Universal Health Services, Inc. Reports Significant Increases in 2009 Fourth Quarter and Full Year Earnings Per Diluted Share
Consolidated Results of Operations, As Reported - Three-month periods ended December 31, 2009 and 2008
KING OF PRUSSIA, Pa., Feb. 25 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $60.9 million, or $.62 per diluted share, during the fourth quarter of 2009 as compared to $46.5 million, or $.46 per diluted share, during the comparable prior year quarter. Net revenues increased 4% to $1.29 billion during the fourth quarter of 2009 as compared to $1.24 billion during the fourth quarter of 2008.
Consolidated Results of Operations, As Reported – Years ended December 31, 2009 and 2008:
Reported net income attributable to UHS was $260.4 million, or $2.64 per diluted share, during the year ended December 31, 2009 as compared to $199.4 million, or $1.96 per diluted share, during 2008. Net revenues increased 4% to $5.20 billion during 2009 as compared to $5.02 billion during 2008.
Consolidated Results of Operations, As Adjusted – Three-month periods ended December 31, 2009 and 2008:
After adjusting the reported results for the three-month periods ended December 31, 2009 and 2008 to neutralize the net favorable impact of the items mentioned below, and as reflected on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), our adjusted net income attributable to UHS was $56.5 million, or an increase of 33% to $.57 per diluted share, during the fourth quarter of 2009 as compared to $43.7 million, or $.43 per diluted share, during the fourth quarter of 2008. Included in the reported and adjusted net income attributable to UHS during the fourth quarter of 2009 was $3.4 million, or $.03 per diluted share, recorded in connection with the completion of a hospital construction management contract.
As indicated on the attached Supplemental Schedule, included in our reported net income attributable to UHS during the three-month period ended December 31, 2009, was a favorable impact of $4.4 million, or $.05 per diluted share, resulting from a reduction to our workers' compensation self-insurance reserves relating primarily to years prior to 2009 based upon a reserve analysis.
Included in our reported net income attributable to UHS during the three-month period ended December 31, 2008 was a combined net favorable impact of $2.8 million, or $.03 per diluted share, resulting from: (i) a charge recorded in connection with the government's investigation of our South Texas Health System affiliates (which was settled during the fourth quarter of 2009); (ii) a reduction to our professional and general liability self-insured claims expense due to partial liquidation proceeds received from a bankrupt commercial insurer, and; (iii) the after-tax income from discontinued operations consisting primarily of a gain recorded on divestiture of an acute care hospital sold during the fourth quarter of 2008.
Consolidated Results of Operations, As Adjusted – Years ended December 31, 2009 and 2008:
After adjusting the reported results for the years ended December 31, 2009 and 2008 to neutralize the net favorable impact of the items mentioned below, and as reflected on the attached Supplemental Schedule, our adjusted net income attributable to UHS was $246.2 million, or an increase of 28% to $2.49 per diluted share, during 2009 as compared to $197.3 million, or $1.94 per diluted share, during 2008.
As indicated on the attached Supplemental Schedule, included in our reported net income attributable to UHS during the year ended December 31, 2009, was a combined net favorable impact of $14.2 million, or $.15 per diluted share, resulting from: (i) a favorable adjustment resulting from a reduction to our workers' compensation self-insurance reserves relating primarily to years prior to 2009 based upon a reserve analysis; (ii) a favorable adjustment resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2009 based upon a reserve analysis, partially offset by; (iii) an unfavorable discrete tax item recorded in connection with the settlement payment made to the government during the fourth quarter of 2009 in connection with their investigation of our South Texas Health System affiliates.
Included in our reported net income attributable to UHS during the year ended December 31, 2008 was a combined net favorable impact of $2.0 million, or $.02 per diluted share, resulting from: (i) a charge recorded in connection with the government's investigation of our South Texas Health System affiliates; (ii) a reduction to our professional and general liability self-insured claims expense due to partial liquidation proceeds received from a bankrupt commercial insurer; (iii) gains recorded on divestiture of certain real property and other investment, and; (iv) the after-tax income from discontinued operations consisting primarily of a gain recorded on divestiture of an acute care hospital sold during the fourth quarter of 2008.
