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Exhibit 99.1
(USA MOBILITY LOGO)
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
Subscriber and Revenue Trends Improve;
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 Company’s 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 Company’s 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 Mobility’s 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 Company’s 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 Mobility’s 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 Mobility’s 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)
(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)
(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)
(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)
(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)
(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 (000’s)
                                         
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 (000’s)
  $ 991     $ 775     $ 980     $ 795       $ 708  
       
 
(a)   Slight variations in totals are due to rounding.

 


 

USA MOBILITY, INC.
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)
(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)
(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.