On August 13, 2018, UHS announced that its holding company has entered into a definitive merger agreement with Federal Street Acquisition Corp. (FSAC) pursuant to which, FSAC and UHS will form a new, publicly traded company with a new name — Agiliti.

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Universal Hospital Services, Inc. Announces 2004 Fourth Quarter and Full Year Results

Posted: March 21, 2005

Dateline City:
EDINA, Minn.

EDINA, Minn.–(BUSINESS WIRE)–March 21, 2005–Universal Hospital Services, Inc., the leader in medical equipment lifecycle services, today announced financial results for the fourth quarter and year ended December 31, 2004.

Total revenues were $51.7 million for the fourth quarter of 2004, representing a $7.1 million or 16% increase from total revenues of $44.6 million for the same period of 2003. For the year, total revenues increased 17% over the same period in 2003 (from $171.0 million to $199.6 million).

Gross margin for the fourth quarter of 2004 totaled $22.0 million, representing a $2.9 million or 15% increase from total gross margin of $19.1 million for the same period of 2003. For the year, total gross margin increased 13% over the same period in 2003 (from $75.6 million to $85.8 million).

Net loss for the quarter was $3.3 million, compared to net loss of $24.5 million for the same quarter last year. The net loss for the year of 2004 is $3.6 million, compared to net loss of $19.5 million last year. The change from last year is due primarily to the absence of $27.7 million of financing and reorganization charges related to our recapitalization in fourth quarter 2003, partially offset by increased interest expense also related to the recapitalization.

Earnings before interest, taxes, depreciation and amortization (EBITDA(a)) before management and board fees for the year of 2004 were $69.2 million versus $64.5 million (excluding financing and reorganization charges) for the prior year, a $4.7 million or 7% increase. Included in the 2004 results are $0.8 million of staffing related charges in the fourth quarter, substantially related to acceleration of our sales and customer service realignment. A reconciliation of EBITDA (before management/board fees and financing and reorganization costs) to operating cash flows is included on the attached Statements of Cash Flows.

“We are pleased with our performance during 2004 as we have continued to demonstrate solid growth in a year with flat to down hospital census growth. We are making excellent progress in transitioning UHS from its historical focus on supplemental rental to its future as a medical equipment lifecycle services company,” said President and CEO Gary Blackford. “Our growth in 2004 was broad based across each of our business units, including our legacy supplemental outsourcing business, our resident-based programs and our less capital intensive businesses of biomedical services and equipment sales and remarketing.”

UHS will hold its quarterly conference call to discuss 2004 fourth quarter and full year results on Monday, March 21, 2005, at 11:00 a.m. Eastern Standard Time (10:00 a.m. Central Standard Time).

To participate, call (800) 310-1961 and indicate you would like to join in the UHS Fourth Quarter Results call with Gary Blackford as the leader, or reference conference ID # 5524963. A taped replay of this call will be available from 12:00 p.m. Eastern Time on March 21 through 12:00 a.m. on March 28 by calling (888) 203-1112, confirmation #5524963.

This call is being webcast by CCBN and can be accessed at the Universal Hospital Services, Inc. web site at www.uhs.com. Click on “Financials” and then on “Webcasts.” UHS will also use a slide presentation to facilitate the conference call discussion. A copy of the presentation will be available via the company’s website in the “Financials” section.

The webcast is also being 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 www.fulldisclosure.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).

About Universal Hospital Services, Inc.

Based in Edina, Minnesota, Universal Hospital Services, Inc. is a leading medical equipment lifecycle services company. UHS offers comprehensive solutions that maximize utilization, increase productivity and support optimal patient care resulting in capital and operational efficiencies. UHS currently operates through more than 70 offices, serving customers in all 50 states and the District of Columbia.