"Despite the very difficult operating environment in 2009, we are very proud of the manner in which our operators effectively managed the business and increased margins in both our business segments", said Alan B. Miller, Chief Executive Officer. "Although we're pleased with our 2009 accomplishments, we know that 2010 will present us with continued economic challenges and we remain committed to the same level of high quality performance and results."
Acute Care Services - Three-month periods ended December 31, 2009 and 2008:
At our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 3.1% while adjusted patient days increased 1.0% during the fourth quarter of 2009, as compared to the fourth quarter of 2008. Net revenues at these facilities increased 5.6% during the fourth quarter of 2009 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 2.5% while net revenue per adjusted patient day increased 4.6% during the fourth quarter of 2009 as compared to the comparable quarter of the prior year. On a same facility basis, the operating margin (net revenues less salaries, wages and benefits, other operating expenses, supplies expense and provision for doubtful accounts) at our acute care hospitals decreased to 13.4% during the fourth quarter of 2009 as compared to 14.0% during the fourth quarter of 2008, due to an increase in the provision for doubtful accounts. The provision for doubtful accounts at these hospitals amounted to 12.7% of net revenues during the fourth quarter of 2009 as compared to 12.2% during the fourth quarter of 2008.
We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $162 million and $159 million during the three-month periods ended December 31, 2009 and 2008, respectively.
Acute Care Services – Years ended December 31, 2009 and 2008:
During the year ended December 31, 2009, on a same facility basis, adjusted admissions to our acute care facilities increased 2.2% while adjusted patient days increased 0.1%, as compared to 2008. Net revenues at our acute care facilities increased 3.6% during 2009 as compared to 2008. At these facilities, net revenue per adjusted admission increased 1.4% while net revenue per adjusted patient day increased 3.5% during 2009 as compared to 2008. On a same facility basis, the operating margin at our acute care hospitals increased to 15.2% during 2009 as compared to 14.2% during 2008.
Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $671 million and $609 million during 2009 and 2008, respectively.
Behavioral Health Care Services - Three-month periods ended December 31, 2009 and 2008:
At our behavioral health care facilities, on a same facility basis, adjusted admissions increased 4.5% and adjusted patient days increased 3.9% during the fourth quarter of 2009 as compared to the fourth quarter of 2008. Net revenues at these facilities increased 5.1% during the fourth quarter of 2009 as compared to the comparable quarter in the prior year. At these facilities, net revenue per adjusted admission increased 0.6% while net revenue per adjusted patient day increased 1.2% during the fourth quarter of 2009 over the comparable prior year quarter. The operating margin at our behavioral health care facilities owned during both periods increased to 25.1% during the fourth quarter of 2009 as compared to 22.7% during the fourth quarter of 2008.
Behavioral Health Care Services – Years ended December 31, 2009 and 2008:
During the year ended December 31, 2009, on a same facility basis, adjusted admissions to our behavioral health care facilities increased 1.9% while adjusted patient days increased 0.9%, as compared to 2008. Net revenues at our behavioral health care facilities increased 3.9% during 2009 as compared to 2008. At these facilities, net revenue per adjusted admission increased 2.0% while net revenue per adjusted patient day increased 3.0% during 2009 as compared to 2008. On a same facility basis, the operating margin at our behavioral health facilities increased to 25.4% during 2009 as compared to 23.8% during 2008.
2010 Full Year Guidance:
Based upon the operating trends and financial results experienced during 2009, and subject to certain assumptions, provisions and adjustments, including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures, our estimated range of earnings per diluted share attributable to UHS for the year ended December 31, 2010 is $2.45 to $2.65 on projected net revenues of $5.55 billion.
