Universal Health Services, Inc. Reports 2018 Fourth Quarter And Full Year Financial Results And 2019 Full Year Earnings Guidance - PRNewswire

KING OF PRUSSIA, Pa., Feb. 27, 2019 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $158.1 million, or $1.70 per diluted share, during the fourth quarter of 2018 as compared to $219.6 million, or $2.31 per diluted share, during the comparable quarter of 2017.  Net revenues increased 4.2% to $2.754 billion during the fourth quarter of 2018 as compared to $2.643 billion during the fourth quarter of 2017.

For the three-month period ended December 31, 2018, our adjusted net income attributable to UHS, as calculated on the attached Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), was $220.1 million, or $2.37 per diluted share, as compared to $189.6 million, or $2.00 per diluted share, during the fourth quarter of 2017. 

Included in our reported and our adjusted net income attributable to UHS during the fourth quarter of 2018, is a pre-tax unrealized loss of $12.5 million, or $.10 per diluted share (included in "Other (income) expense, net"), resulting from a decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale.  

As reflected on the Supplemental Schedule, included in our reported results during the fourth quarter of 2018, is a net aggregate unfavorable after-tax impact of $62.0 million, or $.67 per diluted share, consisting primarily of the following: (i) an unfavorable after-tax impact of $24.5 million, or $.26 per diluted share, resulting from a $31.9 million pre-tax increase in the reserve established in connection with the discussions with the Department of Justice ("DOJ Reserve"), as discussed below, and; (ii) an unfavorable after-tax impact of $37.7 million, or $.41 per diluted share, resulting from a $49.3 million provision for intangible asset impairment, as discussed below.  

As reflected on the Supplemental Schedule, included in our reported results during the fourth quarter of 2017, is a net aggregate favorable after-tax impact of $30.0 million, or $.31 per diluted share, consisting of: (i) a favorable after-tax impact of $30.0 million, or $.32 per diluted share, resulting from a reduction in our net deferred income tax liability recorded in connection with the Tax Cuts and Jobs Act of 2017 (the "TCJA-17") which reduced the U.S. federal corporate tax rate to 21% from 35%, effective January 1, 2018; (ii) a favorable after-tax impact of $13.5 million, or $.14 per diluted share, resulting from our January 1, 2017 adoption of ASU 2016-09, "Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), as discussed below; (iii) an unfavorable after-tax impact of $11.3 million, or $.12 per diluted share, due to the one-time repatriation tax incurred pursuant to the TCJA-17 (incurred in connection with our behavioral health care facilities located in the U.K. and Puerto Rico), and; (iv) an unfavorable after-tax impact of $2.3 million, or $.03 per diluted share, related to the depreciation and amortization expense recorded in connection with the implementation of electronic health records ("EHR") applications at our acute care hospitals.

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 $359.9 million during the fourth quarter of 2018 as compared to $447.0 million during the fourth quarter of 2017.  Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of the above-mentioned $31.9 million pre-tax increase in the DOJ Reserve, the $49.3 million provision for intangible asset impairment and $12.5 million of other expense, net, was $453.6 million during the fourth quarter of 2018 as compared to $447.0 million during the fourth quarter of 2017.

Consolidated Results of Operations, As Reported and As Adjusted  – Twelve-month periods ended December 31, 2018 and 2017:
Reported net income attributable to UHS was $779.7 million, or $8.31 per diluted share, during the twelve-month period ended December 31, 2018 as compared to $752.3 million, or $7.81 per diluted share, during the full year of 2017.  Net revenues increased 3.5% to $10.772 billion during 2018 as compared to $10.410 billion during 2017.

For the twelve-month period ended December 31, 2018, our adjusted net income attributable to UHS, as calculated on the attached Supplemental Schedule, was $894.4 million, or $9.53 per diluted share, as compared to $725.5 million, or $7.53 per diluted share, during the full year of 2017. 

Included in our reported and our adjusted net income attributable to UHS during the full year of 2018, is a pre-tax unrealized gain of $6.0 million, or $.05 per diluted share (included in "Other (income) expense, net"), resulting from an increase in the market value of shares of certain marketable securities held for investment and classified as available for sale.  

As reflected on the Supplemental Schedule, included in our reported results during the twelve-month period ended December 31, 2018, is a net aggregate unfavorable after-tax impact of $114.6 million, or $1.22 per diluted share, consisting of: (i) an unfavorable after-tax impact of $78.2 million, or $.83 per diluted share, resulting from a $102.3 million pre-tax increase in the DOJ Reserve, as discussed below; (ii) an unfavorable after-tax impact of $37.7 million, or $.40 per diluted share, resulting from a $49.3 million provision for intangible asset impairment, as discussed below, partially offset by; (iii) a favorable after-tax impact of $1.2 million, or $.01 per diluted share, resulting from our adoption of ASU 2016-09.  

As reflected on the Supplemental Schedule, included in our reported results during the full year of 2017, is a net aggregate favorable after-tax impact of $26.8 million, or $.28 per diluted share, consisting of: (i) a favorable after-tax impact of $30.0 million, or $.32 per diluted share, resulting from a reduction in our net deferred income tax liability resulting from lower federal income tax rates beginning January 1, 2018 pursuant to the TCJA-17; (ii) a favorable after-tax impact of $22.1 million, or $.23 per diluted share, resulting from our January 1, 2017 adoption of ASU 2016-09, as discussed below; (iii) an unfavorable after-tax impact of $11.3 million, or $.12 per diluted share, due to the one-time repatriation tax incurred pursuant to the TCJA of 2017, and; (iv) an unfavorable after-tax impact of $14.0 million, or $.15 per diluted share, related to the depreciation and amortization expense recorded in connection with the implementation of EHR applications at our acute care hospitals.

