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    UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES 2024 SECOND QUARTER FINANCIAL RESULTS, INCREASES 2024 FULL YEAR OPERATING RESULTS FORECAST AND ANNOUNCES $1 BILLION INCREASE TO STOCK REPURCHASE PROGRAM AUTHORIZATION

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    Universal Health Services Inc.

    Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended June 30, 2024 and 2023:

    KING OF PRUSSIA, Pa., July 24, 2024 /PRNewswire/ — Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $289.2 million, or $4.26 per diluted share, during the second quarter of 2024, as compared to $171.3 million, or $2.42 per diluted share, during the second quarter of 2023. Net revenues increased by 10.1% to $3.908 billion during the second quarter of 2024, as compared to $3.548 billion during the second quarter of 2023.

    As reflected on the Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”), our adjusted net income attributable to UHS during the second quarter of 2024 was $292.6 million, or $4.31 per diluted share, as compared to $179.4 million, or $2.53 per diluted share, during the second quarter of 2023. 

    Included in our reported and adjusted net income attributable to UHS during the second quarter of 2024, were net incremental reimbursements (net of related provider taxes) aggregating to approximately $34.5 million, or $.38 per diluted share, recorded in connection with the following: (i) $18.8 million, or $.21 per diluted share, applicable to the period of January 1, 2024 through June 30, 2024, resulting from a recently expanded state directed payment program in Washington, and; (ii) $15.7 million, or $.17 per diluted share, applicable to the period of July 1, 2023 through June 30, 2024, resulting from additional net reimbursements from an existing supplemental Medicaid program in Idaho.

    As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2024 were: (i) an unrealized after-tax loss of $5.9 million, or $.09 per diluted share ($7.7 million pre-tax), resulting from a decrease in the market value of certain equity securities (included in “Other (income) expense, net”), and; (ii) a favorable after-tax impact of $2.5 million, or $.04 per diluted share, resulting from the tax benefit recorded in connection with employee share-based payments (pursuant to “ASU 2016-09”, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting).  Our reported results during the second quarter of 2023 included an unrealized after-tax loss of $8.1 million, or $.11 per diluted share, ($10.5 million pre-tax) resulting from a decrease 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 $573.2 million, or 14.7% of net revenues, during the second quarter of 2024, as compared to $419.3 million, or 11.8% of net revenues, during the second quarter of 2023. Our adjusted earnings before interest, taxes, depreciation & amortization (“Adjusted EBITDA net of NCI”), which excludes the impact of other (income) expense, net, was $578.7 million, or 14.8% of net revenues, during the second quarter of 2024, as compared to $425.9 million, or 12.0% of net revenues, during the second quarter of 2023.

    Consolidated Results of Operations, As Reported and As Adjusted  – Six-month periods ended June 30, 2024 and 2023:

    Reported net income attributable to UHS was $551.0 million, or $8.08 per diluted share, during the first six months of 2024, as compared to $334.4 million, or $4.70 per diluted share, during the first six months 2023. Net revenues increased by 10.5% to $7.751 billion during the first six months of 2024, as compared to $7.016 billion during the comparable period of 2023.

    As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first six months of 2024 was $545.7 million, or $8.00 per diluted share, as compared to $346.9 million, or $4.87 per diluted share, during the comparable period of 2023. 

    As reflected on the Supplemental Schedule, included in our reported results during the first six months of 2024 were: (i) an unrealized after-tax loss of $6.3 million, or $.09 per diluted share ($8.2 million pre-tax), resulting from a decrease in the market value of certain equity securities (included in “Other (income) expense, net”), and; (ii) a favorable after-tax impact of $11.6 million, or $.17 per diluted share, resulting from the tax benefit recorded in connection with ASU 2016-09.  Our reported results during the first six months of 2023 included an unrealized after-tax loss of $12.5 million, or $.17 per diluted share, ($16.3 million pre-tax) resulting from a decrease in the market value of certain equity securities.   

    As calculated on the attached Supplemental Schedule, our EBITDA net of NCI, was $1.099 billion, or 14.2% of net revenues, during the first six months of 2024, as compared to $826.6 million, or 11.8% of net revenues, during the first six months of 2023. Our Adjusted EBITDA net of NCI, which excludes the impact of other (income) expense, net, was $1.104 billion, or 14.2% of net revenues, during the first six months of 2024, as compared to $846.9 million, or 12.1% of net revenues, during the comparable period of 2023.

