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8-K - FORM 8-K - Spok Holdings, Inc | w82648e8vk.htm |
Exhibit 99.1
News Release
For Immediate Release
|
Contact: | Bob Lougee (800) 611-8488 | ||
Wednesday, May 4, 2011
|
bob.lougee@usamobility.com |
USA Mobility Reports First Quarter Operating Results;
Board Declares Regular Quarterly Dividend
Board Declares Regular Quarterly Dividend
Wireless Subscriber and Revenue Trends Improve;
Software Business Performance on Track;
Operating Expenses Again Reduced
Software Business Performance on Track;
Operating Expenses Again Reduced
Springfield, VA (May 4, 2011) USA Mobility, Inc. (Nasdaq: USMO), a leading provider
of wireless messaging, mobile voice and data and unified communications
solutions, today announced operating results for the first quarter ended March 31, 2011. In
addition, the Companys Board of Directors declared a regular quarterly dividend of $0.25 per
share, payable on June 24, 2011 to stockholders of record on May 20, 2011.
Total revenue for the first quarter was $57.3 million, including $52.5 million from the Companys
wireless business (USA Mobility Wireless) and $4.8 million from its software business (Amcom
Software), which the Company acquired on March 3, 2011. Software maintenance revenue was reduced
by $0.9 million for purchase accounting adjustments. First quarter revenue from the wireless
business was $52.5 million, compared to $54.6 million in the fourth quarter and $62.8 million in
the first quarter of 2010. Reported results for the software business include only the 29-day
period from March 3, 2011 to March 31, 2011. On a pro forma basis, reflecting Amcom results for
the full quarter and excluding purchase accounting adjustments, total revenue was $65.6 million.
First quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion)
totaled $17.9 million, including $17.0 million from wireless and $0.9 million from software. First
quarter EBITDA from wireless was $17.0 million, compared to $16.9 million in the prior quarter and
$22.0 million in the year-earlier quarter. On a pro forma basis, excluding purchase accounting
adjustments and one-time acquisition related expenses, first quarter EBITDA was $21.7 million or
33.0 percent of revenue.
Net income for the first quarter reflected 29 days of the software business as well as the
maintenance revenue purchase accounting adjustment. Also, operating expenses (excluding
depreciation, amortization and accretion)
reflected $2.9 million in one-time acquisition related
expenses, and depreciation, amortization and accretion increased $0.5 million due primarily to
acquired intangible assets. Additionally, the acquisition resulted in a $32.4 million reduction in
the deferred income tax asset valuation allowance and a corresponding reduction in income tax
expense. The result was net income for the first quarter of $40.7 million, or $1.82 per fully
diluted share, compared to $8.9 million, or $0.39 per fully diluted share, in the year-earlier
quarter. Excluding the purchase accounting adjustment to software maintenance revenue, the
one-time acquisition related expenses and the reduction in the deferred income tax asset valuation
allowance, net income for the first quarter would have been $10.9 million, or $0.49 per fully
diluted share
First quarter results included:
Wireless
| Net unit losses improved to 61,000 in the first quarter, compared to 83,000 in the first quarter of 2010, and the quarterly rate of unit erosion improved to 3.2 percent from 3.8 percent in the year-earlier quarter. The annual rate of subscriber erosion was 12.9 percent in the first quarter, compared to 19.5 percent in the year-ago quarter, and was the lowest annual unit loss rate in more than six years. Units in service at March 31, 2011 totaled 1,828,000, compared to 2,099,000 a year earlier. |
| The quarterly rate of revenue erosion improved to 3.9 percent from 4.0 percent in the first quarter of 2010, while the annual rate of revenue erosion was 16.3 percent in the first quarter, compared to 21.2 percent in the year-earlier quarter, reaching its lowest level in two years. |
| Total ARPU (average revenue per unit) was $8.72 in the first quarter, compared to $8.74 in the fourth quarter and $9.00 in the first quarter of 2010. |
Software
| Pro forma bookings for the quarter ended March 31, 2011 were $13.7 million and the backlog was $19.3 million at March 31, 2011. |
| Revenue from the software business totaled $4.8 million in the period from March 3, 2011 to March 31, 2011, of which $0.9 million was maintenance revenue and $3.9 million was operations revenue (which includes software, professional services and equipment sales). Pro forma revenue, excluding purchase accounting adjustments of $0.9 million, was $5.7 million for the 29-day period. |
| The pro forma renewal rate for maintenance in the first quarter was 99.5 percent. |
Total Company
| Operating expenses (excluding depreciation, amortization and accretion) totaled $39.5 million in the first quarter, with $35.6 million for wireless (which included $2.9 million of acquisition related expenses) and $3.9 million for software. |
| EBITDA margin (or EBITDA as a percentage of revenue) was 31.2 percent. EBITDA margin for wireless was 32.3 percent, compared to 30.9 percent in the fourth quarter and 35.0 percent in the year-earlier quarter. |
| Capital expenses were $1.5 million, compared to $1.7 million in the first quarter of 2010. |
| The Companys cash balance at March 31, 2011 was $23.4 million. |
| The outstanding debt balance was $51.9 million at an interest rate of 5.25 percent. |
Vincent D. Kelly, president and chief executive officer, said: Consistent with financial guidance
we provided earlier this year, USA Mobility continued to make excellent progress during the first
quarter, meeting or exceeding key performance goals for both our wireless and software businesses.
