UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES 2024 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS AND 2025 OPERATING RESULTS FORECAST

Consolidated Results of Operations, As Reported and As Adjusted  – Three-month periods ended December 31, 2024 and 2023:

KING OF PRUSSIA, Pa., Feb. 26, 2025 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $332.4 million, or $4.96 per diluted share, during the fourth quarter of 2024, as compared to $216.4 million, or $3.16 per diluted share, during the fourth quarter of 2023. Net revenues increased by 11.1% to $4.114 billion during the fourth quarter of 2024, as compared to $3.704 billion during the fourth quarter of 2023.

As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income attributable to UHS during the fourth quarter of 2024 was $329.9 million, or $4.92 per diluted share, as compared to $214.9 million, or $3.13 per diluted share, during the fourth quarter of 2023.

As reflected on the Supplemental Schedule, included in our reported results during the fourth quarter of 2024 were: (i) an unrealized after-tax gain of $2.1 million, or $.03 per diluted share ($2.7 million pre-tax), resulting from an increase in the market value of certain equity securities (included in "Other (income) expense, net"), and; (ii) a favorable net after-tax impact of $407,000, or $.01 per diluted share, resulting from the net tax benefit recorded pursuant to "ASU 2016-09", Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.

Included in our reported and adjusted net income attributable to UHS during the fourth quarter of 2023, were net incremental reimbursements (net of related provider taxes) of approximately $17.8 million, or $.20 per diluted share, recorded in connection with the Mississippi Hospital Access Program covering the period of July 1, 2023, through December 31, 2023.  In addition, as reflected on the Supplemental Schedule, included in our reported results during the fourth quarter of 2023, was an unrealized after-tax gain of $1.5 million, or $.03 per diluted share ($1.9 million pre-tax), resulting from an increase 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 $620.2 million during the fourth quarter of 2024, as compared to $476.9 million during the fourth 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 $614.6 million during the fourth quarter of 2024, as compared to $473.4 million during the fourth quarter of 2023.

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Consolidated Results of Operations, As Reported and As Adjusted  – Twelve-month periods ended December 31, 2024 and 2023:

Reported net income attributable to UHS was $1.142 billion, or $16.82 per diluted share, during the full year 2024, as compared to $717.8 million, or $10.23 per diluted share, during 2023. Net revenues increased by 10.8% to $15.828 billion during the full year of 2024, as compared to $14.282 billion during 2023.

As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the twelve-month period ended December 31, 2024, was $1.128 billion, or $16.61 per diluted share, as compared to $739.4 million, or $10.54 per diluted share, during the twelve-month period ended December 31, 2023.

As reflected on the Supplemental Schedule, included in our reported results during the full year of 2024 were: (i) an unrealized after-tax loss of $2.0 million, or $.03 per diluted share ($2.6 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 net after-tax impact of $15.9 million, or $.24 per diluted share, resulting from the above-mentioned net tax benefit recorded in connection with ASU 2016-09, net of the impact of executive compensation limitations pursuant to IRC section 162(m).

As reflected on the Supplemental Schedule, included in our reported results during 2023 was an unrealized after-tax loss of $21.6 million, or $.31 per diluted share ($28.2 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"), was $2.248 billion during the full year of 2024, as compared to $1.714 billion during the full year 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 $2.246 billion during the full year of 2024, as compared to $1.742 billion during the full year of 2023.

Acute Care Services – Three and twelve-month periods ended December 31, 2024 and 2023:

During the fourth quarter of 2024, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased by 2.2% while adjusted patient days increased by 0.1%, as compared to the fourth quarter of 2023. At these facilities, during the fourth quarter of 2024, net revenue per adjusted admission increased by 5.3% while net revenue per adjusted patient day increased by 7.5%, as compared to the fourth quarter of 2023. Net revenues generated from our acute care services, on a same facility basis, increased by 8.7% during the fourth quarter of 2024, as compared to the fourth quarter of 2023.

During the twelve-month period ended December 31, 2024, at our acute care hospitals on a same facility basis, adjusted admissions increased by 2.9% while adjusted patient days increased by 1.8%, as compared to the year ended December 31, 2023. At these facilities, during the full year of 2024, net revenue per adjusted admission increased by 5.1% while net revenue per adjusted patient day increased by 6.3%, as compared to 2023. Net revenues generated from our acute care services, on a same facility basis, increased by 8.5% during the full year of 2024, as compared to 2023.

