MenuSearch

News Release

Printer Friendly Version 
<< Back To Press Releases
Universal Health Services, Inc. Reports 2006 Fourth Quarter and Full Year Earnings and 2007 Guidance
KING OF PRUSSIA, Pa., Feb 28, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income was $34.2 million, or $.63 per diluted share, during the fourth quarter of 2006 as compared to $12.3 million, or $.23 per diluted share, during the comparable prior year quarter. Reported net income was $259.5 million, or $4.56 per diluted share, during the twelve months ended December 31, 2006 as compared to $240.8 million, or $4.00 per diluted share, during 2005.

Reported income from continuing operations was $34.2 million, or $.63 per diluted share, during the fourth quarter of 2006 as compared to $9.0 million, or $.17 per diluted share, during the fourth quarter of 2005. Reported income from continuing operations was $259.6 million, or $4.57 per diluted share, during the twelve-month period ended December 31, 2006 as compared to $109.8 million, or $1.91 per diluted share, during 2005.

As indicated on the attached Schedules of Non-GAAP Supplemental Consolidated Statements of Income Information ("Supplemental Schedules"), our income from continuing operations and net income, for the three and/or twelve- month periods ended December 31, 2006 and 2005, include various items such as: (i) hurricane related expenses, net of minority interests and income taxes; (ii) hurricane related insurance recoveries, net of minority interests and income taxes; (iii) retroactive effect of supplemental reimbursements earned in certain states and contractual settlements, net of income taxes; (iv) a reserve recorded in connection with a lawsuit; (v) a charge incurred to record the aggregate present value of the future funding of a portion of a gift to The College of William & Mary ("William & Mary Funding") on behalf of our Chairman of the Board of Directors, Chief Executive Officer and President; (vi) favorable income tax adjustment to reduce reserves due to the expiration of statute of limitations in a foreign jurisdiction, and; (vii) gains on divestitures, net of income taxes (included in net income for the three and twelve-month periods ended December 31, 2005).

After adjusting for the items discussed above applicable to each period presented, as indicated on the attached Supplemental Schedules, our adjusted net income during the three-month period ended December 31, 2006 was $32.4 million, or $.60 per diluted share, as compared to $27.2 million, or $.50 per diluted share, during the fourth quarter of 2005. Our adjusted net income during the twelve-month period ended December 31, 2006 was $157.3 million, or $2.79 per diluted share, as compared to $154.8 million, or $2.62 per diluted share, during the comparable prior year twelve-month period.

Our adjusted income from continuing operations during the three-month period ended December 31, 2006 was $32.4 million, or $.60 per diluted share, as compared to $24.8 million, or $.45 per diluted share, during the three- month period ended December 31, 2005. Our adjusted income from continuing operations during the twelve-month period ended December 31, 2006 was $157.5 million, or $2.80 per diluted share, as compared to $151.1 million, or $2.56 per diluted share, during the comparable prior year twelve-month period.

Net revenues increased 10% to $1.07 billion during the fourth quarter of 2006 as compared to $967 million during the fourth quarter of 2005. Net revenues increased 7% to $4.19 billion during the twelve months ended December 31, 2006 as compared to $3.94 billion during the prior year twelve-month period. Impacting our net revenues during 2006 was the loss of revenues generated at our acute care facilities in Louisiana which were damaged and closed since the third quarter of 2005 as a result of Hurricane Katrina. On a combined basis, these facilities generated net revenues of $166 million during the eight months of 2005 prior to closure. Also, on January 1st of this year, we implemented a formal company-wide uninsured discount policy which has had the effect of lowering both net revenues and the provision for doubtful accounts by approximately $15 million and $61 million during the three and twelve-month periods ended December 31, 2006, respectively. The implementation of this uninsured discount policy did not have a significant impact on our 2006 net income.

Our consolidated operating margin, as calculated on the attached Supplemental Schedules, was 12.3% and 12.2% during the three-month periods ended December 31, 2006 and 2005, respectively. Our consolidated operating margin was 13.1% and 13.5% during the twelve-month periods ended December 31, 2006 and 2005, respectively.

