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Agiliti , Inc. Announces 2014 Third Quarter Results

Posted: November 6, 2014

MINNEAPOLIS

Agiliti , Inc. (“UHS”), a leading provider of health
care technology management and service solutions, today announced
financial results for the quarter ended September 30, 2014.

Total revenues were $106.5 million for the third quarter of 2014,
representing a $2.2 million or 2.1% increase from total revenues of
$104.3 million for the same period of 2013. Revenues for the first nine
months of 2014 totaled $329.2 million, representing a $7.6 million or
2.3% increase from $321.6 million for same period of 2013.

Adjusted EBITDA was $29.2 million for the third quarter of 2014, flat to
the same period of 2013. Adjusted EBITDA for the first nine months of
2014 was $90.4 million, a $0.8 million or 0.9% increase from the prior
year same period.

Conference Call Dial-in Information

Agiliti will hold its quarterly conference call to discuss 2014 third
quarter results on Friday, November 7, 2014 at 9:00 a.m. Eastern Time
(8:00 a.m. Central Time).

To participate, call (855) 539-7565 and advise the operator you would
like to participate in the Agiliti Third Quarter 2014 Earnings Conference
Call. A recording of this call will be available from 1:00 p.m. Eastern
Time on November 7, 2014 through December 6, 2014 by calling (855)
859-2056; enter conference ID 10555848.

Agiliti 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 at www.agilitihealth.com
in the “Who We Are” section. From this section, select “Financials” then
“Presentations.”

Adjusted EBITDA Reconciliation

Adjusted EBITDA is defined by Agiliti as Earnings Before Interest, Taxes,
Depreciation and Amortization (“EBITDA”) before management and board
fees, stock option expense, reorganization costs, ASC 805 impact, loss
on extinguishment of debt, transaction and related costs, and
non-recurring, unusual or infrequent expenses, which may not be
calculated consistently among other companies applying similar reporting
measures. EBITDA and Adjusted 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 are not representative of funds available for discretionary use due
to UHS’ financing obligations. 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 UHS’
debt covenant calculations. Adjusted EBITDA is included because UHS’
financial guidance and certain compensation plans are based upon this
measure. Management believes that Adjusted 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
consolidated net income (loss) to EBITDA and Adjusted EBITDA is included
below.

           
(In millions) 3rd Quarter September YTD LTM

2014

 

2013

2014

 

2013

2014

Net loss attributable to UHS $ (10.3 ) $ (9.2 ) $ (52.8 ) $ (32.4 ) $ (63.4 )
Interest expense 13.3 13.8 39.9 41.7 53.4
Provision (benefit) for income taxes 0.2 (1.3 ) (13.2 ) (0.4 ) (13.1 )
Depreciation and amortization 24.3 24.8 75.8 73.5 101.0
Intangible asset impairment charge             34.9           34.9  
EBITDA 27.5 28.1 84.6 82.4 112.8
Management, board & strategic fees 1.3 0.7 3.2 4.1 4.5
Loss on extinguishment of debt 1.9
Reorganization costs 0.1 1.8 0.2 1.8
Stock option expense   0.3       0.4     0.8       1.0     1.3  
Adjusted EBITDA $ 29.2     $ 29.2   $ 90.4     $ 89.6   $ 120.4  
 

About Agiliti , Inc.

Agiliti , Inc. is a leading nationwide provider of
health care technology management and service solutions to the health
care industry. Agiliti owns or manages over 700,000 units of medical
equipment for over 8,000 national, regional and local acute care
hospitals and alternate site providers in all 50 states. For more than
75 years, Agiliti has delivered management and service solutions that help
clients reduce costs, increase operating efficiencies, improve caregiver
satisfaction and support optimal patient outcomes.

Agiliti , Inc.
6625 West 78th Street,
Suite 300
Minneapolis, MN 55439
952-893-3200
www.agilitihealth.com

Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995:
Agiliti , 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 health care 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;
the effect of prolonged negative changes in domestic and global economic
conditions; 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, 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 10-K for the year ended
December 31, 2013, as well as our other filings with the Securities and
Exchange Commission.

Contact:

Agiliti , Inc.
James Pekarek, 952-607-3054
Executive Vice President and Chief Financial Officer