KING OF PRUSSIA, Pa., Feb. 28, 2011 /PRNewswire/ -- Universal Health Services, Inc. announced today that its reported net income attributable to UHS was $37.2 million, or $.38 per diluted share, during the fourth quarter of 2010 as compared to $60.9 million, or $.62 per diluted share, during the comparable prior year quarter. Net revenues increased 21% to $1.56 billion during the fourth quarter of 2010 as compared to $1.29 billion during the fourth quarter of 2009. The increase in net revenues during the fourth quarter of 2010, as compared to the comparable quarter of the prior year, was due primarily to the revenues generated at the behavioral health care facilities acquired from Psychiatric Solutions, Inc. ("PSI") in November, 2010, as discussed below.
Consolidated Results of Operations, As Reported - Years ended December 31, 2010 and 2009:
Reported net income attributable to UHS was $230.2 million, or $2.34 per diluted share, during the year ended December 31, 2010 as compared to $260.4 million, or $2.64 per diluted share, during 2009. Net revenues increased 7% to $5.57 billion during 2010 as compared to $5.20 billion during 2009.
Consolidated Results of Operations, As Adjusted - Three-month periods ended December 31, 2010 and 2009:
After adjusting the reported results for the three-month periods ended December 31, 2010 and 2009 to neutralize the net 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 $57.5 million, or $.58 per diluted share, during the fourth quarter of 2010 as compared to $56.5 million, or $.57 per diluted share, during the fourth quarter of 2009. 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 Schedules, included in our net income attributable to UHS during the three-month period ended December 31, 2010, was a net charge of $20.4 million, or $.20 per diluted share, consisting of: (i) the unfavorable after-tax impact of $24.9 million, or $.25 per diluted share, resulting from the recording of transaction fees incurred in connection with our acquisition of PSI; (ii) the unfavorable after-tax impact of $9.2 million, or $.09 per diluted share, resulting from the charge incurred in connection with the previously disclosed split-dollar life insurance agreements; (iii) the unfavorable after-tax impact of $4.1 million, or $.04 per diluted share, resulting from the write-off of certain construction costs, partially offset by; (iv) the favorable after-tax impact of $17.9 million, or $.18 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2010 based upon a reserve analysis.
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 after-tax 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.
Consolidated Results of Operations, As Adjusted - Years ended December 31, 2010 and 2009:
After adjusting the reported results for the years ended December 31, 2010 and 2009 to neutralize the impact of the items mentioned below, and as reflected on the attached Supplemental Schedule, our adjusted net income attributable to UHS was $249.8 million, or $2.54 per diluted share, during 2010 as compared to $246.2 million, or $2.49 per diluted share, during 2009.
As indicated on the attached Supplemental Schedules, included in our net income attributable to UHS during the year ended December 31, 2010, was a net charge of $19.6 million, or $.20 per diluted share, consisting of: (i) the unfavorable after-tax impact of $38.7 million, or $.39 per diluted share, resulting from the recording of transaction fees incurred in connection with our acquisition of PSI; (ii) the unfavorable after-tax impact of $9.2 million, or $.09 per diluted share, resulting from the charge incurred in connection with split-dollar life insurance agreements; (iii) the unfavorable after-tax impact of $4.1 million, or $.04 per diluted share, resulting from the write-off of certain construction costs, partially offset by; (iv) the favorable after-tax impact of $28.1 million, or $.28 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2010 based upon a reserve analysis, and; (v) a favorable discrete tax item $4.3 million, or $.04 per diluted share, related to the estimated non-deductible portion of the South Texas Health System settlement with the government based upon the final agreement.
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) the favorable after-tax adjustment 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; (ii) the favorable after-tax adjustment of $14.2 million, or $.14 per diluted share, 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 of $4.3 million, or $.04 per diluted share, related to the estimated non-deductible portion of the South Texas Health System settlement with the government.
"For the last two years, the overall weakness in the economy has created a very challenging operating environment," said Alan B. Miller, Chief Executive Officer. "We look to 2011 and beyond with renewed enthusiasm, however, as we begin to see signs of gradual recovery in a number of our markets. Additionally, we continue to be excited at the prospect of overseeing the premier behavioral health platform in the industry and look forward to the opportunities this will allow us to create over the course of the next several years."
