8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): November 2, 2004

UNIVERSAL HOSPITAL SERVICES, INC.
(Exact name of registrant as specified in its charter)

Delaware	333-111606	41-0760940
(State or other jurisdiction of	(Commission	(IRS Employer
incorporation or organization)	File Number)	Identification No.)

3800 American Boulevard West, Suite 1250
Bloomington, Minnesota 55431-4442
(Address of principal executive
offices)
(Zip Code)

952-893-3200
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATION AND FINANCIAL CONDITION

On November 2, 2004, Universal Hospital Services, Inc. issued a press release announcing its financial results for the three months and nine months ended September 30, 2004. A copy of the press release is furnished herewith as an exhibit and incorporated herein by reference.

ITEM 7.01 REGULATION FD DISCLOSURE

Attached as Exhibit 99.2 to this report, and incorporated herein by reference, is a copy of the slide presentation made during the investor conference call with management, held November 3, 2004, to discuss Universal Hospital Services, Inc.‘s announced earnings for the third quarter ended September 30, 2004.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

99.1 Press release issued by Universal Hospital Services, Inc. on November 2, 2004

99.2 Slides presented during Universal Hospital Services, Inc. webcast of its third quarter 2004 earnings call made on November 3, 2004

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, Universal Hospital Services, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: November 2, 2004 UNIVERSAL HOSPITAL SERVICES, INC.


By: /s/ Rex T. Clevenger
Rex T. Clevenger
Senior Vice President and
Chief Financial Officer

3

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release issued by Universal Hospital Services, Inc. on November 2, 2004
99.2	Slides presented during Universal Hospital Services, Inc. webcast of its third quarter 2004 earnings

4

EX-99.1

Exhibit 99.1

		Corporate Office 3800 American Blvd West, # 1250 Phone: 952.893.3200 Bloomington, MN 55431 Fax: 952.893.0704 www.uhs.com
CONTACT:	Bethany A. Oliver
	Director of Marketing & Communications
	Universal Hospital Services, Inc.
	(952) 893-3288

UNIVERSAL HOSPITAL SERVICES, INC. ANNOUNCES THIRD QUARTER EARNINGS
CONTINUED SOLID GROWTH ACROSS ALL BUSINESS SEGMENTS

Bloomington, Minnesota, November 2, 2004/BusinessWire – Universal Hospital Services, Inc., (“UHS”) today announced financial results for the third quarter ended September 30, 2004.

Total revenues were $49.6 million for the third quarter of 2004, representing an 18.6% increase from total revenues for the same period of 2003. Gross margin increased by 14.9% to $20.4 million during the quarter. Through the first nine months of 2004, revenues increased by 17.0% to $147.9 million, and gross margin increased by 12.9% to $63.8 million. Net loss for the quarter was $1.0 million, compared to net income of $1.0 million for the same quarter last year. The net loss for the first nine months of 2004 is $0.3 million, compared to net income of $5.0 million last year. The change from last year is primarily due to increased interest expense related to our recapitalization in the fourth quarter of 2003.

“Our third quarter results were in line with our growth expectations and depict consistent performance across the lifecycle of services including outsourcing, our AMPP and resident based programs, as well as strong momentum in our less capital intensive Equipment Sales and Remarketing and Service businesses” said President and CEO Gary Blackford. “In addition, our re-entry into the Bariatrics market earlier this year continues to produce solid results.”

Earnings before interest, taxes, depreciation and amortization (EBITDA*) for the third quarter of 2004 were $16.6 million compared to $15.1 million for the prior year, a $1.5 million or 10.3% increase. For the first nine months of 2004 EBITDA was $51.8 million versus $47.9 million for the prior year, a $3.9 million or an 8.1% increase.

We will conduct a conference call regarding the Third Quarter 2004 results on Wednesday, November 3rd at 10:00 AM CST. To participate, you may call (877) 284-1151 and indicate you would like to join in the UHS Third Quarter Results Call with Gary Blackford as the leader. A taped replay of this call will be available from 11:00 AM CST on November 3rd until 11:00 PM CST on November 10th. The “Encore Dial-in” number is: (800) 642-1687 or (706) 645-9291, confirmation #1886092.