This guidance range includes an aggregate reduction to our 2010 net income attributable to UHS, as compared to 2009, of $28 million, or $.18 per diluted share, due to: (i) expected reimbursement reductions pursuant to Texas Medicaid supplemental payments; (ii) expected reimbursement reductions pursuant to the Texas disproportionate share hospital fund payments; (iii) expected Texas Medicaid reimbursement reductions related to our hospitals in South Texas, and; (iv) no projected income in 2010 from our hospital construction management business.
This guidance range also excludes the impact of items, if applicable, that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits and other amounts that may be reflected in our 2010 financial statements that relate to prior periods.
Two-For-One Stock Split:
During the fourth quarter of 2009, we declared and paid a two-for-one stock split in the form of a 100% stock dividend which was paid on December 15, 2009 to shareholders of record as of December 1, 2009. All classes of common stock participated on a pro rata basis and all references to share quantities and earnings per share for all periods presented herein have been adjusted to reflect the two-for-one stock split.
Conference Call Information:
We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on February 26, 2010. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on February 26, 2010 and will continue through midnight on March 11, 2010. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 54426914. This call will also be available live over the internet at our web site at www.uhsinc.com. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents at www.streetevents.com.
General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:
Universal Health Services, Inc. ("UHS") is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico. 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, 2009), may cause the results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
We believe that operating income, operating margin, adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share and earnings before interest, taxes, depreciation and amortization ("EBITDA"), which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect in each year of items that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income, determined in accordance with GAAP, as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2009. 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)
Three months Twelve months
ended December 31, ended December 31,
------------------ ------------------
2009 2008 2009 2008
---- ---- ---- ----
Net revenues $1,291,211 $1,237,402 $5,202,379 $5,022,417
Operating charges:
Salaries, wages and
benefits 562,931 532,667 2,204,422 2,133,181
Other operating expenses 235,016 267,021 994,923 1,044,278
Supplies expense 177,219 170,231 699,249 694,477
Provision for doubtful
accounts 127,869 111,299 508,603 476,745
Depreciation and
amortization 51,279 51,091 204,703 193,635
Lease and rental expense 18,035 16,861 69,947 69,882
------ ------ ------ ------
1,172,349 1,149,170 4,681,847 4,612,198
--------- --------- --------- ---------
Income from operations 118,862 88,232 520,532 410,219
Interest expense, net 10,513 13,060 45,810 53,207
------ ------ ------ ------
Income from continuing
operations before income
taxes 108,349 75,172 474,722 357,012
Provision for income taxes 39,167 28,026 170,475 123,378
------ ------ ------- -------
Income from continuing
operations 69,182 47,146 304,247 233,634
Income from discontinued
operations, net of
income tax expense (a) - 6,002 - 6,436
-- ----- -- -----
Net income 69,182 53,148 304,247 240,070
Less: Net income attributable
to noncontrolling interests 8,317 6,671 43,874 40,693
------- ------- -------- --------
Net income attributable to
UHS $60,865 $46,477 $260,373 $199,377
======= ======= ======== ========
Basic earnings per share
attributable to UHS (b)
From continuing operations $0.62 $0.40 $2.65 $1.90
From discontinued operations - 0.06 - 0.06
-- ---- -- ----
Total basic earnings per
share $0.62 $0.46 $2.65 $1.96
===== ===== ===== =====
Diluted earnings per share
attributable to UHS (b)
From continuing operations $0.62 $0.40 $2.64 $1.90
From discontinued operations - 0.06 - 0.06
-- ---- -- ----
Total diluted earnings per
share $0.62 $0.46 $2.64 $1.96
===== ===== ===== =====
Universal Health Services, Inc.
