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 Second Quarter Earnings; Continued Solid Growth across All Business Segments

Posted: August 4, 2004

Dateline City:
BLOOMINGTON, Minn.

BLOOMINGTON, Minn.–(BUSINESS WIRE)–Aug. 4, 2004–Universal Hospital Services, Inc., (“UHS”) today announced financial results for the second quarter ended June 30, 2004.

Total revenues were $49.3 million for the second quarter of 2004, representing a 17.4% increase from total revenues for the same period of 2003. Gross profit increased by 14.7% to $21.2 million during the quarter. Through the first six months of 2004, revenues increased by 16.3% to $98.3 million, and gross profit increased by 11.9% to $43.4 million. Net loss for the quarter was $0.6 million, down $1.9 million from net income of $1.3 million last year.

“We are pleased with UHS’ second quarter results, which showed continued strong organic growth in our Services segment, solid results in our Medical Equipment Outsourcing segment, as well as the complete integration of the ACES, Advanced Therapeutics and Galaxy Medical acquisitions,” said President and CEO Gary Blackford. “Our pre-owned equipment sales are steadily increasing, we continue to have success in signing up new AMPP customers, and our re-entry into the Bariatrics market is also being very well received.”

“As predicted, we continue to see momentum building in our non-capital intensive Equipment Sales and Remarketing and Service businesses and foresee this trend continuing. In the second half of 2004, we will focus on aligning our sales and customer service roles to maximize the returns on our sales efforts, including the development of a National Accounts program,” said Blackford.

Earnings before interest, taxes, depreciation and amortization (EBITDA(a)) for the second quarter of 2004 were $16.8 million compared to $15.4 million for the prior year. For the first six months of 2004 EBITDA was $35.2 million versus $32.9 million for the prior year, a $2.3 million or a 7.1% increase.

We will conduct a conference call regarding the Second Quarter 2004 results on Thursday, August 5th at 10:00 AM CDT. To participate, you may call (877) 284-1151 and indicate you would like to join in the UHS Second Quarter Results Call with Gary Blackford as the leader. A taped replay of this call will be available from 11:30 AM CDT on August 5th until 12:00 PM CDT on August 12th. The “Encore Dial-in” number is: (800) 642-1687 or (706) 645-9291, confirmation #8618176.

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 may be obtained via the company’s Website by clicking in the “Financials” section and then on “Presentations” or by using this link /uhsweb/uhsweb.nsf/vwPageKeyLkup/Presentations?OpenDocument. (Due to the length of this URL, it may be necessary to copy and paste it into your Internet browser’s URL address field. You may also need to remove an extra space in the URL if one exists.)

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).

(a) EBITDA is 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 herein 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. 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 to operating cash flows is included on the attached Statements of Cash Flows.

About Universal Hospital Services, Inc.

Based in Bloomington, Minnesota, Universal Hospital Services, Inc. is the leading medical equipment lifecycle services company in the country, offering comprehensive solutions that maximize utilization, increase productivity and support optimal patient care resulting in capital and operational efficiencies. Universal Hospital Services currently operates through 13 regional service centers and more than 70 district offices, serving customers in all 50 states and the District of Columbia.

