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Exhibit 99.1

 

LOGO

NEWS RELEASE

  

 

     

 

        

 

 

FOR IMMEDIATE RELEASE       CONTACT:    Bob Lougee    (800) 611-8488
Wednesday, February 22, 2012          bob.lougee@usamobility.com

USA Mobility Reports Fourth Quarter and 2011 Operating Results;

Board Declares Regular Quarterly Dividend

Wireless and Software Businesses Record Solid Results;

Operating Margins Remain High as Expenses Decline;

Cash Balance Exceeds Bank Debt at Year End

Springfield, VA (February 22, 2012) — 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 fourth quarter and year ended December 31, 2011. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per share, payable on March 30, 2012 to stockholders of record on March 16, 2012.

For the fourth quarter, consolidated revenue was $58.9 million, an increase compared to $54.6 million in the fourth quarter of 2010 and compared to $61.5 million in the third quarter of 2011. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $46.5 million in the fourth quarter, compared to $48.6 million in the third quarter and $54.6 million in the fourth quarter of 2010. Revenue from the Software business (Amcom Software) was $12.4 million, compared to revenue of $12.9 million in the third quarter. USA Mobility acquired Amcom Software on March 3, 2011. Software revenue in the fourth quarter included a fair value write down to maintenance revenue of $1.0 million for purchase accounting adjustments, compared to a write down of $1.5 million in the third quarter. Excluding the write down, Software revenue for the fourth quarter would have been $13.4 million.

Fourth quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) was $18.3 million, an increase compared to $16.9 million in the fourth quarter of 2010 and compared to $21.3 million in the third quarter. Fourth quarter of 2011 results were negatively impacted by the purchase accounting adjustments of $1.0 million and by $1.2 million in severance expenses for planned 2012 headcount reductions in the Wireless business. Excluding these adjustments, fourth quarter consolidated EBITDA would have been $20.6 million, or 34.3 percent of revenue.


Net income for the fourth quarter of 2011 was $18.9 million, or $0.84 per fully diluted share, compared to $10.4 million, or $0.46 per fully diluted share, in the third quarter of 2011. The increase in net income in the fourth quarter was largely the result of a benefit to income tax expense as a result of a decrease in the deferred income tax asset valuation allowance of $10.7 million, which adjusted the balance of deferred income tax assets to their estimated realizable amounts. Excluding the income tax benefit, the purchase accounting adjustments and severance expenses, net income for the fourth quarter of 2011 would have been $9.6 million, or $0.43 per fully diluted share. Results for the fourth quarter of 2010 were impacted by the benefit to income tax expense (due to the reduction of $32.9 million in the deferred income tax asset valuation allowance), a one-time litigation settlement expense of $2.1 million and by $1.7 million in severance expenses. Excluding these adjustments, net income in the fourth quarter of 2010 would have been $10.0 million, or $0.45 per fully diluted share.

For the full-year 2011, consolidated revenue totaled $242.9 million, compared to $233.3 million in 2010. In 2011, Wireless revenue was $199.7 million and Software revenue was $43.2 million. EBITDA for 2011 was $79.0 million, or 32.5 percent of revenue, compared to $81.3 million, or 34.9 percent of revenue, in 2010. Excluding the fair value write down of software maintenance revenue of $6.1 million and transaction costs related to the Amcom acquisition of $2.7 million, EBITDA for 2011 would have been $87.8 million, or 35.3 percent of revenue, and net income would have been $94.3 million, or $4.19 per fully diluted share. Net income for 2011 was $88.6 million, or $3.94 per fully diluted share, compared to a net income of $77.9 million, or $3.45 per fully diluted share, for 2010.

Key results and highlights for the fourth quarter and 2011 included:

Wireless

 

   

Net unit losses were 53,000 in the fourth quarter, compared to 58,000 in the third quarter and 61,000 in the year-earlier quarter, while the quarterly rate of unit erosion improved to 3.1 percent from 3.3 percent in the third quarter versus 3.2 percent in the fourth quarter of 2010. The annual rate of unit erosion improved to 11.7 percent in the fourth quarter, the lowest churn rate in the Company’s history, from 13.4 percent in the year-ago quarter. Units in service at December 31, 2011 totaled 1,668,000, compared to 1,889,000 at December 31, 2010.

 

   

The rate of revenue erosion in the fourth quarter was 4.1 percent, compared to 6.8 percent in the third quarter and 3.6 percent in the year-earlier quarter. The annual rate of revenue erosion was 14.8 percent in the fourth quarter, compared to 14.4 percent in the third quarter and 16.4 percent in the year-earlier quarter. The year-over-year rate of revenue decline was 14.4 percent in 2011 compared to 19.5 percent in 2010.

 

   

Total ARPU (average revenue per unit) was $8.51 in the fourth quarter, compared to $8.59 in the third quarter and $8.74 in the fourth quarter of 2010. For the year, ARPU totaled $8.64, compared to $8.84 in 2010.


   

Fourth quarter EBITDA margin for Wireless was 36.7 percent (or 39.3 percent excluding severance expenses), compared to 41.1 percent in the third quarter and 30.9 percent in the year-earlier quarter (or 37.8 percent excluding severance and one-time expenses).

Software

 

   

On a pro forma full year comparable basis (excluding purchase accounting adjustments and assuming full year ownership) Software revenue would have been $56.7 million in 2011, an increase of 11.2 percent over 2010 revenue of $51.0 million.

 

   

Bookings for the fourth quarter were $15.2 million, compared to $14.2 million in the third quarter and $15.2 million in the second quarter.

 

   

Backlog was $23.7 million at December 31st, compared to $21.3 million at September 30th and $20.5 million at June 30th.

