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8-K - FORM 8-K - Spok Holdings, Inc | w78397e8vk.htm |
EX-99.2 - EX-99.2 - Spok Holdings, Inc | w78397exv99w2.htm |
Exhibit 99.1
News Release
For Immediate Release
|
Contact: | Bob Lougee (800) 611-8488 | ||
Wednesday, May 5, 2010
|
bob.lougee@usamobility.com |
USA Mobility Reports First Quarter Operating Results;
Board Declares Quarterly Cash Distribution
Board Declares Quarterly Cash Distribution
Subscriber and Revenue Trends Improve;
Operating Expenses Again Reduced;
Cash Flow Margins Maintained
Operating Expenses Again Reduced;
Cash Flow Margins Maintained
Springfield, VA (May 5, 2010) USA Mobility, Inc. (Nasdaq: USMO), a leading provider of
wireless messaging and communications services, today announced operating results for the first
quarter ended March 31, 2010.
In addition, the Companys Board of Directors declared a regular quarterly cash distribution of
$0.25 per share, payable on June 25, 2010 to stockholders of record on May 20, 2010. Of the $0.25
cash distribution, the Company expects $0.23 will be a return of capital and $0.02 will be a
dividend distribution.
Total revenue for the first quarter was $62.8 million, compared to $65.4 million in the fourth
quarter of 2009 and $79.7 million in the year-earlier quarter. First quarter EBITDA (earnings
before interest, taxes, depreciation, amortization and accretion) totaled $22.0 million, compared
to $21.0 million in the fourth quarter and $28.6 million in the first quarter of 2009.
Net income for the first quarter was $8.9 million, or $0.39 per fully diluted share, compared to
$10.0 million, or $0.43 per fully diluted share, in the year-earlier quarter.
First quarter results included:
| Net unit loss was 83,000 in the first quarter, compared to 115,000 in the prior quarter and 208,000 in the first quarter of 2009. Units in service totaled 2,099,000 at March 31, 2010, compared to 2,607,000 a year earlier. |
| The quarterly rate of subscriber loss improved to 3.8 percent, compared to 5.0 percent in the fourth quarter and 7.4 percent in the first quarter of 2009. The annual rate of subscriber erosion was 19.5 percent in the first quarter, compared to 22.5 percent in the fourth quarter and 21.8 percent in the year-earlier quarter. | ||
| The quarterly rate of revenue erosion improved to 4.0 percent, compared to 5.9 percent in the fourth quarter and 5.4 percent in the first quarter of 2009. The annual rate of revenue erosion for the first quarter was 21.2 percent, compared to 22.4 percent in the fourth quarter and 15.9 percent in the year-earlier quarter. | ||
| Total paging ARPU (average revenue per unit) increased to $9.00 in the first quarter from $8.88 in the fourth quarter and $8.86 in the year-earlier quarter. Quarterly ARPU reached its highest level since the third quarter of 2005. | ||
| Operating expenses (excluding depreciation, amortization and accretion) totaled $40.8 million in the first quarter, a reduction of $10.2 million, or 20.0 percent, from $51.1 million in the first quarter of 2009. Quarterly operating expenses declined 7.9 percent from the fourth quarter of 2009. | ||
| EBITDA margin (or EBITDA as a percentage of revenue) was 35.0 percent, compared to 32.2 percent in the fourth quarter of 2009 and 35.9 percent in the year-earlier quarter. | ||
| Capital expenses were $1.7 million, compared to $5.0 million in the fourth quarter of 2009. | ||
| The Company repurchased 364,407 shares of common stock during the quarter under its buy back program, and approximately $20.4 million remains available for purchases under the currently approved plan. | ||
| The Companys cash balance at March 31, 2010 was $115.6 million. |
Vincent D. Kelly, president and chief executive officer, said: Despite a still sluggish economy,
USA Mobility reported outstanding operating results for the first quarter that met or exceeded our
key performance objectives and were consistent with the financial guidance we provided earlier this
year. We were particularly pleased to see significant improvement in the pace of both subscriber
and revenue erosion. Through our continued focus on cost reductions and maintaining operating
margins we again generated sufficient cash flow to return significant capital to stockholders in
the form of cash distributions and share repurchases.
Kelly said the Company continued to focus sales and marketing efforts during the quarter around its
core market segments of Healthcare, Government and Large Enterprise. These core segments
represented approximately 86.8 percent of our direct subscriber base and 81.5 percent of our direct
paging revenue at the end of the first quarter. Healthcare continued to be our best performing
market segment with the highest rate of gross placements and
lowest rate of net unit loss as healthcare providers continue to benefit from the reliability of
paging for their most critical messaging needs. In fact, our networks today carry the bulk of
messaging traffic to hospitals across the
country, providing paging service to 44 percent of all
U.S. hospitals and 63 percent of major hospitals (those with at least 200 beds).
