Agiliti Health (UHOS) 8-K Universal Hospital Services, Inc. Announces 2005 Fourth Quarter and Full Year Results

		Corporate Office 7700 France Avenue South, Suite 275 Edina, MN 55435 Phone: 952.893.3200 Fax: 952.893.0704 www.uhs.com
CONTACT:	Rex Clevenger;
	Senior Vice President and Chief Financial Officer
	Universal Hospital Services, Inc.
	(952) 893-3254

UNIVERSAL HOSPITAL SERVICES, INC. ANNOUNCES 2005 FOURTH QUARTER AND FULL YEAR RESULTS

Edina, Minn.--(BUSINESS WIRE)— March 27, 2006 - Universal Hospital Services, Inc., a leader in medical equipment lifecycle services, today announced financial results for the quarter and twelve months ended December 31, 2005.

Total revenues were $53.9 million for the fourth quarter of 2005, representing a $2.2 million or 4% increase from total revenues of $51.7 million for the same period of 2004. For the year, revenues increased by 8% to $215.9 million.

Net income for the quarter was $28,000, compared to a net loss of $3.3 million for the same quarter last year. For the year, the company reported a net loss of $1.6 million versus a net loss of $3.6 million for the same period of 2004.

Fourth quarter EBITDA before management/board fees and SOX compliance costs was $20.7 million, representing a $3.7 million or 22% increase from $17.0 million for the same period of 2004. EBITDA before management/board fees and SOX compliance costs for the year increased $7.0 million, or 10% to $76.4 million from $69.4 million in 2004. The 2005 quarterly and yearly results included a $1.2 million increase related to capitalizing our truck and box van fleet.

“Our fourth quarter results were very positive and extended our trend of outperforming the market fundamentals, which saw continued medical equipment recalls and weak hospital census," said Gary Blackford, President and CEO. “We remain on track to build the premier Equipment Lifecycle Services company in the industry.”

UHS will hold its quarterly conference call to discuss 2005 fourth quarter results on Tuesday, March 28, 2006, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time).

To participate, call (888) 882-0115 and advise the operator you would like to participate in the UHS Fourth Quarter Call with Gary Blackford. A taped replay of this call will be available from 1:00 p.m. Eastern Time on March 28 through 1:00 a.m. Eastern Time on April 4 by calling (800) 633-8284; enter reservation #21286514.

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.

  Corporate Office 7700 France Avenue South, Suite 275 Edina, MN 55435 Phone: 952.893.3200 Fax: 952.893.0704 www.uhs.com  

About Universal Hospital Services, Inc.

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 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; and additional credit risks in increasing business with home care providers and nursing homes, impacts of equipment product recalls or obsolescence; increases in vendor costs that cannot be passed through to our customers; and other Risk Factors as detailed in our annual report on Form 10K for the year ended December 31, 2004, and the quarterly report on Form 10Q for the quarter ended September 30, 2005, filed with the Securities and Exchange Commission.

UHS 4th Quarter 2005

27-Mar-06

Universal Hospital Services, Inc.
Statements of Income
(dollars in thousands)
(unaudited)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2005			2004			2005			2004
	(unaudited)						(unaudited)
Medical equipment outsourcing	$	42,044		$	39,553		$	167,687		$	156,490
Technical and professional services	7,254			7,356			29,654			25,491
Medical equipment sales & remarketing	4,573			4,797			18,563			17,619
Total revenues	53,871			51,706			215,904			199,600
Cost of Sales
Cost of medical equipment outsourcing	12,621			12,425			52,499			47,178
Cost of technical and professional services	5,053			4,644			21,878			17,295
Cost of medical equipment sales & remarketing	3,589			3,523			14,706			13,307
Movable medical equipment depreciation	9,914			9,094			37,966			36,003
Total costs of revenue	31,177			29,686			127,049			113,783
Gross margin		22,694			22,020			88,855			85,817
Selling, general and administrative		14,469			16,361			58,455			57,713
Operating income		8,225			5,659			30,400			28,104
Interest expense		7,985			8,026			31,127			30,508
Income (loss) before income taxes		240			(2,367	)		(727	)		(2,404	)
Provision for income taxes		212			963			842			1,188
Net income (loss)	$	28		$	(3,330	)	$	(1,569	)	$	(3,592	)
Additional information
EBITDA	$	20,484		$	16,622		$	74,984		$	68,459
EBITDA as a percentage of total revenues		38.0	%		32.1	%		34.7	%		34.3	%
Movable medical equipment (approximate number of units at end of period)		161,000			150,000			161,000			150,000
Offices (at end of period)		75			75			75			75
Number of total outsourcing customers (at end of period)		6,300			6,250			6,300			6,250
Movable medical equipment depreciation expense		9,914			9,094			37,966			36,003
Non-movable medical equipment depreciation and amortization	$	2,779		$	2,344		$	8,361		$	6,094

