Universal Health Services, Inc. Reports 26% First Quarter EPS Growth, Before Foreign Currency Adjustment, and Intent to Split Stock

Apr 17, 2001, 01:00 ET from Universal Health Services, Inc.

    KING OF PRUSSIA, Pa., April 17 /PRNewswire/ -- Universal Health Services,
 Inc. (NYSE:   UHS) announced today that its earnings per share (diluted) for the
 three-month period ended March 31, 2001 were $1.14 including pre-tax losses on
 foreign exchange and derivative transactions of $1.4 million or approximately
 $.02 per share (diluted).  Prior to these losses, earnings per share (diluted)
 were $1.16, a 26% increase from the earnings per share recorded in the same
 period of the prior year.  Net revenue and net income for the quarter were
 $676.9 million and $36.2 million, increases of 25% and 26% respectively from
 the results of the same period in the prior year.  At March 31, 2001 the
 company's balance sheet debt was $701 million and its shareholders' equity was
 $741 million.
     The company also announced that its Board of Directors has declared a two
 for one stock split in the form of a 100% stock dividend payable on June 1,
 2001 to shareholders of record as of May 16, 2001.  All classes of common
 stock will participate on a pro rata basis.  The stock split is subject to
 approval by the company's shareholders at the company's annual meeting to be
 held May 23, 2001.  The Board's decision should improve trading liquidity and
 dampen the price volatility in the company's stock.
     Patient admissions to the company's hospitals owned in both the three
 months ended March 31, 2001 and March 31, 2000 increased 1.3% in the company's
 acute care hospitals and 5.7% in the company's behavioral health hospitals.
 Included in the same store calculation for the acute care hospitals is the
 60-bed McAllen Heart Hospital that was acquired in March and is now operating
 under the same license as the McAllen Medical Center.
     For the company's acute care hospitals owned in both periods, revenues
 increased 10.2% and revenue per admission increased 8.6%.  The operating
 margin at these hospitals, defined as Earnings Before Interest, Tax,
 Depreciation and Amortization, Rent and Minority Interest Expense divided by
 net revenue, was 19.9% in the three-month period ended March 31, 2001 compared
 to 19.8% in the prior year.  For the company's behavioral health hospitals
 owned in both periods, revenues increased 8.2% and revenue per admission
 increased 2.4%.  The operating margin at these hospitals was 20.1% in the
 three-month period ended March 31, 2001 compared to 18.3% in the prior year.
     During the quarter ended March 31, 2001, the company completed several
 acquisitions.  The company acquired the acute care hospitals Rancho Springs in
 Murrieta, California and the McAllen Heart Hospital in McAllen, Texas.  The
 company acquired three behavioral health hospitals: Westwood Lodge and
 Pembroke in the Boston area and San Juan Capestrano in Puerto Rico.  In late
 March, the company acquired a French hospital company, named Medi-Partenaires,
 which owns eight hospitals in France.  The operating margins at these recently
 acquired facilities are less than the margins of the company's historically
 owned hospitals.  The company also acquired the Southwest Surgical Arts
 Center, a freestanding ambulatory surgery center in Reno, Nevada.
     Also during the quarter, the company completed the 120-bed expansion of
 its Desert Springs Hospital in Las Vegas and continued construction of the new
 Doctor's Hospital of Laredo in Laredo, Texas and the new George Washington
 University Hospital in Washington D.C.  These replacement hospitals are
 expected to open in the late summer of 2001 and the late spring of 2002,
 respectively.
     Universal Health Services, Inc. operates facilities nationwide and in
 France including medical, surgical acute care and behavioral health hospitals,
 ambulatory surgery and radiation therapy centers.  UHS acts as advisor to
 Universal Health Realty Income Trust (NYSE:   UHT) a real estate investment
 trust.
 
     Certain statements in this release may constitute forward-looking
 statements that are subject to various risks and uncertainties as discussed in
 the company's filings with the Securities and Exchange Commission.  The
 company is not obligated to update these forward-looking statements even if
 the company's assessments of these risks and uncertainties changes.
     For additional information on the company, visit their web site:
 http://www.uhsinc.com.
 