Behavioral Health Care Services – Three and twelve-month periods ended December 31, 2024 and 2023:

During the fourth quarter of 2024, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 2.0% while adjusted patient days increased by 1.6%, as compared to the fourth quarter of 2023. At these facilities, during the fourth quarter of 2024, net revenue per adjusted admission increased by 8.7% and net revenue per adjusted patient day increased by 9.1%, as compared to the fourth quarter of 2023. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 11.1% during the fourth quarter of 2024, as compared to the fourth quarter of 2023.

During the twelve-month period ended December 31, 2024, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.7% while adjusted patient days increased by 1.7%, as compared to the comparable period of 2023. At these facilities, during the full year of 2024, net revenue per adjusted admission increased by 9.8% and net revenue per adjusted patient day increased by 8.8%, as compared to 2023. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 10.7% during 2024, as compared to 2023.

Net Cash Provided by Operating Activities and Liquidity:

Net Cash Provided by Operating Activities:

During the twelve-month period ended December 31, 2024, our net cash provided by operating activities was $2.067 billion as compared to $1.268 billion during the full year of 2023. The $799 million net increase in our net cash provided by operating activities consisted of: (i) a favorable change of $472 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense, gains on sales of assets and businesses and costs related to the extinguishment of debt; (ii) a favorable change of $250 million in accounts receivable due, in part, to a decrease in our days sales outstanding to 50 days at December 31, 2024, as compared to 57 days at December 31, 2023; (iii) a favorable change of $94 million in other working capital accounts due primarily to the timing of disbursements for certain accrued liabilities; (iv) an unfavorable change of $61 million in other assets and deferred charges; (v) a favorable change of $56 million in accrued and deferred income taxes, and; (vi) $12 million of other combined net unfavorable changes.

Liquidity:

As of December 31, 2024, we had $1.17 billion of aggregate available borrowing capacity pursuant to our $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit.

Stock Repurchase Program:

In connection with our stock repurchase program, 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.

Pursuant to this program, during the fourth quarter of 2024, we have repurchased approximately 1.25 million shares at an aggregate cost of approximately $249.6 million (average price of approximately $199 per share). During the full year of 2024, we have repurchased approximately 2.98 million shares at an aggregate cost of approximately $598.5 million (average price of approximately $201 per share).

As of December 31, 2024, we had an aggregate available repurchase authorization of approximately $824.4 million pursuant to our stock repurchase program.

2025 Operating Results Forecast:

Reflected below is our 2025 forecasted range for consolidated net revenues, 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"), net income attributable to UHS per diluted share ("EPS-diluted") and capital expenditures.

Our 2025 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 - 2025 Operating Results Forecast schedule as included herein for additional information and a reconciliation of our 2025 forecasted range of net income attributable to UHS to our 2025 forecasted range of Adjusted EBITDA net of NCI.

For the Year Ended

December 31, 2025 Low High Net revenues $17.020 billion $17.364 billion Adjusted EBITDA net of NCI $2.357 billion $2.484 billion  EPS-diluted $18.45 per share $19.95 per share Capital expenditures $850 million $1.000 billion

Our 2025 operating results forecast contains a number of assumptions including, but not limited to, the following:

The 2025 forecasted amounts exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, net of the impact of executive compensation limitations pursuant to IRC section 162(m), 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, other amounts that may be reflected in the current or prior year 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. Our net revenues are estimated to be approximately $17.020 billion to $17.364 billion representing an increase of 7.5% to 9.7% over our 2024 net revenues of $15.828 billion. Our Adjusted EBITDA net of NCI is estimated to be approximately $2.357 billion to $2.484 billion representing an increase of 4.9% to 10.6% over our 2024 Adjusted EBITDA net of NCI of $2.246 billion. Our EPS-diluted range is estimated to be $18.45 per diluted share to $19.95 per diluted share, representing an increase of 11.1% to 20.1% over our adjusted net income attributable to UHS of $16.61 per diluted share for the year ended December 31, 2024, as calculated on the attached Supplemental Schedule.