 

   

Of the $12.4 million in Software revenue for the fourth quarter, $5.1 million was maintenance revenue and $7.3 million was operations revenue, compared to $4.6 million and $8.3 million, respectively, of the $12.9 million in Software revenue for the prior quarter.

 

   

The renewal rate for maintenance in the fourth quarter was 99.4 percent.

 

   

Fourth quarter EBITDA margin for Software was 10.3 percent, equal to the third quarter.

Total Company

 

   

Operating expenses (excluding depreciation, amortization and accretion) totaled $40.6 million in the fourth quarter, with $29.5 million for Wireless and $11.1 million for Software, compared to operating expenses of $40.2 million in the third quarter, with $28.6 million for Wireless and $11.6 million for Software. For 2011, operating expenses were $163.9 million, including $125.3 million for Wireless and $38.6 million for Software, compared to $151.9 million in 2010.

 

   

Capital expenses were $2.8 million in the fourth quarter, compared to $4.7 million in the year-earlier quarter. For 2011, capital expenses totaled $8.0 million, compared to $8.7 million in 2010.

 

   

Dividends paid to stockholders totaled $22.1 million in 2011.

 

   

At December 31, 2011, the Company’s cash balance was $53.7 million and the outstanding debt was $28.3 million. The interest rate on the debt is 3.68 percent.

 

   

The Company incurred $51.9 million in bank debt relating to the Amcom acquisition in 2011, and repaid a total of $23.7 million during the year.

 

   

The number of full-time equivalent employees at December 31, 2011 totaled 683, including 434 for Wireless and 249 for Software, compared to a total of 540 at year-end 2010 for Wireless.


“USA Mobility continued to make excellent progress in the fourth quarter and throughout 2011,” said Vincent D. Kelly, president and chief executive officer. “In addition to an outstanding operating performance, our acquisition of Amcom Software in March expanded the Company’s presence in the Healthcare, Government and Large Enterprise market segments beyond our traditional wireless offerings and into software and integrated communications. The acquisition not only underscored our long-term commitment to these growing market segments, but, more importantly, enabled us to begin repositioning the Company for long-term growth.” Kelly added: “Operating results for the quarter once again either met or exceeded our key performance targets and financial guidance. We continue to operate the Company profitably, maintaining high operating margins, reducing expenses, improving rates of subscriber and revenue erosion for Wireless. We also generated sufficient cash flow to repay enough debt to become net debt free on a cash basis at year end, while we continued to again return capital to stockholders in the form of dividends.”

Kelly said both Wireless and Software businesses recorded solid results. “On the Wireless side, EBITDA margin increased to 38.6 percent for 2011 (excluding one-time transaction costs), as Wireless costs declined faster than revenues for the sixth straight year. It was also the seventh consecutive year our Wireless business expanded cash flow margins. In addition, we were pleased to see further improvement in the annual rate of Wireless subscriber and revenue erosion, as the rate of revenue decline fell to 14.4 percent in 2011 from 19.5 percent in 2010 and subscriber churn improved to 11.7 percent, the lowest rate in the Company’s history.”

During the fourth quarter, Kelly noted the Company continued to focus sales and marketing efforts around its core market segments of Healthcare, Government and Large Enterprise. “These three segments represented 90.1 percent of our direct paging subscriber base and 85.6 percent of direct paging revenue in the fourth quarter,” he added. “Healthcare now represents 67.2 percent of paging’s direct customer base and continues to be our best performing market segment with the highest rate of gross placements and lowest rate of net unit loss.”

Kelly said the Software subsidiary also recorded a strong performance in 2011 with solid bookings and a growing backlog. “Excluding the fair value write down of maintenance revenue, Amcom realized record full-year pro forma revenue of $56.7 million. It also expanded its product offerings during the year, along with its customer base and product development pipeline.”

Christopher D. Heim, president of Amcom, said: “Software bookings increased in the fourth quarter from the prior quarter, with December marking our biggest month ever for bookings and giving us positive momentum as we enter 2012. During the quarter our sales team delivered an increase in systems sold to new customers in addition to sales of new modules and upgrades for existing customers. Demand continued to be strongest in North American hospitals where we sold software solutions for call center management, emergency notification, critical smartphone messaging, and clinical middleware. As a result, we ended the quarter with a solid backlog and pipeline of new business opportunities. Finally, as a result of the acquisition by USA Mobility, we continue to identify cross-selling opportunities for both Software and Wireless sales teams with the goal of enhancing sales prospects for each line of business.”


Kelly noted that USA Mobility returned $22.1 million in capital to stockholders during 2011 in the form of dividends. The Company paid quarterly cash dividends to stockholders totaling $1.00 per share during 2011. “Over the past seven years we have now returned $388.8 million to our stockholders in the form of dividends and distributions and $51.7 million in common stock repurchases.”

Commenting on USA Mobility’s capital allocation strategy Kelly stated, “We have maintained our quarterly dividend at $0.25 per share but are continuing to evaluate the amount of the dividend to ensure adequate capital retention within our business to meet our long-term strategic and operating needs. As we indicated in 2008 when we established the current dividend rate we are focused on maintaining a dividend policy that can be supported by the business and yields an attractive return on our stock price. Absent any acquisitions, we expect to use excess cash to pay off the balance of our existing revolving credit facility in the first half of this year. As for how the Company may choose to allocate capital going forward beyond cash dividends, share repurchases, and debt repayments, we will continue to weigh all options against other opportunities for creating long-term stockholder value. Such options may include additional acquisitions or other strategic investments that might provide enhanced revenue and cash flow stability and allow further use of our sizable deferred income tax assets.”