At our acute care hospitals owned during both periods ("same facility basis"), inpatient admissions increased 2.4% and patient days increased 5.3% during the fourth quarter of 2006 as compared to the comparable 2005 quarter. The operating margin at our acute care hospitals owned during both periods remained unchanged at 12.1% during each of the fourth quarters of 2006 and 2005. On a same facility basis, inpatient admissions increased 1.7% and patient days increased 3.1% during the twelve-month period ended December 31, 2006 as compared to 2005. The operating margin at these acute care hospitals decreased to 13.4% during the twelve months ended December 31, 2006 as compared to 13.8% during the twelve months ended December 31, 2005. Since our acute care facilities located in Louisiana have been closed since the third quarter of 2005, the inpatient statistics for those facilities have been excluded from 2005.

On a same facility basis, inpatient admissions at our behavioral health facilities increased 3.7% and patient days increased 1.4% during the fourth quarter of 2006 as compared to the comparable 2005 quarter. The operating margin at these behavioral health facilities increased to 23.5% during the fourth quarter of 2006 from 19.7% during the comparable quarter of the prior year. On a same facility basis, inpatient admissions at our behavioral health facilities increased 3.7% and patient days increased 1.7% during the twelve- month period ended December 31, 2006 as compared to 2005. The operating margin at these behavioral health facilities increased to 25.0% during the twelve months ended December 31, 2006 as compared to 22.8% during 2005.

Our provision for doubtful accounts as a percentage of net revenues was 8.3% and 9.0% during the three-month periods ended December 31, 2006 and 2005, respectively, and 8.3% and 9.4% during the twelve-month periods ended December 31, 2006 and 2005, respectively. Exclusive of the impact of the uninsured discount implemented at the beginning of this year, as a percentage of net revenues, the provision for doubtful accounts would have been 9.6% during each of the three and twelve-month periods ended December 31, 2006.

Effective July 1, 2006, the pharmacy services for our acute care facilities were brought in-house from an outsourced vendor and as a result of this change, during the three and twelve-month periods ended December 31, 2006, we experienced an increase in our supplies expense and salaries, wages and benefits expense and a decrease in our other operating expenses. The transition of our pharmacy services did not have a significant impact on our operating margin or net income during 2006.

During the fourth quarter of 2006, we used $80.8 million of cash flow in operating activities while during the fourth quarter of 2005 net cash provided by operating activities was $69.0 million. The $149.8 million unfavorable change resulted primarily from the payment of $168.1 million of income taxes during the fourth quarter of 2006 (as compared to $500,000 during the fourth quarter of 2005), approximately $95.0 million of which, as previously disclosed, was deferred pursuant to an Internal Revenue Service postponement granted to companies that owned businesses in the parishes of Louisiana that were most severely impacted by Hurricane Katrina. Also contributing to the unfavorable change in net cash provided by operating activities during the fourth quarter of 2006, as compared to the comparable quarter of the prior year, was an unfavorable change of $29.7 million in accounts receivable. The unfavorable change in accounts receivable related primarily to revenues earned during the fourth quarter of 2006 in connection with supplemental programs in which our acute care hospitals located in Texas participate. The majority of these revenues are scheduled to be paid to us prior to June 30, 2007.

During the fourth quarter of 2006, we spent $108.1 million on capital expenditures including additional costs related to the construction of a new 170-bed acute care hospital located in Las Vegas, Nevada, which is scheduled to be completed and opened during the fourth quarter of 2007, and a new 171- bed acute care hospital located in Palmdale, California, which is scheduled to be completed and opened during the fourth quarter of 2008. Also during the fourth quarter of 2006, we repurchased 2.34 million shares of our Class B Common Stock for an aggregate repurchase price of $130.0 million.

During 2007, based upon current trends and subject to the provisions set forth below, we estimate that we will achieve earnings per diluted share from continuing operations of approximately $3.00 to $3.05 on projected net revenues of $4.78 billion.

We will hold a conference call for investors and analysts at 9:00 a.m. Eastern Time on March 1, 2007. 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 March 1, 2007 and will continue through midnight on March 8, 2007. The recording can be accessed by calling 1-800- 642-1687 and entering the conference ID number 7407164.

This call will also be available live over the internet at our web site at www.uhsinc.com. It will also be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at http://www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).

