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Universal Health Services, Inc. Reports 2016 Fourth Quarter And Full Year Earnings And 2017 Guidance
Webcast ImageWebcast - Live
Q4 2016 Universal Health Services Earnings Conference Call
03/01/17 at 9:00 a.m. ET
Consolidated Results of Operations, As Reported and As Adjusted - Three-month periods ended December 31, 2016 and 2015:

KING OF PRUSSIA, Pa., Feb. 28, 2017 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $174.2 million, or $1.78 per diluted share, during the fourth quarter of 2016 as compared to $173.7 million, or $1.74 per diluted share, during the comparable quarter of 2015.  Net revenues increased 6.9% to $2.48 billion during the fourth quarter of 2016 as compared to $2.32 billion during the fourth quarter of 2015.

For the three-month period ended December 31, 2016, 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 to $176.0 million, or $1.80 per diluted share, as compared to $170.7 million, or $1.71 per diluted share, during the fourth quarter of 2015.  As reflected on the Supplemental Schedule, included in our reported results during the fourth quarter of 2016, is a net unfavorable after-tax impact of $1.8 million, or $.02 per diluted share, 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. Included in our reported results during the fourth quarter of 2015, is a net favorable after-tax impact of $3.1 million, or $.03 per diluted share, related the implementation of EHR applications.            

Consolidated Results of Operations, As Reported and As Adjusted – Twelve-month periods ended December 31, 2016 and 2015:

Reported net income attributable to UHS was $702.4 million, or $7.14 per diluted share, during the twelve months ended December 31, 2016 as compared to $680.5 million, or $6.76 per diluted share, during the 2015 full year. Net revenues increased 8.0% to $9.77 billion during the full year of 2016 as compared to $9.04 billion during the 2015 full year.

For the twelve-month period ended December 31, 2016, our adjusted net income attributable to UHS, as calculated on the Supplemental Schedule, increased to $720.2 million, or $7.32 per diluted share, as compared to $692.0 million, or $6.87 per diluted share, during the 2015 full year.  As reflected on the Supplemental Schedule, included in our reported results are net unfavorable after-tax impacts of $17.8 million, or $.18 per diluted share, during the full year of 2016 and $11.5 million, or $.11 per diluted share, during the full year of 2015, related to the incentive income and depreciation and amortization expense recorded in connection with the implementation of EHR applications at our acute care hospitals. 

Acute Care Services – Three and twelve-month periods ended December 31, 2016 and 2015:

During the fourth quarter of 2016, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 4.7% and adjusted patient days increased 3.2%, as compared to the fourth quarter of 2015. Net revenues from our acute care services increased 9.3% during the fourth quarter of 2016 as compared to the fourth quarter of the prior year. At these facilities, net revenue per adjusted admission increased 2.6% while net revenue per adjusted patient day increased 4.2% during the fourth quarter of 2016 as compared to the comparable quarter of 2015. On a same facility basis, the operating margin generated from our acute care services was 16.5% during the fourth quarter of 2016 as compared to 17.2% during the fourth quarter of 2015. We define operating margin as net revenues less salaries, wages and benefits, other operating expenses and supplies expense, divided by net revenues (excluding the impact of EHR).

During the twelve months ended December 31, 2016, at our acute care hospitals on a same facility basis, adjusted admissions increased 5.2% and adjusted patient days increased 3.3%, as compared to the 2015 full year. Net revenues from our acute care services increased 9.4% during the twelve months ended December 31, 2016 as compared to the 2015 full year. At these facilities, net revenue per adjusted admission increased 2.5% while net revenue per adjusted patient day increased 4.5% during the 2016 full year as compared to 2015. On a same facility basis, the operating margin generated from our acute care services was 17.5% during the full year of 2016 as compared to 18.1% during the 2015 full year.

We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on gross charges, amounting to approximately $399 million and $332 million during the three-month periods ended December 31, 2016 and 2015, respectively, and approximately $1.45 billion and $1.20 billion during the twelve-month periods ended December 31, 2016 and 2015, respectively. The provision for doubtful accounts at our acute care hospitals amounted to approximately $136 million and $172 million during the three-month periods ended December 31, 2016 and 2015, respectively, and approximately $628 million and $631 million during the twelve-month periods ended December 31, 2016 and 2015, respectively.                    