This call is being webcast by CCBN and can be accessed at the Universal Hospital Services, Inc. web site at www.uhs.com. Click on “Financials” and then on “Webcasts”. UHS 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 by clicking in the “Financials” section and then on “Presentations” or by using this link http://www.uhs.com/uhsweb/uhsweb.nsf/vwPageKeyLkup/Presentations?OpenDocument.

The webcast is also being distributed over CCBN’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN’s individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors can access the call via CCBN’s password-protected event management site, StreetEvents (www.streetevents.com).

Corporate Office
3800 American Blvd West, # 1250
Phone: 952.893.3200
Bloomington, MN 55431
Fax: 952.893.0704
www.uhs.com

* EBITDA is 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 is not representative of funds available for discretionary use due to the Company’s financing obligations. EBITDA, as defined by the Company, may not be calculated consistently among other companies applying similar reporting measures. EBITDA is included herein 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 the Company’s debt covenant calculations. Management believes that 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 EBITDA to operating cash flows is included on the attached Statements of Cash Flows.

About Universal Hospital Services, Inc.

Based in Bloomington, Minnesota, Universal Hospital Services, Inc. is the leading medical equipment lifecycle services company in the country. UHS offers comprehensive solutions that maximize utilization, increase productivity and support optimal patient care resulting in capital and operational efficiencies. UHS currently operates through 13 regional service centers and more than 70 district offices, serving customers in all 50 states and the District of Columbia.

Universal Hospital Services, Inc.
3800 American Boulevard West, Suite 1250
Bloomington, MN 55431-4442
952-893-3200
www.uhs.com

************

Corporate Office
3800 American Blvd West, # 1250
Phone: 952.893.3200
Bloomington, MN 55431
Fax: 952.893.0704
www.uhs.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Universal Hospital Services, Inc. (“UHS”) 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: UHS’ history of net losses and substantial interest expense; UHS’ need for substantial cash to operate and expand its business as planned; UHS’ substantial outstanding debt and debt service obligations; restrictions imposed by the terms of UHS’ debt; a decrease in the number of patients our customers are serving; UHS’ ability to effect change in the manner in which healthcare providers traditionally procure medical equipment; the absence of long-term commitments with customers; UHS’ 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; difficulties or delays in our continued expansion into certain of our businesses/geographic markets and developments of new businesses/geographic markets; and additional credit risks in increasing business with home care providers and nursing homes. These and other risk factors are detailed in UHS’ Annual Report on Form 10K/A for the year ended December 31, 2003, filed with Securities and Exchange Commission.

UHS 3rd Quarter 2004
2-Nov-04
Page 4

UNIVERSAL HOSPITAL SERVICES, INC.
BALANCE SHEETS
(dollars in thousands except share and per share information)

ASSETS
		September 30, 2004			December 31, 2003
	(unaudited)
Current assets:
Accounts receivable, less allowance for doubtful accounts of $1,950 and $1,750
at September 30, 2004 and December 31, 2003, respectively	$	39,065		$	33,943
Inventories		4,790			3,441
Deferred income taxes		2,060			2,205
Other current assets		1,721			1,961
Total current assets		47,636			41,550
Property and equipment, net:
Movable medical equipment, net		123,111			122,931
Property and office equipment, net		7,989			6,784
Total property and equipment, net		131,100			129,715
Intangible assets:
Goodwill		44,006			36,348
Other, primarily deferred financing costs, net		10,870			11,423
Other intangibles, net		4,833			1,183
Total assets	$	238,445		$	220,219
LIABILITIES AND SHAREHOLDERS’ DEFICIENCY
Current liabilities:
Current portion of long-term debt	$	324		$	284
Accounts payable		10,841			13,775
Accrued compensation and pension		8,658			7,699
Accrued interest		11,112			5,600
Other accrued expenses		3,139			2,010
Book overdrafts		202			3,891
Total current liabilities		34,276			33,259
Long-term debt, less current portion		288,139			270,798
Deferred compensation and pension		3,474			3,860
Deferred income taxes		2,060			2,205
Shareholders’ deficiency:
Common stock, $0.01 par value; 500,000,000 shares authorized,
123,430,614 and 122,768,962 shares issued and outstanding at
September 30, 2004 and December 31, 2003, respectively		1,234			1,228
Additional paid-in capital		698			—
Accumulated deficit		(88,680	)		(88,375	)
Accumulated other comprehensive loss		(2,756	)		(2,756	)
Total shareholders’ deficiency		(89,504	)		(89,903	)
Total liabilities and shareholders’ deficiency	$	238,445		$	220,219

