Consolidated Results of Operations - Three-month periods ended September 30, 2009 and 2008: KING OF PRUSSIA, Pa., Oct. 29 /PRNewswire-FirstCall/ -- Universal Health Services, Inc. (NYSE:UHS) announced today that its reported net income attributable to UHS was $51.1 million, or an increase of 41% to $1.03 per diluted share, during the third quarter of 2009 as compared to $37.0 million, or $.73 per diluted share, during the comparable quarter of the prior year. Net revenues increased 4% to $1.30 billion during the third quarter of 2009 as compared to $1.24 billion during the third quarter of 2008. "We are extremely pleased with these solid results in an extremely challenging environment," said Alan B. Miller, Chief Executive Officer. "The continued economic weakness continues to drive higher levels of uncompensated care and pressure certain markets in particular, but the overall balance in our acute portfolio and the very steady performance of our behavioral segment has contributed to another very satisfying performance this quarter." Consolidated Results of Operations - Nine-month periods ended September 30, 2009 and 2008: Reported net income attributable to UHS was $199.5 million, or $4.04 per diluted share, during the nine-month period ended September 30, 2009 as compared to $152.9 million, or $2.99 per diluted share, during the comparable nine-month period of the prior year. As indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information, included in our net income attributable to UHS during the nine-month period ended September 30, 2009, was a combined $9.8 million, or $.20 per diluted share, consisting of: (i) a favorable after-tax adjustment of $14.1 million, or $.29 per diluted share, resulting from a reduction to our professional and general liability self-insurance reserves relating to years prior to 2009 based upon a reserve analysis, partially offset by; (ii) an unfavorable discrete tax item of $4.3 million, or $.09 per diluted share, as discussed below. After adjusting the reported results for the nine-month period ended September 30, 2009 to neutralize the net favorable impact of the above-mentioned adjustments (there were no adjustments applicable to the comparable nine-month prior year period), our adjusted net income attributable to UHS was $189.7 million, or an increase of 28% to $3.84 per diluted share, during the nine-month period ended September 30, 2009, as compared to $152.9 million, or $2.99 per diluted share during the comparable nine-month period of the prior year. Net revenues increased 3% to $3.91 billion during the nine-month period ended September 30, 2009 as compared to $3.79 billion during the comparable nine-month period of the prior year. Acute Care Services - Three-month periods ended September 30, 2009 and 2008: At our acute care hospitals owned during both periods ("same facility basis"), inpatient admissions increased 0.5% while patient days decreased 2.2% during the third quarter of 2009, as compared to the third quarter of 2008. Net revenues at these facilities increased 5.3% during the third quarter of 2009 as compared to the comparable quarter of the prior year. At these facilities, net revenue per adjusted admission increased 2.6% while net revenue per adjusted patient day increased 5.5% during the third quarter of 2009 as compared to the comparable quarter of the prior year. On a same facility basis, the operating margin (net revenues less salaries, wages and benefits, other operating expenses, supplies expense and provision for doubtful accounts) at our acute care hospitals increased to 13.0% during the third quarter of 2009 as compared to 11.6% during the third quarter of 2008. We provide care to patients who meet certain financial or economic criteria without charge or at amounts substantially less than our established rates. Because we do not pursue collection of amounts determined to qualify as charity care, they are not reported in net revenues or in accounts receivable, net. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $169 million and $154 million during the three-month periods ended September 30, 2009 and 2008, respectively. Acute Care Services - Nine-month periods ended September 30, 2009 and 2008: During the nine-month period ended September 30, 2009, on a same facility basis, inpatient admissions to our acute care facilities increased 0.3% while patient days decreased 1.7%, as compared to the comparable period of the prior year. Net revenues at our acute care facilities increased 3.0% during the nine-month period ended September 30, 2009 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted admission increased 1.1% while net revenue per adjusted patient day increased 3.1% during the nine-month period ended September 30, 2009 as compared to the comparable period of the prior year. On a same facility basis, the operating margin at our acute care hospitals increased to 15.8% during the nine-month period ended September 30, 2009 as compared to 14.2% during the comparable period of the prior year. Our acute care hospitals provided charity care and uninsured discounts, based on charges at established rates, amounting to $509 million and $450 million during the nine-month periods ended September 30, 2009 and 2008, respectively. Behavioral Health Care Services - Three-month periods ended September 30, 2009 and 2008: At our behavioral health care facilities, on a same facility basis, inpatient admissions increased 2.1% and patient days increased 1.4% during the third quarter of 2009 as compared to the third quarter of 2008. Net revenues at these facilities increased 3.6% during the third quarter of 2009 as compared to the comparable quarter in the prior year. Net revenue per adjusted patient day at these facilities increased 2.2% during the third quarter of 2009 over the comparable prior year quarter. The operating margin at our behavioral health care facilities owned during both periods was 25.2% during the third quarter of 2009 as compared to 23.5% during the third quarter of 2008. Behavioral Health Care Services - Nine-month periods ended September 30, 2009 and 2008: During the nine-month period ended September 30, 2009, on a same facility basis, inpatient admissions to our behavioral health care facilities increased 1.6% while patient days increased 0.4%, as compared to the comparable period of the prior year. Net revenues at our behavioral health care facilities increased 3.5% during the nine-month period ended September 30, 2009 as compared to the comparable period of the prior year. At these facilities, net revenue per adjusted patient day increased 3.5% during the nine-month period ended September 30, 2009 as compared to the comparable prior year period. On a same facility basis, the operating margin at our behavioral health facilities increased to 25.5% during the nine-month period ended September 30, 2009 as compared to 24.1% during the comparable period of the prior year. 2009 Full Year Guidance Increased to $4.65 to $4.80 Per Diluted Share: Based upon the operating trends and financial results experienced during the first nine months of 2009, and subject to certain assumptions, provisions and adjustments, including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures, we are increasing our estimated range of earnings per diluted share from continuing operations for the year ended December 31, 2009 to $4.65 to $4.80 from the previously provided range of $4.40 to $4.55. This revised guidance range excludes the net favorable impact of $.20 per diluted share resulting from the above-mentioned items that were included in our results for the nine-month periods ended September 30, 2009 (consisting of the favorable impact resulting from the reduction to our professional and general liability self-insurance reserves and the unfavorable impact resulting from the discrete tax item). Settlement of South Texas Health System Affiliates Investigation: As previously disclosed, since November, 2005, the government had been investigating our South Texas Health System affiliates. The investigation was focused on certain arrangements which, the government believed, may have violated Medicare and Medicaid rules and regulations pertaining to payments to physicians and the solicitation of patient referrals from physicians and other matters relating to payments to various individuals which may have constituted improper payments. We have recently entered into a settlement agreement with the government in connection with this matter whereby we have agreed to pay $27.5 million and have entered into a corporate integrity agreement with respect to the South Texas Health System facilities. During 2008, we recorded a pre-tax charge of $25 million to establish a reserve in connection with this matter. Also, during the first six months of 2009 we: (i) reserved an additional $3 million in connection with this matter, and; (ii) recorded a $4.3 million unfavorable discrete tax item to reflect the estimated nondeductible portion of the amount reserved. We do not expect to incur any additional material charges in connection with this matter. Conference Call Information: We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on October 30, 2009. The dial-in number is 1-877-648-7971. A digital recording of the conference call will be available two hours after the completion of the conference call on October 30, 2009 and will continue through midnight on November 13, 2009. The recording can be accessed by calling 1-800-642-1687 and entering the conference ID number 35911099. This call will also be available live over the internet at our web site at http://www.uhsinc.com/. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://www.earnings.com/, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents at http://www.streetevents.com/. General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures: Universal Health Services, Inc. ("UHS") is one of the nation's largest hospital companies, operating acute care and behavioral health hospitals and ambulatory centers nationwide and in Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT). For additional information on the Company, visit our web site: http://www.uhsinc.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 in Item 7-Forward-Looking Statements and Risk Factors in our Form 10-K for the year ended December 31, 2008 and in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarterly period ended June 30, 2009), may cause the results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. 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. We believe that operating income, operating margin, adjusted income from continuing operations attributable to UHS, adjusted income from continuing operations attributable to UHS per diluted share, adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share and earnings before interest, taxes, depreciation and amortization ("EBITDA"), 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 in each year of items that are nonrecurring or non-operational in nature including items such as, but not limited to, gains on sales of assets and businesses, reserves for settlements, legal judgments and lawsuits 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, determined in accordance with GAAP, 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, 2008 and Report on Form 10-Q for the quarter ended June 30, 2009. 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. (more) Universal Health Services, Inc. ------------------------------- Consolidated Statements of Income --------------------------------- (in thousands, except per share amounts) (unaudited) Three months Nine months ended September 30, ended September 30, ------------------- ------------------- 2009 2008 2009 2008 ---- ---- ---- ---- Net revenues $1,295,109 $1,244,462 $3,911,168 $3,785,015 Operating charges: Salaries, wages and benefits 558,244 530,858 1,641,491 1,600,514 Other operating expenses 253,792 269,299 759,907 777,257 Supplies expense 171,652 170,743 522,030 524,246 Provision for doubtful accounts 141,086 125,003 380,734 365,446 Depreciation and amortization 51,205 48,465 153,424 142,544 Lease and rental expense 17,253 17,600 51,912 53,021 ------ ------ ------ ------ 1,193,232 1,161,968 3,509,498 3,463,028 --------- --------- --------- --------- Income from continuing operations before interest expense and income taxes 101,877 82,494 401,670 321,987 Interest expense, net 10,780 13,419 35,297 40,147 ------ ------ ------ ------ Income from continuing operations before income taxes 91,097 69,075 366,373 281,840 Provision for income taxes 32,043 22,536 131,308 95,352 ------ ------ ------- ------ Income from continuing operations 59,054 46,539 235,065 186,488 Income from continuing operations attributable to minority interests 7,980 9,316 35,557 34,022 ----- ----- ------ ------ Income from continuing operations attributable to UHS 51,074 37,223 199,508 152,466 (Loss) income from discontinued operations, net of income tax expense (a) - (226) - 434 ------- ------- -------- -------- Net income attributable to UHS $51,074 $36,997 $199,508 $152,900 ======= ======= ======== ======== Basic earnings per share attributable to UHS (b) From continuing operations $1.04 $0.73 $4.05 $2.99 From