Behavioral Health Care Services – Three and twelve-month periods ended December 31, 2016 and 2015:

During the fourth quarter of 2016, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 2.1% while adjusted patient days increased 1.4% as compared to the fourth quarter of 2015. At these facilities, net revenue per adjusted admission decreased 0.1% while net revenue per adjusted patient day increased 0.5% during the fourth quarter of 2016 as compared to the comparable quarter in 2015. On a same facility basis, our behavioral health care services' net revenues increased 2.2% during the fourth quarter of 2016, as compared to the fourth quarter of 2015, and the operating margins were 26.0% and 26.8% during the fourth quarters of 2016 and 2015, respectively.   

During the twelve months ended December 31, 2016, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 1.0% while adjusted patient days increased 0.9% as compared to the 2015 full year. At these facilities, net revenue per adjusted admission increased 1.4% while net revenue per adjusted patient day increased 1.5% during the full year of 2016 as compared to 2015. On a same facility basis, our behavioral health care services' net revenues increased 2.6% during the twelve months ended December 31, 2016, as compared to the 2015 full year, and the operating margins were 27.0% and 27.8% during the full years of 2016 and 2015, respectively.  

2017 Full Year Guidance Range:

Reflected below is our 2017 guidance range for consolidated net revenues, adjusted earnings before interest, taxes, depreciation & amortization ("EBITDA"), adjusted earnings per diluted share ("EPS-diluted") and capital expenditures.  EBITDA, adjusted EBITDA and adjusted EPS-diluted are non-GAAP financial measures and should be examined in connection with net income determined in accordance with GAAP as presented in the consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2016. Please see the Supplemental Non-GAAP Disclosures - 2017 Operating Results Forecast schedule as included herein for additional information and a reconciliation to the financial forecasts as computed in accordance with GAAP. 


For the Year Ended


December 31, 2017


Low

High

Net revenues

$10.620 billion

$10.760 billion

Adjusted EBITDA

$1.746 billion

$1.821 billion 

Adjusted EPS-diluted

$7.70 per share

$8.20 per share

Capital expenditures

$475 million

$500 million

 

Our 2017 guidance contains a number of assumptions, including, but not limited to:

  • This guidance excludes the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as, but not limited to, the impact of gains/losses 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.
  • Our net revenues are estimated to be approximately $10.620 billion to $10.760 billion representing an increase of approximately 9% to 10% over our 2016 net revenues of approximately $9.766 billion.
  • This adjusted EPS-diluted guidance range represents an increase of approximately 5% to 12% over the adjusted net income attributable to UHS of $7.32 per diluted share for the year ended December 31, 2016, as calculated on the attached Supplemental Schedule.
  • This adjusted EPS-diluted guidance range excludes the expected 2017 unfavorable impact of $.15 per diluted share resulting from the implementation of electronic health records ("EHR") applications at our acute care hospitals, consisting of the depreciation and amortization expense incurred on the purchase and implementation costs.
  • This guidance range excludes the impact on our provision for income taxes and net income attributable to UHS resulting from of our January 1, 2017 adoption of ASU 2016-09, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting", as discussed below.

Effective January 1, 2017, we adopted ASU 2016-09, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting", which amends the accounting for employee share-based payment transactions to require recognition of the tax effects resulting from the settlement of stock-based awards as income tax expense or benefit in the income statement in the reporting period in which they occur.  Since the impact of ASU 2016-09 on our future financial statements is dependent upon the timing of stock option exercises, and the market price of our stock at the time of exercise, we are unable to estimate the impact this adoption will have on our 2017 provision for income taxes and net income attributable to UHS.  This reporting change is applied prospectively and prior period amounts will not be restated. 

Share Repurchase Program:

In February of 2016, our Board of Directors authorized a $400 million increase to our stock repurchase program, which increased the aggregate authorization to $800 million from the previous $400 million authorization approved during the third quarter of 2014.  Pursuant to this program, we may purchase shares of our Class B Common Stock, from time to time as conditions allow, on the open market or in negotiated private transactions. 

In conjunction with this program, during the fourth quarter of 2016, we have repurchased 475,000 shares at an aggregate cost of $51.8 million (approximately $109 per share).  During the twelve months ended December 31, 2016, we have repurchased approximately 2.5 million shares at an aggregate cost of $289.9 million (approximately $115 per share). Since inception of the program through December 31, 2016, we have repurchased approximately 4.39 million shares at an aggregate cost of approximately $514.1 million (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 March 1, 2017. 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, 2016), 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, EBITDA and adjusted 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 related to the implementation of EHR applications at our acute care hospitals and other items that are nonrecurring or non-operational in nature including, but not limited to, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits, impairments of long-lived assets, the impact on our provision for income taxes and net income attributable to UHS resulting from our adoption of ASU 2016-09, and other material 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, 2016. 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.

