Universal Health Services, Inc. · NYSE:UHS
Universal Health Services — Universal Hospital Services — Q3 2005 Earnings Presentation
20 slides from Universal Health Services's earnings presentation, Nov 9, 2005
Slide 1: 3rd Quarter Earnings Teleconference
3rd Quarter Earnings Teleconference November 9, 2005
Slide 2: Forward Looking Statements
Forward Looking Statements Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: We believe statements in this quarterly report looking forward in time involve risks and uncertainties. The following factors, among others, could adversely affect our business, operations
Slide 3: Financial Results – 3rd Quarter
Financial Results – 3rd Quarter ($ millions) 3rd Quarter Nine Months 2004 2005 % Change 2004 2005 % Change Revenues 49.6 53.4 8% 147.9 162.0 10% EBITDA 16.6 18.0 51.8 54.5 Management and Board Fees 0.2 0.2 0.6 0.6 SOX - 0.1 - 0.6 16.8 18.3 9% 52.4 55.7 6% Refer to appendix for reconciliation
Slide 4: 3Q / YTD Opportunities / Challenges
3Q / YTD Opportunities / Challenges Outsourcing: Census Hurricane impact Costs +/ Medical equipment recalls + Lifecycle momentum Services: See next slide for + Supplemental growth illustration of + CHAMP: organic / new growth equipment recall Medical equipment recalls impacts Sales & Remarketi
Slide 5: Equipment Recall Impact
Equipment Recall Impact Illustration of Individual Product Line Revenue Life cycle Expected path due to recalls and delay of new technology roll out. s se Typical product life ha rc cycle path Pu s 2 n se Revenue a s a tio h er es rc se as Pu c ha Gen es rc h 1 r as n Pu rc h Pu a tio n 2 1 er Pu n
Slide 6: Q4 2005 – 2006 Outlook
Q4 2005 – 2006 Outlook Continued growth in Revenues and EBITDA expected in 2006 Move from market “education” to market “adoption” of Lifecycle approach Equipment recalls will create “lumpiness” in different quadrants – but will be neutral in the medium term Health of hospital customers will
Slide 7: 3rd Quarter Financial Review
3rd Quarter Financial Review 7
Slide 8: Medical Equipment Outsourcing
Medical Equipment Outsourcing Rental of UHS-owned equipment Supplemental (short-term) Long Term Bariatrics: suite of specialty equipment for treatment of obesity AMPP Resident Programs (Asset Management Partnership Program) On-site management to drive better equipment utilization (UHS people, techno
Slide 9: Technical & Professional Services
Technical & Professional Services Technical Services: Professional Services: Maintain & Repair Customer-owned Equipment: Technology baseline assessments Non-resident, response-based Biomedical Services Vendor neutral Capital Planning Services Resident-Based Programs: Product comparison research and
Slide 10: Medical Equipment Sales and Remarketing
Medical Equipment Sales and Remarketing Asset recovery and equipment brokerage New equipment sales Logistics Management Disposable Sales (rationalizing this activity) $ millions 3rd Quarter Nine Months 2004 2005 % Change 2004 2005 % Change Revenues $4.3 $5.1 18% $12.8 $14.0 9% Gross Margin $0.8 $1.1
Slide 11: Selected Income Statement Data
Selected Income Statement Data ($ millions) 3rd Quarter Nine Months 2004 2005 % Change 2004 2005 % Change Consolidated Revenues $ 49.6 $ 53.4 8% $ 147.9 $ 162.0 10% Gross Margin Gross Margin before depreciation $ 29.9 $ 30.7 3% $ 91.2 $ 95.3 4% MME Depreciation $ (9.3) $ (9.6) 4% $ (26.9) $ (28.1) 4
Slide 12: Liquidity Overview – YTD 2005
Liquidity Overview – YTD 2005 ($ millions) Borrowing Base at 9/30/05 $108 (less L/Cs outstanding) Available Liquidity $74 $ Other ($3) 12/31/04 Revolver Other Capex ($3) 9/30/05 Net Balance $ 37 Cash Flow from Revolver Balance Ops $ 34 Net MME Capex $34 ($25) (a) (b) (a) Includes $1.1 payout of hold
Slide 13: Capex as % of Total Revenues has Improved Dramatically
Capex as % of Total Revenues has Improved Dramatically ($ millions) 225 Service Revenues 200 Sales & 175 Remarketing Revenues 150 125 Outsourcing 100 Revenues 75 50 Accrual 25 Net Capex 0 1999 2000 2001 2002 2003 2004 2005 E Accrual Capex % of Revenues 44% 30% 33% 25% 23% 22% 20% Est. Continued Refe
Slide 14: 2005 Guidance Update
2005 Guidance Update ($ millions) 2005 Key Drivers & Timing Original Guidance EBITDA Hospital census, Resident program signings, sales force upgrade, competitive + Mgmt & Board Fees 0.8 setting. Guidance also excludes non-cash stock compensation expense. + Sarbanes Oxley (SOX) 1.0 Total Mid $70’s Re
Slide 15: Appendix
Universal | Hospital | Services Service you can count on.® Appendix 15
Slide 16: UHS' National Infrastructure Affords Risk Diversification
UHS’ National Infrastructure Affords Risk Diversification • National infrastructure • Largest, most modern fleet in the industry 16
Slide 17: 3rd Quarter EBITDA Reconciliation
3rd Quarter EBITDA Reconciliation ($ millions) EBITDA (before management/board fees, financing and reorganization costs, and costs related to Sarbanes Oxley compliance) and EBITDA are not intended to represent an alternative to operating income or cash flows from operating, financing or investing ac
Slide 18: EBITDA Reconciliation 2000 – 2005 Q3
EBITDA Reconciliation 2000 – 2005 Q3 ($ millions) 12 months ending EBITDA 2000 2001 2002 2003 2004 9/30/2005 Net cash provided by operating activities $ 28.2 $ 31.7 $ 40.2 $ 16.0 $ 38.0 $ 35.5 Changes in operating assets and liabilities (3.5) 0.4 4.1 7.9 2.2 7.7 Other non-cash expenses (2.3) (3.7) (
Slide 19: Depreciation and Amortization Reconciliation
Depreciation and Amortization Reconciliation ($ millions) 3rd Quarter Nine Months 2004 2005 2004 2005 Movable Medical Equipment Depreciation $ 9.3 $ 9.6 $ 26.9 $ 28.1 Other Gross Margin Depreciation 0.2 0.5 0.5 1.0 Total Gross Margin Depreciation 9.5 10.1 27.4 29.1 Selling, General, and Admin Deprec
Slide 20: Accrual Capex Reconciliation
Accrual Capex Reconciliation ($ millions) 1999 2000 2001 2002 2003 2004 2005 E Cash used in investing activities 49,441 31,504 41,511 38,956 36,769 65,150 42,500 Less: Acquisitions (6,293) - (7,788) - (1,875) (15,104) - Less: Other (140) 79 (294) (200) (204) - - Add: Fixed assets from acq. 2,603 - 5
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