uhs-8k_20190425.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 25, 2019

UNIVERSAL HEALTH SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

 

DELAWARE

 

1-10765

 

23-2077891

(State or other jurisdiction of

 

(Commission

 

(I.R.S. Employer

Incorporation or Organization)

 

File Number)

 

Identification No.)

UNIVERSAL CORPORATE CENTER

367 SOUTH GULPH ROAD

KING OF PRUSSIA, PENNSYLVANIA 19406

(Address of principal executive office) (Zip Code)

Registrant’s telephone number, including area code (610) 768-3300

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 

 


 

Item 2.02 Results of Operations and Financial Condition

On April 25, 2019, Universal Health Services, Inc. issued the press release attached hereto as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

 

 

 

99.1

  

Universal Health Services, Inc., press release, dated April 25, 2019.

 

 

 

Exhibit Index

 

Exhibit No.

  

Exhibit

 

 

99.1

  

Universal Health Services, Inc., press release, dated April 25, 2019.

 

 


 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Universal Health Services, Inc.

 

By:

 

/s/ Steve Filton

Name: Steve Filton

Title: Executive Vice President and

            Chief Financial Officer

Date: April 25, 2019

 

 

 

 

uhs-ex991_6.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 25, 2019

 

CONTACT:

Steve Filton

 

Chief Financial Officer

 

610-768-3300

 

 

UNIVERSAL HEALTH SERVICES, INC.

REPORTS 2019 FIRST QUARTER FINANCIAL RESULTS

 

Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended March 31, 2019 and 2018:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $234.2 million, or $2.57 per diluted share, during the first quarter of 2019 as compared to $223.8 million, or $2.36 per diluted share, during the comparable quarter of 2018.  Net revenues increased 4.3% to $2.804 billion during the first quarter of 2019 as compared to $2.688 billion during the first quarter of 2018.

 

For the three-month period ended March 31, 2019, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), was $223.3 million, or $2.45 per diluted share, as compared to $232.1 million, or $2.45 per diluted share, during the first quarter of 2018.  

 

Included in our reported and our adjusted net income attributable to UHS during the first quarter of 2019, is a pre-tax unrealized loss of $4.3 million, or $.03 per diluted share (included in “Other (income) expense, net”), resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale.  

 

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2019, is a favorable after-tax impact of $10.9 million, or $.12 per diluted share, resulting from our adoption of ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”).

 

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2018, is a net aggregate unfavorable after-tax impact of $8.3 million, or $.09 per diluted share, consisting of: (i) an unfavorable after-tax impact of $9.9 million, or $.11 per diluted share, resulting from a $13.0 million pre-tax increase in the reserve established in connection with the discussions with the Department of Justice (“DOJ”), as discussed below, and; (ii) a favorable after-tax impact of $1.6 million, or $.02 per diluted share, resulting from our adoption of ASU 2016-09.

 

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”, NCI is net income attributable to noncontrolling interests), was $452.7 million during the first quarter of 2019 as compared to $442.1 million during the first quarter of 2018.  Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impacts of our adoption of ASU 2016-09, other (income) expense, net, as well as the unfavorable impact of the above-mentioned $13.0 million pre-tax


increase in the DOJ Reserve recorded during the first quarter of 2018, was $457.2 million during the first quarter of 2019 as compared to $455.1 million during the first quarter of 2018.

 

Acute Care Services – Three-month periods ended March 31, 2019 and 2018:

During the first quarter of 2019, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased 4.9% and adjusted patient days increased 4.4%, as compared to the first quarter of 2018. At these facilities, net revenue per adjusted admission decreased 0.4% while net revenue per adjusted patient day was unchanged during the first quarter of 2019 as compared to the comparable quarter of 2018. Net revenues from our acute care services on a same facility basis increased 4.7% during the first quarter of 2019 as compared to the comparable quarter of the prior year.

 

Behavioral Health Care Services – Three-month periods ended March 31, 2019 and 2018:

During the first quarter of 2019, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 2.9% while adjusted patient days increased 0.9% as compared to the first quarter of 2018. At these facilities, net revenue per adjusted admission increased 0.4% while net revenue per adjusted patient day increased 2.5% during the first quarter of 2019 as compared to the comparable quarter in 2018. On a same facility basis, our behavioral health care services’ net revenues increased 3.0% during the first quarter of 2019 as compared to the first quarter of 2018.    