-------------------------------
Footnotes to Consolidated Statements of Income
----------------------------------------------
(in thousands, except per share amounts)
Three months Twelve months
ended December 31, ended December 31,
------------------ ------------------
2009 2008 2009 2008
---- ---- ---- ----
(a) Calculation of income from
discontinued operations, net of
income tax:
--------------------------------
Loss from discontinued
operations, pre-tax - ($3,702) - ($2,996)
Gain on divestiture - 13,413 - 13,413
-- ------ -- ------
Income from discontinued
operations, pre-tax - 9,711 - 10,417
Income tax expense - (3,709) - (3,981)
-- ------ -- ------
Income from discontinued
operations, net of taxes - $6,002 - $6,436
== ====== == ======
(b) Earnings per share calculation:
-----------------------------------
Basic and diluted:
------------------
Income from continuing
operations $69,182 $47,146 $304,247 $233,634
Less: Net income attributable
to noncontrolling
interest (8,317) (6,671) (43,874) (40,693)
Less: Net income attributable
to unvested restricted
share grants (234) (143) (1,146) (719)
---- ---- ------ ----
Income from continuing
operations attributable to
UHS - basic and diluted 60,631 40,332 259,227 192,222
Income from discontinued
operations, net of taxes - 6,002 - 6,436
-- ----- -- -----
Net income attributable to UHS -
basic and diluted $60,631 $46,334 $259,227 $198,658
======= ======= ======== ========
Weighted average number of
common shares - basic 97,290 100,016 97,794 101,222
------ ------- ------ -------
Basic earnings per share
attributable to UHS:
From continuing operations $0.62 $0.40 $2.65 $1.90
From discontinued
operations - 0.06 - 0.06
-- ---- -- ----
Total basic earnings per
share $0.62 $0.46 $2.65 $1.96
===== ===== ===== =====
Weighted average number of
common shares 97,290 100,016 97,794 101,222
Add: Other share equivalents 790 256 481 196
--- --- --- ---
Weighted average number of
common shares and equiv. -
diluted 98,080 100,272 98,275 101,418
------ ------- ------ -------
Diluted earnings per share
attributable to UHS:
From continuing operations $0.62 $0.40 $2.64 $1.90
From discontinued
operations - 0.06 - 0.06
-- ---- -- ----
Total diluted earnings
per share $0.62 $0.46 $2.64 $1.96
===== ===== ===== =====
Universal Health Services, Inc.
-------------------------------
Schedule of Non-GAAP Supplemental Consolidated Statements of Income
Information ("Supplemental Schedule")
--------------------------------------------------------------------
For the three months ended December 31, 2009 and 2008
-----------------------------------------------------
(in thousands, except per share amounts)
Calculation of Adjusted Net Income Attributable to UHS
------------------------------------------------------
Three months ended Three months ended
December 31, 2009 December 31, 2008
----------------- -----------------
Per Per
Amount Diluted Share Amount Diluted Share
------ ------------- ------ -------------
Calculation of Adjusted
Net Income Attributable
to UHS (excluding
discontinued operations)
------------------------
Net income
attributable to UHS $60,865 $0.62 $46,477 $0.46
Less: Income from
discontinued
operations, net of
income taxes - - (6,002) (0.06)
Adjustments to
neutralize impact of:
Reduction to our
workers' compensation
self-insurance
reserves relating
primarily to years
prior to 2009, net
of income taxes (4,350) (0.05) - -
South Texas Health
System affiliates
reserve, net of
income taxes - - 9,153 0.09
Partial liquidation
proceeds from a
bankrupt commercial
insurer, net of
income taxes - - (5,968) (0.06)
-- -- ------ -----
Subtotal - after-tax
adjustments (4,350) (0.05) (2,817) (0.03)
------ ----- ------ -----
Adjusted net income
attributable to UHS $56,515 $0.57 $43,660 $0.43
======= ===== ======= =====
Calculation of "EBITDA"
-----------------------
Three months ended Three months ended
December 31, 2009 December 31, 2008
----------------- -----------------
Calculation of
"EBITDA"
--------------
Net revenues $1,291,211 100.0% $1,237,402 100.0%
Operating charges:
Salaries, wages
and benefits 562,931 43.6% 532,667 43.0%
Other operating
expenses 235,016 18.2% 267,021 21.6%
Supplies expense 177,219 13.7% 170,231 13.8%
Provision for
doubtful accounts 127,869 9.9% 111,299 9.0%
------- --- ------- ---
1,103,035 85.4% 1,081,218 87.4%
--------- ---- --------- ----
Operating income/
margin 188,176 14.6% 156,184 12.6%
Lease and rental
expense 18,035 16,861
Net income
attributable to
noncontrolling
interests 8,317 6,671
----- -----
Earnings before,
depreciation and
amortization, interest
expense, and income
taxes ("EBITDA") $161,824 $132,652
======== ========
Universal Health Services, Inc.