As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI"), was $1.624 billion during the full year of 2018 as compared to $1.709 billion during the 2017 full year. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of the $102.3 million pre-tax increase in the DOJ Reserve, the $49.3 million provision for intangible asset impairment and $14.2 million of other income, net, was $1.762 billion during the twelve-month period ended December 31, 2018 as compared to $1.709 billion during the twelve-month period of 2017.

Acute Care Services – Three and twelve-month periods ended December 31, 2018 and 2017:
During the fourth quarter of 2018, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased 2.2% and adjusted patient days increased 4.8%, as compared to the fourth quarter of 2017. At these facilities, net revenue per adjusted admission increased 4.2% while net revenue per adjusted patient day increased 1.6% during the fourth quarter of 2018 as compared to the comparable quarter of 2017. Net revenues from our acute care services on a same facility basis increased 4.7% during the fourth quarter of 2018 as compared to the comparable quarter of the prior year.

During the twelve-month period ended December 31, 2018, at our acute care hospitals on a same facility basis, adjusted admissions increased 2.1% and adjusted patient days increased 4.8%, as compared to the full year of 2017. At these facilities, net revenue per adjusted admission increased 4.1% while net revenue per adjusted patient day increased 1.4% during the full year of 2018 as compared to the 2017 full year. Net revenues from our acute care services on a same facility basis increased 4.6% during 2018 as compared to the prior year.

Behavioral Health Care Services – Three and twelve-month periods ended December 31, 2018 and 2017:
During the fourth quarter of 2018, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 4.5% while adjusted patient days increased 1.2% as compared to the fourth quarter of 2017. At these facilities, net revenue per adjusted admission decreased 2.1% while net revenue per adjusted patient day increased 1.1% during the fourth quarter of 2018 as compared to the comparable quarter in 2017. On a same facility basis, our behavioral health care services' net revenues increased 2.0% during the fourth quarter of 2018 as compared to the fourth quarter of 2017.   

During the twelve-month period ended December 31, 2018, at our behavioral health care facilities on a same facility basis, adjusted admissions increased 3.0% while adjusted patient days increased 0.5% as compared to the full year of 2017. At these facilities, net revenue per adjusted admission was unchanged while net revenue per adjusted patient day increased 2.5% during the full year of 2018 as compared to 2017. On a same facility basis, our behavioral health care services' net revenues increased 2.6% during the twelve-month period of 2018 as compared to the 2017 full year.   

Net Cash Provided by Operating Activities and Share Repurchase Program:
For the twelve months ended December 31, 2018, our net cash provided by operating activities was $1.341 billion as compared to $1.183 billion generated during the full year of 2017. The net increase of $158 million was due to: (i) a $130 million favorable change in cash flows from foreign currency forward exchange contracts related to our investments in the U.K; (ii) a favorable change of $91 million due to an increase in net income plus/minus depreciation and amortization expense, stock-based compensation, a net gain on sales of assets and businesses, costs related to extinguishment of debt and provision for intangible asset impairment; (iii) an unfavorable change of $48 million in accrued and deferred income taxes; (iv) a favorable change of $40 million in other working capital accounts resulting primarily from changes in accrued expenses due to timing of disbursements; (v) an unfavorable change of $18 million in accounts receivable, and; (vi) $37 million of other combined net unfavorable changes.

In December of 2018, our Board of Directors authorized a $500 million increase to our stock repurchase program, which increased the aggregate authorization to $1.7 billion from the previous $1.2 billion authorization approved during 2017, 2016 and 2014. Pursuant to this program, we may purchase shares of our Class B Common Stock, from time to time as conditions allow, on the open market or in negotiated private transactions. There is no expiration date for our stock repurchase programs.

In conjunction with our stock repurchase program, during the fourth quarter of 2018, we have repurchased approximately 1.22 million shares at an aggregate cost of $149.3 million (approximately $122 per share), $16.6 million of which was paid in early January, 2019. During the twelve-month period of 2018, we have repurchased approximately 3.32 million shares at an aggregate cost of $401.3 million (approximately $121 per share), $16.6 million of which was paid in early January, 2019. Since inception of the program in 2014 through December 31, 2018, we have repurchased approximately 10.67 million shares at an aggregate cost of $1.24 billion (approximately $116 per share). 

2019 Operating Results Forecast:
Reflected below is our 2019 guidance range for consolidated net revenues, earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI"), adjusted earnings per diluted share ("Adjusted EPS-diluted") and capital expenditures.  Adjusted EPS-diluted and EBITDA net of NCI, are non-GAAP financial measures and should be examined in connection with net income determined in accordance with GAAP as presented in the consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2018. Please see the Supplemental Non-GAAP Disclosures - 2019 Operating Results Forecast schedule as included herein for additional information and a reconciliation to the financial forecasts as computed in accordance with GAAP. 