UHS 4th Quarter 2005

27-Mar-06

UNIVERSAL HOSPITAL SERVICES, INC.
BALANCE SHEETS
(dollars in thousands except share and per share information)
(unaudited)
ASSETS
	December 31,			December 31,
	2005			2004
	(unaudited)
Current assets:
Accounts receivable, less allowance for doubtful accounts of $1,350
at December 31, 2005 and $1,500 at December 31, 2004, respectively		41,865			40,644
Inventories		5,117			5,229
Deferred income taxes		4,112			2,449
Other current assets		2,374			3,458
Total current assets		53,468			51,780
Property and equipment, net:
Movable medical equipment, net		126,775			125,987
Property and office equipment, net		12,695			10,042
Total property and equipment, net		139,470			136,029
Intangible assets:
Goodwill		37,062			37,062
Other, primarily deferred financing costs, net		9,434			10,471
Other intangibles, net		9,751			11,065
Total assets	$	249,185		$	246,407
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current liabilities:
Current portion of long-term debt	$	1,084		$	328
Accounts payable		14,393			13,406
Accrued compensation		8,895			9,276
Accrued interest		4,481			4,615
Other accrued expenses		3,840			2,594
Book overdrafts		2,480			4,691
Total current liabilities		35,173			34,910
Long-term debt, less current portion		299,396			296,974
Pension liability		5,249			3,644
Deferred income taxes		6,166			3,937
Shareholders' deficiency:
Common stock, $0.01 par value; 500,000,000 shares authorized,
123,438,105.21 and 123,430,612.96 shares issued and outstanding at
December 31, 2005 and December 31, 2004, respectively		1,234			1,234
Additional paid-in capital		820			760
Accumulated deficit		(93,579	)		(92,010	)
Deferred compensation		(94	)		(62	)
Accumulated other comprehensive loss		(5,180	)		(2,980	)
Total shareholders' deficiency		(96,799	)		(93,058	)
Total liabilities and shareholders' deficiency	$	249,185		$	246,407

UHS 4th Quarter 2005

27-Mar-06

Universal Hospital Services, Inc.
Statements of Cash Flows
(dollars in thousands)
(unaudited)
	Twelve Months Ended December 31,
	2005			2004
Cash flows from operating activities:	(unaudited)
Net loss	$	(1,569	)	$	(3,592	)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation		42,804			39,217
Amortization of intangibles and deferred financing costs		3,523			2,880
Provision for doubtful accounts		927			984
Provision for inventory obsolescence		677			509
Non-cash stock-based compensation expense		20			-
Gain on sales/disposal of equipment		(659	)		(892	)
Deferred income taxes		567			1,103
Changes in operating assets and liabilities, net of impact of
acquisitions:
Accounts receivable		(1,999	)		(5,416	)
Inventories and other operating assets		520			(2,862	)
Accounts payable and accrued expenses		(848	)		6,035
Net cash provided by operating activities		43,963			37,966
Cash flows from investing activities:
Movable medical equipment purchases		(38,096	)		(47,118	)
Property and office equipment purchases		(4,022	)		(6,102	)
Proceeds from disposition of movable medical equipment		2,602			3,174
Acquisitions		(1,115	)		(15,104	)
Net cash used in investing activities		(40,631	)		(65,150	)
Cash flows from financing activities:
Proceeds under revolving credit facility agreements		98,557			113,041
Payments under revolving credit facility agreements		(97,741	)		(86,866	)
Payments under capital lease obligations		(1,089	)		-
Payment of deferred financing cost		(856	)		(453	)
Proceeds from issuance of common stock, net of issuance costs		8			705
Repurchase of common stock		-			(44	)
Change in book overdraft		(2,211	)		801
Net cash (used in) provided by financing activities		(3,332	)		27,184
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	$	29,355		$	29,812
Movable medical equipment purchases in accounts payable	$	5,788		$	3,808
Income taxes paid (received)	$	85		$	(98	)
Additional information
Net cash provided by operating activities	$	43,963		$	37,966
Changes in operating assets and liabilities		2,326			2,245
Other non-cash expenses		(3,274	)		(3,448	)
Income tax expense		842			1,188
Interest expense		31,127			30,508
EBITDA	$	74,984		$	68,459

UHS 4th Quarter 2005

27-Mar-06

	Percent of Total Revenues												Percent Increase (Decrease)
																Twelve Months 2005
	Three Months Ended December 31,						Twelve Months Ended December 31,						Qtr 4 2005			Over Twelve
	2005			2004			2005			2004			Over Qtr 4 2004			Months 2004
Medical equipment outsourcing		78.0	%		76.5	%		77.7	%		78.4	%		6.3	%		7.2	%
Technical and professional services		13.5			14.2			13.7			12.8			(1.4	)		16.3
Medical equipemnt sales & remarketing		8.5			9.3			8.6			8.8			(4.7	)		5.4
Total revenues		100.0			100.0			100.0			100.0			4.2			8.2
Cost of Sales
Cost of medical equipment outsourcing		23.4			24.0			24.3			23.6			1.6			11.3
Cost of technical and professional services		9.4			9.0			10.1			8.7			8.8			26.5
Cost of medical equipment sales & remarketing		6.7			6.8			6.8			6.7			1.9			10.5
Movable medical equipment depreciation		18.4			17.6			17.6			18.0			9.0			5.5
Total costs of medical equipment outsourcing, service and sales		57.9			57.4			58.8			57.0			5.0			11.7
Gross margin		42.1			42.6			41.2			43.0			3.1			3.5
Selling, general and administrative		26.9			31.7			27.1			28.9			(11.6	)		1.3
Operating income		15.2			10.9			14.1			14.1			45.3			8.2
Interest expense		14.8			15.5			14.4			15.3			(0.5	)		2.0
Income (loss) before income taxes		0.4			(4.6	)		(0.3	)		(1.2	)		-			-
Provision for income taxes		0.4			1.9			0.4			0.6			-			-
Net income (loss)		0.0			(6.5	)		(0.7	)		(1.8	)		-			-