Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2016

Consolidating Financial Statements

Schedule of Consolidating Balance Sheets

	June 30, 2016
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Assets
Current assets:
Accounts receivable, less allowance for doubtful accounts	$	67,326	$	9,097	$	—	$	76,423
Due from affiliates		30,525		—		(30,525)		—
Inventories		5,266		3,234		—		8,500
Other current assets		6,453		219		—		6,672
Total current assets		109,570		12,550		(30,525)		91,595
Property and equipment:
Medical equipment		544,124		51,511		—		595,635
Property and office equipment		79,155		9,717		—		88,872
Accumulated depreciation		(444,245)		(40,411)		—		(484,656)
Total property and equipment, net		179,034		20,817		—		199,851
Other long-term assets:
Goodwill		283,141		53,454		—		336,595
Investment in subsidiary		55,516		—		(55,516)		—
Other intangibles, net		144,474		12,127		—		156,601
Other		1,289		379		—		1,668
Total assets	$	773,024	$	99,327	$	(86,041)	$	786,310
Liabilities and (Deficit) Equity
Current liabilities:
Current portion of long-term debt	$	3,965	$	1,220	$	—	$	5,185
Book overdrafts		9,227		242		—		9,469
Due to affiliates		—		30,525		(30,525)		—
Accounts payable		22,584		3,105		—		25,689
Accrued compensation		13,097		2,012		—		15,109
Accrued interest		18,650		—		—		18,650
Other accrued expenses		15,789		199		—		15,988
Total current liabilities		83,312		37,303		(30,525)		90,090
Long-term debt, less current portion		680,682		3,491		—		684,173
Pension and other long-term liabilities		11,611		10		—		11,621
Deferred income taxes, net		50,236		2,843		—		53,079
Commitments and contingencies
(Deficit) Equity
Common stock		—		—		—		—
Additional paid-in capital		243,428		60,004		(60,019)		243,413
Accumulated deficit		(283,947)		(4,503)		—		(288,450)
Accumulated loss in subsidiary		(4,503)		—		4,503		—
Accumulated other comprehensive loss		(7,795)		—		—		(7,795)
Total Universal Hospital Services, Inc. (deficit) equity		(52,817)		55,501		(55,516)		(52,832)
Noncontrolling interest		—		179		—		179
Total (deficit) equity		(52,817)		55,680		(55,516)		(52,653)
Total liabilities and (deficit) equity	$	773,024	$	99,327	$	(86,041)	$	786,310

	December 31, 2015
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Assets
Current assets:
Accounts receivable, less allowance for doubtful accounts	$	62,288	$	8,964	$	—	$	71,252
Due from affiliates		29,145		—		(29,145)		—
Inventories		4,533		3,973		—		8,506
Other current assets		5,670		164		—		5,834
Total current assets		101,636		13,101		(29,145)		85,592
Property and equipment:
Medical equipment		541,200		48,891		—		590,091
Property and office equipment		76,436		8,905		—		85,341
Accumulated depreciation		(425,574)		(37,244)		—		(462,818)
Total property and equipment, net		192,062		20,552		—		212,614
Other long-term assets:
Goodwill		283,141		53,454		—		336,595
Investment in subsidiary		54,383		—		(54,383)		—
Other intangibles, net		148,520		13,834		—		162,354
Other		364		56		—		420
Total assets	$	780,106	$	100,997	$	(83,528)	$	797,575
Liabilities and (Deficit) Equity
Current liabilities:
Current portion of long-term debt	$	3,801	$	1,066	$	—	$	4,867
Book overdrafts		5,875		569		—		6,444
Due to affiliates		—		29,145		(29,145)		—
Accounts payable		25,260		5,813		—		31,073
Accrued compensation		21,266		2,334		—		23,600
Accrued interest		18,742		—		—		18,742
Dividend payable		24		—		—		24
Other accrued expenses		13,913		651		—		14,564
Total current liabilities		88,881		39,578		(29,145)		99,314
Long-term debt, less current portion		679,321		3,270		—		682,591
Pension and other long-term liabilities		11,850		19		—		11,869
Deferred income taxes, net		49,437		3,522		—		52,959
Commitments and contingencies
(Deficit) Equity
Common stock		—		—		—		—
Additional paid-in capital		241,848		60,004		(60,019)		241,833
Accumulated deficit		(277,430)		(5,636)		—		(283,066)
Accumulated loss in subsidiary		(5,636)		—		5,636		—
Accumulated other comprehensive loss		(8,165)		—		—		(8,165)
Total Universal Hospital Services, Inc. (deficit) equity		(49,383)		54,368		(54,383)		(49,398)
Noncontrolling interest		—		240		—		240
Total (deficit) equity		(49,383)		54,608		(54,383)		(49,158)
Total liabilities and (deficit) equity	$	780,106	$	100,997	$	(83,528)	$	797,575

