UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES 2023 THIRD QUARTER FINANCIAL RESULTS
Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended September 30, 2023 and 2022:
KING OF PRUSSIA, Pa., Oct. 25, 2023 /PRNewswire/ — Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $167.0 million, or $2.40 per diluted share, during the third quarter of 2023, as compared to $182.8 million, or $2.50 per diluted share, during the third quarter of 2022. Net revenues increased by 6.8% to $3.563 billion during the third quarter of 2023, as compared to $3.336 billion during the third quarter of 2022.
As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the third quarter of 2023 was $177.5 million, or $2.55 per diluted share, as compared to $185.8 million, or $2.54 per diluted share, during the third quarter of 2022. As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $10.5 million, or $.15 per diluted share ($13.8 million pre-tax), during the third quarter of 2023, and $3.0 million, or $.04 per diluted share ($3.9 million pre-tax) during the third quarter of 2022. These unrealized losses, which are included in “Other (income) expense, net”, resulted from decreases in the market value of certain equity securities.
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 $410.1 million during the third quarter of 2023, as compared to $421.7 million during the third quarter of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $421.5 million during the third quarter of 2023, as compared to $427.8 million during the third quarter of 2022.
Consolidated Results of Operations, As Reported and As Adjusted – Nine-month periods ended September 30, 2023 and 2022:
Reported net income attributable to UHS was $501.4 million, or $7.09 per diluted share, during the first nine months of 2023, as compared to $500.8 million, or $6.71 per diluted share, during the first nine months 2022. Net revenues increased by 6.3% to $10.578 billion during the first nine months of 2023, as compared to $9.952 billion during the comparable period of 2022.
As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first nine months of 2023, was $524.5 million, or $7.42 per diluted share, as compared to $513.1 million, or $6.88 per diluted share, during the nine-month period ended September 30, 2022.
As reflected on the Supplemental Schedule, included in our reported results were unrealized after-tax losses of $23.0 million, or $.33 per diluted share, ($30.1 million pre-tax) during the first nine months of 2023 and $12.4 million, or $.17 per diluted share, ($16.1 million pre-tax) during the first nine months of 2022. These unrealized losses, which are included in “Other (income) expense, net”, resulted from decreases in the market value of certain equity securities.
As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization (“EBITDA net of NCI”), was $1.237 billion during the first nine months of 2023, as compared to $1.175 billion during the first nine months of 2022. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $1.268 billion during the first nine months of 2023, as compared to $1.190 billion during the comparable period of 2022.
Acute Care Services – Three and nine-month periods ended September 30, 2023 and 2022:
During the third quarter of 2023, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 6.8% while adjusted patient days increased by 3.8%, as compared to the third quarter of 2022. At these facilities, during the third quarter of 2023, net revenue per adjusted admission increased by 0.4% while net revenue per adjusted patient day increased by 3.3%, as compared to the third quarter of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 7.5% during the third quarter of 2023, as compared to the third quarter of 2022.
During the nine-month period ended September 30, 2023, at our acute care hospitals on a same facility basis, adjusted admissions increased by 8.3% while adjusted patient days increased by 4.8%, as compared to the first nine months of 2022. At these facilities, during the first nine months of 2023, net revenue per adjusted admission decreased by 2.0% while net revenue per adjusted patient day increased by 1.3%, as compared to the first nine months of 2022. Net revenues generated from our acute care services, on a same facility basis, increased by 6.9% during the first nine months of 2023, as compared to the comparable period of 2022.
Behavioral Health Care Services – Three and nine-month periods ended September 30, 2023 and 2022:
During the third quarter of 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.8% while adjusted patient days increased by 1.1%, as compared to the third quarter of 2022. At these facilities, during the third quarter of 2023, net revenue per adjusted admission increased by 6.8% and net revenue per adjusted patient day increased by 6.5%, as compared to the third quarter of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.6% during the third quarter of 2023, as compared to the third quarter of 2022.
During the nine-month period ended September 30, 2023, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 3.8% while adjusted patient days increased by 2.4%, as compared to the first nine months of 2022. At these facilities, during the first nine months of 2023, net revenue per adjusted admission increased by 4.4% and net revenue per adjusted patient day increased by 5.9%, as compared to the first nine months of 2022. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 8.3% during the first nine months of 2023, as compared to the comparable period of 2022.