 

Net Cash Provided by Operating Activities and Share Repurchase Program:

For the three months ended March 31, 2019, our net cash provided by operating activities was $391 million as compared to $410 million generated during the first quarter of 2018. The net decrease of $19 million was due to: (i) an unfavorable change of $29 million in accounts receivable; (ii) $39 million of other combined net unfavorable changes, partially offset by; (iii) a favorable change of $49 million in other working capital accounts resulting primarily from changes in accounts payable due to timing of disbursements.

 

In conjunction with our January 1, 2019 adoption of ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities”, we have included the net cash inflows or outflows, which were received or paid in connection with foreign exchange contracts that hedge our investment in the U.K., in investing cash flows on the consolidated statements of cash flows.  Prior to 2019, these net inflows/outflows were included in operating cash flows. Prior period amounts have been reclassified to conform with current year presentation on the consolidated statements of cash flows included herein.        

 

In December of 2018, our Board of Directors authorized a $500 million increase to our stock repurchase program, which increased the aggregate authorization to $1.7 billion from the previous $1.2 billion authorization approved during 2017, 2016 and 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 first quarter of 2019, we have repurchased 840,699 shares at an aggregate cost of approximately $106.3 million, (approximately $126 per share). Since inception of the program in 2014 through March 31, 2019, we have repurchased approximately 11.51 million shares at an aggregate cost of approximately $1.34 billion (approximately $117 per share). 

 


Conference call information:        

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 26, 2019. 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.  Also, a replay of the call will be available following the conclusion of the live call and will be available for one full year.

DOJ Reserve:

As previously disclosed, during 2018 and 2017 our financial statements included increases to the reserve established in connection with the civil aspects of the government’s investigation of certain of our behavioral health care facilities. The aggregate pre-tax reserve amounted to approximately $123 million as of both March 31, 2019 and December 31, 2018. Changes in the reserve may be required in future periods as discussions with the Department of Justice continue and additional information becomes available.  We cannot predict the ultimate resolution of this matter and therefore can provide no assurance that final amounts paid in settlement or otherwise, if any, or associated costs, as well as the income tax deductibility of payments, will not differ materially from our established reserve and assumptions related to income tax deductibility. Please see Item 3-Legal Proceedings in our Form 10-K for the year ended December 31, 2018 for additional disclosure in connection with this matter.

 

Adoption of ASU 2016-02, “Leases (Topic 842): Amendments to the FASB Accounting Standards Codification”:

Effective January 1, 2019, we adopted ASU 2016-02 which requires companies to, among other things, recognize lease assets and lease liabilities on the balance sheet. As a result of our adoption of ASU 2016-02, our consolidated balance sheet as of March 31, 2019 includes right of use assets-operating leases ($342.0 million) and operating lease liabilities ($56.1 million current and $286.1 million noncurrent).  Prior period financial statements were not adjusted for the effects of this new standard.    

 

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:

One of the nation’s largest and most respected hospital companies, Universal Health Services, Inc. (“UHS”) has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues were $10.77 billion during 2018. In 2019, UHS was again recognized as one of the World’s Most Admired Companies by Fortune; in 2018, ranked #268 on the Fortune 500; and in 2017, listed #275 in Forbes inaugural ranking of America’s Top 500 Public Companies.

 

Our operating philosophy is as effective today as it was 40 years ago, enabling us to provide compassionate care to our patients and their loved ones: Build or acquire high quality hospitals in rapidly growing markets, invest in the people and equipment needed to allow each facility to thrive, and become the leading healthcare provider in each community we serve.

 

Headquartered in King of Prussia, PA, UHS has more than 87,000 employees and through its subsidiaries operates 350 inpatient acute care hospitals and behavioral health facilities and 37 outpatient and other facilities located in 37 states, Washington, D.C., Puerto Rico and the United Kingdom. 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, 2018), 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 adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and adjusted EBITDA net of NCI, 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 impacting our net income attributable to UHS, such as, changes in the reserve established in connection with our discussions with the Department of Justice, our adoption of ASU 2016-09 and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, 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 attributable to UHS, as determined in accordance with GAAP, and 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 Reports on Form 10-K for the year ended December 31, 2018. 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.

 

 

(more)



Universal Health Services, Inc.

