Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2018

Consolidating Financial Statements

Schedule of Consolidating Balance Sheets

	March 31, 2018
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Assets
Current assets:
Accounts receivable, less allowance for doubtful accounts	$	83,433	$	12,611	$	—	$	96,044
Due from affiliates		29,561		—		(29,561)		—
Inventories		4,046		6,198		—		10,244
Other current assets		6,203		789		—		6,992
Total current assets		123,243		19,598		(29,561)		113,280
Property and equipment:
Medical equipment		567,284		65,619		—		632,903
Property and office equipment		94,547		12,800		—		107,347
Accumulated depreciation		(496,171)		(52,663)		—		(548,834)
Total property and equipment, net		165,660		25,756		—		191,416
Other long-term assets:
Goodwill		283,141		63,027		—		346,168
Investment in subsidiary		78,541		—		(78,541)		—
Other intangibles, net		135,738		14,159		—		149,897
Other		7,918		1,646		—		9,564
Total assets	$	794,241	$	124,186	$	(108,102)	$	810,325
Liabilities and (Deficit) Equity
Current liabilities:
Current portion of long-term debt	$	3,419	$	1,623	$	—	$	5,042
Book overdrafts		3,056		(1,273)		—		1,783
Due to affiliates		—		29,561		(29,561)		—
Accounts payable		24,744		6,672		—		31,416
Accrued compensation		11,990		2,077		—		14,067
Accrued interest		6,463		—		—		6,463
Other accrued expenses		16,111		2,090		—		18,201
Total current liabilities		65,783		40,750		(29,561)		76,972
Long-term debt, less current portion		715,518		3,521		—		719,039
Pension and other long-term liabilities		11,186		3		—		11,189
Deferred income taxes, net		34,249		1,180		—		35,429
Commitments and contingencies
(Deficit) Equity
Common stock		—		—		—		—
Additional paid-in capital		251,056		76,003		(76,018)		251,041
Accumulated deficit		(279,646)		2,523		—		(277,123)
Accumulated loss in subsidiary		2,523		—		(2,523)		—
Accumulated other comprehensive loss		(6,428)		—		—		(6,428)
Total Universal Hospital Services, Inc. and Subsidiaries  (deficit) equity		(32,495)		78,526		(78,541)		(32,510)
Noncontrolling interest		—		206		—		206
Total (deficit) equity		(32,495)		78,732		(78,541)		(32,304)
Total liabilities and (deficit) equity	$	794,241	$	124,186	$	(108,102)	$	810,325

	December 31, 2017
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Assets
Current assets:
Accounts receivable, less allowance for doubtful accounts	$	76,093	$	13,544	$	—	$	89,637
Due from affiliates		31,590		—		(31,590)		—
Inventories		3,800		5,960		—		9,760
Other current assets		6,127		709		—		6,836
Total current assets		117,610		20,213		(31,590)		106,233
Property and equipment:
Medical equipment		564,316		64,877		—		629,193
Property and office equipment		92,414		12,927		—		105,341
Accumulated depreciation		(485,960)		(50,560)		—		(536,520)
Total property and equipment, net		170,770		27,244		—		198,014
Other long-term assets:
Goodwill		283,141		63,027		—		346,168
Investment in subsidiary		76,606		—		(76,606)		—
Other intangibles, net		136,563		15,358		—		151,921
Other		2,411		698		—		3,109
Total assets	$	787,101	$	126,540	$	(108,196)	$	805,445
Liabilities and (Deficit) Equity
Current liabilities:
Current portion of long-term debt	$	3,451	$	1,592	$	—	$	5,043
Book overdrafts		5,345		22		—		5,367
Due to affiliates		—		31,590		(31,590)		—
Accounts payable		29,842		6,847		—		36,689
Accrued compensation		18,696		2,802		—		21,498
Accrued interest		18,671		—		—		18,671
Other accrued expenses		16,018		1,745		—		17,763
Total current liabilities		92,023		44,598		(31,590)		105,031
Long-term debt, less current portion		694,171		3,894		—		698,065
Pension and other long-term liabilities		11,384		1		—		11,385
Deferred income taxes, net		34,126		1,216		—		35,342
Commitments and contingencies
(Deficit) Equity
Common stock		—		—		—		—
Additional paid-in capital		250,033		76,003		(76,018)		250,018
Accumulated deficit		(288,586)		588		—		(287,998)
Accumulated loss in subsidiary		588		—		(588)		—
Accumulated other comprehensive loss		(6,638)		—		—		(6,638)
Total Universal Hospital Services, Inc. and Subsidiaries (deficit) equity		(44,603)		76,591		(76,606)		(44,618)
Noncontrolling interest		—		240		—		240
Total (deficit) equity		(44,603)		76,831		(76,606)		(44,378)
Total liabilities and (deficit) equity	$	787,101	$	126,540	$	(108,196)	$	805,445

