uhs-8k_20220425.htm
false 0000352915 0000352915 2022-04-25 2022-04-25

 

 

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, 2022

 

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 25, 2022, 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, 2022.

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 25, 2022.

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 26, 2022

 

 

 

 

uhs-ex991_6.htm

 

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 25, 2022

 

CONTACT:

Steve Filton

 

Chief Financial Officer

 

610-768-3300

 

 

UNIVERSAL HEALTH SERVICES, INC.

ANNOUNCES 2022 FIRST QUARTER FINANCIAL RESULTS

 

Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended March 31, 2022 and 2021:

KING OF PRUSSIA, PA – Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $153.9 million, or $2.02 per diluted share, during the first quarter of 2022, as compared to $209.1 million, or $2.43 per diluted share, during the first quarter of 2021. Net revenues increased by 9.3% to $3.293 billion during the first quarter of 2022 as compared to $3.013 billion during the first quarter of 2021.

As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the first quarter of 2022 was $163.5 million, or $2.15 per diluted share, as compared to $210.1 million, or $2.44 per diluted share, during the first quarter of 2021.  

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2022, was an unfavorable after-tax unrealized loss of $9.5 million, or $.13 per diluted share, ($12.5 million pre-tax which is included in “Other (income) expense, net”), resulting from a decrease in the market value of certain equity securities.  

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 certain equity securities, and; (ii) a favorable after-tax impact of $1.1 million, or $.01 per diluted share, resulting from ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“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 $368.3 million during the first quarter of 2022, as compared to $426.3 million during the first quarter of 2021. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $379.5 million during the first quarter of 2022, as compared to $427.1 million during the first quarter of 2021.

Acute Care Services – Three-month periods ended March 31, 2022 and 2021:

During the first quarter of 2022, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 5.7% and adjusted patient days increased by 5.5%, as compared to the first quarter of 2021. At these facilities, during the first quarter of 2022, net revenue per adjusted admission increased by 3.1% and net revenue per adjusted patient day increased by 3.3%, as compared to the first quarter of 2021. Net revenues generated from our acute care services on a same facility basis increased by 9.7% during the first quarter of 2022, as compared to the first quarter of 2021.  

 


 

Behavioral Health Care Services – Three-month periods ended March 31, 2022 and 2021:

During the first quarter of 2022, at behavioral health care facilities on a same facility basis, adjusted admissions decreased by 1.9% and adjusted patient days decreased by 1.3%, as compared to the first quarter of 2021. At these facilities, during the first quarter of 2022, net revenue per adjusted admission increased by 5.8% and net revenue per adjusted patient day increased by 5.1%, as compared to the first quarter of 2021.  Net revenues generated from our behavioral health care services increased by 3.8% during the first quarter of 2022, as compared to the first quarter of 2021.

COVID-19

The impact of the COVID-19 pandemic, which began during the second half of March, 2020, has had a material effect on our operations and financial results since that time. The COVID-19 vaccination process commenced during the first quarter of 2021. Since that time through the second quarter of 2021, we had generally experienced a decline in COVID-19 patients as well as a corresponding recovery in non-COVID patient activity.  However, during the third and fourth quarters of 2021, and continuing into the early part of the first quarter of 2022, our facilities generally experienced an increase in COVID-19 patients resulting from the Delta and, more recently, the highly transmissible Omicron variants. COVID-19 related patient volumes at our facilities were generally declining during the latter part of the first quarter of 2022.  

The nationwide shortage of nurses and other clinical staff and support personnel has been a significant operating issue facing us and other healthcare providers. Like others in the healthcare industry, we continue to experience a shortage of nurses and other clinical staff and support personnel at our acute care and behavioral health care hospitals in many geographic areas. In some areas, the labor scarcity is putting a strain on our resources and staff, which has required us to utilize higher‑cost temporary labor and pay premiums above standard compensation for essential workers. This staffing shortage has required us to hire expensive temporary personnel and/or enhance wages and benefits to recruit and retain nurses and other clinical staff and support personnel. At certain facilities, particularly within our behavioral health care segment, we have been unable to fill all vacant positions and, consequently, have been required to limit patient volumes. These factors had a material unfavorable impact on our results of operations during the first quarter of 2022. The length and extent of the disruptions caused by the COVID‑19 pandemic are currently unknown; however, we expect such disruptions to continue during 2022.

