Exhibit 99.1
News Release
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For Immediate Release | | Contact: | | Bob Lougee (800) 611-8488 |
Wednesday, May 4, 2011 | | | | bob.lougee@usamobility.com |
USA Mobility Reports First Quarter Operating Results;
Board Declares Regular Quarterly Dividend
Wireless Subscriber and Revenue Trends Improve;
Software Business Performance on Track;
Operating Expenses Again Reduced
Springfield, VA (May 4, 2011) —USA Mobility, Inc. (Nasdaq: USMO), a leading provider ofwireless messaging,mobile voice and data andunified communications solutions, today announced operating results for the first quarter ended March 31, 2011. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per share, payable on June 24, 2011 to stockholders of record on May 20, 2011.
Total revenue for the first quarter was $57.3 million, including $52.5 million from the Company’s wireless business (USA Mobility Wireless) and $4.8 million from its software business (Amcom Software), which the Company acquired on March 3, 2011. Software maintenance revenue was reduced by $0.9 million for purchase accounting adjustments. First quarter revenue from the wireless business was $52.5 million, compared to $54.6 million in the fourth quarter and $62.8 million in the first quarter of 2010. Reported results for the software business include only the 29-day period from March 3, 2011 to March 31, 2011. On a pro forma basis, reflecting Amcom results for the full quarter and excluding purchase accounting adjustments, total revenue was $65.6 million.
First quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $17.9 million, including $17.0 million from wireless and $0.9 million from software. First quarter EBITDA from wireless was $17.0 million, compared to $16.9 million in the prior quarter and $22.0 million in the year-earlier quarter. On a pro forma basis, excluding purchase accounting adjustments and one-time acquisition related expenses, first quarter EBITDA was $21.7 million or 33.0 percent of revenue.
Net income for the first quarter reflected 29 days of the software business as well as the maintenance revenue purchase accounting adjustment. Also, operating expenses (excluding depreciation, amortization and accretion)
reflected $2.9 million in one-time acquisition related expenses, and depreciation, amortization and accretion increased $0.5 million due primarily to acquired intangible assets. Additionally, the acquisition resulted in a $32.4 million reduction in the deferred income tax asset valuation allowance and a corresponding reduction in income tax expense. The result was net income for the first quarter of $40.7 million, or $1.82 per fully diluted share, compared to $8.9 million, or $0.39 per fully diluted share, in the year-earlier quarter. Excluding the purchase accounting adjustment to software maintenance revenue, the one-time acquisition related expenses and the reduction in the deferred income tax asset valuation allowance, net income for the first quarter would have been $10.9 million, or $0.49 per fully diluted share
First quarter results included:
Wireless
| • | | Net unit losses improved to 61,000 in the first quarter, compared to 83,000 in the first quarter of 2010, and the quarterly rate of unit erosion improved to 3.2 percent from 3.8 percent in the year-earlier quarter. The annual rate of subscriber erosion was 12.9 percent in the first quarter, compared to 19.5 percent in the year-ago quarter, and was the lowest annual unit loss rate in more than six years. Units in service at March 31, 2011 totaled 1,828,000, compared to 2,099,000 a year earlier. |
| • | | The quarterly rate of revenue erosion improved to 3.9 percent from 4.0 percent in the first quarter of 2010, while the annual rate of revenue erosion was 16.3 percent in the first quarter, compared to 21.2 percent in the year-earlier quarter, reaching its lowest level in two years. |
| • | | Total ARPU (average revenue per unit) was $8.72 in the first quarter, compared to $8.74 in the fourth quarter and $9.00 in the first quarter of 2010. |
Software
| • | | Pro forma bookings for the quarter ended March 31, 2011 were $13.7 million and the backlog was $19.3 million at March 31, 2011. |
| • | | Revenue from the software business totaled $4.8 million in the period from March 3, 2011 to March 31, 2011, of which $0.9 million was maintenance revenue and $3.9 million was operations revenue (which includes software, professional services and equipment sales). Pro forma revenue, excluding purchase accounting adjustments of $0.9 million, was $5.7 million for the 29-day period. |
| • | | The pro forma renewal rate for maintenance in the first quarter was 99.5 percent. |
Total Company
| • | | Operating expenses (excluding depreciation, amortization and accretion) totaled $39.5 million in the first quarter, with $35.6 million for wireless (which included $2.9 million of acquisition related expenses) and $3.9 million for software. |
| • | | EBITDA margin (or EBITDA as a percentage of revenue) was 31.2 percent. EBITDA margin for wireless was 32.3 percent, compared to 30.9 percent in the fourth quarter and 35.0 percent in the year-earlier quarter. |
| • | | Capital expenses were $1.5 million, compared to $1.7 million in the first quarter of 2010. |
| • | | The Company’s cash balance at March 31, 2011 was $23.4 million. |
| • | | The outstanding debt balance was $51.9 million at an interest rate of 5.25 percent. |
Vincent D. Kelly, president and chief executive officer, said: “Consistent with financial guidance we provided earlier this year, USA Mobility continued to make excellent progress during the first quarter, meeting or exceeding key performance goals for both our wireless and software businesses. We were particularly pleased to see solid results from our recently acquired Amcom Software subsidiary, as well as continued improvement in the pace of subscriber and revenue erosion in our wireless business. At the same time, we continued to reduce expenses, maintain strong operating margins, and generate sufficient cash flow to again return capital to stockholders in the form of dividend distributions.”
Kelly said the Company continued to focus sales and marketing efforts in its wireless business during the quarter around its core market segments of Healthcare, Government and Large Enterprise. “These core segments represented approximately 88.9 percent of our direct subscriber base and 83.8 percent of our direct paging revenue at the end of the first quarter, compared to 86.8 percent and 81.5 percent, respectively, a year earlier. Healthcare continued to be our best performing market segment with the highest rate of gross placements and lowest rate of net unit loss as healthcare providers continue to benefit from the reliability of paging for their most critical messaging needs.”
