# EDGAR Filing Document

**Accession Number:** 0001749704
**File Stem:** 0001749704-23-000007
**Filing Date:** 2023-3
**Character Count:** 30760
**Document Hash:** b126fc9325b6894979404f0d3a53cfb4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001749704-23-000007.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001749704-23-000007

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230307

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AGILITI, INC. \DE
- **CENTRAL INDEX KEY:** 0001749704
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MISCELLANEOUS EQUIPMENT RENTAL & LEASING [7350]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40361
- **FILM NUMBER:** 23712693

**BUSINESS ADDRESS:**
- **STREET 1:** 11095 VIKING DRIVE, SUITE 300
- **CITY:** EDEN PRAIRIE
- **STATE:** MN
- **ZIP:** 55344
- **BUSINESS PHONE:** 952-893-3200

**MAIL ADDRESS:**
- **STREET 1:** 11095 VIKING DRIVE, SUITE 300
- **CITY:** EDEN PRAIRIE
- **STATE:** MN
- **ZIP:** 55344

?xml version="1.0" ? agti-20230307

**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): March 7, 2023**

**AGILITI, INC.**

**(Exact name of Registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40361** | **83-1608463** |
| **(State or other jurisdiction**<br>**of incorporation)** | **(Commission**<br>**File Number)** | **(I.R.S. Employer**<br>**Identification No.)** |

---

**11095 Viking Drive, Suite 300**

**Eden Prairie, MN 55344**

**(Address of principal executive offices, including 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:

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Stock, par value $0.0001 | AGTI | The New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

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**Item 2.02. Results of Operations and Financial Condition.**

On March 7, 2023, Agiliti, Inc. (the "Company") issued a press release announcing its financial results for the quarter and year ended December 31, 2022. A copy of the press release attached hereto as Exhibit 99.1, and is incorporated herein by reference.

The information in this Current Report, including the exhibit attached hereto as Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. This information shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference to such disclosure in this Form 8-K in such a filing.

**Item 9.01. Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description** |
| 99.1 | <u>[Press Release dated](agti-202337x8kex991.htm)[March 7, 2023](agti-202337x8kex991.htm)[.](agti-202337x8kex991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURE**

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

Dated: March 7, 2023

---

| | |
|:---|:---|
| AGILITI, INC. | AGILITI, INC. |
| By: | /s/ James B. Pekarek |
| Name: | James B. Pekarek |
| Title: | Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**AGILITI ANNOUNCES FINANCIAL RESULTS FOR FOURTH QUARTER AND FULL-YEAR 2022** 

**AND PROVIDES 2023 OUTLOOK**

Eden Prairie, Minn. — (BUSINESS WIRE) — March 7, 2023 – 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 fourth quarter and year ended December 31, 2022, and provided its financial outlook for 2023.

**Fourth Quarter 2022 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $282 million, a decrease of 3 percent from the prior year's Covid-impacted results

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income of $3.4 million, down $6.6 million from the prior year period; diluted income per share of $0.02, down $0.05 per share from the prior year period

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA<sup>1</sup> of $71 million, compared to $85 million in the prior year period; Adjusted Earnings Per Share<sup>1</sup> of $0.18, down $0.07 compared to the prior year period

**Full-Year 2022 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue growth of 8 percent to $1.12 billion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income of $30.2 million, up $6.2 million from the prior year period; diluted income per share of $0.22, up $0.03 per share from the prior year period

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA<sup>1</sup> of $297 million, compared to $331 million in the prior year period; Adjusted Earnings Per Share<sup>1</sup> of $0.85, down $0.14 compared to the prior year period

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total debt of $1.10 billion; Net debt<sup>1</sup> of $1.09 billion; and, Net Leverage ratio<sup>1</sup> of 3.7x

"Agiliti achieved a number of important business milestones over the course of 2022, including successfully navigating our critical role during the Covid pandemic; securing a long-term renewal of our federal government medical device stockpile management contract; and, signing a record volume of new customer agreements," said Tom Leonard, CEO of Agiliti. "We enter 2023 with confidence in our near-term financial outlook and excited about our longer-term potential. As I conclude my time as CEO of Agiliti, I could not be more proud of our team and of the company's important mission in healthcare. I look forward to supporting Agiliti's continued progress under Tom Boehning's leadership."