Schedule of Consolidating Statements of Operations

	Three Months Ended June 30, 2016
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Revenue
Medical equipment solutions	$	74,940	$	—	$	—	$	74,940
Clinical engineering solutions		25,464		—		—		25,464
Surgical services		—		17,214		—		17,214
Total revenues		100,404		17,214		—		117,618
Cost of Revenue
Cost of medical equipment solutions		33,213		—		—		33,213
Cost of clinical engineering solutions		20,644		—		—		20,644
Cost of surgical services		—		8,956		—		8,956
Medical equipment depreciation		14,628		1,449		—		16,077
Total costs of revenues		68,485		10,405		—		78,890
Gross margin		31,919		6,809		—		38,728
Selling, general and administrative		24,123		4,675		—		28,798
(Gain) on settlement		(2,750)		—		—		(2,750)
Operating income		10,546		2,134		—		12,680
Equity in earnings of subsidiary		(901)		—		901		—
Interest expense		12,528		533		—		13,061
(Loss) income before income taxes and noncontrolling interest		(1,081)		1,601		(901)		(381)
(Benefit) provision for income taxes		(472)		700		—		228
Consolidated net (loss) income		(609)		901		(901)		(609)
Net income attributable to noncontrolling interest		—		75		—		75
Net (loss) income attributable to Universal Hospital Services, Inc.	$	(609)	$	826	$	(901)	$	(684)

	Three Months Ended June 30, 2015
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Revenue
Medical equipment solutions	$	71,084	$	—	$	—	$	71,084
Clinical engineering solutions		24,784		—		—		24,784
Surgical services		—		16,421		—		16,421
Total revenues		95,868		16,421		—		112,289
Cost of Revenue
Cost of medical equipment solutions		31,053		—		—		31,053
Cost of clinical engineering solutions		20,041		—		—		20,041
Cost of surgical services		—		8,722		—		8,722
Medical equipment depreciation		14,009		1,492		—		15,501
Total costs of revenues		65,103		10,214		—		75,317
Gross margin		30,765		6,207		—		36,972
Selling, general and administrative		26,436		4,602		—		31,038
(Gain) on settlement		(5,718)		—		—		(5,718)
Operating income		10,047		1,605		—		11,652
Equity in earnings of subsidiary		(573)		—		573		—
Interest expense		12,734		515		—		13,249
(Loss) income before income taxes and noncontrolling interest		(2,114)		1,090		(573)		(1,597)
(Benefit) provision for income taxes		(335)		517		—		182
Consolidated net (loss) income		(1,779)		573		(573)		(1,779)
Net income attributable to noncontrolling interest		—		95		—		95
Net (loss) income attributable to Universal Hospital Services, Inc.	$	(1,779)	$	478	$	(573)	$	(1,874)

	Six Months Ended June 30, 2016
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Revenue
Medical equipment solutions	$	155,170	$	—	$	—	$	155,170
Clinical engineering solutions		51,042		—		—		51,042
Surgical services		—		33,532		—		33,532
Total revenues		206,212		33,532		—		239,744
Cost of Revenue
Cost of medical equipment solutions		71,494		—		—		71,494
Cost of clinical engineering solutions		40,668		—		—		40,668
Cost of surgical services		—		17,722		—		17,722
Medical equipment depreciation		28,381		2,866		—		31,247
Total costs of revenues		140,543		20,588		—		161,131
Gross margin		65,669		12,944		—		78,613
Selling, general and administrative		50,459		9,636		—		60,095
(Gain) on settlement		(2,750)		—		—		(2,750)
Operating income		17,960		3,308		—		21,268
Equity in earnings of subsidiary		(1,268)		—		1,268		—
Interest expense		25,053		1,077		—		26,130
(Loss) income before income taxes and noncontrolling interest		(5,825)		2,231		(1,268)		(4,862)
(Benefit) provision for income taxes		(576)		963		—		387
Consolidated net (loss) income		(5,249)		1,268		(1,268)		(5,249)
Net income attributable to noncontrolling interest		—		135		—		135
Net (loss) income attributable to Universal Hospital Services, Inc.	$	(5,249)	$	1,133	$	(1,268)	$	(5,384)

