Universal Health Services Inc. (NYSE:UHS) Q1 2018 Earnings Conference Call Transcript

Apr 26, 2018 • 09:00 am ET

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Universal Health Services Inc. (NYSE:UHS) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good morning. My name is Christie, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quarter 2018 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

Mr. Steve Filton, you may begin your conference.

Executive
Steve Filton

Thank you, Christie. Good morning. Alan Miller, our CEO is also joining us this morning. Welcome to this review of Universal Health Services' results for the first quarter ended March 31, 2018.

(Forward-Looking Cautionary Statements)

We'd like to highlight just a couple of developments and business trends before opening the call up to questions. As discussed in our press release last night, the company recorded net income attributable to UHS per diluted share of $2.36 for the quarter after adjusting for the unfavorable $9.9 million after-tax impact resulting from the increase in our reserve related to the Department of Justice discussions and the favorable impact from our 2017 adoption of ASU 2016-09.

As discussed in our press release, our adjusted net income attributable to UHS per diluted share was $2.45 for the quarter ended March 31, 2018. On a same facility basis in our acute care division, revenues increased 3.7% during the first quarter of 2018. Excluding our health plan, same facility revenues increased 5.8%. The increase resulted primarily from a 2.3% increase in adjusted admissions and a 3.4% increase in revenue per adjusted admission.

On a same facility basis, revenues in our behavioral health division increased 3.0% during the first quarter of 2018. Adjusted admissions to our behavioral health facilities owned for more than a year increased 1.6% and adjusted patient days increased 0.4% over the prior year quarter. Revenue per adjusted patient day rose 3.2% during the first quarter of 2017 over the comparable prior year quarter.

Our cash provided by operating activities was approximately $364 million during the first quarter of 2018. Our accounts receivable days outstanding increased to 53 days during the first quarter of 2018 as compared to 50 days during the first quarter of last year.

Our ratio of debt to total capitalization declined to 42.9% at March 31, 2018 as compared to 44.7% at December 31, 2017. We spent $189 million on capital expenditures during the first quarter of 2018.

Alan and I will be pleased to answer your questions at this time.