uhs-8k_20210426.htm
false 0000352915 0000352915 2021-04-26 2021-04-26

 

 

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 26, 2021

 

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 Instructions A.2. below):

Written communications 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 communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

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

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class B Common Stock

UHS

New York Stock Exchange

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

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 26, 2021, 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 26, 2021.

104

  

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

Exhibit Index

 

Exhibit No.

  

Exhibit

 

 

99.1

  

Universal Health Services, Inc., press release, dated April 26, 2021.

104

  

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 


 

 

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 27, 2021

 

 

 

 

uhs-ex991_6.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 26, 2021

 

CONTACT:

Steve Filton

 

Chief Financial Officer

 

610-768-3300

 

 

UNIVERSAL HEALTH SERVICES, INC.

ANNOUNCES 2021 FIRST QUARTER FINANCIAL RESULTS AND PLANS TO RETURN CARES ACT GRANTS RECEIVED DURING FIRST QUARTER OF 2021

 

Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended March 31, 2021 and 2020:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $209.1 million, or $2.43 per diluted share, during the first quarter of 2021, as compared to $142.0 million, or $1.64 per diluted share, during the first quarter of 2020. Net revenues increased 6.5% to $3.013 billion during the first quarter of 2021 as compared to $2.830 billion during the first quarter of 2020.

 

During the first quarter of 2021, we received approximately $188 million of additional funds from the federal government in connection with the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). We have begun coordinating the return of the funds with the appropriate government agencies and expect to return the $188 million during the second quarter of 2021 utilizing a portion of our cash and cash equivalents held on deposit. Therefore, our results of operations for the quarter ended March 31, 2021 include no impact from the receipt of those funds.

 

Also, and as previously announced earlier this year, in March of 2021 we funded the early repayment of $695 million of funds received during 2020 pursuant to the Medicare Accelerated and Advance Payment Program. These funds were returned to the government utilizing a portion of our cash and cash equivalents held on deposit.      

 

As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the first quarter of 2021 was $210.1 million, or $2.44 per diluted share, as compared to $150.2 million, or $1.73 per diluted share, during the first quarter of 2020.  

 

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2021, was a net aggregate unfavorable after-tax impact of $1.1 million, or $.01 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $2.1 million, or $.02 per diluted share, ($2.8 million pre-tax which is 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, and; (ii) a favorable after-tax impact of $1.1 million, or $.01 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 2020, was a net aggregate unfavorable after-tax impact of $8.1 million, or $.09 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $7.4 million, or $.08 per diluted share, ($9.6 million pre-tax which is 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, and; (ii) a unfavorable after-tax impact of $0.8 million, or $.01 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 $426.3 million during the first quarter of 2021, as compared to $349.1 million during the first quarter of 2020. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $427.1 million during the first quarter of 2021 as compared to $358.7 million during the first quarter of 2020.

 

Acute Care Services – Three-month periods ended March 31, 2021 and 2020:

During the first quarter of 2021 adjusted admissions (adjusted for outpatient activity), at our acute care hospitals owned during both periods (“same facility basis”), decreased 12.1% and adjusted patient days decreased 0.7%, as compared to the first quarter of 2020. At these facilities, net revenue per adjusted admission increased 26.3% while net revenue per adjusted patient day increased 11.8% during the first quarter of 2021 as compared to the first quarter of 2020. Net revenues generated from our acute care services on a same facility basis increased 11.7% during the first quarter of 2021 as compared to the first quarter of 2020.  

 

Behavioral Health Care Services – Three-month periods ended March 31, 2021 and 2020:

During the first quarter of 2021 adjusted admissions, at our behavioral health care facilities on a same facility basis, decreased 4.9% and adjusted patient days decreased 3.8%, as compared to the first quarter of 2020. At these facilities, net revenue per adjusted admission increased 6.2% while net revenue per adjusted patient day increased 4.9% during the first quarter of 2021 as compared to the comparable quarter in 2020. Net revenues generated from our behavioral health care services on a same facility basis increased 0.9% during the first quarter of 2021 as compared to the first quarter of 2020.      