Shawn E. Endsley, chief financial officer, said: “Overall, we were pleased with our 2011 operating results, which met or exceeded our expectations. We were again able to reduce operating expenses for our Wireless business at a faster pace than the Wireless revenue decline and thus maintain strong EBITDA margins. Consolidated operating expenses (excluding depreciation, amortization and accretion) of $163.9 million included $125.3 million for Wireless and $38.6 million for Software. In 2011 the expenses for Wireless declined 17.5 percent from 2010, outpacing the 14.4 percent decrease in Wireless revenue. Expense savings were largely the result of continued progress in our network rationalization program, including lower site rents, along with various other cost savings initiatives made throughout the Company. As a result of these cost reduction efforts, combined with solid cash flow from our Wireless and Software businesses,” Endsley added, “the Company was net debt free at year end with an outstanding debt balance of $28.3 million and a consolidated cash balance of $53.7 million.”

Commenting on the Company’s previously provided financial guidance, Endsley said: “We are pleased that once again our results were either within or better than the provided guidance. For 2011, total reported revenue of $242.9 million was within our adjusted guidance range of $235 million to $248 million, operating expenses (excluding depreciation, amortization and accretion) of $163.9 million were within the range of $162 million to $174 million, and capital expenses of $8.0 million were within the range of $6.5 million to $9 million.”


Regarding financial guidance for 2012, Endsley said the Company expects total revenue to range from $214 million to $232 million, operating expenses (excluding depreciation, amortization and accretion) to range from $156.5 million to $163.5 million, and capital expenses to range from $7.5 million to $10 million.

* * * * * * * * * *

USA Mobility plans to host a conference call for investors on its fourth quarter and 2011 operating results at 10:00 a.m. Eastern Time on Thursday, February 23, 2012. Dial-in numbers for the call are 719-457-2702 or 888-500-6973. The pass code for the call is 5683242. A replay of the call will be available from 1:00 p.m. ET on February 23 until 11:59 p.m. on Thursday, March 8. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 5683242.

* * * * * * * * * *

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. In addition, through its Amcom Software subsidiary, it provides mission critical unified communications solutions for hospitals, contact centers, emergency management, mobile event notification and messaging. As a single-source provider, USA Mobility’s 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. USA Mobility also 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 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 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), (b)

(In thousands, except share, per share amounts and ARPU)

 

     For the year ended December 31,  
     2011     2010  
     Wireless     Software     Total     Wireless     Software      Total  

Revenue:

             

Paging service

   $ 184,317      $ —        $ 184,317      $ 215,804      $ —         $ 215,804   

Cellular

     2,612        —          2,612        2,363        —           2,363   

Product and related sales (c)

     10,133        43,206        53,339        11,679        —           11,679   

Other

     2,639        —          2,639        3,408        —           3,408   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total revenue

     199,701        43,206        242,907        233,254        —           233,254   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating expenses:

             

Cost of products sold (c)

     2,883        18,006        20,889        4,213        —           4,213   

Service, rental and maintenance (c)

     55,675        6,672        62,347        69,158        —           69,158   

Selling and marketing

     14,466        8,824        23,290        16,926        —           16,926   

General and administrative

     51,029        5,066        56,095        59,472        —           59,472   

Severance and restructuring

     1,293        —          1,293        2,179        —           2,179   

Depreciation, amortization and accretion

     13,973        5,361        19,334        24,127        —           24,127   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     139,319        43,929        183,248        176,075        —           176,075   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

% of total revenue

     69.8     101.7     75.4     75.5     —           75.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating income (loss)

     60,382        (723     59,659        57,179        —           57,179   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

% of total revenue

     30.2     -1.7     24.6     24.5     —           24.5

Interest (expense) income, net

     (2,236     (18     (2,254     16        —           16   

Other income (expense), net

     8,026        (76     7,950        2,805        —           2,805   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) before income tax benefit

     66,172        (817     65,355        60,000        —           60,000   

Income tax benefit

     22,994        290        23,284        17,898        —           17,898   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net income (loss)

   $ 89,166      $ (527   $ 88,639      $ 77,898      $ —         $ 77,898   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Basic net income per common share

       $ 4.01           $ 3.50   
      

 

 

        

 

 

 

Diluted net income per common share

       $ 3.94           $ 3.45   
      

 

 

        

 

 

 

Basic weighted average common shares outstanding

         22,083,942             22,265,961   
      

 

 

        

 

 

 

Diluted weighted average common shares outstanding

         22,509,871             22,567,030   
      

 

 

        

 

 

 

Reconciliation of operating income (loss) to EBITDA (d):

             

Operating income (loss)

   $ 60,382      $ (723   $ 59,659      $ 57,179      $ —         $ 57,179   

Add back: depreciation, amortization and accretion

     13,973        5,361        19,334        24,127        —           24,127   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

EBITDA

   $ 74,355      $ 4,638      $ 78,993      $ 81,306      $ —         $ 81,306   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

% of total revenue

     37.2     10.7     32.5     34.9     —           34.9

Key statistics:

             

Units in service

     1,668        —          1,668        1,889        —           1,889   

Average revenue per unit (ARPU)

   $ 8.64      $ —        $ 8.64      $ 8.84      $ —         $ 8.84   

Bookings

   $ —        $ 47,886      $ 47,886      $ —        $ —         $ —     

Backlog

   $ —        $ 23,712      $ 23,712      $ —        $ —         $ —     

 

(a) Slight variations in totals are due to rounding.
(b) Includes consolidated results of operations of USA Mobility Wireless, Inc. (“Wireless”) and Amcom Software, Inc. (“Software”). Software operations reflect financial results from March 3, 2011, the acquisition date.
(c) Wireless results were reduced by $382,000 for intercompany revenue and expenses.
(d) 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)

 