Commenting on the software business, Kelly said: “Our integration of Amcom is on track and going exceptionally well. To date we have initiated training programs for both sales teams to share leads and cross sell products and services into our key market segments, especially Healthcare. Additionally, we have received very positive feedback from our healthcare customer base with respect to the merger and its impact on our future. Moving forward we expect to leverage additional operational capabilities from each business, including customer relationships, technical know-how, and back-office support. Despite the distraction of the acquisition in the first quarter,” Kelly noted, “our software business generated strong bookings and has a $19.3 million backlog going into the second quarter.”
Shawn E. Endsley, chief financial officer, said the Company continued to reduce operating expenses in the first quarter. “Recurring operating expenses (excluding depreciation, amortization and accretion) for wireless decreased
20.0 percent from the year-earlier quarter,” Endsley noted, “exceeding the rate of wireless revenue decline. At the same time, ARPU remained strong and capital expenses declined. With respect to Amcom,” Endsley added, “the addition of software operations required a review of the recovery of our deferred income tax assets. The expected additional taxable income from Amcom allowed for a reduction in the deferred income tax asset valuation allowance and income tax expense of $32.4 million. Including software operations from March 3, 2011, the combined businesses generated operating cash flow of $12.7 million in the quarter.”
Regarding financial guidance for 2011, Endsley said the Company is reiterating its prior guidance for the full year for the wireless company as well as its full year pro-forma guidance for the software company. Additionally, the software company guidance for financial reporting purposes has been broken out separately in the schedules attached to this press release and has been adjusted to reflect: (1) results for the partial year (March 3 to December 31); and (2) purchase accounting adjustments for deferred revenue. As such, Endsley said the Company expects total revenues for 2011 to range from $224 million to $240 million, with wireless between $182 million and $192 million and software between $42 million and $48 million; operating expenses (excluding depreciation, amortization and accretion) to range from $167 million to $176 million, with wireless between $132 million and $136 million and software between $35 million and $40 million; and capital expenses to range from $6 million to $9 million, with wireless between $5 million and $7 million and software between $1 million and $2 million.
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its first quarter results at 10:00 a.m. Eastern Time on Thursday, May 5, 2011. Dial-in numbers for the call are 719-325-2488 or 888-857-6929. The pass code for the call is 2032739. A replay of the call will be available from 2:00 p.m. ET on May 5 until 11:59 p.m. on Thursday, May 19. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 2032739.
* * * * * * * * *
About USA Mobility
USA Mobility, Inc., headquartered in Springfield, Virginia, is a comprehensive provider of reliable and affordablewireless communications solutions to thehealthcare,government,large enterprise andemergency response sectors. 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. In addition, through its Amcom Software subsidiary, it providesmission critical unified communications solutions for contact centers, emergency management, mobile event notification and messaging. USA Mobility also offers mobile voice and data services throughSprint Nextel andT-Mobile, includingBlackBerry® 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 offersM2M (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 visitwww.usamobility.com andwww.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.
FINANCIAL GUIDANCE
| | | | | | | | | | | | | | | | |
| | (In millions) | |
| | Full Year | | | Adjusted | |
| | Guidance Range (a) | | | Guidance Range (b) | |
| | From | | | To | | | From | | | To | |
Revenues | | | | | | | | | | | | | | | | |
Wireless | | $ | 182.0 | | | $ | 192.0 | | | $ | 182.0 | | | $ | 192.0 | |
Software | | | 57.0 | | | | 63.0 | (c) | | | 42.0 | | | | 48.0 | |
| | | | | | | | | | | | |
Combined | | $ | 239.0 | | | $ | 255.0 | | | $ | 224.0 | | | $ | 240.0 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Operating Expenses (d) | | | | | | | | | | | | | | | | |
Wireless | | $ | 136.0 | | | $ | 132.0 | | | $ | 136.0 | | | $ | 132.0 | |