 

COVID-19

The impact of the COVID-19 pandemic, which began during the second half of March, 2020, has had a material unfavorable effect on our operations and financial results since that time. The COVID-19 vaccination process commenced during the first quarter of 2021 and, while we expect the administration of vaccines will assist in easing the number of COVID-19 patients, the pace of distribution and the portion of the population that will ultimately become vaccinated is difficult to predict. The extent to which the COVID-19 pandemic and measures taken in response thereto impact our business, results of operations and financial condition will depend on numerous factors and future developments, most of which are beyond our control or ability to predict. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change. We are not able to fully quantify the impact that these factors will have on our future financial results.

 

Net Cash Provided by Operating Activities and Liquidity:

 

Net Cash Provided by Operating Activities:

For the three months ended March 31, 2021, our net cash provided by operating activities was $72 million as compared to $502 million during the first quarter of 2020.  The $430 million net decrease in our cash provided by operating activities during the first quarter of 2021, as compared to the first quarter of 2020, was due to: (i) an unfavorable change of $509 million resulting primarily from the above-mentioned $695 million of Medicare accelerated payments repaid during the first quarter of 2021, net of the $188 million of CARES Act grants received during the first quarter of 2021; (ii) a favorable change of $72 million resulting from an increase in net income plus depreciation and amortization expense and stock-based compensation expense, and; (iii) $7 million of other combined net favorable changes.  

 

Liquidity:

As of March 31, 2021, we had $997 million of aggregate available borrowing capacity pursuant to our $1 billion revolving credit facility, net of outstanding letters of credit. In addition, as of March 31, 2021, we had approximately $765 million of cash and cash equivalents.  


 

Quarterly Dividend and Stock Repurchase Program:

As previously announced, during the first quarter our Board of Directors approved a $0.20 per share cash dividend that was paid on March 31, 2021 to shareholders of record as of March 15, 2021.  

 

In addition, in April, 2021, our Board of Directors approved a resumption to our stock repurchase program, effective immediately. Pursuant to our $2.7 billion stock repurchase program, which had an aggregate available repurchase authorization of $559.6 million as of March 31, 2021, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions. Since inception of the program in 2014 through March 31, 2021, we have repurchased approximately 18.02 million shares at an aggregate cost of approximately $2.14 billion (approximately $119 per share). 

 

Conference call information:        

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 27, 2021. 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.

 

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

One of the nation’s largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues were approximately $11.6 billion during 2020. In 2021, UHS was again recognized as one of the World’s Most Admired Companies by Fortune; in 2020 ranked #281 on the Fortune 500; and listed #330 in Forbes ranking of U.S.’ Largest Public Companies.

 

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

 

Headquartered in King of Prussia, PA, UHS has approximately 89,000 employees and through its subsidiaries operates 26 acute care hospitals, 335 behavioral health facilities, 39 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 38 U.S. 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 the anticipated impact of COVID-19 on our operations and financial results, 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, 2020), may cause the results to differ materially from those anticipated in the forward-looking statements.  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.  Many of the factors that could affect our future results are beyond our control or ability to predict, including the impact of the COVID-19 pandemic. Our future operations and financial results will likely be materially impacted by developments related to COVID-19


including, but not limited to, the length of time and severity of the spread of the pandemic; the volume of cancelled or rescheduled elective procedures and the volume of COVID-19 patients treated at our hospitals and other healthcare facilities; measures we are taking to respond to the COVID-19 pandemic; the impact of government and administrative regulation and stimulus on the hospital industry and potential retrospective adjustment in future periods of CARES Act and other grant income revenues recorded as revenues in prior periods; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of business closings and layoffs); potential disruptions to our clinical staffing and shortages and disruptions related to supplies required for our employees and patients; and potential increases to expenses related to staffing, supply chain or other expenditures; the impact of our substantial indebtedness and the ability to refinance such indebtedness on acceptable terms, as well as risks associated with disruptions in the financial markets and the business of financial institutions as the result of the COVID-19 pandemic which could impact us from a financing perspective; and changes in general economic conditions nationally and regionally in our markets resulting from the COVID-19 pandemic. We are not able to fully quantify the impact that these factors will have on our future financial results, but expect developments related to the COVID-19 pandemic to materially affect our financial performance in 2021.