     12/31/11      12/31/10  

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 53,655       $ 129,220   

Accounts receivable, net

     20,523         13,419   

Prepaid expenses and other

     4,338         2,638   

Inventory

     2,268         160   

Tax receivables

     —           5,004   

Escrow receivables

     14,819         —     

Deferred income tax assets, net

     8,617         3,915   
  

 

 

    

 

 

 

Total current assets

     104,220         154,356   

Property and equipment, net

     22,421         27,135   

Goodwill

     130,968         —     

Other intangible assets, net

     38,757         511   

Deferred income tax assets, net

     51,600         47,390   

Other assets

     2,094         1,266   
  

 

 

    

 

 

 

Total assets

   $ 350,060       $ 230,658   
  

 

 

    

 

 

 

Liabilities and stockholders’ equity

     

Current liabilities:

     

Accounts payable and accrued liabilities

   $ 12,394       $ 14,794   

Accrued compensation and benefits

     12,854         12,701   

Consideration payable

     14,819         —     

Customer deposits

     1,806         718   

Deferred revenue

     14,693         6,268   
  

 

 

    

 

 

 

Total current liabilities

     56,566         34,481   

Long-term debt

     28,250         —     

Deferred revenue

     581         —     

Other long-term liabilities

     12,223         11,787   
  

 

 

    

 

 

 

Total liabilities

     97,620         46,268   
  

 

 

    

 

 

 

Commitments and contingencies

     

Stockholders’ equity:

     

Preferred stock

     —           —     

Common stock

     2         2   

Additional paid-in capital

     131,612         129,696   

Retained earnings

     120,826         54,692   
  

 

 

    

 

 

 

Total stockholders’ equity

     252,440         184,390   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 350,060       $ 230,658   
  

 

 

    

 

 

 

 

(a) Slight variations in totals are due to rounding.


USA MOBILITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)

(In thousands)

 

     For the twelve months ended  
     12/31/11     12/31/10  

Cash flows from operating activities:

    

Net income

   $ 88,639      $ 77,898   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation, amortization and accretion

     19,334        24,127   

Amortization of deferred financing costs

     608        —     

Deferred income tax benefit

     (25,067     (18,115

Amortization of stock based compensation

     1,530        817   

Provisions for doubtful accounts, service credits and other

     1,679        4,416   

Settlement of non-cash transaction taxes

     133        (1,402

Loss/(Gain) on disposals of property and equipment

     109        (12

(Gain) on disposals of narrow band PCS licenses

     (7,500     (2,000

Changes in assets and liabilities:

    

Accounts receivable

     (417     1,216   

Prepaid expenses, intangibles and other assets

     8,142        (164

Accounts payable and accrued liabilities

     (7,427     (6,038

Customer deposits and deferred revenue

     2,673        (1,324
  

 

 

   

 

 

 

Net cash provided by operating activities

     82,436        79,419   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     (7,952     (8,738

Proceeds from disposals of property and equipment

     55        75   

Proceeds from disposals of narrow band PCS licenses

     7,500        2,000   

Acquisitions, net of cash acquired

     (134,250     —     
  

 

 

   

 

 

 

Net cash used in investing activities

     (134,647     (6,663
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Issuance of debt

     24,044        —     

Repayment of debt

     (23,697     —     

Deferred financing costs

     (1,580     —     

Cash dividends to stockholders

     (22,121     (44,234

Purchase of common stock

     —          (8,893
  

 

 

   

 

 

 

Net cash used in financing activities

     (23,354     (53,127
  

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (75,565     19,629   

Cash and cash equivalents, beginning of period

     129,220        109,591   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 53,655      $ 129,220   
  

 

 

   

 

 

 

Supplemental disclosure:

    

Interest paid

   $ 1,504      $ —     
  

 

 

   

 

 

 

Income taxes paid

   $ 1,925      $ 434   
  

 

 

   

 

 

 

Non-cash financing activities

   $ 27,750      $ —     
  

 

 

   

 

 

 

 

(a) Slight variations in totals are due to rounding.


USA MOBILITY, INC.

CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a)

(Unaudited and in thousands, except share, per share amounts and ARPU)

 

     For the three months ended December 31,  
     2011     2010  
     Wireless     Software     Total     Wireless     Software      Total  

Revenue:

             

Paging service

   $ 43,249      $ —        $ 43,249      $ 50,319      $ —         $ 50,319   

Cellular

     414        —          414        499        —           499   

Product and related sales

     2,449        12,398        14,847        2,784        —           2,784   

Other

     421        —          421        1,046        —           1,046   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total revenue

     46,533        12,398        58,931        54,648        —           54,648   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating expenses:

             

Cost of products sold

     626        4,804        5,430        1,051        —           1,051   

Service, rental and maintenance

     12,454        2,024        14,478        16,221        —           16,221   

Selling and marketing

     3,275        2,576        5,851        3,915        —           3,915   

General and administrative

     11,888        1,722        13,610        14,829        —           14,829   

Severance and restructuring

     1,215        —          1,215        1,738        —           1,738   

Depreciation, amortization and accretion

     2,916        1,501        4,417        4,226        —           4,226   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total operating expenses

     32,374        12,627        45,001        41,980        —           41,980   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

% of total revenue

     69.6     101.8     76.4     76.8     —           76.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating income (loss)

     14,159        (229     13,930        12,668        —           12,668   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

% of total revenue

     30.4     -1.8     23.6     23.2     —           23.2

Interest (expense) income, net

     (395     (9     (404     3        —           3   

Other income, net

     122        9        131        227        —           227   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Income (loss) before income tax benefit

     13,886        (229     13,657        12,898        —           12,898   

Income tax benefit

     5,089        200        5,289        27,642        —           27,642   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Net income (loss)