    Acute Care Services – Three and six-month periods ended June 30, 2024 and 2023:

    During the second quarter of 2024, at our acute care hospitals owned during both periods (“same facility basis”), adjusted admissions (adjusted for outpatient activity) increased by 3.4% while adjusted patient days increased by 1.6%, as compared to the second quarter of 2023. At these facilities, during the second quarter of 2024, net revenue per adjusted admission increased by 3.5% while net revenue per adjusted patient day increased by 5.3%, as compared to the second quarter of 2023. Net revenues generated from our acute care services, on a same facility basis, increased by 6.6% during the second quarter of 2024, as compared to the second quarter of 2023.

     During the six-month period ended June 30, 2024, at our acute care hospitals on a same facility basis, adjusted admissions increased by 3.9% while adjusted patient days increased by 2.5%, as compared to the first six months of 2023. At these facilities, during the first six months of 2024, net revenue per adjusted admission increased by 4.0% while net revenue per adjusted patient day increased by 5.5%, as compared to the first six months of 2023. Net revenues generated from our acute care services, on a same facility basis, increased by 8.1% during the first six months of 2024, as compared to the comparable period of 2023.

    Behavioral Health Care Services – Three and six-month periods ended June 30, 2024 and 2023:

    During the second quarter of 2024, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased by 0.4% while adjusted patient days increased by 1.4%, as compared to the second quarter of 2023. At these facilities, during the second quarter of 2024, net revenue per adjusted admission increased by 11.2% and net revenue per adjusted patient day increased by 9.3%, as compared to the second quarter of 2023. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 11.0% during the second quarter of 2024, as compared to the second quarter of 2023.

    During the six-month period ended June 30, 2024, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased by 0.6% while adjusted patient days increased by 1.7%, as compared to the first six months of 2023. At these facilities, during the first six months of 2024, net revenue per adjusted admission increased by 11.2% and net revenue per adjusted patient day increased by 8.7%, as compared to the first six months of 2023. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 10.7% during the first six months of 2024, as compared to the comparable period of 2023.

    Net Cash Provided by Operating Activities and Liquidity:

    Net Cash Provided by Operating Activities:

    During the six-month period ended June 30, 2024, our net cash provided by operating activities was $1.076 billion as compared to $654 million during the first six months of 2023. The $422 million net increase in our net cash provided by operating activities consisted of: (i) a favorable change of $237 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gains on sales of assets and businesses; (ii) a favorable change of $148 million in accounts receivable; (iii) a favorable change of $60 million in accrued and deferred income taxes; (iv) an unfavorable change of $36 million in other assets and deferred charges, and; (v) $13 million of other combined net favorable changes.     

    Liquidity:

    As of June 30, 2024, we had $1.02 billion of aggregate available borrowing capacity pursuant to our $1.2 billion revolving credit facility, net of outstanding borrowings and letters of credit.       

    Increased Authorization to Stock Repurchase Program:

    On July 24, 2024, our Board of Directors authorized a $1.0 billion increase to our stock repurchase program. Pursuant to this program, which including today’s increased authorization has a current aggregate available repurchase authorization of $1.228 billion, 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 second quarter of 2024, we have repurchased 373,000 shares at an aggregate cost of approximately $70.0 million (approximately $187 per share) pursuant to the program. During the first six months of 2024, we have repurchased 1.073 million shares at an aggregate cost of approximately $195.1 million (approximately $182 per share) pursuant to the program.

    Revised 2024 Operating Results Forecasts:

    Based upon the operating trends and financial results experienced during the first six months of 2024, as indicated on the Revised Forecast table below, we are increasing our operating results forecast range for consolidated net revenues; adjusted earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests (“Adjusted EBITDA, net of NCI”), and adjusted net income attributable to UHS per diluted share (“Adjusted EPS-diluted”) for the year ended December 31, 2024.

    The tables below include our revised full year 2024 operating results forecasts as well as our original 2024 operating results forecast, which was previously disclosed on February 27, 2024.