	For the Year Ended
	December 31, 2019
	Low	High
Net revenues	$11.213 billion	$11.361 billion
EBITDA net of NCI	$1.826 billion	$1.909 billion
Adjusted EPS-diluted	$9.70 per share	$10.40 per share
Capital expenditures	$675 million	$725 million

Our 2019 guidance contains a number of assumptions including, but not limited to, the following:

• The 2019 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 reserve (including the income tax deductibility assumptions) established in connection with the discussions with the Department of Justice, pre-tax unrealized gains/losses resulting from increases/decreases in the market value of shares of certain marketable securities held for investment and classified as available for sale, our adoption of ASU 2016-09, 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, impairment of long-lived and intangible assets, and other amounts that may be reflected in the current financial statements that related to prior periods and the impact of share repurchases that differ from included 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 $11.213 billion to $11.361 billion representing an increase of approximately 4.1% to 5.5% over our 2018 net revenues of approximately $10.772 billion.
• The Adjusted EPS-diluted guidance range represents an increase of approximately 2% to 9% over the adjusted net income attributable to UHS of $9.53 per diluted share for the year ended December 31, 2018, as calculated on the attached Supplemental Schedule.
• The guidance range, like our adjusted earnings for 2018, as discussed above, excludes changes in the reserve established in connection with the Department of Justice, pre-tax unrealized gains/losses resulting from increases/decreases in the market value of shares of certain marketable securities held for investment and classified as available for sale, and the impact on our provision for income taxes and net income attributable to UHS resulting from of our adoption of ASU 2016-09, as discussed below.

Conference call information:
We will hold a conference call for investors and analysts at 9:00 a.m. eastern time on February 28, 2019. The dial-in number is 1-877-648-7971. 

A live broadcast of the conference call will be available on our website at www.uhsinc.com.  Also, a replay of the call will be available following the conclusion of the live call and will be available for one full year.

DOJ Reserve:
During the three and twelve-month periods ended December 31, 2018, we recorded pre-tax increases of approximately $31.9 million and $102.3 million, respectively, to the reserve established in connection with the civil aspects of the government's investigation of certain of our behavioral health care facilities, increasing the aggregate pre-tax reserve to approximately $123 million as of December 31, 2018.  Changes in the reserve may be required in future periods as discussions with the Department of Justice continue and additional information becomes available.  We cannot predict the ultimate resolution of this matter and therefore can provide no assurance that final amounts paid in settlement or otherwise, if any, or associated costs, as well as the income tax deductibility of payments, will not differ materially from our established reserve and assumptions related to income tax deductibility. Please see Item 3-Legal Proceedings in our Form 10-K for the year ended December 31, 2018 for additional disclosure in connection with this matter.

Provision for Intangible Assets Impairment
During 2018, we recorded a pre-tax $49.3 million provision for asset impairment to reduce the carrying value of a tradename intangible asset to approximately $75 million from approximately $124 million as previously recorded in connection with our 2015 acquisition of Foundations Recovery Network, L.L.C. ("Foundations"). The intangible asset impairment charge, which is included in other operating expenses in our 2018 consolidated statements of income, was recorded after evaluation of the estimated fair value of the Foundations' tradename for its existing facilities, consisting of 4 inpatient and 12 outpatient facilities as of December 31, 2018, as well as estimated planned de novos. This asset impairment charge was impacted by the following: (i) the lost future revenue and cash flows resulting from the permanent closure of a Foundations' inpatient facility located in Malibu, California that was severely damaged in the California wildfires during the fourth quarter of 2018; (ii) reduction in growth rates of projected future patient volumes, revenues and operating cash flows based upon pressures on reimbursement rates experienced from certain payers and competitive pressures experienced in certain markets, and; (iii) revisions made to the number and timing of planned de novo facilities.           

Adoption of New Revenue Recognition Standard:
On January 1, 2018, we adopted, using the modified retrospective approach, ASU 2014-09 and ASU 2016-08, "Revenue from Contracts with Customers (Topic 606)" and "Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)", respectively, which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The most significant change from the adoption of the new standard relates to our estimation for the allowance for doubtful accounts. Under the previous standards, our estimate for amounts not expected to be collected based upon our historical experience, were reflected as provision for doubtful accounts, included within net revenue. Under the new standard, our estimate for amounts not expected to be collected based on historical experience will continue to be recognized as a reduction to net revenue, however, not reflected separately as provision for doubtful accounts. Under the new standard, subsequent changes in estimate of collectability due to a change in the financial status of a payer, for example a bankruptcy, will be recognized as bad debt expense in operating charges. The adoption of this ASU in 2018, and amounts recognized as bad debt expense and included in other operating expenses, did not have a material impact on our consolidated financial statements.      

Tax Cuts and Jobs Act of 2017:
Effective January 1, 2018, our provision for income taxes, net income attributable to UHS, and net income attributable to UHS per diluted share, were favorably impacted by the Tax Cuts and Jobs Act of 2017 which made broad and complex changes to the U.S. tax code including, among other things, reducing the U.S. federal corporate tax rate from 35% to 21%.  

General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures:
One of the nation's largest and most respected hospital companies, Universal Health Services, Inc. ("UHS") has built an impressive record of achievement and performance. Growing steadily since its inception into an esteemed Fortune 500 corporation, UHS today has annual revenue exceeding $10.7 billion. In 2019, UHS was again recognized as one of the World's Most Admired Companies by Fortune; in 2018, ranked #268 on the Fortune 500; and in 2017, listed #275 in Forbes inaugural ranking of America's Top 500 Public Companies.

Our operating philosophy is as effective today as it was 40 years ago, enabling us to provide compassionate care to our patients and their loved ones: Build or acquire high quality hospitals in rapidly growing markets, invest in the people and equipment needed to allow each facility to thrive, and become the leading healthcare provider in each community we serve.

