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Sep 30, 2022

UHS Q3 2022 Earnings Report

UHS's financial performance declined in Q3 2022, with decreased net income and earnings per share compared to Q3 2021.

Key Takeaways

Universal Health Services, Inc. reported a decrease in net income attributable to UHS to $182.8 million, or $2.50 per diluted share, during the third quarter of 2022, compared to $218.4 million, or $2.60 per diluted share, during the third quarter of 2021. Net revenues increased by 5.7% to $3.336 billion during the third quarter of 2022 as compared to $3.156 billion during the third quarter of 2021.

Net income attributable to UHS decreased to $182.8 million, or $2.50 per diluted share, compared to $218.4 million, or $2.60 per diluted share in Q3 2021.

Adjusted net income attributable to UHS decreased to $185.8 million, or $2.54 per diluted share, compared to $224.1 million, or $2.67 per diluted share in Q3 2021.

Net revenues increased by 5.7% to $3.336 billion compared to $3.156 billion in Q3 2021.

EBITDA net of NCI was $421.7 million, compared to $441.5 million in Q3 2021.

Total Revenue
$3.34B
Previous year: $3.16B
+5.7%
EPS
$2.54
Previous year: $2.67
-4.9%
Average Licensed Beds
6.98K
Previous year: 6.58K
+6.1%
Average Available Beds
6.81K
Previous year: 6.41K
+6.3%
Patient Days
386.34K
Previous year: 416.42K
-7.2%
Gross Profit
$3.34B
Previous year: $3.16B
+5.7%
Cash and Equivalents
$74.6M
Previous year: $190M
-60.7%
Free Cash Flow
$59.1M
Previous year: $258M
-77.1%
Total Assets
$13.4B
Previous year: $12.8B
+4.1%

UHS

UHS

UHS Revenue by Segment

Forward Guidance

Revised operating results forecast for the balance of 2022 assumed that staffing vacancies and the corresponding premium pay expenditures continue to sequentially decline in the second half of the year and that non-COVID patient volumes will incrementally improve, although both at a slower pace than our original forecast anticipated.

Positive Outlook

  • Continuing recruitment and retention initiatives
  • Changes to historical patient care models
  • Other cost cutting measures
  • Aggressive contractual negotiations
  • Renegotiations with managed care payers

Challenges Ahead

  • Potential impact on future COVID-19 patient volumes resulting from new variants of the virus
  • The length of time and severity of the spread of the pandemic
  • Declining patient volumes and unfavorable changes in payer mix caused by deteriorating macroeconomic conditions
  • Potential disruptions to our clinical staffing and shortages and disruptions related to supplies required for our employees and patients
  • Potential increases to expenses and other costs related to staffing, supply chain, construction and medical equipment costs and other expenditures resulting from inflation

Revenue & Expenses

Visualization of income flow from segment revenue to net income