Business Wire | Aug 12, 2021 04:10PM EDT

Agiliti Announces Financial Results for Second Quarter 2021 and Raises Full Year 2021 Guidance

Aug. 12, 2021

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 12, 2021--Agiliti, Inc. (NYSE: AGTI) ("Agiliti"), a nationwide provider of healthcare technology management and service solutions to the United States healthcare industry, today announced its financial results for the quarter ended June 30, 2021, and raised its full-year guidance for 2021.

Second Quarter 2021 Highlights

* Revenue growth of 35 percent year-over-year to $251 million * Net loss of $5.2 million, down $6.0 million from the prior year period, and diluted loss per share of $0.04, down $0.05 per share from the prior year period * Adjusted EBITDA1 growth of 35 percent year-over-year to $78 million, and adjusted diluted earnings per share of $0.23, up $0.09 per share from the prior year period * Leverage ratio1 further reduced to 3.2x * Raised full year 2021 guidance with expected revenue of $965-980 million and Adjusted EBITDA of $280-290 million2

"Our strong results from Q2 and our increased guidance for the year reflect our confidence in this team's ability to consistently execute on our strategy," said Tom Leonard, Chief Executive Officer. "We remain focused on meeting the needs of our customers-helping them navigate the ongoing impact of COVID-19 while also supporting their long-term operational objectives. Agiliti holds a unique and essential role supporting our nation's healthcare system, and our strong track record and performance further demonstrate that the services we provide are always necessary and in high demand."

Second Quarter and First Half 2021 Financial Results

Total revenue for the three months ended June 30, 2021, was $250.5 million, representing a 35.3 percent increase from total revenue of $185.2 million for the same period of 2020. Total revenue for the six months ended June 30, 2021, was $485.8 million, representing a 33.3 percent increase from total revenue of $364.4 million for the same period of 2020.

Net loss for the three months ended June 30, 2021, was $5.2 million compared to a net income of $0.8 million for the same period of 2020. Net income for the six months ended June 30, 2021, was $4.4 million, representing a $16.2 million increase compared to a net loss of $11.8 million for the same period of 2020.

Adjusted EBITDA for the three months ended June 30, 2021, was $77.7 million, a 35.3 percent increase from Adjusted EBITDA of $57.4 million for the same period of 2020. Adjusted EBITDA for the six months ended June 30, 2021, was $163.9 million, a 54.4 percent increase from Adjusted EBITDA of $106.2 million for same period of 2020.

Subsequent Event

On August 10, 2021, Agiliti and the U.S. Department of Health and Human Services ("HHS") and the Assistant Secretary for Preparedness and Response extended Agiliti's agreement for the comprehensive maintenance and management services of medical ventilator equipment for a period of 60 days from the initial contract expiration date of July 27, 2021. The Company expects that HHS will issue a public request for proposal and make a new contract award prior to the September 27, 2021 expiration of the extension period. Agiliti intends to compete for the new contract award.

2021 Financial Outlook

For the full year 2021, the Company now expects revenue to be in the range of $965 million to $980 million, an increase from the prior range of $950 million to $975 million, representing growth of 25 to 27 percent. In addition, the Company now expects Adjusted EBITDA to be in the range of $280 million to $290 million, an increase from the prior range of $275 million to $285 million, representing growth of 20 to 24 percent. Consistent with its previously reported guidance, the Company expects capital expenditures for 2021 to be in the range of $65 million to $70 million.

^1 Non-GAAP Measures. See further discussion below.

^2 With regard to the non-GAAP Adjusted EBITDA guidance provided above, areconciliation to GAAP net income has not been provided as the quantificationof certain items included in the calculation of GAAP net income cannot becalculated or predicted at this time without unreasonable efforts. For example,the non-GAAP adjustment for stock-based compensation expense requiresadditional inputs such as number of shares granted and market price that arenot currently ascertainable, and the non-GAAP adjustment for certain reservesand expenses depends on the timing and magnitude of these expenses and cannotbe accurately forecasted. For the same reasons, the Company is unable toaddress the probable significance of the unavailable information, which couldhave a potentially unpredictable, and potentially significant, impact on itsfuture GAAP financial results.

