Universal Hospital Services, Inc. Announces First Quarter Earnings

Apr 26, 2001, 01:00 ET from Universal Hospital Services, Inc.

    BLOOMINGTON, Minn., April 26 /PRNewswire/ -- Universal Hospital Services,
 Inc., ("UHS") today announced financial results for the first quarter ended
 March 31, 2001.
     Rental revenues grew 17.3% in the first quarter of 2001 from the same
 period in 2000 (from $23.7 million to $27.8 million).  Total revenues for the
 first three months of 2001 increased 14.8% over the same period in 2000 (from
 $26.9 million to $30.9 million).
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 rose to $13.1 million or 42.4% of total revenue for the first quarter of 2001
 versus $11.1 million or 41.2% for the same period last year, representing an
 18.0% increase.
     David E. Dovenberg, President and CEO of UHS, commenting on the quarter
 said:  "We are pleased to report another quarter of record high revenue and
 EBITDA levels.  The growth in our core medical equipment rental business
 remains strong and we continued to improve our margins.  We are also pleased
 with the continued decrease in our leverage ratio as measured by total debt to
 EBITDA, from 5.2 to 4.4 for March 2000 and March 2001, respectively."
     We will conduct a conference call regarding the First Quarter 2001 Results
 on Friday, April 27th at 10:00 AM CDT.  To participate, you may call
 800-245-9658 and indicate you would like to join in the UHS Quarter End call
 with David Dovenberg as the leader.  A taped replay of this call will be
 available from 1:00 PM CDT on April 27th until 5:00 PM CDT on May 4th.  The
 "Instant Replay" number is: 800-839-6713, confirmation # 4121399.
     Based in Bloomington, Minn., Universal Hospital Services, Inc. provides
 movable medical equipment rental and management programs to over
 5,200 hospitals and other healthcare providers through 61 full service
 district offices nationwide.
 
     Universal Hospital Services, Inc.
     3800 W. 80th Street, Suite 1250
     Bloomington, MN  55431-4442
     952-893-3200
     http://www.uhs.com
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:  We believe statements in this release looking forward in time
 involve risks and uncertainties.  The following factors, among others, could
 adversely effect our business, operations and financial condition causing our
 actual results to differ materially from those expressed in any
 forward-looking statements:  the Company's substantial outstanding debt and
 high degree of leverage and the continued availability, terms and deployment
 of capital, including the Company's ability to service or refinance debt;
 restrictions imposed by the terms of the Company's debt; adverse regulatory
 developments affecting, among other things, the ability of our customers to
 obtain reimbursement of payments made to UHS; changes and trends in customer
 preferences, including increased purchasing of movable medical equipment;
 difficulties or delays in our continued expansion into certain markets and
 developments of new markets; unanticipated costs or difficulties or delays in
 implementing the components of our strategy and plan and possible adverse
 consequences relating to our ability to successfully integrate recent
 acquisitions; effect of and changes in economic conditions, including
 inflation and monetary conditions; actions by competitors and; availability of
 and ability to retain qualified personnel.  These and other risk factors are
 detailed in the Company's Securities and Exchange Commission filings.
 
 
                       UNIVERSAL HOSPITAL SERVICES, INC.
                                 BALANCE SHEETS
         (dollars in thousands except share and per share information)
 
                                     ASSETS
                                                  March 31,        December 31,
                                                     2001              2000
                                                 (unaudited)
     Current assets:
       Accounts receivable, less allowance
        for doubtful accounts of $1,850 at
        March 31, 2001 and $1,450 at
        December 31, 2000                           $28,227           $26,998
       Inventories                                    2,655             2,767
       Deferred income taxes                          1,593             1,593
       Other current assets                             932               839
         Total current assets                        33,407            32,197
 
     Property and equipment, net:
       Rental equipment, at cost less accumulated
        depreciation                                 98,518            99,149
       Property and office equipment, at cost
        less accumulated depreciation                 5,458             5,014
         Total property and equipment, net          103,976           104,163
 