    Revised ForecastOriginal Forecast
    For the Year EndedFor the Year Ended
    December 31, 2024December 31, 2024
    LowHighLowHigh
    Net revenues$15.565 billion$15.753 billion$15.411 billion$15.706 billion
    Adjusted EBITDA, net of NCI$2.154 billion$2.226 billion$1.931 billion$2.019 billion
    Adjusted EPS – diluted$15.40 per share$16.20 per share$13.00 per share$14.00 per share
    • Our revised 2024 forecasted net revenues are estimated to be approximately $15.565 billion to $15.753 billion, representing increases of 1.0% to 0.3% over our original 2024 forecasted net revenues. 
    • Our revised 2024 forecasted Adjusted EBITDA, net of NCI, is estimated to be approximately $2.154 billion to $2.226 billion, representing increases of 11.5% to 10.3% over our original 2024 forecasted Adjusted EBITDA, net of NCI.
    • Our revised 2024 forecasted Adjusted EPS-diluted is estimated to be $15.40 per share to $16.20 per share, representing increases of 18.5% to 15.7% over our original 2024 forecasted Adjusted EPS-diluted. 

    Our 2024 forecasted range of net income attributable to UHS, and EPS-diluted, exclude certain items as described below because we do not believe we can forecast those items with sufficient accuracy. Adjusted EBITDA net of NCI, is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of our operating performance. Please see the Supplemental Non-GAAP Disclosures – 2024 Revised Operating Results Forecast schedule as included herein for additional information and a reconciliation of our 2024 revised forecasted range of net income attributable to UHS to our 2024 revised forecasted range of Adjusted EBITDA net of NCI. 

    The revised 2024 forecasted amounts exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as pre-tax unrealized gains/losses resulting from changes in the market value of shares of certain equity securities, and other potential material items including, but not limited to, reserves for various matters including settlements, legal judgments and lawsuits, potential impacts of non-ordinary course acquisitions, divestitures, joint ventures or other strategic transactions, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets, other amounts that may be reflected in the current financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.

    Conference call information:

    We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on July 25, 2024.  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. (the “Company”) has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2023 were $14.282 billion. UHS ranked #299 on the Fortune 500; and #399 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 96,700 employees and, through its subsidiaries, operates 27 inpatient acute care hospitals, 332 inpatient behavioral health facilities, 48 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 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 March 31, 2024 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, 2023), 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:  

    • 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.
    • The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the March 28, 2024, jury award (of compensatory damages of $60 million and punitive damages of $475 million) against The Pavilion Behavioral Health System (the “Pavilion), an indirect subsidiary of the Company, as previously disclosed on Form 8-K, as filed with the Securities and Exchange Commission on April 1, 2024. While the Pavilion has professional liability insurance to cover a portion of these amounts, the resolution of this matter may have a material adverse effect on the Company.

