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 Third Quarter Earnings; Continued Solid Growth across All Business Segments

Posted: November 2, 2004

Dateline City:
BLOOMINGTON, Minn.

BLOOMINGTON, Minn.–(BUSINESS WIRE)–Nov. 2, 2004–Universal Hospital Services, Inc., (“UHS”) today announced financial results for the third quarter ended September 30, 2004.

Total revenues were $49.6 million for the third quarter of 2004, representing an 18.6% increase from total revenues for the same period of 2003. Gross margin increased by 14.9% to $20.4 million during the quarter. Through the first nine months of 2004, revenues increased by 17.0% to $147.9 million, and gross margin increased by 12.9% to $63.8 million. Net loss for the quarter was $1.0 million, compared to net income of $1.0 million for the same quarter last year. The net loss for the first nine months of 2004 is $0.3 million, compared to net income of $5.0 million last year. The change from last year is primarily due to increased interest expense related to our recapitalization in the fourth quarter of 2003.

“Our third quarter results were in line with our growth expectations and depict consistent performance across the lifecycle of services including outsourcing, our AMPP and resident based programs, as well as strong momentum in our less capital intensive Equipment Sales and Remarketing and Service businesses” said President and CEO Gary Blackford. “In addition, our re-entry into the Bariatrics market earlier this year continues to produce solid results.”

Earnings before interest, taxes, depreciation and amortization (EBITDA(a)) for the third quarter of 2004 were $16.6 million compared to $15.1 million for the prior year, a $1.5 million or 10.3% increase. For the first nine months of 2004 EBITDA was $51.8 million versus $47.9 million for the prior year, a $3.9 million or an 8.1% increase.

We will conduct a conference call regarding the Third Quarter 2004 results on Wednesday, November 3rd at 10:00 AM CST. To participate, you may call (877) 284-1151 and indicate you would like to join in the UHS Third Quarter Results Call with Gary Blackford as the leader. A taped replay of this call will be available from 11:00 AM CST on November 3rd until 11:00 PM CST on November 10th. The “Encore Dial-in” number is: (800) 642-1687 or (706) 645-9291, confirmation #1886092.