 Universal Hospital Services, Inc. 7700 France Avenue S #275 Edina, MN 55435 952-893-3200 www.uhs.com 

(a) EBITDA Reconciliation. EBITDA (before management/board fees and financing and reorganization costs) and EBITDA are not intended to represent an alternative to operating income or cash flows from operating, financing or investing activities (as determined in accordance with generally accepted accounting principles (GAAP)) as a measure of performance, and is not representative of funds available for discretionary use due to the Company’s financing obligations. EBITDA, as defined by the Company, may not be calculated consistently among other companies applying similar reporting measures. EBITDA is included because it is a widely accepted financial indicator used by certain investors and financial analysts to assess and compare companies and is an integral part of the Company’s debt covenant calculations, and EBITDA before management and board fees is included because the company’s financial guidance and certain compensation plans are based upon this measure. Management believes that EBITDA provides an important perspective on the Company’s ability to service its long-term obligations, the Company’s ability to fund continuing growth, and the Company’s ability to continue as a going concern. A reconciliation of EBITDA (before management/board fees and financing and reorganization costs) and EBITDA to operating cash flows is included on the attached Statements of Cash Flows.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Universal Hospital Services, Inc. believes statements in this presentation looking forward in time involve risks and uncertainties. The following factors, among others, could adversely affect our business, operations and financial condition causing our actual results to differ materially from those expressed in any forward-looking statements: UHS’ history of net losses and substantial interest expense; UHS’ need for substantial cash to operate and expand its business as planned; UHS’ substantial outstanding debt and debt service obligations; restrictions imposed by the terms of UHS’ debt; a decrease in the number of patients our customers are serving; UHS’ ability to effect change in the manner in which healthcare providers traditionally procure medical equipment; the absence of long-term commitments with customers; UHS’ ability to renew contracts with group purchasing organizations and integrated delivery networks; changes in reimbursement rates and policies by third-party payors; the impact of health care reform initiatives; the impact of significant regulation of the health care industry and the need to comply with those regulations; difficulties or delays in our continued expansion into certain of our businesses/geographic markets and developments of new businesses/geographic markets; and additional credit risks in increasing business with home care providers and nursing homes. These and other risk factors are detailed in UHS’ Annual Report on Form 10K/A for the year ended December 31, 2003, filed with Securities and Exchange Commission.

