Universal Health Services Inc (UHS) has reported a marginal increase of a 0.26 percent in profit for the quarter ended Dec. 31, 2016. The company has earned $174.21 million, or $1.78 a share, compared with $173.75 million or $1.74 a share, a year ago. On the other hand, adjusted net income for the quarter stood at $175.98 million, or $1.80 a share compared with $170.67 million or $1.71 a share, a year ago. Revenue during the quarter grew 6.93 percent to $2,475.68 million from $2,315.24 million in the previous year period. Total expenses were 87.31 percent of quarterly revenues, up from 86.10 percent for the same period last year. That has resulted in a contraction of 121 basis points in operating margin to 12.69 percent.
Operating income for the quarter was $314.23 million, compared with $321.79 million in the previous year period.
Universal Health Services Inc projects revenue to be in the range of $10,620 million to $10,760 million for financial year 2017. Universal Health Services projects adjusted revenue to be in the range of $10,620 million to $10,760 million for financial year 2017. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $7.55 to $8.05. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $7.70 to $8.20 on adjusted basis.
Operating cash flow improves significantly
Universal Health Services Inc has generated cash of $1,288.47 million from operating activities during the year, up 26.21 percent or $267.58 million, when compared with the last year. The company has spent $1,187.22 million cash to meet investing activities during the year as against cash outgo of $912.88 million in the last year.
The company has spent $125.95 million cash to carry out financing activities during the year as against cash outgo of $77.24 million in the last year period.
Cash and cash equivalents stood at $33.75 million as on Dec. 31, 2016, down 44.88 percent or $27.48 million from $61.23 million on Dec. 31, 2015.
Working capital drops significantly
Universal Health Services Inc has witnessed a decline in the working capital over the last year. It stood at $364 million as at Dec. 31, 2016, down 41.09 percent or $253.90 million from $617.90 million on Dec. 31, 2015. Current ratio was at 1.28 as on Dec. 31, 2016, down from 1.56 on Dec. 31, 2015.
Days sales outstanding were almost stable at 27 days for the quarter, when compared with the last year period.
Debt moves up
Universal Health Services Inc has witnessed an increase in total debt over the last one year. It stood at $4,136.12 million as on Dec. 31, 2016, up 20.54 percent or $704.77 million from $3,431.36 million on Dec. 31, 2015. Total debt was 40.09 percent of total assets as on Dec. 31, 2016, compared with 35.62 percent on Dec. 31, 2015. Debt to equity ratio was at 0.90 as on Dec. 31, 2016, up from 0.80 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.56 for the quarter from 11.23 for the same period last year.
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