 

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)










Three months


Twelve months


ended December 31,


ended December 31,


2016


2015


2016


2015









Net revenues before provision for doubtful accounts

$2,638,436


$2,512,872


$10,507,788


$9,784,724

  Less: Provision for doubtful accounts

162,751


197,633


741,578


741,273

Net revenues

2,475,685


2,315,239


9,766,210


9,043,451









Operating charges:








   Salaries, wages and benefits

1,156,729


1,079,394


4,585,530


4,212,387

   Other operating expenses

614,490


548,745


2,359,339


2,119,805

   Supplies expense

263,872


252,109


1,031,337


974,088

   Depreciation and amortization

107,436


102,921


416,608


398,618

   Lease and rental expense

24,267


24,342


97,324


94,973

   Electronic health records incentive income

(5,339)


(14,064)


(5,339)


(15,815)


2,161,455


1,993,447


8,484,799


7,784,056









Income from operations

314,230


321,792


1,281,411


1,259,395









Interest expense, net

32,882


28,643


125,053


113,494









Income before income taxes

281,348


293,149


1,156,358


1,145,901









Provision for income taxes

102,610


101,832


409,187


395,203









Net income

178,738


191,317


747,171


750,698









Less:  Net income attributable to








noncontrolling interests

4,530


17,568


44,762


70,170









Net income attributable to UHS

$174,208


$173,749


$702,409


$680,528

















































Basic earnings per share attributable to UHS (a)

$1.80


$1.76


$7.22


$6.89









Diluted earnings per share attributable to UHS (a)

$1.78


$1.74


$7.14


$6.76

 

 

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)










Three months


Twelve months


ended December 31,


ended December 31,


2016


2015


2016


2015









(a) Earnings per share calculation:
















Basic and diluted:








Net income attributable to UHS

$174,208


$173,749


$702,409


$680,528

Less: Net income attributable to unvested restricted share grants

(72)


(60)


(314)


(281)

Net income attributable to UHS - basic and diluted

$174,136


$173,689


$702,095


$680,247









Weighted average number of common shares - basic

96,998


98,416


97,208


98,797









Basic earnings per share attributable to UHS:

$1.80


$1.76


$7.22


$6.89









Weighted average number of common shares

96,998


98,416


97,208


98,797

Add: Other share equivalents

917


1,627


1,172


1,897

Weighted average number of common shares and equiv. - diluted

97,915


100,043


98,380


100,694









Diluted earnings per share attributable to UHS:

$1.78


$1.74


$7.14


$6.76

 

 

 

Universal Health Services, Inc.

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

For the three months ended December 31, 2016 and 2015

(in thousands, except per share amounts)

(unaudited)

























Calculation of "EBITDA"










Three months ended


Three months ended


December 31, 2016


December 31, 2015

















Net revenues before provision for doubtful accounts

$2,638,436




$2,512,872



  Less: Provision for doubtful accounts

162,751




197,633



Net revenues

2,475,685


100.0%


2,315,239


100.0%









Operating charges:








   Salaries, wages and benefits

1,156,729


46.7%


1,079,394


46.6%

   Other operating expenses

614,490


24.8%


548,745


23.7%

   Supplies expense

263,872


10.7%


252,109


10.9%

   EHR incentive income

(5,339)


-0.2%


(14,064)


-0.6%


2,029,752


82.0%


1,866,184


80.6%









Operating income/margin ("EBITDAR")

445,933


18.0%


449,055


19.4%









   Lease and rental expense

24,267




24,342



   Net income attributable to noncontrolling interests

4,530




17,568











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

417,136


16.8%


407,145


17.6%









   Depreciation and amortization

107,436




102,921



   Interest expense, net

32,882




28,643











Income before income taxes 

276,818




275,581











Provision for income taxes

102,610




101,832



Net income attributable to UHS

$174,208




$173,749



















Calculation of Adjusted Net Income Attributable to UHS










Three months ended


Three months ended


December 31, 2016


December 31, 2015




Per




Per


Amount


Diluted Share


Amount


Diluted Share

Calculation of Adjusted Net Income Attributable to UHS








Net income attributable to UHS

$174,208


$1.78


$173,749


$1.74









Plus/minus impact of EHR implementation: 








EHR-related incentive income, pre-tax

(5,339)




(14,064)



EHR-related depreciation & amortization, pre-tax

8,289




9,306



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

(128)




(152)



Income tax provision on EHR-related items 

(1,052)




1,830



After-tax impact of EHR-related items

1,770


0.02


(3,080)


(0.03)

Adjusted net income attributable to UHS

$175,978


$1.80


$170,669


$1.71

 

 

Universal Health Services, Inc.