Net Cash Provided by Operating Activities and Liquidity:
Net Cash Provided by Operating Activities:
During the nine-month period ended September 30, 2023, our net cash provided by operating activities was $815 million as compared to $699 million during the first nine months of 2022. Included in the $117 million net increase in our net cash provided by operating activities was a favorable change of $109 million in other working capital accounts due primarily to the timing of disbursements for accrued compensation and accounts payable.
Liquidity:
As of September 30, 2023, we had $721 million of aggregate available borrowing capacity pursuant to our $1.2 billion revolving credit facility, net of outstanding borrowings and letters of credit.
Stock Repurchase Program:
As of December 31, 2022, we had an aggregate remaining repurchase authorization of approximately $947 million pursuant to our stock repurchase program. Pursuant to the terms of our stock repurchase program, 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.
During the third quarter of 2023, we have repurchased 1.32 million shares at an aggregate cost of approximately $175.1 million (approximately $133 per share) pursuant to the program. During the first nine months of 2023, we have repurchased approximately 2.73 million shares at an aggregate cost of approximately $367.2 million (approximately $135 per share) pursuant to the program.
As of September 30, 2023, we had an aggregate available repurchase authorization of approximately $580 million.
Conference call information:
We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 26, 2023. A live webcast of the call will be available on our website at www.uhs.com. To participate via telephone, please register in advance at this link.
Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call.
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 during 2022 were approximately $13.4 billion. UHS ranked #311 on the Fortune 500; and #434 on Forbes’ list of America’s Largest Public Companies. UHS was again recognized as one of the World’s Most Admired Companies by Fortune.
Our operating philosophy is as effective today as it was upon the Company’s founding in 1979, 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 93,800 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 331 inpatient behavioral health facilities, 43 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT). For additional information visit www.uhs.com.
This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to the potential 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 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended June 30, 2023 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2022), 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, but not limited to:
The nationwide shortage of nurses and other clinical staff and support personnel has been a significant operating issue facing us and other healthcare providers. In some areas, the labor scarcity is putting a strain on our resources and staff, which has required us to utilize higher‑cost temporary labor and pay premiums above standard compensation for essential workers. These factors, which had a material unfavorable impact on our results of operations during 2022, could continue to have an unfavorable material impact on our results of operations for the foreseeable future.The impact of the COVID-19 pandemic, which began in March, 2020, has had a material effect on our operations and financial results, at various times, since that time. We cannot predict if there will be future disruptions caused by the COVID‑19 pandemic.A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions. Changes to these programs, if adopted, could materially affect program payments which could materially impact our results of operations.The increase in interest rates has substantially increased our borrowings costs and reduced our ability to access the capital markets on favorable terms. Additional increases in interest rates could have a significant unfavorable impact on our future results of operations and the resulting effect on the capital markets could adversely affect our ability to carry out our strategy.
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, changes in the market value of shares of certain equity securities and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, 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-Q for the quarter ended June 30, 2023 and our Report on Form 10-K for the year ended December 31, 2022. 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
Nine months
ended September 30,
ended September 30,
2023
2022
2023
2022
Net revenues
$3,562,774
$3,336,027
$10,578,430
$9,952,390
Operating charges:
Salaries, wages and benefits
1,784,870
1,677,431
5,308,476
5,061,173
Other operating expenses
941,219
837,241
2,758,484
2,526,060
Supplies expense
378,667
366,337
1,138,950
1,092,403
Depreciation and amortization
137,195
145,874
422,560
433,508
Lease and rental expense
35,466
33,264
105,775
97,075
3,277,417
3,060,147
9,734,245
9,210,219
Income from operations
285,357
275,880
844,185
742,171
Interest expense, net
53,378
35,653
153,085
83,002
Other (income) expense, net
11,472
6,015
31,797
15,244
Income before income taxes
220,507
234,212
659,303
643,925
Provision for income taxes
52,499
57,401
159,618
157,312
Net income
168,008
176,811
499,685
486,613
Less: Net income (loss) attributable to
noncontrolling interests (“NCI”)
1,019
(6,003)
(1,732)
(14,176)
Net income attributable to UHS
$166,989
$182,814
$501,417
$500,789
Basic earnings per share attributable to UHS (a)
$2.42
$2.52
$7.18
$6.78
Diluted earnings per share attributable to UHS (a)
$2.40
$2.50
$7.09
$6.71
Universal Health Services, Inc.
