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• Net Income per Diluted Share: $4.80 for Q1 2025; Adjusted net income per diluted share: $4.84.

• Same Facility Adjusted Admissions: Increased by 2.4% in acute care hospitals.

• Same Facility Net Revenues (Acute Care): Increased by 5.0% in Q1 2025.

• Operating Expenses: Increased by 2.6% on a same facility basis.

• EBITDA: Increased by 21% after excluding Medicaid supplemental payments.

• Same Facility Net Revenues (Behavioral Health): Increased by 5.5%.

• Revenue per Adjusted Day (Behavioral Health): Increased by 5.8%.

• Cash from Operating Activities: Decreased from $396 million in Q1 2024 to $360 million in Q1 2025.

• Capital Expenditures: $239 million in Q1 2025.

• Share Repurchase: Acquired 1 million shares at a cost of approximately $181 million.

• Available Borrowing Capacity: $1.02 billion as of March 31, 2025.

• Warning! GuruFocus has detected 3 Warning Sign with UHS.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Universal Health Services Inc (NYSE:UHS) reported a net income per diluted share of $4.80 for Q1 2025, with an adjusted net income of $4.84.

• Same facility net revenues in the acute care hospital segment increased by 5.0% compared to the previous year.

• Operating expenses were well managed, with a modest increase of 2.6% over the previous year.

• The company experienced a 21% increase in EBITDA, excluding Medicaid supplemental payments.

• West Henderson Hospital in Las Vegas opened in late 2024 and posted a modestly positive EBITDA in Q1 2025.

Negative Points

• Cash generated from operating activities decreased from $396 million in Q1 2024 to $360 million in Q1 2025.

• The year-over-year patient day growth comparison was negatively impacted by the extra leap day in 2024 and challenging winter weather conditions.

• There were delays in receipt of funds related to certain Medicaid supplemental payments, impacting cash flow.

• Behavioral health hospital patient days were relatively flat compared to the prior year, affected by weather and leap year impacts.

• The company faces uncertainty in the external operating environment, particularly regarding Medicaid supplemental payments.

Q & A Highlights

Q: Can you provide an update on behavioral health volumes and guidance for the year? A: Steve Filton, CFO, stated that the full-year guidance assumes behavioral patient day revenue growth of 2.5% to 3%. March showed improvement after weather-related impacts in January and February, and they remain confident in achieving the target for the year.

Q: What is the status of Medicaid supplemental payment programs in Nevada and other states? A: Marc Miller, CEO, mentioned that Nevada's program has been reapproved, and payments were received in April. They are awaiting approvals in Washington, DC, and Tennessee, with expectations of positive outcomes based on state feedback.