Conference call information:

We will hold a conference call for investors and analysts at 10:00 a.m. eastern time on February 27, 2025. 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 2024 were $15.828 billion. UHS ranked #299 on the Fortune 500; and #399 on Forbes' list of America's Largest Public Companies. In 2025, 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 99,000 employees and, through its subsidiaries, operates 28 inpatient acute care hospitals, 331 inpatient behavioral health facilities, 60 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 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2024), 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. In addition, we receive substantial reimbursement from multiple states in connection with various supplemental Medicaid payment programs. Failure to renew these programs beyond their scheduled termination dates, failure of the public hospitals to provide the necessary Inter-Governmental Transfers for the states' share of the Medicaid disproportionate share hospital programs, failure of our hospitals that currently receive supplemental Medicaid revenues to qualify for future funds under these programs, the adoption of certain proposed reductions of federal funding for Medicaid, or reductions in other reimbursements, could cause our actual results of operations for the year ended December 31, 2025 to differ materially from our 2025 operating results forecast. The increase in interest rates during the past few years has increased our interest expense significantly thereby reducing our free cash flow. As such, although interest rates have moderated more recently, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations and our ability to access the capital markets on favorable terms; The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the matters related to Cumberland Hospital for Children and Adolescents, located in New Kent, Virginia, as previously disclosed on Form 8-K on September 30, 2024, Form 10-Q for the quarterly period ended September 30, 2024 and Form 10-K for the year ended December 31, 2024; and the matter related to the Pavilion Behavioral Health System, located in Champaign, Illinois, as previously disclosed on Forms 8-K on April 1, 2024, September 30, 2024 and October 11, 2024, Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024 and September 30, 2024 and Form 10-K for the year ended December 31, 2024. Although we can make no assurances regarding the ultimate outcome of these matters, or what damages will ultimately be awarded, the final resolution of these matters could 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, net of the impact of executive compensation limitations pursuant to IRC section 162(m), 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-K for the year ended December 31, 2024. 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 months  Twelve months ended December 31,  ended December 31, 2024  2023  2024  2023  Net revenues $4,113,722  $3,703,546  $15,827,935  $14,281,976  Operating charges:  Salaries, wages and benefits 1,907,383  1,799,008  7,518,687  7,107,484 Other operating expenses 1,142,901  998,732  4,308,384  3,757,216 Supplies expense 405,900  393,878  1,587,786  1,532,828 Depreciation and amortization 146,781  145,481  584,831  568,041 Lease and rental expense 38,268  35,251  146,433  141,026 3,641,233  3,372,350  14,146,121  13,106,595  Income from operations 472,489  331,196  1,681,814  1,175,381  Interest expense, net 39,724  53,589  186,109  206,674 Other (income) expense, net (5,546)  (3,516)  (2,231)  28,281  Income before income taxes 438,311  281,123  1,497,936  940,426  Provision for income taxes 101,264  61,501  334,827  221,119  Net income 337,047  219,622  1,163,109  719,307  Less:  Net income (loss) attributable to  noncontrolling interests ("NCI") 4,650  3,244  21,012  1,512  Net income attributable to UHS $332,397  $216,378  $1,142,097  $717,795   Basic earnings per share attributable to UHS (a) $5.07  $3.19  $17.16  $10.35  Diluted earnings per share attributable to UHS (a) $4.96  $3.16  $16.82  $10.23

Universal Health Services, Inc. Footnotes to Consolidated Statements of Income (in thousands, except per share amounts) (unaudited)  Three months  Twelve months (a) Earnings per share calculation: ended December 31,  ended December 31, 2024  2023  2024  2023 Basic and diluted:  Net income attributable to UHS $332,397  $216,378  $1,142,097  $717,795 Less: Net income attributable to unvested restricted share grants   (66)  (50)  (308) Net income attributable to UHS - basic and diluted $332,397  $216,312  $1,142,047  $717,487  Weighted average number of common shares - basic 65,597  67,809  66,554  69,321  Basic earnings per share attributable to UHS: $5.07  $3.19  $17.16  $10.35  Weighted average number of common shares 65,597  67,809  66,554  69,321 Add: Other share equivalents 1,477  741  1,342  804 Weighted average number of common shares and equiv. - diluted 67,074  68,550  67,896  70,125  Diluted earnings per share attributable to UHS: $4.96  $3.16  $16.82  $10.23