Conference Call Information

Agiliti will hold a conference call to discuss its 2021 second quarter results on Thursday, August 12, at 5 p.m. Eastern Time (4 p.m. Central Time).

The conference call can be accessed live over the phone by dialing 1-877-407-0792 or for international callers, 1-201-689-8263. A replay will be available two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13721390. The replay will be available until August 19, 2021.

Interested investors and other parties may view a simultaneous webcast of the conference call by visiting the Agiliti Investor Relations site at https://investors.agilitihealth.com. The webcast replay will be available for a limited time shortly following the call.

About Agiliti

Agiliti is an essential service provider to the U.S. healthcare industry with solutions that help support a more efficient, safe and sustainable healthcare delivery system. Agiliti serves more than 7,000 national, regional and local acute care and alternate site providers across the U.S. For more than eight decades, Agiliti has delivered medical equipment management and service solutions that help healthcare providers reduce costs, increase operating efficiencies and support optimal patient outcomes.

Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Agiliti, Inc., believes statements in this presentation looking forward in time, including preliminary results, 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: our history of net losses and substantial interest expense; our need for substantial cash to operate and expand our business as planned; our substantial outstanding debt and debt service obligations; restrictions imposed by the terms of our debt; a decrease in the number of patients our customers are serving; our ability to effect change in the manner in which health care providers traditionally procure medical equipment; the absence of long-term commitments with customers; our 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; the effect of prolonged negative changes in domestic and global economic conditions; difficulties or delays in our continued expansion into certain of our businesses/geographic markets and developments of new businesses/geographic markets; additional credit risks in increasing business with home care providers and nursing homes, impacts of equipment product recalls or obsolescence; increases in vendor costs that cannot be passed through to our customers; and other Risk Factors as detailed in our final prospectus filed with the Securities and Exchange Commission ("SEC"), on April 26, 2021, and our quarterly reports on Form 10-Q.

Agiliti, Inc. and SubsidiariesCondensed Consolidated Statements of Operations(in thousands, except share and per share information)(unaudited) Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

Revenue $ 250,543 $ 185,161 $ 485,788 $ 364,400

Cost of revenue 151,435 117,691 285,358 239,124

Gross margin 99,108 67,470 200,430 125,276

Selling, general 81,056 52,540 150,279 109,104 andadministrativeOperating income 18,052 14,930 50,151 16,172

Loss on 10,116 - 10,116 - extinguishmentof debtInterest expense 11,713 15,156 29,733 32,974

(Loss) incomebefore income (3,777 ) (226 ) 10,302 (16,802 )taxes andnoncontrollinginterestIncome tax 1,394 (1,077 ) 5,890 (5,105 )expense(benefit)Consolidated net (5,171 ) 851 4,412 (11,697 )(loss) incomeNet incomeattributable to 27 29 57 103 noncontrollinginterestNet (loss)income (5,198 ) 822 4,355 (11,800 )attributable to $ $ $ $Agiliti, Inc.and Subsidiaries Basic (loss) $ (0.04 ) $ 0.01 $ 0.04 $ (0.12 )income per shareDiluted (loss) $ (0.04 ) $ 0.01 $ 0.04 $ (0.12 )income per share Weighted-averagecommon sharesoutstanding:Basic 122,908,065 98,983,296 111,071,756 98,969,079

Diluted 122,908,065 103,694,384 118,760,837 98,969,079

Agiliti, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands, except share and per share information)(unaudited)June 30,

December 31,

2021

2020

AssetsCurrent assets:Cash and cash equivalents$103,670

$206,505

Accounts receivable, less allowance for doubtful accounts of $2,064 at June 30, 2021 and $1,993 at December 31, 2020164,975

154,625

Inventories32,060

27,062

Other current assets11,378

14,175

Total current assets312,083

402,367

Property and equipment:Medical equipment303,160

285,723

Property and office equipment131,562

112,646

Accumulated depreciation(232,776

)

(183,953

)

Total property and equipment, net201,946

214,416

Other long-term assets:Goodwill1,122,530

817,113

Operating lease right-of-use assets55,048

51,214

Other intangibles, net548,716

402,095

Other18,371

16,151

Total assets$2,258,694

$1,903,356

Liabilities and EquityCurrent liabilities:Current portion of long-term debt$15,421