discontinued operations - - - 0.01 - - - ---- Total basic earnings per share $1.04 $0.73 $4.05 $3.00 ===== ===== ===== ===== Diluted earnings per share attributable to UHS (b) From continuing operations $1.03 $0.73 $4.04 $2.98 From discontinued operations - - - 0.01 - - - ---- Total diluted earnings per share $1.03 $0.73 $4.04 $2.99 ===== ===== ===== ===== Universal Health Services, Inc. ------------------------------- Footnotes to Consolidated Statements of Income ---------------------------------------------- (in thousands, except per share amounts) (unaudited) Three months Nine months ended September 30, ended September 30, ------------------- ------------------- 2009 2008 2009 2008 ---- ---- ---- ---- (a) Calculation of income from discontinued operations, net of income tax: ------------------------------ (Loss) income from discontinued operations, pre-tax - ($363) - $706 Income tax benefit (expense) - 137 - (272) -- --- -- ---- (Loss) income from discontinued operations, net of taxes - ($226) - $434 == ===== == ==== (b) Earnings per share calculation: ----------------------------------- Basic and diluted: ------------------ Income from continuing operations attributable to UHS $51,074 $37,223 $199,508 $152,466 Less: Net income attributable to unvested restricted share grants (217) (88) (912) (576) ---- --- ---- ---- Income from continuing operations - basic and diluted 50,857 37,135 198,596 151,890 (Loss) income from discontinued operations - (226) - 434 -- ---- -- --- Net income attributable to UHS - basic and diluted $50,857 $36,909 $198,596 $152,324 ======= ======= ======== ======== Weighted average number of common shares - basic 48,887 50,544 48,981 50,812 ------ ------ ------ ------ Basic earnings per share attributable to UHS: From continuing operations $1.04 $0.73 $4.05 $2.99 From discontinued operations - - - 0.01 -- -- -- ---- Total basic earnings per share $1.04 $0.73 $4.05 $3.00 ===== ===== ===== ===== Weighted average number of common shares 48,887 50,544 48,981 50,812 Add: Other share equivalents 365 134 189 88 --- --- --- -- Weighted average number of common shares and equiv. - diluted 49,252 50,678 49,170 50,900 ------ ------ ------ ------ Diluted earnings per share attributable to UHS: From continuing operations $1.03 $0.73 $4.04 $2.98 From discontinued operations - - - 0.01 -- -- -- ---- Total diluted earnings per share $1.03 $0.73 $4.04 $2.99 ===== ===== ===== ===== Universal Health Services, Inc. ------------------------------- Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule") -------------------------------------------------------------------- For the three months ended September 30, 2009 and 2008 ------------------------------------------------------ (in thousands, except per share amounts) (unaudited) Three months ended Three months ended September 30, 2009 September 30, 2008 ------------------ ------------------ Net revenues $1,295,109 100.0% $1,244,462 100.0% Operating charges: Salaries, wages and benefits 558,244 43.1% 530,858 42.7% Other operating expenses 253,792 19.6% 269,299 21.6% Supplies expense 171,652 13.3% 170,743 13.7% Provision for doubtful accounts 141,086 10.9% 125,003 10.0% ------- ---- ------- ---- 1,124,774 86.8% 1,095,903 88.1% --------- ---- --------- ---- Operating income/ margin 170,335 13.2% 148,559 11.9% Lease and rental expense 17,253 17,600 Income from continuing operations attributable to minority interests 7,980 9,316 ----- ----- Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA") 145,102 121,643 Depreciation and amortization 51,205 48,465 Interest expense, net 10,780 13,419 ------ ------ Income before income taxes 83,117 59,759 Provision for income taxes 32,043 22,536 ------ ------ Income from continuing operations attributable to UHS 51,074 37,223 Loss from discontinued operations, net of income taxes - (226) ------- ------- Net income attributable to UHS $51,074 $36,997 ======= ======= Three months ended Three months ended September 30, 2009 September 30, 2008 ------------------ ------------------ Per Per Amount Diluted Share Amount Diluted Share ------ ------------- ------ ------------- Calculation of Adjusted Income from Continuing Operations Attributable to UHS ------------------------ Income from continuing operations attributable to UHS $51,074 $1.03 $37,223 $0.73 Plus/minus adjustments: Reduction of reserve for professional and general liability self-insured claims, net of income taxes - - - - Unfavorable discrete tax item - - - - Subtotal after-tax adjustments to income from continuing operations attributable to UHS - - - - -- -- -- -- Adjusted income from continuing operations attributable to UHS $51,074 $1.03 $37,223 $0.73 ======= ===== ======= ===== Calculation of Adjusted Net Income Attributable to UHS ----------------------- Net income attributable to UHS $51,074 $1.03 $36,997 $0.73 After-tax adjustments to income from continuing operations attributable to UHS, as indicated above - - - - -- -- -- -- Adjusted net income attributable to UHS $51,074 $1.03 $36,997 $0.73 ======= ===== ======= ===== Universal Health Services, Inc. ------------------------------- Schedule of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedule") -------------------------------------------------------------------- For the nine months ended September 30, 2009 and 2008 ----------------------------------------------------- (in thousands, except per share amounts) (unaudited) Nine months ended Nine months ended September 30, 2009 September 30, 2008 ------------------ ------------------ Net revenues $3,911,168 100.0% $3,785,015 100.0% Operating charges: Salaries, wages and benefits 1,641,491 42.0% 1,600,514 42.3% Other operating expenses 759,907 19.4% 777,257 20.5% Supplies expense 522,030 13.3% 524,246 13.9% Provision for doubtful accounts 380,734 9.7% 365,446 9.7% ------- --- ------- --- 3,304,162 84.5% 3,267,463 86.3% --------- ---- --------- ---- Operating income/ margin 607,006 15.5% 517,552 13.7% Lease and rental expense 51,912 53,021 Income from continuing operations attributable to minority interests 35,557 34,022 ------ ------ Earnings before, depreciation and amortization, interest expense, and income taxes ("EBITDA") 519,537 430,509 Depreciation and amortization 153,424 142,544 Interest expense, net 35,297 40,147 ------ ------ Income before income taxes 330,816 247,818 Provision for income taxes 131,308 95,352 ------- ------ Income from continuing operations attributable to UHS 199,508 152,466 Income from discontinued operations, net of income taxes - 434 -------- -------- Net income attributable to UHS $199,508 $152,900 ======== ======== Nine months ended Nine months ended September 30, 2009 September 30, 2008 ------------------ ------------------ Per Per Amount Diluted Share Amount Diluted Share ------ ------------- ------ ------------- Calculation of Adjusted Income from Continuing Operations Attributable to UHS ------------------------------ Income from continuing operations attributable to UHS $199,508 $4.04 $152,466 $2.98 Plus/minus adjustments: Reduction of reserve for professional and general liability self-insured claims, net of income taxes (14,168) (0.29) - - Unfavorable discrete tax item 4,331 0.09 Subtotal after-tax adjustments to income from continuing operations attributable to UHS (9,837) (0.20) - - ------ ----- - - Adjusted income from continuing operations attributable to UHS $189,671 $3.84 $152,466 $2.98 ======== ===== ======== ===== Calculation of Adjusted Net Income Attributable to UHS --------------------------- Net income attributable to UHS $199,508 $4.04 $152,900 $2.99 After-tax adjustments to income from continuing operations attributable to UHS, as indicated above (9,837) (0.20) - - ------ ----- -- -- Adjusted net income attributable to UHS $189,671 $3.84 $152,900 $2.99 ======== ===== ======== ===== Universal Health Services, Inc. ------------------------------- Condensed Consolidated Balance Sheets ------------------------------------- (in thousands, unaudited) (unaudited) September 30, December 31, 2009 2008 ---- ---- Assets Current assets: Cash and cash equivalents $13,630 $5,460 Accounts receivable, net 596,232 625,437 Supplies 80,726 76,043 Other current assets 35,365 26,375 Deferred income taxes 47,457 34,522 Current assets held for sale 21,580 21,580 ------ ------ Total current assets 794,990 789,417 ------- ------- Property and equipment 3,644,113 3,355,974 Less: accumulated depreciation (1,386,112) (1,255,682) ---------- ---------- 2,258,001 2,100,292 --------- --------- Other assets: Goodwill 732,685 732,937 Deferred charges 9,666 10,428 Other 106,167 109,388 ------- ------- $3,901,509 $3,742,462 ========== ========== Liabilities and Stockholders' Equity Current liabilities: Current maturities of long-term debt $2,918 $8,708 Accounts payable and accrued liabilities 629,033 542,008 Federal and state taxes - 10,409 -- ------ Total current liabilities 631,951 561,125 ------- ------- Other noncurrent liabilities 396,678 407,652 Long-term debt 852,270 990,661 Deferred income taxes 52,208 12,439 UHS common stockholders' equity 1,728,194 1,543,850 Minority interest 240,208 226,735 ------- ------- Total equity 1,968,402 1,770,585 ---------- ---------- $3,901,509 $3,742,462 ========== ========== Universal Health Services, Inc. ------------------------------- Consolidated Statements of Cash Flows ------------------------------------- (in thousands) (unaudited) Nine months ended September 30, ------------------- 2009 2008 ---- ---- Cash Flows from Operating Activities: Net income attributable to UHS $199,508 $152,900 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation & amortization 153,424 144,711 Changes in assets & liabilities, net of effects from acquisitions and dispositions: Accounts receivable 20,747 (7,796) Construction management and other receivable 13,697 (1,674) Accrued interest 10,712 11,290 Accrued and deferred income taxes 10,824 (3,418) Other working capital accounts 40,434 35,941 Other assets and deferred charges 3,716 16,317 Other 7,541 12,354 Minority interest in earnings of consolidated entities 35,557 34,022 Accrued insurance expense, net of commercial premiums paid 31,321 58,127 Payments made in settlement of self-insurance claims (43,206) (38,011) ------- ------- Net cash provided by operating activities 484,275 414,763 ------- ------- Cash Flows from Investing Activities: Property and equipment additions, net of disposals (278,825) (239,880) Acquisition of property and business (9,006) (14,775) Proceeds received from sales of assets 818 32,634 Settlement proceeds received related to prior year acquisitions, net of expenses - 1,539 Investment in joint-venture - (1,270) Purchase of minority ownership interest in majority owned business - (1,058) -- ------ Net cash used in investing activities (287,013) (222,810) -------- -------- Cash Flows from Financing Activities: Reduction of long-term debt (143,844) (219,311) Additional borrowings 170 150,155 Repurchase of common shares (15,467) (104,436) Dividends paid (11,821) (12,147) Issuance of common stock 1,568 1,751 Profit distributions related to minority interests in majority owned businesses (19,698) (18,820) Capital contributions from minority member - 2,306 -- ----- Net cash used in financing activities (189,092) (200,502) -------- -------- Increase (decrease) in cash and cash equivalents 8,170 (8,549) Cash and cash equivalents, beginning of period 5,460 16,354 ----- ------ Cash and cash equivalents, end of period $13,630 $7,805 ======= ====== Supplemental Disclosures of Cash Flow Information: Interest paid $32,357 $34,198 ======= ======= Income taxes paid, net of refunds $120,429 $97,907 ======== ======= Universal Health Services, Inc. Supplemental Statistical Information (un-audited) % Change % Change Quarter Ended 9 months ended Same Facility: 9/30/2009 9/30/2009 -------------- --------- --------- Acute Care Hospitals -------------------- Revenues 5.3% 3.0% Adjusted Admissions 2.6% 1.9% Adjusted Patient Days -0.1% -0.1% Revenue Per Adjusted Admission 2.6% 1.1% Revenue Per Adjusted Patient Day 5.5% 3.1% Behavioral Health Hospitals ----------------- Revenues 3.6% 3.5% Adjusted Admissions 2.0% 1.1% Adjusted Patient Days 1.4% -0.1% Revenue Per Adjusted Admission 1.5% 2.3% Revenue Per Adjusted Patient Day 2.2% 3.5% UHS Consolidated Third Quarter Ended Nine months Ended ---------------- ------------------- ----------------- 9/30/2009 9/30/2008 9/30/2009 9/30/2008 --------- --------- --------- --------- Revenues $1,295,109 $1,244,462 $3,911,168 $3,785,015 EBITDA (1) 145,102 121,643 519,537 430,509 EBITDA Margin (1) 11.2% 9.8% 13.3% 11.4% Cash Flow From Operations 183,436 204,689 484,275 414,763 Days Sales Outstanding 42 46 42 46 Capital Expenditures 95,577 83,818 278,825 239,880 Debt 855,188 943,721 Shareholders Equity 1,728,194 1,566,314 Debt / Total Capitalization 33.1% 37.6% Debt / EBITDA (2) 1.31 1.70 Debt / Cash From Operations (2) 1.61 2.14 Acute Care EBITDAR Margin (3) 13.0% 11.6% 15.8% 14.2% Behavioral Health EBITDAR Margin (3) 24.5% 23.0% 24.9% 23.5% (1) Net of Minority Interest (2) Latest 4 quarters (3) Before Corporate overhead allocation, minority interest and prior year self insurance reserve adjustment booked in 2009 UNIVERSAL HEALTH SERVICES, INC. SELECTED HOSPITAL