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 2005 Third Quarter Results

Posted: November 8, 2005

Dateline City:
EDINA, Minn.

EDINA, Minn.–(BUSINESS WIRE)–Nov. 8, 2005–Universal Hospital Services, Inc., a leader in medical equipment lifecycle services, today announced financial results for the quarter and nine months ended September 30, 2005.

Total revenues were $53.4 million for the third quarter of 2005, representing a $3.8 million or 8% increase from total revenues of $49.6 million for the same period of 2004. Through the first nine months of 2005, revenues increased by 10% to $162.0 million.

Net loss for the quarter was $1.1 million, compared to a net loss of $1.0 million for the same quarter last year. During the first nine months of 2005 the company reported a net loss of $1.6 million versus a net loss of $0.3 million for the same period of 2004.

Third quarter EBITDA before management/board fees and SOX compliance costs was $18.3 million, representing a $1.5 million or 9% increase from $16.8 million for the same period of 2004. EBITDA before management/board fees and SOX compliance costs for the first nine months of 2005 increased $3.3 million, or 6% to $55.7 million from $52.4 million for the first nine months of 2004.

“We are pleased that third quarter and year-to-date results met our expectations in spite of the challenges of a weak hospital census environment and medical equipment recalls,” said Gary Blackford, President and CEO. “We are making solid progress in building operating efficiencies and a more productive, diversified business model as we continue toward our goal of becoming the premier Equipment Lifecycle Services company in the industry.”

UHS will hold its quarterly conference call to discuss 2005 third quarter results on Wednesday, November 9, 2005, at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).

To participate, call (800) 428-5596 and advise the operator you would like to participate in the UHS Third Quarter Call with Gary Blackford. A taped replay of this call will be available from 1:00 p.m. Eastern Time on November 9 through 12:00 a.m. Eastern Time on November 16 by calling (800) 633-8284; enter reservation #21267630.

The audio-only portion of 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”. The webcast is 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.earnings.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).

UHS will also use a slide presentation to facilitate the conference call discussion. A copy of the presentation may be obtained via the company’s website in the “Financials” section.

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 75 offices, serving customers in all 50 states and the District of Columbia.

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

EBITDA Reconciliation. EBITDA (before management/board fees, financing and reorganization costs, and costs related to Sarbanes Oxley compliance) 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 operating cash flows to EBITDA (before management/board fees, financing and reorganization costs, and costs related to Sarbanes Oxley compliance) and EBITDA 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: our history of net losses and substantial interest expense; our need for substantial cash to operate and expand our business as planned; our substantial outstanding debt and debt service obligations; restrictions imposed by the terms of our debt; a decrease in the number of patients our customers are serving; our ability to effect change in the manner in which healthcare providers traditionally procure medical equipment; the absence of long-term commitments with customers; our 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; additional credit risks in increasing business with home care providers and nursing homes, and impacts of equipment product recalls or obsolescence. See the risk factor discussion detailed in our annual report on Form 10K for the year ended December 31, 2004, filed with the Securities and Exchange Commission.