Footnotes to Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
Three months
Nine months
(a) Earnings per share calculation:
ended September 30,
ended September 30,
2023
2022
2023
2022
Basic and diluted:
Net income attributable to UHS
$166,989
$182,814
$501,417
$500,789
Less: Net income attributable to unvested restricted share grants
(52)
(179)
(242)
(592)
Net income attributable to UHS – basic and diluted
$166,937
$182,635
$501,175
$500,197
Weighted average number of common shares – basic
68,867
72,595
69,825
73,769
Basic earnings per share attributable to UHS:
$2.42
$2.52
$7.18
$6.78
Weighted average number of common shares
68,867
72,595
69,825
73,769
Add: Other share equivalents
757
465
825
743
Weighted average number of common shares and equiv. – diluted
69,624
73,060
70,650
74,512
Diluted earnings per share attributable to UHS:
$2.40
$2.50
$7.09
$6.71
Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”)
For the Three Months ended September 30, 2023 and 2022
(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
September 30, 2023
revenues
September 30, 2022
revenues
Net income attributable to UHS
$166,989
$182,814
Depreciation and amortization
137,195
145,874
Interest expense, net
53,378
35,653
Provision for income taxes
52,499
57,401
EBITDA net of NCI
$410,061
11.5 %
$421,742
12.6 %
Other (income) expense, net
11,472
6,015
Adjusted EBITDA net of NCI
$421,533
11.8 %
$427,757
12.8 %
Net revenues
$3,562,774
$3,336,027
Calculation of Adjusted Net Income Attributable to UHS
Three months ended
Three months ended
September 30, 2023
September 30, 2022
Per
Per
Amount
Diluted Share
Amount
Diluted Share
Net income attributable to UHS
$166,989
$2.40
$182,814
$2.50
Plus/minus after-tax adjustments:
Unrealized loss on equity securities
10,528
0.15
2,974
0.04
Subtotal adjustments
10,528
0.15
2,974
0.04
Adjusted net income attributable to UHS
$177,517
$2.55
$185,788
$2.54
Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”)
For the Nine Months ended September 30, 2023 and 2022
(in thousands, except per share amounts)
(unaudited)
Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
(“EBITDA/Adjusted EBITDA net of NCI”)
Nine months ended
% Net
Nine months ended
% Net
September 30, 2023
revenues
September 30, 2022
revenues
Net income attributable to UHS
$501,417
$500,789
Depreciation and amortization
422,560
433,508
Interest expense, net
153,085
83,002
Provision for income taxes
159,618
157,312
EBITDA net of NCI
$1,236,680
11.7 %
$1,174,611
11.8 %
Other (income) expense, net
31,797
15,244
Adjusted EBITDA net of NCI
$1,268,477
12.0 %
$1,189,855
12.0 %
Net revenues
$10,578,430
$9,952,390
Calculation of Adjusted Net Income Attributable to UHS
Nine months ended
Nine months ended
September 30, 2023
September 30, 2022
Per
Per
Amount
Diluted Share
Amount
Diluted Share
Net income attributable to UHS
$501,417
$7.09
$500,789
$6.71
Plus/minus after-tax adjustments:
Unrealized loss on equity securities
23,040
0.33
12,358
0.17
Subtotal adjustments
23,040
0.33
12,358
0.17
Adjusted net income attributable to UHS
$524,457
$7.42
$513,147
$6.88
Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
80,768
$
102,818
Accounts receivable, net
2,234,343
2,017,722
Supplies
214,587
218,517
Other current assets
223,303
198,283
Total current assets
2,753,001
2,537,340
Property and equipment
11,610,188
11,085,852
Less: accumulated depreciation
(5,523,135)
(5,167,394)
6,087,053
5,918,458
Other assets:
Goodwill
3,912,122
3,909,456
Deferred income taxes
99,580
68,397
Right of use assets-operating leases
443,924
454,650
Deferred charges
7,062
6,264
Other
570,728
599,623
Total Assets
$
13,873,470
$
13,494,188
Liabilities and Stockholders’ Equity
Current liabilities:
Current maturities of long-term debt
$
126,555
$
81,447
Accounts payable and other liabilities
1,783,460
1,760,588
Operating lease liabilities
72,655
67,776
Federal and state taxes
7,145
4,608
Total current liabilities
1,989,815
1,914,419
Other noncurrent liabilities
587,829
487,669
Operating lease liabilities noncurrent
