Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2018

Consolidating Financial Statements

Schedule of Consolidating Balance Sheets

	June 30, 2018
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Assets
Current assets:
Cash	$	(755)	$	933	$	—	$	178
Accounts receivable, less allowance for doubtful accounts		81,424		12,980		—		94,404
Due from affiliates		27,138		—		(27,138)		—
Inventories		4,205		5,790		—		9,995
Other current assets		6,078		956		—		7,034
Total current assets		118,090		20,659		(27,138)		111,611
Property and equipment:
Medical equipment		589,813		67,503		—		657,316
Property and office equipment		95,671		12,888		—		108,559
Accumulated depreciation		(505,799)		(55,019)		—		(560,818)
Total property and equipment, net		179,685		25,372		—		205,057
Other long-term assets:
Goodwill		283,141		63,027		—		346,168
Investment in subsidiary		79,770		—		(79,770)		—
Other intangibles, net		134,985		12,960		—		147,945
Other		8,930		1,646		—		10,576
Total assets	$	804,601	$	123,664	$	(106,908)	$	821,357
Liabilities and (Deficit) Equity
Current liabilities:
Current portion of long-term debt	$	3,554	$	1,660	$	—	$	5,214
Due to affiliates		—		27,138		(27,138)		—
Accounts payable		21,185		6,243		—		27,428
Accrued compensation		21,439		3,692		—		25,131
Accrued interest		18,809		—		—		18,809
Other accrued expenses		17,327		894		—		18,221
Total current liabilities		82,314		39,627		(27,138)		94,803
Long-term debt, less current portion		684,507		3,157		—		687,664
Pension and other long-term liabilities		10,942		6		—		10,948
Deferred income taxes, net		34,580		926		—		35,506
Commitments and contingencies
(Deficit) Equity
Common stock		—		—		—		—
Additional paid-in capital		250,676		76,003		(76,018)		250,661
Accumulated deficit		(255,956)		3,752		—		(252,204)
Accumulated loss in subsidiary		3,752		—		(3,752)		—
Accumulated other comprehensive loss		(6,214)		—		—		(6,214)
Total Universal Hospital Services, Inc. and Subsidiaries  (deficit) equity		(7,742)		79,755		(79,770)		(7,757)
Noncontrolling interest		—		193		—		193
Total (deficit) equity		(7,742)		79,948		(79,770)		(7,564)
Total liabilities and (deficit) equity	$	804,601	$	123,664	$	(106,908)	$	821,357

	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 June 30, 2018
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Revenues	$	113,789	$	26,918	$	—	$	140,707
Cost of revenues		72,901		17,633		—		90,534
Gross margin		40,888		9,285		—		50,173
Selling, general and administrative		27,857		6,885		—		34,742
Gain on legal settlement		(23,474)		—		—		(23,474)
Operating income		36,505		2,400		—		38,905
Equity in earnings of subsidiary		(1,310)		—		1,310		—
Interest expense		13,028		509		—		13,537
Income before income taxes and noncontrolling interest		24,787		1,891		(1,310)		25,368
(Benefit) provision for income taxes		(212)		581		—		369
Consolidated net income		24,999		1,310		(1,310)		24,999
Net income attributable to noncontrolling interest		—		81		—		81
Net income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	24,999	$	1,229	$	(1,310)	$	24,918

	Three Months Ended June 30, 2017
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Revenues	$	104,786	$	23,424	$	—	$	128,210
Cost of revenues		71,273		14,922		—		86,195
Gross margin		33,513		8,502		—		42,015
Selling, general and administrative		24,410		6,208		—		30,618
Operating income		9,103		2,294		—		11,397
Equity in earnings of subsidiary		(929)		—		929		—
Interest expense		12,781		634		—		13,415
(Loss) income before income taxes and noncontrolling interest		(2,749)		1,660		(929)		(2,018)
(Benefit) provision for income taxes		(456)		731		—		275
Consolidated net (loss) income		(2,293)		929		(929)		(2,293)
Net income attributable to noncontrolling interest		—		98		—		98
Net (loss) income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	(2,293)	$	831	$	(929)	$	(2,391)

