EX-99.1 2 a09-34355_1ex99d1.htm EX-99.1

Exhibit 99.1

 

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Universal Hospital Services, Inc. Investor Presentation December 2009/January 2010

 


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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Universal Hospital Services, Inc. believes statements in this presentation looking forward in time involve risks and uncertainties based on management’s current views and assumptions. Actual events may differ materially. Please refer to the cautionary statement regarding forward-looking statements and risk factors that appear in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, and other filings with the SEC, which can be accessed at www.UHS.com under “Financials.” This presentation contains non-GAAP measures as defined by SEC rules. Reconciliations of these measures to the most directly comparable GAAP measures are contained in the appendix. Forward Looking Statements

 


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UHS: Leading Provider of Equipment Based Solutions Monitors Bariatrics Ventilators IV Pumps Beds / Surfaces Wound Therapy Medical Equipment Fleet of > 515,000 Units Owned or Managed Nationwide footprint of > 80 offices and 6 centers of excellence serving: ~ 4,200 Hospitals ~ 4,200 Alternate Care Facilities > 200 Manufacturers

 


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Examples Of Customers Acute Care Hospitals (~ 4,200) Alternative Care (~ 4,200) Manufacturers (> 200)

 


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Refer to Appendix for reconciliation of Adjusted EBITDA to Cash Flows from Operations Consistent Growth in Good or Challenging Times Adjusted EBITDA (000's) $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E

 


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The Problem With Healthcare Solutions: “Slivers” of Value / Not “Accountable” Hospital Admission & Discharge System Pharmacy / Drug Library New Equipment Technology Equipment Utilization Repair & Maint. Reporting / Compliance Capital Revenue Cycle / I.T. Equipment Manufacturers Drug / Pharmacy Distributors Staffing Staffing Productivity Consultants, Software Firms Purchasing Group Purchasing Org’s 3rd Party Biomed

 


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Only UHS Impacts All of These Processes and “Make It All Work” in the Hospital Through our Comprehensive Solutions UHS People, Processes & Technology Admission & Discharge System Pharmacy / Drug Library New Equipment Technology Equipment Utilization Repair & Maint. Reporting / Compliance Capital Revenue Cycle / I.T. Staffing Productivity Purchasing UHS is at the “Integration Center Point” of Technology, Information and Physical Processes

 


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UHS’ “Solutions” Approach to Customers Gateway Solutions Comprehensive Solutions Vertical Solutions Efficiency Cost Patient Outcomes Peak Need Rental Biomed Services Asset Management CHAMP Services Wound Care Patient Handling

 


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“Gateway” Solutions Satisfy Peak Need and Fast Response Needs, and Serve as the Springboard for Other Products Rental 10% Owned Equipment 90% Winter Spring Summer Fall Hospital Equipment Needs Peak Need Rental Biomed Services

 


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UHS is “Full-Time Resident” in the Hospital in Comprehensive Solutions Rental 10% Owned Equipment 90% Winter Spring Summer Fall Hospital Equipment Needs Asset Management CHAMP Services Multi-billion Dollar Addressable Market Processes Technology People

 


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With Comprehensive Solutions, UHS is Accountable to the Hospital to Drive Numerous Customer Benefits Capital and Operating Cost Savings Allow Caregivers to Focus on Patient and, In Turn, Reduce Infections and Never Events Information Integration, Leading to Improved Processes and Efficiency 0% 20% 40% 60% 80% Pre Asset Mgmt Post Asset Mgmt Improved Equipment Utilzation

 


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“Gateway” and “Comprehensive” Solutions Establish Credibility to Bring “Vertical” Solutions Wound Care $1 Billion Market Patient Handling $600 million Market Asset Management CHAMP Services Peak Need Rental Biomed Services Gateway Solutions Vertical Solutions Comprehensive Solutions Acquisition Opportunities Tremendous Capacity for More “Verticals” Via Our Established Infrastructure and ~ 8,400 Customers!