Since the future volumes and severity of COVID-19 patients remain highly uncertain and subject to change, including potential increases in future COVID-19 patient volumes caused by new variants of the virus, as well as related pressures on staffing and wage rates, we are not able to fully quantify the impact that these factors will have on our future financial results.  However, developments related to the COVID-19 pandemic could continue to materially affect our financial performance during 2022.  

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

For the three months ended March 31, 2022, our net cash provided by operating activities was $445 million as compared to $72 million during the first quarter of 2021.  The $374 million net increase in our net cash provided by operating activities during the first quarter of 2022, as compared to the first quarter of 2021, was due to: (i) a favorable change of $510 million resulting primarily from the early return of Medicare accelerated payments which were received during 2020 and repaid during the first quarter of 2021, partially offset by; (ii) an unfavorable change of $72 million in accounts receivable; (iii) an unfavorable change of $44 million resulting from a decrease in net income plus depreciation and amortization expense, stock-based compensation expense and gain/loss on sales of assets and businesses, and; (iv) $20 million of other combined net unfavorable changes.    

Liquidity:

 


 

As of March 31, 2022, we had $736 million of aggregate available borrowing capacity pursuant to our $1.2 billion revolving credit facility, net of outstanding borrowings and letters of credit.  

Stock Repurchase Program:

As previously announced, on February 24, 2022, our Board of Directors authorized a $1.4 billion increase to our stock repurchase program. Pursuant to this program, 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. 

During the first quarter of 2022, we have repurchased approximately 2.65 million shares at an aggregate cost of approximately $350.2 million (approximately $132 per share).  As of March 31, 2022, we had an aggregate available repurchase authorization of approximately $1.41 billion.  

2022 Operating Results Forecast:

On February 24, 2022, we provided our 2022 operating results forecast as part of our 2021 fourth quarter and full year financial results’ announcement.  As disclosed at that time, since the future volumes and severity of COVID-19 patients remain highly uncertain and subject to change, as well as pressures on staffing and wage rates, we are not able to fully quantify the impact that these factors will have on our future financial results.  

Our operating results during the first quarter of 2022 reflect continued uncertainties related to the COVID-19 pandemic as well cost escalations related to the nationwide shortage of nurses and other clinical staff and support personnel.  As a result, our labor costs were higher than anticipated, and patient volumes at our behavioral health care facilities were lower than anticipated, which unfavorably impacted our operating results during the first quarter of 2022.

At this time, we are not changing our previously released 2022 operating results forecast.  However, given the continued uncertainties related to the COVID-19 pandemic, as well as the healthcare staffing shortage and its unfavorable impact on our labor costs and behavioral health patient volumes, we may make reductions to our 2022 full year operating results forecast at a future date if the unfavorable operating trends experienced during the first quarter of 2022 do not improve.      

Conference call information:        

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 26, 2022. The dial-in number is 1-877-648-7971.  

A live broadcast of the conference call will be available on our website at www.uhs.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 during 2021 were approximately $12.6 billion. In 2022, UHS was again recognized as one of the World’s Most Admired Companies by Fortune; and in 2021 the Company ranked #270 on the Fortune 500 and #307 on Forbes’ list of America’s Largest Public Companies.

Our operating philosophy is as effective today as it was upon the Company’s founding in 1979, 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 over 89,000 employees and through its subsidiaries operates 28 acute care hospitals (including the newly constructed, 170-bed Northern Nevada Sierra Medical Center located in Reno, Nevada, which opened in early April, 2022), 336 behavioral health facilities, 40

 


 

outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 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 visit www.uhs.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, 2021), 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 potential impact on future COVID-19 patient volumes resulting from new variants of the virus, 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; potential increases to expenses and other costs related to staffing, supply chain, construction and medical equipment costs and other expenditures resulting from inflation; 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 developments related to the COVID-19 pandemic could continue to materially affect our financial performance during 2022.