Software | | | 47.0 | | | | 43.0 | | | | 40.0 | | | | 35.0 | |
| | | | | | | | | | | | |
Combined | | $ | 183.0 | | | $ | 175.0 | | | $ | 176.0 | | | $ | 167.0 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Capital Expenses | | | | | | | | | | | | | | | | |
Wireless | | $ | 7.0 | | | $ | 5.0 | | | $ | 7.0 | | | $ | 5.0 | |
Software | | | 2.0 | | | | 1.0 | | | | 2.0 | | | | 1.0 | |
| | | | | | | | | | | | |
Combined | | $ | 9.0 | | | $ | 6.0 | | | $ | 9.0 | | | $ | 6.0 | |
| | | | | | | | | | | | |
| | |
(a) | | The full year guidance assumes that the Amcom Software, Inc. (“Software”) acquisition had occurred as of January 1, 2011. |
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(b) | | The adjusted guidance for 2011 reflects Software’s results from March 3, 2011, the date of acquisition, and reflects the fair value adjustment to maintenance revenues as required by generally accepted accounting principles. |
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(c) | | Software revenues do NOT reflect any fair value adjustment to maintenance revenue as a result of purchase accounting. |
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(d) | | Operating expenses exclude depreciation, amortization and accretion. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)
(In thousands, except share and per share amounts)
| | | | | | | | | | | | |
| | Wireless | | | Software | | | | |
| | For three months | | | For the period | | | | |
| | ended March 31, | | | March 3, 2011 to | | | | |
| | 2011 | | | March 31, 2011 | | | Total | |
Revenue: | | | | | | | | | | | | |
Paging service | | $ | 48,628 | | | $ | — | | | $ | 48,628 | |
Cellular | | | 684 | | | | — | | | | 684 | |
Product sales | | | 2,344 | | | | 4,799 | | | | 7,143 | |
Other | | | 880 | | | | — | | | | 880 | |
| | | | | | | | | |
Total revenue | | | 52,536 | | | | 4,799 | | | | 57,335 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | |
Cost of products sold | | | 663 | | | | 1,762 | | | | 2,425 | |
Service, rental and maintenance | | | 15,816 | | | | 646 | | | | 16,462 | |
Selling and marketing | | | 3,833 | | | | 1,088 | | | | 4,921 | |
General and administrative | | | 15,240 | | | | 387 | | | | 15,627 | |
Severance and restructuring | | | 33 | | | | — | | | | 33 | |
Depreciation, amortization and accretion | | | 4,032 | | | | 508 | | | | 4,540 | |
| | | | | | | | | |
Total operating expenses | | | 39,617 | | | | 4,391 | | | | 44,008 | |
| | | | | | | | | |
% of total revenue | | | 75.4 | % | | | 91.5 | % | | | 76.8 | % |
| | | | | | | | | | | | |
| | | | | | | | | |
Operating income | | | 12,919 | | | | 408 | | | | 13,327 | |
| | | | | | | | | |
% of total revenue | | | 24.6 | % | | | 8.5 | % | | | 23.2 | % |
| | | | | | | | | | | | |
Interest expense, net | | | (247 | ) | | | (9 | ) | | | (256 | ) |
Other income (expense), net | | | 205 | | | | (2 | ) | | | 203 | |
| | | | | | | | | |
Income before income tax (benefit) | | | 12,877 | | | | 397 | | | | 13,274 | |
Income tax (benefit) expense | | | (27,583 | ) | | | 206 | | | | (27,377 | ) |
| | | | | | | | | |
Net income | | $ | 40,460 | | | $ | 191 | | | $ | 40,651 | |
| | | | | | | | | |
| | | | | | | | | | | | |
Basic net income per common share | | | | | | | | | | $ | 1.84 | |
| | | | | | | | | | | |
Diluted net income per common share | | | | | | | | | | $ | 1.82 | |
| | | | | | | | | | | |
| | | | | | | | | | | | |
Basic weighted average common shares outstanding | | | | | | | | | | | 22,063,393 | |
| | | | | | | | | | | |
Diluted weighted average common shares outstanding | | | | | | | | | | | 22,333,399 | |
| | | | | | | | | | | |
| | | | | | | | | | | | |
Reconciliation of operating income to EBITDA (c): | | | | | | | | | | | | |
Operating income | | $ | 12,919 | | | $ | 408 | | | $ | 13,327 | |
Add back: depreciation, amortization and accretion | | | 4,032 | | | | 508 | | | | 4,540 | |
| | |
EBITDA | | | 16,951 | | | | 916 | | | | 17,867 | |
| | |
% of total revenue | | | 32.3 | % | | | 19.1 | % | | | 31.2 | % |
| | |
(a) | | Includes consolidated results of operations of USA Mobility Wireless, Inc. (“Wireless”) and Software. |
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(b) | | Slight variations in totals are due to rounding. |
|
(c) | | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(In thousands)
| | | | | | | | |
| | 3/31/11 | | | 12/31/10 | |
| | (Unaudited) | | | | | |
Assets | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 23,383 | | | $ | 129,220 | |
Accounts receivable, net | | | 21,134 | | | | 13,419 | |
Prepaid expenses and other | | | 4,412 | | | | 2,638 | |
Inventory, net | | | 2,432 | | | | 160 | |