$16,044

Current portion of operating lease liability15,364

14,155

Current portion of obligation under tax receivable agreement15,613

15,572

Accounts payable49,965

37,215

Accrued compensation33,726

38,671

Accrued interest2,970

6,347

Deferred revenue6,549

8,800

Other accrued expenses25,315

22,727

Total current liabilities164,923

159,531

Long-term debt, less current portion1,028,502

1,145,055

Obligation under tax receivable agreement, pension and other long-term liabilities57,030

53,794

Operating lease liability, less current portion44,130

40,283

Deferred income taxes, net102,110

62,748

Commitments and contingencies (Note 11)EquityCommon stock, $0.0001 par value; 350,000,000 shares authorized; 130,356,920 and 98,983,296 shares issued and outstanding at June 30, 2021 and December 31, 202013

10

Additional paid-in capital928,623

513,902

Accumulated deficit(64,137

)

(68,492

)

Accumulated other comprehensive loss(2,618

)

(3,619

)

Total Agiliti, Inc. and Subsidiaries equity861,881

441,801

Noncontrolling interest118

144

Total equity861,999

441,945

Total liabilities and equity$2,258,694

$1,903,356

Agiliti, Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands, except share and per share information)(unaudited) June 30, December 31,

2021 2020

AssetsCurrent assets:Cash and cash equivalents $ 103,670 $ 206,505

Accounts receivable, less allowance for doubtful 164,975 154,625 accounts of $2,064 at June 30, 2021 and $1,993at December 31, 2020Inventories 32,060 27,062

Other current assets 11,378 14,175

Total current assets 312,083 402,367

Property and equipment:Medical equipment 303,160 285,723

Property and office equipment 131,562 112,646

Accumulated depreciation (232,776 ) (183,953 )

Total property and equipment, net 201,946 214,416

Other long-term assets:Goodwill 1,122,530 817,113

Operating lease right-of-use assets 55,048 51,214

Other intangibles, net 548,716 402,095

Other 18,371 16,151

Total assets $ 2,258,694 $ 1,903,356

Liabilities and EquityCurrent liabilities:Current portion of long-term debt $ 15,421 $ 16,044

Current portion of operating lease liability 15,364 14,155

Current portion of obligation under tax 15,613 15,572 receivable agreementAccounts payable 49,965 37,215

Accrued compensation 33,726 38,671

Accrued interest 2,970 6,347

Deferred revenue 6,549 8,800

Other accrued expenses 25,315 22,727

Total current liabilities 164,923 159,531

Long-term debt, less current portion 1,028,502 1,145,055

Obligation under tax receivable agreement, 57,030 53,794 pension and other long-term liabilitiesOperating lease liability, less current portion 44,130 40,283

Deferred income taxes, net 102,110 62,748

Commitments and contingencies (Note 11)EquityCommon stock, $0.0001 par value; 350,000,000shares authorized; 130,356,920 and 98,983,296 13 10 shares issued and outstanding at June 30, 2021and December 31, 2020Additional paid-in capital 928,623 513,902

Accumulated deficit (64,137 ) (68,492 )

Accumulated other comprehensive loss (2,618 ) (3,619 )

Total Agiliti, Inc. and Subsidiaries equity 861,881 441,801

Noncontrolling interest 118 144

Total equity 861,999 441,945

Total liabilities and equity $ 2,258,694 $ 1,903,356

Agiliti, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(in thousands)(unaudited)Six Months Ended

June 30,

2021

2020

Cash flows from operating activities:Consolidated net income (loss)$4,412

$(11,697

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation52,884

47,916

Amortization40,955

36,025

Remeasurement of tax receivable agreement4,345

-

Loss on extinguishment of debt7,716

-

Provision for doubtful accounts573

1,179

Provision for inventory obsolescence2,226

382

Non-cash share-based compensation expense5,766

4,451

Gain on sales and disposals of equipment(840

)

(448

)

Deferred income taxes4,694

(5,297

)

Changes in operating assets and liabilities:Accounts receivable6,047

(19,805

)

Inventories(1,414

)