We were particularly pleased to see solid results from our recently acquired Amcom Software
subsidiary, as well as continued improvement in the pace of subscriber and revenue erosion in our
wireless business. At the same time, we continued to reduce expenses, maintain strong operating
margins, and generate sufficient cash flow to again return capital to stockholders in the form of
dividend distributions.
Kelly said the Company continued to focus sales and marketing efforts in its wireless business
during the quarter around its core market segments of Healthcare, Government and Large Enterprise.
These core segments represented approximately 88.9 percent of our direct subscriber base and 83.8
percent of our direct paging revenue at the end of the first quarter, compared to 86.8 percent and
81.5 percent, respectively, a year earlier. 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.
Commenting on the software business, Kelly said: Our integration of Amcom is on track and going
exceptionally well. To date we have initiated training programs for both sales teams to share
leads and cross sell products and services into our key market segments, especially Healthcare.
Additionally, we have received very positive feedback from our healthcare customer base with
respect to the merger and its impact on our future. Moving forward we expect to leverage
additional operational capabilities from each business, including customer relationships, technical
know-how, and back-office support. Despite the distraction of the acquisition in the first
quarter, Kelly noted, our software business generated strong bookings and has a $19.3 million
backlog going into the second quarter.
Shawn E. Endsley, chief financial officer, said the Company continued to reduce operating expenses
in the first quarter. Recurring operating expenses (excluding depreciation, amortization and
accretion) for wireless decreased
20.0 percent from the year-earlier quarter, Endsley noted,
exceeding the rate of wireless revenue decline. At the same time, ARPU remained strong and
capital expenses declined. With respect to Amcom, Endsley added, the addition of software
operations required a review of the recovery of our deferred income tax assets. The expected
additional taxable income from Amcom allowed for a reduction in the deferred income tax asset
valuation allowance and income tax expense of $32.4 million. Including software operations from
March 3, 2011, the combined businesses generated operating cash flow of $12.7 million in the
quarter.
Regarding financial guidance for 2011, Endsley said the Company is reiterating its prior guidance
for the full year for the wireless company as well as its full year pro-forma guidance for the
software company. Additionally, the software company guidance for financial reporting purposes has
been broken out separately in the schedules attached to this press release and has been adjusted to
reflect: (1) results for the partial year (March 3 to December 31); and (2) purchase accounting
adjustments for deferred revenue. As such, Endsley said the Company expects total revenues for
2011 to range from $224 million to $240 million, with wireless between $182 million and $192
million and software between $42 million and $48 million; operating expenses (excluding
depreciation, amortization and accretion) to range from $167 million to $176 million, with wireless
between $132 million and $136 million and software between $35 million and $40 million; and capital
expenses to range from $6 million to $9 million, with wireless between $5 million and $7 million
and software between $1 million and $2 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 5, 2011. Dial-in numbers for the call are 719-325-2488 or
888-857-6929. The pass code for the call is 2032739. A replay of the call will be available from
2:00 p.m. ET on May 5 until 11:59 p.m. on Thursday, May 19. Replay numbers are 719-457-0820 or
888-203-1112. The pass code for the replay is 2032739.
* * * * * * * * *
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,
through its Amcom Software subsidiary, it provides mission critical unified communications
solutions for contact centers, emergency management, mobile event notification and messaging.
USA Mobility also 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 and www.amcomsoftware.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.