                   UNIVERSAL HOSPITAL SERVICES, INC.                             BALANCE SHEETS     (dollars in thousands except share and per share information)                                  ASSETS                                              December 31, December 31,                                                 2004         2003                                              ------------ ------------                                                     (unaudited) Current assets:    Accounts receivable, less allowance for    doubtful accounts of $1,500 and $1,750 at    December 31, 2004 and December 31, 2003,    respectively                                  $40,644      $33,943   Inventories                                      5,229        3,441   Deferred income taxes                            2,449        2,205   Other current assets                             3,458        1,961                                              ------------ ------------     Total current assets                          51,780       41,550  Property and equipment, net:    Movable medical equipment, net                 125,987      122,931   Property and office equipment, net              10,042        6,784                                              ------------ ------------     Total property and equipment, net            136,029      129,715  Intangible assets:    Goodwill                                        37,062       36,348   Other, primarily deferred financing costs,    net                                            10,471       11,423   Other intangibles, net                          11,065        1,183                                              ------------ ------------     Total assets                                $246,407     $220,219                                              ============ ============                 LIABILITIES AND SHAREHOLDERS' DEFICIENCY  Current liabilities:    Current portion of long-term debt                 $328         $284   Accounts payable                                13,406       13,775   Accrued compensation and pension                 9,276        7,699   Accrued interest                                 4,615        5,600   Other accrued expenses                           1,594        1,840   Deferred revenues                                1,000          170   Book overdrafts                                  4,691        3,891                                              ------------ ------------     Total current liabilities                     34,910       33,259  Long-term debt, less current portion             296,974      270,798 Deferred compensation and pension                  3,706        3,860 Deferred income taxes                              3,937        2,205  Shareholders' deficiency:    Common stock, $0.01 par value; 500,000,000    shares authorized, 123,430,613 and    122,768,962 shares issued and outstanding    at December 31, 2004 and December 31,    2003, respectively                              1,234        1,228   Additional paid-in capital                         698            -   Deferred compensation                              (62)           -   Accumulated deficit                            (92,010)     (88,375)   Accumulated other comprehensive loss            (2,980)      (2,756)                                              ------------ ------------     Total shareholders' deficiency               (93,120)     (89,903)                                              ------------ ------------     Total liabilities and shareholders'      deficiency                                 $246,407     $220,219                                              ============ ============                      Universal Hospital Services, Inc.                          Statements of Income                         (dollars in thousands)                              Three Months Ended    Twelve Months Ended                                 December 31,         December 31,                            --------------------- ---------------------                               2004       2003       2004       2003                            ----------- --------- ----------- ---------                                 (unaudited)           (unaudited)   Medical equipment    outsourcing                $39,554   $36,292    $156,490  $140,232   Medical equipment sales,    remarketing and    disposables, and other       4,795     4,408      17,619    16,110   Technical and    professional services        7,356     3,920      25,491    14,663                            ----------- --------- ----------- ---------   Total revenues               51,706    44,620     199,600   171,005   Costs of medical    equipment outsourcing,    sales and service           29,686    25,538     113,783    95,398                            ----------- --------- ----------- ---------   Gross margin                 22,020    19,082      85,817    75,607   Selling, general and    administrative              16,361    26,163      57,713    61,342                            ----------- --------- ----------- ---------   Operating income              5,659    (7,081)     28,104    14,265   Interest expense              8,026     7,211      30,509    20,244   Loss on early retirement    of debt                          -    13,272           -    13,272                            ----------- --------- ----------- ---------   Loss before income taxes     (2,367)  (27,564)     (2,404)  (19,251)   Provision (benefit) for    income taxes                   963    (3,061)      1,188       275                            ----------- --------- ----------- ---------   Net loss                    $(3,330) $(24,503)    $(3,592) $(19,526)                            =========== ========= =========== ========= Additional information   EBITDA                      $16,908  $(11,419)    $68,458   $36,525   EBITDA as a percentage    of total revenues             32.7%    -25.6%       34.3%     21.4%   Movable medical    equipment (approximate    number of units at end    of period)                                       150,000   144,000   Offices (at end of    period)                                               75        69   Number of hospital    outsourcing customers    (at end of period)                                 3,100     2,900   Number of total    outsourcing customers    (at end of period)                                 6,250     5,950   Movable medical    equipment depreciation    expense                     $9,094    $8,196     $36,003   $32,147                                                              Percent                                                           Increase                           Percent of Total Revenues      (Decrease)                                                                 Twelve                                                                Months                                                         Qtr 4   2004                         Three Months    Twelve Months   2004    Over                             