Universal Health Services, Inc. Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") For the Three Months ended December 31, 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  % Net  Three months ended  % Net December 31, 2024  revenues  December 31, 2023  revenues  Net income attributable to UHS $332,397    $216,378  Depreciation and amortization 146,781    145,481  Interest expense, net 39,724    53,589  Provision for income taxes 101,264    61,501  EBITDA net of NCI $620,166  15.1 %  $476,949  12.9 %  Other (income) expense, net (5,546)    (3,516)  Adjusted EBITDA net of NCI $614,620  14.9 %  $473,433  12.8 %  Net revenues $4,113,722    $3,703,546    Calculation of Adjusted Net Income Attributable to UHS  Three months ended  Three months ended December 31, 2024  December 31, 2023 Per    Per Amount  Diluted Share  Amount  Diluted Share  Net income attributable to UHS $332,397  $4.96  $216,378  $3.16 Plus/minus after-tax adjustments:  Unrealized gain on equity securities (2,053)  (0.03)  (1,470)  (0.03) Impact of ASU 2016-09, net (407)  (0.01)  -  - Subtotal adjustments (2,460)  (0.04)  (1,470)  (0.03) Adjusted net income attributable to UHS $329,937  $4.92  $214,908  $3.13

Universal Health Services, Inc. Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") For the Twelve Months ended December 31, 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")  Twelve months ended  % Net  Twelve months ended  % Net December 31, 2024  revenues  December 31, 2023  revenues  Net income attributable to UHS $1,142,097    $717,795  Depreciation and amortization 584,831    568,041  Interest expense, net 186,109    206,674  Provision for income taxes 334,827    221,119  EBITDA net of NCI $2,247,864  14.2 %  $1,713,629  12.0 %  Other (income) expense, net (2,231)    28,281  Adjusted EBITDA net of NCI $2,245,633  14.2 %  $1,741,910  12.2 %  Net revenues $15,827,935    $14,281,976    Calculation of Adjusted Net Income Attributable to UHS  Twelve months ended  Twelve months ended December 31, 2024  December 31, 2023 Per    Per Amount  Diluted Share  Amount  Diluted Share  Net income attributable to UHS $1,142,097  $16.82  $717,795  $10.23 Plus/minus after-tax adjustments:  Unrealized loss on equity securities 1,985  0.03  21,570  0.31 Impact of ASU 2016-09, net (15,947)  (0.24)  -  - Subtotal adjustments (13,962)  (0.21)  21,570  0.31 Adjusted net income attributable to UHS $1,128,135  $16.61  $739,365  $10.54

Universal Health Services, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited)  December 31,   December 31, 2024   2023 Assets  Current assets:  Cash and cash equivalents  $ 125,983  $ 119,439 Accounts receivable, net   2,177,751   2,238,265 Supplies   220,940   216,988 Other current assets   291,614   236,658 Total current assets   2,816,288   2,811,350  Property and equipment   12,643,283   11,777,047 Less: accumulated depreciation   (6,071,058)   (5,652,518) 6,572,225   6,124,529  Other assets:  Goodwill   3,932,879   3,932,407 Deferred income taxes   118,449   85,626 Right of use assets-operating leases   418,719   433,962 Deferred charges   9,404   6,974 Other   601,785   572,754 Total Assets  $ 14,469,749  $ 13,967,602  Liabilities and Stockholders' Equity  Current liabilities:  Current maturities of long-term debt  $ 40,059  $ 126,686 Accounts payable and other liabilities   2,081,479   1,813,015 Operating lease liabilities   74,649   71,600 Federal and state taxes   14,219   2,046 Total current liabilities   2,210,406   2,013,347  Other noncurrent liabilities   655,806   584,007 Operating lease liabilities noncurrent   376,239   382,559 Long-term debt   4,464,482   4,785,783  Redeemable noncontrolling interest   13,293   5,191  UHS common stockholders' equity   6,666,207   6,149,001 Noncontrolling interest   83,316   47,714 Total equity   6,749,523   6,196,715  Total Liabilities and Stockholders' Equity  $ 14,469,749  $ 13,967,602

