KING OF PRUSSIA, Pa., Feb. 28 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. announced today that its reported net income was $34.2 million, or $.63 per diluted share, during the fourth quarter of 2006 as compared to $12.3 million, or $.23 per diluted share, during the comparable prior year quarter. Reported net income was $259.5 million, or $4.56 per diluted share, during the twelve months ended December 31, 2006 as compared to $240.8 million, or $4.00 per diluted share, during 2005.
Reported income from continuing operations was $34.2 million, or $.63 per diluted share, during the fourth quarter of 2006 as compared to $9.0 million, or $.17 per diluted share, during the fourth quarter of 2005. Reported income from continuing operations was $259.6 million, or $4.57 per diluted share, during the twelve-month period ended December 31, 2006 as compared to $109.8 million, or $1.91 per diluted share, during 2005.
As indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), our income from continuing operations and net income, for the three and/or twelve- month periods ended December 31, 2006 and 2005, include various items such as: (i) hurricane related expenses, net of minority interests and income taxes; (ii) hurricane related insurance recoveries, net of minority interests and income taxes; (iii) retroactive effect of supplemental reimbursements earned in certain states and contractual settlements, net of income taxes; (iv) a reserve recorded in connection with a lawsuit; (v) a charge incurred to record the aggregate present value of the future funding of a portion of a gift to The College of William & Mary ("William & Mary Funding") on behalf of our Chairman of the Board of Directors, Chief Executive Officer and President; (vi) favorable income tax adjustment to reduce reserves due to the expiration of statute of limitations in a foreign jurisdiction, and; (vii) gains on divestitures, net of income taxes (included in net income for the three and twelve-month periods ended December 31, 2005).
After adjusting for the items discussed above applicable to each period presented, as indicated on the attached Supplemental Schedules, our adjusted net income during the three-month period ended December 31, 2006 was $32.4 million, or $.60 per diluted share, as compared to $27.2 million, or $.50 per diluted share, during the fourth quarter of 2005. Our adjusted net income during the twelve-month period ended December 31, 2006 was $157.3 million, or $2.79 per diluted share, as compared to $154.8 million, or $2.62 per diluted share, during the comparable prior year twelve-month period.
Our adjusted income from continuing operations during the three-month period ended December 31, 2006 was $32.4 million, or $.60 per diluted share, as compared to $24.8 million, or $.45 per diluted share, during the three- month period ended December 31, 2005. Our adjusted income from continuing operations during the twelve-month period ended December 31, 2006 was $157.5 million, or $2.80 per diluted share, as compared to $151.1 million, or $2.56 per diluted share, during the comparable prior year twelve-month period.
Net revenues increased 10% to $1.07 billion during the fourth quarter of 2006 as compared to $967 million during the fourth quarter of 2005. Net revenues increased 7% to $4.19 billion during the twelve months ended December 31, 2006 as compared to $3.94 billion during the prior year twelve-month period. Impacting our net revenues during 2006 was the loss of revenues generated at our acute care facilities in Louisiana which were damaged and closed since the third quarter of 2005 as a result of Hurricane Katrina. On a combined basis, these facilities generated net revenues of $166 million during the eight months of 2005 prior to closure. Also, on January 1st of this year, we implemented a formal company-wide uninsured discount policy which has had the effect of lowering both net revenues and the provision for doubtful accounts by approximately $15 million and $61 million during the three and twelve-month periods ended December 31, 2006, respectively. The implementation of this uninsured discount policy did not have a significant impact on our 2006 net income.
Our consolidated operating margin, as calculated on the attached Supplemental Schedules, was 12.3% and 12.2% during the three-month periods ended December 31, 2006 and 2005, respectively. Our consolidated operating margin was 13.1% and 13.5% during the twelve-month periods ended December 31, 2006 and 2005, respectively.