                          Universal Health Services, Inc.
                         Consolidated Statements of Income
                     (in thousands, except per share amounts)
 
                                                           Three months
                                                         ended March 31,
                                                     2001              2000
 
     Net revenues                                  $676,949          $541,004
 
     Operating charges:
        Salaries, wages and benefits                268,282           210,863
        Other operating expenses                    150,906           116,937
        Supplies expense                             89,368            73,912
        Provision for doubtful accounts              55,227            44,980
        Depreciation and amortization                29,795            27,644
        Lease and rental expense                     12,640            11,949
        Interest expense, net                         8,456             7,328
                                                    614,674           493,613
 
     Income before minority interests,
      effect of foreign
          exchange and derivative
           transactions and income taxes             62,275            47,391
 
     Minority interests in earnings
          of consolidated entities                    3,925             3,143
 
     Losses on foreign exchange and
      derivative transactions                         1,427                 0
 
     Income before income taxes                      56,923            44,248
 
     Provision for income taxes                      20,752            15,619
 
                  Net income                        $36,171           $28,629
 
 
     Earnings per common share - basic                $1.21             $0.94
 
     Earnings per common share - diluted              $1.14             $0.92
 
 
     Weighted average number of common
      shares - basic                                 29,914            30,591
     Weighted average number of common
      share equivalents                               3,660               464
     Weighted average number of common
      shares and equiv. - diluted                    33,574            31,055
 
 
     EARNINGS PER SHARE CALCULATION
 
     Net income                                     $36,171           $28,629
     Add: Debenture interest, net of taxes            1,970               ---
     Adjusted net income                            $38,141           $28,629
 
     Weighted average number of common
      shares - basic                                 29,914            30,591
     Add: Shares for conversion of
      convertible debentures                          3,289               ---
              Other share equivalents                   371               464
     Weighted average number of common
      shares and equiv. - diluted                    33,574            31,055
 
     Earnings per common share - diluted              $1.14             $0.92
 
 
                          Universal Health Services, Inc.
                       Condensed Consolidated Balance Sheets
                                   (in thousands)
 
                                                   March 31,       December 31,
                                                     2001               2000
 
     Assets:
     Cash and cash equivalents                      $13,044            $10,545
     Accounts receivable, net                       430,342            376,601
     Other current assets                            99,873             89,309
     Property, plant and equipment, net             931,571            838,246
     Funds restricted for construction               33,910             37,381
     Other assets                                   481,275            390,295
                                                 $1,990,015         $1,742,377
 
     Liabilities and Stockholders'
      Equity:
     Current portion of long-term debt                 $870               $689
     Other current liabilities                      298,921            248,151
     Other noncurrent liabilities                    89,130             71,730
     Minority interest                              121,160            120,788
     Long-term debt                                 700,128            548,064
     Deferred income taxes                           38,860             36,381
     Stockholders' equity                           740,946            716,574
                                                 $1,990,015         $1,742,377
 
 

SOURCE Universal Health Services, Inc.
    KING OF PRUSSIA, Pa., April 17 /PRNewswire/ -- Universal Health Services,
 Inc. (NYSE:   UHS) announced today that its earnings per share (diluted) for the
 three-month period ended March 31, 2001 were $1.14 including pre-tax losses on
 foreign exchange and derivative transactions of $1.4 million or approximately
 $.02 per share (diluted).  Prior to these losses, earnings per share (diluted)
 were $1.16, a 26% increase from the earnings per share recorded in the same
 period of the prior year.  Net revenue and net income for the quarter were
 $676.9 million and $36.2 million, increases of 25% and 26% respectively from
 the results of the same period in the prior year.  At March 31, 2001 the
 company's balance sheet debt was $701 million and its shareholders' equity was
 $741 million.
     The company also announced that its Board of Directors has declared a two
 for one stock split in the form of a 100% stock dividend payable on June 1,
 2001 to shareholders of record as of May 16, 2001.  All classes of common
 stock will participate on a pro rata basis.  The stock split is subject to
 approval by the company's shareholders at the company's annual meeting to be
 held May 23, 2001.  The Board's decision should improve trading liquidity and
 dampen the price volatility in the company's stock.
     Patient admissions to the company's hospitals owned in both the three
 months ended March 31, 2001 and March 31, 2000 increased 1.3% in the company's
 acute care hospitals and 5.7% in the company's behavioral health hospitals.
 Included in the same store calculation for the acute care hospitals is the
 60-bed McAllen Heart Hospital that was acquired in March and is now operating
 under the same license as the McAllen Medical Center.
     For the company's acute care hospitals owned in both periods, revenues
 increased 10.2% and revenue per admission increased 8.6%.  The operating
 margin at these hospitals, defined as Earnings Before Interest, Tax,
 Depreciation and Amortization, Rent and Minority Interest Expense divided by
 net revenue, was 19.9% in the three-month period ended March 31, 2001 compared
 to 19.8% in the prior year.  For the company's behavioral health hospitals
 owned in both periods, revenues increased 8.2% and revenue per admission
 increased 2.4%.  The operating margin at these hospitals was 20.1% in the
 three-month period ended March 31, 2001 compared to 18.3% in the prior year.
     During the quarter ended March 31, 2001, the company completed several
 acquisitions.  The company acquired the acute care hospitals Rancho Springs in
 Murrieta, California and the McAllen Heart Hospital in McAllen, Texas.  The
 company acquired three behavioral health hospitals: Westwood Lodge and
 Pembroke in the Boston area and San Juan Capestrano in Puerto Rico.  In late
 March, the company acquired a French hospital company, named Medi-Partenaires,
 which owns eight hospitals in France.  The operating margins at these recently
 acquired facilities are less than the margins of the company's historically
 owned hospitals.  The company also acquired the Southwest Surgical Arts
 Center, a freestanding ambulatory surgery center in Reno, Nevada.
     Also during the quarter, the company completed the 120-bed expansion of
 its Desert Springs Hospital in Las Vegas and continued construction of the new
 Doctor's Hospital of Laredo in Laredo, Texas and the new George Washington
 University Hospital in Washington D.C.  These replacement hospitals are
 expected to open in the late summer of 2001 and the late spring of 2002,
 respectively.
     Universal Health Services, Inc. operates facilities nationwide and in
 France including medical, surgical acute care and behavioral health hospitals,
 ambulatory surgery and radiation therapy centers.  UHS acts as advisor to
 Universal Health Realty Income Trust (NYSE:   UHT) a real estate investment
 trust.
 