Universal Health Services, Inc. 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, 2006), may cause 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, adjusted income from continuing operations per diluted share, adjusted net income, adjusted net income per diluted share, adjusted operating income and adjusted operating margin, 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 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 lawsuits, hurricane-related expenses and insurance recoveries, the William & Mary Funding, and other amounts 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, 2006. 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)

                                     Three months          Twelve months
                                  ended December 31,     ended December 31,
                                    2006       2005       2006        2005

    Net revenues                 $1,065,881  $967,175  $4,191,300  $3,935,480

    Operating charges:
       Salaries, wages and
        benefits                    461,500   415,821   1,797,587   1,625,996
       Other operating expenses     228,026   226,127     936,958     921,118
       Supplies expense             156,431   120,212     556,702     489,999
       Provision for doubtful
        accounts                     88,940    87,438     349,030     368,058
       Depreciation and
        amortization                 43,334    39,242     163,694     155,478
       Lease and rental expense      15,813    15,347      64,060      60,790
       Hurricane related
        expenses, net                  (640)   36,133      13,792     165,028
       Hurricane insurance
        recoveries                      -         -       (13,792)    (81,709)
                                    993,404   940,320   3,868,031   3,704,758

    Income before interest
     expense, hurricane insurance
     recoveries in excess of
     expenses,  minority
     interests and income taxes       72,477    26,855     323,269     230,722

    Interest expense, net             9,196     8,403      32,558      32,933
    Hurricane insurance
     recoveries in excess of
     expenses                           -         -      (167,999)        -
    Minority interests in
     earnings of consolidated
     entities                         8,621     5,786      46,238      25,645

    Income before income taxes       54,660    12,666     412,472     172,144

    Provision for income taxes       20,458     3,624     152,878      62,301

    Income from continuing
     operations                      34,202     9,042     259,594     109,843

    (Loss) income from
     discontinued operations,
     net of income tax
    (benefit)/expense (a)               (32)    3,232        (136)    131,002


    Net income                      $34,170   $12,274    $259,458    $240,845


    Basic earnings (loss) per
     share: (b)
         From continuing
          operations                  $0.63     $0.17       $4.76       $1.98
         From discontinued
          operations                    -        0.06         -          2.35
              Total basic earnings
               share                  $0.63     $0.23       $4.76       $4.33

    Diluted earnings (loss) per
     share: (b)
         From continuing
          operations                  $0.63     $0.17       $4.57       $1.91
         From discontinued
          operations                    -        0.06       (0.01)       2.09
              Total diluted
               earnings per share     $0.63     $0.23       $4.56       $4.00



                         Universal Health Services, Inc.
                  Footnotes to Consolidated Statements of Income
                     (in thousands, except per share amounts)

                                           Three months      Twelve months
                                        ended December 31, ended December 31,
                                          2006     2005      2006      2005

    (a) Calculation of income from
     discontinued operations, net of
     income tax:

    (Loss) income from operations           ($52)    $747     ($217)   $3,355
    Gains on divestitures                    -      4,338       -     190,558
    (Loss) income from discontinued
     operations, pre-tax                     (52)   5,085      (217)  193,913
    Income tax benefit (provision)            20   (1,853)       81   (62,911)
    (Loss) income from discontinued
     operations, net of income tax
     expense                                ($32)  $3,232     ($136) $131,002

    (b) Earnings per share calculation:

    Basic:
    Income from continuing operations    $34,202   $9,042  $259,594  $109,843
    Less: Dividends on unvested
     restricted stock, net of taxes          (26)     (23)      (89)     (104)
    Income from continuing operations -
     basic                               $34,176   $9,019  $259,505  $109,739
    (Loss) income from discontinued
     operations                              (32)   3,232      (136)  131,002
    Net income - basic                   $34,144  $12,251  $259,369  $240,741

    Weighted average number of common
     shares - basic                       53,936   54,002    54,557    55,658

    Basic earnings (loss) per share:
         From continuing operations        $0.63    $0.17     $4.76     $1.98
         From discontinued operations        -       0.06       -        2.35
              Total basic earnings per
               share                       $0.63    $0.23     $4.76     $4.33

    Diluted:
    Income from continuing operations    $34,202   $9,042  $259,594  $109,843
    Less: Dividends on unvested
     restricted stock, net of taxes          (26)     (23)      (89)     (104)
    Add: Debenture interest, net of
     taxes                                   -        -       4,887     9,628
    Income from continuing operations -
     diluted                             $34,176   $9,019  $264,392  $119,367
    (Loss) income from discontinued
     operations                              (32)   3,232      (136)  131,002
    Net income - diluted                 $34,144  $12,251  $264,256  $250,369

    Weighted average number of common
     shares                               53,936   54,002    54,557    55,658
    Add: Shares for conversion of
     convertible debentures                  -        -       3,117     6,577
             Other share equivalents         255      222       234       412
    Weighted average number of common
     shares and equiv. - diluted          54,191   54,224    57,908    62,647