At our acute care hospitals owned during both periods ("same facility basis"), inpatient admissions increased 2.4% and patient days increased 5.3% during the fourth quarter of 2006 as compared to the comparable 2005 quarter. The operating margin at our acute care hospitals owned during both periods remained unchanged at 12.1% during each of the fourth quarters of 2006 and 2005. On a same facility basis, inpatient admissions increased 1.7% and patient days increased 3.1% during the twelve-month period ended December 31, 2006 as compared to 2005. The operating margin at these acute care hospitals decreased to 13.4% during the twelve months ended December 31, 2006 as compared to 13.8% during the twelve months ended December 31, 2005. Since our acute care facilities located in Louisiana have been closed since the third quarter of 2005, the inpatient statistics for those facilities have been excluded from 2005.
On a same facility basis, inpatient admissions at our behavioral health facilities increased 3.7% and patient days increased 1.4% during the fourth quarter of 2006 as compared to the comparable 2005 quarter. The operating margin at these behavioral health facilities increased to 23.5% during the fourth quarter of 2006 from 19.7% during the comparable quarter of the prior year. On a same facility basis, inpatient admissions at our behavioral health facilities increased 3.7% and patient days increased 1.7% during the twelve- month period ended December 31, 2006 as compared to 2005. The operating margin at these behavioral health facilities increased to 25.0% during the twelve months ended December 31, 2006 as compared to 22.8% during 2005.
Our provision for doubtful accounts as a percentage of net revenues was 8.3% and 9.0% during the three-month periods ended December 31, 2006 and 2005, respectively, and 8.3% and 9.4% during the twelve-month periods ended December 31, 2006 and 2005, respectively. Exclusive of the impact of the uninsured discount implemented at the beginning of this year, as a percentage of net revenues, the provision for doubtful accounts would have been 9.6% during each of the three and twelve-month periods ended December 31, 2006.
Effective July 1, 2006, the pharmacy services for our acute care facilities were brought in-house from an outsourced vendor and as a result of this change, during the three and twelve-month periods ended December 31, 2006, we experienced an increase in our supplies expense and salaries, wages and benefits expense and a decrease in our other operating expenses. The transition of our pharmacy services did not have a significant impact on our operating margin or net income during 2006.
During the fourth quarter of 2006, we used $80.8 million of cash flow in operating activities while during the fourth quarter of 2005 net cash provided by operating activities was $69.0 million. The $149.8 million unfavorable change resulted primarily from the payment of $168.1 million of income taxes during the fourth quarter of 2006 (as compared to $500,000 during the fourth quarter of 2005), approximately $95.0 million of which, as previously disclosed, was deferred pursuant to an Internal Revenue Service postponement granted to companies that owned businesses in the parishes of Louisiana that were most severely impacted by Hurricane Katrina. Also contributing to the unfavorable change in net cash provided by operating activities during the fourth quarter of 2006, as compared to the comparable quarter of the prior year, was an unfavorable change of $29.7 million in accounts receivable. The unfavorable change in accounts receivable related primarily to revenues earned during the fourth quarter of 2006 in connection with supplemental programs in which our acute care hospitals located in Texas participate. The majority of these revenues are scheduled to be paid to us prior to June 30, 2007.
During the fourth quarter of 2006, we spent $108.1 million on capital expenditures including additional costs related to the construction of a new 170-bed acute care hospital located in Las Vegas, Nevada, which is scheduled to be completed and opened during the fourth quarter of 2007, and a new 171- bed acute care hospital located in Palmdale, California, which is scheduled to be completed and opened during the fourth quarter of 2008. Also during the fourth quarter of 2006, we repurchased 2.34 million shares of our Class B Common Stock for an aggregate repurchase price of $130.0 million.
During 2007, based upon current trends and subject to the provisions set forth below, we estimate that we will achieve earnings per diluted share from continuing operations of approximately $3.00 to $3.05 on projected net revenues of $4.78 billion.
We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on March 1, 2007. 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 March 1, 2007 and will continue through midnight on March 8, 2007. The recording can be accessed by calling 1-800- 642-1687 and entering the conference ID number 7407164.