	Six Months Ended June 30, 2015
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Revenue
Medical equipment solutions	$	145,169	$	—	$	—	$	145,169
Clinical engineering solutions		49,179		—		—		49,179
Surgical services		—		31,427		—		31,427
Total revenues		194,348		31,427		—		225,775
Cost of Revenue
Cost of medical equipment solutions		62,331		—		—		62,331
Cost of clinical engineering solutions		39,271		—		—		39,271
Cost of surgical services		—		16,902		—		16,902
Medical equipment depreciation		30,669		2,966		—		33,635
Total costs of revenues		132,271		19,868		—		152,139
Gross margin		62,077		11,559		—		73,636
Selling, general and administrative		52,018		9,171		—		61,189
(Gain) on settlement		(5,718)		—		—		(5,718)
Operating income		15,777		2,388		—		18,165
Equity in earnings of subsidiary		(759)		—		759		—
Interest expense		25,525		1,034		—		26,559
(Loss) income before income taxes and noncontrolling interest		(8,989)		1,354		(759)		(8,394)
(Benefit) provision for income taxes		(244)		595		—		351
Consolidated net (loss) income		(8,745)		759		(759)		(8,745)
Net income attributable to noncontrolling interest		—		220		—		220
Net (loss) income attributable to Universal Hospital Services, Inc.	$	(8,745)	$	539	$	(759)	$	(8,965)

Schedule of Consolidating Statements of Comprehensive Income (Loss)

	Three Months Ended June 30, 2016								Six Months Ended June 30, 2016
	Parent		Subsidiary						Parent		Subsidiary
	Issuer		Guarantor		Consolidating				Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated		UHS		Surgical Services		Adjustments		Consolidated
Consolidated net (loss) income	$	(609)	$	901	$	(901)	$	(609)	$	(5,249)	$	1,268	$	(1,268)	$	(5,249)
Other comprehensive income:
Gain on minimum pension liability, net of tax		184		—		—		184		370		—		—		370
Total other comprehensive income		184		—		—		184		370		—		—		370
Comprehensive (loss) income		(425)		901		(901)		(425)		(4,879)		1,268		(1,268)		(4,879)
Comprehensive income attributable to noncontrolling interest		—		75		—		75		—		135		—		135
Comprehensive (loss) income attributable to Universal Hospital Services, Inc.	$	(425)	$	826	$	(901)	$	(500)	$	(4,879)	$	1,133	$	(1,268)	$	(5,014)

	Three Months Ended June 30, 2015								Six Months Ended June 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	$	(1,779)	$	573	$	(573)	$	(1,779)	$	(8,745)	$	759	$	(759)	$	(8,745)
Other comprehensive income:
Gain on minimum pension liability, net of tax		488		—		—		488		488		—		—		488
Total other comprehensive income		488		—		—		488		488		—		—		488
Comprehensive (loss) income		(1,291)		573		(573)		(1,291)		(8,257)		759		(759)		(8,257)
Comprehensive income attributable to noncontrolling interest		—		95		—		95		—		220		—		220
Comprehensive (loss) income attributable to Universal Hospital Services, Inc.	$	(1,291)	$	478	$	(573)	$	(1,386)	$	(8,257)	$	539	$	(759)	$	(8,477)