Headquartered in King of Prussia, PA, UHS has more than 87,000 employees and through its subsidiaries operates 350 inpatient acute care hospitals and behavioral health facilities and 37 outpatient and other facilities located in 37 states, Washington, D.C., Puerto Rico and the United Kingdom. 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, 2018), 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 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 in each year of material items impacting our net income attributable to UHS, such as, changes in the reserve established in connection with our discussions with the Department of Justice, our adoption of ASU 2016-09, impairments of long-lived and intangible assets, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, 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 Reports on Form 10-K for the year ended December 31, 2018. 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,
	2018		2017		2018		2017
Net revenues before provision for doubtful accounts			$2,849,971				$11,278,942
Less: Provision for doubtful accounts			207,184				869,077
Net revenues	$2,754,496		2,642,787		$10,772,278		10,409,865
Operating charges:
Salaries, wages and benefits	1,331,704		1,254,851		5,254,536		4,980,637
Other operating expenses	717,942		624,986		2,614,687		2,493,062
Supplies expense	300,791		284,854		1,168,654		1,105,096
Depreciation and amortization	118,075		113,638		453,045		447,765
Lease and rental expense	26,162		25,714		106,094		103,127
	2,494,674		2,304,043		9,597,016		9,129,687
Income from operations	259,822		338,744		1,175,262		1,280,178
Interest expense, net	39,874		36,786		154,956		145,169
Other (income) expense, net	12,498		0		(14,219)		0
Income before income taxes	207,450		301,958		1,034,525		1,135,009
Provision for income taxes	43,828		76,923		236,642		363,697
Net income	163,622		225,035		797,883		771,312
Less:  Net income attributable to
noncontrolling interests ("NCI")	5,547		5,426		18,178		19,009
Net income attributable to UHS	$158,075		$219,609		$779,705		$752,303
Basic earnings per share attributable to UHS (a)	$1.71		$2.32		$8.35		$7.86
Diluted earnings per share attributable to UHS (a)	$1.70		$2.31		$8.31		$7.81

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,
	2018		2017		2018		2017
Basic and diluted:
Net income attributable to UHS	$158,075		$219,609		$779,705		$752,303
Less: Net income attributable to unvested restricted share grants	(278)		(105)		(1,091)		(362)
Net income attributable to UHS - basic and diluted	$157,797		$219,504		$778,614		$751,941
Weighted average number of common shares - basic	92,187		94,530		93,276		95,652
Basic earnings per share attributable to UHS:	$1.71		$2.32		$8.35		$7.86
Weighted average number of common shares	92,187		94,530		93,276		95,652
Add: Other share equivalents	519		379		474		673
Weighted average number of common shares and equiv. - diluted	92,706		94,909		93,750		96,325
Diluted earnings per share attributable to UHS:	$1.70		$2.31		$8.31		$7.81

Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Three Months ended December 31, 2018 and 2017
(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, 2018		revenues		December 31, 2017		revenues
Net income attributable to UHS	$158,075				$219,609
Depreciation and amortization	118,075				113,638
Interest expense, net	39,874				36,786
Provision for income taxes	43,828				76,923
EBITDA net of NCI	$359,852		13.1%		$446,956		16.9%
Other (income) expense, net	12,498				-
Increase in DOJ Reserve	31,895				-
Provision for intangible asset impairment	49,310				-
Adjusted EBITDA net of NCI	$453,555		16.5%		$446,956		16.9%
Net revenues	$2,754,496				$2,642,787
Calculation of Adjusted Net Income Attributable to UHS
	Three months ended				Three months ended
	December 31, 2018				December 31, 2017
			Per				Per
	Amount		Diluted Share		Amount		Diluted Share
Net income attributable to UHS	$158,075		$1.70		$219,609		$2.31
Plus/minus after-tax adjustments:
Increase in DOJ Reserve, after-tax	24,477		0.26		-		-
Impact of ASU 2016-09	(139)		-		(13,477)		(0.14)
Provision for intangible asset impairment, after-tax	37,669		0.41		-		-
EHR depreciation & amortization, after-tax	-		-		2,255		0.03
Impact of TCJA-17-Deferred tax	-		-		(30,000)		(0.32)
Impact of TCJA-17-Repatriation tax	-		-		11,250		0.12
Subtotal adjustments	62,007		0.67		(29,972)		(0.31)
Adjusted net income attributable to UHS	$220,082		$2.37		$189,637		$2.00

Universal Health Services, Inc.
Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule")
For the Twelve Months ended December 31, 2018 and 2017
(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, 2018		revenues		December 31, 2017		revenues
Net income attributable to UHS	$779,705				$752,303
Depreciation and amortization	453,045				447,765
Interest expense, net	154,956				145,169
Provision for income taxes	236,642				363,697
EBITDA net of NCI	$1,624,348		15.1%		$1,708,934		16.4%
Other (income) expense, net	(14,219)				-
Increase in DOJ Reserve	102,327				-
Provision for intangible asset impairment	49,310				-
Adjusted EBITDA net of NCI	$1,761,766		16.4%		$1,708,934		16.4%
Net revenues	$10,772,278				$10,409,865
Calculation of Adjusted Net Income Attributable to UHS
	Twelve months ended				Twelve months ended
	December 31, 2018				December 31, 2017
			Per				Per
	Amount		Diluted Share		Amount		Diluted Share
Net income attributable to UHS	$779,705		$8.31		$752,303		$7.81
Plus/minus after-tax adjustments:
Increase in DOJ Reserve, after-tax	78,171		0.83		-		-
Impact of ASU 2016-09	(1,195)		(0.01)		(22,096)		(0.23)
Provision for intangible asset impairment, after-tax	37,669		0.40		-		-
EHR depreciation & amortization, after-tax	-		-		14,002		0.15
Impact of TCJA-17-Deferred tax	-		-		(30,000)		(0.32)
Impact of TCJA-17-Repatriation tax	-		-		11,250		0.12
Subtotal adjustments	114,645		1.22		(26,844)		(0.28)
Adjusted net income attributable to UHS	$894,350		$9.53		$725,459		$7.53