This call will also be available live over the internet at our web site at http://www.uhsinc.com/. It will also be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at http://www.companyboardroom.com/ or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (http://www.streetevents.com/).
Universal Health Services, Inc. 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 . 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, 2006), may cause 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 income from continuing operations, adjusted income from continuing operations per diluted share, adjusted net income, adjusted net income per diluted share, adjusted operating income and adjusted operating margin, 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 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 lawsuits, hurricane-related expenses and insurance recoveries, the William & Mary Funding, and other amounts 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, 2006. 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,
2006 2005 2006 2005
Net revenues $1,065,881 $967,175 $4,191,300 $3,935,480
Operating charges:
Salaries, wages and
benefits 461,500 415,821 1,797,587 1,625,996
Other operating expenses 228,026 226,127 936,958 921,118
Supplies expense 156,431 120,212 556,702 489,999
Provision for doubtful
accounts 88,940 87,438 349,030 368,058
Depreciation and
amortization 43,334 39,242 163,694 155,478
Lease and rental expense 15,813 15,347 64,060 60,790
Hurricane related
expenses, net (640) 36,133 13,792 165,028
Hurricane insurance
recoveries - - (13,792) (81,709)
993,404 940,320 3,868,031 3,704,758
Income before interest
expense, hurricane insurance
recoveries in excess of
expenses, minority
interests and income taxes 72,477 26,855 323,269 230,722
Interest expense, net 9,196 8,403 32,558 32,933
Hurricane insurance
recoveries in excess of
expenses - - (167,999) -
Minority interests in
earnings of consolidated
entities 8,621 5,786 46,238 25,645
Income before income taxes 54,660 12,666 412,472 172,144
Provision for income taxes 20,458 3,624 152,878 62,301
Income from continuing
operations 34,202 9,042 259,594 109,843
(Loss) income from
discontinued operations,
net of income tax
(benefit)/expense (a) (32) 3,232 (136) 131,002
Net income $34,170 $12,274 $259,458 $240,845
Basic earnings (loss) per
share: (b)
From continuing
operations $0.63 $0.17 $4.76 $1.98
From discontinued
operations - 0.06 - 2.35
Total basic earnings
share $0.63 $0.23 $4.76 $4.33
Diluted earnings (loss) per
share: (b)
From continuing
operations $0.63 $0.17 $4.57 $1.91
From discontinued
operations - 0.06 (0.01) 2.09
Total diluted
earnings per share $0.63 $0.23 $4.56 $4.00
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,
2006 2005 2006 2005
(a) Calculation of income from
discontinued operations, net of
income tax:
(Loss) income from operations ($52) $747 ($217) $3,355
Gains on divestitures - 4,338 - 190,558
(Loss) income from discontinued
operations, pre-tax (52) 5,085 (217) 193,913
Income tax benefit (provision) 20 (1,853) 81 (62,911)
(Loss) income from discontinued
operations, net of income tax
expense ($32) $3,232 ($136) $131,002
(b) Earnings per share calculation:
Basic:
Income from continuing operations $34,202 $9,042 $259,594 $109,843
Less: Dividends on unvested
restricted stock, net of taxes (26) (23) (89) (104)
Income from continuing operations -
basic $34,176 $9,019 $259,505 $109,739
