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Exhibit 99.1

 

LOGO

 

FOR IMMEDIATE RELEASE    CONTACT:    Bob Lougee    (800) 611-8488
Thursday, November 1, 2012       bob.lougee@usamobility.com

USA Mobility Reports Third Quarter Operating Results;

Board Declares Regular Quarterly Dividend

Wireless Subscriber and Revenue Trends Continue to Improve;

Software Posts Record Bookings, Revenue and Backlog Increase;

Operating Expenses Decline

Springfield, VA (November 1, 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 third quarter ended September 30, 2012. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on December 7, 2012 to stockholders of record on November 16, 2012.

Consolidated revenue for the third quarter was $55.1 million, compared to $56.0 million in the second quarter and $61.5 million in the third quarter of 2011. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $41.4 million in the third quarter, compared to $42.8 million in the second quarter and $48.5 million in the third quarter of 2011. Third quarter revenue from the Software business (Amcom Software) was $13.7 million, compared to $13.2 million in the second quarter and $12.9 million in the year-earlier quarter.

Third quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $17.8 million, or 32.2 percent of revenue, compared to $18.4 million, or 32.9 percent of revenue, in the second quarter and $21.3 million, or 34.6 percent of revenue, in the year-earlier quarter. Third quarter EBITDA included $16.3 million from Wireless and $1.5 million from Software, compared to $19.9 million and $1.3 million, respectively, in the third quarter of 2011. Excluding purchase accounting adjustments, EBITDA for the third quarter of 2011 would have been $22.8 million, or 36.2 percent of revenue.

Net income for the third quarter was $8.0 million, or $0.36 per fully diluted share, compared to $10.4 million, or $0.46 per fully diluted share, in the third quarter of 2011. Excluding purchase accounting adjustments, net income for the third quarter of 2011 would have been $11.6 million, or $0.51 per fully diluted share.


Third quarter results included:

Wireless

 

   

Net unit losses totaled 37,000 in the third quarter, compared to 58,000 in the third quarter of 2011. The quarterly rate of net unit loss was 2.3 percent, compared to 3.3 percent in the year-earlier quarter, while the annual rate of unit erosion reached a record low of 10.2 percent versus 11.0 percent in the second quarter and 11.7 percent in the year-ago quarter. Units in service at September 30, 2012 totaled 1,546,000 compared to 1,721,000 a year earlier.

 

   

The quarterly rate of revenue erosion improved to 3.1 percent from 3.3 percent in the second quarter and 6.8 percent in the third quarter of 2011, while the annual rate of revenue erosion was 14.6 percent versus 17.9 percent in the second quarter and 14.4 percent in the year-earlier quarter.

 

   

Total ARPU (average revenue per unit) was $8.36 in the third quarter, compared to $8.45 in the second quarter and $8.59 in the third quarter of 2011.

 

   

Third quarter EBITDA margin for Wireless was 39.3 percent, compared to 39.2 percent in the second quarter and 41.1 percent in the year-earlier quarter.

Software

 

   

Bookings for the third quarter increased to a record $15.7 million from $15.1 million in the second quarter and $14.2 million in the year-earlier quarter.

 

   

The backlog was $26.4 million at September 30, 2012, compared to $25.4 million at June 30, 2012, and $21.3 million at September 30, 2011.

 

   

Third quarter Software revenue of $13.7 million included $6.6 million of maintenance revenue and $7.1 million of operations revenue, compared to $6.5 million and $6.7 million, respectively, of the $13.2 million in Software revenue for the prior quarter.

 

   

The renewal rate for maintenance in the third quarter was 97.6 percent.

Total Company

 

   

Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $37.3 million in the third quarter, with $25.1 million for Wireless and $12.2 million for Software, compared to $37.5 million in the second quarter, with $26.0 million for Wireless and $11.5 million for Software.

 

   

Capital expenses were $2.7 million, compared to $1.8 million in the third quarter of 2011.

 

   

Dividends paid to stockholders totaled $2.8 million for the third quarter.

 

   

The Company’s cash balance was $49.5 million at September 30, 2012.

 

   

The number of full-time equivalent employees at September 30, 2012 totaled 676, including 396 for Wireless and 280 for Software, compared to a total of 686 at June 30, 2012, including 411 for Wireless and 275 for Software.