  Universal Hospital Services, Inc. 3800 American Boulevard West, Suite 1250 Bloomington, MN 55431-4442 952-893-3200 www.uhs.com 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Universal Hospital Services, Inc. (“UHS”) believes statements in this release 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; UHS’ relationships with certain key suppliers and any adverse developments concerning these suppliers; the absence of long-term commitments with customers; UHS’ ability to renew contracts with group purchasing organizations and integrated delivery networks; UHS’ ability to acquire adequate insurance to cover claims; the fluctuation in our quarterly operating results; 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; changes and trends in customer preferences, including increased purchasing of movable medical equipment; difficulties or delays in our continued expansion into certain businesses/geographic markets and developments of new businesses/geographic markets; additional credit risks in increasing business with home care providers and nursing homes; consolidations in the healthcare industry; unanticipated costs or difficulties or delays in implementing the components of our strategy and plan and possible adverse consequences relating to UHS’ ability to successfully integrate acquisitions; actions by competitors; and the availability of and ability to retain qualified personnel, especially sales representatives. 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                                                June 30,   December 31,                                                  2004         2003                                               ----------- ------------                                                     (unaudited) Current assets:    Accounts receivable, less allowance for    doubtful accounts of $1,850 and $1,750    at June 30, 2004 and December 31, 2003,    respectively                                  $38,759      $33,943   Inventories                                      4,751        3,441   Deferred income taxes                            2,060        2,205   Other current assets                             2,049        1,961                                               ----------- ------------    Total current assets                           47,619       41,550  Property and equipment, net:    Movable medical equipment, net                 123,697      122,931   Property and office equipment, net               7,780        6,784                                               ----------- ------------    Total property and equipment, net             131,477      129,715  Intangible assets                                 59,998       48,954                                               ----------- ------------     Total assets                                 $239,094     $220,219                                               =========== ============                 LIABILITIES AND SHAREHOLDERS' DEFICIENCY  Current liabilities:    Current portion of long-term debt                 $325         $284   Accounts payable                                10,871       13,775   Accrued compensation and pension                 6,970        7,699   Accrued interest                                 4,550        5,600   Other accrued expenses                           3,712        2,010   Book overdrafts                                    393        3,891                                               ----------- ------------    Total current liabilities                      26,821       33,259  Long-term debt, less current portion             295,230      270,798 Deferred compensation and pension                  3,504        3,860 Deferred income taxes                              2,060        2,205  Shareholders' deficiency:    Common stock, $0.01 par value; 500,000,000    shares authorized, 123,425,618 and     122,768,962 shares issued and     outstanding at June 30, 2004 and    December 31, 2003, respectively                 1,234        1,228   Additional paid-in capital                         693            -   Accumulated deficit                            (87,692)     (88,375)   Accumulated other comprehensive loss            (2,756)      (2,756)                                               ----------- ------------    Total shareholders' deficiency                (88,521)     (89,903)                                               ----------- ------------    Total liabilities and shareholders'     deficiency                                  $239,094     $220,219                                               =========== ============                       Universal Hospital Services, Inc.                          Statements of Income                         (dollars in thousands)                               Three Months Ended     Six Months Ended                                   June 30,             June 30,                            --------------------- ---------------------                               2004       2003       2004       2003                            ----------- --------- ----------- ---------                                 (unaudited)           (unaudited)   Medical equipment    outsourcing                $38,466   $34,603     $78,354   $70,567   Medical equipment sales,    remarketing and    disposables, and other       4,145     3,927       8,533     7,292   Technical and    professional services        6,678     3,454      11,400     6,681   Total revenues               49,289    41,984      98,287    84,540   Costs of medical    equipment outsourcing,    sales and service           28,043    23,461      54,894    45,775                            ----------- --------- ----------- ---------   Gross margin                 21,246    18,523      43,393    38,765   Selling, general and    administrative              14,303    12,031      27,395    23,507                            ----------- --------- ----------- ---------   Operating income              6,943     6,492      15,998    15,258   Interest expense              7,484     4,329      14,933     8,680                            ----------- --------- ----------- ---------   (Loss) income before    income taxes                  (541)    2,163       1,065     6,578   Provision for income    taxes                           91       853         339     2,631                            ----------- --------- ----------- ---------   Net (loss) income             $(632)   $1,310        $726    $3,947                            =========== ========= =========== ========= Additional information   EBITDA                      $16,775   $15,425     $35,191   $32,855   EBITDA as a percentage of    total revenues                34.0%     36.7%       35.8%     38.9%   Movable medical equipment    (approximate number of    units at end of period)                          149,000   143,000   Offices (at end of    period)                                               76        67   Number of hospital    outsourcing customers    (at end of period)                                 3,050     2,800   Number of total    outsourcing customers    (at end of period)                                 6,200     5,900   Movable medical equipment    depreciation expense        $9,012    $7,948     $17,650   $15,800                        Universal Hospital Services, Inc.                           