                    Universal Hospital Services, Inc.                          Statements of Income                         (dollars in thousands)                              (unaudited)                               Three Months Ended    Nine Months Ended                                September 30,         September 30,                             -------------------- ---------------------                                2005       2004      2005       2004                             ----------- -------- ----------- ---------                             (unaudited)          (unaudited)   Medical equipment    outsourcing                 $40,742  $38,582    $125,642  $116,936   Technical and professional    services                      7,546    6,735      22,401    18,135   Medical equipment sales &    remarketing                   5,075    4,291      13,990    12,824                             ----------- -------- ----------- ---------   Total revenues                53,363   49,608     162,033   147,895    Cost of Sales   -------------   Cost of medical equipment    outsourcing                  13,407   11,693      39,879    34,753   Cost of technical and    professional services         5,677    4,764      16,825    12,652   Cost of medical equipment    sales & remarketing           4,003    3,488      11,117     9,784   Movable medical equipment    depreciation                  9,631    9,259      28,051    26,909                             ----------- -------- ----------- ---------   Total costs of medical    equipment outsourcing,    service and sales            32,718   29,204      95,872    84,098                             ----------- -------- ----------- ---------   Gross margin                  20,645   20,404      66,161    63,797   Selling, general and    administrative               13,771   13,956      43,986    41,351                             ----------- -------- ----------- ---------   Operating income               6,874    6,448      22,175    22,446   Interest expense               7,721    7,550      23,142    22,483                             ----------- -------- ----------- ---------   (Loss) income before    income taxes                   (847)  (1,102)       (967)      (37)   Provision (benefit) for    income taxes                    210     (114)        630       225                             ----------- -------- ----------- ---------   Net loss                     $(1,057)   $(988)    $(1,597)    $(262)                             =========== ======== =========== ========= Additional information   EBITDA                       $18,023  $16,646     $54,500   $51,837   EBITDA as a percentage of    total revenues                 33.8%    33.6%       33.6%     35.0%   Movable medical equipment    (approximate number of    units at end of period)     160,000  151,000     160,000   151,000   Offices (at end of period)        77       76          77        76   Number of hospital    outsourcing customers (at    end of period)                3,200    3,100       3,200     3,100   Number of total    outsourcing customers (at    end of period)                6,350    6,250       6,350     6,250   Movable medical equipment    depreciation expense          9,631    9,259      28,051    26,909   Non-movable medical    equipment depreciation    and amortization             $1,959     $939      $5,583    $2,482                      UNIVERSAL HOSPITAL SERVICES, INC.                             BALANCE SHEETS     (dollars in thousands except share and per share information)                              (unaudited)                                  ASSETS                                             September 30, December 31,                                                 2005          2004                                             ------------- ------------                                              (unaudited) Current assets:    Accounts receivable, less allowance for    doubtful accounts of $1,500 at September    30, 2005 and December 31, 2004                 40,666       40,644   Inventories                                      5,255        5,229   Deferred income taxes                            2,517        2,449   Other current assets                             2,280        3,458                                             ------------- ------------     Total current assets                          50,718       51,780  Property and equipment, net:    Movable medical equipment, net                 124,005      125,987   Property and office equipment, net              10,242       10,042                                             ------------- ------------     Total property and equipment, net            134,247      136,029  Intangible assets:    Goodwill                                        37,062       37,062   Other, primarily deferred financing costs,    net                                             9,934       10,471   Other intangibles, net                           9,730       11,065                                             ------------- ------------     Total assets                                $241,691     $246,407                                             ============= ============                 LIABILITIES AND SHAREHOLDERS' DEFICIENCY  Current liabilities:    Current portion of long-term debt                  $95         $328   Accounts payable                                10,374       13,406   Accrued compensation                             6,215        9,276   Accrued interest                                11,047        4,615   Other accrued expenses                           4,442        2,594   Book overdrafts                                  2,366        4,691                                             ------------- ------------     Total current liabilities                     34,539       34,910  Long-term debt, less current portion             293,575      296,974 Deferred compensation and pension                  3,792        3,644 Deferred income taxes                              4,420        3,937  Shareholders' deficiency:    Common stock, $0.01 par value; 500,000,000    shares authorized, 123,437,689.21 and    123,430,612.96 shares issued and    outstanding at September 30, 2005 and    December 31, 2004, respectively                 1,234        1,234   Additional paid-in capital                         767          760   Accumulated deficit                            (93,606)     (92,010)   Deferred compensation                              (50)         (62)   Accumulated other comprehensive loss            (2,980)      (2,980)                                             ------------- ------------     Total shareholders' deficiency               (94,635)     (93,058)                                             ------------- ------------     Total liabilities and shareholders'      deficiency                                 $241,691     $246,407                                             ============= ============                      Universal Hospital Services, Inc.                        