Vincent D. Kelly, president and chief executive officer, said: “Both our Wireless and Software businesses again made excellent progress during the quarter. On the Wireless side, quarterly rates of subscriber and revenue erosion continued to improve while our annual rate of unit loss reached its best level in eight years. We also exceeded our key performance goals for gross additions and ARPU. Our Software business also turned in an outstanding quarter as revenue and bookings increased from the prior quarter and our backlog surpassed $26 million to reach an all-time high. Along with continued growth of its U.S.-based operations, Amcom also expanded internationally with the addition of new accounts in Australia and opening of a Middle East regional office in Dubai. At the same time, our combined business 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 and stock repurchases.”

Kelly said the Wireless business continued to expand account relationships in the Healthcare industry, its largest market segment, during the quarter. “Healthcare represented 70.6 percent of our direct subscriber base and 65.1 percent of direct paging revenue at September 30th, compared to 66.3 percent and 60.7 percent, respectively, a year earlier. Healthcare also continued to be our best performing market segment with the highest percentage of direct gross additions (79.2 percent) and the lowest rate of direct net unit loss (0.9 percent),” Kelly noted, “as healthcare providers continue to benefit from the reliability and cost advantages of paging for their most critical messaging needs.”

Commenting on Software results, Kelly said: “Amcom delivered a quarter-over-quarter increase in revenue in the third quarter, along with record bookings and a growing backlog and sales pipeline at September 30th. Although we closed much of our business in the North American healthcare market, we made considerable inroads in the Middle East, including the sale of a full suite of healthcare solutions to a major hospital in the Gulf Region. We also had strong sales among public safety organizations as a record number of military and municipal 911 emergency response centers chose Amcom’s dispatch solution. Indeed, we are seeing an increasing number of customers from multiple business segments select Amcom due to the breadth of our critical communications solutions, which range from call center management, clinical alerting middleware, critical smartphone communications and emergency notification.”

Kelly added: “As previously announced, we recently made several key management changes at our software subsidiary. Colin Balmforth joined Amcom as president in September and Lynn Danko was named chief financial officer in mid-October. Along with the promotions in July of Kate Bolseth to chief operating officer and Sean Collins to executive vice president of sales, Amcom now has an exceptionally strong management team in place to successfully pursue our worldwide business goals.”

Kelly said USA Mobility repurchased 434,982 shares of its common stock during the quarter for approximately $4.9 million (excluding commissions) after renewal of the Company’s stock repurchase program in July. The plan, which extends through December 31, 2013, had been suspended since March 2011 when the Company acquired Amcom. Since the buy back program began in 2008, the Company has repurchased approximately 6.0 million shares of its common stock for approximately $56.6 million at an average price of $9.45 per share.


Shawn E. Endsley, chief financial officer, said the Company continued to reduce operating expenses in the third quarter, principally in its Wireless business. “Operating expenses (excluding depreciation, amortization and accretion) for Wireless decreased 12.1 percent from the year-earlier quarter. In addition, the Wireless business continued to generate solid revenues during the quarter driven largely by a stable ARPU and improved unit churn.” Endsley also noted that the Company’s balance sheet remained strong with a cash balance of $49.5 million at September 30th and no outstanding debt.

With respect to financial guidance for 2012, Endsley said the Company is maintaining its prior guidance for consolidated results for the full year, with total revenues expected to range from $215 million to $227 million, operating expenses (excluding depreciation, amortization and accretion) to range from $154 million to $162 million, and capital expenses to range from $7.1 million to $9.5 million.

* * * * * * * * *

USA Mobility plans to host a conference call for investors on its third quarter results at 10:00 a.m. Eastern Time on Friday, November 2, 2012. Dial-in numbers for the call are 719-325-2452 or 888-430-8705. The pass code for the call is 6474706. A replay of the call will be available from 1:00 p.m. ET on November 2 until 11:59 p.m. on Friday November 16. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 6474706.

* * * * * * * * *

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 software subsidiary, Amcom Software, Inc., USA Mobility provides mission critical unified communications solutions nationally and internationally for hospitals, contact centers, and other customers that require emergency management, mobile event notification and messaging services. As a single-source provider, the Company’s wireless subsidiary, USA Mobility Wireless, focuses on the business-to-business marketplace and supplying wireless connectivity solutions to organizations nationwide. USA Mobility Wireless operates the largest one-way paging and advanced two-way paging networks in the United States. It also offers mobile voice and data services through Sprint Nextel and T-Mobile, including BlackBerry® smartphones and GPS location applications. Product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. USA Mobility Wireless 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 nine months ended September 30,  
     2012     2011  
     Wireless     Software     Total     Wireless     Software     Total  

Revenue:

            

Paging service

   $ 121,658      $ —        $ 121,658      $ 141,068      $ —        $ 141,068   

Cellular

     877        —          877        2,198        —          2,198   

Product and related sales (c)

