Universal Health Services, Inc. Announces 2021 First Quarter Financial Results And Plans To Return CARES Act Grants Received During First Quarter Of 2021

 

KING OF PRUSSIA, Pa., April 26, 2021 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $209.1 million, or $2.43 per diluted share, during the first quarter of 2021, as compared to $142.0 million, or $1.64 per diluted share, during the first quarter of 2020. Net revenues increased 6.5% to $3.013 billion during the first quarter of 2021 as compared to $2.830 billion during the first quarter of 2020.

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

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

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

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2021, was a net aggregate unfavorable after-tax impact of $1.1 million, or $.01 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $2.1 million, or $.02 per diluted share, ($2.8 million pre-tax which is included in "Other (income) expense, net"), resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale, and; (ii) a favorable after-tax impact of $1.1 million, or $.01 per diluted share, resulting from our adoption of ASU 2016-09, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09").

As reflected on the Supplemental Schedule, included in our reported results during the first quarter of 2020, was a net aggregate unfavorable after-tax impact of $8.1 million, or $.09 per diluted share, consisting of the following: (i) an after-tax unrealized loss of $7.4 million, or $.08 per diluted share, ($9.6 million pre-tax which is included in "Other (income) expense, net"), resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale, and; (ii) a unfavorable after-tax impact of $0.8 million, or $.01 per diluted share, resulting from our adoption of ASU 2016-09.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI", NCI is net income attributable to noncontrolling interests), was $426.3 million during the first quarter of 2021, as compared to $349.1 million during the first quarter of 2020. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $427.1 million during the first quarter of 2021 as compared to $358.7 million during the first quarter of 2020.

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

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

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

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

COVID-19

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

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

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

Liquidity:

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

Quarterly Dividend and Stock Repurchase Program:

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

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

Conference call information:

We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on April 27, 2021. The dial-in number is 1-877-648-7971. 

A live broadcast of the conference call will be available on our website at www.uhsinc.com.  Also, a replay of the call will be available following the conclusion of the live call and will be available for one full year.

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

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

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

Headquartered in King of Prussia, PA, UHS has approximately 89,000 employees and through its subsidiaries operates 26 acute care hospitals, 335 behavioral health facilities, 39 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 38 U.S. states, Washington, D.C., Puerto Rico and the United Kingdom. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT).  For additional information on the Company, visit our web site: http://www.uhsinc.com.

This press release contains forward-looking statements based on current management expectations.  Numerous factors, including those disclosed herein, those related to the anticipated impact of COVID-19 on our operations and financial results, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 1A-Risk Factors and in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2020), may cause the results to differ materially from those anticipated in the forward-looking statements.  These statements are subject to risks and uncertainties and therefore actual results may differ materially.  Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof.  We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.  Many of the factors that could affect our future results are beyond our control or ability to predict, including the impact of the COVID-19 pandemic. Our future operations and financial results will likely be materially impacted by developments related to COVID-19 including, but not limited to, the length of time and severity of the spread of the pandemic; the volume of cancelled or rescheduled elective procedures and the volume of COVID-19 patients treated at our hospitals and other healthcare facilities; measures we are taking to respond to the COVID-19 pandemic; the impact of government and administrative regulation and stimulus on the hospital industry and potential retrospective adjustment in future periods of CARES Act and other grant income revenues recorded as revenues in prior periods; declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions (including increases in uninsured and underinsured patients as the result of business closings and layoffs); potential disruptions to our clinical staffing and shortages and disruptions related to supplies required for our employees and patients; and potential increases to expenses related to staffing, supply chain or other expenditures; the impact of our substantial indebtedness and the ability to refinance such indebtedness on acceptable terms, as well as risks associated with disruptions in the financial markets and the business of financial institutions as the result of the COVID-19 pandemic which could impact us from a financing perspective; and changes in general economic conditions nationally and regionally in our markets resulting from the COVID-19 pandemic. We are not able to fully quantify the impact that these factors will have on our future financial results, but expect developments related to the COVID-19 pandemic to materially affect our financial performance in 2021.