Universal Health Services, Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited)  Twelve months ended December 31, 2024  2023  Cash Flows from Operating Activities:  Net income $1,163,109  $719,307 Adjustments to reconcile net income to net  cash provided by operating activities:  Depreciation & amortization 584,831  568,041 Gains on sales of assets and businesses (9,920)  (6,250) Stock-based compensation expense 99,349  87,720 Costs related to extinguishment of debt 3,158  Changes in assets & liabilities, net of effects from  acquisitions and dispositions:  Accounts receivable 67,355  (182,444) Accrued interest 12,814  1,193 Accrued and deferred income taxes  12,651  (43,450) Other working capital accounts  61,897  (32,321) Deferred grant revenue   2,978 Other assets and deferred charges (12,163)  48,517 Other  21,811  39,133 Accrued insurance expense, net of commercial premiums paid 254,394  183,462 Payments made in settlement of self-insurance claims (192,185)  (118,089) Net cash provided by operating activities 2,067,101  1,267,797  Cash Flows from Investing Activities:  Property and equipment additions (943,810)  (743,055) Acquisition of businesses and property (18,998)  (3,728) Inflows (outflows) from foreign exchange contracts that hedge our net U.K. investment 12,860  (40,695) Proceeds received from sales of assets and businesses 38,563  24,187 Decrease in capital reserves of commercial insurance subsidiary  276  16 Net cash used in investing activities (911,109)  (763,275)  Cash Flows from Financing Activities:  Repayments of long-term debt (2,640,001)  (85,480) Additional borrowings 2,210,248  185,100 Financing costs (12,566)  (308) Repurchase of common shares (670,754)  (547,363) Dividends paid (53,346)  (55,480) Issuance of common stock 15,070  13,654 Profit distributions to noncontrolling interests (6,508)  (6,830) Sale of ownership interests to minority members 12,980  2,762 Net cash used in financing activities (1,144,877)  (493,945)  Effect of exchange rate changes on cash, cash equivalents and restricted cash (833)  3,056 Increase in cash, cash equivalents and restricted cash 10,282  13,633 Cash, cash equivalents and restricted cash, beginning of period 214,470  200,837 Cash, cash equivalents and restricted cash, end of period $224,752  $214,470  Supplemental Disclosures of Cash Flow Information:  Interest paid $168,274  $200,446  Income taxes paid, net of refunds $325,430  $257,896  Noncash purchases of property and equipment $118,109  $66,899

Universal Health Services, Inc. Supplemental Statistical Information (unaudited)  % Change   % Change  3 Months ended  12 Months ended Same Facility:       12/31/2024  12/31/2024  Acute Care Hospitals  Revenues       8.7 %  8.5 % Adjusted Admissions       2.2 %  2.9 % Adjusted Patient Days       0.1 %  1.8 % Revenue Per Adjusted Admission       5.3 %  5.1 % Revenue Per Adjusted Patient Day       7.5 %  6.3 %  Behavioral Health Hospitals  Revenues       11.1 %  10.7 % Adjusted Admissions       2.0 %  0.7 % Adjusted Patient Days       1.6 %  1.7 % Revenue Per Adjusted Admission       8.7 %  9.8 % Revenue Per Adjusted Patient Day       9.1 %  8.8 %  UHS Consolidated   Fourth Quarter Ended  Twelve Months Ended 12/31/2024  12/31/2023  12/31/2024  12/31/2023  Revenues   $4,113,722  $3,703,546  $15,827,935  $14,281,976 EBITDA net of NCI   $620,166  $476,949  $2,247,864  $1,713,629 EBITDA Margin net of NCI   15.1 %  12.9 %  14.2 %  12.0 % Adjusted EBITDA net of NCI   $614,620  $473,433  $2,245,633  $1,741,910 Adjusted EBITDA Margin net of NCI   14.9 %  12.8 %  14.2 %  12.2 %  Cash Flow From Operations   $658,437  $452,431  $2,067,101  $1,267,797 Capital Expenditures    $245,945  $206,390  $943,810  $743,055 Days Sales Outstanding       50  57   Debt        $4,504,541  $4,912,469 UHS' Shareholders Equity       $6,666,207  $6,149,001 Debt / Total Capitalization       40.3 %  44.4 % Debt / EBITDA net of NCI (1)       2.00  2.87 Debt / Adjusted EBITDA net of NCI (1)       2.01  2.82 Debt / Cash From Operations (1)       2.18  3.87

(1) Latest 4 quarters.