     5,101        39,324        44,425        7,684        30,808        38,492   

Other

     852        —          852        2,218        —          2,218   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     128,488        39,324        167,812        153,168        30,808        183,976   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

            

Cost of products sold (c)

     516        14,621        15,137        2,257        13,202        15,459   

Service, rental and maintenance (c)

     34,737        7,189        41,926        43,221        4,648        47,869   

Selling and marketing

     8,794        8,821        17,615        11,191        6,248        17,439   

General and administrative

     33,869        4,260        38,129        39,141        3,344        42,485   

Severance and restructuring

     9        37        46        78        —          78   

Depreciation, amortization and accretion

     8,613        5,232        13,845        11,057        3,861        14,918   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     86,538        40,160        126,698        106,945        31,303        138,248   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     67.4     102.1     75.5     69.8     101.6     75.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     41,950        (836     41,114        46,223        (495     45,728   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     32.6     -2.1     24.5     30.2     -1.6     24.9

Interest expense, net

     (318     —          (318     (1,841     (9     (1,850

Other income (expense), net

     461        (35     426        7,904        (84     7,820   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax (expense) benefit

     42,093        (871     41,222        52,286        (588     51,698   

Income tax (expense) benefit

     (16,584     319        (16,265     17,905        90        17,995   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 25,509      $ (552   $ 24,957      $ 70,191      $ (498   $ 69,693   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

       $ 1.13          $ 3.16   
      

 

 

       

 

 

 

Diluted net income per common share

       $ 1.11          $ 3.10   
      

 

 

       

 

 

 

Basic weighted average common shares outstanding

         22,069,785            22,080,485   
      

 

 

       

 

 

 

Diluted weighted average common shares outstanding

         22,534,127            22,487,374   
      

 

 

       

 

 

 

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

            

Operating income (loss)

   $ 41,950      $ (836   $ 41,114      $ 46,223      $ (495   $ 45,728   

Add back: depreciation, amortization and accretion

     8,613        5,232        13,845        11,057        3,861        14,918   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 50,563      $ 4,396      $ 54,959      $ 57,280      $ 3,366      $ 60,646   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     39.4     11.2     32.8     37.4     10.9     33.0

Key statistics:

            

Units in service

     1,546        —          1,546        1,721        —          1,721   

Average revenue per unit (ARPU)

   $ 8.41      $ —        $ 8.41      $ 8.68      $ —        $ 8.68   

Bookings

   $ —        $ 43,173      $ 43,173      $ —        $ 32,673      $ 32,673   

Backlog

   $ —        $ 26,448      $ 26,448      $ —        $ 21,313      $ 21,313   

 

(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 reflect eliminations 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)

 

     9/30/12      12/31/11  
     (Unaudited)         

Assets

     

Current assets:

     

Cash and cash equivalents

     49,545       $ 53,655   

Accounts receivable, net

     21,356         20,523   

Prepaid expenses and other

     4,244         4,338   

Inventory

     3,222         2,268   

Escrow receivables

     275         14,819   

Deferred income tax assets, net

     5,062         8,617   
  

 

 

    

 

 

 

Total current assets

     83,704         104,220   

Property and equipment, net

     20,777         22,421   

Goodwill

     132,781         130,968   

Other intangible assets, net

     35,346         38,757   

Deferred income tax assets, net

     39,916         51,600   

Other assets

     1,812         2,094   
  

 

 

    

 

 

 

Total assets

   $ 314,336       $ 350,060   
  

 

 

    

 

 

 

Liabilities and stockholders’ equity

     

Current liabilities:

     

Accounts payable and accrued liabilities

   $ 12,916       $ 12,394   

Accrued compensation and benefits

     13,195         12,854   

Consideration payable

     275         14,819   

Customer deposits

     1,475         1,806   

Deferred revenue

     16,369         14,693   
  

 

 

    

 

 

 

Total current liabilities

     44,230         56,566   

Long-term debt

     —           28,250   

Deferred revenue

     471         581   

Other long-term liabilities

     9,809         12,223   
  

 

 

    

 

 

 

Total liabilities

     54,510         97,620   
  

 

 

    

 

 

 

Commitments and contingencies

     

Stockholders’ equity:

     

Preferred stock

     —           —     

Common stock

     2         2   

Additional paid-in capital

     128,028         131,612   

Retained earnings

     131,796         120,826   
  

 

 

    

 

 

 

Total stockholders’ equity

     259,826         252,440   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 314,336       $ 350,060   
  

 

 

    

 

 

 

 

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


USA MOBILITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)