We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, our adoption of ASU 2016-09, unrealized gains/losses resulting from changes in the market value of shares of certain marketable securities held for investment and classified as available for sale, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of long-lived and intangible assets, changes in the reserve established in connection with our discussions with the Department of Justice, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2020. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance.

 

Universal Health Services, Inc.

Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

       
 

Three months

 

ended March 31,

 

2021

 

2020

       

Net revenues

$3,012,987

 

$2,829,667

       

Operating charges:

     

   Salaries, wages and benefits

1,497,773

 

1,432,669

   Other operating expenses

709,708

 

689,790

   Supplies expense

347,110

 

317,827

   Depreciation and amortization

131,403

 

124,394

   Lease and rental expense

31,324

 

28,293

 

2,717,318

 

2,592,973

       

Income from operations

295,669

 

236,694

       

Interest expense, net

21,957

 

36,351

Other (income) expense, net

835

 

9,560

       

Income before income taxes

272,877

 

190,783

       

Provision for income taxes

63,807

 

46,323

       

Net income

209,070

 

144,460

       

Less:  Net income attributable to

     

noncontrolling interests ("NCI")

(21)

 

2,423

       

Net income attributable to UHS

$209,091

 

$142,037

       
       
       
       
       
       

Basic earnings per share attributable to UHS (a)

$2.46

 

$1.64

       

Diluted earnings per share attributable to UHS (a)

$2.43

 

$1.64

 

 

Universal Health Services, Inc.

Footnotes to Consolidated Statements of Income

(in thousands, except per share amounts)

(unaudited)

       
 

Three months

(a) Earnings per share calculation:

ended March 31,

 

2021

 

2020

Basic and diluted:

     

Net income attributable to UHS

$209,091

 

$142,037

Less: Net income attributable to unvested restricted share grants

(552)

 

(373)

Net income attributable to UHS - basic and diluted

$208,539

 

$141,664

       

Weighted average number of common shares - basic

84,782

 

86,212

       

Basic earnings per share attributable to UHS:

$2.46

 

$1.64

       

Weighted average number of common shares

84,782

 

86,212

Add: Other share equivalents

1,014

 

243

Weighted average number of common shares and equiv. - diluted

85,796

 

86,455

       

Diluted earnings per share attributable to UHS:

$2.43

 

$1.64

 

 

Universal Health Services, Inc.

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

For the Three Months ended March 31, 2021 and 2020

(in thousands, except per share amounts)

(unaudited)

               
               
               

Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA/Adjusted EBITDA net of NCI")

               
 

Three months ended

 

% Net

 

Three months ended

 

% Net

 

March 31, 2021

 

revenues

 

March 31, 2020

 

revenues

               

Net income attributable to UHS

$209,091

     

$142,037

   

   Depreciation and amortization

131,403

     

124,394

   

   Interest expense, net

21,957

     

36,351

   

   Provision for income taxes

63,807

     

46,323

   

EBITDA net of NCI

$426,258

 

14.1%

 

$349,105

 

12.3%

               

Other (income) expense, net

835

     

9,560

   

Adjusted EBITDA net of NCI

$427,093

 

14.2%

 

$358,665

 

12.7%

               

Net revenues

$3,012,987

     

$2,829,667

   
               
               
               
               
               

Calculation of Adjusted Net Income Attributable to UHS

               
 

Three months ended

 

Three months ended

 

March 31, 2021

 

March 31, 2020

     

Per

     

Per

 

Amount

 

Diluted Share

 

Amount

 

Diluted Share

               

Net income attributable to UHS

$209,091

 

$2.43

 

$142,037

 

$1.64

Plus/minus after-tax adjustments:

             

Unrealized loss on marketable securities held for sale

2,137

 

0.02

 

7,350

 

0.08

Impact of ASU 2016-09

(1,079)

 

(0.01)

 

770

 

0.01

Subtotal adjustments

1,058

 

0.01

 

8,120

 

0.09

Adjusted net income attributable to UHS

$210,149

 

$2.44

 

$150,157

 

$1.73

 

 

Universal Health Services, Inc.