UHS 3rd Quarter 2004
2-Nov-04
Page 5

Universal Hospital Services, Inc.
Statements of Income
(dollars in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2004			2003			2004			2003
	(unaudited)						(unaudited)
Medical equipment outsourcing	$	38,582		$	34,358		$	116,936		$	104,925
Medical equipment sales, remarketing and disposables, and other		4,291			3,825			12,824			11,117
Technical and professional services		6,735			3,662			18,135			10,343
Total revenues		49,608			41,845			147,895			126,385
Costs of medical equipment outsourcing, sales and service		29,204			24,085			84,098			69,860
Gross margin		20,404			17,760			63,797			56,525
Selling, general and administrative		13,956			11,671			41,351			35,178
Operating income		6,448			6,089			22,446			21,347
Interest expense		7,550			4,354			22,483			13,034
(Loss) income before income taxes		(1,102	)		1,735			(37	)		8,313
(Benefit) provision for income taxes		(114	)		705			225			3,336
Net (loss) income	$	(988	)	$	1,030		$	(262	)	$	4,977
Additional information
EBITDA	$	16,646		$	15,088		$	51,837		$	47,943
EBITDA as a percentage of total revenues		33.6	%		36.1	%		35.1	%		37.9	%
Movable medical equipment (approximate number of units at end of period)								151,000			143,000
Offices (at end of period)								76			68
Number of hospital outsourcing customers (at end of period)								3,100			2,850
Number of total outsourcing customers (at end of period)								6,250			5,925
Movable medical equipment depreciation expense	$	9,259		$	8,121		$	26,909		$	23,921

UHS 3rd Quarter 2004
2-Nov-04
Page 6

Universal Hospital Services, Inc.
Segmented Reporting
(dollars in thousands)
(unaudited)

3rd QUARTER RESULTS
	Outsourcing					Sales					Service					Consolidated
	2004			2003		2004			2003		2004			2003		2004			2003
Revenue	$	38,582		$	34,358	$	4,291		$	3,825	$	6,735		$	3,662	$	49,608		$	41,845
Cost		20,951			N/A		3,488			N/A		4,764			N/A		29,204			24,085
Gross Margin	$	17,631			N/A	$	803			N/A	$	1,971			N/A	$	20,404		$	17,760
Gross Margin %		45.7	%		N/A		18.7	%		N/A		29.3	%		N/A		41.1	%		42.4	%
YEAR TO DATE RESULTS
		Outsourcing				Sales					Service					Consolidated
	2004			2003		2004			2003		2004			2003		2004			2003
Revenue	$	116,936		$	104,925	$	12,824		$	11,117	$	18,135		$	10,343	$	147,895		$	126,385
Cost		61,662			N/A		9,784			N/A		12,652			N/A		84,098			69,860
Gross Margin	$	55,274			N/A	$	3,040			N/A	$	5,483			N/A	$	63,797		$	56,525
Gross Margin %		47.3	%		N/A		23.7	%		N/A		30.2	%		N/A		43.1	%		44.7	%