(Loss) income from discontinued
operations (32) 3,232 (136) 131,002
Net income - basic $34,144 $12,251 $259,369 $240,741
Weighted average number of common
shares - basic 53,936 54,002 54,557 55,658
Basic earnings (loss) per share:
From continuing operations $0.63 $0.17 $4.76 $1.98
From discontinued operations - 0.06 - 2.35
Total basic earnings per
share $0.63 $0.23 $4.76 $4.33
Diluted:
Income from continuing operations $34,202 $9,042 $259,594 $109,843
Less: Dividends on unvested
restricted stock, net of taxes (26) (23) (89) (104)
Add: Debenture interest, net of
taxes - - 4,887 9,628
Income from continuing operations -
diluted $34,176 $9,019 $264,392 $119,367
(Loss) income from discontinued
operations (32) 3,232 (136) 131,002
Net income - diluted $34,144 $12,251 $264,256 $250,369
Weighted average number of common
shares 53,936 54,002 54,557 55,658
Add: Shares for conversion of
convertible debentures - - 3,117 6,577
Other share equivalents 255 222 234 412
Weighted average number of common
shares and equiv. - diluted 54,191 54,224 57,908 62,647
Diluted earnings (loss) per share:
From continuing operations $0.63 $0.17 $4.57 $1.91
From discontinued operations - 0.06 (0.01) 2.09
Total diluted earnings per
share $0.63 $0.23 $4.56 $4.00
Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2006 2005
Assets:
Cash and cash equivalents $14,939 $7,963
Accounts receivable, net 595,009 499,726
Other current assets 118,558 100,609
Property, plant and equipment, net 1,685,085 1,429,653
Other assets 863,451 820,758
Total Assets $3,277,042 $2,858,709
Liabilities and Stockholders' Equity:
Current portion of long-term debt $1,938 $5,191
Other current liabilities 500,513 518,979
Other noncurrent liabilities 340,815 289,195
Long-term debt 821,363 637,654
Deferred income taxes 35,888 42,713
Minority interest 174,061 159,879
Stockholders' equity 1,402,464 1,205,098
Total Liabilities and Stockholders'
Equity $3,277,042 $2,858,709
Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31,
2006 2005
Cash Flows from Operating Activities:
Net income $259,458 $240,845
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation & amortization 163,694 163,714
Accretion of discount on convertible
debentures 6,364 12,644
Gains on sales of assets and
businesses, net of losses - (196,393)
Hurricane related expenses 13,792 165,028
Hurricane insurance recoveries
accrued (181,791) (81,709)
Hurricane insurance recoveries
received for operating expenses 43,929 -
Provision for asset impairment - 3,105
Changes in assets & liabilities,
net of effects from
acquisitions and dispositions:
Accounts receivable (93,552) 12,976
Accrued interest 796 1,504
Accrued and deferred income taxes (111,438) 64,825
Other working capital accounts 18,090 19,893
Other assets and deferred charges 2,524 (5,037)
Payment of hurricane related
expenses (14,889) (30,733)
Other 15,126 637
Minority interest in earnings of
consolidated entities, net of
distributions 15,536 3,477
Accrued insurance expense, net of
commercial premiums paid 76,456 82,774
Payments made in settlement of
self-insurance claims (44,856) (32,124)
Net cash provided by
operating activities 169,239 425,426
Cash Flows from Investing Activities:
Property and equipment additions,
net of disposals (341,140) (241,412)
Proceeds received from sales of
assets and businesses - 401,207
Acquisition of businesses (81,800) (280,828)
Hurricane insurance recoveries