Thomas L. Schilling, chief operating officer and chief financial officer, said the Company
continued to reduce operating expenses in the first quarter. Operating expenses (excluding
depreciation, amortization and accretion) decreased 20.0 percent from the year-earlier quarter,
Schilling noted, including a 22.2 percent reduction in payroll expense and a 19.1 decline in site
rent expense. In addition, operating expenses as a percentage of revenue was 65.0 percent in the
first quarter versus 67.8 percent in the prior quarter, while the combination of lower expenses and
higher ARPU resulted in an EBITDA margin of 35.0 percent as compared to 32.2 percent in the fourth
quarter of 2009.
The Company maintained its previous financial guidance for 2010 of revenues between $228 million to
$238 million, operating expenses (excluding depreciation, amortization and accretion) between $158
million to $163 million, and capital expenses between $10 million to $12 million.
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its first quarter results at 10:00
a.m. Eastern Time on Thursday, May 6, 2010. The dial-in number for the call is 877-440-5807
(toll-free) or 719-325-4803 (toll). The pass code for the call is 5365764. A replay of the call
will be available from 3:00 p.m. ET on May 6 until 11:59 p.m. on Thursday, May 20. The replay
number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is
5365764.
* * * * * * * * *
USA Mobilitys Annual Meeting of Stockholders will be held at 9:00 a.m. Eastern Time on Wednesday,
May 12, 2010 in Alexandria, VA.
About USA Mobility
USA Mobility, Inc., headquartered in Springfield, Virginia, is a comprehensive provider of reliable
and affordable wireless communications solutions to the healthcare, government, large enterprise
and emergency response sectors. As a single-source provider, USA Mobilitys focus is on the
business-to-business marketplace and supplying wireless connectivity solutions to organizations
nationwide. The Company operates the largest one-way paging and advanced two-way paging networks
in the United States. In addition, USA Mobility offers mobile voice and data services through
Sprint Nextel and T-Mobile, including
BlackBerry® smartphones and GPS location applications. The
Companys product offerings include customized wireless connectivity systems for the healthcare,
government and other campus environments. USA Mobility also offers M2M (machine-to-machine)
telemetry solutions for
numerous applications that include asset tracking, utility meter reading and other remote device
monitoring applications on a national scale. For further information visit www.usamobility.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act: Statements
contained herein or in prior press releases which are not historical fact, such as statements
regarding USA Mobilitys future operating and financial performance, are forward-looking statements
for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of
1995. These forward-looking statements involve risks and uncertainties that may cause USA
Mobilitys actual results to be materially different from the future results expressed or implied
by such forward-looking statements. Factors that could cause actual results to differ materially
from those expectations include, but are not limited to, declining demand for paging products and
services, the ability to continue to reduce operating expenses, future capital needs, competitive
pricing pressures, competition from both traditional paging services and other wireless
communications services, government regulation, reliance upon third-party providers for certain
equipment and services, as well as other risks described from time to time in periodic reports and
registration statements filed with the Securities and Exchange Commission. Although USA Mobility
believes the expectations reflected in the forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be attained. USA Mobility
disclaims any intent or obligation to update any forward-looking statements.