Universal Health Services, Inc.
Consolidated Statements of Comprehensive Income
(in thousands)
(unaudited)
	Three months				Twelve months
	ended December 31,				ended December 31,
	2018		2017		2018		2017
Net income	$163,622		$225,035		$797,883		$771,312
Other comprehensive income (loss):
Unrealized derivative gains (losses) on cash flow hedges	(2,460)		3,132		(2,805)		6,679
Minimum pension liability	(6,892)		4,070		(6,892)		4,070
Foreign currency translation adjustment	25,198		16,746		9,718		26,678
Other	4,398		(3,814)		4,398		(2,169)
Other comprehensive income (loss) before tax	20,244		20,134		4,419		35,258
Income tax expense (benefit) related to items of other comprehensive income (loss)	8,987		729		8,905		2,664
Total other comprehensive income (loss), net of tax	11,257		19,405		(4,486)		32,594
Comprehensive income	174,879		244,440		793,397		803,906
Less: Comprehensive income attributable to noncontrolling interests	5,547		5,426		18,178		19,009
Comprehensive income attributable to UHS	$169,332		$239,014		$775,219		$784,897

Universal Health Services, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
			December 31,			December 31,
			2018			2017
Assets
Current assets:
Cash and cash equivalents		$	105,220		$	74,423
Accounts receivable, net			1,509,909			1,500,898
Supplies			148,206			136,177
Other current assets			174,467			86,504
Total current assets			1,937,802			1,798,002
Property and equipment			8,563,455			7,921,126
Less: accumulated depreciation			(3,715,515)			(3,349,289)
			4,847,940			4,571,837
Other assets:
Goodwill			3,844,628			3,825,157
Deferred income taxes			5,280			3,007
Deferred charges			8,772			9,787
Other			621,058			554,038
Total Assets		$	11,265,480		$	10,761,828
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt		$	63,446		$	545,619
Accounts payable and accrued liabilities			1,382,864			1,284,081
Federal and state taxes			2,428			18,334
Total current liabilities			1,448,738			1,848,034
Other noncurrent liabilities			361,809			306,304
Long-term debt			3,935,187			3,494,390
Deferred income taxes			49,661			54,962
Redeemable noncontrolling interest			4,292			6,702
UHS common stockholders' equity			5,389,262			4,989,514
Noncontrolling interest			76,531			61,922
Total equity			5,465,793			5,051,436
Total Liabilities and Stockholders' Equity		$	11,265,480		$	10,761,828

Universal Health Services, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Twelve months
	ended December 31,
	2018		2017
Cash Flows from Operating Activities:
Net income	$797,883		$771,312
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation & amortization	453,076		447,883
Gain on sale of assets and businesses	(2,513)		0
Stock-based compensation expense	66,581		56,738
Costs related to extinguishment of debt	2,727		0
Provision for intangible asset impairment	49,310		0
Changes in assets & liabilities, net of effects from
acquisitions and dispositions:
Accounts receivable	(42,239)		(24,719)
Accrued interest	(4,478)		705
Accrued and deferred income taxes	(54,052)		(6,405)
Other working capital accounts	24,696		(15,165)
Other assets and deferred charges	(31,429)		(27,936)
Other	64,615		(42,564)
Accrued insurance expense, net of commercial premiums paid	92,863		102,595
Payments made in settlement of self-insurance claims	(76,147)		(79,192)
Net cash provided by operating activities	1,340,893		1,183,252
Cash Flows from Investing Activities:
Property and equipment additions, net of disposals	(664,962)		(557,506)
Acquisition of property and businesses	(110,464)		(22,878)
Proceeds received from sales of assets and businesses	13,502		108
Costs incurred for purchase and implementation of information technology applications	(36,243)		(29,047)
Decrease (increase) in capital reserves of commercial insurance subsidiary	100		(3,100)
Investment in, and advances to,  joint venture	(15,331)		(7,976)
Net cash used in investing activities	(813,398)		(620,399)
Cash Flows from Financing Activities:
Reduction of long-term debt	(830,496)		(143,106)
Additional borrowings	791,247		41,100
Financing costs	(13,787)		(76)
Repurchase of common shares	(397,425)		(364,401)
Dividends paid	(37,342)		(38,211)
Issuance of common stock	10,196		10,254
Profit distributions to noncontrolling interests	(14,595)		(24,713)
Net cash used in financing activities	(492,202)		(519,153)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(2,905)		1,647
Increase in cash, cash equivalents and restricted cash	32,388		45,347
Cash, cash equivalents and restricted cash, beginning of period	167,297		121,950
Cash, cash equivalents and restricted cash, end of period	$199,685		$167,297
Supplemental Disclosures of Cash Flow Information:
Interest paid	$150,290		$135,533
Income taxes paid, net of refunds	$293,837		$370,855
Noncash purchases of property and equipment	$77,674		$82,496