"In 2022, our performance demonstrated the strength and durability of our model—withstanding the transient impacts of pandemic recovery as we supported our customers through this challenging period for their own business," said Tom Boehning, President of Agiliti. "As we turn the corner to 2023, our teams are squarely focused on sustaining our new business momentum and executing on our proven strategy to meet the steady demand from our customers. As the company's next CEO, I am excited to continue working alongside our teams to deliver on our growth potential.

**Fourth Quarter and Year-to-Date 2022 Financial Results**

Total revenue for the three months ended December 31, 2022 was $281.7 million, representing a 3.0 percent decrease from total revenue of $290.5 million for the same period of 2021. Total revenue for the year ended December 31, 2022 was $1.12 billion, representing a 8.0 percent increase from total revenue of $1.04 billion for the same period of 2021.

Net income for the three months ended December 31, 2022 was $3.4 million, compared to $10 million for the same period of 2021. Net income for the year ended December 31, 2022 was $30.2 million, a $6.2 million increase from net income of $24.0 million for the same period of 2021.

Adjusted EBITDA<sup>1</sup> for the three months ended December 31, 2022 was $71.4 million, a 15.9 percent decrease from Adjusted EBITDA<sup>1</sup> of $84.9 million for the same period of 2021. Adjusted EBITDA<sup>1</sup> for the year ended December 31, 2022 was $296.6 million, a 10.3 percent decrease from Adjusted EBITDA<sup>1</sup> of $330.7 million for the same period of 2021.

**2023 Financial Guidance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $1.16 - $1.19 billion

<sup>1</sup> Non-GAAP Measures. See further discussion on page 6

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA of $295 - 305 million<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted earnings per share of $0.65 – $0.70 per share<sup>2</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capex investment expected in the range of $85 to $95 million

**Conference Call Information**

Agiliti will hold a conference call to discuss its fourth quarter and full year 2022 results on Tuesday, March 7, at 5 p.m. Eastern Time (4 p.m. Central Time).

The conference call can be accessed live over the phone by dialing 1-844-512-2921 or for international callers, 1-412-317-6671. The passcode for the live call and the replay is 13735716. A replay will be available two hours after the call and can be accessed by dialing 1-877-407-0792, or for international callers, 1-201-689-8263. The Access ID for the replay call is 13735716. The replay will be available until March 13, 2023.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by visiting the Agiliti Investor Relations site at https://investors.agilitihealth.com. The online 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 10,000 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.

CONTACT:

Kate Kaiser

Corporate Communication and Investor Relations

kate.kaiser@agilitihealth.com

**Forward-Looking Statements**

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are forward-looking in time, including financial outlook and other preliminary results, and 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: negative reaction of our investors, our suppliers, our customers or our employees to our leadership succession; market volatility of our common stock as a result of our leadership succession; the risk that the leadership succession may not provide the results that the company expects; 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 potential inability to maintain the agreement with the U.S. Department of Health and Human Services' ("HHS") and Office of Assistant Secretary of Preparedness and Response ("ASPR") (the "Agreement") or comply with its terms and risks relating to extension, renewal or termination of the Agreement or any of our existing contacts with HHS and ASPR; 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 most recent annual report on Form 10-K.

<sup>2</sup> With regard to the non-GAAP Adjusted EBITDA guidance and adjusted earnings per share guidance provided above, a reconciliation to GAAP net income has not been provided as the quantification of certain items included in the calculation of GAAP net income cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, and the non-GAAP adjustment for certain reserves and expenses depends on the timing and magnitude of these expenses and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results. See further discussion below regarding historical Adjusted EBITDA and historical adjusted earnings per share.