The PSI Acquisition:
In November, 2010, we completed the acquisition of Psychiatric Solutions Inc. ("PSI") for a total purchase price of $3.04 billion consisting of $1.96 billion in cash plus the assumption of approximately $1.08 billion of PSI's debt, the majority of which has since been refinanced. PSI was formerly the largest operator of freestanding inpatient behavioral health care facilities operating a total of 105 inpatient and outpatient facilities in 32 states, Puerto Rico, and the U.S. Virgin Islands.
Acute Care Services - Three-month periods ended December 31, 2010 and 2009:
At our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) were relatively unchanged while adjusted patient days increased 0.3% during the fourth quarter of 2010, as compared to the fourth quarter of 2009. Net revenues at these facilities increased 2.3% during the fourth quarter of 2010 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 2.4% while net revenue per adjusted patient day increased 2.0% during the fourth quarter of 2010 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, excluding the items indicated on the Supplemental Schedules) at our acute care hospitals increased to 14.4% during the fourth quarter of 2010 as compared to 13.5% during the fourth quarter of 2009. The increased operating margin for our acute care facilities during the fourth quarter of 2010, as compared to the comparable quarter of the prior year, was due primarily to improvements in the operating environments of several of our local markets, including Las Vegas, Nevada.
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 $208 million and $162 million during the three-month periods ended December 31, 2010 and 2009, respectively.
Acute Care Services - Years ended December 31, 2010 and 2009:
During the year ended December 31, 2010, on a same facility basis, adjusted admissions to our acute care facilities increased 1.3% while adjusted patient days increased 0.7%, as compared to 2009. Net revenues at our acute care facilities increased 2.4% during 2010 as compared to 2009. At these facilities, net revenue per adjusted admission increased 1.0% while net revenue per adjusted patient day increased 1.7% during 2010 as compared to 2009. On a same facility basis, the operating margin at our acute care hospitals decreased to 14.5% during 2010 as compared to 15.3% during 2009.
Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $807 million and $671 million during 2010 and 2009, respectively.
Behavioral Health Care Services - Three-month periods ended December 31, 2010 and 2009:
At our behavioral health care facilities, on a same facility basis, adjusted admissions increased 5.1% while adjusted patient days decreased 0.4% during the fourth quarter of 2010 as compared to the fourth quarter of 2009. Net revenues at these facilities increased 5.9% during the fourth quarter of 2010 as compared to the comparable quarter in the prior year. At these facilities, net revenue per adjusted admission increased 0.4% while net revenue per adjusted patient day increased 5.9% during the fourth quarter of 2010 over the comparable prior year quarter. The operating margin at our behavioral health care facilities owned during both periods decreased to 24.0% during the fourth quarter of 2010 as compared to 24.6% during the fourth quarter of 2009.
Behavioral Health Care Services - Years ended December 31, 2010 and 2009:
During the year ended December 31, 2010, on a same facility basis, adjusted admissions to our behavioral health care facilities increased 4.2% while adjusted patient days increased 1.7%, as compared to 2009. Net revenues at our behavioral health care facilities increased 6.0% during 2010 as compared to 2009. At these facilities, net revenue per adjusted admission increased 1.4% while net revenue per adjusted patient day increased 3.9% during 2010 as compared to 2009. On a same facility basis, the operating margin at our behavioral health facilities increased to 26.0% during 2010 as compared to 24.9% during 2009.
2011 Full Year Guidance:
Our estimated range of earnings per diluted share attributable to UHS for the year ended December 31, 2011 is $3.50 to $3.65 on projected net revenues of $7.6 billion to $7.7 billion.
This guidance range is based upon the operating trends and financial results experienced during 2010 and include the projected results for the facilities acquired by us from PSI in November, 2010. This guidance range 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 2011 financial statements that relate to prior periods. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.
