Universal Health Services, Inc. Expects to Report 30% Annual Increase in Adjusted Earnings Per Share
For the quarter ended December 31, 2001, admissions to acute care hospitals owned for more than a year increased 4.7% and admissions to behavioral health hospitals owned for more than a year increased 7.2% compared to the same quarter in the prior year. For the full year 2001, admissions to acute and behavioral health hospitals owned for more than a year increased 4.8% and 6.7% respectively compared to the full year 2000.
The Company anticipates announcing final fourth quarter and full year 2001 results on February 14, 2002, with a conference call at 9:00AM ET on February 15, 2002. The dial-in number for this call is 1-877-648-7971.
The Company anticipates net revenues for 2002 to be approximately $3.2 billion and earnings per share (diluted) of approximately $2.53. Reflecting normal seasonal patterns, the Company expects to earn approximately $1.35 per share (diluted) during the first six months of the year. The Company's earnings for 2002 will be benefited by approximately $.23 per share (diluted) by the adoption of SFAS 142 requiring the elimination of approximately $25 million of pre-tax goodwill amortization expense. The Company has not yet determined whether it will be recording a charge to earnings in 2002 to recognize the diminution in value of goodwill assets in accordance with SFAS 142.
The Company will record three unusual charges in the fourth quarter of 2001. As previously disclosed, the Company expects to take a pre-tax $40 million, or $.38 per share after tax, charge to earnings to create a new reserve for malpractice expenses that may result from the potential liquidation of the Company's malpractice insurance company. As a result of the Company's successful refinancing activities in the fourth quarter, the Company will record a pre-tax $1.6 million, or $.01 per share after tax, extraordinary expense for the early termination of a $135 million, 8-3/4% note issued in 1995. The Company will also record a pre-tax $7.4 million, or $.07 per share after tax, loss on derivative transactions resulting from the early termination of interest rate swaps. The refinancing activities reduced UHS's current cash interest expense on its outstanding debt to less than a 4% annual rate. Including these three unusual charges, the Company expects its reported earnings per share (diluted) to be $.02 and $1.60 for the three and twelve month periods ended December 31, 2001, respectively. The earnings per share for the 2001 year have been adjusted to reflect the assumed conversion of the Company's convertible debentures, however, the earnings per share for the fourth quarter have not been adjusted to assume the conversion of the debentures because the effect would have been anti-dilutive.
Universal Health Services, Inc. is one of the nation's largest hospital companies, operating in 22 states, Washington, D.C., Puerto Rico and France. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT).
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 assessment of these risks and uncertainties changes.
For additional information on the Company, visit our web site: http://www.uhsinc.com.
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CONTACT: Kirk E. Gorman, Chief Financial Officer of Universal Health Services, +1-610-768-3300 /Company News On-Call: http://www.prnewswire.com/gh/cnoc/comp/916225.html URL: http://www.uhsinc.com http://www.prnewswire.com
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