Statements of Cash Flows                         (dollars in thousands)                              (unaudited)                                                    Nine Months Ended                                                      September 30,                                                 ----------------------                                                    2005        2004 Cash flows from operating activities:                (unaudited)   Net (loss) income                                $(1,597)     $(262)   Adjustments to reconcile net (loss) income to    net cash provided by operating activities:     Depreciation                                    30,990     29,089     Amortization of intangibles and deferred      financing costs                                 2,644        302     Provision for doubtful accounts                    830      1,051     Provision for inventory obsolescence               210        140     Non-cash stock-based compensation expense           12          -     Gain on sales/disposal of equipment               (822)      (470)     Deferred income taxes                              415          -     Changes in operating assets and liabilities,      net of impact of acquisitions:       Accounts receivable                             (768)    (3,125)       Inventories and other operating assets           942       (339)       Accounts payable and accrued expenses          1,776     10,748                                                 ----------- ----------     Net cash provided by operating activities       34,632     37,134                                                 ----------- ----------  Cash flows from investing activities:   Movable medical equipment purchases              (26,920)   (34,271)   Property and office equipment purchases           (3,007)    (3,008)   Proceeds from disposition of movable medical    equipment                                         2,101      2,372   Acquisitions                                           -    (15,455)   Other                                                  -     (1,081)                                                 ----------- ----------     Net cash used in investing activities          (27,826)   (51,443)                                                 ----------- ----------  Cash flows from financing activities:   Proceeds under revolving credit facility    agreements                                       71,289     75,714   Payments under revolving credit facility    agreements                                      (74,921)   (58,378)   Payment of deferred financing cost                  (856)         -   Proceeds from issuance of common stock, net of    issuance costs                                        7        705   Repurchase of common stock                             -        (43)   Change in book overdraft                          (2,325)    (3,689)                                                 ----------- ----------     Net cash (used in) provided by financing      activities                                     (6,806)    14,309                                                 ----------- ----------  Net change in cash and cash equivalents                 $-          -                                                 =========== ==========  Cash and cash equivalents at the beginning of  period                                                 $-         $- Cash and cash equivalents at the end of period          $-         $-  Supplemental cash flow information:     Interest paid                                  $15,394    $15,710                                                 =========== ==========     Movable medical equipment purchases in      accounts payable                               $4,368     $4,187                                                 =========== ==========     Income taxes paid                                 $111        $61                                                 =========== ==========  Additional information      Net cash provided by operating activities      $34,632    $37,134     Changes in operating assets and liabilities     (1,950)    (7,284)     Other non-cash expenses                         (1,955)      (721)     Current income taxes                               631        225     Interest expense                                23,142     22,483                                                 ----------- ----------      EBITDA                                         $54,500    $51,837                                                 =========== ==========                                                         Percent Increase                           Percent of Total Revenues     (Decrease)                                                                                                                               9 Months                          Three Months   Nine Months   Qtr 3    2005                              Ended         Ended       2005    Over                           September 30, September 30, Over Qtr 9 Months                           2005   2004   2005   2004   3 2004   2004                          ------------- ------------- -----------------  Medical equipment  outsourcing              76.4%  77.8%  77.5%  79.1%     5.6%     7.4% Technical and  professional services    14.1   13.6   13.8   12.3     12.0     23.5 Medical equipment sales &  remarketing               9.5    8.6    8.6    8.6     18.3      9.1                          ------ ------ ------ ------ ----------------- Total revenues           100.0  100.0  100.0  100.0      7.6      9.6  Cost of Sales ------------- Cost of medical equipment  outsourcing              25.2   23.6   24.6   23.5     14.7     14.7 Cost of technical and  professional services    10.6    9.6   10.4    8.6     19.2     33.0 Cost of medical equipment  sales & remarketing       7.5    7.0    6.9    6.6     14.8     13.6 Movable medical equipment  depreciation             18.0   18.7   17.3   18.2      4.0      4.2                          ------ ------ ------ ------ ----------------- Total costs of medical  equipment outsourcing,  service and sales        61.3   58.9   59.2   56.9     12.0     18.6                          ------ ------ ------ ------ ----------------- Gross margin              38.7   41.1   40.8   43.1      1.2      3.7 Selling, general and  administrative           25.8   28.1   27.1   27.9     (1.3)     6.4                          ------ ------ ------ ------ ----------------- Operating  income         12.9   13.0   13.7   15.2      6.6     (1.2) Interest expense          14.5   15.2   14.3   15.2      2.3      2.9                          ------ ------ ------ ------ ----------------- (Loss) income before  income taxes             (1.6)  (2.2)  (0.6)   0.0        -        - Provision for income  taxes                     0.4   (0.2)   0.4    0.2        -        -                          ------ ------ ------ ------ ----------------- Net (loss) income         (2.0)% (2.0)% (1.0)% (0.2)%      -        -                          ====== ====== ====== ====== ================= 
Language:
English
Contact:
Universal Hospital Services, Inc., Edina
Andy Weaver, 952-893-3248