     Certain statements in this release may constitute forward-looking
 statements that are subject to various risks and uncertainties as discussed in
 the company's filings with the Securities and Exchange Commission.  The
 company is not obligated to update these forward-looking statements even if
 the company's assessments of these risks and uncertainties changes.
     For additional information on the company, visit their web site:
 http://www.uhsinc.com.
 
                          Universal Health Services, Inc.
                         Consolidated Statements of Income
                     (in thousands, except per share amounts)
 
                                                           Three months
                                                         ended March 31,
                                                     2001              2000
 
     Net revenues                                  $676,949          $541,004
 
     Operating charges:
        Salaries, wages and benefits                268,282           210,863
        Other operating expenses                    150,906           116,937
        Supplies expense                             89,368            73,912
        Provision for doubtful accounts              55,227            44,980
        Depreciation and amortization                29,795            27,644
        Lease and rental expense                     12,640            11,949
        Interest expense, net                         8,456             7,328
                                                    614,674           493,613
 
     Income before minority interests,
      effect of foreign
          exchange and derivative
           transactions and income taxes             62,275            47,391
 
     Minority interests in earnings
          of consolidated entities                    3,925             3,143
 
     Losses on foreign exchange and
      derivative transactions                         1,427                 0
 
     Income before income taxes                      56,923            44,248
 
     Provision for income taxes                      20,752            15,619
 
                  Net income                        $36,171           $28,629
 
 
     Earnings per common share - basic                $1.21             $0.94
 
     Earnings per common share - diluted              $1.14             $0.92
 
 
     Weighted average number of common
      shares - basic                                 29,914            30,591
     Weighted average number of common
      share equivalents                               3,660               464
     Weighted average number of common
      shares and equiv. - diluted                    33,574            31,055
 
 
     EARNINGS PER SHARE CALCULATION
 
     Net income                                     $36,171           $28,629
     Add: Debenture interest, net of taxes            1,970               ---
     Adjusted net income                            $38,141           $28,629
 
     Weighted average number of common
      shares - basic                                 29,914            30,591
     Add: Shares for conversion of
      convertible debentures                          3,289               ---
              Other share equivalents                   371               464
     Weighted average number of common
      shares and equiv. - diluted                    33,574            31,055
 
     Earnings per common share - diluted              $1.14             $0.92
 
 
                          Universal Health Services, Inc.
                       Condensed Consolidated Balance Sheets
                                   (in thousands)
 
                                                   March 31,       December 31,
                                                     2001               2000
 
     Assets:
     Cash and cash equivalents                      $13,044            $10,545
     Accounts receivable, net                       430,342            376,601
     Other current assets                            99,873             89,309
     Property, plant and equipment, net             931,571            838,246
     Funds restricted for construction               33,910             37,381
     Other assets                                   481,275            390,295
                                                 $1,990,015         $1,742,377
 
     Liabilities and Stockholders'
      Equity:
     Current portion of long-term debt                 $870               $689
     Other current liabilities                      298,921            248,151
     Other noncurrent liabilities                    89,130             71,730
     Minority interest                              121,160            120,788
     Long-term debt                                 700,128            548,064
     Deferred income taxes                           38,860             36,381
     Stockholders' equity                           740,946            716,574
                                                 $1,990,015         $1,742,377
 
 SOURCE  Universal Health Services, Inc.

RELATED LINKS

http://www.uhs.com