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**Agiliti, Inc. and Subsidiaries**

**Consolidated Statements of Operations**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended <br>December 31** | **Three Months Ended <br>December 31** | **Year Ended <br>December 31** | **Year Ended <br>December 31** |
|<br>*(in thousands, except share and per share information)* | **2022** | **2021** | **2022** | **2021** |
| Revenue | $281679 | $290478 | $1121292 | $1038690 |
| Cost of revenue | 174100 | 169727 | 690318 | 614073 |
| &nbsp;&nbsp;&nbsp;Gross margin | 107579 | 120751 | 430974 | 424617 |
| Selling, general and administrative expense | 84685 | 95053 | 338988 | 320387 |
| &nbsp;&nbsp;&nbsp;Operating income | 22894 | 25698 | 91986 | 104230 |
| Loss on extinguishment of debt |  |  | 1418 | 10116 |
| Interest expense | 14983 | 13070 | 49439 | 53514 |
| Tax indemnification expense |  |  | 11918 |  |
| &nbsp;&nbsp;&nbsp;Income before income taxes and noncontrolling interest | 7911 | 12628 | 29211 | 40600 |
| Income tax expense (benefit) | 4440 | 2601 | (1232) | 16433 |
| &nbsp;&nbsp;&nbsp;Consolidated net income | 3471 | 10027 | 30443 | 24167 |
| Net income attributable to noncontrolling interest | 100 | 44 | 231 | 161 |
| Net income attributable to Agiliti, Inc. and Subsidiaries | $3371 | 9983 | $30212 | $24006 |
| Basic income per share | $0.03 | $0.08 | $0.23 | $0.20 |
| Diluted income per share | $0.02 | $0.07 | $0.22 | $0.19 |
| Weighted-average common shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 133461895 | 130666105 | 132602747 | 120877480 |
| &nbsp;&nbsp;&nbsp;Diluted | 139001770 | 138525173 | 138381295 | 128497220 |

---

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**Agiliti, Inc. and Subsidiaries**

**Consolidated Balance Sheets**

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| | | |
|:---|:---|:---|
| *(in thousands, except share and per share information)* | **December 31, 2022** | **December 31,<br>2021** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5577 | $74325 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, less allowance for credit losses of $4,182 as of December 31, 2022 and $2,902 at December 31, 2021 | 207753 | 209308 |
| &nbsp;&nbsp;&nbsp;Inventories | 70132 | 55307 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 23458 | 18549 |
| &nbsp;&nbsp;&nbsp;Other current assets | 9393 | 395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 316313 | 357884 |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 273958 | 258370 |
| &nbsp;&nbsp;&nbsp;Goodwill | 1239106 | 1213121 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 79975 | 80676 |
| &nbsp;&nbsp;&nbsp;Other intangibles, net | 512020 | 573159 |
| &nbsp;&nbsp;&nbsp;Other | 22735 | 32537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2444107 | $2515747 |
| **Liabilities and Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | $17752 | $17534 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liability | 23607 | 22826 |
| &nbsp;&nbsp;&nbsp;Current portion of obligation under tax receivable agreement | 34694 | 29187 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 59163 | 53851 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 25928 | 47951 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 5039 | 3473 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 31198 | 33708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 197381 | 208530 |
| &nbsp;&nbsp;&nbsp;Long-term debt, less current portion | 1077293 | 1174968 |
| &nbsp;&nbsp;&nbsp;Obligation under tax receivable agreement, pension and other long-term liabilities | 9161 | 29629 |
| &nbsp;&nbsp;&nbsp;Operating lease liability, less current portion | 67332 | 63241 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes, net | 146615 | 143307 |
| &nbsp;&nbsp;&nbsp;Commitments and contingencies |  |  |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value; 500,000,000 shares authorized; 133,608,495 and 130,950,061 shares issued and outstanding as of December 31, 2022 and December 31, 2021 | 13 | 13 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 953046 | 938888 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (14274) | (44486) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 7343 | 1537 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Agiliti, Inc. and Subsidiaries equity | 946128 | 895952 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interest | 197 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 946325 | 896072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $2444107 | $2515747 |