    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, the impact of ASU 2016-09 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 March 31, 2024 and our Report on Form 10-K for the year ended December 31, 2023. 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 monthsSix months
    ended June 30,ended June 30,
    2024202320242023
    Net revenues$3,907,604$3,548,138$7,751,186$7,015,656
    Operating charges:
       Salaries, wages and benefits1,856,3721,770,2713,698,9963,523,606
       Other operating expenses1,043,116938,3142,075,2861,817,265
       Supplies expense388,063380,294791,636760,283
       Depreciation and amortization147,480143,744288,483285,365
       Lease and rental expense36,17535,38771,62570,309
    3,471,2063,268,0106,926,0266,456,828
    Income from operations436,398280,128825,160558,828
    Interest expense, net48,89948,831101,72599,707
    Other (income) expense, net5,4936,6025,34320,325
    Income before income taxes382,006224,695718,092438,796
    Provision for income taxes87,67655,393157,940107,119
    Net income294,330169,302560,152331,677
    Less:  Net income (loss) attributable to
    noncontrolling interests (“NCI”)5,178(2,011)9,166(2,751)
    Net income attributable to UHS$289,152$171,313$550,986$334,428
    Basic earnings per share attributable to UHS (a)$4.32$2.44$8.22$4.75
    Diluted earnings per share attributable to UHS (a)$4.26$2.42$8.08$4.70
    Universal Health Services, Inc.
    Footnotes to Consolidated Statements of Income
    (in thousands, except per share amounts)
    (unaudited)
    Three monthsSix months
    (a) Earnings per share calculation:ended June 30,ended June 30,
    2024202320242023
    Basic and diluted:
    Net income attributable to UHS$289,152$171,313$550,986$334,428
    Less: Net income attributable to unvested restricted share grants(5)(61)(50)(190)
    Net income attributable to UHS – basic and diluted$289,147$171,252$550,936$334,238
    Weighted average number of common shares – basic66,87870,07367,04170,304
    Basic earnings per share attributable to UHS:$4.32$2.44$8.22$4.75
    Weighted average number of common shares66,87870,07367,04170,304
    Add: Other share equivalents1,0427661,160859
    Weighted average number of common shares and equiv. – diluted67,92070,83968,20171,163
    Diluted earnings per share attributable to UHS:$4.26$2.42$8.08$4.70
    Universal Health Services, Inc.
    Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”)
    For the Three Months ended June 30, 2024 and 2023
    (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% NetThree months ended% Net
    June 30, 2024revenuesJune 30, 2023revenues
    Net income attributable to UHS$289,152$171,313
       Depreciation and amortization147,480143,744
       Interest expense, net48,89948,831
       Provision for income taxes87,67655,393
    EBITDA net of NCI$573,20714.7 %$419,28111.8 %
    Other (income) expense, net5,4936,602
    Adjusted EBITDA net of NCI$578,70014.8 %$425,88312.0 %
    Net revenues$3,907,604$3,548,138
    Calculation of Adjusted Net Income Attributable to UHS
    Three months endedThree months ended
    June 30, 2024June 30, 2023
    PerPer
    AmountDiluted ShareAmountDiluted Share
    Net income attributable to UHS$289,152$4.26$171,313$2.42
    Plus/minus after-tax adjustments:
    Unrealized loss on equity securities5,8690.098,0510.11
    Impact of ASU 2016-09(2,456)(0.04)––
    Subtotal adjustments3,4130.058,0510.11
    Adjusted net income attributable to UHS$292,565$4.31$179,364$2.53
    Universal Health Services, Inc.
    Schedule of Non-GAAP Supplemental Information (“Supplemental Schedule”)
    For the Six Months ended June 30, 2024 and 2023
    (in thousands, except per share amounts)
    (unaudited)
    Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
    (“EBITDA/Adjusted EBITDA net of NCI”)
    Six months ended% NetSix months ended% Net
    June 30, 2024revenuesJune 30, 2023revenues
    Net income attributable to UHS$550,986$334,428
       Depreciation and amortization288,483285,365
       Interest expense, net101,72599,707
       Provision for income taxes157,940107,119
    EBITDA net of NCI$1,099,13414.2 %$826,61911.8 %
    Other (income) expense, net5,34320,325
    Adjusted EBITDA net of NCI$1,104,47714.2 %$846,94412.1 %
    Net revenues$7,751,186$7,015,656