Tables to Follow
USA MOBILITY, INC.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a)
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a)
(unaudited and in thousands, except share and per share amounts)
For the three months ended | |||||||||||||||||||||
3/31/09 | 6/30/09 | 9/30/09 | 12/31/09 | 3/31/10 | |||||||||||||||||
Revenues: |
|||||||||||||||||||||
Paging service |
$ | 72,021 | $ | 67,972 | $ | 63,308 | $ | 59,657 | $ | 57,832 | |||||||||||
Cellular |
991 | 775 | 980 | 795 | 708 | ||||||||||||||||
Product sales |
5,271 | 5,269 | 4,354 | 3,927 | 3,358 | ||||||||||||||||
Other |
1,408 | 1,129 | 856 | 993 | 886 | ||||||||||||||||
Total revenues |
79,691 | 75,145 | 69,498 | 65,372 | 62,784 | ||||||||||||||||
Operating expenses: |
|||||||||||||||||||||
Cost of products sold |
1,669 | 1,421 | 1,593 | 1,513 | 1,209 | ||||||||||||||||
Service, rental and maintenance |
22,955 | 21,290 | 20,950 | 20,115 | 18,941 | ||||||||||||||||
Selling and marketing |
6,062 | 5,600 | 5,198 | 4,955 | 4,557 | ||||||||||||||||
General and administrative |
20,186 | 22,801 | 16,050 | 15,289 | 15,812 | ||||||||||||||||
Severance and restructuring |
190 | 52 | 15 | 2,480 | 314 | ||||||||||||||||
Depreciation, amortization and accretion |
11,270 | 11,174 | 10,689 | 8,781 | 7,304 | ||||||||||||||||
Total operating expenses |
62,332 | 62,338 | 54,495 | 53,133 | 48,137 | ||||||||||||||||
% of total revenues |
78.2 | % | 83.0 | % | 78.4 | % | 81.3 | % | 76.7 | % | |||||||||||
Operating income |
17,359 | 12,807 | 15,003 | 12,239 | 14,647 | ||||||||||||||||
% of total revenues |
21.8 | % | 17.0 | % | 21.6 | % | 18.7 | % | 23.3 | % | |||||||||||
Interest income (expense), net |
26 | 28 | 16 | (1 | ) | 3 | |||||||||||||||
Other income (expense), net |
112 | (42 | ) | 185 | 275 | 78 | |||||||||||||||
Income before income tax expense (benefit) |
17,497 | 12,793 | 15,204 | 12,513 | 14,728 | ||||||||||||||||
Income tax expense (benefit) |
7,516 | (31,953 | ) | 6,003 | 8,883 | 5,843 | |||||||||||||||
Net income |
$ | 9,981 | $ | 44,746 | $ | 9,201 | $ | 3,630 | $ | 8,885 | |||||||||||
Basic net income per common share |
$ | 0.43 | $ | 1.96 | $ | 0.40 | $ | 0.16 | $ | 0.39 | |||||||||||
Diluted net income per common share |
$ | 0.43 | $ | 1.93 | $ | 0.40 | $ | 0.16 | $ | 0.39 | |||||||||||
Basic weighted average common shares outstanding |
23,134,072 | 22,858,573 | 22,856,951 | 22,830,040 | 22,654,240 | ||||||||||||||||
Diluted weighted average common shares outstanding |
23,479,796 | 23,200,736 | 23,194,360 | 23,167,729 | 22,967,192 | ||||||||||||||||
Reconciliation of operating income to EBITDA (b): |
|||||||||||||||||||||
Operating income |
$ | 17,359 | $ | 12,807 | $ | 15,003 | $ | 12,239 | $ | 14,647 | |||||||||||
Add back: depreciation, amortization and accretion |
11,270 | 11,174 | 10,689 | 8,781 | 7,304 | ||||||||||||||||
EBITDA |
$ | 28,629 | $ | 23,981 | $ | 25,692 | $ | 21,020 | $ | 21,951 | |||||||||||
% of total revenues |
35.9 | % | 31.9 | % | 37.0 | % | 32.2 | % | 35.0 | % |
(a) | Slight variations in totals are due to rounding. | |
(b) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
UNITS IN SERVICE ACTIVITY (a)
UNITS IN SERVICE ACTIVITY (a)
(unaudited and in thousands)
For the three months ended | |||||||||||||||||||||
3/31/09 | 6/30/09 | 9/30/09 | 12/31/09 | 3/31/10 | |||||||||||||||||
Units in service |
|||||||||||||||||||||
Beginning units in service |
|||||||||||||||||||||
Direct one-way |
2,349 | 2,198 | 2,079 | 1,969 | 1,881 | ||||||||||||||||