(2,748

)

Other operating assets(412

)

342

Accounts payable5,352

(125

)

Other operating liabilities(24,796

)

10,271

Net cash provided by operating activities107,508

60,446

Cash flows from investing activities:Medical equipment purchases(16,269

)

(16,557

)

Property and office equipment purchases(10,612

)

(8,511

)

Proceeds from disposition of property and equipment2,013

1,011

Acquisitions, net of cash acquired(450,198

)

(89,706

)

Net cash used in investing activities(475,066

)

(113,763

)

Cash flows from financing activities:Proceeds under revolver35,000

189,500

Payments under revolver(35,000

)

(173,000

)

Proceeds under term loan198,052

124,844

Payments under term loan(324,805

)

(3,930

)

Payments of principal under finance lease liability(4,270

)

(3,813

)

Payments of deferred financing costs(229

)

(199

)

Payments under tax receivable agreement(748

)

-

Distributions to noncontrolling interests(83

)

(206

)

Proceeds from exercise of stock options373

-

Dividend and equity distribution payment(924

)

(1,132

)

Proceeds from issuance of common stock401,441

-

Stock issuance costs(4,084

)

Shares forfeited for taxes-

(145

)

Change in book overdrafts-

(1,771

)

Net cash provided by financing activities264,723

130,148

Net change in cash and cash equivalents(102,835

)

76,831

Cash and cash equivalents at the beginning of period206,505

-

Cash and cash equivalents at the end of period$103,670

$76,831

Supplemental cash flow information:Interest paid$31,017

$27,884

Income taxes paid1,541

415

Agiliti, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(in thousands)(unaudited) Six Months Ended

June 30,

2021 2020

Cash flows from operating activities:Consolidated net income (loss) $ 4,412 $ (11,697 )

Adjustments to reconcile net income (loss) to netcash provided by operating activities:Depreciation 52,884 47,916

Amortization 40,955 36,025

Remeasurement of tax receivable agreement 4,345 -

Loss on extinguishment of debt 7,716 -

Provision for doubtful accounts 573 1,179

Provision for inventory obsolescence 2,226 382

Non-cash share-based compensation expense 5,766 4,451

Gain on sales and disposals of equipment (840 ) (448 )

Deferred income taxes 4,694 (5,297 )

Changes in operating assets and liabilities:Accounts receivable 6,047 (19,805 )

Inventories (1,414 ) (2,748 )

Other operating assets (412 ) 342

Accounts payable 5,352 (125 )

Other operating liabilities (24,796 ) 10,271

Net cash provided by operating activities 107,508 60,446

Cash flows from investing activities:Medical equipment purchases (16,269 ) (16,557 )

Property and office equipment purchases (10,612 ) (8,511 )

Proceeds from disposition of property and 2,013 1,011 equipmentAcquisitions, net of cash acquired (450,198 ) (89,706 )

Net cash used in investing activities (475,066 ) (113,763 )

Cash flows from financing activities:Proceeds under revolver 35,000 189,500

Payments under revolver (35,000 ) (173,000 )

Proceeds under term loan 198,052 124,844

Payments under term loan (324,805 ) (3,930 )

Payments of principal under finance lease (4,270 ) (3,813 )liabilityPayments of deferred financing costs (229 ) (199 )

Payments under tax receivable agreement (748 ) -

Distributions to noncontrolling interests (83 ) (206 )

Proceeds from exercise of stock options 373 -

Dividend and equity distribution payment (924 ) (1,132 )

Proceeds from issuance of common stock 401,441 -

Stock issuance costs (4,084 )

Shares forfeited for taxes - (145 )

Change in book overdrafts - (1,771 )

Net cash provided by financing activities 264,723 130,148

Net change in cash and cash equivalents (102,835 ) 76,831

Cash and cash equivalents at the beginning of 206,505 - periodCash and cash equivalents at the end of period $ 103,670 $ 76,831

Supplemental cash flow information:Interest paid $ 31,017 $ 27,884

Income taxes paid 1,541 415

Agiliti, Inc. and SubsidiariesAdjusted EBITDA(unaudited)Three Months Ended

Six Months Ended

June 30,

June 30,

(in thousands)2021

2020

2021

2020

Net income (loss) attributable to Agiliti, Inc. and Subsidiaries$(5,198

)