Conference Call Information:
We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on March 1, 2011. 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, 2011 and will continue through midnight on March 15, 2011. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 39875831. This call will also be available live over the internet at our web site at http://www.uhsinc.com/. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://www.earnings.com/, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents at http://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 and the U.S. Virgin Islands. 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, 2010), 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, 2010. 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 Twelve months ended December 31, ended December 31, ------------------ ------------------ 2010 2009 2010 2009 ---- ---- ---- ---- Net revenues $1,559,453 $1,291,211 $5,568,185 $5,202,379 Operating charges: Salaries, wages and benefits 707,882 562,931 2,423,102 2,204,422 Other operating expenses 272,873 235,016 1,005,288 994,923 Supplies expense 189,327 177,219 733,093 699,249 Provision for doubtful accounts 144,288 127,869 546,909 508,603 Depreciation and amortization 60,849 51,279 223,915 204,703 Lease and rental expense 22,413 18,035 76,961 69,947 Transaction costs 31,105 0 53,220 0 1,428,737 1,172,349 5,062,488 4,681,847 --------- --------- --------- --------- Income from operations 130,716 118,862 505,697 520,532 45,810 Interest expense, net 41,468 10,513 77,600 45,810 ------ ------ ------ ------ Income before income taxes 89,248 108,349 428,097 474,722 Provision for income taxes 38,432 39,167 152,302 170,475 ------ ------ ------- ------- Net income 50,816 69,182 275,795 304,247 Less: Income attributable to noncontrolling interests 13,634 8,317 45,612 43,874 Net income attributable to UHS $37,182 $60,865 $230,183 $260,373 ======= ======= ======== ======== Basic earnings per share attributable to UHS (a) $0.38 $0.62 $2.37 $2.65 ===== ===== ===== ===== Diluted earnings per share attributable to UHS (a) $0.38 $0.62 $2.34 $2.64 ===== ===== ===== ===== Universal Health Services, Inc. ------------------------------- Footnotes to Consolidated Statements of Income ---------------------------------------------- (in thousands, except per share amounts) (unaudited) Three months Twelve months ended December ended December 31, 31, --------------- --------------- 2010 2009 2010 2009 ---- ---- ---- ---- (a) Earnings per share calculation: ------------------- Basic and diluted: ------------------ Net income attributable to UHS $37,182 $60,865 $230,183 $260,373 Less: Net income attributable to unvested restricted share grants (92) (234) (918) (1,146) --- ---- ---- ------ Net income attributable to UHS -basic and diluted $37,090 $60,631 $229,265 $259,227 ======= ======= ======== ======== Weighted average number of common shares -basic 97,125 97,290 96,786 97,794 ------ ------ ------ ------ Basic earnings per share attributable to UHS: $0.38 $0.62 $2.37 $2.65 ===== ===== ===== ===== Weighted average number of common shares 97,125 97,290 96,786 97,794 Add: Other share equivalents 1,328 790 1,187 481 Weighted average number of common shares and equiv. - diluted 98,453 98,080 97,973 98,275 ------ ------ ------ ------ Diluted earnings per share attributable to UHS: $0.38 $0.62 $2.34 $2.64 ===== ===== ===== ===== Universal Health Services, Inc. ------------------------------- Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule") ------------------------------------------------------------------- For the three months ended December 31, 2010 and 2009 ----------------------------------------------------- (in thousands, except per share amounts) (unaudited) Three months ended Three months ended December 31, 2010 December 31, 2009 ----------------- ----------------- Net revenues $1,559,453 100.0% $1,291,211 100.0% Operating charges: Salaries, wages and benefits 707,882 45.4% 562,931 43.6% Other operating expenses 272,873 17.5% 235,016 18.2% Supplies expense 189,327 12.1% 177,219 13.7% Provision for doubtful accounts 144,288 9.3% 127,869 9.9% 1,314,370 84.3% 1,103,035 85.4% --------- ---- --------- ---- Operating income/ margin 245,083 15.7% 188,176 14.6% Lease and rental expense 22,413 18,035 Income attributable to noncontrolling interests 13,634 8,317 ------ ----- Earnings before, depreciation and amortization, interest expense, and income taxes 209,036 161,824 Depreciation and amortization 60,849 51,279 Interest expense, net 41,468 10,513 Transaction costs 31,105 0 ------ --- Income before income taxes 75,614 100,032 Provision for income taxes 38,432 39,167 ------ ------ Net income attributable to UHS $37,182 $60,865 ======= ======= Three months ended Three months ended December 31, 2010 December 31, 2009 ----------------- ----------------- Per Per Diluted Diluted Amount Share Amount Share ------ -------- ------ -------- Calculation of Adjusted Net Income Attributable to UHS ------------- Net income attributable to UHS $37,182 $0.38 $60,865 $0.62 Plus/minus adjustments: Acquisition transaction costs, net of income taxes 24,933 0.25 - - Reduction of reserves relating to prior years for professional and general liability self-insured claims, net of income taxes (17,915) (0.18) - - Write-off certain construction costs, net of income taxes 4,133 0.04 - - Charge recorded in connection with split- dollar life insurance agreements 9,207 0.09 - - Reduction of reserves relating to prior years for workers' compensation self-insured claims, net of income taxes - - (4,350) (0.05) Subtotal after-tax adjustments to net income attributable to UHS 20,358 0.20 (4,350) (0.05) ------ ---- ------ ----- Adjusted net income attributable to UHS $57,540 $0.58 $56,515 $0.57 ======= ===== ======= ===== Universal Health Services, Inc. ------------------------------- Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule") ------------------------------------------------------------------- For the twelve months ended December 31, 2010 and 2009 ------------------------------------------------------ (in thousands, except per share amounts) (unaudited) Twelve months ended Twelve months ended December 31, 2010 December 31, 2009 ----------------- ----------------- Net revenues $5,568,185 100.0% $5,202,379 100.0% Operating charges: Salaries, wages and benefits 2,423,102 43.5% 2,204,422 42.4% Other operating expenses 1,005,288 18.1% 994,923 19.1% Supplies expense 733,093 13.2% 699,249 13.4% Provision for doubtful accounts 546,909 9.8% 508,603 9.8% 4,708,392 84.6% 4,407,197 84.7% --------- ---- --------- ---- Operating income/ margin 859,793 15.4% 795,182 15.3% Lease and rental expense 76,961 69,947 Income attributable to noncontrolling interests 45,612 43,874 ------ ------ Earnings before, depreciation and amortization, interest expense, and income taxes 737,220 681,361 Depreciation and amortization 223,915 204,703 Interest expense, net 77,600 45,810 Transaction costs 53,220 0 ------ --- Income before income taxes 382,485 430,848 Provision for income taxes 152,302 170,475 ------- ------- Net income attributable to UHS $230,183 $260,373 ======== ======== Twelve months ended Twelve months ended December 31, 2010 December 31, 2009 ----------------- ----------------- Per Per Diluted Diluted Amount Share Amount Share ------ -------- ------ -------- Calculation of Adjusted Net Income Attributable to UHS -------------- Net income attributable to UHS $230,183 $2.34 $260,373 $2.64 Plus/minus adjustments: Reduction of reserves relating to prior years for professional and general liability self-insured claims, net of income taxes (28,113) (0.28) (14,168) (0.14) Reduction