Universal Health Services, Inc.
Supplemental Statistical Information
(unaudited)
					% Change		% Change
					Quarter ended		12 months ended
Same Facility:					12/31/2018		12/31/2018
Acute Care Hospitals
Revenues					4.7%		4.6%
Adjusted Admissions					2.2%		2.1%
Adjusted Patient Days					4.8%		4.8%
Revenue Per Adjusted Admission					4.2%		4.1%
Revenue Per Adjusted Patient Day					1.6%		1.4%
Behavioral Health Hospitals
Revenues					2.0%		2.6%
Adjusted Admissions					4.5%		3.0%
Adjusted Patient Days					1.2%		0.5%
Revenue Per Adjusted Admission					-2.1%		0.0%
Revenue Per Adjusted Patient Day					1.1%		2.5%
UHS Consolidated			Fourth quarter ended				Twelve months ended
			12/31/2018		12/31/2017		12/31/2018		12/31/2017
Revenues			$2,754,496		$2,642,787		$10,772,278		$10,409,865
EBITDA net of NCI			$359,852		$446,956		$1,624,348		$1,708,934
EBITDA Margin net of NCI			13.1%		16.9%		15.1%		16.4%
Adjusted EBITDA net of NCI			$453,555		$446,956		$1,761,766		$1,708,934
Adjusted EBITDA Margin net of NCI			16.5%		16.9%		16.4%		16.4%
Cash Flow From Operations			$365,405		$304,535		$1,340,893		$1,183,252
Days Sales Outstanding			50		52		51		53
Capital Expenditures			$143,613		$138,813		$664,962		$557,506
Debt							$3,998,633		$4,040,009
UHS' Shareholders Equity							$5,389,262		$4,989,514
Debt / Total Capitalization							42.6%		44.7%
Debt / EBITDA net of NCI (1)							2.46		2.36
Debt / Adjusted EBITDA net of NCI (1)							2.27		2.36
Debt / Cash From Operations (1)							2.98		3.41
(1)  Latest 4 quarters

Universal Health Services, Inc.
Acute Care Hospital Services
For the three and twelve months ended
December 31, 2018 and 2017
(in thousands)
Same Facility Basis - Acute Care Hospital Services
		Three months ended				Three months ended				Twelve months ended				Twelve months ended
		December 31, 2018				December 31, 2017				December 31, 2018				December 31, 2017
		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues before provision for doubtful accounts						$1,564,541								$6,128,103
Less: Provision for doubtful accounts						182,284								755,615
Net revenues		1,446,693		100.0%		1,382,257		100.0%		$5,618,428		100.0%		5,372,488		100.0%
Operating charges:
Salaries, wages and benefits		603,805		41.7%		568,455		41.1%		2,366,078		42.1%		2,241,127		41.7%
Other operating expenses		312,128		21.6%		302,071		21.9%		1,238,787		22.0%		1,244,186		23.2%
Supplies expense		249,290		17.2%		234,721		17.0%		967,833		17.2%		905,164		16.8%
Depreciation and amortization		70,596		4.9%		68,460		5.0%		278,558		5.0%		262,950		4.9%
Lease and rental expense		14,186		1.0%		14,142		1.0%		57,229		1.0%		57,208		1.1%
Subtotal-operating expenses		1,250,005		86.4%		1,187,849		85.9%		4,908,485		87.4%		4,710,635		87.7%
Income from operations		196,688		13.6%		194,408		14.1%		709,943		12.6%		661,853		12.3%
Interest expense, net		314		0.0%		610		0.0%		1,658		0.0%		2,684		0.0%
Other (income) expense, net		-		-		-		-		(2,498)		(0.0)%		-		-
Income before income taxes		196,374		13.6%		193,798		14.0%		710,783		12.7%		$659,169		12.3%
All Acute Care Hospital Services
		Three months ended				Three months ended				Twelve months ended				Twelve months ended
		December 31, 2018				December 31, 2017				December 31, 2018				December 31, 2017
		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues before provision for doubtful accounts						$1,594,219								$6,240,302
Less: Provision for doubtful accounts						182,288								755,619
Net revenues		1,487,232		100.0%		1,411,931		100.0%		$5,719,905		100.0%		5,484,683		100.0%
Operating charges:
Salaries, wages and benefits		604,188		40.6%		568,618		40.3%		2,367,014		41.4%		2,241,527		40.9%
Other operating expenses		352,809		23.7%		332,287		23.5%		1,341,088		23.4%		1,350,741		24.6%
Supplies expense		249,523		16.8%		234,721		16.6%		968,067		16.9%		905,165		16.5%
Depreciation and amortization		70,699		4.8%		72,084		5.1%		278,661		4.9%		285,501		5.2%
Lease and rental expense		14,192		1.0%		14,142		1.0%		57,235		1.0%		57,208		1.0%
Subtotal-operating expenses		1,291,411		86.8%		1,221,852		86.5%		5,012,065		87.6%		4,840,142		88.2%
Income from operations		195,821		13.2%		190,079		13.5%		707,840		12.4%		644,541		11.8%
Interest expense, net		314		0.0%		610		0.0%		1,658		0.0%		2,684		0.0%
Other (income) expense, net		-		-		-		-		(2,498)		(0.0)%		-		-
Income before income taxes		195,507		13.1%		189,469		13.4%		708,680		12.4%		$641,857		11.7%
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 long-lived and intangible assets, the impact of the EHR applications (in 2017) 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, 2018.
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 the implementation of EHR applications at our acute care hospitals (in 2017); (iii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iv) 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, 2018 and 2017
(in thousands)
Same Facility - Behavioral Health Care Services
		Three months ended				Three months ended				Twelve months ended				Twelve months ended
		December 31, 2018				December 31, 2017				December 31, 2018				December 31, 2017
		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues before provision for doubtful accounts						$1,220,181								$4,878,039
Less: Provision for doubtful accounts						26,869								110,030
Net revenues		$1,217,419		100.0%		1,193,312		100.0%		$4,891,178		100.0%		4,768,009		100.0%
Operating charges:
Salaries, wages and benefits		641,488		52.7%		615,534		51.6%		2,558,296		52.3%		2,437,495		51.1%
Other operating expenses		234,868		19.3%		233,701		19.6%		935,562		19.1%		935,750		19.6%
Supplies expense		50,345		4.1%		49,204		4.1%		197,305		4.0%		195,813		4.1%
Depreciation and amortization		41,042		3.4%		37,540		3.1%		153,924		3.1%		145,707		3.1%
Lease and rental expense		11,394		0.9%		11,065		0.9%		46,942		1.0%		43,825		0.9%
Subtotal-operating expenses		979,137		80.4%		947,044		79.4%		3,892,029		79.6%		3,758,590		78.8%
Income from operations		238,282		19.6%		246,268		20.6%		999,149		20.4%		1,009,419		21.2%
Interest expense, net		362		0.0%		415		0.0%		1,597		0.0%		2,005		0.0%
Other (income) expense, net		-		-		-		-		-		-		-		-
Income before income taxes		237,920		19.5%		245,853		20.6%		997,552		20.4%		1,007,414		21.1%
All Behavioral Health Care Services
		Three months ended				Three months ended				Twelve months ended				Twelve months ended
		December 31, 2018				December 31, 2017				December 31, 2018				December 31, 2017
		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues		Amount		% of Net Revenues
Net revenues before provision for doubtful accounts						$1,250,298								$5,020,177
Less: Provision for doubtful accounts						28,809								113,458
Net revenues		$1,264,323		100.0%		1,221,489		100.0%		$5,038,874		100.0%		4,906,719		100.0%
Operating charges:
Salaries, wages and benefits		662,117		52.4%		627,066		51.3%		2,617,337		51.9%		2,496,236		50.9%
Other operating expenses		312,404		24.7%		257,378		21.1%		1,091,102		21.7%		1,042,056		21.2%
Supplies expense		51,043		4.0%		49,969		4.1%		200,008		4.0%		199,936		4.1%
Depreciation and amortization		44,207		3.5%		38,984		3.2%		163,155		3.2%		152,067		3.1%
Lease and rental expense		11,827		0.9%		11,452		0.9%		48,316		1.0%		45,445		0.9%
Subtotal-operating expenses		1,081,598		85.5%		984,849		80.6%		4,119,918		81.8%		3,935,740		80.2%
Income from operations		182,725		14.5%		236,640		19.4%		918,956		18.2%		970,979		19.8%
Interest expense, net		363		0.0%		415		0.0%		1,597		0.0%		2,005		0.0%
Other (income) expense, net		1,206		0.1%		-		-		1,842		0.0%		-		-
Income before income taxes		181,156		14.3%		$236,225		19.3%		915,517		18.2%		$968,974		19.7%
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 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 in the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2018.
The All Behavioral Health Care Servicestable 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; (iii) an intangible asset impairment charge recorded during 2018 in connection with Foundations Recovery Network, L.L.C., and; (iv) certain other amounts including the results of facilities acquired or opened during the last twelve months as well as the results of certain facilities that were closed or restructured during the past year.