    Diluted earnings (loss) per share:
         From continuing operations        $0.63    $0.17     $4.57     $1.91
         From discontinued operations        -       0.06     (0.01)     2.09
              Total diluted earnings per
               share                       $0.63    $0.23     $4.56     $4.00



                         Universal Health Services, Inc.
                      Condensed Consolidated Balance Sheets
                                 (in thousands)

                                            December 31,      December 31,
                                                2006              2005

    Assets:
    Cash and cash equivalents                      $14,939            $7,963
    Accounts receivable, net                       595,009           499,726
    Other current assets                           118,558           100,609
    Property, plant and equipment, net           1,685,085         1,429,653
    Other assets                                   863,451           820,758
    Total Assets                                $3,277,042        $2,858,709

    Liabilities and Stockholders' Equity:
    Current portion of long-term debt               $1,938            $5,191
    Other current liabilities                      500,513           518,979
    Other noncurrent liabilities                   340,815           289,195
    Long-term debt                                 821,363           637,654
    Deferred income taxes                           35,888            42,713
    Minority interest                              174,061           159,879
    Stockholders' equity                         1,402,464         1,205,098
    Total Liabilities and Stockholders'
     Equity                                     $3,277,042        $2,858,709



                         Universal Health Services, Inc.
                      Consolidated Statements of Cash Flows
                                 (in thousands)

                                                    Year Ended December 31,
                                                    2006              2005

    Cash Flows from Operating Activities:
      Net income                                  $259,458          $240,845
      Adjustments to reconcile net income
       to net cash provided by operating
       activities:
    Depreciation & amortization                    163,694           163,714
    Accretion of discount on convertible
     debentures                                      6,364            12,644
    Gains on sales of assets and
     businesses, net of losses                         -            (196,393)
    Hurricane related expenses                      13,792           165,028
    Hurricane insurance recoveries
     accrued                                      (181,791)          (81,709)
        Hurricane insurance recoveries
         received for operating expenses            43,929               -
    Provision for asset impairment                     -               3,105
      Changes in assets & liabilities,
       net of effects from
       acquisitions and dispositions:
       Accounts receivable                         (93,552)           12,976
       Accrued interest                                796             1,504
       Accrued and deferred income taxes          (111,438)           64,825
       Other working capital accounts               18,090            19,893
       Other assets and deferred charges             2,524            (5,037)
       Payment of hurricane related
        expenses                                   (14,889)          (30,733)
       Other                                        15,126               637
       Minority interest in earnings of
        consolidated entities, net of
        distributions                               15,536             3,477
       Accrued insurance expense, net of
        commercial premiums paid                    76,456            82,774
       Payments made in settlement of
        self-insurance claims                      (44,856)          (32,124)
              Net cash provided by
               operating activities                169,239           425,426

    Cash Flows from Investing Activities:
       Property and equipment additions,
        net of disposals                          (341,140)         (241,412)
       Proceeds received from sales of
        assets and businesses                          -             401,207
       Acquisition of businesses                   (81,800)         (280,828)
       Hurricane insurance recoveries
        received                                   144,571            75,000
              Net cash used in investing
               activities                         (278,369)          (46,033)

    Cash Flows from Financing Activities:
       Additional borrowings                       494,353             7,823
       Reduction of long-term debt                 (34,898)         (157,710)
       Repurchase of common shares                (350,372)         (249,055)
       Dividends paid                              (17,445)          (17,885)
       Issuance of common stock                      5,637            13,487
       Financing costs                              (2,020)           (1,215)
       Net cash received for termination
        of derivatives                               3,393               -
       Capital contributions from
        minority member                             17,458               -
              Net cash provided by (used
               in) financing activities            116,106          (404,555)

    Increase (Decrease) in cash and cash
     equivalents                                     6,976           (25,162)
    Cash and cash equivalents, beginning
     of period                                       7,963            33,125
    Cash and cash equivalents, end of
     period                                        $14,939            $7,963

    Supplemental Disclosures of Cash Flow
     Information:
      Interest paid                                $35,474           $23,009

      Income taxes paid, net of refunds           $263,465           $60,426



                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                      Information ("Supplemental Schedule")
              For the Three Months Ended December 31, 2006 and 2005
                     (in thousands, except per share amounts)
                                   (unaudited)

                                         Three months ended Three months ended
                                         December 31, 2006  December 31, 2005