of reserves relating to prior years for workers' compensation self-insured claims, net of income taxes (4,350) (0.05) Acquisition transaction costs, net of income taxes 38,675 0.39 - - Write-off certain construction costs, net of income taxes 4,133 0.04 - - Charge recorded in connection with split- dollar life insurance agreements 9,207 0.09 - - (Favorable) Unfavorable discrete tax item (4,331) (0.04) 4,331 0.04 Subtotal after-tax adjustments to net income attributable to UHS 19,571 0.20 (14,187) (0.15) ------ ---- ------- ----- Adjusted net income attributable to UHS $249,754 $2.54 $246,186 $2.49 ======== ===== ======== ===== Universal Health Services, Inc. ------------------------------- Condensed Consolidated Balance Sheets ------------------------------------- (in thousands) December December 31, 31, 2010 2009 (a) ---- -------- Assets Current assets: Cash and cash equivalents $29,474 $9,180 Accounts receivable, net 837,820 602,559 Supplies 94,330 84,272 Other current assets 130,060 27,270 Deferred income taxes 120,834 51,336 Assets of facilities held for sale 118,598 21,580 Total current assets 1,331,116 796,197 --------- ------- Property and equipment 4,853,972 3,738,818 Less: accumulated depreciation (1,601,005) (1,423,580) 3,252,967 2,315,238 --------- --------- Other assets: Goodwill 2,589,914 732,685 Deferred charges 108,660 8,643 Other 245,279 111,700 $7,527,936 $3,964,463 ========== ========== Liabilities and Stockholders' Equity Current liabilities: Current maturities of long- term debt $3,449 $2,573 Accounts payable and accrued liabilities 819,334 578,617 Liabilities of facilities held for sale 3,516 0 Federal and state taxes 0 1,627 Total current liabilities 826,299 582,817 ------- ------- Other noncurrent liabilities 380,649 375,580 Long-term debt 3,912,102 956,429 Deferred income taxes 173,354 60,091 Redeemable noncontrolling interest 211,761 197,152 UHS common stockholders' equity 1,978,772 1,751,071 Noncontrolling interest 44,999 41,323 ------ ------ Total equity 2,023,771 1,792,394 $7,527,936 $3,964,463 ========== ========== (a) Revised to reclassify $197.2 million of noncontrolling interests, which are redeemable outside of our control, from total equity to mezzanine equity. This revision did not affect UHS's common stockholders' equity. We do not believe this revision is material to the Condensed Consolidated Balance Sheet at December 31, 2009. Universal Health Services, Inc. ------------------------------- Consolidated Statements of Cash Flows ------------------------------------- (in thousands) Twelve months ended December 31, ------------------ 2010 2009 ---- ---- Cash Flows from Operating Activities: Net income $275,795 $304,247 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation & amortization 223,997 204,703 Net gain on sale of assets and businesses (1,993) (1,346) Stock-based compensation expense 16,799 13,096 Changes in assets & liabilities, net of effects from acquisitions and dispositions: Accounts receivable 22,726 (1,402) Construction management and other receivable 0 29,519 Accrued interest 8,408 357 Accrued and deferred income taxes 132 14,930 Other working capital accounts (26,437) (18,828) Other assets and deferred charges 11,539 6,699 Other 812 755 Accrued insurance expense, net of commercial premiums paid 19,739 44,314 Payments made in settlement of self-insurance claims (50,173) (55,782) Net cash provided by operating activities 501,344 541,262 ------- ------- Cash Flows from Investing Activities: Property and equipment additions, net of disposals (239,274) (379,748) Acquisition of property and businesses (1,958,298) (12,499) Proceeds received from sale of assets and businesses 21,460 9,770 Costs incurred for purchase and implementation of electronic health records applications (17,971) (7,957) Net cash used in investing activities (2,194,083) (390,434) ---------- -------- Cash Flows from Financing Activities: Reduction of long-term debt (1,392,086) (66,499) Additional borrowings 3,266,146 26,069 Financing costs (101,815) 0 Repurchase of common shares (11,528) (63,288) Dividends paid (19,422) (16,706) Issuance of common stock 3,594 3,290 Profit distributions to noncontrolling interests (32,456) (29,866) Proceeds from sale of noncontrolling interest in majority owned business 600 0 Capital contributions from noncontrolling interests 0 121 Purchase of noncontrolling interest in majority owned business 0 (229) Net cash provided by (used in) financing activities 1,713,033 (147,108) --------- -------- Increase in cash and cash equivalents 20,294 3,720 Cash and cash equivalents, beginning of period 9,180 5,460 Cash and cash equivalents, end of period $29,474 $9,180 ======= ====== Supplemental Disclosures of Cash Flow Information: Interest paid $76,900 $57,018 ======= ======= Income taxes paid, net of refunds $152,088 $155,368 ======== ======== Universal Health Services, Inc. Supplemental Statistical Information (unaudited) % Change % Change Quarter Ended 12 months ended Same Facility: 12/31/2010 12/31/2010 -------------- ---------- ---------- Acute Care Hospitals -------------------- Revenues 2.3% 2.4% Adjusted Admissions -0.1% 1.3% Adjusted Patient Days 0.3% 0.7% Revenue Per Adjusted Admission 2.4% 1.0% Revenue Per Adjusted Patient Day 2.0% 1.7% Behavioral Health Hospitals --------------------------- Revenues 5.9% 6.0% Adjusted Admissions 5.1% 4.2% Adjusted Patient Days -0.4% 1.7% Revenue Per Adjusted Admission 0.4% 1.4% Revenue Per Adjusted Patient Day 5.9% 3.9% UHS Consolidated Fourth Quarter Ended Twelve months Ended ---------------- -------------------- ------------------- 12/31/2010 12/31/2009 12/31/2010 12/31/2009 ---------- ---------- ---------- ---------- Revenues $1,559,453 $1,291,211 $5,568,185 $5,202,379 EBITDA (1) 209,036 161,824 737,220 681,361 EBITDA Margin (1) 13.4% 12.5% 13.2% 13.1% Cash Flow From Operations 101,745 56,987 501,344 541,262 Days Sales Outstanding 43 43 43 42 Capital Expenditures 59,045 100,923 239,274 379,748 Total Debt 3,915,551 959,002 UHS Shareholders Equity 1,978,772 1,751,071 Total Debt /Total Capitalization 66.4% 35.4% Total Debt / EBITDA (2) 5.31 1.41 Debt /Cash From Operations (2) 7.81 1.77 Acute Care EBITDAR Margin (3) 14.4% 13.5% 14.5% 15.3% Behavioral Health EBITDAR Margin (3) 21.7% 24.5% 24.6% 24.8% (1) Net of Minority Interest and before the items indicated on the supplemental schedules booked in 2010 and 2009 (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, 2010 AS REPORTED: ------------ ACUTE % 12/31/10 12/31/09 change -------- -------- ------- Hospitals owned and leased 21 21 0.0% Average licensed beds 5,689 5,540 2.7% Patient days 284,534 289,469 -1.7% Average daily census 3,092.8 3,146.4 -1.7% Occupancy-licensed beds 54.4% 56.8% -4.3% Admissions 64,655 66,018 -2.1% Length of stay 4.4 4.4 0.4% Inpatient revenue $2,794,619 $2,471,016 13.1% Outpatient revenue 1,235,850 1,018,861 21.3% Total patient revenue 4,030,469 3,489,877 15.5% Other revenue 19,136 17,254 10.9% Gross hospital revenue 4,049,605 3,507,131 15.5% Total deductions 3,076,918 2,556,636 20.4% Net hospital revenue $972,687 $950,495 2.3% SAME FACILITY: -------------- ACUTE % 12/31/10 12/31/09 change -------- -------- ------- Hospitals owned and leased 21 21 0.0% Average licensed beds 5,689 5,540 2.7% Patient days 284,538 289,469 -1.7% Average daily census 3,092.8 3,146.4 -1.7% Occupancy-licensed beds 54.4% 56.8% -4.3% Admissions 64,655 66,018 -2.1% Length of stay 4.4 4.4 0.4% AS REPORTED: ------------ BEHAVIORAL HEALTH % 12/31/10 12/31/09 change -------- -------- ------- Hospitals owned and leased 179 84 113.1% Average licensed beds 13,750 8,054 70.7% Patient days 885,807 530,927 66.8% Average daily census 9,628.3 