Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2015

Consolidating Financial Statements

Schedule of Consolidating Balance Sheets

	September 30, 2015
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Assets
Current assets:
Accounts receivable, less allowance for doubtful accounts	$	58,797	$	9,784	$	—	$	68,581
Due from affiliates		28,434		—		(28,434)		—
Inventories		4,343		3,754		—		8,097
Deferred income taxes, net		—		1,181		—		1,181
Other current assets		6,021		235		—		6,256
Total current assets		97,595		14,954		(28,434)		84,115
Property and equipment:
Medical equipment		544,058		43,672		—		587,730
Property and office equipment		75,830		8,797		—		84,627
Accumulated depreciation		(425,627)		(35,111)		—		(460,738)
Total property and equipment, net		194,261		17,358		—		211,619
Other long-term assets:
Goodwill		283,141		53,454		—		336,595
Investment in subsidiary		53,983		—		(53,983)		—
Other intangibles, net		150,594		14,688		—		165,282
Other, primarily deferred financing costs, net		10,209		77		—		10,286
Total assets	$	789,783	$	100,531	$	(82,417)	$	807,897
Liabilities and (Deficit) Equity
Current liabilities:
Current portion of long-term debt	$	4,059	$	1,049	$	—	$	5,108
Book overdrafts		4,147		2,304		—		6,451
Due to affiliates		—		28,434		(28,434)		—
Accounts payable		25,638		3,047		—		28,685
Accrued compensation		15,541		2,665		—		18,206
Accrued interest		6,568		—		—		6,568
Dividend payable		28		—		—		28
Other accrued expenses		14,367		610		—		14,977
Total current liabilities		70,348		38,109		(28,434)		80,023
Long-term debt, less current portion		697,788		3,434		—		701,222
Pension and other long-term liabilities		11,626		—		—		11,626
Payable to Parent		26,785		—		—		26,785
Deferred income taxes, net		49,092		4,746		—		53,838
Commitments and contingencies
(Deficit) Equity
Common stock		—		—		—		—
Additional paid-in capital		214,525		60,008		(60,019)		214,514
Accumulated deficit		(266,015)		(6,036)		—		(272,051)
Accumulated loss in subsidiary		(6,036)		—		6,036		—
Accumulated other comprehensive loss		(8,330)		—		—		(8,330)
Total Universal Hospital Services, Inc. (deficit) equity		(65,856)		53,972		(53,983)		(65,867)
Noncontrolling interest		—		270		—		270
Total (deficit) equity		(65,856)		54,242		(53,983)		(65,597)
Total liabilities and (deficit) equity	$	789,783	$	100,531	$	(82,417)	$	807,897

	December 31, 2014
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Assets
Current assets:
Accounts receivable, less allowance for doubtful accounts	$	57,767	$	8,489	$	—	$	66,256
Due from affiliates		28,701		—		(28,701)		—
Inventories		4,269		3,722		—		7,991
Deferred income taxes, net		—		1,273		—		1,273
Other current assets		7,434		237		—		7,671
Total current assets		98,171		13,721		(28,701)		83,191
Property and equipment:
Medical equipment		551,098		40,002		—		591,100
Property and office equipment		77,234		7,220		—		84,454
Accumulated depreciation		(415,131)		(30,350)		—		(445,481)
Total property and equipment, net		213,201		16,872		—		230,073
Other long-term assets:
Goodwill		283,141		52,436		—		335,577
Investment in subsidiary		53,123		—		(53,123)		—
Other intangibles, net		157,174		15,731		—		172,905
Other, primarily deferred financing costs, net		12,020		146		—		12,166
Total assets	$	816,830	$	98,906	$	(81,824)	$	833,912
Liabilities and (Deficit) Equity
Current liabilities:
Current portion of long-term debt	$	4,935	$	705	$	—	$	5,640
Book overdrafts		3,526		2,418		—		5,944
Due to affiliates		—		28,701		(28,701)		—
Accounts payable		27,458		2,656		—		30,114
Accrued compensation		12,406		2,702		—		15,108
Accrued interest		18,823		—		—		18,823
Dividend payable		39		—		—		39
Other accrued expenses		11,505		81		—		11,586
Total current liabilities		78,692		37,263		(28,701)		87,254
Long-term debt, less current portion		702,471		2,075		—		704,546
Pension and other long-term liabilities		12,428		—		—		12,428
Payable to Parent		24,911		—		—		24,911
Deferred income taxes, net		47,283		6,237		—		53,520
Commitments and contingencies
(Deficit) Equity
Common stock		—		—		—		—
Additional paid-in capital		214,525		60,008		(60,019)		214,514
Accumulated deficit		(247,522)		(6,896)		—		(254,418)
Accumulated loss in subsidiary		(6,896)		—		6,896		—
Accumulated other comprehensive loss		(9,062)		—		—		(9,062)
Total Universal Hospital Services, Inc. (deficit) equity		(48,955)		53,112		(53,123)		(48,966)
Noncontrolling interest		—		219		—		219
Total (deficit) equity		(48,955)		53,331		(53,123)		(48,747)
Total liabilities and (deficit) equity	$	816,830	$	98,906	$	(81,824)	$	833,912