UHS 3rd Quarter 2004
2-Nov-04
Page 7

	Percent of Total Revenues										Percent Increase (Decrease)
	Three Months Ended September 30,					Nine Months Ended September 30,					Qtr 3 2004 Over Qtr 3 2003		Nine Months 2004 Over Nine Months 2003
	2004			2003		2004			2003
Medical equipment outsourcing		77.8%			82.1%		79.1%			83.0%		12.3%		11.4%
Medical equipment sales, remarketing and disposables, and other		8.6			9.1		8.6			8.8		12.2		15.3
Technical and professional services		13.6			8.8		12.3			8.2		83.9		75.3
Total revenues		100.0			100.0		100.0			100.0		18.6		17.0
Costs of medical equipment outsourcing, sales and service		58.9			57.6		56.9			55.3		21.2		20.4
Gross margin		41.1			42.4		43.1			44.7		14.9		12.9
Selling, general and administrative		28.1			27.8		27.9			27.8		19.6		17.5
Operating income		13.0			14.6		15.2			16.9		5.9		5.1
Interest expense		15.2			10.5		15.2			10.3		73.4%		72.5
(Loss) income before income taxes		(2.2	)		4.1		—			6.6		NM		NM
(Benefit) provision for income taxes		(0.2	)		1.6		0.2			2.7		NM		NM
Net (loss) income		(2.0%	)		2.5%		(0.2%	)		3.9%		NM		NM

UHS 3rd Quarter 2004
2-Nov-04
Page 8

Universal Hospital Services, Inc.
Statements of Cash Flows
(dollars in thousands)

	Nine Months Ended September 30,
	2004			2003
Cash flows from operating activities:	(unaudited)
Net (loss) income	$	(262	)	$	4,977
Adjustments to reconcile net (loss) income to net
cash provided by operating activities:
Depreciation		29,089			25,558
Amortization of intangibles		302			1,038
Accretion of bond discount		—			397
Provision for doubtful accounts		1,051			528
Non-cash stock-based compensation expense		—			160
(Gain) loss on sales/disposal of equipment		(470	)		412
Deferred income taxes		—			3,141
Changes in operating assets and liabilities, net of impact of
acquisition:
Accounts receivable		(3,125	)		(1,697	)
Inventories and other operating assets		(199	)		(425	)
Accounts payable and accrued expenses		10,748			(4,873	)
Net cash provided by operating activities		37,134			29,216
Cash flows from investing activities:
Movable medical equipment purchases		(34,271	)		(26,710	)
Property and office equipment purchases		(3,008	)		(2,025	)
Proceeds from disposition of movable medical equipment		2,372			1,465
Acquisitions		(15,455	)		—
Other		(1,081	)		(1,905	)
Net cash used in investing activities		(51,443	)		(29,175	)
Cash flows from financing activities:
Proceeds under loan agreements		75,714			50,950
Payments under loan agreements		(58,378	)		(49,244	)
Repurchase of common stock		(43	)		—
Payment of deferred financing cost		—			(5	)
Proceeds from issuance of common stock, net of offering costs		705			42
Change in book overdraft		(3,689	)		(1,784	)
Net cash provided by (used in) financing activities		14,309			(41	)
Net change in cash and cash equivalents	$	—		$	—
Supplemental cash flow information:
Interest paid	$	15,710		$	16,319
Income taxes paid	$	61		$	192
Movable medical equipment purchases in accounts payable	$	4,187		$	3,270
Movable medical equipment additions	$	28,990		$	24,303
Additional information
Net cash provided by operating activities	$	37,134		$	29,216
Changes in operating assets and liabilities		(7,363	)		6,995
Other non-cash expenses		(581	)		(1,497	)
Current income taxes		164			195
Interest expense		22,483			13,034
EBITDA	$	51,837		$	47,943