(Unaudited and in thousands)

 

     For the nine months ended  
     9/30/12     9/30/11  

Cash flows from operating activities:

    

Net income

   $ 24,957      $ 69,693   

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

    

Depreciation, amortization and accretion

     13,845        14,918   

Amortization of deferred financing costs

     194        521   

Deferred income tax expense (benefit)

     15,239        (19,072

Amortization of stock based compensation

     902        1,093   

Provisions for doubtful accounts, service credits and other

     1,239        989   

(Adjustments)/Settlement of transaction taxes

     (366     243   

(Gain)/Loss on disposals of property and equipment

     (159     118   

Gain on disposals of narrow band PCS licenses

     —          (7,500

Changes in assets and liabilities:

    

Accounts receivable

     (2,062     (518

Prepaid expenses, intangibles and other assets

     (531     6,752   

Accounts payable and accrued liabilities

     (1,788     (9,988

Customer deposits and deferred revenue

     1,235        3,578   
  

 

 

   

 

 

 

Net cash provided by operating activities

     52,705        60,827   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     (7,135     (5,134

Proceeds from disposals of property and equipment

     332        45   

Proceeds from disposals of narrow band PCS licenses

     —          7,500   

Acquisitions, net of cash acquired

     (3,000     (134,217
  

 

 

   

 

 

 

Net cash used in investing activities

     (9,803 )      (131,806 ) 
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Issuance of debt

     —          24,044   

Repayment of debt

     (28,250     (23,697

Deferred financing costs

     —          (1,408

Cash dividends to stockholders

     (13,829     (16,591

Purchase of common stock

     (4,933     —     
  

 

 

   

 

 

 

Net cash used in financing activities

     (47,012 )      (17,652 ) 
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (4,110     (88,631

Cash and cash equivalents, beginning of period

     53,655        129,220   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 49,545      $ 40,589   
  

 

 

   

 

 

 

Supplemental disclosure:

    

Interest paid

   $ 285      $ 1,198   
  

 

 

   

 

 

 

Income taxes paid

   $ 1,376      $ 1,658   
  

 

 

   

 

 

 

Non-cash financing activities

   $ —        $ 27,750   
  

 

 

   

 

 

 

 

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


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 September 30,  
     2012     2011  
     Wireless     Software     Total     Wireless     Software     Total  

Revenue:

            

Paging service

   $ 39,235      $ —        $ 39,235      $ 45,121      $ —        $ 45,121   

Cellular

     314        —          314        315        —          315   

Product and related sales (c)

     1,645        13,676        15,321        2,535        12,929        15,464   

Other

     246        —          246        570        —          570   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     41,440        13,676        55,116        48,541        12,929        61,470   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

            

Cost of products sold

     187        4,918        5,105        423        5,528        5,951   

Service, rental and maintenance (c)

     11,239        2,492        13,731        13,194        2,023        15,217   

Selling and marketing

     2,774        3,269        6,043        3,412        2,515        5,927   

General and administrative

     10,935        1,531        12,466        11,550        1,527        13,077   

Severance and restructuring

     —          —          —          28        —          28   

Depreciation, amortization and accretion

     2,944        1,780        4,724        3,407        1,673        5,080   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     28,079        13,990        42,069        32,014        13,266        45,280   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     67.8     102.3     76.3     66.0     102.6     73.7

Operating income (loss)

     13,361        (314     13,047        16,527        (337     16,190   

% of total revenue

     32.2     -2.3     23.7     34.0     -2.6     26.3

Interest expense, net

     (64     —          (64     (732     —          (732

Other income (expense), net

     68        (16     52        7        (8     (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax (expense) benefit

     13,365        (330     13,035        15,802        (345     15,457   

Income tax (expense) benefit

     (5,093     106        (4,987     (5,010     —          (5,010
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 8,272      $ (224   $ 8,048      $ 10,792      $ (345   $ 10,447   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

       $ 0.37          $ 0.47   
      

 

 

       

 

 

 

Diluted net income per common share

       $ 0.36          $ 0.46   
      

 

 

       

 

 

 

Basic weighted average common shares outstanding

         21,973,473            22,090,913   
      

 

 

       

 

 

 

Diluted weighted average common shares outstanding

         22,399,934            22,573,064   
      

 

 

       

 

 

 

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

            

Operating income (loss)

   $ 13,361      $ (314   $ 13,047      $ 16,527      $ (337   $ 16,190   

Add back: depreciation, amortization and accretion

     2,944        1,780        4,724        3,407        1,673        5,080   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 16,305      $ 1,466      $ 17,771      $ 19,934      $ 1,336      $ 21,270   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     39.3     10.7     32.2     41.1     10.3     34.6