-------------------------------
Schedule of Non-GAAP Supplemental Consolidated Statements of Income
Information ("Supplemental Schedule")
--------------------------------------------------------------------
For the twelve months ended December 31, 2009 and 2008
------------------------------------------------------
(in thousands, except per share amounts)
Calculation of Adjusted Net Income Attributable to UHS
------------------------------------------------------
Twelve months ended Twelve months ended
December 31, 2009 December 31, 2008
----------------- -----------------
Per Per
Amount Diluted Share Amount Diluted Share
------ ------------- ------ -------------
Calculation of Adjusted Net
Income Attributable to UHS
(excluding discontinued
operations)
---------------------------
Net income
attributable to UHS $260,373 $2.64 $199,377 $1.96
Less: Income from
discontinued
operations, net of
income taxes - - (6,436) (0.06)
Adjustments to neutralize
impact of:
Reduction to our
professional and general
liability self-insurance
reserves relating
to years prior to
2009, net of income
taxes (14,168) (0.14) - -
Reduction to our
workers' compensation
self-insurance
reserves relating
primarily to years
prior to 2009, net
of income taxes (4,350) (0.05) - -
Discrete tax item
recorded in connection
with settlement payment
made to government 4,331 0.04 - -
Gain on sale of real
property and other
investment, net
of income taxes - - (4,894) (0.05)
South Texas Health
System affiliates
reserve, net of
income taxes - - 15,255 0.15
Partial liquidation
proceeds from a bankrupt
commercial insurer,
net of income taxes - - (5,968) (0.06)
-- -- ------ -----
Subtotal - after-tax
adjustments (14,187) (0.15) (2,043) (0.02)
------- ----- ------ -----
Adjusted net income
attributable to UHS $246,186 $2.49 $197,334 $1.94
======== ===== ======== =====
Calculation of "EBITDA"
-----------------------
Twelve months ended Twelve months ended
December 31, 2009 December 31, 2008
----------------- -----------------
Calculation of "EBITDA"
-----------------------
Net revenues $5,202,379 100.0% $5,022,417 100.0%
Operating charges:
Salaries, wages
and benefits 2,204,422 42.4% 2,133,181 42.5%
Other operating
expenses 994,923 19.1% 1,044,278 20.8%
Supplies expense 699,249 13.4% 694,477 13.8%
Provision for
doubtful accounts 508,603 9.8% 476,745 9.5%
------- --- ------- ---
4,407,197 84.7% 4,348,681 86.6%
--------- ---- --------- ----
Operating income/
margin 795,182 15.3% 673,736 13.4%
Lease and rental
expense 69,947 69,882
Net income
attributable to
noncontrolling
interests 43,874 40,693
------ ------
Earnings before,
depreciation and
amortization,
interest expense,
and income taxes
("EBITDA") $681,361 $563,161
======== ========
Universal Health Services, Inc.
-------------------------------
Condensed Consolidated Balance Sheets
-------------------------------------
(in thousands, unaudited)
December 31, December 31,
2009 2008
---- ----
Assets
Current assets:
Cash and cash
equivalents $9,180 $5,460
Accounts receivable, net 602,559 625,437
Supplies 84,272 76,043
Other current assets 27,270 26,375
Deferred income taxes 51,336 34,522
Current assets held for sale 21,580 21,580
------ ------
Total current assets 796,197 789,417
------- -------
Property and equipment 3,738,818 3,355,974
Less: accumulated
depreciation (1,423,580) (1,255,682)
---------- ----------
2,315,238 2,100,292
--------- ---------
Other assets:
Goodwill 732,685 732,937
Deferred charges 8,643 10,428
Other 111,700 109,388
------- -------
$3,964,463 $3,742,462
========== ==========
Liabilities and Stockholders'
Equity
Current liabilities:
Current maturities of
long-term debt $2,573 $8,708
Accounts payable and
accrued liabilities 578,617 542,008
Federal and state taxes 1,627 10,409
----- ------
Total current
liabilities 582,817 561,125
------- -------
Other noncurrent liabilities 375,580 407,652
Long-term debt 956,429 990,661
Deferred income taxes 60,091 12,439
UHS common stockholders'
equity 1,751,071 1,543,850
Noncontrolling interest 238,475 226,735
------- -------
Total equity 1,989,546 1,770,585
---------- ----------
$3,964,463 $3,742,462
========== ==========
Universal Health Services, Inc.