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, changes in the market value of shares of certain equity securities 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 Report on Form 10-K for the year ended December 31, 2021. 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,

 

 

 

2022

 

 

2021

 

Net revenues

 

$

3,292,956

 

 

 

3,012,987

 

 

 

 

 

 

 

 

 

 

Operating charges:

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

1,692,270

 

 

 

1,497,773

 

Other operating expenses

 

 

820,934

 

 

 

709,708

 

Supplies expense

 

 

371,073

 

 

 

347,110

 

Depreciation and amortization

 

 

143,784

 

 

 

131,403

 

Lease and rental expense

 

 

32,038

 

 

 

31,324

 

 

 

 

3,060,099

 

 

 

2,717,318

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

232,857

 

 

 

295,669

 

Interest expense, net

 

 

21,673

 

 

 

21,957

 

Other (income) expense, net

 

 

11,201

 

 

 

835

 

Income before income taxes

 

 

199,983

 

 

 

272,877

 

Provision for income taxes

 

 

48,962

 

 

 

63,807

 

Net income

 

 

151,021

 

 

 

209,070

 

Less:  Net income (loss) attributable to noncontrolling interests ("NCI")

 

 

(2,892

)

 

 

(21

)

Net income attributable to UHS

 

$

153,913

 

 

$

209,091

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS (a)

 

$

2.05

 

 

$

2.46

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS (a)

 

$

2.02

 

 

$

2.43

 

 


 


 

 

Universal Health Services, Inc.

 

Footnotes to Consolidated Statements of Income

 

(in thousands, except per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2022

 

 

2021

 

(a) Earnings per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted:

 

 

 

 

 

 

 

 

Net income attributable to UHS

 

$

153,913

 

 

$

209,091

 

Less: Net income attributable to unvested restricted share grants

 

 

(249

)

 

 

(552

)

Net income attributable to UHS - basic and diluted

 

$

153,664

 

 

$

208,539

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares - basic

 

 

75,030

 

 

 

84,782

 

 

 

 

 

 

 

 

 

 

Basic earnings per share attributable to UHS:

 

$

2.05

 

 

$

2.46

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

75,030

 

 

 

84,782

 

Add: Other share equivalents

 

 

1,011

 

 

 

1,014

 

Weighted average number of common shares and equiv. - diluted

 

 

76,041

 

 

 

85,796

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to UHS:

 

$

2.02

 

 

$

2.43

 

 

 


 

 

Universal Health Services, Inc.

 

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

 

For the Three Months ended March 31, 2022 and 2021

 

(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, 2022

 

 

revenues

 

 

March 31, 2021

 

 

revenues

 

Net income attributable to UHS

$

153,913

 

 

 

 

 

 

$

209,091

 

 

 

 

 

   Depreciation and amortization

 

143,784

 

 

 

 

 

 

 

131,403

 

 

 

 

 

   Interest expense, net

 

21,673

 

 

 

 

 

 

 

21,957

 

 

 

 

 

   Provision for income taxes

 

48,962

 

 

 

 

 

 

 

63,807

 

 

 

 

 

EBITDA net of NCI

$

368,332

 

 

 

11.2

%

 

$

426,258

 

 

 

14.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

11,201

 

 

 

 

 

 

 

835

 

 

 

 

 

Adjusted EBITDA net of NCI

$

379,533

 

 

 

11.5

%

 

$

427,093

 

 

 

14.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

3,292,956

 

 

 

 

 

 

$

3,012,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Adjusted Net Income Attributable to UHS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

March 31, 2022

 

 

March 31, 2021

 

 

 

 

 

 

Per

 

 

 

 

 

 

Per

 

 

Amount

 

 

Diluted Share

 

 

Amount

 

 

Diluted Share

 

Net income attributable to UHS

$

153,913

 