388,550
395,522
Long-term debt
4,796,074
4,726,533
Redeemable noncontrolling interest
4,719
4,695
UHS common stockholders’ equity
6,064,915
5,920,582
Noncontrolling interest
41,568
44,768
Total equity
6,106,483
5,965,350
Total Liabilities and Stockholders’ Equity
$
13,873,470
$
13,494,188
Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine months
ended September 30,
2023
2022
Cash Flows from Operating Activities:
Net income
$499,685
$486,613
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation & amortization
422,560
433,508
(Gain) loss on sale of assets and businesses
(6,250)
584
Stock-based compensation expense
65,702
62,741
Changes in assets & liabilities, net of effects from
acquisitions and dispositions:
Accounts receivable
(193,108)
(155,142)
Accrued interest
60
529
Accrued and deferred income taxes
(33,240)
(4,900)
Other working capital accounts
(65,062)
(173,903)
Medicare accelerated payments and deferred CARES Act and other grants
1,764
2,921
Other assets and deferred charges
48,985
22,219
Other
13,717
(23,358)
Accrued insurance expense, net of commercial premiums paid
141,414
134,908
Payments made in settlement of self-insurance claims
(80,861)
(88,001)
Net cash provided by operating activities
815,366
698,719
Cash Flows from Investing Activities:
Property and equipment additions
(536,665)
(569,555)
Proceeds received from sales of assets and businesses
23,688
12,001
Acquisition of businesses and property
(3,728)
(18,666)
(Outflows) inflows from foreign exchange contracts that hedge our net U.K. investment
(7,723)
177,214
Decrease in capital reserves of commercial insurance subsidiary
0
100
Net cash used in investing activities
(524,428)
(398,906)
Cash Flows from Financing Activities:
Repayments of long-term debt
(54,009)
(194,115)
Additional borrowings
165,000
705,321
Financing costs
(308)
(2,541)
Repurchase of common shares
(385,339)
(723,384)
Dividends paid
(41,964)
(44,192)
Issuance of common stock
9,841
10,399
Profit distributions to noncontrolling interests
(5,258)
(5,426)
(Purchase) sale of ownership interests by (from) minority members
408
(49,089)
Net cash used in financing activities
(311,629)
(303,027)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
493
(10,339)
Decrease in cash, cash equivalents and restricted cash
(20,198)
(13,553)
Cash, cash equivalents and restricted cash, beginning of period
200,837
178,934
Cash, cash equivalents and restricted cash, end of period
$180,639
$165,381
Supplemental Disclosures of Cash Flow Information:
Interest paid
$149,247
$78,992
Income taxes paid, net of refunds
$191,189
$182,091
Noncash purchases of property and equipment
$108,412
$97,264
Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
% Change
% Change
3 Months ended
9 Months ended
Same Facility:
9/30/2023
9/30/2023
Acute Care Hospitals
Revenues
7.5 %
6.9 %
Adjusted Admissions
6.8 %
8.3 %
Adjusted Patient Days
3.8 %
4.8 %
Revenue Per Adjusted Admission
0.4 %
-2.0 %
Revenue Per Adjusted Patient Day
3.3 %
1.3 %
Behavioral Health Hospitals
Revenues
7.6 %
8.3 %
Adjusted Admissions
0.8 %
3.8 %
Adjusted Patient Days
1.1 %
2.4 %
Revenue Per Adjusted Admission
6.8 %
4.4 %
Revenue Per Adjusted Patient Day
6.5 %
5.9 %
UHS Consolidated
Third Quarter Ended
Nine Months Ended
9/30/2023
9/30/2022
9/30/2023
9/30/2022
Revenues
$3,562,774
$3,336,027
$10,578,430
$9,952,390
EBITDA net of NCI
$410,061
$421,742
$1,236,680
$1,174,611
EBITDA Margin net of NCI
11.5 %
12.6 %
11.7 %
11.8 %
Adjusted EBITDA net of NCI
$421,533
$427,757
$1,268,477
$1,189,855
Adjusted EBITDA Margin net of NCI
11.8 %
12.8 %
12.0 %
12.0 %
Cash Flow From Operations
$161,665
$220,672
$815,366
$698,719
Capital Expenditures
$200,001
$161,593
$536,665
$569,555
Days Sales Outstanding
58
52
Debt
$4,922,629
$4,704,663
UHS’ Shareholders Equity
$6,064,915
$5,855,353
Debt / Total Capitalization
44.8 %
44.6 %
Debt / EBITDA net of NCI (1)
2.97
2.87
Debt / Adjusted EBITDA net of NCI (1)
2.83
2.87
Debt / Cash From Operations (1)
4.42
4.61
(1) Latest 4 quarters.