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

For the twelve months ended December 31, 2016 and 2015

(in thousands, except per share amounts)

(unaudited)

























Calculation of "EBITDA"










Twelve months ended


Twelve months ended


December 31, 2016


December 31, 2015

















Net revenues before provision for doubtful accounts

$10,507,788




$9,784,724



  Less: Provision for doubtful accounts

741,578




741,273



Net revenues

9,766,210


100.0%


9,043,451


100.0%









Operating charges:








   Salaries, wages and benefits

4,585,530


47.0%


4,212,387


46.6%

   Other operating expenses

2,359,339


24.2%


2,119,805


23.4%

   Supplies expense

1,031,337


10.6%


974,088


10.8%

   EHR incentive income

(5,339)


-0.1%


(15,815)


-0.2%


7,970,867


81.6%


7,290,465


80.6%









Operating income/margin ("EBITDAR")

1,795,343


18.4%


1,752,986


19.4%









   Lease and rental expense

97,324




94,973



   Net income attributable to noncontrolling interests

44,762




70,170











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

1,653,257


16.9%


1,587,843


17.6%









   Depreciation and amortization

416,608




398,618



   Interest expense, net

125,053




113,494











Income before income taxes 

1,111,596




1,075,731











Provision for income taxes

409,187




395,203



Net income attributable to UHS

$702,409




$680,528



















Calculation of Adjusted Net Income Attributable to UHS










Twelve months ended


Twelve months ended


December 31, 2016


December 31, 2015




Per




Per


Amount


Diluted Share


Amount


Diluted Share

Calculation of Adjusted Net Income Attributable to UHS








Net income attributable to UHS

$702,409


$7.14


$680,528


$6.76









Plus/minus impact of EHR implementation: 








EHR-related incentive income, pre-tax

(5,339)




(15,815)



EHR-related depreciation & amortization, pre-tax

35,511




37,224



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

(1,746)




(3,044)



Income tax provision on EHR-related items 

(10,596)




(6,846)



After-tax impact of EHR-related items

17,830


0.18


11,519


0.11

Adjusted net income attributable to UHS

$720,239


$7.32


$692,047


$6.87

 

 

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)










Three months


Twelve months


ended December 31,


ended December 31,


2016


2015


2016


2015









Net income

$178,738


$191,317


$747,171


$750,698

Other comprehensive income (loss):








   Unrealized derivative gains on cash flow hedges

13,082


9,920


1,438


4,970

   Amortization of terminated hedge

0


(84)


(167)


(336)

   Unrealized loss on marketable security

(1,474)


0


(2,229)


0

   Minimum pension liability

13,356


2,177


13,356


2,177

   Foreign currency translation adjustment

(888)


(1,632)


(10,038)


(1,728)

Other comprehensive income before tax

24,076


10,381


2,360


5,083

Income tax expense related to items of other comprehensive income

9,329


4,510


4,648


2,980

Total other comprehensive income (loss), net of tax

14,747


5,871


(2,288)


2,103









Comprehensive income

193,485


197,188


744,883


752,801

Less: Comprehensive income attributable to noncontrolling interests

4,530


17,568


44,762


70,170

Comprehensive income attributable to UHS

$188,955


$179,620


$700,121


$682,631

 

 

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)










December 31,



December 31,




2016



2015


Assets







Current assets:







    Cash and cash equivalents

$

33,747


$

61,228


    Accounts receivable, net


1,439,553



1,302,429


    Supplies


125,365



116,037


    Deferred income taxes


0



135,120


    Other current assets


82,706



103,490


          Total current assets


1,681,371



1,718,304









Property and equipment


7,314,437



6,530,569


Less: accumulated depreciation


(2,983,481)



(2,694,591)




4,330,956



3,835,978









Other assets:







    Goodwill


3,784,106



3,596,114


    Deferred charges


13,520



16,688


    Deferred income taxes


1,234



0


    Other


506,615



448,360


Total Assets

$

10,317,802


$

9,615,444









Liabilities and Stockholders' Equity







Current liabilities:







    Current maturities of long-term debt

$

105,895


$

62,722


    Accounts payable and accrued liabilities


1,209,329



1,033,697


    Federal and state taxes


2,149



3,987


          Total current liabilities


1,317,373



1,100,406









Other noncurrent liabilities


275,167



278,834


Long-term debt


4,030,230



3,368,634


Deferred income taxes


88,119



315,900









Redeemable noncontrolling interest


9,319



242,509









UHS common stockholders' equity


4,533,220



4,249,647


Noncontrolling interest


64,374



59,514


          Total equity


4,597,594



4,309,161









Total Liabilities and Stockholders' Equity

$

10,317,802


$

9,615,444


 

 

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


Twelve months


ended December 31,


2016


2015





Cash Flows from Operating Activities:




  Net income

$747,171


$750,698

  Adjustments to reconcile net income to net 




  cash provided by operating activities:




  Depreciation & amortization

416,608


398,618

  Stock-based compensation expense

48,109


39,971

  Gains on sales of assets and businesses

0


(3,615)

  Changes in assets & liabilities, net of effects from




  acquisitions and dispositions:




   Accounts receivable

(87,881)


(45,814)

   Accrued interest

9,766


(693)

   Accrued and deferred income taxes 

22,068


(34,394)

   Other working capital accounts 

74,489


(125,556)

   Other assets and deferred charges

(25,671)


6,631

   Other 

81,139


23,295

   Accrued insurance expense, net of commercial premiums paid

84,638


90,895

   Payments made in settlement of self-insurance claims

(81,962)


(79,138)

          Net cash provided by operating activities

1,288,474


1,020,898





Cash Flows from Investing Activities:




   Property and equipment additions, net of disposals

(519,939)


(379,321)

   Proceeds received from sale of assets and businesses

0


3,391

   Acquisition of property and businesses

(613,803)


(533,655)

   Increase in capital reserves of commercial insurance subsidiary

(32,000)


(3,300)

   Costs incurred for purchase and implementation of information technology application

(21,475)


0

          Net cash used in investing activities

(1,187,217)


(912,885)





Cash Flows from Financing Activities:




   Reduction of long-term debt

(459,183)


(68,166)

   Additional borrowings

1,170,800


234,400

   Acquisition of noncontrolling interests in majority owned businesses

(418,000)


0

   Financing costs

(12,449)


(515)

   Repurchase of common shares

(353,380)


(209,782)

   Dividends paid

(38,875)


(39,532)

   Issuance of common stock

9,503


8,441

   Excess income tax benefits related to stock-based compensation

45,219


47,364

   Profit distributions to noncontrolling interests

(69,583)


(62,220)

   Proceeds received from sale/leaseback of real property

0


12,765

          Net cash used in financing activities

(125,948)


(77,245)





   Effect of exchange rate changes on cash and cash equivalents

(2,790)


(1,609)

(Decrease) increase in cash and cash equivalents

(27,481)


29,159

Cash and cash equivalents, beginning of period

61,228


32,069

Cash and cash equivalents, end of period

$33,747


$61,228





Supplemental Disclosures of Cash Flow Information:




  Interest paid

$107,079


$107,054





  Income taxes paid, net of refunds

$344,611


$380,658





  Noncash purchases of property and equipment

$65,702


$49,086

 

 

Universal Health Services, Inc.



Supplemental Statistical Information



(unaudited)





















 % Change 


 % Change 








Quarter ended


12 months ended



Same Facility:





12/31/2016


12/31/2016













Acute Care Services










Revenues





9.3%


9.4%



Adjusted Admissions





4.7%


5.2%



Adjusted Patient Days





3.2%


3.3%



Revenue Per Adjusted Admission





2.6%


2.5%



Revenue Per Adjusted Patient Day




4.2%


4.5%

































Behavioral Health Care Services









Revenues





2.2%


2.6%



Adjusted Admissions





2.1%


1.0%



Adjusted Patient Days





1.4%


0.9%



Revenue Per Adjusted Admission





-0.1%


1.4%



Revenue Per Adjusted Patient Day




0.5%


1.5%











































UHS Consolidated



Fourth quarter ended


Twelve months ended




12/31/2016


12/31/2015


12/31/2016


12/31/2015











Revenues



$2,475,685


$2,315,239


$9,766,210


$9,043,451

EBITDA (1)