   $ 18,975      $ (29   $ 18,946      $ 40,540      $ —         $ 40,540   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Basic net income per common share (b)

       $ 0.86           $ 1.84   
      

 

 

        

 

 

 

Diluted net income per common share (b)

       $ 0.84           $ 1.82   
      

 

 

        

 

 

 

Basic weighted average common shares outstanding

         22,094,197             22,050,512   
      

 

 

        

 

 

 

Diluted weighted average common shares outstanding

         22,577,312             22,232,551   
      

 

 

        

 

 

 

Reconciliation of operating income (loss) to EBITDA (c):

             

Operating income (loss)

   $ 14,159      $ (229   $ 13,930      $ 12,668      $ —         $ 12,668   

Add back: depreciation, amortization and accretion

     2,916        1,501        4,417        4,226        —           4,226   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

EBITDA

   $ 17,075      $ 1,272      $ 18,347      $ 16,894      $ —         $ 16,894   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

% of total revenue

     36.7     10.3     31.1     30.9     —           30.9

Key statistics:

             

Units in service

     1,668        —          1,668        1,889        —           1,889   

Average revenue per unit (ARPU)

   $ 8.51      $ —        $ 8.51      $ 8.74      $ —         $ 8.74   

Bookings

   $ —        $ 15,213      $ 15,213      $ —        $ —         $ —     

Backlog

   $ —        $ 23,712      $ 23,712      $ —        $ —         $ —     

 

(a) Slight variations in totals are due to rounding.
(b) Basic and diluted net income per common share is computed independently for each period presented. As a result, the sum of the quarterly basic and diluted net income per common share for the years ended December 31, 2011 and 2010 may not equal the total computed for the year.
(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 RESULTS OF OPERATIONS (a), (b)

(Unaudited and in thousands, except share, per share amounts and ARPU)

 

    For the three months ended  
    12/31/11     9/30/11     6/30/11     3/31/11     12/31/10     9/30/10     6/30/10     3/31/10  

Revenues:

               

Paging service

  $ 43,249      $ 45,121      $ 47,319      $ 48,628      $ 50,319      $ 52,778      $ 54,875      $ 57,832   

Cellular

    414        315        1,199        684        499        532        624        708   

Product and related sales

    14,847        15,464        15,885        7,143        2,784        2,805        2,732        3,358   

Other

    421        570        768        880        1,046        595        881        886   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    58,931        61,470        65,171        57,335        54,648        56,710        59,112        62,784   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

               

Cost of products sold

    5,430        5,951        7,078        2,430        1,051        819        1,134        1,209   

Service, rental and maintenance

    14,478        15,217        16,187        16,465        16,221        16,821        17,175        18,941   

Selling and marketing

    5,851        5,927        6,588        4,924        3,915        4,060        4,394        4,557   

General and administrative

    13,610        13,077        13,840        15,568        14,829        12,907        15,924        15,812   

Severance and restructuring

    1,215        28        17        33        1,738        86        41        314   

Depreciation, amortization and accretion

    4,417        5,080        5,298        4,539        4,226        5,899        6,698        7,304   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    45,001        45,280        49,008        43,959        41,980        40,592        45,366        48,137   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenues

    76.4     73.7     75.2     76.7     76.8     71.6     76.7     76.7

Operating income

    13,930        16,190        16,163        13,376        12,668        16,118        13,746        14,647   

% of total revenues

    23.6     26.3     24.8     23.3     23.2     28.4     23.3     23.3

Interest (expense) income, net

    (404     (732     (862     (256     3        6        4        3   

Other income (expense), net

    131        (1     7,666        154        227        2,320        180        78   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax benefit (expense)

    13,657        15,457        22,967        13,274        12,898        18,444        13,930        14,728   

Income tax benefit (expense)

    5,289        (5,010     (4,372     27,377        27,642        (3,060     (841     (5,843
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 18,946      $ 10,447      $ 18,595      $ 40,651      $ 40,540      $ 15,384      $ 13,089      $ 8,885   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share (c)

  $ 0.86      $ 0.47      $ 0.84      $ 1.84      $ 1.84      $ 0.70      $ 0.59      $ 0.39   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per common share (c)

  $ 0.84      $ 0.46      $ 0.82      $ 1.82      $ 1.82      $ 0.69      $ 0.58      $ 0.39   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted average common shares outstanding

    22,094,197        22,090,913        22,086,848        22,063,393        22,050,512        22,060,636        22,307,488        22,654,240   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average common shares outstanding

    22,577,312        22,573,064        22,551,862        22,333,399        22,323,551        22,372,786        22,620,707        22,967,192   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of operating income to EBITDA (d):

               

Operating income

  $ 13,930      $ 16,190      $ 16,163      $ 13,376      $ 12,668      $ 16,118      $ 13,746      $ 14,647   

Add back: depreciation, amortization and accretion

    4,417        5,080        5,298        4,539        4,226        5,899        6,698        7,304   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

  $ 18,347      $ 21,270      $ 21,461      $ 17,915      $ 16,894      $ 22,017      $ 20,444      $ 21,951   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenues

    31.1     34.6     39.2     32.3     30.9     38.8     34.6     35.0

Key statistics:

               

Units in service

    1,668        1,721        1,779        1,828        1,889        1,950        2,027        2,099   

Average revenue per unit (ARPU)

  $ 8.51      $ 8.59      $ 8.74      $ 8.72      $ 8.74      $ 8.85      $ 8.87      $ 9.00   

Bookings

  $ 15,213      $ 14,188      $ 15,158      $ 3,327      $ —        $ —        $ —        $ —     

Backlog

  $ 23,712      $ 21,313      $ 20,478      $ 18,869      $ —        $ —        $ —        $ —     

 

(a) Slight variations in totals are due to rounding.
(b) Software operations reflect financial results from March 3, 2011, the acquisition date.
(c) Basic and diluted net income per common share is computed independently for each period presented. As a result, the sum of the quarterly basic and diluted net income per common share for the years ended December 31, 2011 and 2010 may not equal the total computed for the year.
(d) 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.

CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a), (b)

(Unaudited and in thousands)

 

     For the three months ended  
     12/31/11      9/30/11      6/30/11     3/31/11      12/31/10      9/30/10      6/30/10      3/31/10  

Cost of products sold

                      

Payroll and related

   $ 2,277       $ 2,537       $ 2,156      $ 677       $ —         $ —         $ —         $ —     

Cost of sales

     2,724         3,132         4,263        1,536         1,051         819         1,134         1,209   

Other

     429         282         659        217         —           —           —           —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total cost of products sold

     5,430         5,951         7,078        2,430         1,051         819         1,134         1,209   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Service, rental and maintenance

                      

Site rent

     5,002         5,438         5,962        6,881         7,629         8,042         8,283         9,079   

Telecommunications

     2,598         2,732         2,880        3,102         3,066         3,341         3,467         3,831   

Payroll and related

     5,279         5,578         5,562        4,769         4,319         4,199         4,444         4,586   

Stock based compensation

     6         6         6        5         6         5         7         6   

Other

     1,593         1,463         1,777        1,708         1,201         1,234         974         1,439   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total service, rental and maintenance

     14,478         15,217         16,187        16,465         16,221         16,821         17,175         18,941   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Selling and marketing

                      

Payroll and related

     3,306         3,593         3,567        2,904         2,627         2,659         2,814         2,964   

Commissions

     1,539         1,443         1,948        1,414         1,007         1,163         1,367         1,164   

Stock based compensation

     16         16         16        17         17         17         22         17   

Other

     990         875         1,057        589         264         221         191         412   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total selling and marketing

     5,851         5,927         6,588        4,924         3,915         4,060         4,394         4,557   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

General and administrative

                      

Payroll and related

     6,268         5,778         6,781        6,072         6,118         5,719         6,621         6,912   

Stock based compensation

     415         392         432        203         223         15         242         240   

Bad debt

     363         346         (80     416         547         571         594         713   

Facility rent

     942         1,041         1,035        823         856         992         1,326         1,354   

Telecommunications

     440         494         490        470         480         518         603         657   

Outside services

     2,079         2,496         2,533        5,228         2,385         2,463         3,185         3,267   

Taxes, licenses and permits

     1,445         1,327         2,190        1,332         1,097         1,276         1,836         1,591   

Other

     1,658         1,203         459        1,024         3,123         1,353         1,517         1,078   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total general and administrative

     13,610         13,077         13,840        15,568         14,829         12,907         15,924         15,812   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Severance and restructuring

     1,215         28         17        33         1,738         86         41         314   

Depreciation, amortization and accretion

     4,417         5,080         5,298        4,539         4,226         5,899         6,698         7,304   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Operating expenses

     45,001       $ 45,280       $ 49,008      $ 43,959       $ 41,980       $ 40,592       $ 45,366       $ 48,137   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Capital expenditures

   $ 2,818       $ 1,779       $ 1,854      $ 1,501       $ 4,720       $ 1,730       $ 563       $ 1,725   

 

(a) Slight variations in totals are due to rounding.
(b) Software operations have been included from March 3, 2011, the acquisition date.


USA MOBILITY, INC. (WIRELESS)

UNITS IN SERVICE ACTIVITY (a)

(Unaudited and in thousands)

 

     For the three months ended  
     12/31/11     9/30/11     6/30/11     3/31/11     12/31/10     9/30/10     6/30/10     3/31/10  

Units in service

                

Beginning units in service

                

Direct one-way

     1,510        1,559        1,599        1,645        1,692        1,749        1,804        1,881   

Direct two-way

     93        97        100        106        109        121        126        133   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     1,603        1,656        1,699        1,751        1,801        1,870        1,930        2,014   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     68        71        75        68        75        82        90        101   

Indirect two-way

     50        52        54        70        74        75        79        67   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     118        123        129        138        149        157        169        168   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total beginning units in service

     1,721        1,779        1,828        1,889        1,950        2,027        2,099        2,182   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross placements

                

Direct one-way

     39        50        56        47        45        58        62        53   

Direct two-way

     4        5        5        3        6        4        6        5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     43        55        61        50        51        62        68        58   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     2        3        3        1        2        3        3        3   

Indirect two-way

     —          —          2        —          1        1        1        15   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     2        3        5        1        3        4        4        18   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross placements

     45        58        66        51        54        66        72        76   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnects

                

Direct one-way

     (84     (99     (94     (93     (92     (115     (117     (130

Direct two-way

     (7     (9     (10     (9     (9     (16     (11     (12
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     (91     (108     (104     (102     (101     (131     (128     (142
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     (7     (6     (10     6        (9     (10     (11     (14

Indirect two-way

     —          (2     (1     (16     (5     (2     (5     (3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     (7     (8     (11     (10     (14     (12     (16     (17
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross disconnects

     (98     (116     (115     (112     (115     (143     (144     (159
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain

                

Direct one-way

     (45     (49     (38     (46     (47     (57     (55     (77

Direct two-way

     (3     (4     (5     (6     (3     (12     (5     (7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     (48     (53     (43     (52     (50     (69     (60     (84
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     (5     (3     (7     7        (7     (7     (8     (11

Indirect two-way

     —          (1     1        (16     (4     (1     (4     12   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     (5     (4     (6     (9     (11     (8     (12     1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net change