Universal Health Services, Inc. Acute Care Hospital Services For the Three and Twelve months ended December 31, 2024 and 2023 (in thousands) (unaudited)  Same Facility Basis - Acute Care Hospital Services   Three months ended  Three months ended  Twelve months ended  Twelve months ended December 31, 2024  December 31, 2023  December 31, 2024  December 31, 2023 Amount  % of Net
Revenues   Amount  % of Net
Revenues   Amount  % of Net
Revenues   Amount  % of Net
Revenues  Net revenues  $2,210,767  100.0 %  $2,034,152  100.0 %  $8,565,845  100.0 %  $7,892,167  100.0 % Operating charges:  Salaries, wages and benefits  893,101  40.4 %  870,680  42.8 %  3,502,645  40.9 %  3,387,843  42.9 % Other operating expenses  623,513  28.2 %  559,985  27.5 %  2,378,512  27.8 %  2,164,069  27.4 % Supplies expense  347,034  15.7 %  338,815  16.7 %  1,358,636  15.9 %  1,315,527  16.7 % Depreciation and amortization  86,845  3.9 %  93,421  4.6 %  364,907  4.3 %  367,067  4.7 % Lease and rental expense  26,422  1.2 %  23,970  1.2 %  98,730  1.2 %  96,429  1.2 % Subtotal-operating expenses  1,976,915  89.4 %  1,886,871  92.8 %  7,703,430  89.9 %  7,330,935  92.9 % Income from operations  233,852  10.6 %  147,281  7.2 %  862,415  10.1 %  561,232  7.1 % Interest expense, net   2,976  0.1 %  (643)  (0.0) %  6,339  0.1 %  (2,501)  (0.0) % Other (income) expense, net   (775)  (0.0) %  1,277  0.1 %  (2,123)  (0.0) %  7,000  0.1 % Income before income taxes  $231,651  10.5 %  $146,647  7.2 %  $858,199  10.0 %  $556,733  7.1 %   All Acute Care Hospital Services   Three months ended  Three months ended  Twelve months ended  Twelve months ended December 31, 2024  December 31, 2023  December 31, 2024  December 31, 2023 Amount  % of Net
Revenues  Amount  % of Net
Revenues   Amount  % of Net
Revenues  Amount  % of Net
Revenues  Net revenues  $2,318,320  100.0 %  $2,087,503  100.0 %  $8,922,327  100.0 %  $8,081,402  100.0 % Operating charges:  Salaries, wages and benefits  899,241  38.8 %  871,182  41.7 %  3,511,359  39.4 %  3,406,060  42.1 % Other operating expenses  734,189  31.7 %  615,810  29.5 %  2,743,420  30.7 %  2,347,560  29.0 % Supplies expense  348,551  15.0 %  338,732  16.2 %  1,360,011  15.2 %  1,317,917  16.3 % Depreciation and amortization  89,048  3.8 %  93,479  4.5 %  368,096  4.1 %  367,644  4.5 % Lease and rental expense  26,422  1.1 %  23,960  1.1 %  99,060  1.1 %  96,589  1.2 % Subtotal-operating expenses  2,097,451  90.5 %  1,943,163  93.1 %  8,081,946  90.6 %  7,535,770  93.2 % Income from operations  220,869  9.5 %  144,340  6.9 %  840,381  9.4 %  545,632  6.8 % Interest expense, net   2,976  0.1 %  (643)  (0.0) %  6,339  0.1 %  (2,501)  (0.0) % Other (income) expense, net   (951)  (0.0) %  867  0.0 %  (1,305)  (0.0) %  7,788  0.1 % Income before income taxes  $218,844  9.4 %  $144,116  6.9 %  $835,347  9.4 %  $540,345  6.7 %