Tax receivables | | | 8,050 | | | | 5,004 | |
Escrow receivables | | | 7,500 | | | | — | |
Deferred income tax assets, net | | | 7,907 | | | | 3,915 | |
| | |
Total current assets | | | 74,818 | | | | 154,356 | |
Tax receivables | | | 191 | | | | 191 | |
Property and equipment, net | | | 26,248 | | | | 27,135 | |
Goodwill | | | 131,172 | | | | — | |
Other intangible assets, net | | | 43,477 | | | | 511 | |
Deferred income tax assets, net | | | 55,046 | | | | 47,390 | |
Escrow receivables | | | 7,500 | | | | — | |
Deferred financing costs, net | | | 1,294 | | | | — | |
Other assets | | | 1,150 | | | | 1,075 | |
| | |
Total assets | | $ | 340,896 | | | $ | 230,658 | |
| | |
| | | | | | | | |
Liabilities and stockholders’ equity | | | | | | | | |
Current liabilities: | | | | | | | | |
Current portion of long-term debt | | $ | 12,500 | | | $ | — | |
Consideration payable | | | 7,500 | | | | — | |
Accounts payable and accrued liabilities | | | 18,321 | | | | 17,527 | |
Accrued compensation and benefits | | | 8,600 | | | | 9,968 | |
Customer deposits | | | 3,266 | | | | 718 | |
Deferred revenue | | | 10,493 | | | | 6,268 | |
| | |
Total current liabilities | | | 60,680 | | | | 34,481 | |
Long-term debt, net of current portion | | | 39,447 | | | | — | |
Consideration payable | | | 7,500 | | | | — | |
Deferred revenue | | | 487 | | | | — | |
Other long-term liabilities | | | 12,657 | | | | 11,787 | |
| | |
Total liabilities | | | 120,771 | | | | 46,268 | |
| | |
Commitments and contingencies | | | | | | | | |
Stockholders’ equity: | | | | | | | | |
Preferred stock | | | — | | | | — | |
Common stock | | | 2 | | | | 2 | |
Additional paid-in capital | | | 130,355 | | | | 129,696 | |
Retained earnings | | | 89,768 | | | | 54,692 | |
| | |
Total stockholders’ equity | | | 220,125 | | | | 184,390 | |
| | |
Total liabilities and stockholders’ equity | | $ | 340,896 | | | $ | 230,658 | |
| | |
| | |
(a) | | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(Unaudited and in thousands)
| | | | | | | | |
| | For the three months ended | |
| | 3/31/11 | | | 3/31/10 | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 40,651 | | | $ | 8,885 | |
Adjustments to reconcile net income to net cash provided | | | | | | | | |
by operating activities: | | | | | | | | |
Depreciation, amortization and accretion | | | 4,540 | | | | 7,304 | |
Amortization of deferred financing costs | | | 45 | | | | — | |
Deferred income tax expense | | | (27,929 | ) | | | 5,777 | |
Amortization of stock based compensation | | | 225 | | | | 263 | |
Provisions for doubtful accounts, service credits and other | | | 700 | | | | 1,225 | |
Settlement of non-cash transaction taxes | | | (119 | ) | | | (350 | ) |
(Loss)/Gain on disposals of property and equipment | | | (13 | ) | | | 59 | |
Changes in assets and liabilities: | | | | | | | | |
Accounts receivable | | | (49 | ) | | | 472 | |
Prepaid expenses, intangibles and other assets | | | (154 | ) | | | (31 | ) |
Accounts payable and accrued liabilities | | | (5,047 | ) | | | (5,273 | ) |
Customer deposits | | | (797 | ) | | | (51 | ) |
Deferred revenue | | | 636 | | | | (387 | ) |
| | |
Net cash provided by operating activities | | | 12,689 | | | | 17,893 | |
| | |
| | | | | | | | |
Cash flows from investing activities: | | | | | | | | |
Purchases of property and equipment | | | (1,494 | ) | | | (1,725 | ) |
Proceeds from disposals of property and equipment | | | 11 | | | | 38 | |
Acquisitions, net of cash acquired | | | (134,217 | ) | | | — | |
| | |
Net cash used in investing activities | | | (135,700 | ) | | | (1,687 | ) |
| | |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Issuance of debt | | | 24,044 | | | | — | |
Deferred financing costs | | | (1,339 | ) | | | — | |
Cash dividends to stockholders | | | (5,531 | ) | | | (5,619 | ) |
Purchase of common stock | | | — | | | | (4,623 | ) |
| | |
Net cash provided (used) in financing activities | | | 17,174 | | | | (10,242 | ) |
| | |
| | | | | | | | |
Net (decrease) increase in cash and cash equivalents | | | (105,837 | ) | | | 5,964 | |
Cash and cash equivalents, beginning of period | | | 129,220 | | | | 109,591 | |
| | |
Cash and cash equivalents, end of period | | $ | 23,383 | | | $ | 115,555 | |
| | |
| | | | | | | | |
Supplemental disclosure: | | | | | | | | |
Interest paid | | $ | 263 | | | $ | 1 | |
| | |
Income taxes paid (state and local) | | $ | — | | | $ | — | |
| | |
| | |
(a) | | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a)
(Unaudited and in thousands, except share and per share amounts)
| | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 3/31/11 | | | 12/31/10 | | | 9/30/10 | | | 6/30/10 | | | 3/31/10 | |