     (53     (58     (49     (60     (61     (77     (72     (83
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending units in service

                

Direct one-way

     1,465        1,510        1,559        1,599        1,645        1,692        1,749        1,804   

Direct two-way

     90        93        97        100        106        109        121        126   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     1,555        1,603        1,656        1,699        1,751        1,801        1,870        1,930   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     63        68        71        75        68        75        82        90   

Indirect two-way

     50        50        52        54        70        74        75        79   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     113        118        123        129        138        149        157        169   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ending units in service

     1,668        1,721        1,779        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)

 

     For the three months ended  
     12/31/11     9/30/11     6/30/11     3/31/11     12/31/10     9/30/10     6/30/10     3/31/10  

ARPU

                

Direct one-way

   $ 7.90      $ 7.97      $ 8.10      $ 8.05      $ 8.05      $ 8.07      $ 8.05      $ 8.16   

Direct two-way

     21.27        21.60        22.05        22.23        22.57        23.11        23.55        23.61   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     8.68        8.77        8.92        8.89        8.92        9.01        9.06        9.17   

Indirect one-way

     7.49        7.28        7.57        8.44        9.13        9.60        8.87        8.78   

Indirect two-way

     4.43        4.77        4.77        4.31        3.98        4.09        4.25        4.84   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     6.16        6.22        6.40        6.49        6.48        6.86        6.65        7.04   

Total one-way

     7.89        7.94        8.08        8.07        8.09        8.14        8.09        8.19   

Total two-way

     15.29        15.71        16.04        15.41        14.96        15.54        16.06        16.76   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging ARPU

   $ 8.51      $ 8.59      $ 8.74      $ 8.72      $ 8.74      $ 8.85      $ 8.87      $ 9.00   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnect rate (b)

                

Direct one-way

     -5.6     -6.4     -6.0     -5.7     -5.5     -6.6     -6.5     -6.9

Direct two-way

     -7.7     -9.5     -9.3     -7.5     -8.5     -13.0     -8.5     -9.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -5.7     -6.5     -6.2     -5.8     -5.7     -7.0     -6.6     -7.1

Indirect one-way

     -9.8     -8.1     -8.1     11.9     -12.1     -12.5     -12.8     -13.7

Indirect two-way

     -1.8     -3.1     -4.5     -26.4     -5.8     -2.6     -6.8     -4.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     -6.4     -6.0     -6.6     -8.1     -8.9     -7.7     -9.9     -10.1

Total one-way

     -5.8     -6.4     -6.1     -5.0     -5.7     -6.8     -6.8     -7.3

Total two-way

     -5.6     -7.3     -7.6     -15.2     -7.4     -9.0     -7.9     -7.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging gross disconnect rate

     -5.7     -6.5     -6.2     -6.0     -5.9     -7.0     -6.9     -7.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain rate (c)

                

Direct one-way

     -3.0     -3.2     -2.5     -2.9     -2.7     -3.2     -3.1     -4.1

Direct two-way

     -3.3     -4.1     -3.1     -3.6     -4.6     -9.5     -4.2     -5.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -3.0     -3.2     -2.6     -3.0     -2.8     -3.6     -3.1     -4.2

Indirect one-way

     -7.4     -4.5     -5.3     14.6     -9.8     -9.2     -9.8     -10.5

Indirect two-way

     -1.0     -2.3     -3.0     -25.8     -4.6     -0.9     -4.7     17.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     -4.7     -3.6     -4.3     -6.6     -7.2     -5.1     -7.4     0.7

Total one-way

     -3.2     -3.2     -2.6     -2.2     -3.0     -3.5     -3.4     -4.4

Total two-way

     -2.5     -3.5     -3.1     -12.7     -4.6     -6.1     -4.4     2.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging net loss rate

     -3.1     -3.3     -2.7     -3.2     -3.2     -3.8     -3.5     -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. (WIRELESS)

SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)

(Unaudited)

 

     For the three months ended  
     12/31/11     9/30/11     6/30/11     3/31/11     12/31/10     9/30/10     6/30/10     3/31/10  

Gross placement rate (b)

                

Healthcare

     3.0     3.9     4.5     3.3     3.4     3.9     4.4     3.5

Government

     1.6     2.6     2.1     1.9     1.5     3.1     1.9     1.8

Large enterprise

     2.1     2.1     2.1     2.3     2.2     1.9     2.6     2.1

Other

     2.8     1.9     2.0     2.5     2.3     2.5     2.0     2.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     2.7     3.3     3.6     2.9     2.8     3.4     3.5     2.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     1.7     2.4     2.3     1.6     1.7     2.6     2.5     10.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     2.6     3.3     3.5     2.8     2.7     3.3     3.4     3.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnect rate (b)

                

Healthcare

     -4.9     -5.7     -5.0     -4.7     -4.4     -5.7     -5.2     -4.9

Government

     -7.4     -8.3     -8.7     -7.6     -7.3     -8.3     -8.3     -9.1

Large enterprise

     -5.7     -7.0     -7.1     -6.2     -7.0     -9.7     -8.3     -10.3

Other

     -8.7     -8.9     -9.0     -9.2     -8.6     -9.3     -9.6     -11.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -5.7     -6.5     -6.2     -5.8     -5.7     -7.0     -6.6     -7.1

Total indirect

     -6.4     -6.0     -6.6     -8.1     -8.9     -7.7     -9.9     -10.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -5.7     -6.5     -6.2     -6.0     -5.9     -7.0     -6.9     -7.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain rate (b)

                