	Six Months Ended June 30, 2018
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Revenues	$	230,986	$	52,076	$	—	$	283,062
Cost of revenues		147,096		34,300				181,396
Gross margin		83,890		17,776		—		101,666
Selling, general and administrative		54,576		13,206		—		67,782
Gain on legal settlement		(23,474)		—		—		(23,474)
Operating income		52,788		4,570		—		57,358
Equity in earnings of subsidiary		(2,428)		—		2,428		—
Interest expense		25,920		1,068		—		26,988
Income before income taxes and noncontrolling interest		29,296		3,502		(2,428)		30,370
(Benefit) provision for income taxes		(443)		1,074		—		631
Consolidated net income		29,739		2,428		(2,428)		29,739
Net income attributable to noncontrolling interest		—		166		—		166
Net income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	29,739	$	2,262	$	(2,428)	$	29,573

	Six Months Ended June 30, 2017
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Revenues	$	212,735	$	46,128	$		$	258,863
Cost of revenues		141,188		29,892		—		171,080
Gross margin		71,547		16,236		—		87,783
Selling, general and administrative		51,947		12,628		—		64,575
Operating income		19,600		3,608		—		23,208
Equity in earnings of subsidiary		(1,342)		—		1,342		—
Interest expense		25,714		1,180		—		26,894
(Loss) income before income taxes and noncontrolling interest		(4,772)		2,428		(1,342)		(3,686)
(Benefit) provision for income taxes		(589)		1,086		—		497
Consolidated net (loss) income		(4,183)		1,342		(1,342)		(4,183)
Net income attributable to noncontrolling interest		—		170		—		170
Net (loss) income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	(4,183)	$	1,172	$	(1,342)	$	(4,353)

Schedule of Consolidating Statements of Comprehensive Income (Loss)

	Three Months Ended June 30, 2018								Six Months Ended June 30, 2018
	Parent		Subsidiary						Parent		Subsidiary
	Issuer		Guarantors		Consolidating				Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated		UHS		SS & RES		Adjustments		Consolidated
Consolidated net income	$	24,999	$	1,310	$	(1,310)	$	24,999	$	29,739	$	2,428	$	(2,428)	$	29,739
Other comprehensive income:
Gain on minimum pension liability, net of tax		214		—		—		214		424		—		—		424
Total other comprehensive income		214		—		—		214		424		—		—		424
Comprehensive income		25,213		1,310		(1,310)		25,213		30,163		2,428		(2,428)		30,163
Comprehensive income attributable to noncontrolling interest		—		81		—		81		—		166		—		166
Comprehensive income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	25,213	$	1,229	$	(1,310)	$	25,132	$	30,163	$	2,262	$	(2,428)	$	29,997

	Three Months Ended June 30, 2017								Six Months Ended June 30, 2017
	Parent		Subsidiary						Parent		Subsidiary
	Issuer		Guarantor		Consolidating				Issuer		Guarantor		Consolidating
	UHS		SS & RES		Adjustments		Consolidated		UHS		Surgical Services		Adjustments		Consolidated
Consolidated net (loss) income	$	(2,293)	$	929	$	(929)	$	(2,293)	$	(4,183)	$	1,342	$	(1,342)	$	(4,183)
Other comprehensive income:
Gain on minimum pension liability, net of tax		192		—		—		192		371		—		—		371
Total other comprehensive income		192		—		—		192		371		—		—		371
Comprehensive (loss) income		(2,101)		929		(929)		(2,101)		(3,812)		1,342		(1,342)		(3,812)
Comprehensive income attributable to noncontrolling interest		—		98		—		98		—		170		—		170
Comprehensive (loss) income attributable to Universal Hospital Services, Inc. and Subsidiaries	$	(2,101)	$	831	$	(929)	$	(2,199)	$	(3,812)	$	1,172	$	(1,342)	$	(3,982)