Universal Health Services, Inc.
Acute Care Hospital Services
For the Three and Nine Months ended
September 30, 2023 and 2022
(in thousands)
Same Facility Basis – Acute Care Hospital Services
Three months ended
Three months ended
Nine months ended
Nine months ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Net revenues
$1,965,856
100.0 %
$1,828,370
100.0 %
$5,808,205
100.0 %
$5,432,868
100.0 %
Operating charges:
Salaries, wages and benefits
854,215
43.5 %
801,252
43.8 %
2,493,271
42.9 %
2,412,699
44.4 %
Other operating expenses
543,707
27.7 %
478,221
26.2 %
1,584,820
27.3 %
1,382,250
25.4 %
Supplies expense
324,226
16.5 %
302,162
16.5 %
964,228
16.6 %
904,547
16.6 %
Depreciation and amortization
86,583
4.4 %
92,830
5.1 %
265,021
4.6 %
274,574
5.1 %
Lease and rental expense
24,404
1.2 %
21,847
1.2 %
71,635
1.2 %
62,756
1.2 %
Subtotal-operating expenses
1,833,135
93.2 %
1,696,312
92.8 %
5,378,975
92.6 %
5,036,826
92.7 %
Income from operations
132,721
6.8 %
132,058
7.2 %
429,230
7.4 %
396,042
7.3 %
Interest expense, net
(778)
(0.0) %
234
0.0 %
(1,858)
(0.0) %
1,350
0.0 %
Other (income) expense, net
(1,045)
(0.1) %
384
0.0 %
5,168
0.1 %
806
0.0 %
Income before income taxes
$134,544
6.8 %
$131,440
7.2 %
$425,920
7.3 %
$393,886
7.3 %
All Acute Care Hospital Services
Three months ended
Three months ended
Nine months ended
Nine months ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Net revenues
$2,017,288
100.0 %
$1,919,678
100.0 %
$5,993,899
100.0 %
$5,707,510
100.0 %
Operating charges:
Salaries, wages and benefits
854,587
42.4 %
824,942
43.0 %
2,534,878
42.3 %
2,497,888
43.8 %
Other operating expenses
596,834
29.6 %
535,463
27.9 %
1,731,750
28.9 %
1,550,044
27.2 %
Supplies expense
323,475
16.0 %
311,404
16.2 %
979,185
16.3 %
935,559
16.4 %
Depreciation and amortization
86,535
4.3 %
96,020
5.0 %
274,165
4.6 %
285,558
5.0 %
Lease and rental expense
24,440
1.2 %
21,990
1.1 %
72,629
1.2 %
63,324
1.1 %
Subtotal-operating expenses
1,885,871
93.5 %
1,789,819
93.2 %
5,592,607
93.3 %
5,332,373
93.4 %
Income from operations
131,417
6.5 %
129,859
6.8 %
401,292
6.7 %
375,137
6.6 %
Interest expense, net
(778)
(0.0) %
234
0.0 %
(1,858)
(0.0) %
1,350
0.0 %
Other (income) expense, net
(211)
(0.0) %
384
0.0 %
6,921
0.1 %
806
0.0 %
Income before income taxes
$132,406
6.6 %
$129,241
6.7 %
$396,229
6.6 %
$372,981
6.5 %
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 goodwill, 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, 2022 and Form 10-Q for the quarter ended June 30, 2023.