STATISTICS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009 AS REPORTED: ------------ ACUTE (1) BEHAVIORAL HEALTH 09/30/09 09/30/08 % change 09/30/09 09/30/08 % change -------- -------- -------- -------- -------- -------- Hospitals owned and leased 21 21 0.0% 84 81 3.7% Average licensed beds 5,465 5,450 0.3% 7,977 7,618 4.7% Patient days 280,269 286,552 -2.2% 532,228 519,362 2.5% Average daily census 3,046.4 3,114.7 -2.2% 5,785.1 5,645.2 2.5% Occupancy- licensed beds 55.7% 57.2% -2.5% 72.5% 74.1% -2.1% Admissions 65,082 64,738 0.5% 35,005 32,786 6.8% Length of stay 4.3 4.4 -2.7% 15.2 15.8 -4.0% Inpatient revenue $2,380,103 $2,259,640 5.3% $524,713 $488,986 7.3% Outpatient revenue 1,038,772 917,982 13.2% 68,577 61,358 11.8% Total patient revenue 3,418,875 3,177,622 7.6% 593,290 550,344 7.8% Other revenue 16,848 18,019 -6.5% 7,357 8,183 -10.1% Gross hospital revenue 3,435,723 3,195,641 7.5% 600,647 558,527 7.5% Total deductions 2,488,456 2,296,314 8.4% 271,315 247,695 9.5% Net hospital revenue $947,267 $899,327 5.3% $329,332 $310,832 6.0% SAME FACILITY: -------------- ACUTE (1) BEHAVIORAL HEALTH 09/30/09 09/30/08 % change 09/30/09 09/30/08 % change -------- -------- -------- -------- -------- -------- Hospitals owned and leased 21 21 0.0% 79 79 0.0% Average licensed beds 5,465 5,450 0.3% 7,697 7,547 2.0% Patient days 280,269 286,552 -2.2% 520,564 513,231 1.4% Average daily census 3,046.4 3,114.7 -2.2% 5,658.3 5,578.6 1.4% Occupancy- licensed beds 55.7% 57.2% -2.5% 73.5% 73.9% -0.5% Admissions 65,082 64,738 0.5% 33,448 32,767 2.1% Length of stay 4.3 4.4 -2.7% 15.6 15.7 -0.6% (1) Acute care hospitals located in New Orleans and Central Montgomery Medical Center are excluded in current and prior years. (2) Centennial Peaks, Coastal Behavioral, Shenandoah Valley and Springwoods Behavioral are excluded in both current and prior years. Central Florida and Summit Ridge Hospital is included from September 1st through year to date. Broad Horizons, Highlander RTC, Midwest Youth and Vista Group Homes are excluded in both current and prior years. UNIVERSAL HEALTH SERVICES, INC. SELECTED HOSPITAL STATISTICS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AS REPORTED: ------------ ACUTE (1) BEHAVIORAL HEALTH 09/30/09 09/30/08 % change 09/30/09 09/30/08 % change -------- -------- -------- -------- -------- -------- Hospitals owned and leased 21 21 0.0% 84 81 3.7% Average licensed beds 5,465 5,452 0.2% 7,876 7,629 3.2% Patient days 877,224 892,689 -1.7% 1,574,698 1,580,086 -0.3% Average daily census 3,213.3 3,258.0 -1.4% 5,768.1 5,766.7 0.0% Occupancy- licensed beds 58.8% 59.8% -1.6% 73.2% 75.6% -3.1% Admissions 199,226 198,685 0.3% 103,025 98,228 4.9% Length of stay 4.4 4.5 -2.0% 15.3 16.1 -5.0% Inpatient revenue $7,430,016 $6,999,680 6.1% $1,552,640 $1,467,036 5.8% Outpatient revenue 3,081,566 2,748,382 12.1% 209,218 193,281 8.2% Total patient revenue 10,511,582 9,748,062 7.8% 1,761,858 1,660,317 6.1% Other revenue 53,625 55,733 -3.8% 23,608 26,234 -10.0% Gross hospital revenue 10,565,207 9,803,795 7.8% 1,785,466 1,686,551 5.9% Total deductions 7,705,648 7,027,568 9.6% 801,392 745,545 7.5% Net hospital revenue $2,859,559 $2,776,227 3.0% $984,074 $941,006 4.6% SAME FACILITY: -------------- ACUTE (1) BEHAVIORAL HEALTH 09/30/09 09/30/08 % change 09/30/09 09/30/08 % change -------- -------- -------- -------- -------- -------- Hospitals owned and leased 21 21 0.0% 79 79 0.0% Average licensed beds 5,465 5,452 0.2% 7,630 7,476 2.1% Patient days 877,231 892,665 -1.7% 1,549,466 1,544,017 0.4% Average daily census 3,213.3 3,257.9 -1.4% 5,675.7 5,635.1 0.7% Occupancy- licensed beds 58.8% 59.8% -1.6% 74.4% 75.4% -1.3% Admissions 199,226 198,685 0.3% 99,584 98,054 1.6% Length of stay 4.4 4.5 -2.0% 15.6 15.7 -1.2% (1) Acute care hospitals located in New Orleans and Central Montgomery Medical Center are excluded in current and prior years. (2) Centennial Peaks, Coastal Behavioral, Shenandoah Valley and Springwoods Behavioral are excluded in both current and prior years. Central Florida and Summit Ridge Hospital is included from September 1st through year to date. Broad Horizons, Highlander RTC, Midwest Youth and Vista Group Homes are excluded in both current and prior years. DATASOURCE: Universal Health Services, Inc. CONTACT: Steve Filton, Chief Financial Officer of Universal Health Services, Inc., +1-610-768-3300 Web Site: http://www.uhsinc.com/

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