     Intangible assets:
       Goodwill, less accumulated amortization       36,521            37,204
       Other, primarily deferred financing
        costs, less accumulated amortization          6,230             6,506
         Total assets                              $180,134          $180,070
 
                    LIABILITIES AND SHAREHOLDERS' DEFICIENCY
 
     Current liabilities:
       Current portion of long-term debt               $285              $255
       Accounts payable                               7,596            10,895
       Accrued compensation and pension               5,995             4,333
       Accrued interest                               1,851             5,442
       Other accrued expenses                         1,320             1,233
       Bank overdraft                                 1,643               461
         Total current liabilities                   18,690            22,619
 
     Long-term debt, less current portion           196,875           193,353
     Deferred compensation and pension                2,708             2,588
     Deferred income taxes                            1,593             1,593
 
     Series B, 13% Cumulative Convertible
      Preferred Stock, $0.01 par value;
      25,000 shares authorized, 6,246 shares
      issued and outstanding at March 31, 2001
      and December 31, 2000, net of unamortized
      discount, including accrued stock dividends     7,466             7,236
 
     Commitments and contingencies
 
     Shareholders' deficiency:
 
       Common Stock, $0.01 par value;
        50,000,000 shares authorized,
        16,087,214 and 16,089,214 shares issued
        and outstanding at March 31, 2001
        and December 31, 2000, respectively             161               161
       Additional paid-in capital                     2,329             2,335
       Accumulated deficit                          (49,688)          (49,815)
         Total shareholders' deficiency             (47,198)          (47,319)
         Total liabilities and shareholders'
          deficiency                               $180,134          $180,070
 
 
                       Universal Hospital Services, Inc.
                         Condensed Statements of Income
                             (dollars in thousands)
                                  (unaudited)
 
                                                   Three Months Ended March 31,
                                                       2001             2000
     Revenues:
       Equipment rentals                             $27,826          $23,732
       Sales of supplies and equipment, and other      3,043            3,158
         Total revenues                               30,869           26,890
 
     Costs of rentals and sales:
       Cost of equipment rentals                       7,736            6,393
       Rental equipment depreciation                   6,207            5,166
       Cost of supplies and equipment sales            1,859            2,305
         Total costs of rentals and sales             15,802           13,864
 
     Gross profit                                     15,067           13,026
 
     Selling, general and administrative               9,568            8,406
 
     Operating income                                  5,499            4,620
 
     Interest expense                                  5,155            5,062
 
     Income (loss) before income taxes                   344             (442)
 
     Provision (benefit) for income taxes                 14              (29)
 
     Net income (loss)                                  $330            ($413)
 
 
     Additional information
       EBITDA                                        $13,085          $11,088
       EBITDA as a percentage of total revenue          42.4%            41.2%
 
 
                                              Percent of Total       Percent
                                                  Revenues           Increase
                                                                    (Decrease)
                                             Three Months Ended     Qtr 1 2001
                                                  March 31,         Over Qtr 1
                                               2001        2000        2000
     Revenues:
       Equipment rentals                       90.1%       88.3%       17.3%
       Sales of supplies and equipment,
        and other                               9.9%       11.7%       (3.6%)
         Total revenues                       100.0%      100.0%       14.8%
 
     Costs of rentals and sales:
       Cost of equipment rentals               25.1%       23.8%       21.0%
       Rental equipment depreciation           20.1%       19.2%       20.1%
       Cost of supplies and equipment sales     6.0%        8.6%      (19.3%)
         Total costs of rentals and sales      51.2%       51.6%       14.0%
 
     Gross profit                              48.8%       48.4%       15.7%
 
     Selling, general and administrative       31.0%       31.2%       13.8%
 
     Operating income                          17.8%       17.2%       19.0%
 
     Interest expense                          16.7%       18.8%        1.9%
 
     Income (loss) before income taxes          1.1%       (1.6%)       N/M
 
     Provision (benefit) for income taxes       0.0%       (0.1%)       N/M
 
     Net income (loss)                          1.1%       (1.5%)       N/M
 
 
                       Universal Hospital Services, Inc.
                            Statements of Cash Flows
                             (dollars in thousands)
                                  (Unaudited)
 