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 its length, this URL may need to be copied/pasted into your Internet browser’s address field. Remove the extra space 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. UHS offers comprehensive solutions that maximize utilization, increase productivity and support optimal patient care resulting in capital and operational efficiencies. UHS 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 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                                             September 30, December 31,                                                 2004          2003                                             ------------- ------------                                                     (unaudited) Current assets:    Accounts receivable, less allowance for    doubtful accounts of $1,950 and $1,750    at September 30, 2004 and December 31,    2003, respectively                            $39,065      $33,943   Inventories                                      4,790        3,441   Deferred income taxes                            2,060        2,205   Other current assets                             1,721        1,961                                             ------------- ------------     Total current assets                          47,636       41,550  Property and equipment, net:    Movable medical equipment, net                 123,111      122,931   Property and office equipment, net               7,989        6,784                                             ------------- ------------     Total property and equipment, net            131,100      129,715  Intangible assets:    Goodwill                                        44,006       36,348   Other, primarily deferred financing costs,    net                                            10,870       11,423   Other intangibles, net                           4,833        1,183                                             ------------- ------------     Total assets                                $238,445     $220,219                                             ============= ============                 LIABILITIES AND SHAREHOLDERS' DEFICIENCY  Current liabilities:    Current portion of long-term debt                 $324         $284   Accounts payable                                10,841       13,775   Accrued compensation and pension                 8,658        7,699   Accrued interest                                11,112        5,600   Other accrued expenses                           3,139        2,010   Book overdrafts                                    202        3,891                                             ------------- ------------     Total current liabilities                     34,276       33,259  Long-term debt, less current portion             288,139      270,798 Deferred compensation and pension                  3,474        3,860 Deferred income taxes                              2,060        2,205  Shareholders' deficiency:    Common stock, $0.01 par value; 500,000,000    shares authorized, 123,430,614 and     122,768,962 shares issued and     outstanding at September 30,    2004 and December 31, 2003,    respectively                                    1,234        1,228   Additional paid-in capital                         698            -   Accumulated deficit                            (88,680)     (88,375)   Accumulated other comprehensive loss            (2,756)      (2,756)                                             ------------- ------------     Total shareholders' deficiency               (89,504)     (89,903)                                             ------------- ------------     Total liabilities and shareholders'      deficiency                                 $238,445     $220,219                                             ============= ============                       Universal Hospital Services, Inc.                          Statements of Income                         (dollars in thousands)                               Three Months Ended    Nine Months Ended                                September 30,        September 30,                             -------------------- ---------------------                                2004       2003      2004       2003                             ----------- -------- ----------- ---------                                  (unaudited)          (unaudited)  Medical equipment   outsourcing                  $38,582  $34,358    $116,936  $104,925  Medical equipment sales,   remarketing and   disposables, and other         4,291    3,825      12,824    11,117  Technical and professional   services                       6,735    3,662      18,135    10,343                             ----------- -------- ----------- ---------  Total revenues                 49,608   41,845     147,895   126,385  Costs of medical equipment   outsourcing, sales and   service                       29,204   24,085      84,098    69,860                             ----------- -------- ----------- ---------  Gross margin                   20,404   17,760      63,797    56,525  Selling, general and   administrative                13,956   11,671      41,351    35,178                             ----------- -------- ----------- ---------  Operating income                6,448    6,089      22,446    21,347  Interest expense                7,550    4,354      22,483    13,034                             ----------- -------- ----------- ---------  (Loss) income before income   taxes                         (1,102)   1,735         (37)    8,313  (Benefit) provision for   income taxes                    (114)     705         225     3,336                             ----------- -------- ----------- ---------  Net (loss) income               $(988)  $1,030       $(262)   $4,977                             =========== ======== =========== ========= Additional information  EBITDA                        $16,646  $15,088     $51,837   $47,943  EBITDA as a percentage of   total revenues                  33.6%    36.1%       35.1%     37.9%  Movable medical equipment   (approximate number of   units at end of period)                           151,000   143,000  Offices (at end of period)                              76        68  Number of hospital   outsourcing customers (at   end of period)                                      3,100     2,850  Number of total outsourcing   customers (at end of   period)                                             6,250     5,925  Movable medical equipment   depreciation expense          $9,259   $8,121     $26,909   $23,921                        Universal Hospital Services, Inc.                           Segmented Reporting                         (dollars in thousands)                               (unaudited)                            3rd QUARTER RESULTS  ----------------------------------------------------------------------                                   Outsourcing            Sales                               ----------------------------------------                                  2004      2003      2004      2003                               ----------------------------------------  Revenue                         $38,582   $34,358    $4,291    $3,825 Cost                             20,951       N/A     3,488       N/A                               ----------          ---------- Gross Margin                    $17,631       N/A      $803       N/A Gross Margin %                     45.7%      N/A      18.7%      N/A ----------------------------------------------------------------------  ----------------------------------------------------------------------                                     Service           Consolidated                               ----------------------------------------                                  2004      2003      2004      2003                               ----------------------------------------  Revenue                          $6,735    $3,662   $49,608   $41,845 Cost                              4,764       N/A    29,204    24,085                               ----------          -------------------- Gross Margin                     $1,971       N/A   $20,404   $17,760 Gross Margin %                     29.3%      N/A      41.1%     42.4% ----------------------------------------------------------------------                             YEAR TO DATE RESULTS  ----------------------------------------------------------------------                                   Outsourcing            Sales                               ----------------------------------------                                  2004      2003      2004      2003                               ----------------------------------------  Revenue                        $116,936  $104,925   $12,824   $11,117 Cost                             61,662       N/A     9,784       N/A                               ----------          ---------- Gross Margin                    $55,274       N/A    $3,040       N/A Gross Margin %                     47.3%      N/A      23.7%      N/A ----------------------------------------------------------------------  ----------------------------------------------------------------------                                     Service           Consolidated                               ----------------------------------------                                  2004      2003      2004      2003                               ----------------------------------------  Revenue                         $18,135   $10,343  $147,895  $126,385 Cost                             12,652       N/A    84,098    69,860                               ----------          -------------------- Gross Margin                     $5,483       N/A   $63,797   $56,525 Gross Margin %                     30.2%      N/A      43.1%     44.7% ----------------------------------------------------------------------                                                 Percent of Total Revenues                                            Three Months   Nine Months                                               Ended         Ended                                           September 30,  September 30,                                           2004    2003   2004    2003                                          -------------- --------------  Medical equipment outsourcing              77.8%  82.1%  79.1%   83.0% Medical equipment sales, remarketing and  disposables, and other                     8.6    9.1    8.6     8.8 Technical and professional services        13.6    8.8   12.3     8.2                                          ------- ------ ------ ------- Total revenues                            100.0  100.0  100.0   100.0 Costs of medical equipment outsourcing,  sales and service                         58.9   57.6   56.9    55.3                                          ------- ------ ------ ------- Gross margin                               41.1   42.4   43.1    44.7 Selling, general and administrative        28.1   27.8   27.9    27.8                                          ------- ------ ------ ------- Operating  income                          13.0   14.6   15.2    16.9 Interest expense                           15.2   10.5   15.2    10.3                                          ------- ------ ------ ------- (Loss) income before income taxes          (2.2)   4.1      -     6.6 (Benefit) provision for income taxes       (0.2)   1.6    0.2     2.7                                          ------- ------ ------ ------- Net (loss) income                         (2.0%)   2.5% (0.2%)    3.9%                                          ======= ====== ====== =======                                            Percent Increase (Decrease)                                         Qtr 3 2004     Nine Months 2004                                        Over Qtr 3     Over Nine Months                                            2003             2003                                       --------------------------------  Medical equipment outsourcing                 12.3%              11.4% Medical equipment sales, remarketing  and disposables, and other                   12.2               15.3 Technical and professional services           83.9               75.3 Total revenues                                18.6               17.0 Costs of medical equipment  outsourcing, sales and service               21.2               20.4 Gross margin                                  14.9               12.9 Selling, general and administrative           19.6               17.5 Operating  income                              5.9                5.1 Interest expense                              73.4%              72.5 (Loss) income before income taxes               NM                 NM (Benefit) provision for income taxes            NM                 NM Net (loss) income                               NM                 NM                       Universal Hospital Services, Inc.                        Statements of Cash Flows                         (dollars in thousands)                                                     Nine Months Ended                                                       September 30,                                                   --------------------                                                      2004      2003  Cash flows from operating activities:                 (unaudited)   Net (loss) income                                   $(262)   $4,977   Adjustments to reconcile net (loss) income to    net cash provided by operating activities:        Depreciation                                  29,089    25,558        Amortization of intangibles                      302     1,038        Accretion of bond discount                         -       397        Provision for doubtful accounts                1,051       528        Non-cash stock-based compensation expense          -       160        (Gain) loss on sales/disposal of equipment      (470)      412        Deferred income taxes                              -     3,141        Changes in operating assets and         liabilities, net of impact of         acquisition:               Accounts receivable                    (3,125)   (1,697)               Inventories and other operating                assets                                  (199)     (425)               Accounts payable and accrued                expenses                              10,748    (4,873)                                                   ---------- ---------        Net cash provided by operating activities     37,134    29,216                                                   ---------- ---------  Cash flows from investing activities:   Movable medical equipment purchases               (34,271)  (26,710)   Property and office equipment purchases            (3,008)   (2,025)   Proceeds from disposition of movable medical    equipment                                          2,372     1,465   Acquisitions                                      (15,455)        -   Other                                              (1,081)   (1,905)                                                   ---------- ---------        Net cash used in investing activities        (51,443)  (29,175)                                                   ---------- ---------  Cash flows from financing activities:   Proceeds under loan agreements                     75,714    50,950   Payments under loan agreements                    (58,378)  (49,244)   Repurchase of common stock                            (43)        -   Payment of deferred financing cost                      -        (5)   Proceeds from issuance of common stock, net of    offering costs                                       705        42   Change in book overdraft                           (3,689)   (1,784)                                                   ---------- ---------        Net cash provided by (used in) financing         activities                                   14,309       (41)                                                   ---------- ---------  Net change in cash and cash equivalents                $---      $---                                                   ========== =========  Supplemental cash flow information:        Interest paid                                $15,710   $16,319                                                   ========== =========        Income taxes paid                                $61      $192                                                   ========== =========        Movable medical equipment purchases in         accounts payable                             $4,187    $3,270                                                   ========== =========        Movable medical equipment additions          $28,990   $24,303                                                   ========== =========  Additional information         Net cash provided by operating activities    $37,134   $29,216        Changes in operating assets and liabilities   (7,363)    6,995        Other non-cash expenses                         (581)   (1,497)        Current income taxes                             164       195        Interest expense                              22,483    13,034                                                   ---------- ---------         EBITDA                                       $51,837   $47,943                                                   ========== ========= 
Language:
English
Contact:
Universal Hospital Services, Inc., Bloomington
Bethany A. Oliver, 952-893-3288