 

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 of material items impacting our net income attributable to UHS, such as, our adoption of ASU 2016-09, unrealized gains/losses resulting from changes in the market value of shares of certain marketable securities held for investment and classified as available for sale, 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, changes in the reserve established in connection with our discussions with the Department of Justice, 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 Report on Form 10-K for the year ended December 31, 2020. 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,

 

 

 

2021

 

 

2020

 

Net revenues

 

$

3,012,987

 

 

 

2,829,667

 

 

 

 

 

 

 

 

 

 

Operating charges:

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

1,497,773

 

 

 

1,432,669

 

Other operating expenses

 

 

709,708

 

 

 

689,790

 

Supplies expense

 

 

347,110

 

 

 

317,827

 

Depreciation and amortization

 

 

131,403

 

 

 

124,394

 

Lease and rental expense

 

 

31,324

 

 

 

28,293

 

 

 

 

2,717,318

 

 

 

2,592,973

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

295,669

 

 

 

236,694

 

Interest expense, net

 

 

21,957

 

 

 

36,351

 

Other (income) expense, net

 

 

835

 

 

 

9,560

 

Income before income taxes

 

 

272,877

 

 

 

190,783

 

Provision for income taxes

 

 

63,807

 

 

 

46,323

 

Net income

 

 

209,070

 

 

 

144,460

 

Less:  Net income attributable to noncontrolling interests

 

 

(21

)

 

 

2,423

 

Net income attributable to UHS

 

$

209,091

 

 

$

142,037

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS (a)

 

$

2.46

 

 

$

1.64

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS (a)

 

$

2.43

 

 

$

1.64

 

 



 

Universal Health Services, Inc.

 

Footnotes to Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2021

 

 

2020

 

(a) Earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted:

 

 

 

 

 

 

 

 

Net income attributable to UHS

 

$

209,091

 

 

$

142,037

 

Less: Net income attributable to unvested restricted share grants

 

 

(552

)

 

 

(373

)

Net income attributable to UHS - basic and diluted

 

$

208,539

 

 

$

141,664

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic

 

 

84,782

 

 

 

86,212

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS:

 

$

2.46

 

 

$

1.64

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

84,782

 

 

 

86,212

 

Add: Other share equivalents

 

 

1,014

 

 

 

243

 

Weighted average number of common shares and equiv. - diluted

 

 

85,796

 

 

 

86,455

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS:

 

$

2.43

 

 

$

1.64

 

 


 

Universal Health Services, Inc.

 

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

 

For the Three Months ended March 31, 2021 and 2020

 

(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, 2021

 

 

revenues

 

 

March 31, 2020

 

 

revenues

 

Net income attributable to UHS

$

209,091

 

 

 

 

 

 

$

142,037

 

 

 

 

 

   Depreciation and amortization

 

131,403

 

 

 

 

 

 

 

124,394

 

 

 

 

 

   Interest expense, net

 

21,957

 

 

 

 

 

 

 

36,351

 

 

 

 

 

   Provision for income taxes

 

63,807

 

 

 

 

 

 

 

46,323

 

 

 

 

 

EBITDA net of NCI

$

426,258

 

 

 

14.1

%

 

$

349,105

 

 

 

12.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

835

 

 

 

 

 

 

 

9,560

 

 

 

 

 

Adjusted EBITDA net of NCI

$

427,093

 

 

 

14.2

%

 

$

358,665

 

 

 

12.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

3,012,987

 

 

 

 

 

 