                                                   Three Months Ended March 31,
                                                       2001              2000
     Cash flows from operating activities:
       Net income (loss)                                $330             ($413)
       Adjustments to reconcile net income (loss)
        to net cash provided by operating activities:
          Depreciation                                 6,635             5,422
          Amortization                                   951             1,046
          Accretion of bond discount                     132               132
          Provision for doubtful accounts                698               345
          Loss on sales of equipment                     189                83
          Deferred income taxes                                            (29)
          Changes in operating assets and
           liabilities:
            Accounts receivable                       (1,951)              (74)
            Inventories and other operating assets        20                13
            Accounts payable and accrued expenses     (3,452)           (1,394)
          Net cash provided by operating activities    3,552             5,131
 
     Cash flows from investing activities:
       Rental equipment purchases                     (7,572)           (9,497)
       Property and office equipment purchases          (580)             (301)
       Proceeds from disposition of rental equipment     185               113
       Other                                              31                12
         Net cash used in investing activities        (7,936)           (9,673)
 
     Cash flows from financing activities:
       Proceeds under loan agreements                 17,750            14,700
       Payments under loan agreements                (14,541)           (8,583)
       Repurchase of common stock                         (7)
       Proceeds from issuance of common stock,
        net of offering costs                                              144
       Change in book overdraft                        1,182            (1,719)
         Net cash provided by financing activities     4,384             4,542
 
     Net change in cash and cash equivalents             $--               $--
 
     Supplemental cash flow information:
         Interest paid                                $8,587            $8,358
         Rental equipment purchases in accounts
          payable                                     $1,432              $848
         Income taxes received                          $132               $94
         Rental equipment additions                   $6,029            $7,188
 
                      MAKE YOUR OPINION COUNT - Click Here
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SOURCE Universal Hospital Services, Inc.
    BLOOMINGTON, Minn., April 26 /PRNewswire/ -- Universal Hospital Services,
 Inc., ("UHS") today announced financial results for the first quarter ended
 March 31, 2001.
     Rental revenues grew 17.3% in the first quarter of 2001 from the same
 period in 2000 (from $23.7 million to $27.8 million).  Total revenues for the
 first three months of 2001 increased 14.8% over the same period in 2000 (from
 $26.9 million to $30.9 million).
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 rose to $13.1 million or 42.4% of total revenue for the first quarter of 2001
 versus $11.1 million or 41.2% for the same period last year, representing an
 18.0% increase.
     David E. Dovenberg, President and CEO of UHS, commenting on the quarter
 said:  "We are pleased to report another quarter of record high revenue and
 EBITDA levels.  The growth in our core medical equipment rental business
 remains strong and we continued to improve our margins.  We are also pleased
 with the continued decrease in our leverage ratio as measured by total debt to
 EBITDA, from 5.2 to 4.4 for March 2000 and March 2001, respectively."
     We will conduct a conference call regarding the First Quarter 2001 Results
 on Friday, April 27th at 10:00 AM CDT.  To participate, you may call
 800-245-9658 and indicate you would like to join in the UHS Quarter End call
 with David Dovenberg as the leader.  A taped replay of this call will be
 available from 1:00 PM CDT on April 27th until 5:00 PM CDT on May 4th.  The
 "Instant Replay" number is: 800-839-6713, confirmation # 4121399.
     Based in Bloomington, Minn., Universal Hospital Services, Inc. provides
 movable medical equipment rental and management programs to over
 5,200 hospitals and other healthcare providers through 61 full service
 district offices nationwide.
 