FINANCIAL GUIDANCE
FINANCIAL GUIDANCE
(In millions) | ||||||||||||||||
Full Year | Adjusted | |||||||||||||||
Guidance Range (a) | Guidance Range (b) | |||||||||||||||
From | To | From | To | |||||||||||||
Revenues |
||||||||||||||||
Wireless |
$ | 182.0 | $ | 192.0 | $ | 182.0 | $ | 192.0 | ||||||||
Software |
57.0 | 63.0 | (c) | 42.0 | 48.0 | |||||||||||
Combined |
$ | 239.0 | $ | 255.0 | $ | 224.0 | $ | 240.0 | ||||||||
Operating Expenses (d) |
||||||||||||||||
Wireless |
$ | 136.0 | $ | 132.0 | $ | 136.0 | $ | 132.0 | ||||||||
Software |
47.0 | 43.0 | 40.0 | 35.0 | ||||||||||||
Combined |
$ | 183.0 | $ | 175.0 | $ | 176.0 | $ | 167.0 | ||||||||
Capital Expenses |
||||||||||||||||
Wireless |
$ | 7.0 | $ | 5.0 | $ | 7.0 | $ | 5.0 | ||||||||
Software |
2.0 | 1.0 | 2.0 | 1.0 | ||||||||||||
Combined |
$ | 9.0 | $ | 6.0 | $ | 9.0 | $ | 6.0 | ||||||||
(a) | The full year guidance assumes that the Amcom Software, Inc. (Software) acquisition had occurred as of January 1, 2011. | |
(b) | The adjusted guidance for 2011 reflects Softwares results from March 3, 2011, the date of acquisition, and reflects the fair value adjustment to maintenance revenues as required by generally accepted accounting principles. | |
(c) | Software revenues do NOT reflect any fair value adjustment to maintenance revenue as a result of purchase accounting. | |
(d) | Operating expenses exclude depreciation, amortization and accretion. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)
(In thousands, except share and per share amounts)
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)
(In thousands, except share and per share amounts)
Wireless | Software | |||||||||||
For three months | For the period | |||||||||||
ended March 31, | March 3, 2011 to | |||||||||||
2011 | March 31, 2011 | Total | ||||||||||
Revenue: |
||||||||||||
Paging service |
$ | 48,628 | $ | | $ | 48,628 | ||||||
Cellular |
684 | | 684 | |||||||||
Product sales |
2,344 | 4,799 | 7,143 | |||||||||
Other |
880 | | 880 | |||||||||
Total revenue |
52,536 | 4,799 | 57,335 | |||||||||
Operating expenses: |
||||||||||||
Cost of products sold |
663 | 1,762 | 2,425 | |||||||||
Service, rental and maintenance |
15,816 | 646 | 16,462 | |||||||||
Selling and marketing |
3,833 | 1,088 | 4,921 | |||||||||
General and administrative |
15,240 | 387 | 15,627 | |||||||||
Severance and restructuring |
33 | | 33 | |||||||||
Depreciation, amortization and accretion |
4,032 | 508 | 4,540 | |||||||||
Total operating expenses |
39,617 | 4,391 | 44,008 | |||||||||
% of total revenue |
75.4 | % | 91.5 | % | 76.8 | % | ||||||
Operating income |
12,919 | 408 | 13,327 | |||||||||
% of total revenue |
24.6 | % | 8.5 | % | 23.2 | % | ||||||
Interest expense, net |
(247 | ) | (9 | ) | (256 | ) | ||||||
Other income (expense), net |
205 | (2 | ) | 203 | ||||||||
Income before income tax (benefit) |
12,877 | 397 | 13,274 | |||||||||
Income tax (benefit) expense |
(27,583 | ) | 206 | (27,377 | ) | |||||||
Net income |
$ | 40,460 | $ | 191 | $ | 40,651 | ||||||
Basic net income per common share |
$ | 1.84 | ||||||||||
Diluted net income per common share |
$ | 1.82 | ||||||||||
Basic weighted average common shares outstanding |
22,063,393 | |||||||||||
Diluted weighted average common shares outstanding |
22,333,399 | |||||||||||
Reconciliation of operating income to EBITDA (c): |
||||||||||||
Operating income |
$ | 12,919 | $ | 408 | $ | 13,327 | ||||||
Add back: depreciation, amortization and accretion |
4,032 | 508 | 4,540 | |||||||||
EBITDA |
16,951 | 916 | 17,867 | |||||||||
% of total revenue |
32.3 | % | 19.1 | % | 31.2 | % |