 

$

2.02

 

 

$

209,091

 

 

$

2.43

 

Plus/minus after-tax adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on equity securities

 

9,537

 

 

 

0.13

 

 

 

2,137

 

 

 

0.02

 

Impact of ASU 2016-09

 

-

 

 

 

-

 

 

 

(1,079

)

 

 

(0.01

)

Subtotal adjustments

 

9,537

 

 

 

0.13

 

 

 

1,058

 

 

 

0.01

 

Adjusted net income attributable to UHS

$

163,450

 

 

$

2.15

 

 

$

210,149

 

 

$

2.44

 

 

 

 

 

 

 

 

 


 

 

Universal Health Services, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three months

 

 

 

ended March 31,

 

 

 

2022

 

 

2021

 

Net income

 

$

151,021

 

 

$

209,070

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

(18,470

)

 

 

(10,346

)

Other comprehensive income (loss)  before tax

 

 

(18,470

)

 

 

(10,346

)

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

 

 

(944

)

 

 

(1,466

)

Total other comprehensive income (loss), net of tax

 

 

(17,526

)

 

 

(8,880

)

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

133,495

 

 

 

200,190

 

Less: Comprehensive income (loss) attributable to noncontrolling interests

 

 

(2,892

)

 

 

(21

)

Comprehensive income attributable to UHS

 

$

136,387

 

 

$

200,211

 

 

 


 

 

Universal Health Services, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

105,999

 

 

$

115,301

 

Accounts receivable, net

 

 

1,754,877

 

 

 

1,746,635

 

Supplies

 

 

208,302

 

 

 

206,839

 

Other current assets

 

 

232,724

 

 

 

194,781

 

Total current assets

 

 

2,301,902

 

 

 

2,263,556

 

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

10,929,292

 

 

 

10,770,702

 

Less: accumulated depreciation

 

 

(5,010,825

)

 

 

(4,896,427

)

 

 

 

5,918,467

 

 

 

5,874,275

 

Other assets:

 

 

 

 

 

 

 

 

Goodwill

 

 

3,949,788

 

 

 

3,962,624

 

Deferred income taxes

 

 

47,549

 

 

 

45,707

 

Right of use assets-operating leases

 

 

368,921

 

 

 

367,477

 

Deferred charges

 

 

6,310

 

 

 

6,525

 

Other

 

 

551,509

 

 

 

573,379

 

Total Assets

 

$

13,144,446

 

 

$

13,093,543

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

48,486

 

 

$

48,409

 

Accounts payable and other liabilities

 

 

1,976,389

 

 

 

1,860,496

 

Operating lease liabilities

 

 

65,607

 

 

 

64,484

 

Federal and state taxes

 

 

55,734

 

 

 

10,720

 

Total current liabilities

 

 

2,146,216

 

 

 

1,984,109

 

 

 

 

 

 

 

 

 

 

Other noncurrent liabilities

 

 

475,006

 

 

 

464,759

 

Operating lease liabilities noncurrent

 

 

305,643

 

 

 

304,624

 

Long-term debt

 

 

4,250,689

 

 

 

4,141,879

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

4,314

 

 

 

5,119

 

 

 

 

 

 

 

 

 

 

UHS common stockholders' equity

 

 

5,867,872

 

 

 

6,089,664

 

Noncontrolling interest

 

 

94,706

 

 

 

103,389

 

Total equity

 

 

5,962,578

 

 

 

6,193,053

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Equity

 

$

13,144,446

 

 

$

13,093,543

 

 

 


 

 

Universal Health Services, Inc.