     Universal Hospital Services, Inc.
     3800 W. 80th Street, Suite 1250
     Bloomington, MN  55431-4442
     952-893-3200
     http://www.uhs.com
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:  We believe statements in this release looking forward in time
 involve risks and uncertainties.  The following factors, among others, could
 adversely effect our business, operations and financial condition causing our
 actual results to differ materially from those expressed in any
 forward-looking statements:  the Company's substantial outstanding debt and
 high degree of leverage and the continued availability, terms and deployment
 of capital, including the Company's ability to service or refinance debt;
 restrictions imposed by the terms of the Company's debt; adverse regulatory
 developments affecting, among other things, the ability of our customers to
 obtain reimbursement of payments made to UHS; changes and trends in customer
 preferences, including increased purchasing of movable medical equipment;
 difficulties or delays in our continued expansion into certain markets and
 developments of new markets; unanticipated costs or difficulties or delays in
 implementing the components of our strategy and plan and possible adverse
 consequences relating to our ability to successfully integrate recent
 acquisitions; effect of and changes in economic conditions, including
 inflation and monetary conditions; actions by competitors and; availability of
 and ability to retain qualified personnel.  These and other risk factors are
 detailed in the Company's Securities and Exchange Commission filings.
 
 
                       UNIVERSAL HOSPITAL SERVICES, INC.
                                 BALANCE SHEETS
         (dollars in thousands except share and per share information)
 
                                     ASSETS
                                                  March 31,        December 31,
                                                     2001              2000
                                                 (unaudited)
     Current assets:
       Accounts receivable, less allowance
        for doubtful accounts of $1,850 at
        March 31, 2001 and $1,450 at
        December 31, 2000                           $28,227           $26,998
       Inventories                                    2,655             2,767
       Deferred income taxes                          1,593             1,593
       Other current assets                             932               839
         Total current assets                        33,407            32,197
 
     Property and equipment, net:
       Rental equipment, at cost less accumulated
        depreciation                                 98,518            99,149
       Property and office equipment, at cost
        less accumulated depreciation                 5,458             5,014
         Total property and equipment, net          103,976           104,163
 
     Intangible assets:
       Goodwill, less accumulated amortization       36,521            37,204
       Other, primarily deferred financing
        costs, less accumulated amortization          6,230             6,506
         Total assets                              $180,134          $180,070
 
                    LIABILITIES AND SHAREHOLDERS' DEFICIENCY
 
     Current liabilities:
       Current portion of long-term debt               $285              $255
       Accounts payable                               7,596            10,895
       Accrued compensation and pension               5,995             4,333
       Accrued interest                               1,851             5,442
       Other accrued expenses                         1,320             1,233
       Bank overdraft                                 1,643               461
         Total current liabilities                   18,690            22,619
 
     Long-term debt, less current portion           196,875           193,353
     Deferred compensation and pension                2,708             2,588
     Deferred income taxes                            1,593             1,593
 
     Series B, 13% Cumulative Convertible
      Preferred Stock, $0.01 par value;
      25,000 shares authorized, 6,246 shares
      issued and outstanding at March 31, 2001
      and December 31, 2000, net of unamortized
      discount, including accrued stock dividends     7,466             7,236
 
     Commitments and contingencies
 
     Shareholders' deficiency:
 
       Common Stock, $0.01 par value;
        50,000,000 shares authorized,
        16,087,214 and 16,089,214 shares issued
        and outstanding at March 31, 2001
        and December 31, 2000, respectively             161               161
       Additional paid-in capital                     2,329             2,335
       Accumulated deficit                          (49,688)          (49,815)
         Total shareholders' deficiency             (47,198)          (47,319)
         Total liabilities and shareholders'
          deficiency                               $180,134          $180,070
 
 
                       Universal Hospital Services, Inc.
                         Condensed Statements of Income
                             (dollars in thousands)
                                  (unaudited)
 
                                                   Three Months Ended March 31,
                                                       2001             2000
     Revenues:
       Equipment rentals                             $27,826          $23,732
       Sales of supplies and equipment, and other      3,043            3,158
         Total revenues                               30,869           26,890
 