Segmented Reporting                         (dollars in thousands)                               (unaudited)                             2nd QUARTER RESULTS  ----------------------------------------------------------------------             Outsourcing       Sales        Service      Consolidated           ------------------------------------------------------------             2004    2003   2004   2003   2004   2003    2004    2003           ------------------------------------------------------------  Revenue   $38,466 $34,603 $4,145 $3,927 $6,678 $3,454 $49,289 $41,984 Cost       20,427     N/A  2,944    N/A  4,672    N/A  28,043  23,461 Gross  Margin   $18,039     N/A $1,201    N/A $2,006    N/A $21,246 $18,523 Gross  Margin %    46.9%    N/A   29.0%   N/A   30.0%   N/A    43.1%   44.1% ----------------------------------------------------------------------                           YEAR TO DATE RESULTS  ----------------------------------------------------------------------            Outsourcing       Sales         Service      Consolidated          -------------------------------------------------------------            2004    2003   2004   2003    2004   2003    2004    2003          -------------------------------------------------------------  Revenue  $78,354 $70,567 $8,533 $7,292 $11,400 $6,681 $98,287 $84,540 Cost      40,711     N/A  6,296    N/A   7,887    N/A  54,894  45,775 Gross  Margin  $37,643     N/A $2,237    N/A  $3,513    N/A $43,393 $38,765 Gross  Margin %   48.0%    N/A   26.2%   N/A    30.8%   N/A    44.1%   45.9% ----------------------------------------------------------------------                                                        Percent Increase                      Percent of Total Revenues         (Decrease)                                                              Six Months                      Three Months  Six Months                  2004                         Ended         Ended     Qtr 2 2004   Over Six                        June 30,      June 30,   Over Qtr 2    Months                      2004   2003   2004   2003     2003        2003                     ------------- ------------- ----------------------  Medical equipment  outsourcing         78.0%  82.4%  79.7%  83.5%      11.2%       11.0% Medical equipment  sales, remarketing  and disposables,  and other            8.5    9.4    8.7    8.6        5.6        17.0 Technical and  professional  services            13.5    8.2   11.6    7.9       93.3        70.6                     ------ ------ ------ ------ Total revenues      100.0  100.0  100.0  100.0       17.4        16.3 Costs of medical  equipment  outsourcing, sales  and service         56.9   55.9   55.9   54.1       19.5        19.9                     ------ ------ ------ ------ Gross margin         43.1   44.1   44.1   45.9       14.7        11.9 Selling, general and  administrative      29.0   28.6   27.8   27.9       18.9        16.5                     ------ ------ ------ ------ Operating  income    14.1   15.5   16.3   18.0        7.0         4.9 Interest expense     15.2   10.3   15.2   10.2       72.9%       72.0                     ------ ------ ------ ------ (Loss) income before  income taxes        (1.1)   5.2    1.1    7.8         NM       (83.8) Provision for income  taxes                0.2    2.0    0.4    3.1         NM       (87.1)                     ------ ------ ------ ------ Net (loss) income   (1.3%)   3.2%   0.7%   4.7%        NM      (81.6%)                     ====== ====== ====== ======                       Universal Hospital Services, Inc.                        Statements of Cash Flows                         (dollars in thousands)                                                    Six Months Ended                                                        June 30,                                                 ----------------------                                                    2004        2003 Cash flows from operating activities:                (unaudited)  Net income                                           $726     $3,947  Adjustments to reconcile net income to net       cash provided by operating activities:       Depreciation                                  19,062     16,879       Amortization of intangibles                      131        718       Accretion of bond discount                         -        265       Provision for doubtful accounts                  618        386       Non-cash stock-based compensation expense          -        106       Gain (loss) on sales/disposal of equipment      (272)       165       Deferred income taxes                              -      2,496       Changes in operating assets and              liabilities, net of impact of               acquisition:              Accounts receivable                    (5,105)    (2,609)              Inventories and other operating               assets                                (1,402)      (875)              Accounts payable and accrued               expenses                               4,775       (783)                                                 ----------- ----------       Net cash provided by operating activities     18,533     20,695                                                 ----------- ----------  Cash flows from investing activities:  Movable medical equipment purchases               (27,130)   (18,105)  Property and office equipment purchases            (2,405)    (1,101)  Proceeds from disposition of movable medical   equipment                                          1,714      1,097  Acquisitions                                      (11,391)         -  Other                                                (908)    (1,501)                                                 ----------- ----------       Net cash used in investing activities        (40,120)   (19,610)                                                 ----------- ----------  Cash flows from financing activities:  Proceeds under loan agreements                     61,589     33,550  Payments under loan agreements                    (37,161)   (31,987)  Repurchase of common stock                            (43)         -  Payment of deferred financing cost                      -         (5)  Proceeds from issuance of common stock, net of   offering costs                                       700         30  Change in book overdraft                           (3,498)    (2,673)                                                 ----------- ----------       Net cash provided by (used in) financing        activities                                   21,587     (1,085)                                                 ----------- ----------  Net change in cash and cash equivalents               $---       $---                                                 =========== ==========  Supplemental cash flow information:       Interest paid                                $15,142     $8,523                                                 =========== ==========       Income taxes paid                                $29       $213                                                 =========== ==========       Movable medical equipment purchases in        accounts payable                             $3,231     $4,821                                                 =========== ==========       Movable medical equipment additions          $19,858    $17,190                                                 =========== ==========  Additional information        Net cash provided by operating activities    $18,533    $20,695       Changes in operating assets and        liabilities                                   1,732      4,267       Other non-cash expenses                         (346)      (922)       Current income taxes                             339        135       Interest expense                              14,933      8,680                                                 ----------- ----------        EBITDA                                       $35,191    $32,855                                                 =========== ========== 
Language:
English
Contact:
Universal Hospital Services, Inc., Bloomington
Bethany A. Oliver, 952-893-3288