Schedule of Consolidating Statements of Operations

	Three Months Ended September 30, 2015
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Revenue
Medical equipment solutions	$	68,985	$	—	$	—	$	68,985
Clinical engineering solutions		25,401		—		—		25,401
Surgical services		—		16,727		—		16,727
Total revenues		94,386		16,727		—		111,113
Cost of Revenue
Cost of medical equipment solutions		30,134		—		—		30,134
Cost of clinical engineering solutions		20,063		—		—		20,063
Cost of surgical services		—		8,780		—		8,780
Medical equipment depreciation		15,043		1,547		—		16,590
Total costs of revenues		65,240		10,327		—		75,567
Gross margin		29,146		6,400		—		35,546
Selling, general and administrative		25,956		4,677		—		30,633
Operating income		3,190		1,723		—		4,913
Equity in earnings of subsidiary		(442)		—		442		—
Interest expense		12,718		532		—		13,250
(Loss) income before income taxes and noncontrolling interest		(9,086)		1,191		(442)		(8,337)
(Benefit) provision for income taxes		(539)		749		—		210
Consolidated net (loss) income		(8,547)		442		(442)		(8,547)
Net income attributable to noncontrolling interest		—		121		—		121
Net (loss) income attributable to Universal Hospital Services, Inc.	$	(8,547)	$	321	$	(442)	$	(8,668)

	Three Months Ended September 30, 2014
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Revenue
Medical equipment solutions	$	67,861	$	—	$	—	$	67,861
Clinical engineering solutions		23,717		—		—		23,717
Surgical services		—		14,887		—		14,887
Total revenues		91,578		14,887		—		106,465
Cost of Revenue
Cost of medical equipment solutions		32,204		—		—		32,204
Cost of clinical engineering solutions		18,670		—		—		18,670
Cost of surgical services		—		7,982		—		7,982
Medical equipment depreciation		16,340		1,426		—		17,766
Total costs of revenues		67,214		9,408		—		76,622
Gross margin		24,364		5,479		—		29,843
Selling, general and administrative		21,467		5,072		—		26,539
Operating income		2,897		407		—		3,304
Equity in loss of subsidiary		111		—		(111)		—
Interest expense		12,726		538		—		13,264
Loss before income taxes and noncontrolling interest		(9,940)		(131)		111		(9,960)
Provision (benefit) for income taxes		245		(20)		—		225
Consolidated net loss		(10,185)		(111)		111		(10,185)
Net income attributable to noncontrolling interest		—		103		—		103
Net loss attributable to Universal Hospital Services, Inc.	$	(10,185)	$	(214)	$	111	$	(10,288)

	Nine Months Ended September 30, 2015
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Revenue
Medical equipment solutions	$	214,154	$	—	$	—	$	214,154
Clinical engineering solutions		74,581		—		—		74,581
Surgical services		—		48,154		—		48,154
Total revenues		288,735		48,154		—		336,889
Cost of Revenue
Cost of medical equipment solutions		92,466		—		—		92,466
Cost of clinical engineering solutions		59,333		—		—		59,333
Cost of surgical services		—		25,681		—		25,681
Medical equipment depreciation		45,712		4,513		—		50,225
Total costs of revenues		197,511		30,194		—		227,705
Gross margin		91,224		17,960		—		109,184
Selling, general and administrative		77,975		13,850		—		91,825
(Gain) on settlement		(5,718)		—		—		(5,718)
Operating income		18,967		4,110		—		23,077
Equity in earnings of subsidiary		(1,201)		—		1,201		—
Interest expense		38,244		1,566		—		39,810
(Loss) income before income taxes and noncontrolling interest		(18,076)		2,544		(1,201)		(16,733)
(Benefit) provision for income taxes		(784)		1,343		—		559
Consolidated net (loss) income		(17,292)		1,201		(1,201)		(17,292)
Net income attributable to noncontrolling interest		—		341		—		341
Net (loss) income attributable to Universal Hospital Services, Inc.	$	(17,292)	$	860	$	(1,201)	$	(17,633)