Consolidated Statements of Comprehensive Income

(in thousands)

(unaudited)

       
 

Three months

 

ended March 31,

 

2021

 

2020

       

Net income

$209,070

 

$144,460

Other comprehensive income (loss):

     

   Foreign currency translation adjustment

(10,346)

 

(39,201)

Other comprehensive income (loss) before tax

(10,346)

 

(39,201)

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

(1,466)

 

(2,108)

Total other comprehensive income (loss), net of tax

(8,880)

 

(37,093)

       

Comprehensive income

200,190

 

107,367

Less: Comprehensive income (loss) attributable to noncontrolling interests

(21)

 

2,423

Comprehensive income attributable to UHS

$200,211

 

$104,944

 

 

Universal Health Services, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

             
     

March 31,

   

December 31,

     

2021

   

2020

Assets

           

Current assets:

           

    Cash and cash equivalents

 

$

764,502

 

$

1,224,490

    Accounts receivable, net

   

1,668,650

   

1,728,928

    Supplies

   

193,961

   

190,417

    Other current assets

   

157,052

   

138,034

          Total current assets

   

2,784,165

   

3,281,869

             

Property and equipment

   

10,119,037

   

9,885,888

Less: accumulated depreciation

   

(4,623,435)

   

(4,512,764)

     

5,495,602

   

5,373,124

             

Other assets:

           

    Goodwill

   

3,886,973

   

3,882,715

    Deferred income taxes

   

23,514

   

22,689

    Right of use assets-operating leases

   

326,703

   

336,513

    Deferred charges

   

4,782

   

4,985

    Other

   

574,590

   

574,984

Total Assets

 

$

13,096,329

 

$

13,476,879

             

Liabilities and Stockholders' Equity

           

Current liabilities:

           

    Current maturities of long-term debt

 

$

107,281

 

$

331,998

    Accounts payable and other liabilities

   

1,779,700

   

1,668,671

    Medicare accelerated payments and deferred CARES Act and other grants

 

189,320

   

376,151

    Operating lease liabilities

   

60,812

   

59,796

    Federal and state taxes

   

102,266

   

44,423

          Total current liabilities

   

2,239,379

   

2,481,039

             

Other noncurrent liabilities

   

476,377

   

458,549

Operating lease liabilities noncurrent

   

267,707

   

278,303

Medicare accelerated payments noncurrent

   

0

   

322,617

Long-term debt

   

3,505,822

   

3,524,253

Deferred income taxes

   

735

   

5,582

             

Redeemable noncontrolling interest

   

4,470

   

4,569

             

UHS common stockholders' equity

   

6,513,862

   

6,317,146

Noncontrolling interest

   

87,977

   

84,821

          Total equity

   

6,601,839

   

6,401,967

             

Total Liabilities and Stockholders' Equity

 

$

13,096,329

 

$

13,476,879

 

 

Universal Health Services, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Three months

 

ended March 31,

 

2021

 

2020

       

Cash Flows from Operating Activities:

     

  Net income

$209,070

 

$144,460

  Adjustments to reconcile net income to net 

     

cash provided by operating activities:

     

Depreciation & amortization

131,403

 

124,394

Stock-based compensation expense

18,022

 

18,047

  Changes in assets & liabilities, net of effects from

     

acquisitions and dispositions:

     

   Accounts receivable

56,851

 

69,763

   Accrued interest

10,133

 

(4,412)

   Accrued and deferred income taxes 

53,769

 

45,200

   Other working capital accounts 

82,663

 

73,929

   Medicare accelerated payments and deferred CARES Act and other grants

(509,448)

 

0

   Other assets and deferred charges

(17)

 

11,084

   Other 

2,623

 

(3,038)

   Accrued insurance expense, net of commercial premiums paid

35,467

 

49,559

   Payments made in settlement of self-insurance claims

(18,741)

 

(26,924)

          Net cash provided by operating activities

71,795

 

502,062

       

Cash Flows from Investing Activities:

     

   Property and equipment additions, net of disposals

(247,459)

 

(184,102)

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

(14,264)

 

51,691

   Decrease in capital reserves of commercial insurance subsidiary 

100

 

0

   Costs incurred for purchase and implementation of information technology applications

(575)

 

(1,857)

   Investment in, and advances to,  joint ventures and other

(129)

 

(751)

          Net cash used in investing activities

(262,327)

 

(135,019)

       