$417,136


$407,145


$1,653,257


$1,587,843

EBITDA Margin (1)



16.8%


17.6%


16.9%


17.6%





















Cash Flow From Operations



$188,369


$224,399


$1,288,474


$1,020,898

Days Sales Outstanding



52


52


53


53

Capital Expenditures  



$123,776


$109,743


$519,939


$379,321











Debt 







$4,136,125


$3,431,356

UHS' Shareholders Equity







$4,533,220


$4,249,647

Debt / Total Capitalization







47.7%


44.7%

Debt / EBITDA (2)







2.50


2.16

Debt / Cash From Operations (2)







3.21


3.36





















Acute Care EBITDAR Margin (3)



16.5%


17.2%


17.5%


18.1%

Behavioral Health EBITDAR Margin (3)

26.0%


26.8%


27.0%


27.8%





















(1)  Net of Minority Interest 

(2)  Latest 4 quarters

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

 

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the Three Months ended

December 31, 2016 and 2015



















AS REPORTED:





























ACUTE


BEHAVIORAL HEALTH



12/31/16

12/31/15

%  change


12/31/16

12/31/15

%  change










Hospitals owned and leased


26

24

8.3%


214

213

0.5%

Average licensed beds


6,100

5,854

4.2%


21,884

21,628

1.2%

Patient days


309,916

299,524

3.5%


1,488,685

1,473,065

1.1%

Average daily census


3,368.7

3,255.7

3.5%


16,181.4

16,011.6

1.1%

Occupancy-licensed beds


55.2%

55.6%

-0.7%


73.9%

74.0%

-0.1%

Admissions


69,411

65,802

5.5%


111,080

108,646

2.2%

Length of stay


4.5

4.6

-1.9%


13.4

13.6

-1.5%










Inpatient revenue


$4,746,830

$4,214,646

12.6%


$2,030,155

$1,891,006

7.4%

Outpatient revenue


2,913,066

2,472,740

17.8%


233,645

215,969

8.2%

Total patient revenue


7,659,896

6,687,386

14.5%


2,263,800

2,106,975

7.4%

Other revenue


117,385

94,222

24.6%


53,553

49,363

8.5%

Gross hospital revenue


7,777,281

6,781,608

14.7%


2,317,353

2,156,338

7.5%










Total deductions


6,322,401

5,423,707

16.6%


1,135,549

1,003,219

13.2%










Net hospital revenue before 









  provision for doubtful accounts


1,454,880

1,357,901

7.1%


1,181,804

1,153,119

2.5%










Provision for doubtful accounts


136,271

172,134

-20.8%


26,478

25,498

3.8%










Net hospital revenue 


$1,318,609

$1,185,767

11.2%


$1,155,326

$1,127,621

2.5%



















SAME FACILITY:




















ACUTE (1)


BEHAVIORAL HEALTH (2)



12/31/16

12/31/15

%  change


12/31/16

12/31/15

%  change










Hospitals owned and leased


24

24

0.0%


211

211

0.0%

Average licensed beds


5,945

5,854

1.6%


21,728

21,436

1.4%

Patient days


307,151

299,524

2.5%


1,485,165

1,464,042

1.4%

Average daily census


3,338.6

3,255.7

2.5%


16,143.1

15,913.5

1.4%

Occupancy-licensed beds


56.2%

55.6%

1.0%


74.3%

74.2%

0.1%

Admissions


68,505

65,802

4.1%


110,852

108,607

2.1%

Length of stay


4.5

4.6

-1.5%


13.4

13.5

-0.6%



















(1) Henderson Hospital and Desert View Hospital are excluded in current year.

(2) Cedar Ridge of Bethany and Skywood Recovery are excluded in current year.