Schedule of Consolidating Statements of Cash Flows

	Six Months Ended June 30, 2016
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Cash flows from operating activities:
Consolidated net (loss) income	$	(5,249)	$	1,268	$	(1,268)	$	(5,249)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation		33,059		3,555		—		36,614
Amortization of intangibles, deferred financing costs and bond premium		4,304		1,707		—		6,011
Equity in earnings of subsidiary		(1,268)		—		1,268		—
Provision for doubtful accounts		72		58		—		130
Provision for inventory obsolescence		126		(40)		—		86
Non-cash share-based compensation expense		1,514		—		—		1,514
Gain on sales and disposals of equipment		(1,903)		40		—		(1,863)
Deferred income taxes		799		(679)		—		120
Interest on note receivable		(3)		—		—		(3)
Changes in operating assets and liabilities:
Accounts receivable		(5,110)		(191)		—		(5,301)
Due from affiliates		(1,380)		—		1,380		—
Inventories		(859)		779		—		(80)
Other operating assets		(722)		(378)		—		(1,100)
Accounts payable		(522)		(816)		—		(1,338)
Other operating liabilities		(6,254)		(283)		—		(6,537)
Net cash provided by operating activities		16,604		5,020		1,380		23,004
Cash flows from investing activities:
Medical equipment purchases		(22,647)		(4,765)		—		(27,412)
Property and office equipment purchases		(2,070)		(13)		—		(2,083)
Proceeds from disposition of property and equipment		6,940		4		—		6,944
Issuance of note receivable from officer		(983)		—		—		(983)
Net cash used in investing activities		(18,760)		(4,774)		—		(23,534)
Cash flows from financing activities:
Proceeds under senior secured credit facility		75,700		—		—		75,700
Payments under senior secured credit facility		(74,500)		—		—		(74,500)
Payments of principal under capital lease obligations		(2,341)		(603)		—		(2,944)
Payments of deferred financing costs		(97)		—		—		(97)
Holdback payment related to acquisition		—		(500)		—		(500)
Distributions to noncontrolling interests		—		(196)		—		(196)
Dividend and equity distribution payments		(24)		—		—		(24)
Proceeds from exercise of parent company stock options		66		—		—		66
Due to affiliates		—		1,380		(1,380)		—
Change in book overdrafts		3,352		(327)		—		3,025
Net cash provided by (used in) financing activities		2,156		(246)		(1,380)		530
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	$	—	$	—	$	—	$	—

	Six Months Ended June 30, 2015
	Parent		Subsidiary
	Issuer		Guarantor		Consolidating
	UHS		Surgical Services		Adjustments		Consolidated
Cash flows from operating activities:
Consolidated net (loss) income	$	(8,745)	$	759	$	(759)	$	(8,745)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation		34,717		3,598		—		38,315
Asset impairment charges		1,703		—		—		1,703
Amortization of intangibles, deferred financing costs and bond premium		4,890		1,642		—		6,532
Equity in earnings of subsidiary		(759)		—		759		—
Provision for doubtful accounts		28		26		—		54
Provision for inventory obsolescence		210		15		—		225
Non-cash share-based compensation expense		1,140		—		—		1,140
Gain on sales and disposals of equipment		(2,436)		(86)		—		(2,522)
Deferred income taxes		1,098		(990)		—		108
Changes in operating assets and liabilities:
Accounts receivable		(3,213)		(767)		—		(3,980)
Due from affiliates		(1,196)		—		1,196		—
Inventories		(410)		17		—		(393)
Other operating assets		610		59		—		669
Accounts payable		1,148		852		—		2,000
Other operating liabilities		5,788		(669)		—		5,119
Net cash provided by operating activities		34,573		4,456		1,196		40,225
Cash flows from investing activities:
Medical equipment purchases		(25,308)		(2,129)		—		(27,437)
Property and office equipment purchases		(2,417)		(16)		—		(2,433)
Proceeds from disposition of property and equipment		9,290		136		—		9,426
Acquisition		—		(2,600)		—		(2,600)
Net cash used in investing activities		(18,435)		(4,609)		—		(23,044)
Cash flows from financing activities:
Proceeds under senior secured credit facility		63,900		—		—		63,900
Payments under senior secured credit facility		(75,900)		—		—		(75,900)
Payments of principal under capital lease obligations		(3,635)		(519)		—		(4,154)
Distributions to noncontrolling interests		—		(240)		—		(240)
Contributions from new members to limited liability company		—		70		—		70
Dividend and equity distribution payments		(39)		—		—		(39)
Due to affiliates		—		1,196		(1,196)		—
Change in book overdrafts		(464)		(354)		—		(818)
Net cash (used in) provided by financing activities		(16,138)		153		(1,196)		(17,181)
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	$	—	$	—	$	—	$	—