Ended           Ended       Over   Twelve                          December 31,   December 31,    Qtr 4  Months                          2004    2003   2004     2003    2003    2003                         ------ ------- ------ -------- ------- -------                          (unaudited)     (unaudited)     (unaudited) Medical equipment  outsourcing             76.5%   81.3%  78.4%    82.0%    9.0%   11.6% Medical equipment  sales, remarketing and  disposables, and other   9.3     9.9    8.8    9.400     8.8     9.4 Technical and  professional services   14.2     8.8   12.8    8.600     8.7    73.8                         ------ ------- ------ -------- ------- ------- Total revenues          100.0   100.0  100.0    100.0    15.9    16.7 Costs of medical  equipment outsourcing,  sales and service       57.4    57.2   57.0   55.800    16.2    19.3                         ------ ------- ------ -------- ------- ------- Gross margin             42.6    42.8   43.0   44.200    15.4    13.5 Selling, general and  administrative          31.6  58.600   28.9   35.900   (37.5)   (5.9)                         ------ ------- ------ -------- ------- ------- Operating income         10.9   (15.9)  14.1    8.300  (179.9)   97.0 Interest expense         15.5    16.2   15.3   11.800    11.3    50.7 Loss on early  retirement of debt         -    29.7      -    7.800  (100.0) (100.0)                         ------ ------- ------ -------- ------- ------- Loss income before  income taxes            (4.6)  (61.8)  (1.2) (11.300)  (91.4)  (87.5) Provision (benefit) for  income taxes             1.9    (6.9)   0.6    0.200  (131.5)  332.0                         ------ ------- ------ -------- ------- ------- Net loss                 -6.4%  -54.9% (1.8%)   -11.4%   86.4%   81.6%                         ====== ======= ====== ======== ======= =======                      Universal Hospital Services, Inc.                        Statements of Cash Flows                         (dollars in thousands)                                                    Twelve Months Ended                                                       December 31,                                                   --------------------                                                     2004      2003 Cash flows from operating activities:                 (unaudited)   Net loss                                         $(3,592)  $(19,526)   Adjustments to reconcile net loss to net cash    provided by operating activities:     Depreciation                                    39,217     34,400     Amortization of intangibles                      1,136      1,131     Accretion of bond discount                           -        415     Provision for doubtful accounts                    984        762     Non-cash stock-based compensation expense            -        170     (Gain) loss on sales/disposal of equipment        (892)       181     Deferred income taxes                            1,488      5,877     Changes in operating assets and liabilities,      net of impact of acquisition:        Accounts receivable                          (5,416)    (4,799)        Inventories and other operating assets       (2,376)      (754)        Accounts payable and accrued expenses         7,423     (1,900)                                                   --------- ----------     Net cash provided by operating activities       37,972     15,957                                                   --------- ----------  Cash flows from investing activities:   Movable medical equipment purchases              (47,117)   (33,715)   Property and office equipment purchases           (6,102)    (3,306)   Proceeds from disposition of movable medical    equipment                                         3,174      2,331   Acquisitions                                     (15,104)    (1,875)   Other                                                  -       (204)                                                   --------- ----------     Net cash used in investing activities          (65,149)   (36,769)                                                   --------- ----------  Cash flows from financing activities:   Proceeds under loan agreements                   113,041     70,500   Payments under loan agreements                   (86,866)  (128,714)   Repurchase of common stock                           (43)   (77,917)   Payment of deferred financing cost                     -    (11,740)   Proceeds from issuance of bonds                        -    260,000   Redemption of bonds                                    -   (135,000)   Redemption of series A preferred stock                 -    (13,769)   Proceeds from issuance of common stock, net of    offering costs                                      642     56,273   Other                                               (397)         -   Change in book overdraft                             800      1,179                                                   --------- ----------     Net cash provided by financing activities       27,177     20,812                                                   --------- ----------  Net change in cash and cash equivalents               $---       $---                                                   ========= ==========  Supplemental cash flow information:     Interest paid                                  $29,812    $18,841                                                   ========= ==========     Income taxes paid                                 $(98)      $348                                                   ========= ==========     Movable medical equipment purchases in      accounts payable                               $3,808    $10,503                                                   ========= ==========     Movable medical equipment additions            $41,344    $39,130                                                   ========= ==========  Additional information      Net cash provided by operating activities      $37,972    $15,957     Changes in operating assets and liabilities        369      7,454     Other non-cash expenses                         (1,580)    (7,405)     Current income taxes                             1,188        275     Interest expense                                30,509     20,244                                                   --------- ----------                                                    --------------------     EBITDA                                         $68,458    $36,525                                                   --------------------        Board Fees                                       727        351       Financing and Reorganization Charges               0     27,658                                                   --------- ----------                                                    $69,185    $64,534                                                   ========= ========== 
Language:
English
Contact:
Universal Hospital Services, Inc.
Bethany A. Oliver, 952-893-3288