GRAPHIC 3 uhs.gif GRAPHIC begin 644 uhs.gif M1TE&.#=A7P!(`/<``````(````"``("`````@(``@`"`@,#`P,#N8D5V$A-`W,BQ(\($Z\*)'"FN9,F1(]QI6UF$ZCXWTS* M?=_^RR:3GNF1,14?_DR0GEZ9+-6=#:U:+^IPFY?>+JF9MD'=BG/O!HJ:YF_* MPVL:-S@\G/*ZO)N;_.TZ>'29TPM6_[_>-_OFC!*;VQ48LWIX@D&M_T->GOD_ M;'^URU2WTW'I]P+YM]M\RY6D7V^*(5@36`!B=I9&`IIDGF^F%::17HL!>"!Q MP?65`#O;5>A1!)@?"E9&4HK&H7D/[S1Q99\4PY4I95=89DE06-Q:15: M7\+4I)A]95@F0K9]=V4XQ:VY4'MN-C73;'(N9`\]>UU%$CU2YLG11+I!21)& M>`JJZ**,-NKHHY!&*NFDE'J4J*6(D7+`/PB00M`!"$!TP!8"::;I/Z3<`]JF M!-F3A$"N(?]PCZ<)V:,J1Z2$^L^M#QG%DCV;E/K/%BS=HVJ@!O$JD!3L#=O0 MKXPYE*M`]R1QCQ3`'B#%`?<<0(JF4FBJ*;#&_A/L/YIMTNTFW"*`K;$(6)N$ MMU)T>L"KS&Z&*K:V;G$``+F^ZJ^_HQZ@K<'*&C3M/P<$:S"WPQI\*BDL2<&L MK9Z>JQFQNVK+\+7!DKI)I^=ZG&]62;`;:K[8AKH)J?]L:T^\"1?D+:<(D-HM MQ-OF3&6N+'6Z;G0ODNA&.EJR++^.,;.4[M>Y(+%+96XT:K)970:BGEY]!V3J7F?G/. M:]!&I4HK4@;;@^T6W[J>JCT4WP/S)OW.RK6WMB[]+;6>PO[VTOY*<8_4[%:; M:?)+@^HILZ/*NNOOQB9O[J[WX&[MKM>3.K6QQJ/JM[?)XZU5IPB4HG?@@>N= MZK*HJHK[N:ISRS>MZNI.JK_8;_%WL*KRW^JTXJO(1&8E!I22V2#'F'70XX'H ID<@#*5*1'[F.@2]A%08WR,$.>O"#(`RA"$=(PA*:\(0H3*$*LQ00`#L_ ` end EX-99.2 4 d61091_ex99-2.htm EXHIBIT 99.2

Universal   Hospital   Services

Service you can count on.

3rd Quarter 2004
Earnings TeleconferenceNovember 3, 2004

^SM

Forward Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

Universal Hospital Services, Inc. (“UHS”) 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: UHS’ history of net losses
and substantial interest expense; UHS’ need for substantial cash to operate and expand its
business as planned; UHS’ substantial outstanding debt and debt service obligations; restrictions
imposed by the terms of UHS’ debt; a decrease in the number of patients our customers are
serving; UHS’ ability to effect change in the manner in which healthcare providers traditionally
procure medical equipment; the absence of long-term commitments with customers; UHS’ 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; difficulties or delays in our continued expansion into certain of our
businesses/geographic markets and developments of new businesses/geographic markets; and
additional credit risks in increasing business with home care providers and nursing homes. These
and other risk factors are detailed in UHS’ Annual Report on Form 10K/A for the year ended
December 31, 2003, filed with Securities and Exchange Commission.

This presentation contains non-GAAP measures as defined by SEC rules.  A reconciliation of
these measures to the most directly comparable GAAP measures is contained in the appendix.

2

3rd Quarter Results    ($ millions)

10%

16.6

15.1

EBITDA

15%

20.4

17.8

Gross Margin

19%

49.6

41.8

Revenues

% Change

2004

2003

Refer to appendix for reconciliation of EBITDA to Cash Flow from Operations

3

UHS Performance – 2004 Year-to-Date

5.0

4.0

3.0

2.0

1.0

0.0

-1.0

2.7

3.1

(0.4)

(0.2)

2001

2002

2003

2004 Est

% Change in Hospital
Census
(source: UHS Estimates)

Resident programs are
key component of UHS
growth

UHS continues to grow
through the challenges
posed at left

Transition from “Rental” to “Equipment Lifecycle Services Company” in progress

Non-capital intensive businesses have grown over 40% YTD

Over 100 resident programs (AMPP; CHAMP/Resident Biomed)