Revenues: | | | | | | | | | | | | | | | | | | | | |
Paging service | | $ | 48,628 | | | $ | 50,319 | | | $ | 52,778 | | | $ | 54,875 | | | $ | 57,832 | |
Cellular | | | 684 | | | | 499 | | | | 532 | | | | 624 | | | | 708 | |
Product sales | | | 2,344 | | | | 2,784 | | | | 2,805 | | | | 2,732 | | | | 3,358 | |
Other | | | 880 | | | | 1,046 | | | | 595 | | | | 881 | | | | 886 | |
| | |
Total revenues | | | 52,536 | | | | 54,648 | | | | 56,710 | | | | 59,112 | | | | 62,784 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | |
Cost of products sold | | | 663 | | | | 1,051 | | | | 819 | | | | 1,134 | | | | 1,209 | |
Service, rental and maintenance | | | 15,816 | | | | 16,221 | | | | 16,821 | | | | 17,175 | | | | 18,941 | |
Selling and marketing | | | 3,833 | | | | 3,915 | | | | 4,060 | | | | 4,394 | | | | 4,557 | |
General and administrative | | | 15,240 | | | | 14,829 | | | | 12,907 | | | | 15,924 | | | | 15,812 | |
Severance and restructuring | | | 33 | | | | 1,738 | | | | 86 | | | | 41 | | | | 314 | |
Depreciation, amortization and accretion | | | 4,032 | | | | 4,226 | | | | 5,899 | | | | 6,698 | | | | 7,304 | |
| | |
Total operating expenses | | | 39,617 | | | | 41,980 | | | | 40,592 | | | | 45,366 | | | | 48,137 | |
| | |
% of total revenues | | | 75.4 | % | | | 76.8 | % | | | 71.6 | % | | | 76.7 | % | | | 76.7 | % |
| | | | | | | | | | | | | | | | | | | | |
| | |
Operating income | | | 12,919 | | | | 12,668 | | | | 16,118 | | | | 13,746 | | | | 14,647 | |
| | |
% of total revenues | | | 24.6 | % | | | 23.2 | % | | | 28.4 | % | | | 23.3 | % | | | 23.3 | % |
| | | | | | | | | | | | | | | | | | | | |
Interest (expense) income, net | | | (247 | ) | | | 3 | | | | 6 | | | | 4 | | | | 3 | |
Other income, net | | | 205 | | | | 227 | | | | 2,320 | | | | 180 | | | | 78 | |
| | |
Income before income tax (benefit) expense | | | 12,877 | | | | 12,898 | | | | 18,444 | | | | 13,930 | | | | 14,728 | |
Income tax (benefit) expense | | | (27,583 | ) | | | (27,642 | ) | | | 3,060 | | | | 841 | | | | 5,843 | |
| | |
Net income | | $ | 40,460 | | | $ | 40,540 | | | $ | 15,384 | | | $ | 13,089 | | | $ | 8,885 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Basic net income per common share | | $ | 1.84 | | | $ | 1.84 | | | $ | 0.70 | | | $ | 0.59 | | | $ | 0.39 | |
| | |
Diluted net income per common share | | $ | 1.82 | | | $ | 1.82 | | | $ | 0.69 | | | $ | 0.58 | | | $ | 0.39 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Basic weighted average common shares outstanding | | | 22,063,393 | | | | 22,050,512 | | | | 22,060,636 | | | | 22,307,488 | | | | 22,654,240 | |
| | |
Diluted weighted average common shares outstanding | | | 22,333,399 | | | | 22,323,551 | | | | 22,372,786 | | | | 22,620,707 | | | | 22,967,192 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Reconciliation of operating income to EBITDA (b): | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 12,919 | | | $ | 12,668 | | | $ | 16,118 | | | $ | 13,746 | | | $ | 14,647 | |
Add back: depreciation, amortization and accretion | | | 4,032 | | | | 4,226 | | | | 5,899 | | | | 6,698 | | | | 7,304 | |
| | |
EBITDA | | $ | 16,951 | | | $ | 16,894 | | | $ | 22,017 | | | $ | 20,444 | | | $ | 21,951 | |
| | |
% of total revenues | | | 32.3 | % | | | 30.9 | % | | | 38.8 | % | | | 34.6 | % | | | 35.0 | % |
| | |
(a) | | Slight variations in totals are due to rounding. |
|
(b) | | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC. (WIRELESS)
UNITS IN SERVICE ACTIVITY (a)
(Unaudited and in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
Units in service | | 3/31/11 | | | 12/31/10 | | | 9/30/10 | | | 6/30/10 | | | 3/31/10 | |
Beginning units in service | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | 1,645 | | | | 1,692 | | | | 1,749 | | | | 1,804 | | | | 1,881 | |
Direct two-way | | | 106 | | | | 109 | | | | 121 | | | | 126 | | | | 133 | |
| | |
Total direct | | | 1,751 | | | | 1,801 | | | | 1,870 | | | | 1,930 | | | | 2,014 | |
| | |
Indirect one-way | | | 68 | | | | 75 | | | | 82 | | | | 90 | | | | 101 | |
Indirect two-way | | | 70 | | | | 74 | | | | 75 | | | | 79 | | | | 67 | |
| | |
Total indirect | | | 138 | | | | 149 | | | | 157 | | | | 169 | | | | 168 | |
| | |
Total beginning units in service | | | 1,889 | | | | 1,950 | | | | 2,027 | | | | 2,099 | | | | 2,182 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Gross placements | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | 46 | | | | 45 | | | | 58 | | | | 62 | | | | 53 | |
Direct two-way | | | 4 | | | | 6 | | | | 4 | | | | 6 | | | | 5 | |
| | |
Total direct | | | 50 | | | | 51 | | | | 62 | | | | 68 | | | | 58 | |
| | |
Indirect one-way | | | 2 | | | | 2 | | | | 3 | | | | 3 | | | | 3 | |