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**Agiliti, Inc. and Subsidiaries**

**Consolidated Statements of Cash Flows**

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| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| *(in thousands)* | **2022** | **2021** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Consolidated net income | $30443 | $24167 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 84331 | 103805 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 95452 | 88240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurement of tax receivable agreement | (2124) | 4542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 1418 | 7716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 3903 | 2023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for inventory obsolescence | 1034 | 2424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash share-based compensation expense | 18775 | 13960 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on sales and disposals of equipment | (1101) | (3735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 1292 | 12004 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (3976) | (8915) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (12188) | 3052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating assets | (10144) | (9044) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 15753 | 718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other operating liabilities | (23092) | (30640) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 199776 | 210317 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Medical equipment purchases | (55864) | (37377) |
| &nbsp;&nbsp;&nbsp;Property and office equipment purchases | (31600) | (29121) |
| &nbsp;&nbsp;&nbsp;Proceeds from disposition of property and equipment | 2963 | 9242 |
| &nbsp;&nbsp;&nbsp;Acquisitions, net of cash acquired | (62339) | (676878) |
| &nbsp;&nbsp;&nbsp;Intangible asset purchases | (20) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (146860) | (734134) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds under debt arrangements | 60000 | 381927 |
| &nbsp;&nbsp;&nbsp;Payments under debt arrangements | (160023) | (364119) |
| &nbsp;&nbsp;&nbsp;Payments of principal under finance lease liability | (8812) | (9097) |
| &nbsp;&nbsp;&nbsp;Payments of deferred financing costs |  | (229) |
| &nbsp;&nbsp;&nbsp;Payments under tax receivable agreement |  | (15577) |
| &nbsp;&nbsp;&nbsp;Distributions to noncontrolling interests | (154) | (185) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 3101 | 1409 |
| &nbsp;&nbsp;&nbsp;Dividend and equity distribution payment | (908) | (928) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock |  | 402815 |
| &nbsp;&nbsp;&nbsp;Stock issuance costs |  | (4379) |
| &nbsp;&nbsp;&nbsp;Shares forfeited for taxes | (14547) |  |
| &nbsp;&nbsp;&nbsp;Payments of contingent consideration | (321) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (121664) | 391637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in cash and cash equivalents | (68748) | (132180) |
| Cash and cash equivalents at the beginning of period | 74325 | 206505 |
| Cash and cash equivalents at the end of period | $5577 | $74325 |

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**Use of non-GAAP information**

This press release contains non-GAAP measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio. We use these internally as measures of operational performance, or liquidity, as applicable, and 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 these measures 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, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio, 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 to total debt as measures of liquidity or debt capacity. Since EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Net Debt and Net Leverage Ratio are not measures determined in accordance with GAAP and are thus susceptible to varying interpretations and calculations, these measures, as presented, may not be comparable to other similarly titled measures of other companies. EBITDA, Adjusted EBITDA, and Adjusted Net Income 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. 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 share-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. LTM Adjusted EBITDA represents the last twelve months ("LTM") of Adjusted EBITDA.

**Agiliti, Inc. and Subsidiaries**

**Non-GAAP Financial Measure: Adjusted EBITDA**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended <br>December 31** | **Three Months Ended <br>December 31** | **Year Ended<br>December 31** | **Year Ended<br>December 31** |
|<br>***(in thousands)*** | **2022** | **2021** | **2022** | **2021** |
| Net income attributable to Agiliti, Inc. and Subsidiaries | $3371 | $9983 | $30212 | $24006 |
| Interest expense | 14983 | 13070 | 49439 | 53514 |
| Income tax expense (benefit) (1) | 4440 | 2601 | (1232) | 16433 |
| Depreciation and amortization | 42053 | 49287 | 175764 | 187963 |
| EBITDA | 64847 | 74941 | 254183 | 281916 |
| Non-cash share-based compensation expense | 3710 | 3833 | 18775 | 13960 |
| Tax indemnification expense |  |  | 11918 |  |
| Management and other expenses (2) | 451 | 286 | 2411 | 7926 |
| Transaction costs (3) | 4519 | 5797 | 9984 | 12222 |
| Tax receivable agreement remeasurement | (2124) |  | (2124) | 4542 |
| Loss on extinguishment of debt (4) |  |  | 1418 | 10116 |
| Adjusted EBITDA | $71403 | $84857 | $296565 | $330682 |