The All Acute Care Hospital Services table 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 and Nine Months ended
September 30, 2023 and 2022
(in thousands)
Same Facility – Behavioral Health Care Services
Three months ended
Three months ended
Nine months ended
Nine months ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Net revenues
$1,513,354
100.0 %
$1,407,039
100.0 %
$4,490,078
100.0 %
$4,144,998
100.0 %
Operating charges:
Salaries, wages and benefits
841,985
55.6 %
779,839
55.4 %
2,491,153
55.5 %
2,293,332
55.3 %
Other operating expenses
292,878
19.4 %
273,618
19.4 %
866,450
19.3 %
816,312
19.7 %
Supplies expense
55,102
3.6 %
55,466
3.9 %
161,205
3.6 %
157,457
3.8 %
Depreciation and amortization
47,484
3.1 %
46,487
3.3 %
139,039
3.1 %
137,249
3.3 %
Lease and rental expense
10,857
0.7 %
10,586
0.8 %
32,642
0.7 %
31,262
0.8 %
Subtotal-operating expenses
1,248,306
82.5 %
1,165,996
82.9 %
3,690,489
82.2 %
3,435,612
82.9 %
Income from operations
265,048
17.5 %
241,043
17.1 %
799,589
17.8 %
709,386
17.1 %
Interest expense, net
1,255
0.1 %
1,370
0.1 %
3,326
0.1 %
3,957
0.1 %
Other (income) expense, net
(985)
(0.1) %
(664)
(0.0) %
(2,294)
(0.1) %
(1,422)
(0.0) %
Income before income taxes
$264,778
17.5 %
$240,337
17.1 %
$798,557
17.8 %
$706,851
17.1 %
All Behavioral Health Care Services
Three months ended
Three months ended
Nine months ended
Nine months ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Amount
% of Net
Revenues
Net revenues
$1,542,695
100.0 %
$1,434,828
100.0 %
$4,575,378
100.0 %
$4,235,215
100.0 %
Operating charges:
Salaries, wages and benefits
844,244
54.7 %
782,909
54.6 %
2,498,338
54.6 %
2,310,761
54.6 %
Other operating expenses
322,208
20.9 %
300,406
20.9 %
949,958
20.8 %
898,655
21.2 %
Supplies expense
55,272
3.6 %
55,482
3.9 %
161,597
3.5 %
158,315
3.7 %
Depreciation and amortization
47,720
3.1 %
46,861
3.3 %
140,117
3.1 %
138,803
3.3 %
Lease and rental expense
10,911
0.7 %
11,010
0.8 %
32,834
0.7 %
32,803
0.8 %
Subtotal-operating expenses
1,280,355
83.0 %
1,196,668
83.4 %
3,782,844
82.7 %
3,539,337
83.6 %
Income from operations
262,340
17.0 %
238,160
16.6 %
792,534
17.3 %
695,878
16.4 %
Interest expense, net
1,252
0.1 %
1,375
0.1 %
3,456
0.1 %
4,106
0.1 %
Other (income) expense, net
(1,080)
(0.1) %
(1,164)
(0.1) %
(3,139)
(0.1) %
(1,922)
(0.0) %
Income before income taxes
$262,168
17.0 %
$237,949
16.6 %
$792,217
17.3 %
$693,694
16.4 %
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 goodwill, 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, 2022 and Form 10-Q for the quarter ended June 30, 2023.
The All Behavioral Health Care Services table 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
September 30, 2023 and 2022
AS REPORTED:
ACUTE
BEHAVIORAL HEALTH
9/30/23
9/30/22
% change
9/30/23
9/30/22
% change
Hospitals owned and leased
27
28
-3.6 %
331
331
0.0 %
Average licensed beds
6,667
6,982
-4.5 %
24,194
24,222
-0.1 %
Average available beds
6,495
6,810
-4.6 %
24,094
24,122
-0.1 %
Patient days
384,348
386,341
-0.5 %
1,600,740
1,588,532
0.8 %
Average daily census
4,177.7
4,199.4
-0.5 %
17,399.3
17,266.7
0.8 %
Occupancy-licensed beds
62.7 %
60.1 %
4.2 %
71.9 %
71.3 %
0.9 %
Occupancy-available beds
64.3 %
61.7 %
4.3 %
72.2 %
71.6 %
0.9 %
Admissions
80,074
78,221
2.4 %
118,487
117,913
0.5 %
Length of stay
4.8
4.9
-2.8 %
13.5
13.4
0.8 %
Inpatient revenue
$10,916,060
$9,875,794
10.5 %
$2,703,478
$2,582,448
4.7 %
Outpatient revenue
7,480,353
6,379,324
17.3 %
259,060
248,167
4.4 %
Total patient revenue
18,396,413
16,255,118
13.2 %
2,962,538
2,830,615
4.7 %
Other revenue
251,985
215,179
17.1 %
81,149
67,228
20.7 %
Gross hospital revenue
18,648,398
16,470,297
13.2 %
3,043,687
2,897,843
5.0 %
Total deductions
16,631,110
14,550,619
14.3 %
1,500,992
1,463,015
2.6 %
Net hospital revenue
$2,017,288
$1,919,678
5.1 %
$1,542,695
$1,434,828
7.5 %
SAME FACILITY:
ACUTE
BEHAVIORAL HEALTH
9/30/23
9/30/22
% change
9/30/23
9/30/22
% change
Hospitals owned and leased
27
27
0.0 %
329
329
0.0 %
Average licensed beds
6,667
6,700
-0.5 %
23,983
24,077
-0.4 %
Average available beds
6,495
6,528
-0.5 %
23,883
23,977
-0.4 %
Patient days
384,348
372,480
3.2 %
1,589,806
1,577,358
0.8 %
Average daily census
4,177.7
4,048.7
3.2 %
17,280.5
17,145.2
0.8 %
Occupancy-licensed beds
62.7 %
60.4 %
3.7 %
72.1 %
71.2 %
1.2 %
Occupancy-available beds
64.3 %
62.0 %
3.7 %
72.4 %
71.5 %
1.2 %
Admissions
80,074
75,434
6.2 %
117,620
117,008
0.5 %
Length of stay
4.8
4.9
-2.8 %
13.5
13.5
0.3 %
Universal Health Services, Inc.