Key statistics:

            

Units in service

     1,546        —          1,546        1,721        —          1,721   

Average revenue per unit (ARPU)

   $ 8.36      $ —        $ 8.36      $ 8.59      $ —        $ 8.59   

Bookings

   $ —        $ 15,670      $ 15,670      $ —        $ 14,188      $ 14,188   

Backlog

   $ —        $ 26,448      $ 26,448      $ —        $ 21,313      $ 21,313   

 

(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 reflect eliminations of 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 RESULTS OF OPERATIONS (a), (b)

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

 

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

Revenues:

              

Paging service

   $ 39,235      $ 40,548      $ 41,875      $ 43,249      $ 45,121      $ 47,319      $ 48,628   

Cellular

     314        286        277        414        315        1,199        684   

Product and related sales

     15,321        14,847        14,257        14,847        15,464        15,885        7,143   

Other

     246        280        326        421        570        768        880   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     55,116        55,961        56,735        58,931        61,470        65,171        57,335   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

              

Cost of products sold

     5,105        5,216        4,816        5,430        5,951        7,078        2,430   

Service, rental and maintenance

     13,731        13,892        14,303        14,478        15,217        16,187        16,465   

Selling and marketing

     6,043        5,919        5,653        5,851        5,927        6,588        4,924   

General and administrative

     12,466        12,494        13,169        13,610        13,077        13,840        15,568   

Severance and restructuring

     —          24        22        1,215        28        17        33   

Depreciation, amortization and accretion

     4,724        4,606        4,515        4,417        5,080        5,298        4,539   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     42,069        42,151        42,478        45,001        45,280        49,008        43,959   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenues

     76.3     75.3     74.9     76.4     73.7     75.2     76.7

Operating income

     13,047        13,810        14,257        13,930        16,190        16,163        13,376   

% of total revenues

     23.7     24.7     25.1     23.6     26.3     24.8     23.3

Interest expense, net

     (64     (66     (188     (404     (732     (862     (256

Other income (expense), net

     52        436        (62     131        (1     7,666        154   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax (expense) benefit

     13,035        14,180        14,007        13,657        15,457        22,967        13,274   

Income tax (expense) benefit

     (4,987     (5,733     (5,545     5,289        (5,010     (4,372     27,377   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 8,048      $ 8,447      $ 8,462      $ 18,946      $ 10,447      $ 18,595      $ 40,651   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

   $ 0.37      $ 0.38      $ 0.38      $ 0.86      $ 0.47      $ 0.84      $ 1.84   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per common share

   $ 0.36      $ 0.37      $ 0.37      $ 0.84      $ 0.46      $ 0.82      $ 1.82   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted average common shares outstanding

     21,973,473        22,130,397        22,106,543        22,094,197        22,090,913        22,086,848        22,063,393   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average common shares outstanding

     22,399,934        22,613,517        22,589,483        22,577,312        22,573,064        22,551,862        22,333,399   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of operating income to EBITDA (c):

              

Operating income

   $ 13,047      $ 13,810      $ 14,257      $ 13,930      $ 16,190      $ 16,163      $ 13,376   

Add back: depreciation, amortization and accretion

     4,724        4,606        4,515        4,417        5,080        5,298        4,539   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 17,771      $ 18,416      $ 18,772      $ 18,347      $ 21,270      $ 21,461      $ 17,915   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenues

     32.2     32.9     33.1     31.1     34.6     32.9     31.2

Key statistics:

              

Units in service

     1,546        1,583        1,617        1,668        1,721        1,779        1,828   

Average revenue per unit (ARPU)

   $ 8.36      $ 8.45      $ 8.50      $ 8.51      $ 8.59      $ 8.74      $ 8.72   

Bookings

   $ 15,670      $ 15,085      $ 12,417      $ 15,213      $ 14,188      $ 15,158      $ 3,327   

Backlog

   $ 26,448      $ 25,353      $ 23,747      $ 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) 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  
     9/30/12      6/30/12     3/31/12      12/31/11      9/30/11      6/30/11     3/31/11  

Cost of products sold

                  

Payroll and related

   $ 2,427       $ 2,324      $ 2,368       $ 2,277       $ 2,537       $ 2,156      $ 677   

Cost of sales

     2,195         2,434        2,037         2,724         3,132         4,263        1,536   

Other

     483         458        411         429         282         659        217   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total cost of products sold

     5,105         5,216        4,816         5,430         5,951         7,078        2,430   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Service, rental and maintenance