$

2,829,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Adjusted Net Income Attributable to UHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

March 31, 2021

 

 

March 31, 2020

 

 

 

 

 

 

Per

 

 

 

 

 

 

Per

 

 

Amount

 

 

Diluted Share

 

 

Amount

 

 

Diluted Share

 

Net income attributable to UHS

$

209,091

 

 

$

2.43

 

 

$

142,037

 

 

$

1.64

 

Plus/minus after-tax adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on marketable securities held for sale

 

2,137

 

 

 

0.02

 

 

 

7,350

 

 

 

0.08

 

Impact of ASU 2016-09

 

(1,079

)

 

 

(0.01

)

 

 

770

 

 

 

0.01

 

Subtotal adjustments

 

1,058

 

 

 

0.01

 

 

 

8,120

 

 

 

0.09

 

Adjusted net income attributable to UHS

$

210,149

 

 

$

2.44

 

 

$

150,157

 

 

$

1.73

 

 

 

 

 

 

 

 

 


 

Universal Health Services, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2021

 

 

2020

 

Net income

 

$

209,070

 

 

$

144,460

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(10,346

)

 

 

(39,201

)

Other comprehensive income (loss)  before tax

 

 

(10,346

)

 

 

(39,201

)

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

 

 

(1,466

)

 

 

(2,108

)

Total other comprehensive income (loss), net of tax

 

 

(8,880

)

 

 

(37,093

)

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

200,190

 

 

 

107,367

 

Less: Comprehensive income attributable to noncontrolling interests

 

 

(21

)

 

 

2,423

 

Comprehensive income attributable to UHS

 

$

200,211

 

 

$

104,944

 

 


 

Universal Health Services, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

764,502

 

 

$

1,224,490

 

Accounts receivable, net

 

 

1,668,650

 

 

 

1,728,928

 

Supplies

 

 

193,961

 

 

 

190,417

 

Other current assets

 

 

157,052

 

 

 

138,034

 

Total current assets

 

 

2,784,165

 

 

 

3,281,869

 

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

10,119,037

 

 

 

9,885,888

 

Less: accumulated depreciation

 

 

(4,623,435

)

 

 

(4,512,764

)

 

 

 

5,495,602

 

 

 

5,373,124

 

Other assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

3,886,973

 

 

 

3,882,715

 

Deferred income taxes

 

 

23,514

 

 

 

22,689

 

Right of use assets-operating leases

 

 

326,703

 

 

 

336,513

 

Deferred charges

 

 

4,782

 

 

 

4,985

 

Other

 

 

574,590

 

 

 

574,984

 

Total Assets

 

$

13,096,329

 

 

$

13,476,879

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

107,281

 

 

$

331,998

 

Accounts payable and other liabilities

 

 

1,779,700

 

 

 

1,668,671

 

Medicare accelerated payments and deferred CARES Act and other grants

 

 

189,320

 

 

 

376,151

 

Operating lease liabilities

 

 

60,812

 

 

 

59,796

 

Federal and state taxes

 

 

102,266

 

 

 

44,423

 

Total current liabilities

 

 

2,239,379

 

 

 

2,481,039

 

 

 

 

 

 

 

 

 

 

Other noncurrent liabilities

 

 

476,377

 

 

 

458,549

 

Operating lease liabilities noncurrent

 

 

267,707

 

 

 

278,303

 

Medicare accelerated payments noncurrent

 

 

0

 

 

 

322,617

 

Long-term debt

 

 

3,505,822

 

 

 

3,524,253

 

Deferred income taxes

 

 

735

 

 

 

5,582

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

4,470

 

 

 

4,569

 

 

 

 

 

 

 

 

 

 

UHS common stockholders' equity

 

 

6,513,862

 

 

 

6,317,146

 

Noncontrolling interest

 

 

87,977

 

 

 

84,821

 

Total equity

 

 

6,601,839

 

 

 

6,401,967

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

13,096,329

 

 