	Nine Months Ended September 30, 2014
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Revenue
Medical equipment solutions	$	216,771	$	—	$	—	$	216,771
Clinical engineering solutions		68,505		—		—		68,505
Surgical services		—		43,890		—		43,890
Total revenues		285,276		43,890		—		329,166
Cost of Revenue
Cost of medical equipment solutions		97,919		—		—		97,919
Cost of clinical engineering solutions		54,454		—		—		54,454
Cost of surgical services		—		24,418		—		24,418
Medical equipment depreciation		51,843		4,153		—		55,996
Total costs of revenues		204,216		28,571		—		232,787
Gross margin		81,060		15,319		—		96,379
Selling, general and administrative		70,732		14,684		—		85,416
Restructuring, acquisition and integration expenses		1,820		—		—		1,820
Intangible asset impairment charge		34,900		—		—		34,900
Operating (loss) income		(26,392)		635		—		(25,757)
Equity in loss of subsidiary		312		—		(312)		—
Interest expense		38,322		1,600		—		39,922
Loss before income taxes and noncontrolling interest		(65,026)		(965)		312		(65,679)
Benefit for income taxes		(12,579)		(653)		—		(13,232)
Consolidated net loss		(52,447)		(312)		312		(52,447)
Net income attributable to noncontrolling interest		—		364		—		364
Net loss attributable to Universal Hospital Services, Inc.	$	(52,447)	$	(676)	$	312	$	(52,811)

Schedule of Consolidating Statements of Comprehensive Income (Loss)

	Three Months Ended September 30, 2015								Nine Months Ended September 30, 2015
	Parent		Subsidiary						Parent		Subsidiary
	Issuer		Guarantor		Consolidating				Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated		UHS		Surgical Services		Adjustments		Consolidated
Consolidated net (loss) income	$	(8,547)	$	442	$	(442)	$	(8,547)	$	(17,292)	$	1,201	$	(1,201)	$	(17,292)
Other comprehensive income:
Gain on minimum pension liability, net of tax		244		—		—		244		732		—		—		732
Total other comprehensive income		244		—		—		244		732		—		—		732
Comprehensive (loss) income		(8,303)		442		(442)		(8,303)		(16,560)		1,201		(1,201)		(16,560)
Comprehensive income attributable to noncontrolling interest		—		121		—		121		—		341		—		341
Comprehensive (loss) income attributable to Universal Hospital Services, Inc.	$	(8,303)	$	321	$	(442)	$	(8,424)	$	(16,560)	$	860	$	(1,201)	$	(16,901)

	Three Months Ended September 30, 2014								Nine Months Ended September 30, 2014
	Parent		Subsidiary						Parent		Subsidiary
	Issuer		Guarantor		Consolidating				Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated		UHS		Surgical Services		Adjustments		Consolidated
Consolidated net loss	$	(10,185)	$	(111)	$	111	$	(10,185)	$	(52,447)	$	(312)	$	312	$	(52,447)
Total other comprehensive income		—		—		—		—		—		—		—		—
Comprehensive loss		(10,185)		(111)		111		(10,185)		(52,447)		(312)		312		(52,447)
Comprehensive income attributable to noncontrolling interest		—		103		—		103		—		364		—		364
Comprehensive loss attributable to Universal Hospital Services, Inc.	$	(10,185)	$	(214)	$	111	$	(10,288)	$	(52,447)	$	(676)	$	312	$	(52,811)