                  

Site rent

     4,326         4,421        4,791         5,002         5,438         5,962        6,881   

Telecommunications

     2,257         2,346        2,312         2,598         2,732         2,880        3,102   

Payroll and related

     5,309         5,360        5,529         5,279         5,578         5,562        4,769   

Stock based compensation

     6         6        6         6         6         6        5   

Other

     1,833         1,759        1,665         1,593         1,463         1,777        1,708   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total service, rental and maintenance

     13,731         13,892        14,303         14,478         15,217         16,187        16,465   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Selling and marketing

                  

Payroll and related

     3,504         3,544        3,559         3,306         3,593         3,567        2,904   

Commissions

     1,335         1,343        1,253         1,539         1,443         1,948        1,414   

Stock based compensation

     19         18        16         16         16         16        17   

Other

     1,185         1,014        825         990         875         1,057        589   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total selling and marketing

     6,043         5,919        5,653         5,851         5,927         6,588        4,924   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

General and administrative

                  

Payroll and related

     5,851         5,972        6,490         6,268         5,778         6,781        6,072   

Stock based compensation

     435         (19     415         415         392         432        203   

Bad debt

     275         270        234         363         346         (80     416   

Facility rent

     903         868        806         942         1,041         1,035        823   

Telecommunications

     390         443        412         440         494         490        470   

Outside services

     2,353         2,458        2,447         2,079         2,496         2,533        5,228   

Taxes, licenses and permits

     1,249         1,426        1,501         1,445         1,327         2,190        1,332   

Other

     1,010         1,076        864         1,658         1,203         459        1,024   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total general and administrative

     12,466         12,494        13,169         13,610         13,077         13,840        15,568   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Severance and restructuring

     —           24        22         1,215         28         17        33   

Depreciation, amortization and accretion

     4,724         4,606        4,515         4,417         5,080         5,298        4,539   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating expenses

   $ 42,069       $ 42,151      $ 42,478       $ 45,001       $ 45,280       $ 49,008      $ 43,959   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Capital expenditures

   $ 2,696       $ 2,888      $ 1,551       $ 2,818       $ 1,779       $ 1,854      $ 1,501   

 

(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  
     9/30/12     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

Units in service

              

Beginning units in service

              

Direct one-way

     1,395        1,423        1,465        1,510        1,559        1,599        1,645   

Direct two-way

     82        85        90        93        97        100        106   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     1,477        1,508        1,555        1,603        1,656        1,699        1,751   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     58        60        63        68        71        75        68   

Indirect two-way

     48        49        50        50        52        54        70   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     106        109        113        118        123        129        138   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total beginning units in service

     1,583        1,617        1,668        1,721        1,779        1,828        1,889   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross placements

              

Direct one-way

     45        49        41        39        50        56        47   

Direct two-way

     3        4        3        4        5        5        3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     48        53        44        43        55        61        50   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     1        2        1        2        3        3        1   

Indirect two-way

     —          —          —          —          —          2        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     1        2        1        2        3        5        1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross placements

     49        55        45        45        58        66        51   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnects

              

Direct one-way

     (74     (77     (83     (84     (99     (94     (93

Direct two-way

     (6     (7     (8     (7     (9     (10     (9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     (80     (84     (91     (91     (108     (104     (102
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     (4     (4     (4     (7     (6     (10     6   

Indirect two-way

     (2     (1     (1     —          (2     (1     (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     (6     (5     (5     (7     (8     (11     (10
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross disconnects

     (86     (89     (96     (98     (116     (115     (112
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain

              

Direct one-way

     (29     (28     (42     (45     (49     (38     (46

Direct two-way

     (3     (3     (5     (3     (4     (5     (6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     (32     (31     (47     (48     (53     (43     (52
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     (3     (2     (3     (5     (3     (7     7   

Indirect two-way

     (2     (1     (1     —          (1     1        (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     (5     (3     (4     (5     (4     (6     (9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net change

     (37     (34     (51     (53     (58     (49     (60
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending units in service

              

Direct one-way

     1,366        1,395        1,423        1,465        1,510        1,559        1,599   

Direct two-way

     79        82        85        90        93        97        100   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     1,445        1,477        1,508        1,555        1,603        1,656        1,699   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     55        58        60        63        68        71        75   

Indirect two-way

     46        48        49        50        50        52        54   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     101        106        109        113        118        123        129   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ending units in service

     1,546        1,583        1,617        1,668        1,721        1,779        1,828   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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  
     9/30/12     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

ARPU

              