Challenges:

Increase in capital spending by hospitals on Moveable Medical Equipment

Bad Debt / Indigent Patients continue to be challenges for hospitals

Significant change in UHS business model

Significant personnel changes in management, sales, operations

Flat to down hospital census (see below)

4

UHS – Then (1939-2000) “Equipment Rental Company”

Refer to Appendix for Quadrant Descriptions

Medical
Equipment
Rental

Maintain
& Repair

Redeploy
& Remarket

Equipment
Lifecycle
    Services ^SM

Market Size: $200 million

Competition: Mediq and Local
                       Mom & Pops

Plan &
Acquire

Manage
& Utilize

5

UHS – Today:
“Equipment Lifecycle Services” Company

Refer to Appendix for Quadrant Descriptions

Equipment
Lifecycle
Services ^SM

Advent of AMPP addresses
$5 Billion market

Medical
Equipment
Rental

Professional
Services

Amplifier of
other Quadrants

Market size of
$5 Billion

Recovery &
Brokerage

Biomedical
Services

Market size of
$20 Billion

Manage
& Utilize

Plan &
Acquire

Redeploy
& Remarket

Maintain
& Repair

6

Quadrant 1 Focus – Plan & Acquire

Manage
& Utilize

Maintain
& Repair

Plan &
Acquire

Redeploy
& Remarket

Prior to 2004, UHS’ activity in the Plan & Acquire quadrant has focused on
supporting the other 3 quadrants with services such as:

Utilization studies

Full fleet assessments

Capital plans

Best of class medical equipment acquisition analysis

Product introduction and training services

2004 and Beyond:

Stand-alone, fee-based Consulting Services

Expansion of offerings that build on UHS’ proprietary database and industry
expertise

Equipment
Lifecycle
Services

^SM

7

2005 Preliminary Outlook

Hospital customers will continue to be challenged:

Continued weakness in hospital census

Post election health care reform uncertainty and its impact on hospital spending;
commitment to long-term contracts

Continued growth of our Resident based programs

Rationalization of our Sales and Customer Service organizations as we
enhance our capabilities

Increased spending on Training, Systems and Efficiency Programs

Sarbanes Oxley will draw significant resources in 2005

Rapidly grow less capital intensive business segments

Further leveraging of current capital and investments

Take leadership market position in Bariatrics

Continue to strengthen and build strategic relationships with equipment
manufacturers

8

Financial Review

9

Revenue and EBITDA Growth     ($ millions)

200

150

100

50

0

1999

2000

2001

2002

2003

Last 12 Months
Ended 9/30/04

Medical Equipment Outsourcing Revenue

Equipment Sales and Remarketing Revenue

Technical & Professional Services Revenue

EBITDA *

Financing and Reorganization Charges *

* Refer to appendix for definition and reconciliation

10

Medical Equipment  Outsourcing Overview($ millions)

* Bariatrics – The branch of medicine that deals with the causes, prevention and treatment of obesity.

**AMPP – Asset Management Partnership Program is a program in which UHS staff works within a hospital facility

Manage
& Utilize

Maintain
& Repair

Plan &
Acquire

Redeploy
& Remarket

Equipment
Lifecycle
Services

Robust supplemental rental activity continued into 3rd Quarter due to:

Competitive take-aways

Re-entry into Bariatrics* market

Stronger relationships with Manufacturers

Strong contribution from AMPP** programs

3^rd Quarter trends:

46%

Gross Margin %

$17.6

Gross Margin

12%

$38.6

$34.4

Revenues

% Change

2004

2003

3rd Quarter

47%

$  55.3

11%

$116.9

$104.9

% Change

2004

2003

9 Months

^SM

to manage UHS or hospital-owned clinical equipment productivity. AMPP may also include a buy-out of the
hospital facility’s existing equipment.