    Calculation of Adjusted Net Income Attributable to UHS
    Six months endedSix months ended
    June 30, 2024June 30, 2023
    PerPer
    AmountDiluted ShareAmountDiluted Share
    Net income attributable to UHS$550,986$8.08$334,428$4.70
    Plus/minus after-tax adjustments:
    Unrealized loss on equity securities6,3130.0912,5120.17
    Impact of ASU 2016-09(11,612)(0.17)––
    Subtotal adjustments(5,299)(0.08)12,5120.17
    Adjusted net income attributable to UHS$545,687$8.00$346,940$4.87
    Universal Health Services, Inc.
    Condensed Consolidated Balance Sheets
    (in thousands)
    (unaudited)
    June 30,December 31,
    20242023
    Assets
    Current assets:
        Cash and cash equivalents$128,786$119,439
        Accounts receivable, net2,156,8112,238,265
        Supplies218,780216,988
        Other current assets236,317236,658
              Total current assets2,740,6942,811,350
    Property and equipment12,239,81411,777,047
    Less: accumulated depreciation(5,905,061)(5,652,518)
    6,334,7536,124,529
    Other assets:
        Goodwill3,942,3723,932,407
        Deferred income taxes107,96385,626
        Right of use assets-operating leases425,407433,962
        Deferred charges6,8586,974
        Other513,381572,754
    Total Assets$14,071,428$13,967,602
    Liabilities and Stockholders’ Equity
    Current liabilities:
        Current maturities of long-term debt$127,508$126,686
        Accounts payable and other liabilities1,926,2951,813,015
        Operating lease liabilities71,98271,600
        Federal and state taxes23,4222,046
              Total current liabilities2,149,2072,013,347
    Other noncurrent liabilities569,687584,007
    Operating lease liabilities noncurrent379,580382,559
    Long-term debt4,416,7314,785,783
    Redeemable noncontrolling interest5,4185,191
    UHS common stockholders’ equity6,485,3726,149,001
    Noncontrolling interest65,43347,714
              Total equity6,550,8056,196,715
    Total Liabilities and Stockholders’ Equity$14,071,428$13,967,602
    Universal Health Services, Inc.
    Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
    Six months
    ended June 30,
    20242023
    Cash Flows from Operating Activities:
      Net income$560,152$331,677
      Adjustments to reconcile net income to net 
    cash provided by operating activities:
    Depreciation & amortization288,483285,365
    Gains on sale of assets and businesses(3,725)(6,250)
    Stock-based compensation expense46,16243,062
      Changes in assets & liabilities, net of effects from
    acquisitions and dispositions:
       Accounts receivable66,174(82,078)
       Accrued interest3,310(107)
       Accrued and deferred income taxes 26,970(32,695)
       Other working capital accounts 39,68620,216
       Medicare accelerated payments and deferred CARES Act and other grants02,741
       Other assets and deferred charges(3,030)32,746
       Other 14,27715,471
       Accrued insurance expense, net of commercial premiums paid102,22295,157
       Payments made in settlement of self-insurance claims(64,994)(51,604)
              Net cash provided by operating activities1,075,687653,701
    Cash Flows from Investing Activities:
       Property and equipment additions(449,933)(336,664)
       Proceeds received from sales of assets and businesses5,42823,688
       Acquisition of businesses and property0(3,728)
       Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment6,830(31,305)
       Decrease in capital reserves of commercial insurance subsidiary 1960
              Net cash used in investing activities(437,479)(348,009)
    Cash Flows from Financing Activities:
       Repayments of long-term debt(382,675)(93,557)
       Additional borrowings12,0380
       Financing costs0(293)
       Repurchase of common shares(237,987)(209,756)
       Dividends paid(27,006)(28,263)
       Issuance of common stock7,2276,598
       Profit distributions to noncontrolling interests(5,089)(4,735)
       Sale of ownership interests to minority members5,025407
              Net cash used in financing activities(628,467)(329,599)
       Effect of exchange rate changes on cash, cash equivalents and restricted cash(392)2,377
    Increase (decrease) in cash, cash equivalents and restricted cash9,349(21,530)
    Cash, cash equivalents and restricted cash, beginning of period214,470200,837