$822

$4,355

$(11,800

)

Interest expense11,713

15,156

29,733

32,974

Income tax expense (benefit)1,394

(1,077

)

5,890

(5,105

)

Depreciation and amortization48,250

41,894

91,814

82,060

EBITDA56,159

56,795

131,792

98,129

Non-cash share-based compensation expense3,355

2,068

5,766

4,451

Management and other expenses (1)7,064

(1,100

)

7,626

3,010

Transaction costs (2)801

(327

)

4,252

562

Tax receivable agreement remeasurement197

-

4,345

-

Loss on extinguishment of debt (3)10,116

-

10,116

-

Adjusted EBITDA$77,692

$57,436

$163,897

$106,152

Agiliti, Inc. and SubsidiariesAdjusted EBITDA(unaudited) Three Months Ended Six Months Ended

June 30, June 30,

(in thousands) 2021 2020 2021 2020

Net income (loss) (5,198 ) 822 4,355 (11,800 )attributable to Agiliti, $ $ $ $Inc. and SubsidiariesInterest expense 11,713 15,156 29,733 32,974

Income tax expense (benefit) 1,394 (1,077 ) 5,890 (5,105 )

Depreciation and 48,250 41,894 91,814 82,060 amortizationEBITDA 56,159 56,795 131,792 98,129

Non-cash share-based 3,355 2,068 5,766 4,451 compensation expenseManagement and other 7,064 (1,100 ) 7,626 3,010 expenses (1)Transaction costs (2) 801 (327 ) 4,252 562

Tax receivable agreement 197 - 4,345 - remeasurementLoss on extinguishment of 10,116 - 10,116 - debt (3)Adjusted EBITDA $ 77,692 $ 57,436 $ 163,897 $ 106,152

(1) Management and other expenses represent (a) management fees and buyout termination fee under the Advisory Services Agreement, which was subsequently terminated in connection with the initial public offering and (b) employee related non-recurring expenses.

(2) Transaction costs represent costs associated with potential mergers and acquisitions and are primarily related to the Northfield Acquisition for the six months ended June 30, 2021.

(3) Loss on extinguishment of debt consists of the write-off of the unamortized deferred financing costs and debt discount and an additional 1% redemption price related to the repayment of our Second Lien Term Loan and the write-off of the unamortized deferred financing costs related to the amendment of our Revolving Credit Facility.

EBITDA is defined as earnings attributable to Agiliti, Inc. before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding non-cash shared-based compensation expense, management fees and other non-recurring gains, expenses or losses, transaction costs, remeasurement of the tax receivable agreement and loss on extinguishment of debt. In addition to using EBITDA and Adjusted EBITDA internally as measures of operational performance, we disclose them externally to assist analysts, investors and lenders in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. We believe the investment community frequently uses EBITDA and Adjusted EBITDA in the evaluation of similarly situated companies. Adjusted EBITDA is also used by the Company as a factor to determine the total amount of incentive compensation to be awarded to executive officers and other employees. EBITDA and Adjusted EBITDA, however, are not measures of financial performance under accounting principles generally accepted in the United States of America ("GAAP") and should not be considered as alternatives to, or more meaningful than, net income as measures of operating performance or to cash flows from operating, investing or financing activities or as measures of liquidity. Since EBITDA and Adjusted EBITDA are not measures determined in accordance with GAAP and are thus susceptible to varying interpretations and calculations, EBITDA and Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. EBITDA and Adjusted EBITDA do not represent amounts of funds that are available for management's discretionary use. EBITDA and Adjusted EBITDA presented may not be the same as EBITDA and Adjusted EBITDA calculations as defined in the First Lien Credit Facilities.

(1) Management and other expenses represent (a) management fees and buyouttermination fee under the Advisory Services Agreement, which was subsequentlyterminated in connection with the initial public offering and (b) employeerelated non-recurring expenses.

(2) Transaction costs represent costs associated with potential mergers andacquisitions and are primarily related to the Northfield Acquisition for thesix months ended June 30, 2021.