Direct two-way |
171 | 157 | 147 | 141 | 133 | ||||||||||||||||
Total direct |
2,520 | 2,355 | 2,226 | 2,110 | 2,014 | ||||||||||||||||
Indirect one-way |
196 | 161 | 139 | 116 | 101 | ||||||||||||||||
Indirect two-way |
99 | 91 | 84 | 71 | 67 | ||||||||||||||||
Total indirect |
295 | 252 | 223 | 187 | 168 | ||||||||||||||||
Total beginning units in service |
2,815 | 2,607 | 2,449 | 2,297 | 2,182 | ||||||||||||||||
Gross placements |
|||||||||||||||||||||
Direct one-way |
67 | 74 | 64 | 55 | 53 | ||||||||||||||||
Direct two-way |
6 | 7 | 9 | 5 | 5 | ||||||||||||||||
Total direct |
73 | 81 | 73 | 60 | 58 | ||||||||||||||||
Indirect one-way |
8 | 9 | 7 | 6 | 3 | ||||||||||||||||
Indirect two-way |
4 | 2 | 1 | 2 | 15 | ||||||||||||||||
Total indirect |
12 | 11 | 8 | 8 | 18 | ||||||||||||||||
Total gross placements |
85 | 92 | 81 | 68 | 76 | ||||||||||||||||
Gross disconnects |
|||||||||||||||||||||
Direct one-way |
(218 | ) | (193 | ) | (174 | ) | (143 | ) | (130 | ) | |||||||||||
Direct two-way |
(20 | ) | (17 | ) | (15 | ) | (13 | ) | (12 | ) | |||||||||||
Total direct |
(238 | ) | (210 | ) | (189 | ) | (156 | ) | (142 | ) | |||||||||||
Indirect one-way |
(43 | ) | (31 | ) | (30 | ) | (21 | ) | (14 | ) | |||||||||||
Indirect two-way |
(12 | ) | (9 | ) | (14 | ) | (6 | ) | (3 | ) | |||||||||||
Total indirect |
(55 | ) | (40 | ) | (44 | ) | (27 | ) | (17 | ) | |||||||||||
Total gross disconnects |
(293 | ) | (250 | ) | (233 | ) | (183 | ) | (159 | ) | |||||||||||
Net (loss) gain |
|||||||||||||||||||||
Direct one-way |
(151 | ) | (119 | ) | (110 | ) | (88 | ) | (77 | ) | |||||||||||
Direct two-way |
(14 | ) | (10 | ) | (6 | ) | (8 | ) | (7 | ) | |||||||||||
Total direct |
(165 | ) | (129 | ) | (116 | ) | (96 | ) | (84 | ) | |||||||||||
Indirect one-way |
(35 | ) | (22 | ) | (23 | ) | (15 | ) | (11 | ) | |||||||||||
Indirect two-way |
(8 | ) | (7 | ) | (13 | ) | (4 | ) | 12 | ||||||||||||
Total indirect |
(43 | ) | (29 | ) | (36 | ) | (19 | ) | 1 | ||||||||||||
Total net change |
(208 | ) | (158 | ) | (152 | ) | (115 | ) | (83 | ) | |||||||||||
Ending units in service |
|||||||||||||||||||||
Direct one-way |
2,198 | 2,079 | 1,969 | 1,881 | 1,804 | ||||||||||||||||
Direct two-way |
157 | 147 | 141 | 133 | 126 | ||||||||||||||||
Total direct |
2,355 | 2,226 | 2,110 | 2,014 | 1,930 | ||||||||||||||||
Indirect one-way |
161 | 139 | 116 | 101 | 90 | ||||||||||||||||
Indirect two-way |
91 | 84 | 71 | 67 | 79 | ||||||||||||||||
Total indirect |
252 | 223 | 187 | 168 | 169 | ||||||||||||||||
Total ending units in service |
2,607 | 2,449 | 2,297 | 2,182 | 2,099 | ||||||||||||||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(unaudited)
For the three months ended | |||||||||||||||||||||
3/31/09 | 6/30/09 | 9/30/09 | 12/31/09 | 3/31/10 | |||||||||||||||||
ARPU |
|||||||||||||||||||||
Direct one-way |
$ | 8.11 | $ | 8.18 | $ | 8.08 | $ | 8.04 | $ | 8.16 | |||||||||||
Direct two-way |
23.68 | 23.62 | 23.42 | 23.59 | 23.61 | ||||||||||||||||
Total direct |
9.15 | 9.21 | 9.10 | 9.06 | 9.17 | ||||||||||||||||
Indirect one-way |
7.05 | 7.43 | 7.51 | 7.77 | 8.78 | ||||||||||||||||
Indirect two-way |
4.58 | 5.19 | 5.49 | 5.14 | 4.84 | ||||||||||||||||
Total indirect |
6.19 | 6.60 | 6.74 | 6.73 | 7.04 | ||||||||||||||||
Total one-way |
8.03 | 8.14 | 8.05 | 8.02 | 8.19 | ||||||||||||||||
Total two-way |
16.66 | 16.86 | 17.09 | 17.32 | 16.76 | ||||||||||||||||
Total paging ARPU |
$ | 8.86 | $ | 8.96 | $ | 8.89 | $ | 8.88 | $ | 9.00 | |||||||||||