Schedule of Consolidating Statements of Cash Flows

	Nine Months Ended September 30, 2015
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Cash flows from operating activities:
Consolidated net (loss) income	$	(17,292)	$	1,201	$	(1,201)	$	(17,292)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation		51,931		5,482		—		57,413
Asset impairment charges		2,339		—		—		2,339
Amortization of intangibles, deferred financing costs and bond premium		7,146		2,518		—		9,664
Equity in earnings of subsidiary		(1,201)		—		1,201		—
Provision for doubtful accounts		145		63		—		208
Provision for inventory obsolescence		195		104		—		299
Non-cash share-based compensation expense		1,902		—		—		1,902
Gain on sales and disposals of equipment		(3,404)		(143)		—		(3,547)
Deferred income taxes		2,096		(1,399)		—		697
Changes in operating assets and liabilities:
Accounts receivable		(1,175)		(1,358)		—		(2,533)
Due from affiliates		267		—		(267)		—
Inventories		(269)		(136)		—		(405)
Other operating assets		471		71		—		542
Accounts payable		(238)		833		—		595
Other operating liabilities		(6,615)		(21)		—		(6,636)
Net cash provided by operating activities		36,298		7,215		(267)		43,246
Cash flows from investing activities:
Medical equipment purchases		(35,432)		(3,339)		—		(38,771)
Property and office equipment purchases		(3,132)		(16)		—		(3,148)
Proceeds from disposition of property and equipment		10,578		221		—		10,799
Acquisition		—		(2,600)		—		(2,600)
Net cash used in investing activities		(27,986)		(5,734)		—		(33,720)
Cash flows from financing activities:
Proceeds under senior secured credit facility		104,952		—		—		104,952
Payments under senior secured credit facility		(108,900)		—		—		(108,900)
Payments of principal under capital lease obligations		(4,946)		(810)		—		(5,756)
Distributions to noncontrolling interests		—		(360)		—		(360)
Contributions from new members to limited liability company		—		70		—		70
Dividend and equity distribution payments		(39)		—		—		(39)
Due to affiliates		—		(267)		267		—
Change in book overdrafts		621		(114)		—		507
Net cash used in financing activities		(8,312)		(1,481)		267		(9,526)
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	$	—	$	—	$	—	$	—

	Nine Months Ended September 30, 2014
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Cash flows from operating activities:
Consolidated net loss	$	(52,447)	$	(312)	$	312	$	(52,447)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		59,139		4,981		—		64,120
Asset impairment charges		2,025		—		—		2,025
Intangible asset impairment charge		34,900		—		—		34,900
Amortization of intangibles, deferred financing costs and bond premium		7,877		2,482		—		10,359
Equity in loss of subsidiary		312		—		(312)		—
Provision for doubtful accounts		661		(3)		—		658
Provision for inventory obsolescence		(16)		(11)		—		(27)
Non-cash share-based compensation expense		626		175		—		801
Gain on sales and disposals of equipment		(1,776)		(15)		—		(1,791)
Deferred income taxes		(11,345)		(2,200)		—		(13,545)
Changes in operating assets and liabilities:
Accounts receivable		1,788		(121)		—		1,667
Due from (to) affiliates		(2,529)		2,529		—		—
Inventories		593		(846)		—		(253)
Other operating assets		(2,090)		(47)		—		(2,137)
Accounts payable		498		(277)		—		221
Other operating liabilities		(9,757)		483		—		(9,274)
Net cash provided by operating activities		28,459		6,818		—		35,277
Cash flows from investing activities:
Medical equipment purchases		(40,270)		(4,293)		—		(44,563)
Property and office equipment purchases		(3,420)		(190)		—		(3,610)
Proceeds from disposition of property and equipment		6,919		77		—		6,996
Purchases of noncontrolling interests		—		(46)		—		(46)
Net cash used in investing activities		(36,771)		(4,452)		—		(41,223)
Cash flows from financing activities:
Proceeds under senior secured credit facility		123,400		—		—		123,400
Payments under senior secured credit facility		(107,200)		—		—		(107,200)
Payments of principal under capital lease obligations		(4,198)		(1,001)		—		(5,199)
Distributions to noncontrolling interests		—		(436)		—		(436)
Dividend and equity distribution payments		(73)		—		—		(73)
Change in book overdrafts		(3,617)		(929)		—		(4,546)
Net cash provided by (used in) financing activities		8,312		(2,366)		—		5,946
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	$	—	$	—	$	—	$	—