(a) | Includes consolidated results of operations of USA Mobility Wireless, Inc. (Wireless) and Software. | |
(b) | Slight variations in totals are due to rounding. | |
(c) | 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.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(In thousands)
3/31/11 | 12/31/10 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 23,383 | $ | 129,220 | ||||
Accounts receivable, net |
21,134 | 13,419 | ||||||
Prepaid expenses and other |
4,412 | 2,638 | ||||||
Inventory, net |
2,432 | 160 | ||||||
Tax receivables |
8,050 | 5,004 | ||||||
Escrow receivables |
7,500 | | ||||||
Deferred income tax assets, net |
7,907 | 3,915 | ||||||
Total current assets |
74,818 | 154,356 | ||||||
Tax receivables |
191 | 191 | ||||||
Property and equipment, net |
26,248 | 27,135 | ||||||
Goodwill |
131,172 | | ||||||
Other
intangible assets, net |
43,477 | 511 | ||||||
Deferred income tax assets, net |
55,046 | 47,390 | ||||||
Escrow receivables |
7,500 | | ||||||
Deferred financing costs, net |
1,294 | | ||||||
Other assets |
1,150 | 1,075 | ||||||
Total assets |
$ | 340,896 | $ | 230,658 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 12,500 | $ | | ||||
Consideration payable |
7,500 | | ||||||
Accounts payable and accrued liabilities |
18,321 | 17,527 | ||||||
Accrued compensation and benefits |
8,600 | 9,968 | ||||||
Customer deposits |
3,266 | 718 | ||||||
Deferred revenue |
10,493 | 6,268 | ||||||
Total current liabilities |
60,680 | 34,481 | ||||||
Long-term debt, net of current portion |
39,447 | | ||||||
Consideration payable |
7,500 | | ||||||
Deferred revenue |
487 | | ||||||
Other long-term liabilities |
12,657 | 11,787 | ||||||
Total liabilities |
120,771 | 46,268 | ||||||
Commitments and contingencies |
||||||||
Stockholders equity: |
||||||||
Preferred stock |
| | ||||||
Common stock |
2 | 2 | ||||||
Additional paid-in capital |
130,355 | 129,696 | ||||||
Retained earnings |
89,768 | 54,692 | ||||||
Total stockholders equity |
220,125 | 184,390 | ||||||
Total liabilities and stockholders equity |
$ | 340,896 | $ | 230,658 | ||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(Unaudited and in thousands)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(Unaudited and in thousands)
For the three months ended | ||||||||
3/31/11 | 3/31/10 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 40,651 | $ | 8,885 | ||||
Adjustments to reconcile net income to net cash provided |
||||||||
by operating activities: |
||||||||
Depreciation, amortization and accretion |
4,540 | 7,304 | ||||||
Amortization of deferred financing costs |
45 | | ||||||
Deferred income tax expense |
(27,929 | ) | 5,777 | |||||
Amortization of stock based compensation |
225 | 263 | ||||||
Provisions for doubtful accounts, service credits and other |
700 | 1,225 | ||||||
Settlement of non-cash transaction taxes |
(119 | ) | (350 | ) | ||||
(Loss)/Gain on disposals of property and equipment |
(13 | ) | 59 | |||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
(49 | ) | 472 | |||||
Prepaid
expenses, intangibles and other assets |
(154 | ) | (31 | ) | ||||
Accounts payable and accrued liabilities |
(5,047 | ) | (5,273 | ) | ||||
Customer deposits |
(797 | ) | (51 | ) | ||||
Deferred revenue |
636 | (387 | ) | |||||
Net cash provided by operating activities |
12,689 | 17,893 | ||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(1,494 | ) | (1,725 | ) | ||||
Proceeds from disposals of property and equipment |
11 | 38 | ||||||
Acquisitions, net of cash acquired |
(134,217 | ) | | |||||
Net cash used in investing activities |
