54,440

45,795

18.9%

Gross hospital revenue


6,680,947

5,846,524

14.3%


2,136,523

1,936,787

10.3%










Total deductions


5,367,134

4,660,403

15.2%


1,001,556

898,168

11.5%










Net hospital revenue before 









  provision for doubtful accounts


1,313,813

1,186,121

10.8%


1,134,967

1,038,619

9.3%










Provision for doubtful accounts


149,297

149,056

0.2%


28,107

27,380

2.7%










Net hospital revenue 


$1,164,516

$1,037,065

12.3%


$1,106,860

$1,011,239

9.5%



















SAME FACILITY:




















                      ACUTE



             BEHAVIORAL HEALTH (1)



06/30/15

06/30/14

%  change


06/30/15

06/30/14

%  change










Hospitals owned and leased


24

24

0.0%


182

182

0.0%

Average licensed beds


5,836

5,802

0.6%


20,045

19,892

0.8%

Patient days


302,757

289,982

4.4%


1,395,703

1,384,083

0.8%

Average daily census


3,327.0

3,186.6

4.4%


15,337.4

15,209.7

0.8%

Occupancy-licensed beds


57.0%

54.9%

3.8%


76.5%

76.5%

0.1%

Admissions


65,218

62,138

5.0%


112,065

107,322

4.4%

Length of stay


4.6

4.7

-0.5%


12.5

12.9

-3.4%



















(1) Sun Coast BH, Quail Run, Timberlawn of Garland and the UK facilities are excluded in both

    current and prior years.

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the Six Months ended

June 30, 2015 and 2014



















AS REPORTED:





























                       ACUTE



               BEHAVIORAL HEALTH



06/30/15

06/30/14

%  change


06/30/15

06/30/14

%  change










Hospitals owned and leased


24

24

0.0%


202

182

11.0%

Average licensed beds


5,814

5,780

0.6%


21,005

19,856

5.8%

Patient days


620,720

589,856

5.2%


2,906,619

2,722,534

6.8%

Average daily census


3,429.3

3,259.0

5.2%


16,058.7

15,041.6

6.8%

Occupancy-licensed beds


59.0%

56.4%

4.6%


76.5%

75.8%

0.9%

Admissions


130,637

124,838

4.6%


226,561

211,331

7.2%

Length of stay


4.8

4.7

0.6%


12.8

12.9

-0.5%










Inpatient revenue


$8,517,700

$7,600,673

12.1%


$3,688,495

$3,295,411

11.9%

Outpatient revenue


4,687,756

4,025,567

16.4%


421,582

388,595

8.5%

Total patient revenue


13,205,456

11,626,240

13.6%


4,110,077

3,684,006

11.6%

Other revenue


177,645

88,686

100.3%


105,120

89,417

17.6%

Gross hospital revenue


13,383,101

11,714,926

14.2%


4,215,197

3,773,423

11.7%










Total deductions


10,798,998

9,371,808

15.2%


1,973,529

1,748,592

12.9%










Net hospital revenue before 









  provision for doubtful accounts


2,584,103

2,343,118

10.3%


2,241,668

2,024,831

10.7%










Provision for doubtful accounts


273,647

331,406

-17.4%


58,463

53,245

9.8%










Net hospital revenue 


$2,310,456

$2,011,712

14.9%


$2,183,205

$1,971,586

10.7%



















SAME FACILITY:




















                      ACUTE



             BEHAVIORAL HEALTH (1)



06/30/15

06/30/14

%  change


06/30/15

06/30/14

%  change










Hospitals owned and leased


24

24

0.0%


182

182

0.0%

Average licensed beds


5,814

5,780

0.6%


19,952

19,827

0.6%

Patient days


620,720

589,856

5.2%


2,762,223

2,718,892

1.6%

Average daily census


3,429.3

3,259.0

5.2%


15,260.9

15,021.5

1.6%

Occupancy-licensed beds


59.0%

56.4%

4.6%


76.5%

75.8%

0.9%

Admissions


130,637

124,838

4.6%


221,903

211,217

5.1%

Length of stay


4.8

4.7

0.6%


12.4

12.9

-3.3%



















(1) Sun Coast BH, Quail Run, Timberlawn of Garland and the UK facilities are excluded in both

    current and prior years.

 

SOURCE Universal Health Services, Inc.



RELATED LINKS

http://www.uhsinc.com