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Agiliti Reports 2016 First Quarter Results

Posted: May 9, 2016

MINNEAPOLIS

Agiliti , Inc. (“UHS”), today announced financial
results for the quarter ended March 31, 2016.

Total revenues for the three months ended March 31, 2016, were $122.1
million, representing a $8.6 million or 7.6 percent increase from total
revenues of $113.5 million for same period of 2015.

Adjusted EBITDA for the three months ended March 31, 2016, was $30.8
million, a $2.5 million or 7.5 percent decrease from adjusted EBITDA of
$33.3 million for the same period of 2015.

Conference Call Dial-in Information

Agiliti will hold a conference call to discuss 2016 first quarter results on
Tuesday, May 10, at 9 a.m. Eastern Time (8 a.m. Central Time).

To participate, call (855) 539-7565 and advise the operator you would
like to join the Agiliti 2016 First Quarter Earnings
Conference Call. A recording of this call will be available from 12 p.m.
Eastern Time on May 10, through 11:59 p.m. Eastern Time on June 9, and
can be accessed by calling (855) 859-2056 and using the conference ID
7373392.

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.
Select “Investors” 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) 1st Quarter LTM

2016

   

2015

2016

Net loss attributable to UHS $ (4.7 ) $ (7.1 ) $ (26.2 )
Interest expense 13.1 13.3 53.0
Provision (benefit) for income taxes 0.2 0.2 0.8
Depreciation and amortization   20.8         24.4     88.2  
EBITDA 29.4 30.8 115.8
 
Gain on Settlement (5.7 )
Management, board & strategic fees 0.6 2.1 4.3
Restructuring, acquisition and integration expenses 2.3
Stock expense   0.8         0.4     2.8  
Adjusted EBITDA $ 30.8       $ 33.3   $ 119.5  
 

About Agiliti , Inc.

Agiliti , Inc. is a leading nationwide provider of
health care technology management and service solutions. Agiliti owns or
manages more than 700,000 units of medical equipment for more than 7,000
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, 2015, 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