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:







 &nbs...p;  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 %