received 144,571 75,000
Net cash used in investing
activities (278,369) (46,033)
Cash Flows from Financing Activities:
Additional borrowings 494,353 7,823
Reduction of long-term debt (34,898) (157,710)
Repurchase of common shares (350,372) (249,055)
Dividends paid (17,445) (17,885)
Issuance of common stock 5,637 13,487
Financing costs (2,020) (1,215)
Net cash received for termination
of derivatives 3,393 -
Capital contributions from
minority member 17,458 -
Net cash provided by (used
in) financing activities 116,106 (404,555)
Increase (Decrease) in cash and cash
equivalents 6,976 (25,162)
Cash and cash equivalents, beginning
of period 7,963 33,125
Cash and cash equivalents, end of
period $14,939 $7,963
Supplemental Disclosures of Cash Flow
Information:
Interest paid $35,474 $23,009
Income taxes paid, net of refunds $263,465 $60,426
Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Consolidated Statements of Income
Information ("Supplemental Schedule")
For the Three Months Ended December 31, 2006 and 2005
(in thousands, except per share amounts)
(unaudited)
Three months ended Three months ended
December 31, 2006 December 31, 2005
Net revenues $1,065,881 100.0% $967,175 100.0%
Operating charges:
Salaries, wages and benefits 461,500 43.3% 415,821 43.0%
Other operating expenses 228,026 21.4% 226,127 23.4%
Supplies expense 156,431 14.7% 120,212 12.4%
Provision for doubtful accounts 88,940 8.3% 87,438 9.0%
934,897 87.7% 849,598 87.8%
Operating income/margin 130,984 12.3% 117,577 12.2%
Lease and rental expense 15,813 15,347
Minority interests in earnings of
consolidated entities 8,621 5,786
Earnings before hurricane related
expenses, hurricane insurance
recoveries, depreciation and
amortization, interest expense, and
income taxes ("EBITDA") 106,550 96,444
Hurricane related expenses, net (640) 36,133
Depreciation and amortization 43,334 39,242
Interest expense, net 9,196 8,403
Income before income taxes 54,660 12,666
Provision for income taxes 20,458 3,624
Income from continuing operations 34,202 9,042
(Loss) income from discontinued
operations, net of income taxes (32) 3,232
Net income $34,170 $12,274
Three months ended Three months ended
December 31, 2006 December 31, 2005
Per Per
Diluted Diluted
Amount Share Amount Share
Calculation of Adjusted Income from
Continuing Operations
Income from continuing operations $34,202 $0.63 $9,042 $0.17
Plus/minus adjustments:
Hurricane related expenses, net of
recoveries, minority interests
and income taxes (233) - 20,978 0.39
Retroactive effect of supplemental
reimbursements earned in certain
states and contractual
settlements, net of income
taxes (6,280) (0.12) - -
Reserve for lawsuit, net of income
taxes 4,704 0.09 - -
Gain on sale of land, net of
income taxes - - (3,711) (0.07)
Other combined net favorable
adjustments (1,531) (0.04)
Subtotal after-tax adjustments to
income from continuing operations (1,809) (0.03) 15,736 0.28
Adjusted income from continuing
operations $32,393 $0.60 $24,778 $0.45
Calculation of Adjusted Net Income
Net income $34,170 $0.63 $12,274 $0.23
After-tax adjustments to income from
continuing operations, as indicated
above (1,809) (0.03) 15,736 0.28
Gain on divestitures, net of income
taxes - - (784) (0.01)
Adjusted net income $32,361 $0.60 $27,226 $0.50
Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Consolidated Statements of Income
Information ("Supplemental Schedule")
