Universal Health Services, Inc. Reports Third Quarter EPS Growth Of 35%
10/17/2002
The Company's hospitals are achieving industry leading growth rates in patient admissions due to the Company's location in rapid growth communities and continuing investment in modern technology. For facilities owned in both the three month periods ended September 30, 2002 and September 30, 2001 admissions to the Company's acute care hospitals, excluding the hospitals located in France, increased 7.9% while admissions to the Company's behavioral health facilities owned in both periods increased 6.4%.
The Company is expanding its hospitals to meet the growing demand for high quality healthcare. Between September 1, 2002 and December 31, 2003 the Company expects to increase the number of available hospital beds in its acute care hospitals by 12% due to five major construction projects.
During the quarter ended September 30, 2002, the Company opened the newly constructed 371-George Washington University Hospital. This hospital has experienced solid growth in admissions and revenue as physicians and patients are increasingly choosing this new, technologically advanced hospital. The Company currently has four other major acute care hospital construction projects. The 56-bed addition to Auburn Regional Medical Center will open in late December. The new 176-bed Spring Valley Medical Center in Las Vegas will open in the third quarter of 2003. The 90-bed expansion of Northwest Texas Hospital in Amarillo, Texas, and the new 120-bed Lakewood Ranch Hospital in Manatee County, Florida, will open in the fourth quarter of 2003. These projects will provide needed service capacity and quality of care improvements and be significant sources of growth for the Company.
Universal Health Services, Inc. is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory surgery and radiation centers nationwide, in Puerto Rico and in France. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT).
Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filings with Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes.
For additional information on the Company, visit our web site: http://www.uhsinc.com.
Universal Health Services, Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
Three months Nine months
ended September 30, ended September 30,
2002 2001 2002 2001
Net revenues $813,104 $720,784 $2,423,420 $2,116,329
Operating charges:
Salaries, wages and
benefits 323,331 282,225 964,633 832,785
Other operating expenses 196,007 167,958 586,199 488,740
Supplies expense 106,382 94,275 313,747 276,622
Provision for doubtful
accounts 62,590 68,682 173,329 186,587
Depreciation and
amortization 30,136 32,587 90,444 94,630
Lease and rental expense 15,609 13,884 46,089 39,994
Interest expense, net 8,381 9,846 25,498 28,808
742,436 669,457 2,199,939 1,948,166
Income before minority
interests, effect of foreign
exchange and derivative
transactions and income
taxes 70,668 51,327 223,481 168,163
Minority interests in earnings
of consolidated entities 4,924 3,700 15,485 11,324
Losses on foreign exchange and
derivative transactions 255 108 270 1,509
Income before income taxes 65,489 47,519 207,726 155,330
Provision for income taxes 24,038 17,265 76,255 56,515
Net income $41,451 $30,254 $131,471 $98,815
Earnings per common share -
basic $0.69 $0.50 $2.20 $1.65
Earnings per common share -
diluted $0.65 $0.48 $2.05 $1.56
Weighted average number of
common shares - basic 59,883 59,921 59,893 59,889
Weighted average number of
common share equivalents 7,292 7,496 7,266 7,373
Weighted average number of
common shares and equiv. -
diluted 67,175 67,417 67,159 67,262
EARNINGS PER SHARE CALCULATION
Net income $41,451 $30,254 $131,471 $98,815
Add: Debenture interest, net
of taxes 2,134 2,051 6,317 6,070
Adjusted net income $43,585 $32,305 $137,788 $104,885