    Net revenues                         $1,065,881  100.0%  $967,175  100.0%

    Operating charges:
       Salaries, wages and benefits         461,500   43.3%   415,821   43.0%
       Other operating expenses             228,026   21.4%   226,127   23.4%
       Supplies expense                     156,431   14.7%   120,212   12.4%
       Provision for doubtful accounts       88,940    8.3%    87,438    9.0%
                                            934,897   87.7%   849,598   87.8%

    Operating income/margin                 130,984   12.3%   117,577   12.2%

       Lease and rental expense              15,813            15,347
       Minority interests in earnings of
        consolidated entities                 8,621             5,786

    Earnings before hurricane related
     expenses, hurricane insurance
     recoveries, depreciation and
     amortization, interest expense, and
     income taxes ("EBITDA")                106,550            96,444

       Hurricane related expenses, net         (640)           36,133
       Depreciation and amortization         43,334            39,242
       Interest expense, net                  9,196             8,403

    Income before income taxes               54,660            12,666

    Provision for income taxes               20,458             3,624

    Income from continuing operations        34,202             9,042

    (Loss) income from discontinued
     operations, net of income taxes            (32)            3,232

    Net income                              $34,170           $12,274

                                         Three months ended Three months ended
                                         December 31, 2006  December 31, 2005
                                                     Per               Per
                                                   Diluted           Diluted
                                           Amount   Share    Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations      $34,202   $0.63    $9,042   $0.17
    Plus/minus adjustments:
       Hurricane related expenses, net of
        recoveries, minority interests
        and income taxes                      (233)    -      20,978    0.39
       Retroactive effect of supplemental
        reimbursements earned in certain
          states and contractual
           settlements, net of income
           taxes                            (6,280)  (0.12)      -       -
       Reserve for lawsuit, net of income
        taxes                                4,704    0.09       -       -
       Gain on sale of land, net of
        income taxes                           -       -      (3,711)  (0.07)
       Other combined net favorable
        adjustments                                           (1,531)  (0.04)
    Subtotal after-tax adjustments to
     income from continuing operations      (1,809)  (0.03)   15,736    0.28
    Adjusted income from continuing
     operations                            $32,393   $0.60   $24,778   $0.45

    Calculation of Adjusted Net Income
    Net income                             $34,170   $0.63   $12,274   $0.23
    After-tax adjustments to income from
     continuing operations, as indicated
     above                                  (1,809)  (0.03)   15,736    0.28
    Gain on divestitures, net of income
     taxes                                     -       -        (784)  (0.01)
    Adjusted net income                    $32,361   $0.60   $27,226   $0.50



                         Universal Health Services, Inc.
       Schedule of Non-GAAP Supplemental Consolidated Statements of Income
                      Information ("Supplemental Schedule")
              For the Twelve Months Ended December 31, 2006 and 2005
                     (in thousands, except per share amounts)
                                   (unaudited)

                                      Twelve months ended Twelve months ended
                                       December 31, 2006   December 31, 2005

    Net revenues                       $4,191,300  100.0%  $3,935,480  100.0%

    Operating charges:
       Salaries, wages and benefits     1,797,587   42.9%   1,625,996   41.3%
       Other operating expenses           936,958   22.4%     921,118   23.4%
       Supplies expense                   556,702   13.3%     489,999   12.5%
       Provision for doubtful accounts    349,030    8.3%     368,058    9.4%
                                        3,640,277   86.9%   3,405,171   86.5%

    Operating income/margin               551,023   13.1%     530,309   13.5%

       Lease and rental expense            64,060              60,790
       Minority interests in earnings
        of consolidated entities           46,238              25,645

    Earnings before hurricane related
     expenses, hurricane insurance
     recoveries, depreciation and
     amortization, interest expense,
     and income taxes ("EBITDA")          440,725             443,874

       Hurricane related expenses, net     13,792             165,028
       Hurricane insurance recoveries    (181,791)            (81,709)
       Depreciation and amortization      163,694             155,478
       Interest expense, net               32,558              32,933

    Income before income taxes            412,472             172,144

    Provision for income taxes            152,878              62,301

    Income from continuing operations     259,594             109,843

    (Loss) income from discontinued
     operations, net of income taxes         (136)            131,002