Direct one-way

   $ 7.84      $ 7.89      $ 7.91      $ 7.90      $ 7.97      $ 8.10      $ 8.05   

Direct two-way

     20.55        20.88        21.08        21.27        21.60        22.05        22.23   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     8.54        8.62        8.67        8.68        8.77        8.92        8.89   

Indirect one-way

     7.25        7.48        7.61        7.49        7.28        7.57        8.44   

Indirect two-way

     4.08        4.19        4.33        4.43        4.77        4.77        4.31   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     5.77        5.97        6.14        6.16        6.22        6.40        6.49   

Total one-way

     7.82        7.88        7.90        7.89        7.94        8.08        8.07   

Total two-way

     14.36        14.69        15.00        15.29        15.71        16.04        15.41   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging ARPU

   $ 8.36      $ 8.45      $ 8.50      $ 8.51      $ 8.59      $ 8.74      $ 8.72   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnect rate (b)

              

Direct one-way

     -5.3     -5.4     -5.7     -5.6     -6.4     -6.0     -5.7

Direct two-way

     -7.7     -8.5     -8.3     -7.7     -9.5     -9.3     -7.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -5.5     -5.6     -5.8     -5.7     -6.5     -6.2     -5.8

Indirect one-way

     -7.6     -6.6     -7.0     -9.8     -8.1     -8.1     11.9

Indirect two-way

     -3.1     -1.8     -1.7     -1.8     -3.1     -4.5     -26.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     -5.5     -4.4     -4.7     -6.4     -6.0     -6.6     -8.1

Total one-way

     -5.4     -5.4     -5.8     -5.8     -6.4     -6.1     -5.0

Total two-way

     -6.0     -6.0     -5.9     -5.6     -7.3     -7.6     -15.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging gross disconnect rate

     -5.5     -5.5     -5.8     -5.7     -6.5     -6.2     -6.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain rate (c)

              

Direct one-way

     -2.1     -1.9     -2.9     -3.0     -3.2     -2.5     -2.9

Direct two-way

     -4.0     -3.9     -4.9     -3.3     -4.1     -3.1     -3.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -2.2     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0

Indirect one-way

     -5.6     -4.9     -5.4     -7.4     -4.5     -5.3     14.6

Indirect two-way

     -2.5     -1.2     -0.9     -1.0     -2.3     -3.0     -25.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     -4.2     -3.2     -3.4     -4.7     -3.6     -4.3     -6.6

Total one-way

     -2.2     -2.0     -3.0     -3.2     -3.2     -2.6     -2.2

Total two-way

     -3.5     -2.9     -3.5     -2.5     -3.5     -3.1     -12.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging net loss rate

     -2.3     -2.1     -3.0     -3.1     -3.3     -2.7     -3.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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  
     9/30/12     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

Gross placement rate (b)

              

Healthcare

     3.7     4.3     3.3     3.0     3.9     4.5     3.3

Government

     2.5     1.8     1.3     1.6     2.6     2.1     1.9

Large enterprise

     2.0     1.9     2.4     2.1     2.1     2.1     2.3

Other

     2.1     2.0     2.2     2.8     1.9     2.0     2.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     3.2     3.5     2.8     2.7     3.3     3.6     2.9

Total indirect

     1.3     1.2     1.3     1.7     2.4     2.3     1.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     3.1     3.4     2.7     2.6     3.3     3.5     2.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnect rate (b)

              

Healthcare

     -4.5     -4.5     -4.7     -4.9     -5.7     -5.0     -4.7

Government

     -6.8     -7.0     -7.7     -7.4     -8.3     -8.7     -7.6

Large enterprise

     -7.3     -8.0     -7.7     -5.7     -7.0     -7.1     -6.2

Other

     -8.1     -8.7     -9.2     -8.7     -8.9     -9.0     -9.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -5.4     -5.6     -5.8     -5.7     -6.5     -6.2     -5.8

Total indirect

     -5.5     -4.4     -4.7     -6.4     -6.0     -6.6     -8.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -5.4     -5.5     -5.8     -5.7     -6.5     -6.2     -6.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss rate (b)

              

Healthcare

     -0.9     -0.2     -1.4     -1.9     -1.8     -0.5     -1.4

Government

     -4.3     -5.2     -6.4     -5.8     -5.7     -6.6     -5.7

Large enterprise

     -5.3     -6.1     -5.3     -3.6     -4.9     -5.0     -3.9

Other

     -5.9     -6.8     -7.1     -5.9     -7.0     -6.9     -6.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -2.2     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0