Gross disconnect rate (b) |
|||||||||||||||||||||
Direct one-way |
-9.3 | % | -8.8 | % | -8.4 | % | -7.2 | % | -6.9 | % | |||||||||||
Direct two-way |
-11.8 | % | -11.0 | % | -10.2 | % | -8.9 | % | -9.1 | % | |||||||||||
Total direct |
-9.5 | % | -8.9 | % | -8.5 | % | -7.3 | % | -7.1 | % | |||||||||||
Indirect one-way |
-22.0 | % | -19.4 | % | -21.9 | % | -18.9 | % | -13.7 | % | |||||||||||
Indirect two-way |
-11.6 | % | -9.1 | % | -16.4 | % | -8.5 | % | -4.9 | % | |||||||||||
Total indirect |
-18.5 | % | -15.6 | % | -19.8 | % | -14.9 | % | -10.1 | % | |||||||||||
Total one-way |
-10.3 | % | -9.5 | % | -9.2 | % | -7.9 | % | -7.3 | % | |||||||||||
Total two-way |
-11.7 | % | -10.3 | % | -12.5 | % | -8.8 | % | -7.7 | % | |||||||||||
Total paging gross disconnect rate |
-10.4 | % | -9.6 | % | -9.5 | % | -8.0 | % | -7.3 | % | |||||||||||
Net (loss) gain rate (c) |
|||||||||||||||||||||
Direct one-way |
-6.4 | % | -5.4 | % | -5.3 | % | -4.4 | % | -4.1 | % | |||||||||||
Direct two-way |
-8.5 | % | -6.4 | % | -4.4 | % | -5.5 | % | -5.0 | % | |||||||||||
Total direct |
-6.6 | % | -5.5 | % | -5.2 | % | -4.5 | % | -4.2 | % | |||||||||||
Indirect one-way |
-17.8 | % | -13.7 | % | -16.9 | % | -13.6 | % | -10.5 | % | |||||||||||
Indirect two-way |
-8.2 | % | -7.2 | % | -14.9 | % | -5.2 | % | 17.1 | % | |||||||||||
Total indirect |
-14.6 | % | -11.3 | % | -16.1 | % | -10.4 | % | 0.7 | % | |||||||||||
Total one-way |
-7.3 | % | -6.0 | % | -6.0 | % | -5.0 | % | -4.4 | % | |||||||||||
Total two-way |
-8.4 | % | -6.7 | % | -8.2 | % | -5.4 | % | 2.5 | % | |||||||||||
Total paging net (loss) gain rate |
-7.4 | % | -6.0 | % | -6.2 | % | -5.0 | % | -3.8 | % | |||||||||||
(a) | Slight variations in totals are due to rounding. | |
(b) | Gross disconnect rate is current period disconnected units divided by prior period ending units in service. | |
(c) | Net (loss) gain rate is net current period placements and disconnected units in service divided by prior period ending units in service. |
USA MOBILITY, INC.
SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)
SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)
(unaudited)
For the three months ended | |||||||||||||||||||||||||
3/31/09 | 6/30/09 | 9/30/09 | 12/31/09 | 3/31/10 | |||||||||||||||||||||
Gross placement rate (b)
|
|||||||||||||||||||||||||
Healthcare |
3.7 | % | 4.4 | % | 3.8 | % | 3.4 | % | 3.5 | % | |||||||||||||||
Government |
1.7 | % | 2.4 | % | 2.4 | % | 1.9 | % | 1.8 | % | |||||||||||||||
Large enterprise |
2.4 | % | 2.2 | % | 3.3 | % | 2.2 | % | 2.1 | % | |||||||||||||||
Other |
2.4 | % | 2.5 | % | 2.3 | % | 2.2 | % | 2.4 | % | |||||||||||||||
Total direct |
2.9 | % | 3.4 | % | 3.3 | % | 2.8 | % | 2.9 | % | |||||||||||||||
Total indirect |
3.9 | % | 4.3 | % | 3.7 | % | 4.5 | % | 10.9 | % | |||||||||||||||
Total |
3.0 | % | 3.5 | % | 3.3 | % | 3.0 | % | 3.5 | % | |||||||||||||||
Gross disconnect rate (b) |
|||||||||||||||||||||||||
Healthcare |
-6.8 | % | -6.2 | % | -6.7 | % | -5.5 | % | -4.9 | % | |||||||||||||||
Government |
-9.9 | % | -10.7 | % | -10.7 | % | -9.4 | % | -9.1 | % | |||||||||||||||
Large enterprise |
-13.3 | % | -13.0 | % | -10.7 | % | -9.4 | % | -10.3 | % | |||||||||||||||
Other |
-13.0 | % | -12.4 | % | -10.6 | % | -10.1 | % | -11.0 | % | |||||||||||||||
Total direct |
-9.5 | % | -8.9 | % | -8.5 | % | -7.3 | % | -7.1 | % | |||||||||||||||
Total indirect |
-18.5 | % | -15.6 | % | -19.8 | % | -14.9 | % | -10.1 | % | |||||||||||||||