Cash Flows from Financing Activities:

     

   Reduction of long-term debt

(251,830)

 

(185,098)

   Additional borrowings

0

 

5,453

   Repurchase of common shares

(7,464)

 

(172,092)

   Dividends paid

(17,018)

 

(17,344)

   Issuance of common stock

3,357

 

3,002

   Profit distributions to noncontrolling interests

(4,525)

 

(5,735)

   Purchase of ownership interests by minority members

7,603

 

0

          Net cash used in financing activities

(269,877)

 

(371,814)

       

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

423

 

(1,673)

Decrease in cash, cash equivalents and restricted cash

(459,986)

 

(6,444)

Cash, cash equivalents and restricted cash, beginning of period

1,279,154

 

105,667

Cash, cash equivalents and restricted cash, end of period

$819,168

 

$99,223

       

Supplemental Disclosures of Cash Flow Information:

     

  Interest paid

$11,421

 

$39,483

       

  Income taxes paid, net of refunds

$8,654

 

$6,783

       

  Noncash purchases of property and equipment

$60,124

 

$58,935

 

 

Universal Health Services, Inc.

Supplemental Statistical Information

(unaudited)

           
           
         

 % Change 

         

3 Months ended

Same Facility:

       

3/31/2021

           

Acute Care Hospitals

         

Revenues

       

11.7%

Adjusted Admissions

       

-12.1%

Adjusted Patient Days

       

-0.7%

Revenue Per Adjusted Admission

       

26.3%

Revenue Per Adjusted Patient Day

       

11.8%

           
           

Behavioral Health Hospitals

         

Revenues

       

0.9%

Adjusted Admissions

       

-4.9%

Adjusted Patient Days

       

-3.8%

Revenue Per Adjusted Admission

       

6.2%

Revenue Per Adjusted Patient Day

       

4.9%

           
           
           

UHS Consolidated

   

Three months ended

     

3/31/2021

 

3/31/2020

           

Revenues

   

$3,012,987

 

$2,829,667

EBITDA net of NCI

   

$426,258

 

$349,105

EBITDA Margin net of NCI

   

14.1%

 

12.3%

Adjusted EBITDA net of NCI

   

$427,093

 

$358,665

Adjusted EBITDA Margin net of NCI

 

14.2%

 

12.7%

           

Cash Flow From Operations

   

$71,795

 

$502,062

Days Sales Outstanding

   

50

 

48

Capital Expenditures  

   

$247,459

 

$184,102

           

Debt 

   

$3,613,103

 

$3,805,320

UHS' Shareholders Equity

   

$6,513,862

 

$5,413,209

Debt / Total Capitalization

   

35.7%

 

41.3%

Debt / EBITDA net of NCI (1)

   

1.87

 

2.37

Debt / Adjusted EBITDA net of NCI (1)

 

1.87

 

2.23

Debt / Cash From Operations (1)

   

1.87

 

2.52

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

 

1.48

   

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

 

1.48

   

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

 

1.48

   
           

(1) Latest 4 quarters.

         

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

 

 

Universal Health Services, Inc.

Acute Care Hospital Services

For the three months ended

March 31, 2021 and 2020

(in thousands)

                 
                 

Same Facility Basis - Acute Care Hospital Services

               
                 
   

Three months ended

 

Three months ended

   

March 31, 2021

 

March 31, 2020

   

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

Net revenues

 

$1,671,836

 

100.0%

 

$1,497,123

 

100.0%

Operating charges:

               

Salaries, wages and benefits

 

706,811

 

42.3%

 

658,929

 

44.0%

Other operating expenses

 

393,207

 

23.5%

 

375,531

 

25.1%

Supplies expense

 

296,478

 

17.7%

 

264,530

 

17.7%

Depreciation and amortization

 

81,184

 

4.9%

 

77,928

 

5.2%

Lease and rental expense

 

20,112

 

1.2%

 

16,020

 

1.1%

Subtotal-operating expenses

 

1,497,792

 

89.6%

 

1,392,938

 

93.0%

Income from operations

 

174,044

 

10.4%

 

104,185

 

7.0%

Interest expense, net

 

246

 

0.0%

 

618

 

0.0%

Other (income) expense, net

 