Weighted average number of
common shares - basic 59,883 59,921 59,893 59,889
Add: Shares for conversion of
convertible debentures 6,578 6,578 6,578 6,578
Other share
equivalents 714 918 688 795
Weighted average number of
common shares and equiv. -
diluted 67,175 67,417 67,159 67,262
Earnings per common share -
diluted $0.65 $0.48 $2.05 $1.56
Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2002 2001
Assets:
Cash and cash equivalents $15,794 $22,848
Accounts receivable, net 472,316 418,083
Other current assets 114,743 107,331
Property, plant and equipment, net 1,154,252 1,031,205
Other assets 498,844 535,117
$2,255,949 $2,114,584
Liabilities and Stockholders'
Equity:
Current portion of long-term debt $3,495 $2,436
Other current liabilities 357,577 320,280
Other noncurrent liabilities 130,087 110,385
Minority interest 133,303 125,914
Long-term debt 658,065 718,830
Deferred income taxes 26,501 28,839
Stockholders' equity 946,921 807,900
$2,255,949 $2,114,584
Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
% Change % Change
Quarter Ended 9 mos. ended
Same Store: 09/30/2002 09/30/2002
Acute Care Hospitals
Revenues 8.7% 9.4%
Adjusted Admissions 7.1% 4.3%
Adjusted Patient Days 5.5% 4.0%
Revenue Per Adjusted Admission 1.5% 4.8%
Revenue Per Adjusted Patient Day 3.0% 5.2%
Behavioral Health Hospitals
Revenues 6.8% 4.9%
Adjusted Admissions 5.8% 6.8%
Adjusted Patient Days 3.9% 4.8%
Revenue Per Adjusted Admission 1.0% -1.8%
Revenue Per Adjusted Patient Day 2.7% 0.1%
UHS Consolidated Quarter Ended Nine months Ended
09/30/2002 09/30/2001 09/30/2002 09/30/2001
Revenues $813,104 $720,784 $2,423,420 $2,116,329
EBITDA (1) $104,261 $90,060 $323,938 $280,277
EBITDA Margin (1) 12.8% 12.5% 13.4% 13.2%
Cash Flow From
Operations $111,115 $100,610 $245,181 $253,411
Days Sales Outstanding 53 52 53 52
Capital Expenditures $59,532 $42,137 $156,684 $111,545
Debt (net of cash) - - $645,766 $600,540
Shareholders Equity - - $946,921 $799,212
Debt / Total Capitalization - - 40.5% 42.9%
Debt / EBITDA (2) - - 1.56 1.69
Debt / Cash From
Operations (2) - - 2.23 2.15
Acute Care EBITDAR
Margin (3) 16.6% 16.8% 17.2% 17.9%
Behavioral Health EBITDAR
Margin (3) 19.2% 18.2% 20.0% 19.5%
(1) Net of Minority Interest
(2) Latest 4 quarters
(3) Before Corporate overhead allocation and minority interest
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
SEPTEMBER 30, 2002
AS REPORTED:
FOR THE THREE MONTHS ENDED
ACUTE (1) BEHAVIORAL HEALTH
9/30/02 9/30/01 % 9/30/02 9/30/01 %
Hospitals owned
and leased 25 24 4.2% 37 37 0.0%
Average licensed
beds 5,846 5,589 4.6% 3,749 3,744 0.1%
Patient days 304,497 275,838 10.4% 253,190 241,234 5.0%
Average daily
census 3,309.8 2,998.2 10.4% 2,752.1 2,622.1 5.0%
Occupancy-licensed
beds 56.6% 53.6% 5.5% 73.4% 70.0% 4.8%
Admissions 66,401 58,889 12.8% 21,542 20,251 6.4%
Length of stay 4.6 4.7 -2.1% 11.8 11.9 -1.3%
Inpatient
revenue $1,270,856 $983,820 29.2% $247,693 $229,746 7.8%
Outpatient
revenue 458,549 356,669 28.6% 34,420 33,787 1.9%
Total patient
revenue 1,729,405 1,340,489 29.0% 282,113 263,533 7.1%
Other revenue 13,341 14,573 -8.5% 8,861 9,517 -6.9%
Gross hospital
revenue 1,742,746 1,355,062 28.6% 290,974 273,050 6.6%
Total
deductions 1,111,934 801,188 38.8% 150,576 139,271 8.1%
Net hospital
revenue $630,812 $553,874 13.9% $140,398 $133,779 4.9%
SAME STORE:
FOR THE THREE MONTHS ENDED
ACUTE (1)(2) BEHAVIORAL HEALTH (3)
9/30/02 9/30/01 % 9/30/02 9/30/01 %
Hospitals owned
and leased 23 24 -4.2% 37 37 0.0%
Average licensed
beds 5,579 5,589 -0.2% 3,749 3,744 0.1%
Patient days 291,603 275,834 5.7% 253,193 241,224 5.0%
Average daily
census 3,169.6 2,998.2 5.7% 2,752.1 2,622.0 5.0%
Occupancy-
licensed beds 56.8% 53.6% 5.9% 73.4% 70.0% 4.8%
Admissions 63,524 58,889 7.9% 21,542 20,251 6.4%
Length of stay 4.6 4.7 -2.0% 11.8 11.9 -1.3%
(1) Does not include hospitals located in France.