Universal Health Services, Inc.
Selected Hospital Statistics
For the three months ended
December 31, 2018 and 2017
AS REPORTED:
		ACUTE						BEHAVIORAL HEALTH
		12/31/18		12/31/17		%  change		12/31/18		12/31/17		%  change
Hospitals owned and leased		26		26		0.0%		324		300		8.0%
Average licensed beds		6,340		6,132		3.4%		23,907		23,225		2.9%
Average available beds		6,164		5,960		3.4%		23,823		23,140		3.0%
Patient days		348,399		330,319		5.5%		1,612,081		1,569,123		2.7%
Average daily census		3,786.8		3,590.4		5.5%		17,522.6		17,055.7		2.7%
Occupancy-licensed beds		59.7%		58.6%		2.0%		73.3%		73.4%		-0.1%
Occupancy-available beds		61.4%		60.2%		2.0%		73.6%		73.7%		-0.2%
Admissions		77,988		75,795		2.9%		119,997		114,049		5.2%
Length of stay		4.5		4.4		2.5%		13.4		13.8		-2.4%
Inpatient revenue		$6,279,880		$5,514,735		13.9%		$2,425,291		$2,260,616		7.3%
Outpatient revenue		3,797,937		3,335,708		13.9%		260,836		253,078		3.1%
Total patient revenue		10,077,817		8,850,443		13.9%		2,686,127		2,513,694		6.9%
Other revenue		100,480		115,512		-13.0%		50,072		50,711		-1.3%
Gross hospital revenue		10,178,297		8,965,955		13.5%		2,736,199		2,564,405		6.7%
Total deductions		8,691,065		7,371,736		17.9%		1,471,876		1,314,107		12.0%
Net hospital revenue before
provision for doubtful accounts		1,487,232		1,594,219		-6.7%		1,264,323		1,250,298		1.1%
Provision for doubtful accounts		0		182,288		-100.0%		0		28,809		-100.0%
Net hospital revenue		$1,487,232		$1,411,931		5.3%		$1,264,323		$1,221,489		3.5%
SAME FACILITY:
		ACUTE						BEHAVIORAL HEALTH
		12/31/18		12/31/17		%  change		12/31/18		12/31/17		%  change
Hospitals owned and leased		26		26		0.0%		291		291		0.0%
Average licensed beds		6,340		6,132		3.4%		22,842		22,502		1.5%
Average available beds		6,164		5,960		3.4%		22,758		22,417		1.5%
Patient days		348,399		330,319		5.5%		1,566,806		1,546,557		1.3%
Average daily census		3,786.8		3,590.4		5.5%		17,030.5		16,810.4		1.3%
Occupancy-licensed beds		59.7%		58.6%		2.0%		74.6%		74.7%		-0.2%
Occupancy-available beds		61.4%		60.2%		2.0%		74.8%		75.0%		-0.2%
Admissions		77,988		75,795		2.9%		118,557		113,280		4.7%
Length of stay		4.5		4.4		2.5%		13.2		13.7		-3.2%