For the Twelve Months Ended December 31, 2006 and 2005
(in thousands, except per share amounts)
(unaudited)
Twelve months ended Twelve months ended
December 31, 2006 December 31, 2005
Net revenues $4,191,300 100.0% $3,935,480 100.0%
Operating charges:
Salaries, wages and benefits 1,797,587 42.9% 1,625,996 41.3%
Other operating expenses 936,958 22.4% 921,118 23.4%
Supplies expense 556,702 13.3% 489,999 12.5%
Provision for doubtful accounts 349,030 8.3% 368,058 9.4%
3,640,277 86.9% 3,405,171 86.5%
Operating income/margin 551,023 13.1% 530,309 13.5%
Lease and rental expense 64,060 60,790
Minority interests in earnings
of consolidated entities 46,238 25,645
Earnings before hurricane related
expenses, hurricane insurance
recoveries, depreciation and
amortization, interest expense,
and income taxes ("EBITDA") 440,725 443,874
Hurricane related expenses, net 13,792 165,028
Hurricane insurance recoveries (181,791) (81,709)
Depreciation and amortization 163,694 155,478
Interest expense, net 32,558 32,933
Income before income taxes 412,472 172,144
Provision for income taxes 152,878 62,301
Income from continuing operations 259,594 109,843
(Loss) income from discontinued
operations, net of income taxes (136) 131,002
Net income $259,458 $240,845
Twelve months Twelve months
ended ended
December 31, 2006 December 31, 2005
Per Per
Diluted Diluted
Amount Share Amount Share
Calculation of Adjusted Income from
Continuing Operations
Income from continuing operations $259,594 $4.57 $109,843 $1.91
Plus/minus adjustments:
Hurricane related expenses, net of
minority interests and income
taxes 7,572 0.13 99,042 1.58
Hurricane related insurance
recoveries, net of minority
interests and income taxes (107,480) (1.86) (48,663) (0.78)
Retroactive effect of supplemental
reimbursements earned in certain
states and contractual
settlements, net of income
taxes (10,059) (0.18) (5,225) (0.08)
William & Mary Funding 4,466 0.08 - -
Favorable tax reserve adjustment (2,900) (0.05) - -
Reserve for lawsuit, net of income
taxes 6,273 0.11
Gain on sale of land, net of
income taxes - - (3,711) (0.06)
Other combined net favorable
adjustments - - (203) (0.01)
Subtotal after-tax adjustments to
income from continuing operations (102,128) (1.77) 41,240 0.65
Adjusted income from continuing
operations $157,466 $2.80 $151,083 $2.56
Calculation of Adjusted Net Income
Net income $259,458 $4.56 $240,845 $4.00
After-tax adjustments to income from
continuing operations, as indicated
above (102,128) (1.77) 41,240 0.65
Gain on divestitures, net of income
taxes - - (127,246) (2.03)
Adjusted net income $157,330 $2.79 $154,839 $2.62
Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
% Change % Change
Quarter Ended 12 months ended
Same Facility: 12/31/2006 12/31/2006
Acute Care Hospitals
Revenues 7.0% 6.4%
Adjusted Admissions 2.1% 1.6%
Adjusted Patient Days 5.0% 3.2%
Revenue Per Adjusted Admission 4.8% 4.7%
Revenue Per Adjusted Patient Day 1.9% 3.1%
Behavioral Health Hospitals
Revenues 8.2% 8.4%
Adjusted Admissions 4.2% 2.6%
Adjusted Patient Days 1.4% 0.5%
Revenue Per Adjusted Admission 3.8% 5.6%
Revenue Per Adjusted Patient Day 6.7% 7.8%
UHS Consolidated Fourth Quarter Ended Twelve months Ended
12/31/2006 12/31/2005 12/31/2006 12/31/2005
Revenues $1,065,881 $967,175 $4,191,300 $3,935,480
EBITDA (1) 106,550 96,444 440,725 443,874
EBITDA Margin (1) 10.0% 10.0% 10.5% 11.3%
Cash Flow From Operations (80,781) 68,983 169,239 425,426