 


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Refer to appendix for reconciliation of Adjusted EBITDA to Cash Flows from Operations YTD Adjusted EBITDA Performance (% comparisons of Adjusted EBITDA to prior year) Q1-2009 (7%) + 8% Q3-2009 Q2-2009 +10% Growth in Asset Management, Patient Handling and Wound Care Offset Weak Peak Need Rentals Headwinds: Economy / Weak Q1 ‘09 Flu / Hospital Census Full Year Results Expected to Show Modest Growth

 


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Impact of Potential Health Care Reform on UHS Reform details lack clarity Watching the following: Impact on Hospitals Impact on Manufacturers Impact on Individuals General themes are entirely consistent with UHS’ strengths: Efficiency Cost Patient Safety & Outcomes

 


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$135 Bank Line (as of 9/30/09) Available Liquidity = $115 Used = $20 ( Including LOCs and net of cash and investments ) Liquidity Remains Robust Debt Maturities $- $100 $200 $300 $400 $500 2009 2010 2011 2012 2013 2014 2015 $135 Revolver

 


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Leverage Trend Refer to Appendix for reconciliation of Adjusted EBIDTA to Cash Flow from Operations Total Net Debt and Accrued Interest / LTM Adjusted EBITDA Recap Recap 6.0 5.0 4.0 3.0 2.0 1.0 Q1-00 Q3-00 Q1-01 Q3-01 Q1-02 Q3-02 Q1-03 Q3-03 Q 1-04 Q 3-04 Q 1-05 Q3-05 Q1-06 Q3-06 Q1-07 Q3-07 Q1-08 Q3-08 Q1-09 Q3-09

 


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UHS Outlook Expect Strong Q4-2009 and Another Growth year in 2010 driven by: Comprehensive Solutions Asset Management Vertical Solutions: Patient Handling Wound Care Acquisition Opportunities Significant GPO “Requests for Proposal” pending

 


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EBITDA Reconciliation: 1998 – LTM Q3 2009 Appendix

 


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Adjusted EBITDA Reconciliation. Adjusted EBITDA is defined by UHS as Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) before management and board fees, stock option expense, ASC 805** impact, loss on extinguishment of debt and transaction and related costs, 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, and 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 operating cash flows to EBITDA and Adjusted EBITDA is included below. EBITDA Reconciliation: 1998 – LTM Q3 2009 ** Previously referred to as FAS 141 $ in Millions 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 LTM Q3 2009 Net Cash provided by Operating Activities 9.7 $ 15.2 $ 28.2 $ 31.7 $ 40.2 $ 16.0 $ 38.0 $ 44.0 $ 48.9 $ 29.8 $ 56.2 $ 57.9 $ Changes in Operating Assets and Liabilities 1.4 3.7 (3.5) 0.4 4.1 7.9 2.2 2.3 0.7 6.7 3.6 4.4 Other and Non-Cash Expenses 0.9 0.7 (2.3) (3.7) (11.7) (7.9) (3.4) (3.3) (4.1) (28.5) 6.5 6.6 Income Tax Expense (1.1) (1.7) 0.1 0.1 0.1 0.3 1.2 0.8 0.6 (9.7) (15.4) (14.7) Interest Expense 11.2 18.0 20.7 19.6 18.1 20.2 30.5 31.1 31.6 40.2 46.9 47.0 EBITDA 22.1 35.9 43.2 48.1 50.8 36.5 68.5 75.0 77.7 38.5 97.8 101.2 Recapitalization, company sale, stock compensation and severence expenses 5.1 - - 1.6 10.1 14.4 - - - 27.2 - - Terminated IPO Expenses - - - 1.2 - - - - - - - - Loss on extinguishment of debt - - - - - 13.3 - - - 23.4 - - Financing and Reorganization Charges 5.1 $ - $ - $ 2.8 $ 10.1 $ 27.7 $ - $ - $ - $ 50.6 $ - $ - $ Management, Board, & Strategic Fees - - 0.3 0.4 0.3 0.3 0.7 0.8 1.6 1.0 1.3 1.3 Other 2.9 - - - - - - - - (0.7) 0.1 - Stock Option Expense - - - - - - - - 1.7 3.7 2.5 1.7 FAS 141 Impact - - 2.4 2.3 2.0 Adjusted EBITDA 30.1 $ 35.9 $ 43.5 $ 51.3 $ 61.2 $ 64.5 $ 69.2 $ 75.8 $ 81.0 $ 95.5 $ 104.0 $ 106.2 $ Total Revenue 69.4 $ 92.2 $ 106.0 $ 125.6 $ 153.8 $ 171.0 $ 199.6 $ 215.9 $ 225.1 $ 264.0 $ 289.1 $ 290.0 $ Total Debt & Accrued Interest, Less Cash & Investments * 153.8 $ 192.4 $ 199.0 $ 209.2 $ 205.8 $ 276.7 $ 301.9 $ 305.0 $ 315.0 $ 501.1 $ 521.7 $ 511.4 $ Leverage (Total Net Debt & Accrued Interest Less Cash & Investments/ LTM adj EBITDA) * 5.1 5.4 4.6 4.1 3.4 4.3 4.4 4.0 3.9 5.2 5.0 4.8