Total |
-10.4 | % | -9.6 | % | -9.5 | % | -8.0 | % | -7.3 | % | |||||||||||||||
Net (loss) gain rate (b) |
|||||||||||||||||||||||||
Healthcare |
-3.1 | % | -1.8 | % | -2.9 | % | -2.1 | % | -1.4 | % | |||||||||||||||
Government |
-8.2 | % | -8.4 | % | -8.3 | % | -7.5 | % | -7.4 | % | |||||||||||||||
Large enterprise |
-10.9 | % | -10.9 | % | -7.4 | % | -7.2 | % | -8.1 | % | |||||||||||||||
Other |
-10.6 | % | -10.0 | % | -8.3 | % | -7.9 | % | -8.6 | % | |||||||||||||||
Total direct |
-6.6 | % | -5.5 | % | -5.2 | % | -4.5 | % | -4.2 | % | |||||||||||||||
Total indirect |
-14.6 | % | -11.3 | % | -16.1 | % | -10.4 | % | 0.7 | % | |||||||||||||||
Total |
-7.4 | % | -6.0 | % | -6.2 | % | -5.0 | % | -3.8 | % | |||||||||||||||
End of period units in service % of total (b) |
|||||||||||||||||||||||||
Healthcare |
44.9 | % | 49.8 | % | 51.5 | % | 53.2 | % | 54.5 | % | |||||||||||||||
Government |
17.2 | % | 15.6 | % | 15.3 | % | 14.9 | % | 14.4 | % | |||||||||||||||
Large enterprise |
12.0 | % | 11.8 | % | 11.8 | % | 11.4 | % | 10.9 | % | |||||||||||||||
Other |
16.2 | % | 13.7 | % | 13.2 | % | 12.8 | % | 12.1 | % | |||||||||||||||
Total direct |
90.3 | % | 90.9 | % | 91.8 | % | 92.3 | % | 91.9 | % | |||||||||||||||
Total indirect |
9.7 | % | 9.1 | % | 8.2 | % | 7.7 | % | 8.1 | % | |||||||||||||||
Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
(a) | Slight variations in totals are due to rounding. | |
(b) | Changes in the classification of units in service are reflected in the quarter when such changes are identified. Such changes are then appropriately reflected in calculating the gross placement, gross disconnect and net (loss) gain rates. |
USA MOBILITY, INC.
SUPPLEMENTAL INFORMATION DIRECT UNITS IN SERVICE AND CELLULAR ACTIVATIONS (a)
SUPPLEMENTAL INFORMATION DIRECT UNITS IN SERVICE AND CELLULAR ACTIVATIONS (a)
(unaudited)
For the three months ended | |||||||||||||||||||||
3/31/09 | 6/30/09 | 9/30/09 | 12/31/09 | 3/31/10 | |||||||||||||||||
Account size ending units in service (000s) |
|||||||||||||||||||||
1 to 3 units |
137 | 126 | 118 | 109 | 101 | ||||||||||||||||
4 to 10 units |
82 | 75 | 70 | 66 | 62 | ||||||||||||||||
11 to 50 units |
199 | 183 | 168 | 158 | 149 | ||||||||||||||||
51 to 100 units |
125 | 112 | 104 | 97 | 92 | ||||||||||||||||
101 to 1,000 units |
626 | 580 | 546 | 519 | 499 | ||||||||||||||||
>1,000 units |
1,186 | 1,150 | 1,104 | 1,065 | 1,027 | ||||||||||||||||
Total |
2,355 | 2,226 | 2,110 | 2,014 | 1,930 | ||||||||||||||||
End of period units in service % of total direct |
|||||||||||||||||||||
1 to 3 units |
5.8 | % | 5.7 | % | 5.6 | % | 5.4 | % | 5.2 | % | |||||||||||
4 to 10 units |
3.5 | % | 3.4 | % | 3.3 | % | 3.3 | % | 3.2 | % | |||||||||||
11 to 50 units |
8.4 | % | 8.2 | % | 8.0 | % | 7.8 | % | 7.7 | % | |||||||||||
51 to 100 units |
5.3 | % | 5.0 | % | 4.9 | % | 4.8 | % | 4.8 | % | |||||||||||
101 to 1,000 units |
26.6 | % | 26.0 | % | 25.9 | % | 25.8 | % | 25.9 | % | |||||||||||
>1,000 units |
50.4 | % | 51.7 | % | 52.3 | % | 52.9 | % | 53.2 | % | |||||||||||
Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Account size net loss rate |
|||||||||||||||||||||
1 to 3 units |
-7.8 | % | -7.9 | % | -6.9 | % | -7.4 | % | -7.6 | % | |||||||||||
4 to 10 units |
-8.8 | % | -7.9 | % | -6.7 | % | -6.1 | % | -5.3 | % | |||||||||||
11 to 50 units |
-8.9 | % | -8.2 | % | -7.7 | % | -5.9 | % | -5.8 | % | |||||||||||
51 to 100 units |
-6.2 | % | -10.1 | % | -7.6 | % | -6.8 | % | -4.4 | % | |||||||||||