11

Technical and Professional Services Overview($ millions)

*   Manufacturer Services - Outsourced biomedical / technical services provided by UHS to manufacturers on a

Manage
& Utilize

Maintain
& Repair

Plan &
Acquire

Redeploy
& Remarket

Equipment
Lifecycle
Services

Strong organic growth across the board

Increase in supplemental services business

Manufacturer Services* activity is strong as UHS’ nationwide technical services platform provides
efficiency to the manufacturer community

Resident programs continue to be solid with good pipelines

Additional growth from ACES acquisition

3^rd Quarter trends:

29%

Gross Margin %

$  2.0

Gross Margin

84%

$  6.7

$ 3.7

Revenues

% Change

2004

2003

3rd Quarter

30%

$   5.5

75%

$ 18.1

$ 10.3

% Change

2004

2003

9 Months

resident, response or scheduled basis

^SM

12

Medical Equipment Sales, Remarketing and Disposables
Overview($ millions)

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& Utilize

Maintain
& Repair

Plan &
Acquire

Redeploy
& Remarket

3^rd Quarter trends:

19%

Gross Margin %

$  0.8

Gross Margin

12%

$  4.3

$ 3.8

Revenues

% Change

2004

2003

3rd Quarter

24%

$   3.0

15%

$ 12.8

$ 11.1

% Change

2004

2003

9 Months

Good growth due to direct access to customers’ pre-owned equipment, as well as UHS’ expertise in
secondary markets

Disposables:

Accelerating rationalization of this lower margin business

This segment’s results will typically be choppy quarter-to-quarter due to the transactional nature of the
business

Equipment
Lifecycle
Services

^SM

13

Selected Income Statement Data($ millions)

3rd Quarter

9 Months

2003

2004

%

2003

2004

Gross Margin %

42%

41%

45%

43%

EBITDA before Mgmt & Board Fees

16.8

52.4

Mgmt & Board Fees

(0.2)

(0.6)

Net Income

1.0

$

$

(1.0)

5.0

$

$

(0.3)

%

Consolidated Revenues

$

41.8

$

49.6

19%

$

126.4

$

147.9

17%

Gross Margin

17.8

20.4

15%

56.5

63.8

13%

73%

Interest Expense

4.4

7.6

13.0

22.5

73%

8%

10%

EBITDA

15.1

16.6

47.9

51.8

Refer to appendix for reconciliation of EBITDA to Cash Flow from Operations

14

Cash Flow Overview($ millions)

3rd Quarter

9 Months

Moveable Medical Equipment (MME) Capex

Timing Related (b)

Cash Flow from Operations (a)

Cash Flow from Investing Activities

Accrual Based (b)

Acquisition Related MME Capex

Equipment Sales

Acquisitions

Other

Net Cash Provided by Financing Activities

Revolver Balance September 30

Total MME Capex (b)

Total from Investing Activities

Total Capex

Other Capex

2004

1.0

$

18.6

(8.2)

0.7

(0.2)

(7.2)

$

(7.2)

(11.4)

(7.8)

(0.6)

(4.1)  (c)

28.1

$

% Change

120%

21%

nm

2003

(1.0)

$

8.5

(7.5)

0.4

(0.4)

1.2

$

(8.5)

(9.4)

(9.4)

(0.9)

–

2004

(6.3)

$

37.1

(25.2)

2.4

(1.1)

14.3

$

(34.2)

(51.4)

(37.2)

(3.0)

(15.5)

% Change

27%

76%

nm

2003

(2.7)

$

29.2

(24.0)

1.4

(1.9)

$

(26.7)

(29.2)

(28.7)

(2.0)

(2.7)

(a)

Includes build-up of accrued interest (which is substantially the semiannual bond payment) of 6.6 in Q3 and 11.1 YTD

(b)

Accrual-Based Capex represents equipment capitalized to the balance sheet during the accounting period.  Timing Related Capex represents timing
differences based on payment cycles.  The sum of these is the cash paid for Capex during the period.