-------------------------------
Consolidated Statements of Cash Flows
-------------------------------------
(in thousands)
Twelve months
ended December 31,
------------------
2009 2008
---- ----
Cash Flows from Operating Activities:
Net income $304,247 $240,070
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation & amortization 204,703 195,766
Gains on sales of assets and businesses,
net of losses (1,346) (21,464)
Stock-based compensation expense 13,096 14,125
Provision for settlements - 25,000
Changes in assets & liabilities, net of
effects from acquisitions and dispositions:
Accounts receivable (1,402) 22,445
Construction management and other receivable 29,519 (20,693)
Accrued interest 357 (123)
Accrued and deferred income taxes 14,930 (3,483)
Other working capital accounts (18,828) 3,878
Other assets and deferred charges (1,258) 21,003
Other 755 2,811
Accrued insurance expense, net of commercial
premiums paid 44,314 73,413
Payments made in settlement of self-
insurance claims (55,782) (58,561)
------- -------
Net cash provided by operating
activities 533,305 494,187
------- -------
Cash Flows from Investing Activities:
Property and equipment additions, net of
disposals (379,748) (354,537)
Acquisition of property and businesses (12,499) (23,481)
Proceeds received from sales of assets and
businesses 9,770 82,062
Settlement proceeds received related to
prior year acquisitions, net of expenses - 1,539
Investment in joint-venture - (1,249)
-- ------
Net cash used in investing
activities (382,477) (295,666)
-------- --------
Cash Flows from Financing Activities:
Reduction of long-term debt (66,499) (166,557)
Additional borrowings 26,069 151,129
Financing costs - (975)
Repurchase of common shares (63,288) (149,404)
Dividends paid (16,706) (16,150)
Issuance of common stock 3,290 2,354
Profit distributions to noncontrolling
interests (29,866) (31,087)
Capital contributions from noncontrolling
interests 121 2,333
Purchase of noncontrolling interest in
majority owned business (229) (1,058)
---- ------
Net cash used in financing
activities (147,108) (209,415)
-------- --------
Increase (decrease) in cash and cash
equivalents 3,720 (10,894)
Cash and cash equivalents, beginning of
period 5,460 16,354
----- ------
Cash and cash equivalents, end of period $9,180 $5,460
====== ======
Supplemental Disclosures of Cash Flow
Information:
Interest paid $57,018 $62,285
======= =======
Income taxes paid, net of refunds $155,368 $130,379
======== ========
Universal Health Services, Inc.