    Net income                           $259,458            $240,845

                                           Twelve months      Twelve months
                                               ended             ended
                                         December 31, 2006  December 31, 2005
                                                     Per              Per
                                                   Diluted          Diluted
                                           Amount   Share   Amount   Share
    Calculation of Adjusted Income from
     Continuing Operations
    Income from continuing operations     $259,594  $4.57  $109,843  $1.91
    Plus/minus adjustments:
       Hurricane related expenses, net of
        minority interests and income
        taxes                                7,572   0.13    99,042   1.58
       Hurricane related insurance
        recoveries, net of minority
        interests and income taxes        (107,480) (1.86)  (48,663) (0.78)
       Retroactive effect of supplemental
        reimbursements earned in certain
          states and contractual
           settlements, net of income
           taxes                           (10,059) (0.18)   (5,225) (0.08)
       William & Mary Funding                4,466   0.08       -      -
       Favorable tax reserve adjustment     (2,900) (0.05)      -      -
       Reserve for lawsuit, net of income
        taxes                                6,273   0.11
       Gain on sale of land, net of
        income taxes                           -      -      (3,711) (0.06)
       Other combined net favorable
        adjustments                            -      -        (203) (0.01)
    Subtotal after-tax adjustments to
     income from continuing operations    (102,128) (1.77)   41,240   0.65
    Adjusted income from continuing
     operations                           $157,466  $2.80  $151,083  $2.56

    Calculation of Adjusted Net Income
    Net income                            $259,458  $4.56  $240,845  $4.00
    After-tax adjustments to income from
     continuing operations, as indicated
     above                                (102,128) (1.77)   41,240   0.65
    Gain on divestitures, net of income
     taxes                                     -      -    (127,246) (2.03)
    Adjusted net income                   $157,330  $2.79  $154,839  $2.62



                       Universal Health Services, Inc.
                     Supplemental Statistical Information
                                 (unaudited)

                                               % Change          % Change
                                            Quarter Ended    12 months ended
    Same Facility:                            12/31/2006        12/31/2006

    Acute Care Hospitals
    Revenues                                     7.0%              6.4%
    Adjusted Admissions                          2.1%              1.6%
    Adjusted Patient Days                        5.0%              3.2%
    Revenue Per Adjusted Admission               4.8%              4.7%
    Revenue Per Adjusted Patient Day             1.9%              3.1%


    Behavioral Health Hospitals

    Revenues                                      8.2%              8.4%
    Adjusted Admissions                           4.2%              2.6%
    Adjusted Patient Days                         1.4%              0.5%
    Revenue Per Adjusted Admission                3.8%              5.6%
    Revenue Per Adjusted Patient Day              6.7%              7.8%

    UHS Consolidated             Fourth Quarter Ended   Twelve months Ended
                                 12/31/2006 12/31/2005 12/31/2006  12/31/2005

    Revenues                     $1,065,881  $967,175  $4,191,300  $3,935,480
    EBITDA (1)                     106,550    96,444     440,725     443,874
    EBITDA Margin (1)                 10.0%     10.0%       10.5%       11.3%

    Cash Flow From Operations       (80,781)   68,983     169,239     425,426
    Days Sales Outstanding               51        48          51          47
    Capital Expenditures            108,132    70,069     341,140     241,412

    Debt                                             -    823,301    $642,845
    Shareholders Equity                              -  1,402,464  $1,205,098
    Debt / Total Capitalization                      -      37.0%       34.8%
    Debt / EBITDA (2)                                -       1.87        1.45
    Debt / Cash From Operations (2)                  -       4.86        1.51

    Acute Care EBITDAR Margin
     (3) (4)                          12.1%     12.1%       13.5%       13.8%
    Behavioral Health EBITDAR
     Margin  (3) (4)                  22.6%     18.7%       23.3%       22.8%

    (1)  Net of Minority Interest
    (2)  Latest 4 quarters
    (3)  Before Corporate overhead allocation and minority interest
    (4)  Excluding discontinued operations



                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                          FOR THE THREE MONTHS ENDED
                              DECEMBER 31, 2006

     AS REPORTED:

                                                      ACUTE (1) (2)
                                           12/31/06      12/31/05   %  change

       Hospitals owned and leased                  24            26    -7.7%
       Average licensed beds                    5,139         5,557    -7.5%
       Patient days                           275,664       261,720     5.3%
       Average daily census                   2,996.3       2,844.8     5.3%
       Occupancy-licensed beds                  58.3%         51.2%    13.9%
       Admissions                              62,055        60,628     2.4%
       Length of stay                             4.4           4.3     2.9%