Schedule of Consolidating Statements of Cash Flows

	Six Months Ended June 30, 2018
	Parent		Subsidiary
	Issuer		Guarantors		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Cash flows from operating activities:
Consolidated net income	$	29,739	$	2,428	$	(2,428)	$	29,739
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		28,795		4,850		—		33,645
Gain on legal settlement		(21,474)		—		—		(21,474)
Amortization of intangibles, contract costs, deferred financing costs and bond premium		2,505		2,508		—		5,013
Equity in earnings of subsidiary		(2,428)		—		2,428		—
Provision for doubtful accounts		324		82		—		406
Provision for inventory obsolescence		144		175		—		319
Non-cash share-based compensation expense		1,256		251		—		1,507
Gain on sales and disposals of equipment		(1,025)		(25)		—		(1,050)
Deferred income taxes		454		(290)		—		164
Interest on note receivable		(21)		—		—		(21)
Changes in operating assets and liabilities:
Accounts receivable		(5,655)		482		—		(5,173)
Due from affiliates		4,703		—		(4,703)		—
Inventories		(549)		(5)		—		(554)
Other operating assets		129		(91)		—		38
Accounts payable		(1,962)		2,171		—		209
Other operating liabilities		2,701		356		—		3,057
Net cash provided by operating activities		37,636		12,892		(4,703)		45,825
Cash flows from investing activities:
Medical equipment purchases		(17,872)		(5,401)		—		(23,273)
Property and office equipment purchases		(4,205)		(111)		—		(4,316)
Proceeds from disposition of property and equipment		1,654		159		—		1,813
Issuance of note receivable from officer		(581)		—		—		(581)
Net cash used in investing activities		(21,004)		(5,353)		—		(26,357)
Cash flows from financing activities:
Proceeds under senior secured credit facility		104,448		—		—		104,448
Payments under senior secured credit facility		(113,598)		—		—		(113,598)
Payments of principal under capital lease obligations		(2,028)		(1,044)		—		(3,072)
Holdback payment related to acquisition		—		(624)		—		(624)
Distributions to noncontrolling interests		—		(213)		—		(213)
Proceeds from exercise of parent company stock options		285		—		—		285
Shares forfeited for taxes		(1,149)		—		—		(1,149)
Due to affiliates		—		(4,703)		4,703		—
Change in book overdrafts		(5,345)		(22)		—		(5,367)
Net cash used in financing activities		(17,387)		(6,606)		4,703		(19,290)
Net change in cash and cash equivalents		(755)		933		—		178
Cash and cash equivalents at the beginning of period		—		—		—		—
Cash and cash equivalents at the end of period	$	(755)	$	933	$	—	$	178

	Six Months Ended June 30, 2017
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		SS & RES		Adjustments		Consolidated
Cash flows from operating activities:
Consolidated net (loss) income	$	(4,183)	$	1,342	$	(1,342)	$	(4,183)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation		31,538		4,126		—		35,664
Amortization of intangibles, deferred financing costs and bond premium		2,929		2,531		—		5,460
Equity in earnings of subsidiary		(1,342)		—		1,342		—
Provision for doubtful accounts		85		(12)		—		73
Provision for inventory obsolescence		(10)		132		—		122
Non-cash share-based compensation expense		1,305		246		—		1,551
Gain on sales and disposals of equipment		(992)		(54)		—		(1,046)
Deferred income taxes		788		(584)		—		204
Interest on note receivable		(11)		—		—		(11)
Changes in operating assets and liabilities:
Accounts receivable		(466)		624		—		158
Due from affiliates		(5,731)		—		5,731		—
Inventories		14		481		—		495
Other operating assets		(134)		(280)		—		(414)
Accounts payable		(2,435)		(1,204)		—		(3,639)
Other operating liabilities		(2,430)		(951)		—		(3,381)
Net cash provided by operating activities		18,925		6,397		5,731		31,053
Cash flows from investing activities:
Medical equipment purchases		(19,105)		(5,191)		—		(24,296)
Property and office equipment purchases		(3,206)		(103)		—		(3,309)
Proceeds from disposition of property and equipment		2,010		81		—		2,091
Issuance of note receivable from officer		(936)		—		—		(936)
Acquisition and refund of escrow		3,691		(5,614)		—		(1,923)
Net cash used in investing activities		(17,546)		(10,827)		—		(28,373)
Cash flows from financing activities:
Proceeds under senior secured credit facility		83,200		—		—		83,200
Payments under senior secured credit facility		(79,692)		—		—		(79,692)
Payments of principal under capital lease obligations		(2,623)		(796)		—		(3,419)
Distributions to noncontrolling interests		—		(133)		—		(133)
Proceeds from exercise of parent company stock options		29		—		—		29
Contribution from Parent		1,900		—				1,900
Due to affiliates		—		5,731		(5,731)		—
Change in book overdrafts		(4,193)		(372)		—		(4,565)
Net cash (used in) provided by financing activities		(1,379)		4,430		(5,731)		(2,680)
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	$	—	$	—	$	—	$	—