 

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the Twelve Months ended

December 31, 2016 and 2015



















AS REPORTED:





























ACUTE


BEHAVIORAL HEALTH



12/31/16

12/31/15

%  change


12/31/16

12/31/15

%  change










Hospitals owned and leased


26

24

8.3%


214

213

0.5%

Average licensed beds


5,934

5,832

1.7%


21,829

21,202

3.0%

Patient days


1,251,511

1,218,991

2.7%


6,004,066

5,835,134

2.9%

Average daily census


3,419.4

3,339.7

2.4%


16,404.6

15,986.7

2.6%

Occupancy-licensed beds


57.6%

57.3%

0.6%


75.2%

75.4%

-0.3%

Admissions


274,074

261,727

4.7%


456,052

447,007

2.0%

Length of stay


4.6

4.7

-2.0%


13.2

13.1

0.9%










Inpatient revenue


$19,042,627

$16,847,944

13.0%


$8,017,585

$7,456,397

7.5%

Outpatient revenue


11,374,098

9,604,952

18.4%


902,102

839,884

7.4%

Total patient revenue


30,416,725

26,452,896

15.0%


8,919,687

8,296,281

7.5%

Other revenue


462,274

362,620

27.5%


210,714

206,563

2.0%

Gross hospital revenue


30,878,999

26,815,516

15.2%


9,130,401

8,502,844

7.4%










Total deductions


25,138,222

21,551,939

16.6%


4,371,640

3,992,367

9.5%










Net hospital revenue before 









  provision for doubtful accounts


5,740,777

5,263,577

9.1%


4,758,761

4,510,477

5.5%










Provision for doubtful accounts


627,827

631,013

-0.5%


113,754

110,142

3.3%










Net hospital revenue 


$5,112,950

$4,632,564

10.4%


$4,645,007

$4,400,335

5.6%



















SAME FACILITY:




















ACUTE (1)


BEHAVIORAL HEALTH (2)



12/31/16

12/31/15

%  change


12/31/16

12/31/15

%  change










Hospitals owned and leased


24

24

0.0%


211

211

0.0%

Average licensed beds


5,891

5,831

1.0%


21,256

20,953

1.4%

Patient days


1,248,023

1,218,991

2.4%


5,860,319

5,790,871

1.2%

Average daily census


3,409.9

3,339.7

2.1%


16,011.8

15,865.4

0.9%

Occupancy-licensed beds


57.9%

57.3%

1.1%


75.3%

75.7%

-0.5%

Admissions


273,022

261,727

4.3%


452,074

446,175

1.3%

Length of stay


4.6

4.7

-1.9%


13.0

13.0

-0.1%



















(1) Henderson Hospital and Desert View Hospital are excluded in current year.

(2) Cedar Ridge of Bethany and Skywood Recovery are excluded in current year.

 

 

 

Universal Health Services, Inc.

Supplemental Non-GAAP Disclosures

2017 Operating Results Forecast

(in thousands, except per share amounts)


















    Forecast For The Year Ending December 31, 2017



Low




High



Unadjusted

EHR (d)

Adjusted


Unadjusted

EHR (d)

Adjusted

Net revenues

$10,620,000

$0

$10,620,000


$10,760,000

$0

$10,760,000









Net income/adjusted net income attributable to UHS (a) (b) (c)

726,818

14,002

740,820


774,555

14,002

788,557

 Depreciation and amortization

443,910

(22,552)

421,358


443,910

(22,552)

421,358

 Interest expense

160,085

0

160,085


160,085

0

160,085

 Provision for income taxes (c)

415,238

8,321

423,559


442,510

8,321

450,831

EBITDA/Adjusted EBITDA (a) (b)

1,746,051

(229)

1,745,822


1,821,060

(229)

1,820,831









Diluted earnings/adjusted earnings per share:








Net income/adjusted net income attributable to UHS (a) (b) (c)

$7.55

$0.15

$7.70


$8.05

$0.15

$8.20









Shares used in computing diluted earnings per share

96,176

96,176

96,176


96,176

96,176

96,176









(a) The 2017 forecasted amounts exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including  

items such as, but not limited to, the impact of gains/losses 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 set forth in the 

accompanying report in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.


(b) Adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA and adjusted EBITDA are non-GAAP

financial measures.  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 consolidated financial statements and notes thereto in this report or in

our filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2016.


(c) Excludes the impact on our provision for income taxes and net income attributable to UHS/per diluted share resulting from our January 1, 2017

adoption of ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting",

as discussed in the accompanying report.









(d) Represents the depreciation and amortization expense incurred on the cost to develop and implement electronic health records ("EHR")

applications at our acute care hospitals.

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/universal-health-services-inc-reports-2016-fourth-quarter-and-full-year-earnings-and-2017-guidance-300415152.html

SOURCE Universal Health Services, Inc.

Steve Filton, Chief Financial Officer, 610-768-3300

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