Schedule of Consolidating Statements of Operations

	Three Months Ended March 31, 2018
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Revenues	$	117,197	$	25,158	$	—	$	142,355
Cost of revenues		74,195		16,667		—		90,862
Gross margin		43,002		8,491		—		51,493
Selling, general and administrative		26,720		6,321		—		33,041
Operating income		16,282		2,170		—		18,452
Equity in earnings of subsidiary		(1,119)		—		1,119		—
Interest expense		12,892		558		—		13,450
Income before income taxes and noncontrolling interest		4,509		1,612		(1,119)		5,002
(Benefit) provision for income taxes		(231)		493		—		262
Consolidated net income		4,740		1,119		(1,119)		4,740
Net income attributable to noncontrolling interest		—		86		—		86
Net income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	4,740	$	1,033	$	(1,119)	$	4,654

	Three Months Ended March 31, 2017
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Revenues	$	107,949	$	22,703	$	—	$	130,652
Cost of revenues		69,915		14,970		—		84,885
Gross margin		38,034		7,733		—		45,767
Selling, general and administrative		27,538		6,419		—		33,957
Operating income		10,496		1,314		—		11,810
Equity in earnings of subsidiary		(414)		—		414		—
Interest expense		12,933		545		—		13,478
(Loss) income before income taxes and noncontrolling interest		(2,023)		769		(414)		(1,668)
(Benefit) provision for income taxes		(133)		355		—		222
Consolidated net (loss) income		(1,890)		414		(414)		(1,890)
Net income attributable to noncontrolling interest		—		73		—		73
Net (loss) income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	(1,890)	$	341	$	(414)	$	(1,963)

Schedule of Consolidating Statements of Comprehensive Income (Loss)

	Three Months Ended March 31, 2018
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Consolidated net income	$	4,740	$	1,119	$	(1,119)	$	4,740
Other comprehensive income:
Gain on minimum pension liability, net of tax		210		—		—		210
Total other comprehensive income		210		—		—		210
Comprehensive income		4,950		1,119		(1,119)		4,950
Comprehensive income attributable to noncontrolling interest		—		86		—		86
Comprehensive income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	4,950	$	1,033	$	(1,119)	$	4,864

	Three Months Ended March 31, 2017
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Consolidated net (loss) income	$	(1,890)	$	414	$	(414)	$	(1,890)
Other comprehensive income:
Gain on minimum pension liability, net of tax		179		—		—		179
Total other comprehensive income		179		—		—		179
Comprehensive (loss) income		(1,711)		414		(414)		(1,711)
Comprehensive income attributable to noncontrolling interest		—		73		—		73
Comprehensive (loss) income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	(1,711)	$	341	$	(414)	$	(1,784)