0

 

-

 

0

 

-

Income before income taxes

 

$173,798

 

10.4%

 

$103,567

 

6.9%

                 
                 
                 

All Acute Care Hospital Services

               
                 
   

Three months ended

 

Three months ended

   

March 31, 2021

 

March 31, 2020

   

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

Net revenues

 

$1,694,542

 

100.0%

 

$1,521,049

 

100.0%

Operating charges:

               

Salaries, wages and benefits

 

707,218

 

41.7%

 

658,959

 

43.3%

Other operating expenses

 

416,007

 

24.5%

 

399,457

 

26.3%

Supplies expense

 

296,479

 

17.5%

 

264,530

 

17.4%

Depreciation and amortization

 

81,362

 

4.8%

 

77,928

 

5.1%

Lease and rental expense

 

20,112

 

1.2%

 

16,020

 

1.1%

Subtotal-operating expenses

 

1,521,178

 

89.8%

 

1,416,894

 

93.2%

Income from operations

 

173,364

 

10.2%

 

104,155

 

6.8%

Interest expense, net

 

246

 

0.0%

 

618

 

0.0%

Other (income) expense, net

 

0

 

-

 

0

 

-

Income before income taxes

 

$173,118

 

10.2%

 

$103,537

 

6.8%

 

 

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2020.

                         

The All Acute Care Hospital Servicestable summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months.

 

 

Universal Health Services, Inc.

Behavioral Health Care Services

For the three months ended

March 31, 2021 and 2020

(in thousands)

                 
                 

Same Facility - Behavioral Health Care Services

               
                 
   

Three months ended

 

Three months ended

   

March 31, 2021

 

March 31, 2020

   

Amount

 

% of Net
Revenues 

 

Amount

 

% of Net
Revenues 

Net revenues

 

$1,292,042

 

100.0%

 

$1,281,052

 

100.0%

Operating charges:

               

Salaries, wages and benefits

 

701,567

 

54.3%

 

690,375

 

53.9%

Other operating expenses

 

245,373

 

19.0%

 

242,366

 

18.9%

Supplies expense

 

50,746

 

3.9%

 

51,561

 

4.0%

Depreciation and amortization

 

45,302

 

3.5%

 

42,715

 

3.3%

Lease and rental expense

 

11,274

 

0.9%

 

11,020

 

0.9%

Subtotal-operating expenses

 

1,054,262

 

81.6%

 

1,038,037

 

81.0%

Income from operations

 

237,780

 

18.4%

 

243,015

 

19.0%

Interest expense, net

 

338

 

0.0%

 

364

 

0.0%

Other (income) expense, net

 

413

 

0.0%

 

889

 

0.1%

Income before income taxes

 

$237,029

 

18.3%

 

$241,762

 

18.9%

                 
                 
                 

All Behavioral Health Care Services

               
                 
   

Three months ended

 

Three months ended

   

March 31, 2021

 

March 31, 2020

   

Amount

 

% of Net
Revenues

 

Amount

 

% of Net
Revenues 

Net revenues

 

$1,315,337

 

100.0%

 

$1,306,109

 

100.0%

Operating charges:

               

Salaries, wages and benefits

 

703,975

 

53.5%

 

693,272

 

53.1%

Other operating expenses

 

269,297

 

20.5%

 

266,182

 

20.4%

Supplies expense

 

51,009

 

3.9%

 

51,639

 

4.0%

Depreciation and amortization

 

46,482

 

3.5%

 

43,889

 

3.4%

Lease and rental expense

 

11,683

 

0.9%

 

12,158

 

0.9%

Subtotal-operating expenses

 

1,082,446

 

82.3%

 

1,067,140

 

81.7%

Income from operations

 

232,891

 

17.7%

 

238,969

 

18.3%

Interest expense, net

 

1,153

 

0.1%

 

397

 

0.0%

Other (income) expense, net

 

413

 

0.0%

 

889

 

0.1%

Income before income taxes

 

$231,325

 

17.6%

 

$237,683

 

18.2%

 

 

We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments, lawsuits and reserves established in connection with the government's investigation of our behavioral health care facilities, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and in the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2020.