$

13,476,879

 

 


 

Universal Health Services, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

(unaudited)

 

 

Three months

 

 

ended March 31,

 

 

2021

 

 

2020

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

Net income

$

209,070

 

 

$

144,460

 

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

 

 

 

 

 

 

 

Depreciation & amortization

 

131,403

 

 

 

124,394

 

Stock-based compensation expense

 

18,022

 

 

 

18,047

 

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

 

 

 

 

 

 

 

Accounts receivable

 

56,851

 

 

 

69,763

 

Accrued interest

 

10,133

 

 

 

(4,412

)

Accrued and deferred income taxes

 

53,769

 

 

 

45,200

 

Other working capital accounts

 

82,663

 

 

 

73,929

 

Medicare accelerated payments and deferred CARES Act and other grants

 

(509,448

)

 

 

0

 

Other assets and deferred charges

 

(17

)

 

 

11,084

 

Other

 

2,623

 

 

 

(3,038

)

Accrued insurance expense, net of commercial premiums paid

 

35,467

 

 

 

49,559

 

Payments made in settlement of self-insurance claims

 

(18,741

)

 

 

(26,924

)

Net cash provided by operating activities

 

71,795

 

 

 

502,062

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Property and equipment additions, net of disposals

 

(247,459

)

 

 

(184,102

)

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

 

(14,264

)

 

 

51,691

 

Increase in capital reserves of commercial insurance subsidiary

 

100

 

 

 

0

 

Costs incurred for purchase and implementation of information technology applications

 

(575

)

 

 

(1,857

)

Investment in, and advances to, joint venture and other

 

(129

)

 

 

(751

)

Net cash used in investing activities

 

(262,327

)

 

 

(135,019

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Reduction of long-term debt

 

(251,830

)

 

 

(185,098

)

Additional borrowings

 

0

 

 

 

5,453

 

Repurchase of common shares

 

(7,464

)

 

 

(172,092

)

Dividends paid

 

(17,018

)

 

 

(17,344

)

Issuance of common stock

 

3,357

 

 

 

3,002

 

Profit distributions to noncontrolling interests

 

(4,525

)

 

 

(5,735

)

Purchase of ownership interests by minority member

 

7,603

 

 

 

0

 

Net cash used in financing activities

 

(269,877

)

 

 

(371,814

)

 

 

 

 

 

 

 

 

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

 

423

 

 

 

(1,673

)

Decrease in cash, cash equivalents and restricted cash

 

(459,986

)

 

 

(6,444

)

Cash, cash equivalents and restricted cash, beginning of period

 

1,279,154

 

 

 

105,667

 

Cash, cash equivalents and restricted cash, end of period

$

819,168

 

 

$

99,223

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

 

 

Interest paid

$

11,421

 

 

$

39,483

 

Income taxes paid, net of refunds

$

8,654

 

 

$

6,783

 

Noncash purchases of property and equipment

$

60,124

 

 

$

58,935

 

 


 

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

Same Facility:

 

 

 

 

 

3 months ended

 

 

 

 

 

 

3/31/2021

Acute Care Services

 

 

 

 

 

 

Revenues

 

 

11.7%

Adjusted Admissions

 

 

-12.1%

Adjusted Patient Days

 

 

-0.7%

Revenue Per Adjusted Admission

 

 

26.3%

Revenue Per Adjusted Patient Day

 

 

11.8%

 

 

 

 

 

 

 

Behavioral Health Care Services

 

 

 

 

 

 

Revenues

 

 

0.9%

Adjusted Admissions

 

 

-4.9%

Adjusted Patient Days

 

 

-3.8%

Revenue Per Adjusted Admission

 

 

6.2%

Revenue Per Adjusted Patient Day

 

 

4.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UHS Consolidated

 

 

 

Three months ended

 

 

 

 

3/31/2021

 

3/31/2020

Revenues

 

 

 

$3,012,987

 

$2,829,667

EBITDA net of NCI

 

 

 