Days Sales Outstanding 51 48 51 47
Capital Expenditures 108,132 70,069 341,140 241,412
Debt - 823,301 $642,845
Shareholders Equity - 1,402,464 $1,205,098
Debt / Total Capitalization - 37.0% 34.8%
Debt / EBITDA (2) - 1.87 1.45
Debt / Cash From Operations (2) - 4.86 1.51
Acute Care EBITDAR Margin
(3) (4) 12.1% 12.1% 13.5% 13.8%
Behavioral Health EBITDAR
Margin (3) (4) 22.6% 18.7% 23.3% 22.8%
(1) Net of Minority Interest
(2) Latest 4 quarters
(3) Before Corporate overhead allocation and minority interest
(4) Excluding discontinued operations
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
FOR THE THREE MONTHS ENDED
DECEMBER 31, 2006
AS REPORTED:
ACUTE (1) (2)
12/31/06 12/31/05 % change
Hospitals owned and leased 24 26 -7.7%
Average licensed beds 5,139 5,557 -7.5%
Patient days 275,664 261,720 5.3%
Average daily census 2,996.3 2,844.8 5.3%
Occupancy-licensed beds 58.3% 51.2% 13.9%
Admissions 62,055 60,628 2.4%
Length of stay 4.4 4.3 2.9%
Inpatient revenue $1,910,457 $1,707,385 11.9%
Outpatient revenue 729,711 661,321 10.3%
Total patient revenue 2,640,168 2,368,706 11.5%
Other revenue 12,859 12,635 1.8%
Gross hospital revenue 2,653,027 2,381,341 11.4%
Total deductions 1,870,180 1,658,437 12.8%
Net hospital revenue $782,847 $722,904 8.3%
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
FOR THE THREE MONTHS ENDED
DECEMBER 31, 2006
AS REPORTED:
BEHAVIORAL HEALTH
12/31/06 12/31/05 % change
Hospitals owned and leased 79 72 9.7%
Average licensed beds 6,927 5,996 15.5%
Patient days 469,340 441,347 6.3%
Average daily census 5,101.5 4,797.3 6.3%
Occupancy-licensed beds 73.6% 80.0% -7.9%
Admissions 27,211 25,931 4.9%
Length of stay 17.2 17.0 1.3%
Inpatient revenue $418,770 $389,872 7.4%
Outpatient revenue 51,848 47,732 8.6%
Total patient revenue 470,618 437,604 7.5%
Other revenue 8,115 8,096 0.2%
Gross hospital revenue 478,733 445,700 7.4%
Total deductions 217,182 212,278 2.3%
Net hospital revenue $261,551 $233,422 12.1%
SAME FACILITY:
ACUTE (1) (3) BEHAVIORAL HEALTH (4)
% %
12/31/06 12/31/05 change 12/31/06 12/31/05 change
Hospitals owned and
leased 23 23 0.0% 69 69 0.0%
Average licensed beds 5,139 5,012 2.5% 6,193 5,920 4.6%
Patient days 275,650 261,731 5.3% 442,621 436,310 1.4%
Average daily census 2,996.2 2,844.9 5.3% 4,811.1 4,742.5 1.4%
Occupancy-licensed beds 58.3% 56.8% 2.7% 77.7% 80.1% -3.0%
Admissions 62,055 60,628 2.4% 26,475 25,521 3.7%
Length of stay 4.4 4.3 2.9% 16.7 17.1 -2.2%
(1) Does not include hospitals located in France or discontinued
operations.
(2) Does not include discontinued operations. Licensed beds from our
Acute care hospitals located in New Orleans are excluded in 2006.
(3) Discontinued operations and our three acute care hospitals located
in New Orleans are excluded in current and prior years.
(4) Academy at Canyon Creek, Ascent, Boulder Creek, Casa de Lago, Cedar
Ridge RTC & Hospital, Lincoln Trail, NorthStar RTC, Northwest
Academy, Spring Mountain Sahara, Tennessee Valley, Tuscoloosa Juv.
Det., Triple L. Group Homes are excluded in current and prior year.
King George School is included in both current and prior years from
September 1st through YTD. The Keystone facilities are included in
both current and prior years from October 1st through YTD.
Wyaoming Behavioral is included in both current and prior years
from November 1st through YTD and
Center for Change is included in both current and prior years
from December 1st through YTD.