101 to 1,000 units |
-8.0 | % | -7.4 | % | -5.9 | % | -4.9 | % | -3.7 | % | |||||||||||
>1,000 units |
-5.1 | % | -3.1 | % | -4.0 | % | -3.5 | % | -3.7 | % | |||||||||||
Total |
-6.6 | % | -5.5 | % | -5.2 | % | -4.5 | % | -4.2 | % | |||||||||||
Account size ARPU |
|||||||||||||||||||||
1 to 3 units |
$ | 14.73 | $ | 15.07 | $ | 14.98 | $ | 15.03 | $ | 15.28 | |||||||||||
4 to 10 units |
14.00 | 14.30 | 14.24 | 14.21 | 14.37 | ||||||||||||||||
11 to 50 units |
11.41 | 11.65 | 11.54 | 11.45 | 11.86 | ||||||||||||||||
51 to 100 units |
10.30 | 10.13 | 10.06 | 10.06 | 10.67 | ||||||||||||||||
101 to 1,000 units |
8.94 | 9.04 | 8.89 | 8.82 | 9.00 | ||||||||||||||||
>1,000 units |
7.77 | 7.80 | 7.76 | 7.79 | 7.80 | ||||||||||||||||
Total |
$ | 9.15 | $ | 9.21 | $ | 9.10 | $ | 9.06 | $ | 9.17 | |||||||||||
Cellular revenue |
|||||||||||||||||||||
Number of activations |
2,389 | 2,207 | 2,633 | 2,253 | 2,354 | ||||||||||||||||
Revenue from cellular services (000s) |
$ | 991 | $ | 775 | $ | 980 | $ | 795 | $ | 708 | |||||||||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
(unaudited and in thousands)
For the three months ended | |||||||||||||||||||||||||
3/31/09 | 6/30/09 | 9/30/09 | 12/31/09 | 3/31/10 | |||||||||||||||||||||
Cost of products sold |
$ | 1,669 | $ | 1,421 | $ | 1,593 | $ | 1,513 | $ | 1,209 | |||||||||||||||
Service, rental and maintenance |
|||||||||||||||||||||||||
Site rent |
11,218 | 10,223 | 10,422 | 9,871 | 9,079 | ||||||||||||||||||||
Telecommunications |
4,485 | 4,284 | 3,945 | 3,885 | 3,831 | ||||||||||||||||||||
Payroll and related |
5,631 | 5,286 | 4,988 | 4,725 | 4,586 | ||||||||||||||||||||
Stock based compensation |
49 | 7 | 13 | 12 | 6 | ||||||||||||||||||||
Other |
1,572 | 1,490 | 1,582 | 1,622 | 1,439 | ||||||||||||||||||||
Total service, rental and maintenance |
22,955 | 21,290 | 20,950 | 20,115 | 18,941 | ||||||||||||||||||||
Selling and marketing |
|||||||||||||||||||||||||
Payroll and related |
4,175 | 3,711 | 3,366 | 3,199 | 2,964 | ||||||||||||||||||||
Commissions |
1,201 | 1,422 | 1,328 | 1,131 | 1,164 | ||||||||||||||||||||
Stock based compensation |
109 | 26 | 26 | 26 | 17 | ||||||||||||||||||||
Other |
577 | 441 | 478 | 599 | 412 | ||||||||||||||||||||
Total selling and marketing |
6,062 | 5,600 | 5,198 | 4,955 | 4,557 | ||||||||||||||||||||
General and administrative |
|||||||||||||||||||||||||
Payroll and related |
9,075 | 7,754 | 7,213 | 7,089 | 6,912 | ||||||||||||||||||||
Stock based compensation |
569 | 241 | 241 | 241 | 240 | ||||||||||||||||||||
Bad debt |
850 | 750 | 699 | 654 | 713 | ||||||||||||||||||||
Facility rent |
1,628 | 1,446 | 1,457 | 1,411 | 1,354 | ||||||||||||||||||||
Telecommunications |
771 | 721 | 720 | 702 | 657 | ||||||||||||||||||||
Outside services |
4,514 | 4,063 | 3,269 | 3,051 | 3,267 | ||||||||||||||||||||
Taxes, licenses and permits |
1,101 | 1,695 | (680 | ) | 660 | 1,591 | |||||||||||||||||||
Other |
1,678 | 6,131 | 3,131 | 1,481 | 1,078 | ||||||||||||||||||||
Total general and administrative |
20,186 | 22,801 | 16,050 | 15,289 | 15,812 | ||||||||||||||||||||
Severance and restructuring |
190 | 52 | 15 | 2,480 | 314 | ||||||||||||||||||||
Depreciation, amortization and accretion |
11,270 | 11,174 | 10,689 | 8,781 | 7,304 | ||||||||||||||||||||
Operating expenses |
$ | 62,332 | $ | 62,338 | $ | 54,495 | $ | 53,133 | $ | 48,137 | |||||||||||||||
Capital expenditures |
$ | 6,054 | $ | 4,355 | $ | 1,806 | $ | 5,014 | $ | 1,725 |