(3) Loss on extinguishment of debt consists of the write-off of the unamortizeddeferred financing costs and debt discount and an additional 1% redemptionprice related to the repayment of our Second Lien Term Loan and the write-offof the unamortized deferred financing costs related to the amendment of ourRevolving Credit Facility.

EBITDA is defined as earnings attributable to Agiliti, Inc. before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding non-cash shared-based compensation expense, management fees and other non-recurring gains, expenses or losses, transaction costs, remeasurement of the tax receivable agreement and loss on extinguishment of debt. In addition to using EBITDA and Adjusted EBITDA internally as measures of operational performance, we disclose them externally to assist analysts, investors and lenders in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. We believe the investment community frequently uses EBITDA and Adjusted EBITDA in the evaluation of similarly situated companies. Adjusted EBITDA is also used by the Company as a factor to determine the total amount of incentive compensation to be awarded to executive officers and other employees. EBITDA and Adjusted EBITDA, however, are not measures of financial performance under accounting principles generally accepted in the United States of America ("GAAP") and should not be considered as alternatives to, or more meaningful than, net income as measures of operating performance or to cash flows from operating, investing or financing activities or as measures of liquidity. Since EBITDA and Adjusted EBITDA are not measures determined in accordance with GAAP and are thus susceptible to varying interpretations and calculations, EBITDA and Adjusted EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. EBITDA and Adjusted EBITDA do not represent amounts of funds that are available for management's discretionary use. EBITDA and Adjusted EBITDA presented may not be the same as EBITDA and Adjusted EBITDA calculations as defined in the First Lien Credit Facilities.

Agiliti, Inc. and SubsidiariesNon-GAAP Financial Measure: Adjusted EPS(unaudited) Three months ended Six months ended

June 30, June 30,

(in thousands) 2021 2020 2021 2020

Net income (loss) attributable $ ) $ 822 $ 4,355 $ )to Agiliti, Inc. and (5,198 (11,800SubsidiariesAmortization 21,582 17,356 38,930 34,144

Non-cash share-based 3,355 2,068 5,766 4,451 compensation expenseManagement & other expenses (1) 7,064 (1,100 ) 7,626 3,010

Transaction costs (2) 801 (327 ) 4,252 562

Tax receivable agreement 197 - 4,345 - remeasurement(3)Loss on extinguishment of debt 10,116 - 10,116 - (4)Income tax benefit associated (8,267 ) (4,571 ) (13,728 ) (10,794 )with pre-tax adjustments (5) $ $ $ $ Adjusted Net Income 29,650 14,248 61,662 19,573

Weighted average shares 130,699 103,694 118,761 103,680 outstanding - dilutedAdjusted EPS $ 0.23 $ 0.14 $ 0.52 $ 0.19

(1) Represents management fees and buyout termination fee under the Advisory Services Agreement, which was subsequently terminated in connection with the initial public offering and employee related non-recurring expenses. (2) Represents costs associated with potential mergers and acquisitions and are primarily related to the Northfield Acquisition for the six months ended June 30, 2021. (3) Represents the change in the fair value of the tax receivable agreement. (4) Loss on extinguishment of debt consists of the write-off of the unamortized deferred financing costs and debt discount and an additional 1% redemption price related to the repayment of our Second Lien Term Loan and the write-off of the unamortized deferred financing costs related to the amendment of our Revolving Credit Facility. (5) Represents the tax benefit or provision associated with the reconciling items between net income (loss) and Adjusted Net Income. To determine the aggregate tax effect of the reconciling items, we utilized statutory income tax rates ranging from 0% to 26%, depending upon the applicable jurisdictions of each adjustment.

Agiliti, Inc. and SubsidiariesNon-GAAP Financial Measure: Leverage(unaudited) June 30,

(in millions) 2021

Term Loan B (due 2026) $ 1,037.4

Consolidated Capital Leases 24.6

Less: Deferred Financing Fees (18.0 )

Debt $ 1,044.0

Less: Cash (103.7 )

Net Debt $ 940.3

LTM Adjusted EBITDA $ 291.9

Leverage 3.2x View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005556/en/

CONTACT: Kate Kaiser Corporate Communication and Investor Relations kate.kaiser@agilitihealth.com