 

Consolidated Statements of Cash Flows

 

(in thousands)

 

(unaudited)

 

 

Three months

 

 

ended March 31,

 

 

2022

 

 

2021

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

Net income

$

151,021

 

 

$

209,070

 

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

 

 

 

 

 

 

 

Depreciation & amortization

 

143,784

 

 

 

131,403

 

Loss on sale of assets and businesses

 

1,084

 

 

 

0

 

Stock-based compensation expense

 

19,055

 

 

 

18,022

 

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

 

 

 

 

 

 

 

Accounts receivable

 

(15,073

)

 

 

56,851

 

Accrued interest

 

180

 

 

 

10,133

 

Accrued and deferred income taxes

 

47,548

 

 

 

53,769

 

Other working capital accounts

 

63,308

 

 

 

82,663

 

Medicare accelerated payments and deferred CARES Act and other grants

 

250

 

 

 

(509,448

)

Other assets and deferred charges

 

26,042

 

 

 

(17

)

Other

 

(4,020

)

 

 

2,623

 

Accrued insurance expense, net of commercial premiums paid

 

41,685

 

 

 

35,467

 

Payments made in settlement of self-insurance claims

 

(29,431

)

 

 

(18,741

)

Net cash provided by operating activities

 

445,433

 

 

 

71,795

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Property and equipment additions

 

(200,002

)

 

 

(247,459

)

Proceeds received from sales of assets and businesses

 

10,232

 

 

 

0

 

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

 

20,710

 

 

 

(14,264

)

Decrease in capital reserves of commercial insurance subsidiary

 

100

 

 

 

100

 

Costs incurred for purchase of information technology applications, net of refunds

 

0

 

 

 

(575

)

Investment in, and advances to, joint venture and other

 

0

 

 

 

(129

)

Net cash used in investing activities

 

(168,960

)

 

 

(262,327

)

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Repayments of long-term debt

 

(11,966

)

 

 

(251,830

)

Additional borrowings

 

117,400

 

 

 

0

 

Repurchase of common shares

 

(365,505

)

 

 

(7,464

)

Dividends paid

 

(14,875

)

 

 

(17,018

)

Issuance of common stock

 

3,503

 

 

 

3,357

 

Profit distributions to noncontrolling interests

 

(5,289

)

 

 

(4,525

)

Purchase (sale) of ownership interests by (from) minority member

 

(1,307

)

 

 

7,603

 

Net cash used in financing activities

 

(278,039

)

 

 

(269,877

)

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

 

(2,232

)

 

 

423

 

Decrease in cash, cash equivalents and restricted cash

 

(3,798

)

 

 

(459,986

)

Cash, cash equivalents and restricted cash, beginning of period

 

178,934

 

 

 

1,279,154

 

Cash, cash equivalents and restricted cash, end of period

$

175,136

 

 

$

819,168

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

 

 

Interest paid

$

20,388

 

 

$

11,421

 

Income taxes paid, net of refunds

$

4,423

 

 

$

8,654

 

Noncash purchases of property and equipment

$

90,730

 

 

$

60,124

 

 

 


 

 

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

 

 

 

 

 

 

 

% Change

Same Facility:

 

 

 

 

 

3 months ended

 

 

 

 

 

 

3/31/2022

Acute Care Services

 

 

 

Revenues

 

 

9.7%

Adjusted Admissions

 

 

5.7%

Adjusted Patient Days

 

 

5.5%

Revenue Per Adjusted Admission

 

 

3.1%

Revenue Per Adjusted Patient Day

 

 

3.3%

 

 

 

 

 

 

 

Behavioral Health Care Services

 

 

 

Revenues

 

 

3.8%

Adjusted Admissions

 

 

-1.9%

Adjusted Patient Days

 

 

-1.3%

Revenue Per Adjusted Admission

 

 

5.8%

Revenue Per Adjusted Patient Day

 

 

5.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UHS Consolidated

 

 

 

Three months ended

 

 

 

 

3/31/2022

 

3/31/2021

Revenues

 

 

 

$3,292,956

 

$3,012,987

EBITDA net of NCI

 

 

 

$368,332

 

$426,258

EBITDA Margin net of NCI

 

 

 

11.2%

 

14.1%

Adjusted EBITDA net of NCI

 

 

 

$379,533

 

$427,093

Adjusted EBITDA Margin net of NCI

 

 

 

11.5%

 

14.2%

 

 

 

 

 

 