(135,700 | ) | (1,687 | ) | ||||
Cash flows from financing activities: |
||||||||
Issuance of debt |
24,044 | | ||||||
Deferred financing costs |
(1,339 | ) | | |||||
Cash dividends to stockholders |
(5,531 | ) | (5,619 | ) | ||||
Purchase of common stock |
| (4,623 | ) | |||||
Net cash provided (used) in financing activities |
17,174 | (10,242 | ) | |||||
Net (decrease) increase in cash and cash equivalents |
(105,837 | ) | 5,964 | |||||
Cash and cash equivalents, beginning of period |
129,220 | 109,591 | ||||||
Cash and cash equivalents, end of period |
$ | 23,383 | $ | 115,555 | ||||
Supplemental disclosure: |
||||||||
Interest paid |
$ | 263 | $ | 1 | ||||
Income taxes paid (state and local) |
$ | | $ | | ||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a)
(Unaudited and in thousands, except share and per share amounts)
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a)
(Unaudited and in thousands, except share and per share amounts)
For the three months ended | ||||||||||||||||||||
3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | ||||||||||||||||
Revenues: |
||||||||||||||||||||
Paging service |
$ | 48,628 | $ | 50,319 | $ | 52,778 | $ | 54,875 | $ | 57,832 | ||||||||||
Cellular |
684 | 499 | 532 | 624 | 708 | |||||||||||||||
Product sales |
2,344 | 2,784 | 2,805 | 2,732 | 3,358 | |||||||||||||||
Other |
880 | 1,046 | 595 | 881 | 886 | |||||||||||||||
Total revenues |
52,536 | 54,648 | 56,710 | 59,112 | 62,784 | |||||||||||||||
Operating expenses: |
||||||||||||||||||||
Cost of products sold |
663 | 1,051 | 819 | 1,134 | 1,209 | |||||||||||||||
Service, rental and maintenance |
15,816 | 16,221 | 16,821 | 17,175 | 18,941 | |||||||||||||||
Selling and marketing |
3,833 | 3,915 | 4,060 | 4,394 | 4,557 | |||||||||||||||
General and administrative |
15,240 | 14,829 | 12,907 | 15,924 | 15,812 | |||||||||||||||
Severance and restructuring |
33 | 1,738 | 86 | 41 | 314 | |||||||||||||||
Depreciation, amortization and accretion |
4,032 | 4,226 | 5,899 | 6,698 | 7,304 | |||||||||||||||
Total operating expenses |
39,617 | 41,980 | 40,592 | 45,366 | 48,137 | |||||||||||||||
% of total revenues |
75.4 | % | 76.8 | % | 71.6 | % | 76.7 | % | 76.7 | % | ||||||||||
Operating income |
12,919 | 12,668 | 16,118 | 13,746 | 14,647 | |||||||||||||||
% of total revenues |
24.6 | % | 23.2 | % | 28.4 | % | 23.3 | % | 23.3 | % | ||||||||||
Interest (expense) income, net |
(247 | ) | 3 | 6 | 4 | 3 | ||||||||||||||
Other income, net |
205 | 227 | 2,320 | 180 | 78 | |||||||||||||||
Income before income tax (benefit) expense |
12,877 | 12,898 | 18,444 | 13,930 | 14,728 | |||||||||||||||
Income tax (benefit) expense |
(27,583 | ) | (27,642 | ) | 3,060 | 841 | 5,843 | |||||||||||||
Net income |
$ | 40,460 | $ | 40,540 | $ | 15,384 | $ | 13,089 | $ | 8,885 | ||||||||||
Basic net income per common share |
$ | 1.84 | $ | 1.84 | $ | 0.70 | $ | 0.59 | $ | 0.39 | ||||||||||
Diluted net income per common share |
$ | 1.82 | $ | 1.82 | $ | 0.69 | $ | 0.58 | $ | 0.39 | ||||||||||
Basic weighted average common shares outstanding |
22,063,393 | 22,050,512 | 22,060,636 | 22,307,488 | 22,654,240 | |||||||||||||||
Diluted weighted average common shares outstanding |
22,333,399 | 22,323,551 | 22,372,786 | 22,620,707 | 22,967,192 | |||||||||||||||
Reconciliation of operating income to EBITDA (b): |
||||||||||||||||||||
Operating income |
$ | 12,919 | $ | 12,668 | $ | 16,118 | $ | 13,746 | $ | 14,647 | ||||||||||
Add back: depreciation, amortization and accretion |
4,032 | 4,226 | 5,899 | 6,698 | 7,304 | |||||||||||||||
EBITDA |