Indirect two-way | | | 0 | | | | 1 | | | | 1 | | | | 1 | | | | 15 | |
| | |
Total indirect | | | 2 | | | | 3 | | | | 4 | | | | 4 | | | | 18 | |
| | |
Total gross placements | | | 52 | | | | 54 | | | | 66 | | | | 72 | | | | 76 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Gross disconnects | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | (94 | ) | | | (92 | ) | | | (115 | ) | | | (117 | ) | | | (130 | ) |
Direct two-way | | | (8 | ) | | | (9 | ) | | | (16 | ) | | | (11 | ) | | | (12 | ) |
| | |
Total direct | | | (102 | ) | | | (101 | ) | | | (131 | ) | | | (128 | ) | | | (142 | ) |
| | |
Indirect one-way | | | 8 | | | | (9 | ) | | | (10 | ) | | | (11 | ) | | | (14 | ) |
Indirect two-way | | | (19 | ) | | | (5 | ) | | | (2 | ) | | | (5 | ) | | | (3 | ) |
| | |
Total indirect | | | (11 | ) | | | (14 | ) | | | (12 | ) | | | (16 | ) | | | (17 | ) |
| | |
Total gross disconnects | | | (113 | ) | | | (115 | ) | | | (143 | ) | | | (144 | ) | | | (159 | ) |
| | |
| | | | | | | | | | | | | | | | | | | | |
Net gain / (loss) | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | (48 | ) | | | (47 | ) | | | (57 | ) | | | (55 | ) | | | (77 | ) |
Direct two-way | | | (4 | ) | | | (3 | ) | | | (12 | ) | | | (5 | ) | | | (7 | ) |
| | |
Total direct | | | (52 | ) | | | (50 | ) | | | (69 | ) | | | (60 | ) | | | (84 | ) |
| | |
Indirect one-way | | | 10 | | | | (7 | ) | | | (7 | ) | | | (8 | ) | | | (11 | ) |
Indirect two-way | | | (19 | ) | | | (4 | ) | | | (1 | ) | | | (4 | ) | | | 12 | |
| | |
Total indirect | | | (9 | ) | | | (11 | ) | | | (8 | ) | | | (12 | ) | | | 1 | |
| | |
Total net change | | | (61 | ) | | | (61 | ) | | | (77 | ) | | | (72 | ) | | | (83 | ) |
| | |
| | | | | | | | | | | | | | | | | | | | |
Ending units in service | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | 1,597 | | | | 1,645 | | | | 1,692 | | | | 1,749 | | | | 1,804 | |
Direct two-way | | | 102 | | | | 106 | | | | 109 | | | | 121 | | | | 126 | |
| | |
Total direct | | | 1,699 | | | | 1,751 | | | | 1,801 | | | | 1,870 | | | | 1,930 | |
| | |
Indirect one-way | | | 78 | | | | 68 | | | | 75 | | | | 82 | | | | 90 | |
Indirect two-way | | | 51 | | | | 70 | | | | 74 | | | | 75 | | | | 79 | |
| | |
Total indirect | | | 129 | | | | 138 | | | | 149 | | | | 157 | | | | 169 | |
| | |
Total ending units in service | | | 1,828 | | | | 1,889 | | | | 1,950 | | | | 2,027 | | | | 2,099 | |
| | |
| | |
(a) | | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 3/31/11 | | | 12/31/10 | | | 9/30/10 | | | 6/30/10 | | | 3/31/10 | |
ARPU | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | $ | 8.05 | | | $ | 8.05 | | | $ | 8.07 | | | $ | 8.05 | | | $ | 8.16 | |
Direct two-way | | | 22.23 | | | | 22.57 | | | | 23.11 | | | | 23.55 | | | | 23.61 | |
| | |
Total direct | | | 8.89 | | | | 8.92 | | | | 9.01 | | | | 9.06 | | | | 9.17 | |
| | | | | | | | | | | | | | | | | | | | |
Indirect one-way | | | 8.44 | | | | 9.13 | | | | 9.60 | | | | 8.87 | | | | 8.78 | |
Indirect two-way | | | 4.31 | | | | 3.98 | | | | 4.09 | | | | 4.25 | | | | 4.84 | |
| | |
Total indirect | | | 6.49 | | | | 6.48 | | | | 6.86 | | | | 6.65 | | | | 7.04 | |
| | | | | | | | | | | | | | | | | | | | |
Total one-way | | | 8.07 | | | | 8.09 | | | | 8.14 | | | | 8.09 | | | | 8.19 | |
Total two-way | | | 15.41 | | | | 14.96 | | | | 15.54 | | | | 16.06 | | | | 16.76 | |
| | |
Total paging ARPU | | $ | 8.72 | | | $ | 8.74 | | | $ | 8.85 | | | $ | 8.87 | | | $ | 9.00 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Gross disconnect rate (b) | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | -5.7 | % | | | -5.5 | % | | | -6.6 | % | | | -6.5 | % | | | -6.9 | % |
Direct two-way | | | -7.5 | % | | | -8.5 | % | | | -13.0 | % | | | -8.5 | % | | | -9.1 | % |
| | |
Total direct | | | -5.8 | % | | | -5.7 | % | | | -7.0 | % | | | -6.6 | % | | | -7.1 | % |
| | | | | | | | | | | | | | | | | | | | |
Indirect one-way | | | 11.9 | % | | | -12.1 | % | | | -12.5 | % | | | -12.8 | % | | | -13.7 | % |
Indirect two-way | | | -26.4 | % | | | -5.8 | % | | | -2.6 | % | | | -6.8 | % | | | -4.9 | % |
| | |
Total indirect | | | -8.1 | % | | | -8.9 | % | | | -7.7 | % | | | -9.9 | % | | | -10.1 | % |
| | | | | | | | | | | | | | | | | | | | |
Total one-way | | | -5.0 | % | | | -5.7 | % | | | -6.8 | % | | | -6.8 | % | | | -7.3 | % |
Total two-way | | | -15.2 | % | | | -7.4 | % | | | -9.0 | % | | | -7.9 | % | | | -7.7 | % |
| | |
Total paging gross disconnect rate | | | -6.0 | % | | | -5.9 | % | | | -7.0 | % | | | -6.9 | % | | | -7.3 | % |
| | |
| | | | | | | | | | | | | | | | | | | | |