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, 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 Twelve months ended December 31, 2024 and 2023 (in thousands) (unaudited)  Same Facility - Behavioral Health Care Services   Three months ended  Three months ended  Twelve months ended  Twelve months ended December 31, 2024  December 31, 2023  December 31, 2024  December 31, 2023 Amount  % of Net
Revenues   Amount  % of Net
Revenues   Amount  % of Net
Revenues   Amount  % of Net
Revenues  Net revenues  $1,727,857  100.0 %  $1,555,700  100.0 %  $6,700,469  100.0 %  $6,050,491  100.0 % Operating charges:  Salaries, wages and benefits  911,047  52.7 %  851,507  54.7 %  3,590,985  53.6 %  3,346,357  55.3 % Other operating expenses  328,339  19.0 %  299,035  19.2 %  1,262,446  18.8 %  1,168,806  19.3 % Supplies expense  58,201  3.4 %  55,509  3.6 %  229,795  3.4 %  216,880  3.6 % Depreciation and amortization  55,050  3.2 %  48,879  3.1 %  204,144  3.0 %  188,237  3.1 % Lease and rental expense  11,560  0.7 %  11,135  0.7 %  46,468  0.7 %  43,819  0.7 % Subtotal-operating expenses  1,364,197  79.0 %  1,266,065  81.4 %  5,333,838  79.6 %  4,964,099  82.0 % Income from operations  363,660  21.0 %  289,635  18.6 %  1,366,631  20.4 %  1,086,392  18.0 % Interest expense, net   951  0.1 %  1,102  0.1 %  4,027  0.1 %  4,557  0.1 % Other (income) expense, net   (1,139)  (0.1) %  (1,132)  (0.1) %  (3,480)  (0.1) %  (3,426)  (0.1) % Income before income taxes  $363,848  21.1 %  $289,665  18.6 %  $1,366,084  20.4 %  $1,085,261  17.9 %   All Behavioral Health Care Services   Three months ended  Three months ended  Twelve months ended  Twelve months ended December 31, 2024  December 31, 2023  December 31, 2024  December 31, 2023 Amount  % of Net
Revenues  Amount  % of Net
Revenues   Amount  % of Net
Revenues  Amount  % of Net
Revenues  Net revenues  $1,792,761  100.0 %  $1,615,543  100.0 %  $6,895,051  100.0 %  $6,190,921  100.0 % Operating charges:  Salaries, wages and benefits  913,005  50.9 %  854,670  52.9 %  3,603,123  52.3 %  3,353,008  54.2 % Other operating expenses  393,496  21.9 %  353,353  21.9 %  1,447,503  21.0 %  1,303,311  21.1 % Supplies expense  58,243  3.2 %  55,713  3.4 %  230,274  3.3 %  217,310  3.5 % Depreciation and amortization  55,413  3.1 %  49,180  3.0 %  206,362  3.0 %  189,297  3.1 % Lease and rental expense  11,751  0.7 %  11,194  0.7 %  46,986  0.7 %  44,028  0.7 % Subtotal-operating expenses  1,431,908  79.9 %  1,324,110  82.0 %  5,534,248  80.3 %  5,106,954  82.5 % Income from operations  360,853  20.1 %  291,433  18.0 %  1,360,803  19.7 %  1,083,967  17.5 % Interest expense, net   951  0.1 %  1,102  0.1 %  4,027  0.1 %  4,558  0.1 % Other (income) expense, net   (1,139)  (0.1) %  (1,132)  (0.1) %  (3,547)  (0.1) %  (4,271)  (0.1) % Income before income taxes  $361,041  20.1 %  $291,463  18.0 %  $1,360,323  19.7 %  $1,083,680  17.5 %

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, 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 December 31, 2024 and 2023 (unaudited)  AS REPORTED:   ACUTE  BEHAVIORAL HEALTH 12/31/24  12/31/23  %  change  12/31/24  12/31/23  %  change  Hospitals owned and leased  28  27  3.7 %  331  333  -0.6 % Average licensed beds  6,707  6,674  0.5 %  24,220  24,285  -0.3 % Average available beds  6,535  6,502  0.5 %  24,120  24,185  -0.3 % Patient days  402,288  403,117  -0.2 %  1,588,205  1,575,040  0.8 % Average daily census  4,372.7  4,381.7  -0.2 %  17,263.1  17,120.0  0.8 % Occupancy-licensed beds  65.2 %  65.7 %  -0.7 %  71.3 %  70.5 %  1.1 % Occupancy-available beds  66.9 %  67.4 %  -0.7 %  71.6 %  70.8 %  1.1 % Admissions  84,245  82,918  1.6 %  115,435  113,604  1.6 % Length of stay  4.8  4.9  -1.8 %  13.8  13.9  -0.8 %  Inpatient revenue  $12,488,383  $11,408,639  9.5 %  $2,754,078  $2,647,158  4.0 % Outpatient revenue  8,645,327  7,566,625  14.3 %  285,076  275,128  3.6 % Total patient revenue  21,133,710  18,975,264  11.4 %  3,039,154  2,922,286  4.0 % Other revenue  251,226  234,117  7.3 %  83,795  83,153  0.8 % Gross revenue  21,384,936  19,209,381  11.3 %  3,122,949  3,005,439  3.9 % Total deductions  19,066,616  17,121,878  11.4 %  1,330,188  1,389,896  -4.3 % Net revenue   $2,318,320  $2,087,503  11.1 %  $1,792,761  $1,615,543  11.0 %   SAME FACILITY:   ACUTE  BEHAVIORAL HEALTH 12/31/24  12/31/23  %  change  12/31/24  12/31/23  %  change  Hospitals owned and leased  27  27  0.0 %  330  330  0.0 % Average licensed beds  6,657  6,674  -0.3 %  24,094  23,821  1.1 % Average available beds  6,485  6,502  -0.3 %  23,994  23,721  1.2 % Patient days  401,166  403,107  -0.5 %  1,578,242  1,550,485  1.8 % Average daily census  4,360.5  4,381.6  -0.5 %  17,154.8  16,853.1  1.8 % Occupancy-licensed beds  65.5 %  65.7 %  -0.2 %  71.2 %  70.7 %  0.6 % Occupancy-available beds  67.2 %  67.4 %  -0.2 %  71.5 %  71.0 %  0.6 % Admissions  83,943  82,918  1.2 %  114,684  112,232  2.2 % Length of stay  4.8  4.9  -1.7 %  13.8  13.8  -0.4 %