       Inpatient revenue                   $1,910,457    $1,707,385    11.9%
       Outpatient revenue                     729,711       661,321    10.3%
       Total patient revenue                2,640,168     2,368,706    11.5%
       Other revenue                           12,859        12,635     1.8%
       Gross hospital revenue               2,653,027     2,381,341    11.4%

       Total deductions                     1,870,180     1,658,437    12.8%

       Net hospital revenue                  $782,847      $722,904     8.3%

                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                          FOR THE THREE MONTHS ENDED
                              DECEMBER 31, 2006

     AS REPORTED:

                                                BEHAVIORAL HEALTH
                                           12/31/06     12/31/05   %  change

        Hospitals owned and leased                 79           72      9.7%
        Average licensed beds                   6,927        5,996     15.5%
        Patient days                          469,340      441,347      6.3%
        Average daily census                  5,101.5      4,797.3      6.3%
        Occupancy-licensed beds                 73.6%        80.0%     -7.9%
        Admissions                             27,211       25,931      4.9%
        Length of stay                           17.2         17.0      1.3%

        Inpatient revenue                    $418,770     $389,872      7.4%
        Outpatient revenue                     51,848       47,732      8.6%
        Total patient revenue                 470,618      437,604      7.5%
        Other revenue                           8,115        8,096      0.2%
        Gross hospital revenue                478,733      445,700      7.4%

        Total deductions                      217,182      212,278      2.3%

        Net hospital revenue                 $261,551     $233,422     12.1%

      SAME FACILITY:
                                 ACUTE (1) (3)          BEHAVIORAL HEALTH (4)
                                                 %                        %
                             12/31/06 12/31/05 change 12/31/06 12/31/05 change

      Hospitals owned and
       leased                      23       23  0.0%       69       69   0.0%
      Average licensed beds     5,139    5,012  2.5%    6,193    5,920   4.6%
      Patient days            275,650  261,731  5.3%  442,621  436,310   1.4%
      Average daily census    2,996.2  2,844.9  5.3%  4,811.1  4,742.5   1.4%
      Occupancy-licensed beds   58.3%    56.8%  2.7%    77.7%    80.1%  -3.0%
      Admissions               62,055   60,628  2.4%   26,475   25,521   3.7%
      Length of stay              4.4      4.3  2.9%     16.7     17.1  -2.2%

      (1) Does not include hospitals located in France or discontinued
           operations.
      (2) Does not include discontinued operations. Licensed beds from our
          Acute care hospitals located in New Orleans are excluded in 2006.
      (3) Discontinued operations and our three acute care hospitals located
          in New Orleans are excluded in current and prior years.
      (4) Academy at Canyon Creek, Ascent, Boulder Creek, Casa de Lago, Cedar
           Ridge RTC & Hospital, Lincoln Trail,  NorthStar RTC, Northwest
           Academy, Spring Mountain Sahara, Tennessee Valley, Tuscoloosa Juv.
           Det., Triple L. Group Homes are excluded in current and prior year.
           King George School is included in both current and prior years from
           September 1st through YTD.  The Keystone facilities are included in
           both current and prior years from October 1st through YTD.
           Wyaoming Behavioral is included in both current and prior years
           from November 1st through YTD and
           Center for Change is included in both current and prior years
           from December 1st through YTD.

                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                         FOR THE TWELVE MONTHS ENDED
                              DECEMBER 31, 2006

      AS REPORTED:

                                                     ACUTE (1) (2)
                                           12/31/06      12/31/05   %  change

       Hospitals owned and leased                  24            26    -7.7%
       Average licensed beds                    5,139         5,554    -7.5%
       Patient days                         1,095,375     1,138,936    -3.8%
       Average daily census                   3,001.0       3,120.4    -3.8%
       Occupancy-licensed beds                  58.4%         56.2%     3.9%
       Admissions                             246,429       254,522    -3.2%
       Length of stay                             4.4           4.5    -0.7%

       Inpatient revenue                   $7,518,157    $7,246,246     3.8%
       Outpatient revenue                   2,876,867     2,778,036     3.6%
       Total patient revenue               10,395,024    10,024,282     3.7%
       Other revenue                           51,549        52,485    -1.8%
       Gross hospital revenue              10,446,573    10,076,767     3.7%