Net gain / loss rate (c) | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | -2.9 | % | | | -2.7 | % | | | -3.2 | % | | | -3.1 | % | | | -4.1 | % |
Direct two-way | | | -3.6 | % | | | -4.6 | % | | | -9.5 | % | | | -4.2 | % | | | -5.0 | % |
| | |
Total direct | | | -3.0 | % | | | -2.8 | % | | | -3.6 | % | | | -3.1 | % | | | -4.2 | % |
| | | | | | | | | | | | | | | | | | | | |
Indirect one-way | | | 14.6 | % | | | -9.8 | % | | | -9.2 | % | | | -9.8 | % | | | -10.5 | % |
Indirect two-way | | | -25.8 | % | | | -4.6 | % | | | -0.9 | % | | | -4.7 | % | | | 17.1 | % |
| | |
Total indirect | | | -6.6 | % | | | -7.2 | % | | | -5.1 | % | | | -7.4 | % | | | 0.7 | % |
| | | | | | | | | | | | | | | | | | | | |
Total one-way | | | -2.2 | % | | | -3.0 | % | | | -3.5 | % | | | -3.4 | % | | | -4.4 | % |
Total two-way | | | -12.7 | % | | | -4.6 | % | | | -6.1 | % | | | -4.4 | % | | | 2.5 | % |
| | |
Total paging net (loss) gain rate | | | -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 gain / loss 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 | |
| | 3/31/11 | | | 12/31/10 | | | 9/30/10 | | | 6/30/10 | | | 3/31/10 | |
Gross placement rate (b) | | | | | | | | | | | | | | | | | | | | |
Healthcare | | | 3.3 | % | | | 3.4 | % | | | 3.9 | % | | | 4.4 | % | | | 3.5 | % |
Government | | | 1.9 | % | | | 1.5 | % | | | 3.1 | % | | | 1.9 | % | | | 1.8 | % |
Large enterprise | | | 2.3 | % | | | 2.2 | % | | | 1.9 | % | | | 2.6 | % | | | 2.1 | % |
Other | | | 2.5 | % | | | 2.3 | % | | | 2.5 | % | | | 2.0 | % | | | 2.4 | % |
| | |
Total direct | | | 2.9 | % | | | 2.8 | % | | | 3.4 | % | | | 3.5 | % | | | 2.9 | % |
Total indirect | | | 1.6 | % | | | 1.7 | % | | | 2.6 | % | | | 2.5 | % | | | 10.9 | % |
| | |
Total | | | 2.8 | % | | | 2.7 | % | | | 3.3 | % | | | 3.4 | % | | | 3.5 | % |
| | |
| | | | | | | | | | | | | | | | | | | | |
Gross disconnect rate (b) | | | | | | | | | | | | | | | | | | | | |
Healthcare | | | -4.7 | % | | | -4.4 | % | | | -5.7 | % | | | -5.2 | % | | | -4.9 | % |
Government | | | -7.6 | % | | | -7.3 | % | | | -8.3 | % | | | -8.3 | % | | | -9.1 | % |
Large enterprise | | | -6.2 | % | | | -7.0 | % | | | -9.7 | % | | | -8.3 | % | | | -10.3 | % |
Other | | | -9.2 | % | | | -8.6 | % | | | -9.3 | % | | | -9.6 | % | | | -11.0 | % |
| | |
Total direct | | | -5.8 | % | | | -5.7 | % | | | -7.0 | % | | | -6.6 | % | | | -7.1 | % |
Total indirect | | | -8.1 | % | | | -8.9 | % | | | -7.7 | % | | | -9.9 | % | | | -10.1 | % |
| | |
Total | | | -6.0 | % | | | -5.9 | % | | | -7.0 | % | | | -6.9 | % | | | -7.3 | % |
| | |
| | | | | | | | | | | | | | | | | | | | |
Net loss rate (b) | | | | | | | | | | | | | | | | | | | | |
Healthcare | | | -1.4 | % | | | -1.1 | % | | | -1.8 | % | | | -0.8 | % | | | -1.4 | % |
Government | | | -5.7 | % | | | -5.9 | % | | | -5.2 | % | | | -6.4 | % | | | -7.4 | % |
Large enterprise | | | -3.9 | % | | | -4.8 | % | | | -7.8 | % | | | -5.7 | % | | | -8.1 | % |
Other | | | -6.8 | % | | | -6.3 | % | | | -6.8 | % | | | -7.6 | % | | | -8.6 | % |
| | |
Total direct | | | -3.0 | % | | | -2.8 | % | | | -3.6 | % | | | -3.1 | % | | | -4.2 | % |
Total indirect | | | -6.6 | % | | | -7.2 | % | | | -5.1 | % | | | -7.4 | % | | | 0.7 | % |
| | |
Total | | | -3.2 | % | | | -3.2 | % | | | -3.8 | % | | | -3.5 | % | | | -3.8 | % |
| | |
| | | | | | | | | | | | | | | | | | | | |
End of period units in service % of total (b) | | | | | | | | | | | | | | | | | | | | |
Healthcare | | | 59.5 | % | | | 58.3 | % | | | 57.1 | % | | | 56.1 | % | | | 54.5 | % |
Government | | | 13.1 | % | | | 13.5 | % | | | 13.9 | % | | | 14.1 | % | | | 14.4 | % |
Large enterprise | | | 10.0 | % | | | 10.1 | % | | | 10.2 | % | | | 10.7 | % | | | 10.9 | % |
Other | | | 10.3 | % | | | 10.8 | % | | | 11.2 | % | | | 11.4 | % | | | 12.1 | % |
| | |
Total direct | | | 92.9 | % | | | 92.7 | % | | | 92.4 | % | | | 92.3 | % | | | 91.9 | % |
Total indirect | | | 7.1 | % | | | 7.3 | % | | | 7.6 | % | | | 7.7 | % | | | 8.1 | % |
| | |
Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| | |
| | |
(a) | | Slight variations in totals are due to rounding. |
|
(b) | | Changes in the classification of units in service are reflected in the quarter when such changes are identified. Such changes are then appropriately reflected in calculating the gross placement, gross disconnect and net (loss) gain rates. |
USA MOBILITY, INC. (WIRELESS)
SUPPLEMENTAL INFORMATION — DIRECT UNITS IN SERVICE AND
CELLULAR ACTIVATIONS (a)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 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 | | | 79 | | | | 84 | | | | 88 | | | | 95 | | | | 101 | |
4 to 10 units | | | 48 | | | | 52 | | | | 54 | | | | 58 | | | | 62 | |
11 to 50 units | | | 114 | | | | 123 | | | | 130 | | | | 140 | | | | 149 | |