$426,258

 

$349,105

EBITDA Margin net of NCI

 

 

 

14.1%

 

12.3%

Adjusted EBITDA net of NCI

 

 

 

$427,093

 

$358,665

Adjusted EBITDA Margin net of NCI

 

 

 

14.2%

 

12.7%

 

 

 

 

 

 

 

Cash Flow From Operations

 

 

 

$71,795

 

$502,062

Days Sales Outstanding

 

 

 

50

 

48

Capital Expenditures

 

 

 

$247,459

 

$184,102

 

 

 

 

 

 

 

Debt

 

 

 

$3,613,103

 

$3,805,320

UHS' Shareholders Equity

 

 

 

$6,513,862

 

$5,413,209

Debt / Total Capitalization

 

 

 

35.7%

 

41.3%

Debt / EBITDA net of NCI (1)

 

 

 

1.87

 

2.37

Debt / Adjusted EBITDA net of NCI (1)

 

 

 

1.87

 

2.23

Debt / Cash From Operations (1)

 

 

 

1.87

 

2.52

Net Debt / EBITDA net of NCI (1) (2)

 

 

 

1.48

 

 

Net Debt / Adjusted EBITDA net of NCI (1) (2)

 

1.48

 

 

Net Debt / Cash From Operations (1) (2)

 

 

 

1.48

 

 

 

 

 

 

 

 

 

(1) Latest 4 quarters

 

 

 

(2) Debt, net of approximately $749,000 of short-term cash investments as of March 31, 2021.



 

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three Months ended

March 31, 2021 and 2020

(in thousands)

 

Same Facility Basis - Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

 

Amount

 

 

% of Net

Revenues

 

 

Amount

 

 

% of Net

Revenues

 

Net revenues

 

$

1,671,836

 

 

 

100.0

%

 

$

1,497,123

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

706,811

 

 

 

42.3

%

 

 

658,929

 

 

 

44.0

%

Other operating expenses

 

 

393,207

 

 

 

23.5

%

 

 

375,531

 

 

 

25.1

%

Supplies expense

 

 

296,478

 

 

 

17.7

%

 

 

264,530

 

 

 

17.7

%

Depreciation and amortization

 

 

81,184

 

 

 

4.9

%

 

 

77,928

 

 

 

5.2

%

Lease and rental expense

 

 

20,112

 

 

 

1.2

%

 

 

16,020

 

 

 

1.1

%

Subtotal-operating expenses

 

 

1,497,792

 

 

 

89.6

%

 

 

1,392,938

 

 

 

93.0

%

Income from operations

 

 

174,044

 

 

 

10.4

%

 

 

104,185

 

 

 

7.0

%

Interest expense, net

 

 

246

 

 

 

0.0

%

 

 

618

 

 

 

0.0

%

Other (income) expense, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Income before income taxes

 

$

173,798

 

 

 

10.4

%

 

$

103,567

 

 

 

6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2021

 

 

March 31, 2020

 

 

 

Amount

 

 

% of Net

Revenues

 

 

Amount

 

 

% of Net

Revenues

 

Net revenues

 

$

1,694,542

 

 

 

100.0

%

 

$

1,521,049

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

707,218

 

 

 

41.7

%

 

 

658,959

 

 

 

43.3

%

Other operating expenses

 

 

416,007

 

 

 

24.5

%

 

 

399,457

 

 

 

26.3

%

Supplies expense

 

 

296,479

 

 

 

17.5

%

 

 

264,530

 

 

 

17.4

%

Depreciation and amortization

 

 

81,362

 

 

 

4.8

%

 

 

77,928

 

 

 

5.1

%

Lease and rental expense

 

 

20,112

 

 

 

1.2

%

 

 

16,020

 

 

 

1.1

%

Subtotal-operating expenses

 

 

1,521,178

 

 

 

89.8

%

 

 

1,416,894

 

 

 

93.2

%

Income from operations

 

 

173,364

 

 

 

10.2