Supplemental Statistical Information
(un-audited)
% Change % Change
Quarter Ended 12 months ended
--------------
Same Facility: 12/31/2009 12/31/2009
-------------- ---------- ----------
Acute Care Hospitals
--------------------
Revenues 5.6% 3.6%
Adjusted Admissions 3.1% 2.2%
Adjusted Patient Days 1.0% 0.1%
Revenue Per Adjusted Admission 2.5% 1.4%
Revenue Per Adjusted Patient Day 4.6% 3.5%
Behavioral Health Hospitals
---------------------------
Revenues 5.1% 3.9%
Adjusted Admissions 4.5% 1.9%
Adjusted Patient Days 3.9% 0.9%
Revenue Per Adjusted Admission 0.6% 2.0%
Revenue Per Adjusted Patient Day 1.2% 3.0%
----------------
UHS Consolidated Fourth Quarter Ended Twelve months Ended
---------------- -------------------- -------------------
12/31/2009 12/31/2008 12/31/2009 12/31/2008
---------- ---------- ---------- ----------
Revenues $1,291,211 $1,237,402 $5,202,379 $5,022,417
EBITDA (1) 161,824 132,652 681,361 563,161
EBITDA Margin (1) 12.5% 10.7% 13.1% 11.2%
Cash Flow From
Operations 49,030 79,424 533,305 494,187
Days Sales Outstanding 43 47 42 46
Capital Expenditures 101,093 114,657 379,918 354,537
Debt 959,002 999,369
UHS Common
Stockholders' Equity 1,751,071 1,543,850
Debt / Total
Capitalization 35.4% 39.3%
Debt / EBITDA (2) 1.41 1.77
Debt / Cash From
Operations (2) 1.80 2.02
Acute Care EBITDAR
Margin (3) 14.0% 10.8% 15.9% 13.4%
Behavioral Health
EBITDAR Margin (3) 25.0% 22.7% 25.1% 23.3%
(1) Net of Minority Interest
(2) Latest 4 quarters
(3) Before Corporate overhead allocation, minority interest and prior
year self insurance reserve adjustment booked in 2009
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS FOR THE THREE MONTHS ENDED
DECEMBER 31, 2009
AS REPORTED:
------------
ACUTE (1)
12/31/09 12/31/08 % change
-------- -------- ---------
Hospitals owned and leased 21 21 0.0%
Average licensed beds 5,540 5,450 1.7%
Patient days 289,469 290,196 -0.3%
Average daily census 3,146.4 3,154.3 -0.3%
Occupancy-licensed beds 56.8% 57.9% -1.9%
Admissions 66,018 64,851 1.8%
Length of stay 4.4 4.5 -2.0%
Inpatient revenue $2,471,016 $2,292,917 7.8%
Outpatient revenue 1,018,861 906,669 12.4%
Total patient revenue 3,489,877 3,199,586 9.1%
Other revenue 17,254 16,837 2.5%
Gross hospital revenue 3,507,131 3,216,423 9.0%
Total deductions 2,557,018 2,323,146 10.1%
Net hospital revenue $950,113 $893,277 6.4%
AS REPORTED:
------------
BEHAVIORAL HEALTH
12/31/09 12/31/08 % change
-------- -------- ---------
Hospitals owned and leased 84 81 3.7%
Average licensed beds 8,054 7,742 4.0%
Patient days 530,927 505,028 5.1%
Average daily census 5,770.9 5,489.4 5.1%
Occupancy-licensed beds 71.7% 70.9% 1.1%
Admissions 33,614 31,325 7.3%
Length of stay 15.8 16.1 -2.0%
Inpatient revenue $522,505 $484,524 7.8%
Outpatient revenue 73,255 64,741 13.2%
Total patient revenue 595,760 549,265 8.5%
Other revenue 8,120 8,096 0.3%
Gross hospital revenue 603,880 557,361 8.3%
Total deductions 272,925 247,251 10.4%
Net hospital revenue $330,955 $310,110 6.7%
SAME FACILITY:
--------------
ACUTE (1)
12/31/09 12/31/08 % change
-------- -------- ---------
Hospitals owned and leased 21 21 0.0%
Average licensed beds 5,540 5,450 1.7%
Patient days 289,469 290,196 -0.3%
Average daily census 3,146.4 3,154.3 -0.3%
Occupancy-licensed beds 56.8% 57.9% -1.9%
Admissions 66,018 64,851 1.8%
Length of stay 4.4 4.5 -2.0%
SAME FACILITY:
--------------
BEHAVIORAL HEALTH (2)
12/31/09 12/31/08 % change
-------- -------- ---------
Hospitals owned and leased 81 81 0.0%
Average licensed beds 7,852 7,742 1.4%
Patient days 523,590 505,052 3.7%
Average daily census 5,691.2 5,489.7 3.7%
Occupancy-licensed beds 72.5% 70.9% 2.2%
Admissions 32,646 31,325 4.2%
Length of stay 16.0 16.1 -0.5%
(1) Acute care hospitals located in New Orleans and Central Montgomery
Medical Center are excluded in current and prior years.