     Costs of rentals and sales:
       Cost of equipment rentals                       7,736            6,393
       Rental equipment depreciation                   6,207            5,166
       Cost of supplies and equipment sales            1,859            2,305
         Total costs of rentals and sales             15,802           13,864
 
     Gross profit                                     15,067           13,026
 
     Selling, general and administrative               9,568            8,406
 
     Operating income                                  5,499            4,620
 
     Interest expense                                  5,155            5,062
 
     Income (loss) before income taxes                   344             (442)
 
     Provision (benefit) for income taxes                 14              (29)
 
     Net income (loss)                                  $330            ($413)
 
 
     Additional information
       EBITDA                                        $13,085          $11,088
       EBITDA as a percentage of total revenue          42.4%            41.2%
 
 
                                              Percent of Total       Percent
                                                  Revenues           Increase
                                                                    (Decrease)
                                             Three Months Ended     Qtr 1 2001
                                                  March 31,         Over Qtr 1
                                               2001        2000        2000
     Revenues:
       Equipment rentals                       90.1%       88.3%       17.3%
       Sales of supplies and equipment,
        and other                               9.9%       11.7%       (3.6%)
         Total revenues                       100.0%      100.0%       14.8%
 
     Costs of rentals and sales:
       Cost of equipment rentals               25.1%       23.8%       21.0%
       Rental equipment depreciation           20.1%       19.2%       20.1%
       Cost of supplies and equipment sales     6.0%        8.6%      (19.3%)
         Total costs of rentals and sales      51.2%       51.6%       14.0%
 
     Gross profit                              48.8%       48.4%       15.7%
 
     Selling, general and administrative       31.0%       31.2%       13.8%
 
     Operating income                          17.8%       17.2%       19.0%
 
     Interest expense                          16.7%       18.8%        1.9%
 
     Income (loss) before income taxes          1.1%       (1.6%)       N/M
 
     Provision (benefit) for income taxes       0.0%       (0.1%)       N/M
 
     Net income (loss)                          1.1%       (1.5%)       N/M
 
 
                       Universal Hospital Services, Inc.
                            Statements of Cash Flows
                             (dollars in thousands)
                                  (Unaudited)
 
                                                   Three Months Ended March 31,
                                                       2001              2000
     Cash flows from operating activities:
       Net income (loss)                                $330             ($413)
       Adjustments to reconcile net income (loss)
        to net cash provided by operating activities:
          Depreciation                                 6,635             5,422
          Amortization                                   951             1,046
          Accretion of bond discount                     132               132
          Provision for doubtful accounts                698               345
          Loss on sales of equipment                     189                83
          Deferred income taxes                                            (29)
          Changes in operating assets and
           liabilities:
            Accounts receivable                       (1,951)              (74)
            Inventories and other operating assets        20                13
            Accounts payable and accrued expenses     (3,452)           (1,394)
          Net cash provided by operating activities    3,552             5,131
 
     Cash flows from investing activities:
       Rental equipment purchases                     (7,572)           (9,497)
       Property and office equipment purchases          (580)             (301)
       Proceeds from disposition of rental equipment     185               113
       Other                                              31                12
         Net cash used in investing activities        (7,936)           (9,673)
 
     Cash flows from financing activities:
       Proceeds under loan agreements                 17,750            14,700
       Payments under loan agreements                (14,541)           (8,583)
       Repurchase of common stock                         (7)
       Proceeds from issuance of common stock,
        net of offering costs                                              144
       Change in book overdraft                        1,182            (1,719)
         Net cash provided by financing activities     4,384             4,542
 
     Net change in cash and cash equivalents             $--               $--
 
     Supplemental cash flow information:
         Interest paid                                $8,587            $8,358
         Rental equipment purchases in accounts
          payable                                     $1,432              $848
         Income taxes received                          $132               $94
         Rental equipment additions                   $6,029            $7,188
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X82081857
 
 SOURCE  Universal Hospital Services, Inc.