Universal Health Services, Inc.
Consolidated Statements of Income
December 2002
(in thousands, except per share amounts)
(unaudited)

  Three months ended December 31, Twelve months ended December 31,
  2002 2001 2002 2001
Net revenues $835,478 $724,162 $3,258,898 $2,840,491
Operating charges:
  Salaries, wages and benefits 334,334 289,643 1,298,967 1,122,428
  Other operating expenses 201,209 179,286 787,408 668,026
  Supplies expense 111,395 91,469 425,142 368,091
  Provision for doubtful accounts 58,033 53,438 231,362 240,025
  Depreciation and amortization 34,350 32,893 124,794 127,523
  Lease and rental expense 15,623 13,951 61,712 53,945
  Interest expense, net 9,248 7,368 34,746 36,176
  Provision for insurance settlements 0 40,000 0 40,000
  Recovery of facility closure costs (2,182) 0 (2,182) 0
  (Gain)/losses on foreign exchange and derivative transactions (50) 7,353 220 8,862
  761,960 715,401 2,962,169 2,665,076
Income before minority interests, income taxes and extraordinary charge 73,518 8,761 296,729 175,415
Minority interests in earnings of consolidated entities 4,173 6,194 19,658 17,518
Income before income taxes 69,345 2,567 277,071 157,897
Provision for income taxes 25,455 632 101,710 57,147
Net income before extraordinary charge 43,890 1,935 175,361 100,750
Extraordinary charge from early extinguishment of debt, net of taxes 0 1,008 0 1,008
Net income $43,890 $927 $175,361 $99,742
Earnings per common share - basic $0.74 $0.02 $2.94 $1.67
Earnings per common share - diluted $0.69 $0.02 $2.74 $1.60
Weighted average number of common shares - basic 59,241 59,829 59,730 59,874
Weighted average number of common share equivalents 7,582 688 7,345 7,346
Weighted average number of common shares and equiv. - diluted 66,823 60,517 67,075 67,220
EARNINGS PER SHARE CALCULATION
Net income $43,890 $927 $175,361 $99,742
Add: Debenture interest, net of taxes 2,134 0 8,451 8,120
Adjusted net income $46,024 $927 $183,812 $107,862
Weighted average number of common shares - basic 59,241 59,829 59,730 59,874
Add: Shares for conversion of convertible debentures 6,577 0 6,577 6,577
  Other share equivalents 1,005 688 768 769
Weighted average number of common shares and equiv. - diluted 66,823 60,517 67,075 67,220
Earnings per common share - diluted $0.69 $0.02 $2.74 $1.60


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