 

Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2019

 

 

2018

 

Net revenues

 

$

2,804,391

 

 

 

2,687,516

 

 

 

 

 

 

 

 

 

 

Operating charges:

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

1,365,546

 

 

 

1,300,148

 

Other operating expenses

 

 

644,780

 

 

 

620,819

 

Supplies expense

 

 

307,463

 

 

 

292,929

 

Depreciation and amortization

 

 

120,040

 

 

 

113,103

 

Lease and rental expense

 

 

26,125

 

 

 

26,703

 

 

 

 

2,463,954

 

 

 

2,353,702

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

340,437

 

 

 

333,814

 

Interest expense, net

 

 

39,640

 

 

 

37,576

 

Other (income) expense, net

 

 

4,501

 

 

 

-

 

Income before income taxes

 

 

296,296

 

 

 

296,238

 

Provision for income taxes

 

 

58,898

 

 

 

67,569

 

Net income

 

 

237,398

 

 

 

228,669

 

Less:  Net income attributable to noncontrolling interests

 

 

3,230

 

 

 

4,837

 

Net income attributable to UHS

 

$

234,168

 

 

$

223,832

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS (a)

 

$

2.57

 

 

$

2.37

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS (a)

 

$

2.57

 

 

$

2.36

 

 



Universal Health Services, Inc.

 

Footnotes to Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2019

 

 

2018

 

(a) Earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted:

 

 

 

 

 

 

 

 

Net income attributable to UHS

 

$

234,168

 

 

$

223,832

 

Less: Net income attributable to unvested restricted share grants

 

 

(515

)

 

 

(104

)

Net income attributable to UHS - basic and diluted

 

$

233,653

 

 

$

223,728

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic

 

 

90,776

 

 

 

94,226

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS:

 

$

2.57

 

 

$

2.37

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

90,776

 

 

 

94,226

 

Add: Other share equivalents

 

 

191

 

 

 

457

 

Weighted average number of common shares and equiv. - diluted

 

 

90,967

 

 

 

94,683

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS:

 

$

2.57

 

 

$

2.36

 

 


Universal Health Services, Inc.

 

Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")

 

For the Three Months ended March 31, 2019 and 2018

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

% Net

 

 

Three months ended

 

 

% Net

 

 

March 31, 2019

 

 

revenues

 

 

March 31, 2018

 

 

revenues

 

Net income attributable to UHS

$

234,168

 

 

 

 

 

 

$

223,832

 

 

 

 

 

   Depreciation and amortization

 

120,040

 

 

 

 

 

 

 

113,103

 

 

 

 

 

   Interest expense, net

 

39,640

 

 

 

 

 

 

 

37,576

 

 

 

 

 

   Provision for income taxes

 

58,898

 

 

 

 

 

 

 

67,569

 

 

 

 

 

EBITDA net of NCI

$

452,746

 

 

 

16.1

%

 

$

442,080

 

 

 

16.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

4,501

 

 

 

 

 

 

 

-

 

 

 

 

 

Increase in DOJ Reserve

 

-

 

 

 

 

 

 

 

13,000

 

 

 

 

 

Adjusted EBITDA net of NCI

$

457,247

 

 

 

16.3

%

 

$

455,080

 

 

 

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

2,804,391

 

 

 

 

 

 

$

2,687,516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Adjusted Net Income Attributable to UHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

March 31, 2019

 

 

March 31, 2018

 

 

 

 

 

 

Per

 

 

 

 

 

 

Per

 

 

Amount

 

 

Diluted Share

 

 

Amount

 

 

Diluted Share

 

Net income attributable to UHS

$

234,168

 

 

$

2.57

 

 

$

223,832

 

 

$

2.36

 

Plus/minus after-tax adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in DOJ Reserve, after-tax

 

-

 

 

 

-

 

 

 

9,911

 

 

 

0.11

 

Impact of ASU 2016-09

 

(10,907

)

 

 

(0.12

)

 

 

(1,598

)

 

 

(0.02

)

Subtotal adjustments

$

(10,907

)

 

$

(0.12

)

 

$

8,313

 

 

$

0.09

 

Adjusted net income attributable to UHS

$

223,261

 

 

$

2.45

 

 

$

232,145

 

 

$

2.45

 

 

 

 

 

 


Universal Health Services, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2019

 

 

2018

 

Net income

 

$

237,398

 

 

$

228,669

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Unrealized derivative gains (losses) on cash flow hedges

 

 

(2,917

)

 

 

2,124

 

Foreign currency translation adjustment

 

 

(14,262

)

 

 

(4,341

)

Other

 

 

0

 

 

 

2,367

 

Other comprehensive income (loss)  before tax

 

 

(17,179

)

 

 

150

 

Income tax expense (benefit) related to items of other comprehensive income (loss)

 

 

(2,466

)

 

 

1,077

 

Total other comprehensive income (loss), net of tax

 

 

(14,713

)

 

 

(927

)

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

222,685

 

 

 

227,742

 

Less: Comprehensive income attributable to noncontrolling interests

 

 

3,230

 

 

 

4,837

 

Comprehensive income attributable to UHS

 

$

219,455

 

 

$

222,905

 