Universal Health Services, Inc. Selected Hospital Statistics For the Twelve Months ended December 31, 2024 and 2023 (unaudited)  AS REPORTED:   ACUTE  BEHAVIORAL HEALTH 12/31/24  12/31/23  %  change  12/31/24  12/31/23  %  change  Hospitals owned and leased  28  27  3.7 %  331  333  -0.6 % Average licensed beds  6,670  6,691  -0.3 %  24,367  24,224  0.6 % Average available beds  6,498  6,519  -0.3 %  24,280  24,124  0.6 % Patient days  1,601,579  1,576,074  1.6 %  6,446,651  6,336,927  1.7 % Average daily census  4,375.9  4,318.0  1.3 %  17,613.8  17,361.4  1.5 % Occupancy-licensed beds  65.6 %  64.5 %  1.7 %  72.3 %  71.7 %  0.9 % Occupancy-available beds  67.3 %  66.2 %  1.7 %  72.5 %  72.0 %  0.8 % Admissions  331,415  322,218  2.9 %  476,584  472,307  0.9 % Length of stay  4.8  4.9  -1.9 %  13.5  13.4  0.6 %  Inpatient revenue  $50,010,778  $44,687,035  11.9 %  $11,129,548  $10,648,996  4.5 % Outpatient revenue  34,198,778  29,858,874  14.5 %  1,118,336  1,087,595  2.8 % Total patient revenue  84,209,556  74,545,909  13.0 %  12,247,884  11,736,591  4.4 % Other revenue  998,650  948,994  5.2 %  330,977  303,546  9.0 % Gross revenue  85,208,206  75,494,903  12.9 %  12,578,861  12,040,137  4.5 % Total deductions  76,285,879  67,413,501  13.2 %  5,683,810  5,849,216  -2.8 % Net revenue   $8,922,327  $8,081,402  10.4 %  $6,895,051  $6,190,921  11.4 %   SAME FACILITY:   ACUTE  BEHAVIORAL HEALTH 12/31/24  12/31/23  %  change  12/31/24  12/31/23  %  change  Hospitals owned and leased  27  27  0.0 %  330  330  0.0 % Average licensed beds  6,657  6,644  0.2 %  24,165  24,000  0.7 % Average available beds  6,485  6,472  0.2 %  24,065  23,900  0.7 % Patient days  1,600,445  1,569,792  2.0 %  6,397,790  6,277,015  1.9 % Average daily census  4,372.8  4,300.8  1.7 %  17,480.3  17,197.3  1.6 % Occupancy-licensed beds  65.7 %  64.7 %  1.5 %  72.3 %  71.7 %  1.0 % Occupancy-available beds  67.4 %  66.5 %  1.5 %  72.6 %  72.0 %  0.9 % Admissions  331,113  321,155  3.1 %  472,798  468,260  1.0 % Length of stay  4.8  4.9  -2.0 %  13.5  13.4  0.7 %

Universal Health Services, Inc. Supplemental Non-GAAP Disclosures 2025 Operating Results Forecast (in thousands, except per share amounts)  Forecast For The Year Ending December 31, 2025 % Net    % Net Low  revenues  High  revenues Net revenues   $17,020,000    $17,364,000   Net income attributable to UHS (a)   $1,199,798    $1,297,005   Depreciation and amortization   639,574    639,574  Interest expense   150,253    150,253  Other (income) expense, net   (9,902)    (9,902)  Provision for income taxes   376,809    407,338  Adjusted EBITDA net of NCI (b)   $2,356,532  13.8 %  $2,484,268  14.3 %  Net income attributable to UHS, per diluted share (a)   $18.45    $19.95   Shares used in computing diluted earnings per share   65,017    65,017

(a) 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, the impact of ASU 2016-09, net of the impact of executive compensation limitations pursuant to IRC section 162(m), and other potential material items 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, other amounts that may be reflected in the current or prior year 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.Cision

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SOURCE Universal Health Services, Inc.

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