Schedule of Consolidating Statements of Cash Flows

	Three Months Ended March 31, 2018
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Cash flows from operating activities:
Consolidated net income	$	4,740	$	1,119	$	(1,119)	$	4,740
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation		14,199		2,372		—		16,571
Amortization of intangibles, contract costs, deferred financing costs and bond premium		1,274		1,250		—		2,524
Equity in earnings of subsidiary		(1,119)		—		1,119		—
Provision for doubtful accounts		200		22		—		222
Provision for inventory obsolescence		26		96		—		122
Non-cash share-based compensation expense		622		124		—		746
Gain on sales and disposals of equipment		(336)		(43)		—		(379)
Deferred income taxes		123		(36)		—		87
Interest on note receivable		(9)		—		—		(9)
Changes in operating assets and liabilities:
Accounts receivable		(7,540)		911		—		(6,629)
Due from affiliates		2,153		—		(2,153)		—
Inventories		(272)		(334)		—		(606)
Other operating assets		(632)		(177)		—		(809)
Accounts payable		1,633		2,413		—		4,046
Other operating liabilities		(18,809)		(378)		—		(19,187)
Net cash (used in) provided by operating activities		(3,747)		7,339		(2,153)		1,439
Cash flows from investing activities:
Medical equipment purchases		(13,508)		(3,330)		—		(16,838)
Property and office equipment purchases		(2,054)		(50)		—		(2,104)
Proceeds from disposition of property and equipment		630		155		—		785
Net cash used in investing activities		(14,932)		(3,225)		—		(18,157)
Cash flows from financing activities:
Proceeds under senior secured credit facility		82,448		—		—		82,448
Payments under senior secured credit facility		(60,848)		—		—		(60,848)
Payments of principal under capital lease obligations		(909)		(546)		—		(1,455)
Distributions to noncontrolling interests		—		(120)		—		(120)
Proceeds from exercise of parent company stock options		277		—		—		277
Due to affiliates		—		(2,153)		2,153		—
Change in book overdrafts		(2,289)		(1,295)		—		(3,584)
Net cash provided by (used in) financing activities		18,679		(4,114)		2,153		16,718
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	$	—	$	—	$	—	$	—

	Three Months Ended March 31, 2017
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Cash flows from operating activities:
Consolidated net (loss) income	$	(1,890)	$	414	$	(414)	$	(1,890)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation		15,899		1,995		—		17,894
Amortization of intangibles, deferred financing costs and bond premium		1,867		1,240		—		3,107
Equity in earnings of subsidiary		(414)		—		414		—
Provision for doubtful accounts		228		(8)		—		220
Provision for inventory obsolescence		23		(1)		—		22
Non-cash share-based compensation expense		638		120		—		758
Gain on sales and disposals of equipment		(712)		(35)		—		(747)
Deferred income taxes		308		(202)		—		106
Interest on note receivable		(4)		—		—		(4)
Changes in operating assets and liabilities:
Accounts receivable		(1,164)		1,315		—		151
Due from affiliates		(2,279)		—		2,279		—
Inventories		(31)		503		—		472
Other operating assets		168		(291)		—		(123)
Accounts payable		(1,768)		(1,296)		—		(3,064)
Other operating liabilities		(21,065)		(1,141)		—		(22,206)
Net cash (used in) provided by operating activities		(10,196)		2,613		2,279		(5,304)
Cash flows from investing activities:
Medical equipment purchases		(13,704)		(3,772)		—		(17,476)
Property and office equipment purchases		(1,004)		(59)		—		(1,063)
Proceeds from disposition of property and equipment		1,340		62		—		1,402
Acquisition and refund of escrow		3,691		—		—		3,691
Net cash used in investing activities		(9,677)		(3,769)		—		(13,446)
Cash flows from financing activities:
Proceeds under senior secured credit facility		70,029		—		—		70,029
Payments under senior secured credit facility		(43,492)		—		—		(43,492)
Payments of principal under capital lease obligations		(1,258)		(409)		—		(1,667)
Distributions to noncontrolling interests		—		(77)		—		(77)
Proceeds from exercise of parent company stock options		22		—		—		22
Due to affiliates		—		2,279		(2,279)		—
Change in book overdrafts		(5,428)		(637)		—		(6,065)
Net cash provided by financing activities		19,873		1,156		(2,279)		18,750
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	$	—	$	—	$	—	$	—