5,770.9 66.8% Occupancy-licensed beds 70.0% 71.7% -2.3% Admissions 56,940 33,614 69.4% Length of stay 15.6 15.8 -1.5% Inpatient revenue $916,831 $522,505 75.5% Outpatient revenue 111,874 73,255 52.7% Total patient revenue 1,028,705 595,760 72.7% Other revenue 24,131 8,120 197.2% Gross hospital revenue 1,052,836 603,880 74.3% Total deductions 474,299 272,925 73.8% Net hospital revenue $578,537 $330,955 74.8% SAME FACILITY: -------------- BEHAVIORAL HEALTH (1) % 12/31/10 12/31/09 change -------- -------- ------- Hospitals owned and leased 81 81 0.0% Average licensed beds 8,011 7,902 1.4% Patient days 527,850 528,430 -0.1% Average daily census 5,737.5 5,743.8 -0.1% Occupancy-licensed beds 71.6% 72.7% -1.5% Admissions 35,431 33,607 5.4% Length of stay 14.9 15.7 -5.3% (1) Ascent, Crescent Pines and the Hope program are excluded in both current and prior years. Coastal Behavioral is included in March 1st thru year to date. Centennial Peaks is included in July 1st thru year to date. Springwoods Behavioral is included in September 1st thru year to date. Facilities acquired in acquisition of Psychiatric Solutions are excluded in current and prior years. UNIVERSAL HEALTH SERVICES, INC. SELECTED HOSPITAL STATISTICS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010 AS REPORTED: ------------ ACUTE % 12/31/10 12/31/09 change -------- -------- ------- Hospitals owned and leased 21 21 0.0% Average licensed beds 5,689 5,484 3.7% Patient days 1,155,987 1,166,704 -0.9% Average daily census 3,167.1 3,196.4 -0.9% Occupancy-licensed beds 55.7% 58.3% -4.5% Admissions 264,470 265,244 -0.3% Length of stay 4.4 4.4 -0.6% Inpatient revenue $10,890,171 $9,901,032 10.0% Outpatient revenue 4,771,070 4,100,427 16.4% Total patient revenue 15,661,241 14,001,459 11.9% Other revenue 71,004 70,879 0.2% Gross hospital revenue 15,732,245 14,072,338 11.8% Total deductions 11,830,430 10,261,510 15.3% Net hospital revenue $3,901,815 $3,810,828 2.4% SAME FACILITY: -------------- ACUTE % 12/31/10 12/31/09 change -------- -------- ------- Hospitals owned and leased 21 21 0.0% Average licensed beds 5,689 5,484 3.7% Patient days 1,155,987 1,166,704 -0.9% Average daily census 3,167.1 3,196.4 -0.9% Occupancy-licensed beds 55.7% 58.3% -4.5% Admissions 264,470 265,244 -0.3% Length of stay 4.4 4.4 -0.6% AS REPORTED: ------------ BEHAVIORAL HEALTH % 12/31/10 12/31/09 change -------- -------- ------- Hospitals owned and leased 179 84 113.1% Average licensed beds 9,427 7,921 19.0% Patient days 2,507,046 2,105,625 19.1% Average daily census 6,868.6 5,768.8 19.1% Occupancy-licensed beds 72.9% 72.8% 0.0% Admissions 166,434 136,639 21.8% Length of stay 15.1 15.4 -2.3% Inpatient revenue $2,566,366 $2,075,141 23.7% Outpatient revenue 350,192 282,473 24.0% Total patient revenue 2,916,558 2,357,614 23.7% Other revenue 46,638 31,728 47.0% Gross hospital revenue 2,963,196 2,389,342 24.0% Total deductions 1,327,741 1,074,313 23.6% Net hospital revenue $1,635,455 $1,315,029 24.4% SAME FACILITY: -------------- BEHAVIORAL HEALTH (1) % 12/31/10 12/31/09 change -------- -------- ------- Hospitals owned and leased 81 81 0.0% Average licensed beds 7,851 7,768 1.1% Patient days 2,130,870 2,094,115 1.8% Average daily census 5,838.0 5,737.3 1.8% Occupancy-licensed beds 74.4% 73.9% 0.7% Admissions 142,384 136,579 4.3% Length of stay 15.0 15.3 -2.4% (1) Ascent, Crescent Pines and the Hope program are excluded in both current and prior years. Coastal Behavioral is included in March 1st thru year to date. Centennial Peaks is included in Jul 1st thru year to date. Springwoods Behavioral is included in September 1st thru year to date. Facilities acquired in acquisition of Psychiatric Solutions are excluded in current and prior years.
Universal Health Services, Inc.
CONTACT: Steve Filton, Chief Financial Officer, +1-610-768-3300
Web Site: http://www.uhsinc.com/