    Cash, cash equivalents and restricted cash, end of period$223,819$179,307
    Supplemental Disclosures of Cash Flow Information:
      Interest paid$95,902$97,297
      Income taxes paid, net of refunds$131,499$133,840
      Noncash purchases of property and equipment$108,260$100,461
    Universal Health Services, Inc.
    Supplemental Statistical Information
    (unaudited)
     % Change  % Change 
    3 Months ended6 Months ended
    Same Facility:6/30/20246/30/2024
    Acute Care Hospitals
    Revenues6.6 %8.1 %
    Adjusted Admissions3.4 %3.9 %
    Adjusted Patient Days1.6 %2.5 %
    Revenue Per Adjusted Admission3.5 %4.0 %
    Revenue Per Adjusted Patient Day5.3 %5.5 %
    Behavioral Health Hospitals
    Revenues11.0 %10.7 %
    Adjusted Admissions-0.4 %-0.6 %
    Adjusted Patient Days1.4 %1.7 %
    Revenue Per Adjusted Admission11.2 %11.2 %
    Revenue Per Adjusted Patient Day9.3 %8.7 %
    UHS ConsolidatedSecond Quarter EndedSix Months Ended
    6/30/20246/30/20236/30/20246/30/2023
    Revenues$3,907,604$3,548,138$7,751,186$7,015,656
    EBITDA net of NCI$573,207$419,281$1,099,134$826,619
    EBITDA Margin net of NCI14.7 %11.8 %14.2 %11.8 %
    Adjusted EBITDA net of NCI$578,700$425,883$1,104,477$846,944
    Adjusted EBITDA Margin net of NCI14.8 %12.0 %14.2 %12.1 %
    Cash Flow From Operations$679,281$362,948$1,075,687$653,701
    Capital Expenditures  $241,394$167,912$449,933$336,664
    Days Sales Outstanding5154
    Debt $4,544,239$4,716,432
    UHS’ Shareholders Equity$6,485,372$6,087,182
    Debt / Total Capitalization41.2 %43.7 %
    Debt / EBITDA net of NCI (1)2.292.83
    Debt / Adjusted EBITDA net of NCI (1)2.272.70
    Debt / Cash From Operations (1)2.694.03
    (1) Latest 4 quarters.
    Universal Health Services, Inc.
    Acute Care Hospital Services
    For the Three and Six months ended
    June 30, 2024 and 2023
    (in thousands)
    (unaudited)
    Same Facility Basis – Acute Care Hospital Services
    Three months endedThree months endedSix months endedSix months ended
    June 30, 2024June 30, 2023June 30, 2024June 30, 2023
    Amount% of Net
    Revenues     		Amount% of Net
    Revenues     		Amount% of Net
    Revenues     		Amount% of Net
    Revenues 
    Net revenues$2,099,912100.0 %$1,969,566100.0 %$4,207,346100.0 %$3,892,030100.0 %
    Operating charges:
    Salaries, wages and benefits855,43240.7 %835,90442.4 %1,716,10840.8 %1,662,87942.7 %
    Other operating expenses579,08227.6 %555,88328.2 %1,156,15827.5 %1,060,50027.2 %
    Supplies expense331,70815.8 %327,76116.6 %678,80316.1 %653,13216.8 %
    Depreciation and amortization94,1904.5 %94,2024.8 %184,3104.4 %187,2094.8 %
    Lease and rental expense24,3131.2 %24,0211.2 %48,1061.1 %48,0161.2 %
    Subtotal-operating expenses1,884,72589.8 %1,837,77193.3 %3,783,48589.9 %3,611,73692.8 %
    Income from operations215,18710.2 %131,7956.7 %423,86110.1 %280,2947.2 %
    Interest expense, net 9860.0 %(503)(0.0) %2,2860.1 %(1,080)(0.0) %
    Other (income) expense, net (677)(0.0) %00.0 %(758)(0.0) %6,2130.2 %
    Income before income taxes$214,87810.2 %$132,2986.7 %$422,33310.0 %$275,1617.1 %
    All Acute Care Hospital Services
    Three months endedThree months endedSix months endedSix months ended
    June 30, 2024June 30, 2023June 30, 2024June 30, 2023
    Amount% of Net
    Revenues    		Amount% of Net
    Revenues     		Amount% of Net
    Revenues    		Amount% of Net
    Revenues 
    Net revenues$2,173,409100.0 %$2,003,079100.0 %$4,358,490100.0 %$3,976,611100.0 %
    Operating charges:
    Salaries, wages and benefits856,02039.4 %836,33141.8 %1,717,56739.4 %1,680,29142.3 %
    Other operating expenses654,93130.1 %590,61629.5 %1,309,91430.1 %1,134,91628.5 %
    Supplies expense331,68415.3 %327,65016.4 %678,68815.6 %655,71016.5 %
    Depreciation and amortization94,2144.3 %94,3044.7 %184,5264.2 %187,6304.7 %
    Lease and rental expense24,3151.1 %24,0351.2 %48,1481.1 %48,1891.2 %
    Subtotal-operating expenses1,961,16490.2 %1,872,93693.5 %3,938,84390.4 %3,706,73693.2 %
    Income from operations212,2459.8 %130,1436.5 %419,6479.6 %269,8756.8 %
    Interest expense, net 9860.0 %(503)(0.0) %2,2860.1 %(1,080)(0.0) %
    Other (income) expense, net (461)(0.0) %1190.0 %1730.0 %7,1320.2 %
    Income before income taxes$211,7209.7 %$130,5276.5 %$417,1889.6 %$263,8236.6 %