Healthcare

     -1.9     -1.8     -0.5     -1.4     -1.1     -1.8     -0.8     -1.4

Government

     -5.8     -5.7     -6.6     -5.7     -5.9     -5.2     -6.4     -7.4

Large enterprise

     -3.6     -4.9     -5.0     -3.9     -4.8     -7.8     -5.7     -8.1

Other

     -5.9     -7.0     -6.9     -6.8     -6.3     -6.8     -7.6     -8.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -3.0     -3.2     -2.6     -3.0     -2.8     -3.6     -3.1     -4.2

Total indirect

     -4.7     -3.6     -4.3     -6.6     -7.2     -5.1     -7.4     0.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -3.1     -3.3     -2.7     -3.2     -3.2     -3.8     -3.5     -3.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period units in service % of total (b)

                

Healthcare

     62.6     61.7     60.9     59.5     58.3     57.1     56.1     54.5

Government

     11.9     12.3     12.6     13.1     13.5     13.9     14.1     14.4

Large enterprise

     9.5     9.6     9.8     10.0     10.1     10.2     10.7     10.9

Other

     9.2     9.5     9.7     10.3     10.8     11.2     11.4     12.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     93.2     93.1     93.0     92.9     92.7     92.4     92.3     91.9

Total indirect

     6.8     6.9     7.0     7.1     7.3     7.6     7.7     8.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     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. (WIRELESS)

SUPPLEMENTAL INFORMATION - DIRECT UNITS IN SERVICE AND CELLULAR

ACTIVATIONS (a)

(Unaudited)

 

     For the three months ended  
     12/31/11     9/30/11     6/30/11     3/31/11     12/31/10     9/30/10     6/30/10     3/31/10  

Account size ending units in service (000’s)

                

1 to 3 units

     65        69        74        79        84        88        95        101   

4 to 10 units

     40        42        45        48        52        54        58        62   

11 to 50 units

     92        99        106        114        123        130        140        149   

51 to 100 units

     56        61        68        72        76        79        86        92   

101 to 1,000 units

     380        399        411        424        436        456        483        499   

>1,000 units

     922        933        952        962        980        994        1,008        1,027   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     1,555        1,603        1,656        1,699        1,751        1,801        1,870        1,930   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period units in service % of total direct

                

1 to 3 units

     4.2     4.3     4.4     4.7     4.8     4.9     5.1     5.2

4 to 10 units

     2.6     2.6     2.7     2.8     2.9     3.0     3.1     3.2

11 to 50 units

     5.9     6.2     6.4     6.7     7.0     7.2     7.5     7.7

51 to 100 units

     3.6     3.8     4.1     4.2     4.4     4.4     4.6     4.8

101 to 1,000 units

     24.4     24.9     24.8     25.0     24.9     25.3     25.8     25.9

>1,000 units

     59.3     58.2     57.6     56.6     56.0     55.2     53.9     53.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     100.0     100.0     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Account size net loss rate

                

1 to 3 units

     -5.7     -5.9     -6.3     -6.2     -4.8     -7.0     -5.8     -7.6

4 to 10 units

     -6.6     -6.4     -6.8     -6.2     -5.0     -7.5     -6.0     -5.3

11 to 50 units

     -7.3     -6.4     -6.5     -7.7     -5.1     -7.3     -6.1     -5.8

51 to 100 units

     -8.4     -10.4     -5.4     -5.7     -4.2     -7.9     -6.5     -4.4

101 to 1,000 units

     -4.7     -2.9     -3.3     -2.7     -4.2     -5.6     -3.3     -3.7

>1,000 units

     -1.1     -2.1     -1.0     -1.8     -1.5     -1.3     -1.9     -3.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -3.0     -3.2     -2.6     -3.0     -2.8     -3.6     -3.1     -4.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Account size ARPU

                

1 to 3 units

   $ 15.46      $ 15.62      $ 15.74      $ 15.57      $ 15.57      $ 15.48      $ 15.37      $ 15.28   

4 to 10 units

     14.37        14.52        14.65        14.53        14.56        14.51        14.35        14.37   

11 to 50 units

     12.12        12.30        12.38        12.19        12.26        12.18        12.01        11.86   

51 to 100 units

     10.56        10.59        10.68        10.59        10.72        10.69        10.76        10.67   

101 to 1,000 units

     8.90        8.90        9.10        9.00        9.00        8.82        8.93        9.00   

>1,000 units

     7.37        7.42        7.49        7.47        7.43        7.64        7.63        7.80   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 8.68      $ 8.77      $ 8.92      $ 8.89      $ 8.92      $ 9.01      $ 9.06      $ 9.17   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cellular:

                

Number of activations

     1,476        1,236        4,370        2,191        1,990        1,885        1,885        2,354   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue from cellular services (000’s)

   $ 414      $ 315      $ 1,199      $ 684      $ 499      $ 532      $ 624      $ 708   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Slight variations in totals are due to rounding.


USA MOBILITY, INC.

2012 FINANCIAL GUIDANCE

 

     (In millions)  
     Full Year
Guidance Range
 
     From      To  

Revenues

     

Wireless

   $ 156.0       $ 166.0   

Software

     58.0         66.0   
  

 

 

    

 

 

 

Combined

   $ 214.0       $ 232.0   
  

 

 

    

 

 

 

Operating Expenses (a)

     

Wireless

   $ 112.0       $ 108.0   

Software

     51.5         48.5   
  

 

 

    

 

 

 

Combined

   $ 163.5       $ 156.5   
  

 

 

    

 

 

 

Capital Expenses

     

Wireless

   $ 9.0       $ 7.0   

Software

     1.0         0.5   
  

 

 

    

 

 

 

Combined

   $ 10.0       $ 7.5   
  

 

 

    

 

 

 

 

(a) Operating expenses exclude depreciation, amortization and accretion.