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(in thousands)
12/31/09 | 3/31/10 | ||||||||
(unaudited) | |||||||||
Assets |
|||||||||
Current assets: |
|||||||||
Cash and cash equivalents |
$ | 109,591 | $ | 115,555 | |||||
Accounts receivable, net |
19,051 | 17,354 | |||||||
Taxes receivables |
5,117 | 5,136 | |||||||
Prepaid expenses and other |
3,016 | 4,267 | |||||||
Deferred income tax assets, net |
1,068 | 462 | |||||||
Total current assets |
137,843 | 142,774 | |||||||
Property and equipment, net |
41,295 | 36,180 | |||||||
Intangible assets, net |
226 | 466 | |||||||
Deferred income tax assets, net |
32,123 | 26,952 | |||||||
Other assets |
2,061 | 405 | |||||||
Total assets |
$ | 213,548 | $ | 206,777 | |||||
Liabilities and stockholders equity |
|||||||||
Current liabilities: |
|||||||||
Accounts payable and accrued liabilities |
$ | 35,214 | $ | 28,929 | |||||
Customer deposits |
888 | 837 | |||||||
Deferred revenue |
7,422 | 7,035 | |||||||
Total current liabilities |
43,524 | 36,801 | |||||||
Other long-term liabilities |
11,228 | 11,901 | |||||||
Total liabilities |
54,752 | 48,702 | |||||||
Stockholders equity: |
|||||||||
Preferred stock |
| | |||||||
Common stock |
2 | 2 | |||||||
Additional paid-in capital |
137,378 | 133,413 | |||||||
Retained earnings |
21,416 | 24,660 | |||||||
Total stockholders equity |
158,796 | 158,075 | |||||||
Total liabilities and stockholders equity |
$ | 213,548 | $ | 206,777 | |||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(unaudited and in thousands)
For the three months ended | |||||||||
3/31/09 | 3/31/10 | ||||||||
Cash flows from operating activities: |
|||||||||
Net income |
$ | 9,981 | $ | 8,885 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||
Depreciation, amortization and accretion |
11,270 | 7,304 | |||||||
Deferred income tax expense |
6,954 | 5,777 | |||||||
Amortization of stock based compensation |
727 | 263 | |||||||
Provisions for doubtful accounts, service credits and other |
1,517 | 1,225 | |||||||
Non-cash transaction tax accrual adjustments |
(1,394 | ) | (350 | ) | |||||
Loss on disposals of property and equipment |
| 59 | |||||||
Changes in assets and liabilities: |
|||||||||
Accounts receivable |
1,000 | 472 | |||||||
Prepaid expenses, intangibles and other assets |
345 | (31 | ) | ||||||
Accounts payable and accrued liabilities |
(2,373 | ) | (5,273 | ) | |||||
Customer deposits and deferred revenue |
(722 | ) | (438 | ) | |||||
Net cash provided by operating activities |
27,305 | 17,893 | |||||||
Cash flows from investing activities: |
|||||||||
Purchases of property and equipment |
(6,054 | ) | (1,725 | ) | |||||
Proceeds from disposals of property and equipment |
7 | 38 | |||||||
Net cash used in investing activities |
(6,047 | ) | (1,687 | ) | |||||
Cash flows from financing activities: |
|||||||||
Cash distributions to stockholders |
(28,517 | ) | (5,619 | ) | |||||
Purchase of common stock |
(2,698 | ) | (4,623 | ) | |||||
Net cash used in financing activities |
(31,215 | ) | (10,242 | ) | |||||
Net (decrease) increase in cash and cash equivalents |
(9,957 | ) | 5,964 | ||||||
Cash and cash equivalents, beginning of period |
75,032 | 109,591 | |||||||
Cash and cash equivalents, end of period |
$ | 65,075 | $ | 115,555 | |||||
Supplemental disclosure: |
|||||||||
Interest paid |
$ | | $ | 1 | |||||
Income taxes paid (state and local) |
$ | 15 | $ | | |||||
(a) | Slight variations in totals are due to rounding. |