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_____________________________

(1)Income tax expense (benefit) includes the $11.9 million tax benefit due to the release of the reserve and associated interest and penalties related to the Sizewise Acquisition offset in tax indemnification expense.

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

(3)Transaction costs represent costs associated with potential and completed mergers and acquisitions and are primarily related to the Northfield and Sizewise Acquisitions.

(4)Loss on extinguishment of debt for 2022 consists of the write-off of the unamortized debt discount related to the partial prepayment of the First Lien Term Loan. Loss on extinguishment of debt for 2021 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 cost related to the amendment of our Revolving Credit Facility.

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**Agiliti, Inc. and Subsidiaries**

**Non-GAAP Financial Measure: Adjusted Net Income and Adjusted EPS**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended <br>December 31,** | **Three Months Ended <br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
|<br>*(in thousands, except share and per share information, unaudited)* | **2022** | **2021** | **2022** | **2021** |
| Net income attributable to Agiliti, Inc. and Subsidiaries | $3371 | $9983 | $30212 | $24006 |
| Amortization | 23223 | 23731 | 91432 | 84158 |
| Non-cash share-based compensation expense | 3710 | 3833 | 18775 | 13960 |
| Tax indemnification expense |  |  | 11918 |  |
| Management and other expenses (1) | 451 | 286 | 2411 | 7926 |
| Transaction costs (2) | 4519 | 5797 | 9984 | 12222 |
| Tax receivable agreement remeasurement | (2124) |  | (2124) | 4542 |
| Loss on extinguishment of debt (3) |  |  | 1418 | 10116 |
| Income tax benefit associated with pre-tax adjustments (4) | (8630) | (9462) | (46538) | (29920) |
| Adjusted net income | $24520 | $34168 | $117488 | $127010 |
| Weighted average shares outstanding - diluted | 139002 | 138525 | 138381 | 128497 |
| **Adjusted EPS** | $**0.18** | $**0.25** | $**0.85** | $**0.99** |

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

(2)Transaction costs represent costs associated with potential and completed mergers and acquisitions and are primarily related to the Northfield and Sizewise Acquisitions.

(3)Loss on extinguishment of debt for 2022 consists of the write-off of the unamortized debt discount related to the partial prepayment of the First Lien Term Loan. Loss on extinguishment of debt for 2021 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 cost related to the amendment of our Revolving Credit Facility.

(4)Income tax (benefit) expense includes the $11.9 million tax benefit due to the release of the reserve and associated interest and penalties related to the Sizewise Acquisition offset in tax indemnification expense.

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**Agiliti, Inc. and Subsidiaries**

**Non-GAAP Financial Measure: Net Debt and Net Leverage Ratio**

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| | | |
|:---|:---|:---|
| *(in millions, unaudited)* | **December 31, 2022** | **December 31, 2022** |
| First Lien Term Loan, due 2026 | $1054.5 |  |
| Revolving Loan, due 2026 | 28.5 |  |
| Finance lease liability | 23.9 |  |
| Less: Unamortized Deferred Financing Costs and Debt Discount | (11.9) |  |
| Total Debt | $1095.0 |  |
| Less: Cash | (5.6) |  |
| Net Debt | $1089.4 |  |
| LTM Adjusted EBITDA | $296.6 |  |
| Net Leverage | 3.7 | x |

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