(b)

Primarily represents a reclass into acquisitions from other cash flow line items related to acquisitions made in Q2 2004

–

–

–

–

15

–

Liquidity Overview – Year-to-date September   ($ millions)

12/31/03
Revolver
Balance
$ 10

Cash Flow
from
Operations
$ 37

Other Capex $1

Acq. MME $3

MME* Timing
Capex $ 6

MME* Accrual
Capex $ 25

Acquisitions
$ 15

Other $ 5

9/30/04
Revolver
Balance

$ 28

Total
Capex
$35

$ 85

Borrowing Base at 9/30/04

Available
Capacity $57

$

*MME – Moveable Medical Equipment

16

Service you can count on.

3rd Quarter 2004
Earnings TeleconferenceNovember 3, 2004

Universal   Hospital   Services

^SM

Appendix

18

EBITDA Reconciliation Quarter 3 and YTD ($ millions)

EBITDA is 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 is not representative of funds
available for discretionary use due to the Company’s financing obligations. EBITDA, as defined by
the Company, may not be calculated consistently among other companies applying similar
reporting measures. 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 the Company’s debt covenant calculations, and EBITDA before management and board fees is
included because the company’s financial guidance and certain compensation plans are based
upon this measure. Management believes that 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 EBITDA to
operating cash flows is included below.

$

$

$

$

9 Months

$

$

$

$

Quarter 3

51.8

47.9

16.6

15.1

EBITDA

22.5

13.0

7.6

4.4

Interest expense

0.2

0.2

(0.2)

0.1

Current income taxes

(0.6)

(1.5)

(0.2)

(0.6)

Other non-cash expenses

   (7.4)

7.0

(9.2)

2.7

Changes in operating assets and liabilities

37.1

29.2

18.6

8.5

Net cash provided by operating activities

2004

2003

2004

2003

19

EBITDA Reconciliation 1999 – LTM September 2004 ($ millions)

184.7

$

171.0

$

153.8

$

125.6

$

106.0

$

92.2

$

Total Revenues

13.3

$

13.3

$

-

$

-

$

-

$

1.3

$

Loss on early retirement of debt

-

$

-

$

-

$

1.2

$

-

$

-

$

Terminated IPO expenses

14.4

$

14.4

$

10.1

$

1.6

$

-

$

-

$

Recapitalization, stock compensation,
and severance expenses

Financing and Reorganization Charges

40.5

36.5

50.8

48.1

43.2

35.9

EBITDA

29.7

20.2

18.1

19.6

20.7

18.0

Interest expense

0.3

0.3

0.1

0.1

0.1

0.6

Current income taxes

(6.3)

(7.4)

(11.7)

(3.7)

(2.3)

(2.1)

Other non-cash expenses

(6.5)

7.4

4.1

0.4

(3.5)

4.2

Changes in operating assets and liabilities

23.3

$

16.0

$

40.2

$

31.7

$

28.2

$

15.2

$

Net cash provided by operating activities

LTM Sept
2004

2003

2002

2000

1999

EBITDA

2001

$

$

$

$

$

$

20

Universal Hospital Services, Inc.
Equipment Lifecycle Services

Manage
& Utilize

Maintain
& Repair

Plan &
Acquire

Redeploy
& Remarket

Equipment
Lifecycle
Services ^SM

Plan and Acquire

Technology assessment baseline
reporting

Vendor neutral Capital Planning Services

Product comparison research and reports

Equipment product of choice

Manage and Utilize

Supplemental and Long-Term Equipment
Rentals

Complete suite of Bariatric products

Asset Management Partnership Program
(AMPP)

Maintain and Repair

Technical and Professional Services

Response-Based Biomedical Service
Programs

Resident-Based Biomedical Service
Management Programs

Redeploy and Remarket

Asset recovery & equipment brokerage

New equipment sales

Disposable Sales

Logistics Management

21

UHS Technical Service Locations

Where you need us.  When you need us.  How you need us.

District Office

Service Centers of Excellence

CORPORATE OFFICE

3800 American Boulleward West Suite 1250

Bloomington, MN 55431-4442

800.847.7368 952.803.3200 Fax: 952.803.0704