EBITDA Reconciliation Adjusted EBITDA Reconciliation. Adjusted EBITDA is defined by UHS as Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), before management, board and strategic fees, stock option expense, reorganization costs, ASC 805 impact, loss on extinguishment of debt, transaction and related costs, and non-recurring, unusual or infrequent expenses. In addition to using Adjusted EBITDA internally as a measure of operational performance, we disclose Adjusted EBITDA externally to assist analysts, investors and lenders in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. Management also understands that some industry analysts and investors consider Adjusted EBITDA as a supplementary non-GAAP financial measure useful in analyzing a company’s ability to service debt. Adjusted EBITDA, however, is not a measure of financial performance under Generally Accepted Accounting Principals (“GAAP”) and should not be considered as an alternative to, or more meaningful than, net income as a measure of operating performance or to cash flows from operating, investing or financing activities or as a measure of liquidity. Since Adjusted EBITDA is not a measure determined in accordance with GAAP and is thus susceptible to varying interpretations and calculations, Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA does not represent an amount of funds that is available for management’s discretionary use. A reconciliation of consolidated net income (loss) to EBITDA and Adjusted EBITDA is included below. (In millions) LTM 2017 2016 2017 2016 2017 Net loss attributable to UHS (2.4) $ (0.7) $ (4.4) $ (5.4) $ (12.8) $ Interest expense 13.2 13.1 26.5 26.1 52.7 Provision for income taxes 0.3 0.2 0.5 0.4 1.0 Depreciation and amortization 20.0 21.5 40.9 42.4 82.9 EBITDA 31.1 34.1 63.5 63.5 123.8 Gain on Settlement - (2.8) - (2.8) (0.3) Management, board & strategic fees 2.2 0.9 3.6 1.6 7.1 Stock expense 0.8 0.8 1.6 1.5 3.2 Adjusted EBITDA 34.1 $ 33.0 $ 68.7 $ 63.8 $ 133.8 $ June YTD 2nd Quarter