 


Universal Health Services, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

62,726

 

 

$

105,220

 

Accounts receivable, net

 

 

1,602,405

 

 

 

1,509,909

 

Supplies

 

 

149,928

 

 

 

148,206

 

Other current assets

 

 

145,382

 

 

 

174,467

 

Total current assets

 

 

1,960,441

 

 

 

1,937,802

 

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

8,733,367

 

 

 

8,563,455

 

Less: accumulated depreciation

 

 

(3,818,529

)

 

 

(3,715,515

)

 

 

 

4,914,838

 

 

 

4,847,940

 

Other assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

3,856,664

 

 

 

3,844,628

 

Deferred income taxes

 

 

5,350

 

 

 

5,280

 

Right of use assets-operating leases

 

 

342,032

 

 

 

0

 

Deferred charges

 

 

8,207

 

 

 

8,772

 

Other

 

 

633,745

 

 

 

621,058

 

Total Assets

 

$

11,721,277

 

 

$

11,265,480

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

71,991

 

 

$

63,446

 

Accounts payable and accrued liabilities

 

 

1,355,717

 

 

 

1,253,714

 

Legal reserves

 

 

128,294

 

 

 

129,150

 

Operating lease liabilities

 

 

56,136

 

 

 

0

 

Federal and state taxes

 

 

44,628

 

 

 

2,428

 

Total current liabilities

 

 

1,656,766

 

 

 

1,448,738

 

 

 

 

 

 

 

 

 

 

Other noncurrent liabilities

 

 

364,334

 

 

 

361,809

 

Operating lease liabilities noncurrent

 

 

286,101

 

 

 

0

 

Long-term debt

 

 

3,821,938

 

 

 

3,935,187

 

Deferred income taxes

 

 

35,984

 

 

 

49,661

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

3,843

 

 

 

4,292

 

 

 

 

 

 

 

 

 

 

UHS common stockholders' equity

 

 

5,482,415

 

 

 

5,389,262

 

Noncontrolling interest

 

 

69,896

 

 

 

76,531

 

Total equity

 

 

5,552,311

 

 

 

5,465,793

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

11,721,277

 

 

$

11,265,480

 

 


Universal Health Services, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

(unaudited)

 

 

Three months

 

 

ended March 31,

 

 

2019

 

 

2018

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

Net income

$

237,398

 

 

$

228,669

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation & amortization

 

120,040

 

 

 

113,134

 

Gain on sale of assets and businesses

 

0

 

 

 

(703

)

Stock-based compensation expense

 

17,591

 

 

 

19,700

 

Changes in assets & liabilities, net of effects from acquisitions and dispositions:

 

 

 

 

 

 

 

Accounts receivable

 

(101,619

)

 

 

(72,526

)

Accrued interest

 

(2,687

)

 

 

(6,209

)

Accrued and deferred income taxes

 

52,291

 

 

 

61,674

 

Other working capital accounts

 

107,878

 

 

 

59,032

 

Other assets and deferred charges

 

(3,771

)

 

 

(5,438

)

Other

 

(38,298

)

 

 

8,211

 

Accrued insurance expense, net of commercial premiums paid

 

24,398

 

 

 

23,125

 

Payments made in settlement of self-insurance claims

 

(22,320

)

 

 

(18,765

)

Net cash provided by operating activities

 

390,901

 

 

 

409,904

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Property and equipment additions, net of disposals

 

(169,848

)

 

 

(189,041

)

Acquisition of property and businesses

 

0

 

 

 

(20,931

)

Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment

 

12,895

 

 

 

(45,853

)

Proceeds received from sales of assets and businesses

 

0

 

 

 

839

 

Costs incurred for purchase and implementation of information technology applications

 

(9,678

)

 

 

(8,570

)

Increase in capital reserves of commercial insurance subsidiary

 

0

 

 

 

100

 

Investment in, and advances to, joint venture and other

 

(879

)

 

 

(8,675

)

Net cash used in investing activities

 

(167,510

)

 

 

(272,131

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Reduction of long-term debt

 

(114,540

)

 

 

(140,676

)

Additional borrowings

 

8,700

 

 

 

20,500

 

Repurchase of common shares

 

(143,785

)

 

 

(9,441

)

Dividends paid

 

(9,081

)

 

 

(9,422

)

Issuance of common stock

 

2,726

 

 

 

2,545

 

Profit distributions to noncontrolling interests

 

(10,314

)

 

 

(4,217

)

Net cash used in financing activities

 

(266,294

)

 

 

(140,711

)

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

794

 

 

 

1,857

 

Decrease in cash, cash equivalents and restricted cash

 

(42,109

)

 

 

(1,081

)

Cash, cash equivalents and restricted cash, beginning of period

 

199,685

 

 

 

167,297

 

Cash, cash equivalents and restricted cash, end of period

$

157,576

 

 

$

166,216

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

 

 

Interest paid

$

41,050

 

 

$

41,539

 

Income taxes paid, net of refunds

$

5,087

 

 

$

2,749

 

Noncash purchases of property and equipment

$

71,987

 

 

$

84,708

 

Right-of-use assets obtained in exchange for lease obligations

$

355,981

 

 

$

-

 

 


 

Universal Health Services, Inc.

