UHS(UHS) - 2024 Q4 - Annual Results

Financial Performance - Reported net income attributable to Universal Health Services (UHS) for Q4 2024 was $332.4 million, or$ 4.96 per diluted share, a significant increase from $216.4 million, or$ 3.16 per diluted share in Q4 2023, representing a 53.8% increase[1]. - For the full year 2024, reported net income attributable to UHS was $1.142 billion, or$ 16.82 per diluted share, compared to $717.8 million, or$ 10.23 per diluted share in 2023, marking a 59.0% increase[6]. - Net income attributable to UHS for Q4 2024 was $332.397 million, compared to$ 216.378 million in Q4 2023, marking a year-over-year increase of 53.8%[35]. - For the twelve months ended December 31, 2024, net income attributable to UHS reached $1.142 billion, up from$ 719.307 million in 2023, representing a growth of 58.7%[35]. - Adjusted net income attributable to UHS for the same period was $1,128,135, up 52.7% from$ 739,365 in 2023[43]. Revenue Growth - Net revenues for Q4 2024 increased by 11.1% to $4.114 billion, compared to$ 3.704 billion in Q4 2023[1]. - Full year net revenues for 2024 rose by 10.8% to $15.828 billion, up from$ 14.282 billion in 2023[6]. - Total revenues for UHS in the fourth quarter of 2024 reached $4,113,722, a 11.1% increase compared to$ 3,703,546 in the same quarter of 2023[49]. - For the twelve months ended December 31, 2024, net revenues for All Acute Care Hospital Services reached $8,922.3 million, a 10.4% increase from$ 8,081.4 million in 2023[52]. - Net revenues for the three months ended December 31, 2024, increased to $1,792.7 million, a 10.9% rise from$ 1,615.5 million in the same period of 2023[56]. EBITDA and Cash Flow - Adjusted EBITDA net of noncontrolling interests for Q4 2024 was $614.6 million, up from$ 473.4 million in Q4 2023, reflecting a 29.8% increase[5]. - EBITDA for the year ended December 31, 2024, was $2,247,864, reflecting a 31.1% increase from$ 1,713,629 in 2023[49]. - Net cash provided by operating activities for the full year 2024 was $2.067 billion, a substantial increase of$ 799 million from $1.268 billion in 2023[15]. Shareholder Returns - The company repurchased approximately 1.25 million shares at a cost of$ 249.6 million during Q4 2024, and approximately 2.98 million shares for $598.5 million throughout the full year 2024[19]. Forecasts and Projections - The 2025 forecasted range for net revenues is between$ 17.020 billion and $17.364 billion, with adjusted EBITDA net of noncontrolling interests projected between$ 2.357 billion and $2.484 billion[23]. - The forecasted EPS-diluted for 2025 is expected to be between$ 18.45 and $19.95 per share[23]. - Estimated net revenues for 2025 are projected to be between$ 17.020 billion and $17.364 billion, reflecting an increase of 7.5% to 9.7% compared to 2024's net revenues of$ 15.828 billion[30]. - Adjusted EBITDA net of NCI for 2025 is expected to range from $2.357 billion to$ 2.484 billion, representing a growth of 4.9% to 10.6% over the 2024 figure of $2.246 billion[30]. - Diluted EPS is forecasted to be between$ 18.45 and $19.95, indicating an increase of 11.1% to 20.1% from the adjusted net income of$ 16.61 per diluted share for 2024[30]. Operational Metrics - Revenue per adjusted admission for acute care services increased by 5.3% in the fourth quarter of 2024 compared to the same period in 2023[49]. - Operating expenses for Same Facility Acute Care Hospital Services totaled $1,976.9 million, representing 89.4% of net revenues, compared to 92.8% in the prior year[51]. - Income from operations for Same Facility Acute Care Hospital Services increased to$ 233.9 million, or 10.6% of net revenues, up from $147.3 million, or 7.2% of net revenues, in the same quarter last year[51]. - The number of hospitals owned and leased increased to 28, a 3.7% rise from 27 in the previous year[59]. - Average licensed beds in acute care facilities increased to 6,707, a 0.5% increase from 6,674 in the prior year[59]. Challenges and Risks - A significant portion of revenues is derived from government programs, which are subject to regulatory changes that could materially impact future results[32]. - The company faces potential adverse effects from increased interest rates, which have raised interest expenses and reduced free cash flow[32]. - Interest expense for the twelve months ended December 31, 2024, was$ 186.109 million, a decrease from $206.674 million in 2023, indicating a reduction of 9.9%[35].