 

Cash Flow From Operations

 

 

 

$445,433

 

$71,795

Days Sales Outstanding

 

 

 

48

 

50

Capital Expenditures

 

 

 

$200,002

 

$247,459

 

 

 

 

 

 

 

Debt

 

 

 

$4,299,175

 

$3,613,103

UHS' Shareholders Equity

 

 

 

$5,867,872

 

$6,513,862

Debt / Total Capitalization

 

 

 

42.3%

 

35.7%

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

 

 

 

2.32

 

1.87

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

 

 

 

2.32

 

1.87

Debt / Cash From Operations (1) (2)

 

 

 

3.42

 

1.87

 

 

 

 

 

 

 

(1) Latest 4 quarters

 

 

 

(2) For the three months ended March 31, 2021, Debt, net of approximately $749 million of short-term cash

investments, resulted in ratios of 1.48 for each of Net Debt/EBITDA net of NCI, Net Debt/Adjusted EBITDA

net of NCI, and Net Debt/Cash from Operations.


 


 

 

Universal Health Services, Inc.

Acute Care Hospital Services

For the Three Months ended

March 31, 2022 and 2021

(in thousands)

 

Same Facility Basis - Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2022

 

 

March 31, 2021

 

 

 

Amount

 

 

% of Net

Revenues

 

 

Amount

 

 

% of Net

Revenues

 

Net revenues

 

$

1,834,779

 

 

 

100.0

%

 

$

1,671,836

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

820,210

 

 

 

44.7

%

 

 

706,811

 

 

 

42.3

%

Other operating expenses

 

 

437,477

 

 

 

23.8

%

 

 

393,207

 

 

 

23.5

%

Supplies expense

 

 

313,137

 

 

 

17.1

%

 

 

296,478

 

 

 

17.7

%

Depreciation and amortization

 

 

92,939

 

 

 

5.1

%

 

 

81,184

 

 

 

4.9

%

Lease and rental expense

 

 

17,715

 

 

 

1.0

%

 

 

20,112

 

 

 

1.2

%

Subtotal-operating expenses

 

 

1,681,478

 

 

 

91.6

%

 

 

1,497,792

 

 

 

89.6

%

Income from operations

 

 

153,301

 

 

 

8.4

%

 

 

174,044

 

 

 

10.4

%

Interest expense, net

 

 

638

 

 

 

0.0

%

 

 

246

 

 

 

0.0

%

Other (income) expense, net

 

 

201

 

 

 

0.0

%

 

 

-

 

 

 

-

 

Income before income taxes

 

$

152,462

 

 

 

8.3

%

 

$

173,798

 

 

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Acute Care Hospital Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

March 31, 2022

 

 

March 31, 2021

 

 

 

Amount

 

 

% of Net

Revenues

 

 

Amount

 

 

% of Net

Revenues

 

Net revenues

 

$

1,912,316

 

 

 

100.0

%

 

$

1,694,542

 

 

 

100.0

%

Operating charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, wages and benefits

 

 

843,906

 

 

 

44.1

%

 

 

707,218

 

 

 

41.7

%

Other operating expenses

 

 

482,078

 

 

 

25.2

%

 

 

416,007

 

 

 

24.5

%

Supplies expense

 

 

321,427

 

 

 

16.8

%

 

 

296,479

 

 

 

17.5

%

Depreciation and amortization

 

 

94,534

 

 

 

4.9

%

 

 

81,362

 

 

 

4.8

%

Lease and rental expense

 

 

20,852

 

 

 

1.1

%

 

 

20,112

 

 

 

1.2

%

Subtotal-operating expenses

 

 

1,762,797

 

 

 

92.2

%

 

 

1,521,178

 

 

 

89.8

%

Income from operations

 

 

149,519

 

 

 

7.8

%

 

 

173,364

 

 

 

10.2

%

Interest expense, net

 

 

638

 

 

 

0.0

%

 

 

246

 

 

 

0.0

%

Other (income) expense, net

 

 

201

 

 

 

0.0

%