(2) Central Montgomery and Lancaster are excluded in both current and
prior years. Rancho Springs is included in the current and prior
year totals from February 1st through year to date. Inland Valley
and Rancho Springs merged to become one entity called Southwest
Health Care effective July 1, 2002.
(3) Pembroke, San Juan Capestrano and Westwood Lodge are included in
current and prior years from February 1st through year to date.
UNIVERSAL HEALTH SERVICES, INC.
SELECTED HOSPITAL STATISTICS
SEPTEMBER 30, 2002
AS REPORTED:
FOR THE NINE MONTHS ENDED
ACUTE (1) BEHAVIORAL HEALTH
9/30/02 9/30/01 % 9/30/02 9/30/01 %
Hospitals owned
and leased 25 24 4.2% 37 37 0.0%
Average
licensed
beds 5,846 5,487 6.5% 3,749 3,726 0.6%
Patient
days 928,562 842,205 10.3% 757,174 718,329 5.4%
Average daily
census 3,401.3 3,085.0 10.3% 2,773.5 2,631.2 5.4%
Occupancy-
licensed
beds 58.2% 56.2% 3.5% 74.0% 70.6% 4.8%
Admissions 198,866 178,005 11.7% 63,969 59,759 7.0%
Length of
stay 4.7 4.7 -1.3% 11.8 12.0 -1.5%
Inpatient
revenue $3,799,360 $2,995,353 26.8% $738,327 $690,261 7.0%
Outpatient
revenue 1,339,967 1,061,926 26.2% 112,170 107,922 3.9%
Total
patient
revenue 5,139,327 4,057,279 26.7% 850,497 798,183 6.6%
Other
revenue 44,744 42,059 6.4% 28,098 29,683 -5.3%
Gross
hospital
revenue 5,184,071 4,099,338 26.5% 878,595 827,866 6.1%
Total
deduc-
tions 3,308,943 2,469,679 34.0% 452,653 421,356 7.4%
Net hospital
revenue $1,875,128 $1,629,659 15.1% $425,942 $406,510 4.8%
SAME STORE:
FOR THE NINE MONTHS ENDED
ACUTE (1)(2) BEHAVIORAL HEALTH (3)
9/30/02 9/30/01 % 9/30/02 9/30/01 %
Hospitals owned
and leased 23 24 -4.2% 37 37 0.0%
Average licensed
beds 5,568 5,476 1.7% 3,711 3,700 0.3%
Patient days 886,185 841,331 5.3% 749,249 716,707 4.5%
Average daily
census 3,246.1 3,081.8 5.3% 2,744.5 2,625.3 4.5%
Occupancy-
licensed beds 58.3% 56.3% 3.6% 74.0% 71.0% 4.2%
Admissions 189,387 177,680 6.6% 63,266 59,659 6.0%
Length of stay 4.7 4.7 -1.2% 11.8 12.0 -1.4%
(1) Does not include hospitals located in France.
(2) Central Montgomery and Lancaster are excluded in both current and
prior years. Rancho Springs is included in the current and prior
year totals from February 1st through year to date. Inland Valley
and Rancho Springs merged to become one entity called Southwest
Health Care effective July 1, 2002.
(3) Pembroke, San Juan Capestrano and Westwood Lodge are included in
current and prior years from February 1st through year to date.
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SOURCE Universal Health Services, Inc.
CONTACT: Kirk E. Gorman, Chief Financial Officer of Universal Health
Services, +1-610-768-3300
/Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/916225.html
URL: http://www.uhsinc.com
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