$ | 16,951 | $ | 16,894 | $ | 22,017 | $ | 20,444 | $ | 21,951 | ||||||||||
% of total revenues |
32.3 | % | 30.9 | % | 38.8 | % | 34.6 | % | 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. (WIRELESS)
UNITS IN SERVICE ACTIVITY (a)
(Unaudited and in thousands)
UNITS IN SERVICE ACTIVITY (a)
(Unaudited and in thousands)
For the three months ended | ||||||||||||||||||||
Units in service | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||
Beginning units in service |
||||||||||||||||||||
Direct one-way |
1,645 | 1,692 | 1,749 | 1,804 | 1,881 | |||||||||||||||
Direct two-way |
106 | 109 | 121 | 126 | 133 | |||||||||||||||
Total direct |
1,751 | 1,801 | 1,870 | 1,930 | 2,014 | |||||||||||||||
Indirect one-way |
68 | 75 | 82 | 90 | 101 | |||||||||||||||
Indirect two-way |
70 | 74 | 75 | 79 | 67 | |||||||||||||||
Total indirect |
138 | 149 | 157 | 169 | 168 | |||||||||||||||
Total beginning units in service |
1,889 | 1,950 | 2,027 | 2,099 | 2,182 | |||||||||||||||
Gross placements |
||||||||||||||||||||
Direct one-way |
46 | 45 | 58 | 62 | 53 | |||||||||||||||
Direct two-way |
4 | 6 | 4 | 6 | 5 | |||||||||||||||
Total direct |
50 | 51 | 62 | 68 | 58 | |||||||||||||||
Indirect one-way |
2 | 2 | 3 | 3 | 3 | |||||||||||||||
Indirect two-way |
0 | 1 | 1 | 1 | 15 | |||||||||||||||
Total indirect |
2 | 3 | 4 | 4 | 18 | |||||||||||||||
Total gross placements |
52 | 54 | 66 | 72 | 76 | |||||||||||||||
Gross disconnects |
||||||||||||||||||||
Direct one-way |
(94 | ) | (92 | ) | (115 | ) | (117 | ) | (130 | ) | ||||||||||
Direct two-way |
(8 | ) | (9 | ) | (16 | ) | (11 | ) | (12 | ) | ||||||||||
Total direct |
(102 | ) | (101 | ) | (131 | ) | (128 | ) | (142 | ) | ||||||||||
Indirect one-way |
8 | (9 | ) | (10 | ) | (11 | ) | (14 | ) | |||||||||||
Indirect two-way |
(19 | ) | (5 | ) | (2 | ) | (5 | ) | (3 | ) | ||||||||||
Total indirect |
(11 | ) | (14 | ) | (12 | ) | (16 | ) | (17 | ) | ||||||||||
Total gross disconnects |
(113 | ) | (115 | ) | (143 | ) | (144 | ) | (159 | ) | ||||||||||
Net gain / (loss) |
||||||||||||||||||||
Direct one-way |
(48 | ) | (47 | ) | (57 | ) | (55 | ) | (77 | ) | ||||||||||
Direct two-way |
(4 | ) | (3 | ) | (12 | ) | (5 | ) | (7 | ) | ||||||||||
Total direct |
(52 | ) | (50 | ) | (69 | ) | (60 | ) | (84 | ) | ||||||||||
Indirect one-way |
10 | (7 | ) | (7 | ) | (8 | ) | (11 | ) | |||||||||||
Indirect two-way |
(19 | ) | (4 | ) | (1 | ) | (4 | ) | 12 | |||||||||||
Total indirect |
(9 | ) | (11 | ) | (8 | ) | (12 | ) | 1 | |||||||||||
Total net change |
(61 | ) | (61 | ) | (77 | ) | (72 | ) | (83 | ) | ||||||||||
Ending units in service |
||||||||||||||||||||
Direct one-way |
1,597 | 1,645 | 1,692 | 1,749 | 1,804 | |||||||||||||||
Direct two-way |
102 | 106 | 109 | 121 | 126 | |||||||||||||||
Total direct |
1,699 | 1,751 | 1,801 | 1,870 | 1,930 | |||||||||||||||
Indirect one-way |
78 | 68 | 75 | 82 | 90 | |||||||||||||||
Indirect two-way |
51 | 70 | 74 | 75 | 79 | |||||||||||||||
Total indirect |
129 | 138 | 149 | 157 | 169 | |||||||||||||||
Total ending units in service |
1,828 | 1,889 | 1,950 | 2,027 | 2,099 | |||||||||||||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(Unaudited)
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(Unaudited)
For the three months ended | ||||||||||||||||||||
3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | ||||||||||||||||
ARPU |
||||||||||||||||||||
Direct one-way |
$ | 8.05 | $ | 8.05 | $ | 8.07 | $ | 8.05 | $ | 8.16 | ||||||||||
Direct two-way |
22.23 | 22.57 | 23.11 | 23.55 | 23.61 | |||||||||||||||
Total direct |
8.89 | 8.92 | 9.01 | 9.06 | 9.17 | |||||||||||||||