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 2006
AS REPORTED:
ACUTE (1) (2)
12/31/06 12/31/05 % change
Hospitals owned and leased 24 26 -7.7%
Average licensed beds 5,139 5,554 -7.5%
Patient days 1,095,375 1,138,936 -3.8%
Average daily census 3,001.0 3,120.4 -3.8%
Occupancy-licensed beds 58.4% 56.2% 3.9%
Admissions 246,429 254,522 -3.2%
Length of stay 4.4 4.5 -0.7%
Inpatient revenue $7,518,157 $7,246,246 3.8%
Outpatient revenue 2,876,867 2,778,036 3.6%
Total patient revenue 10,395,024 10,024,282 3.7%
Other revenue 51,549 52,485 -1.8%
Gross hospital revenue 10,446,573 10,076,767 3.7%
Total deductions 7,340,190 7,002,638 4.8%
Net hospital revenue $3,106,383 $3,074,129 1.0%
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
FOR THE TWELVE MONTHS ENDED
DECEMBER 31, 2006
AS REPORTED:
BEHAVIORAL HEALTH
12/31/06 12/31/05 % change
Hospitals owned and leased 79 72 9.7%
Average licensed beds 6,607 4,849 36.3%
Patient days 1,855,306 1,446,260 28.3%
Average daily census 5,083.0 3,962.4 28.3%
Occupancy-licensed beds 76.9% 81.7% -5.9%
Admissions 111,490 102,683 8.6%
Length of stay 16.6 14.1 18.1%
Inpatient revenue $1,663,509 $1,397,256 19.1%
Outpatient revenue 206,453 192,824 7.1%
Total patient revenue 1,869,962 1,590,080 17.6%
Other revenue 32,207 31,897 1.0%
Gross hospital revenue 1,902,169 1,621,977 17.3%
Total deductions 873,202 804,537 8.5%
Net hospital revenue $1,028,967 $817,440 25.9%
SAME FACILITY:
ACUTE (1) (3)
12/31/06 12/31/05 % change
Hospitals owned and leased 23 23 0.0%
Average licensed beds 5,070 5,009 1.2%
Patient days 1,095,329 1,062,077 3.1%
Average daily census 3,000.9 2,909.8 3.1%
Occupancy-licensed beds 59.2% 58.1% 1.9%
Admissions 246,429 242,363 1.7%
Length of stay 4.4 4.4 1.4%
(1) Does not include hospitals located in France or discontinued
operations.
(2) Does not include discontinued operations. Licensed beds from our
Acute care hospitals located in New Orleans
are excluded in 2006.
(3) Discontinued operations and our three acute care hospitals
located in New Orleans are excluded in current
and prior years.
(4) Academy at Canyon Creek, Ascent, Boulder Creek, Casa de Lago,
Cedar Ridge RTC & Hospital, Lincoln Trail,
NorthStar RTC, Northwest Academy, Spring Mountain Sahara,
Tennessee Valley, Tuscoloosa Juv. Det., Triple L. Group Homes are
excluded in current and prior year. King George School is included
in both current and prior years from September 1st through
YTD. The Keystone facilities are included in both current and
prior years from October 1st through YTD.
Wyaoming Behavioral is included in both current and prior
years from November 1st through YTD and
Center for Change is included in both current and prior years
from December 1st through YTD.
SAME FACILITY:
BEHAVIORAL HEALTH (4)
12/31/06 12/31/05 % change
Hospitals owned and leased 69 69 0.0%
Average licensed beds 4,925 4,827 2.0%
Patient days 1,464,964 1,441,093 1.7%
Average daily census 4,013.6 3,948.2 1.7%
Occupancy-licensed beds 81.5% 81.8% -0.4%
Admissions 106,099 102,273 3.7%
Length of stay 13.8 14.1 -2.0%
(1) Does not include hospitals located in France or discontinued
operations.
(2) Does not include discontinued operations. Licensed beds from our
Acute care hospitals located in New Orleans
are excluded in 2006.
(3) Discontinued operations and our three acute care hospitals
located in New Orleans are excluded in current
and prior years.
(4) Academy at Canyon Creek, Ascent, Boulder Creek, Casa de Lago,
Cedar Ridge RTC & Hospital, Lincoln Trail,
NorthStar RTC, Northwest Academy, Spring Mountain Sahara,
Tennessee Valley, Tuscoloosa Juv. Det.,
Triple L. Group Homes are excluded in current and prior year.
King George School is included
in both current and prior years from September 1st through
YTD.
The Keystone facilities are included in both current and
prior years from October 1st through YTD.
Wyaoming Behavioral is included in both current and prior
years from November 1st through YTD and
Center for Change is included in both current and prior years
from December 1st through YTD.