Universal Health Services, Inc.
Selected Hospital Statistics
For the Twelve months ended
December 31, 2018 and 2017
AS REPORTED:
		ACUTE						BEHAVIORAL HEALTH
		12/31/18		12/31/17		%  change		12/31/18		12/31/17		%  change
Hospitals owned and leased		26		26		0.0%		324		300		8.0%
Average licensed beds		6,232		6,127		1.7%		23,509		23,151		1.5%
Average available beds		6,056		5,954		1.7%		23,425		23,068		1.5%
Patient days		1,376,988		1,312,265		4.9%		6,418,334		6,381,756		0.6%
Average daily census		3,772.6		3,595.2		4.9%		17,584.5		17,484.3		0.6%
Occupancy-licensed beds		60.5%		58.7%		3.2%		74.8%		75.5%		-1.0%
Occupancy-available beds		62.3%		60.4%		3.2%		75.1%		75.8%		-1.0%
Admissions		303,985		297,390		2.2%		482,658		467,822		3.2%
Length of stay		4.5		4.4		2.7%		13.3		13.6		-2.5%
Inpatient revenue		$24,814,959		$21,888,207		13.4%		$9,735,521		$8,949,984		8.8%
Outpatient revenue		14,967,313		13,115,881		14.1%		1,025,721		993,409		3.3%
Total patient revenue		39,782,272		35,004,088		13.7%		10,761,242		9,943,393		8.2%
Other revenue		397,932		468,300		-15.0%		202,346		205,212		-1.4%
Gross hospital revenue		40,180,204		35,472,388		13.3%		10,963,588		10,148,605		8.0%
Total deductions		34,460,299		29,232,086		17.9%		5,924,714		5,128,428		15.5%
Net hospital revenue before
provision for doubtful accounts		5,719,905		6,240,302		-8.3%		5,038,874		5,020,177		0.4%
Provision for doubtful accounts		0		755,619		-100.0%		0		113,458		-100.0%
Net hospital revenue		$5,719,905		$5,484,683		4.3%		$5,038,874		$4,906,719		2.7%
SAME FACILITY:
		ACUTE						BEHAVIORAL HEALTH
		12/31/18		12/31/17		%  change		12/31/18		12/31/17		%  change
Hospitals owned and leased		26		26		0.0%		291		291		0.0%
Average licensed beds		6,232		6,127		1.7%		22,722		22,374		1.6%
Average available beds		6,056		5,954		1.7%		22,639		22,291		1.6%
Patient days		1,376,988		1,312,265		4.9%		6,293,768		6,244,201		0.8%
Average daily census		3,772.4		3,595.2		4.9%		17,243.2		17,107.4		0.8%
Occupancy-licensed beds		60.5%		58.7%		3.2%		75.9%		76.5%		-0.7%
Occupancy-available beds		62.3%		60.4%		3.2%		76.2%		76.7%		-0.8%
Admissions		303,985		297,390		2.2%		477,254		461,901		3.3%
Length of stay		4.5		4.4		2.7%		13.2		13.5		-2.4%

Universal Health Services, Inc.
Supplemental Non-GAAP Disclosures
2019 Operating Results Forecast
(in thousands, except per share amounts)
			Forecast For The Year Ending December 31, 2019
					% Net				% Net
			Low		revenues		High		revenues
Net revenues			$11,213,000				$11,361,000
Adjusted net income attributable to UHS (a)			$882,453				$945,658
Depreciation and amortization			491,517				491,517
Interest expense			177,524				177,524
Provision for income taxes			274,711				294,386
EBITDA net of NCI (b)			$1,826,205		16.3%		$1,909,085		16.8%
Adjusted net income attributable to UHS, per diluted share (a)			$9.70				$10.40
Shares used in computing diluted earnings per share			90,755				90,755
(a) The 2019 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 reserve established in connection with our discussions with the Department of Justice, pre-tax unrealized gains/losses resulting from increases/decrease in the market value of shares of certain marketable securities held for investment and classified as available for sale, our adoption of ASU 2016-09, 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, impairment of long-lived and intangible assets, and other amounts that may be reflected in the current financial statements that related to prior periods and the impact of share repurchases that differ from included assumptions.  It is also subject to certain conditions including those set forth in the accompanying report in General Information, Forward-Looking Statements and Risk Factors and Non- GAAP Financial Measures.
(b) EBITDA is a non-GAAP financial measure.  To obtain a complete understanding of our financial performance, EBITDA should be examined in connection with net income determined in accordance with GAAP as presented in the consolidated financial statements and notes thereto in this report or in our filings with the Securities and Exchange Commission including our Report on Form 10-K for the year ended December 31, 2018.

SOURCE Universal Health Services, Inc.

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