    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, 2023 and our Form 10-Q for the quarter ended March 31, 2024 .
    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 Six months ended
    June 30, 2024 and 2023
    (in thousands)
    (unaudited)
    Same Facility – Behavioral Health Care Services
    Three months endedThree months endedSix months endedSix months ended
    June 30, 2024June 30, 2023June 30, 2024June 30, 2023
    Amount% of Net
    Revenues     		Amount% of Net
    Revenues     		Amount% of Net
    Revenues     		Amount% of Net
    Revenues 
    Net revenues$1,683,847100.0 %$1,517,051100.0 %$3,300,159100.0 %$2,980,774100.0 %
    Operating charges:
    Salaries, wages and benefits894,62753.1 %843,22955.6 %1,763,50353.4 %1,652,16755.4 %
    Other operating expenses308,42018.3 %296,26119.5 %620,70518.8 %574,98319.3 %
    Supplies expense57,1053.4 %53,7743.5 %113,8713.5 %106,2593.6 %
    Depreciation and amortization49,9113.0 %46,5543.1 %97,0192.9 %91,8863.1 %
    Lease and rental expense11,6560.7 %11,2030.7 %23,1020.7 %21,8010.7 %
    Subtotal-operating expenses1,321,71978.5 %1,251,02182.5 %2,618,20079.3 %2,447,09682.1 %
    Income from operations362,12821.5 %266,03017.5 %681,95920.7 %533,67817.9 %
    Interest expense, net 1,0080.1 %9930.1 %2,0350.1 %2,2030.1 %
    Other (income) expense, net (871)(0.1) %(733)(0.0) %(1,547)(0.0) %(1,309)(0.0) %
    Income before income taxes$361,99121.5 %$265,77017.5 %$681,47120.6 %$532,78417.9 %
    All Behavioral Health Care Services
    Three months endedThree months endedSix months endedSix months ended
    June 30, 2024June 30, 2023June 30, 2024June 30, 2023
    Amount% of Net
    Revenues    		Amount% of Net
    Revenues     		Amount% of Net
    Revenues    		Amount% of Net
    Revenues 
    Net revenues$1,731,309100.0 %$1,542,194100.0 %$3,387,376100.0 %$3,032,683100.0 %
    Operating charges:
    Salaries, wages and benefits898,62151.9 %844,30854.7 %1,770,81752.3 %1,654,09454.5 %
    Other operating expenses352,40820.4 %322,51820.9 %699,67620.7 %627,75020.7 %
    Supplies expense57,2773.3 %53,8373.5 %114,2013.4 %106,3253.5 %
    Depreciation and amortization50,6252.9 %46,7783.0 %98,4972.9 %92,3973.0 %
    Lease and rental expense11,7610.7 %11,2550.7 %23,2790.7 %21,9230.7 %
    Subtotal-operating expenses1,370,69279.2 %1,278,69682.9 %2,706,47079.9 %2,502,48982.5 %
    Income from operations360,61720.8 %263,49817.1 %680,90620.1 %530,19417.5 %
    Interest expense, net 1,0080.1 %9930.1 %2,0350.1 %2,2040.1 %
    Other (income) expense, net (871)(0.1) %(1,188)(0.1) %(1,547)(0.0) %(2,059)(0.1) %
    Income before income taxes$360,48020.8 %$263,69317.1 %$680,41820.1 %$530,04917.5 %
    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 Behavioral Health Care 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, 2023 and our Form 10-Q for the quarter ended March 31, 2024.
    The All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health 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.
    Selected Hospital Statistics
    For the Three Months ended
    June 30, 2024 and 2023
    (unaudited)
    AS REPORTED:
    ACUTEBEHAVIORAL HEALTH
    6/30/246/30/23%  change6/30/246/30/23%  change
    Hospitals owned and leased27270.0 %3323310.3 %
    Average licensed beds6,6576,6240.5 %24,41924,1891.0 %
    Average available beds6,4856,4520.5 %24,31924,0891.0 %
    Patient days390,433384,3731.6 %1,619,0851,588,5751.9 %
    Average daily census4,290.54,223.81.6 %17,792.117,456.91.9 %
    Occupancy-licensed beds64.5 %63.8 %1.1 %72.9 %72.2 %1.0 %
    Occupancy-available beds66.2 %65.5 %1.1 %73.2 %72.5 %1.0 %
    Admissions81,85879,1003.5 %119,798119,6560.1 %
    Length of stay4.84.9-1.8 %13.513.31.8 %
    Inpatient revenue$12,334,730$10,960,84512.5 %$2,785,485$2,670,3704.3 %
    Outpatient revenue8,633,8927,515,78014.9 %286,550281,0362.0 %
    Total patient revenue20,968,62218,476,62513.5 %3,072,0352,951,4064.1 %
    Other revenue234,351240,899-2.7 %82,20173,92611.2 %
    Gross revenue21,202,97318,717,52413.3 %3,154,2363,025,3324.3 %
    Total deductions19,029,56416,714,44513.9 %1,422,9271,483,138-4.1 %
    Net revenue $2,173,409$2,003,0798.5 %$1,731,309$1,542,19412.3 %
    SAME FACILITY:
    ACUTEBEHAVIORAL HEALTH
    6/30/246/30/23%  change6/30/246/30/23%  change
    Hospitals owned and leased27270.0 %3303300.0 %
