Agiliti Inc (NYSE:AGTI), an essential service provider to the U.S. healthcare industry with solutions that help support a more efficient, safe and sustainable healthcare delivery system, stock fell 2.35% (As on November 11, 11:04:24 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 22. Net income for the three months ended September 30, 2022, was $2.0 million, a $7.7 million decrease from the same period of 2021. Adjusted EBITDA for the three months ended September 30, 2022, was $66.5 million, a 18.9 percent decrease from Adjusted EBITDA of $81.9 million for the same period of 2021. Adjusted EBITDA decline driven primarily by lower post-Covid medical device fleet utilization, and lower activity under the HHS contract compared to prior year’s Covid-intensive period. Total debt of $1.07 billion; Net debt of $1.04 billion; and, Net Leverage ratio of 3.3x. Higher interest rates on corporate debt reduced. Cash flow from operations YTD is over $160M. The company continues to power the progress by focusing on our customers’ evolving needs and delivering some of the most significant new business deals in the company’s history.

AGTI in the third quarter of FY 22 has reported the adjusted earnings per share of 19 cents, which is inline with the analysts’ estimates for the adjusted earnings per share of 19 cents. The company had reported the adjusted revenue growth of 3.3 percent to $271 million in the third quarter of FY 22, missing the analysts’ estimates for revenue of $273.41 million. Strong growth across Equipment Solutions, partly offset by declines in Clinical Engineering and Onsite Managed Services driven by lower activity under the HHS contract extension. Equipment Solutions revenue increase driven by combination with Sizewise, partly offset by post-Covid rental fleet utilization headwind. Clinical Engineering revenue decrease driven by lower time-and-materials work under the HHS contract Onsite Managed Services lower revenue associated primarily with new pricing of current HHS contract extension.

Agiliti Inc. expects FY2022 EPS to be in the range of $0.83-$0.88, versus the consensus of $0.89. Agiliti Inc. sees FY2022 revenue to be in the range of $1.11-1.12 billion, versus the consensus of $1.16 billion. Adjusted EBITDA is expected to be in the range of $290-300 million. Capex investment is expected in the range of $75 to $85 million. Net Capex is expected to be reduced to $75M-$85M .