Total indirect

     -4.2     -3.2     -3.4     -4.7     -3.6     -4.3     -6.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -2.3     -2.1     -3.0     -3.1     -3.3     -2.7     -3.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

              

Healthcare

     65.9     64.9     63.6     62.6     61.7     60.9     59.5

Government

     10.8     11.1     11.5     11.9     12.3     12.6     13.1

Large enterprise

     8.6     8.9     9.3     9.5     9.6     9.8     10.0

Other

     8.1     8.4     8.8     9.2     9.5     9.7     10.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     93.4     93.3     93.2     93.2     93.1     93.0     92.9

Total indirect

     6.6     6.7     6.8     6.8     6.9     7.0     7.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     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 rates.


USA MOBILITY, INC. (WIRELESS)

SUPPLEMENTAL INFORMATION — DIRECT UNITS IN SERVICE AND

CELLULAR ACTIVATIONS (a)

(Unaudited)

 

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

Account size ending units in service (000’s)

              

1 to 3 units

     55        58        61        65        69        74        79   

4 to 10 units

     33        35        37        40        42        45        48   

11 to 50 units

     78        82        86        92        99        106        114   

51 to 100 units

     50        52        54        56        61        68        72   

101 to 1,000 units

     343        356        373        380        399        411        424   

>1,000 units

     886        894        897        922        933        952        962   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     1,445        1,477        1,508        1,555        1,603        1,656        1,699   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period units in service % of total direct

              

1 to 3 units

     3.8     3.9     4.1     4.2     4.3     4.4     4.7

4 to 10 units

     2.3     2.3     2.3     2.6     2.6     2.7     2.8

11 to 50 units

     5.4     5.6     5.7     5.9     6.2     6.4     6.7

51 to 100 units

     3.5     3.5     3.6     3.6     3.8     4.1     4.2

101 to 1,000 units

     23.7     24.1     24.8     24.4     24.9     24.8     25.0

>1,000 units

     61.3     60.6     59.5     59.3     58.2     57.6     56.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     100.0     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Account size net loss rate

              

1 to 3 units

     -5.3     -5.7     -6.2     -5.7     -5.9     -6.3     -6.2

4 to 10 units

     -4.8     -6.2     -6.2     -6.6     -6.4     -6.8     -6.2

11 to 50 units

     -4.8     -4.1     -7.1     -7.3     -6.4     -6.5     -7.7

51 to 100 units

     -3.9     -2.4     -3.9     -8.4     -10.4     -5.4     -5.7

101 to 1,000 units

     -3.8     -4.7     -1.7     -4.7     -2.9     -3.3     -2.7

>1,000 units

     -1.0     -0.3     -2.7     -1.1     -2.1     -1.0     -1.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -2.2     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Account size ARPU

              

1 to 3 units

   $ 15.43      $ 15.49      $ 15.49      $ 15.46      $ 15.62      $ 15.74      $ 15.57   

4 to 10 units

     14.42        14.40        14.45        14.37        14.52        14.65        14.53   

11 to 50 units

     12.11        12.24        12.15        12.12        12.30        12.38        12.19   

51 to 100 units

     10.48        10.35        10.52        10.56        10.59        10.68        10.59   

101 to 1,000 units

     8.97        9.01        9.04        8.90        8.90        9.10        9.00   

>1,000 units

     7.28        7.34        7.35        7.37        7.42        7.49        7.47   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 8.54      $ 8.62      $ 8.67      $ 8.68      $ 8.77      $ 8.92      $ 8.89   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cellular:

              

Number of activations

     948        1,052        1,070        1,476        1,236        4,370        2,191   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue from cellular services (000’s)

   $ 314      $ 286      $ 277      $ 414      $ 315      $ 1,199      $ 684   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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


USA MOBILITY, INC.

2012 FINANCIAL GUIDANCE

 

     (In millions)  
     Guidance Range  
     From      To  

Revenues

     

Wireless

   $ 162.0       $ 170.0   

Software

     53.0         57.0   
  

 

 

    

 

 

 

Combined

   $ 215.0       $ 227.0   
  

 

 

    

 

 

 

Operating Expenses (a)

     

Wireless

   $ 110.0       $ 106.0   

Software

     52.0         48.0   
  

 

 

    

 

 

 

Combined

   $ 162.0       $ 154.0   
  

 

 

    

 

 

 

Capital Expenses

     

Wireless

   $ 9.0       $ 7.0   

Software

     0.5         0.1   
  

 

 

    

 

 

 

Combined

   $ 9.5       $ 7.1   
  

 

 

    

 

 

 

 

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