 

Supplemental Statistical Information

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

Same Facility:

 

 

 

 

 

 

Three months ended

 

 

 

 

 

 

 

 

3/31/2019

 

Acute Care Services

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

4.7

%

Adjusted Admissions

 

 

 

 

 

 

 

4.9

%

Adjusted Patient Days

 

 

 

 

 

 

 

4.4

%

Revenue Per Adjusted Admission

 

 

 

 

 

 

 

-0.4

%

Revenue Per Adjusted Patient Day

 

 

 

 

 

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

Behavioral Health Care Services

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

3.0

%

Adjusted Admissions

 

 

 

 

 

 

 

2.9

%

Adjusted Patient Days

 

 

 

 

 

 

 

0.9

%

Revenue Per Adjusted Admission

 

 

 

 

 

 

 

0.4

%

Revenue Per Adjusted Patient Day

 

 

 

 

 

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UHS Consolidated

 

 

First quarter ended

 

 

 

 

3/31/2019

 

 

3/31/2018

 

Revenues

 

 

$

2,804,391

 

 

$

2,687,516

 

EBITDA net of NCI

 

 

$

452,746

 

 

$

442,080

 

EBITDA Margin net of NCI

 

 

 

16.1

%

 

 

16.4

%

Adjusted EBITDA net of NCI

 

 

$

457,247

 

 

$

455,080

 

Adjusted EBITDA Margin net of NCI

 

 

 

16.3

%

 

 

16.9

%

 

 

 

 

 

 

 

 

 

 

Cash Flow From Operations

 

 

$

390,901

 

 

$

409,904

 

Days Sales Outstanding

 

 

 

51

 

 

 

53

 

Capital Expenditures

 

 

$

169,848

 

 

$

189,041

 

 

 

 

 

 

 

 

 

 

 

Debt

 

 

$

3,893,929

 

 

$

3,921,335

 

UHS' Shareholders Equity

 

 

$

5,482,415

 

 

$

5,215,646

 

Debt / Total Capitalization

 

 

 

41.5

%

 

 

42.9

%

Debt / EBITDA net of NCI (1)

 

 

 

2.38

 

 

 

2.32

 

Debt / Adjusted EBITDA net of NCI (1)

 

 

 

2.21

 

 

 

2.30

 

Debt / Cash From Operations (1)

 

 

 

3.10

 

 

 

3.36

 

 

 

 

 

 

 

 

 

 

 

(1)  Latest 4 quarters

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Universal Health Services, Inc.

Acute Care Hospital Services

For the three months ended

March 31, 2019 and 2018

(in thousands)

 

Same Facility Basis - Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2019

 

 

March 31, 2018

 

 

 

Amount

 

 

% of Net

Revenues

 

 

Amount

 

 

% of Net

Revenues

 

Net revenues

 

$

1,490,862

 

 

 

100.0

%

 

$

1,423,777

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

618,691

 

 

 

41.5

%

 

 

581,768

 

 

 

40.9

%

Other operating expenses

 

 

331,885

 

 

 

22.3

%

 

 

308,181

 

 

 

21.6

%

Supplies expense

 

 

257,711

 

 

 

17.3

%

 

 

243,153

 

 

 

17.1

%

Depreciation and amortization

 

 

74,228

 

 

 

5.0

%

 

 

72,150

 

 

 

5.1

%

Lease and rental expense

 

 

14,256

 

 

 

1.0

%

 

 

14,283

 

 

 

1.0

%

Subtotal-operating expenses

 

 

1,296,771

 

 

 

87.0

%

 

 

1,219,535

 

 

 

85.7

%

Income from operations

 

 

194,091

 

 

 

13.0

%

 

 

204,242

 

 

 

14.3

%

Interest expense, net

 

 

279

 

 

 

0.0

%

 

 

531

 

 

 

0.0

%

Other (income) expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Income before income taxes

 

$

193,812

 

 

 

13.0

%

 

$

203,711

 

 

 

14.3

%