                         

The All Behavioral Health Care Servicestable summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months as well as the results of certain facilities that were closed or restructured during the past year.

 

 

Universal Health Services, Inc.

Selected Hospital Statistics

For the Three Months ended

March 31, 2021 and 2020

                         
                         

AS REPORTED:

                       
                         
                         
   

ACUTE

 

BEHAVIORAL HEALTH

   

3/31/21

 

3/31/20

 

%  change

 

3/31/21

 

3/31/20

 

%  change

                         

Hospitals owned and leased

 

26

 

26

 

0.0%

 

335

 

331

 

0.9%

Average licensed beds

 

6,515

 

6,451

 

1.0%

 

24,018

 

23,634

 

1.6%

Average available beds

 

6,343

 

6,279

 

1.0%

 

23,918

 

23,531

 

1.6%

Patient days

 

392,391

 

370,513

 

5.9%

 

1,534,162

 

1,592,611

 

-3.7%

Average daily census

 

4,359.9

 

4,071.7

 

7.1%

 

17,046.2

 

17,501.2

 

-2.6%

Occupancy-licensed beds

 

66.9%

 

63.1%

 

6.0%

 

71.0%

 

74.1%

 

-4.2%

Occupancy-available beds

 

68.7%

 

64.8%

 

6.0%

 

71.3%

 

74.4%

 

-4.2%

Admissions

 

72,924

 

77,768

 

-6.2%

 

115,408

 

121,017

 

-4.6%

Length of stay

 

5.4

 

4.8

 

12.9%

 

13.3

 

13.2

 

1.0%

                         

Inpatient revenue

 

$9,119,184

 

$7,821,472

 

16.6%

 

$2,473,565

 

$2,525,539

 

-2.1%

Outpatient revenue

 

4,580,720

 

4,681,741

 

-2.2%

 

246,764

 

259,739

 

-5.0%

Total patient revenue

 

13,699,904

 

12,503,213

 

9.6%

 

2,720,329

 

2,785,278

 

-2.3%

Other revenue

 

143,265

 

116,278

 

23.2%

 

62,208

 

56,390

 

10.3%

Gross hospital revenue

 

13,843,169

 

12,619,491

 

9.7%

 

2,782,537

 

2,841,668

 

-2.1%

Total deductions

 

12,148,627

 

11,098,442

 

9.5%

 

1,467,200

 

1,535,559

 

-4.5%

Net hospital revenue 

 

$1,694,542

 

$1,521,049

 

11.4%

 

$1,315,337

 

$1,306,109

 

0.7%

                         
                         

SAME FACILITY:

                       
                         
   

ACUTE

 

BEHAVIORAL HEALTH

   

3/31/21

 

3/31/20

 

%  change

 

3/31/21

 

3/31/20

 

%  change

                         

Hospitals owned and leased

 

26

 

26

 

0.0%

 

319

 

319

 

0.0%

Average licensed beds

 

6,515

 

6,451

 

1.0%

 

23,689

 

23,397

 

1.2%

Average available beds

 

6,343

 

6,279

 

1.0%

 

23,589

 

23,294

 

1.3%

Patient days

 

392,391

 

370,513

 

5.9%

 

1,525,725

 

1,582,445

 

-3.6%

Average daily census

 

4,359.9

 

4,071.7

 

7.1%

 

16,952.5

 

17,389.5

 

-2.5%

Occupancy-licensed beds

 

66.9%

 

63.1%

 

6.0%

 

71.6%

 

74.3%

 

-3.7%

Occupancy-available beds

 

68.7%

 

64.8%

 

6.0%

 

71.9%

 

74.7%

 

-3.7%

Admissions

 

72,924

 

77,768

 

-6.2%

 

114,426

 

120,082

 

-4.7%

Length of stay

 

5.4

 

4.8

 

12.9%

 

13.3

 

13.2

 

1.2%

 

 

Cision View original content:http://www.prnewswire.com/news-releases/universal-health-services-inc-announces-2021-first-quarter-financial-results-and-plans-to-return-cares-act-grants-received-during-first-quarter-of-2021-301277060.html

SOURCE Universal Health Services, Inc.

 
 
Company Codes: NYSE:UHS
 

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