Selected Hospital Statistics
For the Nine Months ended
September 30, 2023 and 2022
AS REPORTED:
ACUTE
BEHAVIORAL HEALTH
9/30/23
9/30/22
% change
9/30/23
9/30/22
% change
Hospitals owned and leased
27
28
-3.6 %
331
331
0.0 %
Average licensed beds
6,697
6,901
-3.0 %
24,203
24,269
-0.3 %
Average available beds
6,525
6,729
-3.0 %
24,103
24,169
-0.3 %
Patient days
1,172,957
1,168,248
0.4 %
4,761,887
4,669,598
2.0 %
Average daily census
4,296.5
4,279.3
0.4 %
17,442.8
17,104.8
2.0 %
Occupancy-licensed beds
64.2 %
62.0 %
3.5 %
72.1 %
70.5 %
2.3 %
Occupancy-available beds
65.8 %
63.6 %
3.5 %
72.4 %
70.8 %
2.3 %
Admissions
239,300
230,223
3.9 %
358,703
346,973
3.4 %
Length of stay
4.9
5.1
-3.4 %
13.3
13.5
-1.4 %
Inpatient revenue
$33,278,396
$29,821,756
11.6 %
$8,001,838
$7,580,475
5.6 %
Outpatient revenue
22,292,249
18,360,902
21.4 %
812,467
773,769
5.0 %
Total patient revenue
55,570,645
48,182,658
15.3 %
8,814,305
8,354,244
5.5 %
Other revenue
714,877
602,635
18.6 %
220,393
209,284
5.3 %
Gross hospital revenue
56,285,522
48,785,293
15.4 %
9,034,698
8,563,528
5.5 %
Total deductions
50,291,623
43,077,783
16.7 %
4,459,320
4,328,313
3.0 %
Net hospital revenue
$5,993,899
$5,707,510
5.0 %
$4,575,378
$4,235,215
8.0 %
SAME FACILITY:
ACUTE
BEHAVIORAL HEALTH
9/30/23
9/30/22
% change
9/30/23
9/30/22
% change
Hospitals owned and leased
27
27
0.0 %
329
329
0.0 %
Average licensed beds
6,581
6,619
-0.6 %
24,010
23,985
0.1 %
Average available beds
6,409
6,447
-0.6 %
23,910
23,885
0.1 %
Patient days
1,161,260
1,124,897
3.2 %
4,726,012
4,625,248
2.2 %
Average daily census
4,253.7
4,120.5
3.2 %
17,311.4
16,942.3
2.2 %
Occupancy-licensed beds
64.6 %
62.3 %
3.8 %
72.1 %
70.6 %
2.1 %
Occupancy-available beds
66.4 %
63.9 %
3.8 %
72.4 %
70.9 %
2.1 %
Admissions
236,911
221,868
6.8 %
355,419
343,014
3.6 %
Length of stay
4.9
5.1
-3.3 %
13.3
13.5
-1.4 %
View original content:https://www.prnewswire.com/news-releases/universal-health-services-inc–announces-2023-third-quarter-financial-results-301967826.html
SOURCE Universal Health Services, Inc.
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