(2) Centennial Peaks, Coastal Behavioral, Shenandoah Valley and
Springwoods Behavioral are excluded in both current and prior years.
Central Florida and Summit Ridge Hospital is included from September
1st through year to date. Broad Horizons, Highlander RTC, Midwest
Youth and Vista Group Homes are excluded in both current and prior
years.
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 2009
AS REPORTED:
------------
ACUTE (1)
12/31/09 12/31/08 % change
-------- -------- ---------
Hospitals owned and leased 21 21 0.0%
Average licensed beds 5,484 5,452 0.6%
Patient days 1,166,704 1,182,985 -1.4%
Average daily census 3,196.4 3,232.2 -1.1%
Occupancy-licensed beds 58.3% 59.3% -1.7%
Admissions 265,244 263,536 0.6%
Length of stay 4.4 4.5 -2.0%
Inpatient revenue $9,901,032 $9,292,596 6.5%
Outpatient revenue 4,100,427 3,655,051 12.2%
Total patient revenue 14,001,459 12,947,647 8.1%
Other revenue 70,879 72,578 -2.3%
Gross hospital revenue 14,072,338 13,020,225 8.1%
Total deductions 10,262,666 9,350,721 9.8%
Net hospital revenue $3,809,672 $3,669,504 3.8%
AS REPORTED:
------------
BEHAVIORAL HEALTH
12/31/09 12/31/08 % change
-------- -------- ---------
Hospitals owned and leased 84 81 3.7%
Average licensed beds 7,921 7,658 3.4%
Patient days 2,105,625 2,085,114 1.0%
Average daily census 5,768.8 5,697.0 1.3%
Occupancy-licensed beds 72.8% 74.4% -2.1%
Admissions 136,639 129,553 5.5%
Length of stay 15.4 16.1 -4.3%
Inpatient revenue $2,075,141 $1,951,560 6.3%
Outpatient revenue 282,473 258,022 9.5%
Total patient revenue 2,357,614 2,209,582 6.7%
Other revenue 31,728 34,330 -7.6%
Gross hospital revenue 2,389,342 2,243,912 6.5%
Total deductions 1,074,313 992,796 8.2%
Net hospital revenue $1,315,029 $1,251,116 5.1%
SAME FACILITY:
--------------
ACUTE (1)
12/31/09 12/31/08 % change
-------- -------- ---------
Hospitals owned and leased 21 21 0.0%
Average licensed beds 5,484 5,452 0.6%
Patient days 1,166,613 1,182,985 -1.4%
Average daily census 3,196.2 3,232.2 -1.1%
Occupancy-licensed beds 58.3% 59.3% -1.7%
Admissions 265,244 263,536 0.6%
Length of stay 4.4 4.5 -2.0%
SAME FACILITY:
--------------
BEHAVIORAL HEALTH (2)
12/31/09 12/31/08 % change
-------- -------- ---------
Hospitals owned and leased 81 81 0.0%
Average licensed beds 7,685 7,543 1.9%
Patient days 2,072,945 2,048,941 1.2%
Average daily census 5,679.3 5,598.2 1.4%
Occupancy-licensed beds 73.9% 74.2% -0.4%
Admissions 132,230 129,379 2.2%
Length of stay 15.7 15.8 -1.0%
(1) Acute care hospitals located in New Orleans and Central
Montgomery Medical Center are excluded in current and prior years.
(2) Centennial Peaks, Coastal Behavioral, Shenandoah Valley and
Springwoods Behavioral are excluded in both current and prior years.
Central Florida and Summit Ridge Hospital is included from September
1st through year to date. Broad Horizons, Highlander RTC, Midwest
Youth and Vista Group Homes are excluded in both current and prior
years.
SOURCE Universal Health Services, Inc.
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