|Universal Health Services, Inc. Reports 2011 First Quarter Earnings and Increases 2011 Full Year Earnings Guidance|
KING OF PRUSSIA, Pa., April 26, 2011 /PRNewswire via COMTEX/ --
Universal Health Services, Inc. (NYSE: UHS) announced today that net income attributable to UHS was $114.2 million, or $1.15 per diluted share, during the first quarter of 2011 as compared to $71.8 million, or $.73 per diluted share, during the comparable prior year quarter. Net revenues increased 42% to $1.91 billion during the first quarter of 2011 as compared to $1.35 billion during the first quarter of 2010. The increase in net revenues during the first quarter of 2011, as compared to the comparable quarter of the prior year, was due primarily to the revenues generated at the behavioral health care facilities acquired from Psychiatric Solutions, Inc. in November, 2010.
"For the last two years, the overall weakness in the economy has created a very challenging operating environment, most particularly for our acute care hospitals," said Alan B. Miller, Chief Executive Officer. "Although we remain cautious about the strength of the underlying economic recovery, we are extremely encouraged by the improvement in some of our payor mix trends in early 2011. Additionally, we remain excited with the fundamentals in the behavioral segment and the robust performance of, what is now, the premier behavioral health platform in the nation."
Acute Care Services - Three-month periods ended March 31, 2011 and 2010:
At our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 0.6% while adjusted patient days increased 2.2% during the first quarter of 2011, as compared to the first quarter of 2010. Net revenues at these facilities increased 6.6% during the first quarter of 2011 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 5.9% while net revenue per adjusted patient day increased 4.3% during the first quarter of 2011 as compared to the comparable quarter of the prior year. On a same facility basis, the operating margin (net revenues less salaries, wages and benefits, other operating expenses, supplies expense and provision for doubtful accounts) at our acute care hospitals increased to 18.0% during the first quarter of 2011 as compared to 16.1% during the first quarter of 2010. The increased operating margin for our acute care facilities during the first quarter of 2011, as compared to the comparable quarter of the prior year, was due primarily to improvements in the operating environments of several of the markets in which we operate, including Las Vegas, Nevada.
We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $223 million and $176 million during the three-month periods ended March 31, 2011 and 2010, respectively.
Behavioral Health Care Services - Three-month periods ended March 31, 2011 and 2010:
At our behavioral health care facilities, on a same facility basis, adjusted admissions increased 6.4% while adjusted patient days increased 1.8% during the first quarter of 2011 as compared to the first quarter of 2010. Net revenues at these facilities increased 6.5% during the first quarter of 2011 as compared to the comparable quarter in the prior year. At these facilities, net revenue per adjusted admission increased 0.1% while net revenue per adjusted patient day increased 4.6% during the first quarter of 2011 over the comparable prior year quarter. The operating margin at our behavioral health care facilities owned during both periods increased to 26.3% during the first quarter of 2011 as compared to 26.0% during the first quarter of 2010.
2011 Full Year Guidance Increased to $3.85 to $4.00 Per Diluted Share:
Based upon the operating trends and financial results experienced during the first three months of 2011, we are increasing our range of 2011 full year guidance for earnings per diluted share attributable to UHS to $3.85 to $4.00, representing a $.20 per diluted share increase over the previously provided range of $3.65 to $3.80 per diluted share. Our projected net revenues for 2011 remain unchanged at $7.6 billion to $7.7 billion
This guidance range is 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 April 27, 2011. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on April 27, 2011 and will continue through midnight on May 11, 2011. The recording can be accessed by calling 1-800-642-1687 and entering the pass code 59918801. A live broadcast of the call will be available on our web site at www.uhsinc.com. The webcast will also be available through Thompson StreetEvents Network at www.earnings.comor www.streetevents.com, a password-protected event management site for institutional investors.
General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:
Universal Health Services, Inc. ("UHS") is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico and the U.S. Virgin Islands. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information on the Company, visit our web site: http://www.uhsinc.com.
This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2010), 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 items that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2010. 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.
SOURCE Universal Health Services, Inc.
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