    Average licensed beds6,6576,6240.5 %24,16524,0630.4 %
    Average available beds6,4856,4520.5 %24,06523,9630.4 %
    Patient days390,433384,3731.6 %1,604,7581,578,2771.7 %
    Average daily census4,290.54,223.81.6 %17,634.717,343.71.7 %
    Occupancy-licensed beds64.5 %63.8 %1.1 %73.0 %72.1 %1.2 %
    Occupancy-available beds66.2 %65.5 %1.1 %73.3 %72.4 %1.2 %
    Admissions81,85879,1003.5 %118,702118,778-0.1 %
    Length of stay4.84.9-1.8 %13.513.31.7 %
    Universal Health Services, Inc.
    Selected Hospital Statistics
    For the Six Months ended
    June 30, 2024 and 2023
    (unaudited)
    AS REPORTED:
    ACUTEBEHAVIORAL HEALTH
    6/30/246/30/23%  change6/30/246/30/23%  change
    Hospitals owned and leased27270.0 %3323310.3 %
    Average licensed beds6,6576,711-0.8 %24,40024,2100.8 %
    Average available beds6,4856,539-0.8 %24,30024,1100.8 %
    Patient days805,759788,6262.2 %3,228,0773,161,1472.1 %
    Average daily census4,427.24,357.01.6 %17,736.717,464.91.6 %
    Occupancy-licensed beds66.5 %64.9 %2.4 %72.7 %72.1 %0.8 %
    Occupancy-available beds68.3 %66.6 %2.5 %73.0 %72.4 %0.8 %
    Admissions165,439159,2263.9 %239,728240,216-0.2 %
    Length of stay4.95.0-2.0 %13.513.22.6 %
    Inpatient revenue$25,244,832$22,362,33612.9 %$5,540,169$5,298,3604.6 %
    Outpatient revenue16,980,18114,811,89614.6 %565,078553,4072.1 %
    Total patient revenue42,225,01337,174,23213.6 %6,105,2475,851,7674.3 %
    Other revenue480,602462,8923.8 %162,412139,24416.6 %
    Gross revenue42,705,61537,637,12413.5 %6,267,6595,991,0114.6 %
    Total deductions38,347,12533,660,51313.9 %2,880,2832,958,328-2.6 %
    Net revenue $4,358,490$3,976,6119.6 %$3,387,376$3,032,68311.7 %
    SAME FACILITY:
    ACUTEBEHAVIORAL HEALTH
    6/30/246/30/23%  change6/30/246/30/23%  change
    Hospitals owned and leased27270.0 %3303300.0 %
    Average licensed beds6,6576,6170.6 %24,14524,0840.3 %
    Average available beds6,4856,4450.6 %24,04523,9840.3 %
    Patient days805,759782,3543.0 %3,201,1983,140,4221.9 %
    Average daily census4,427.24,322.42.4 %17,589.017,350.41.4 %
    Occupancy-licensed beds66.5 %65.3 %1.8 %72.8 %72.0 %1.1 %
    Occupancy-available beds68.3 %67.1 %1.8 %73.2 %72.3 %1.1 %
    Admissions165,439158,1634.6 %237,599238,393-0.3 %
    Length of stay4.94.90.0 %13.513.22.3 %
    Universal Health Services, Inc.
    Supplemental Non-GAAP Disclosures
    2024 Revised Operating Results Forecast
    (in thousands, except per share amounts)
    Revised Forecast For The Year Ending December 31, 2024
    % Net% Net
    LowrevenuesHighrevenues
    Net revenues$15,565,000$15,753,000
    Net income attributable to UHS (a)$1,045,080$1,099,563
     Depreciation and amortization592,455592,455
     Interest expense195,664195,664
     Other (income) expense, net(10,954)(10,954)
     Provision for income taxes331,837349,137
    Adjusted EBITDA net of NCI (b)$2,154,08213.8 %$2,225,86514.1 %
    Net income attributable to UHS, per diluted share (a)$15.40$16.20
    Shares used in computing diluted earnings per share67,86967,869
    (a) Revised forecasted net income attributable to UHS/per diluted share exclude the following items because we do not believe we can forecast these items with sufficient accuracy. Such items include: the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as pre-tax unrealized gains/losses resulting from changes in the market value of shares of certain equity securities, and other potential material items including, but not limited to, reserves for various matters including settlements, legal judgments and lawsuits, potential impacts of non-ordinary course acquisitions, divestitures, joint ventures or other strategic transactions, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets, other amounts that may be reflected in the current financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. Forecasted net income attributable to UHS/per diluted share is also subject to certain conditions including those as set forth in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.
    (b) Adjusted EBITDA net of NCI is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP.  We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of operating performance.

    SOURCE Universal Health Services, Inc.

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