       Total deductions                     7,340,190     7,002,638     4.8%

       Net hospital revenue                $3,106,383    $3,074,129     1.0%



                       UNIVERSAL HEALTH SERVICES, INC.
                         SELECTED HOSPITAL STATISTICS
                         FOR THE TWELVE MONTHS ENDED
                              DECEMBER 31, 2006

      AS REPORTED:

                                                       BEHAVIORAL HEALTH
                                           12/31/06      12/31/05   %  change

       Hospitals owned and leased                  79            72     9.7%
       Average licensed beds                    6,607         4,849    36.3%
       Patient days                         1,855,306     1,446,260    28.3%
       Average daily census                   5,083.0       3,962.4    28.3%
       Occupancy-licensed beds                  76.9%         81.7%    -5.9%
       Admissions                             111,490       102,683     8.6%
       Length of stay                            16.6          14.1    18.1%

       Inpatient revenue                   $1,663,509    $1,397,256    19.1%
       Outpatient revenue                     206,453       192,824     7.1%
       Total patient revenue                1,869,962     1,590,080    17.6%
       Other revenue                           32,207        31,897     1.0%
       Gross hospital revenue               1,902,169     1,621,977    17.3%

       Total deductions                       873,202       804,537     8.5%

       Net hospital revenue                $1,028,967      $817,440    25.9%

      SAME FACILITY:

                                                                ACUTE  (1) (3)
                                            12/31/06      12/31/05   %  change

        Hospitals owned and leased                  23            23     0.0%
        Average licensed beds                    5,070         5,009     1.2%
        Patient days                         1,095,329     1,062,077     3.1%
        Average daily census                   3,000.9       2,909.8     3.1%
        Occupancy-licensed beds                  59.2%         58.1%     1.9%
        Admissions                             246,429       242,363     1.7%
        Length of stay                             4.4           4.4     1.4%


      (1) Does not include hospitals located in France or discontinued
          operations.
      (2) Does not include discontinued operations. Licensed beds from our
          Acute care hospitals located in New Orleans
          are excluded in 2006.
      (3) Discontinued operations and our three acute care hospitals
          located in New Orleans are excluded in current
          and prior years.
      (4) Academy at Canyon Creek, Ascent, Boulder Creek, Casa de Lago,
           Cedar Ridge RTC & Hospital, Lincoln Trail,
           NorthStar RTC, Northwest Academy, Spring Mountain Sahara,
           Tennessee Valley, Tuscoloosa Juv. Det., Triple L. Group Homes are
           excluded in current and prior year. King George School is included
           in both current and prior years from September 1st through
           YTD. The Keystone facilities are included in both current and
           prior years from October 1st through YTD.
           Wyaoming Behavioral is included in both current and prior
           years from November 1st through YTD and
           Center for Change is included in both current and prior years
           from December 1st through YTD.

      SAME FACILITY:

                                                      BEHAVIORAL HEALTH (4)
                                           12/31/06     12/31/05   %  change

        Hospitals owned and leased                 69           69     0.0%
        Average licensed beds                   4,925        4,827     2.0%
        Patient days                        1,464,964    1,441,093     1.7%
        Average daily census                  4,013.6      3,948.2     1.7%
        Occupancy-licensed beds                 81.5%        81.8%    -0.4%
        Admissions                            106,099      102,273     3.7%
        Length of stay                           13.8         14.1    -2.0%

      (1) Does not include hospitals located in France or discontinued
      operations.
      (2) Does not include discontinued operations. Licensed beds from our
      Acute care hospitals located in New Orleans
               are excluded in 2006.
      (3) Discontinued operations and our three acute care hospitals
      located in New Orleans are excluded in current
                and prior years.
      (4) Academy at Canyon Creek, Ascent, Boulder Creek, Casa de Lago,
      Cedar Ridge RTC & Hospital, Lincoln Trail,
              NorthStar RTC, Northwest Academy, Spring Mountain Sahara,
              Tennessee Valley, Tuscoloosa Juv. Det.,
              Triple L. Group Homes are excluded in current and prior year.
              King George School is included
              in both current and prior years from September 1st through
              YTD.
              The Keystone facilities are included in both current and
              prior years from October 1st through YTD.
              Wyaoming Behavioral is included in both current and prior
              years from November 1st through YTD and
              Center for Change is included in both current and prior years
              from December 1st through YTD.

SOURCE Universal Health Services, Inc.

Steve Filton, Chief Financial Officer of Universal Health Services, Inc.,
+1-610-768-3300
http://www.uhsinc.com/
<< Back To Press Releases