51 to 100 units | | | 72 | | | | 76 | | | | 79 | | | | 86 | | | | 92 | |
101 to 1,000 units | | | 424 | | | | 436 | | | | 456 | | | | 483 | | | | 499 | |
>1,000 units | | | 962 | | | | 980 | | | | 994 | | | | 1,008 | | | | 1,027 | |
| | |
Total | | | 1,699 | | | | 1,751 | | | | 1,801 | | | | 1,870 | | | | 1,930 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
End of period units in service % of total direct | | | | | | | | | | | | | | | | | | | | |
1 to 3 units | | | 4.7 | % | | | 4.8 | % | | | 4.9 | % | | | 5.1 | % | | | 5.2 | % |
4 to 10 units | | | 2.8 | % | | | 2.9 | % | | | 3.0 | % | | | 3.1 | % | | | 3.2 | % |
11 to 50 units | | | 6.7 | % | | | 7.0 | % | | | 7.2 | % | | | 7.5 | % | | | 7.7 | % |
51 to 100 units | | | 4.2 | % | | | 4.4 | % | | | 4.4 | % | | | 4.6 | % | | | 4.8 | % |
101 to 1,000 units | | | 25.0 | % | | | 24.9 | % | | | 25.3 | % | | | 25.8 | % | | | 25.9 | % |
>1,000 units | | | 56.6 | % | | | 56.0 | % | | | 55.2 | % | | | 53.9 | % | | | 53.2 | % |
| | |
Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| | |
| | | | | | | | | | | | | | | | | | | | |
Account size net loss rate | | | | | | | | | | | | | | | | | | | | |
1 to 3 units | | | -6.2 | % | | | -4.8 | % | | | -7.0 | % | | | -5.8 | % | | | -7.6 | % |
4 to 10 units | | | -6.2 | % | | | -5.0 | % | | | -7.5 | % | | | -6.0 | % | | | -5.3 | % |
11 to 50 units | | | -7.7 | % | | | -5.1 | % | | | -7.3 | % | | | -6.1 | % | | | -5.8 | % |
51 to 100 units | | | -5.7 | % | | | -4.2 | % | | | -7.9 | % | | | -6.5 | % | | | -4.4 | % |
101 to 1,000 units | | | -2.7 | % | | | -4.2 | % | | | -5.6 | % | | | -3.3 | % | | | -3.7 | % |
>1,000 units | | | -1.8 | % | | | -1.5 | % | | | -1.3 | % | | | -1.9 | % | | | -3.7 | % |
| | |
Total | | | -3.0 | % | | | -2.8 | % | | | -3.6 | % | | | -3.1 | % | | | -4.2 | % |
| | |
| | | | | | | | | | | | | | | | | | | | |
Account size ARPU | | | | | | | | | | | | | | | | | | | | |
1 to 3 units | | $ | 15.57 | | | $ | 15.57 | | | $ | 15.48 | | | $ | 15.37 | | | $ | 15.28 | |
4 to 10 units | | | 14.53 | | | | 14.56 | | | | 14.51 | | | | 14.35 | | | | 14.37 | |
11 to 50 units | | | 12.19 | | | | 12.26 | | | | 12.18 | | | | 12.01 | | | | 11.86 | |
51 to 100 units | | | 10.59 | | | | 10.72 | | | | 10.69 | | | | 10.76 | | | | 10.67 | |
101 to 1,000 units | | | 9.00 | | | | 9.00 | | | | 8.82 | | | | 8.93 | | | | 9.00 | |
>1,000 units | | | 7.47 | | | | 7.43 | | | | 7.64 | | | | 7.63 | | | | 7.80 | |
| | |
Total | | $ | 8.89 | | | $ | 8.92 | | | $ | 9.01 | | | $ | 9.06 | | | $ | 9.17 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Cellular revenue | | | | | | | | | | | | | | | | | | | | |
Number of activations | | | 2,191 | | | | 1,990 | | | | 1,885 | | | | 1,885 | | | | 2,354 | |
| | |
Revenue from cellular services (000’s) | | $ | 684 | | | $ | 499 | | | $ | 532 | | | $ | 624 | | | $ | 708 | |
| | |
| | |
(a) | | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
(Unaudited and in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 3/31/11 | | | 12/31/10 | | | 9/30/10 | | | 6/30/10 | | | 3/31/10 | |
Cost of products sold | | $ | 663 | | | $ | 1,051 | | | $ | 819 | | | $ | 1,134 | | | $ | 1,209 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Service, rental and maintenance | | | | | | | | | | | | | | | | | | | | |
Site rent | | | 6,881 | | | | 7,629 | | | | 8,042 | | | | 8,283 | | | | 9,079 | |
Telecommunications | | | 3,099 | | | | 3,066 | | | | 3,341 | | | | 3,467 | | | | 3,831 | |
Payroll and related | | | 4,293 | | | | 4,319 | | | | 4,199 | | | | 4,444 | | | | 4,586 | |
Stock based compensation | | | 5 | | | | 6 | | | | 5 | | | | 7 | | | | 6 | |
Other | | | 1,538 | | | | 1,201 | | | | 1,234 | | | | 974 | | | | 1,439 | |
| | |
Total service, rental and maintenance | | | 15,816 | | | | 16,221 | | | | 16,821 | | | | 17,175 | | | | 18,941 | |
| | |
| | | | | | | | | | | | | | | | | | | | |
Selling and marketing | | | | | | | | | | | | | | | | | | | | |
Payroll and related | | | 2,494 | | | | 2,627 | | | | 2,659 | | | | 2,814 | | | | 2,964 | |
Commissions | | | 1,002 | | | | 1,007 | | | | 1,163 | | | | 1,367 | | | | 1,164 | |
Stock based compensation | | | 17 | | | | 17 | | | | 17 | | | | 22 | | | | 17 | |
Other | | | 320 | | | | 264 | | | | 221 | | | | 191 | | | | 412 | |
| | |
Total selling and marketing | | | 3,833 | | | | 3,915 | | | | 4,060 | | | | 4,394 | | | | 4,557 | |
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| | | | | | | | | | | | | | | | | | | | |
General and administrative | | | | | | | | | | | | | | | | | | | | |
Payroll and related | | | 5,677 | | | | 6,118 | | | | 5,719 | | | | 6,621 | | | | 6,912 | |
Stock based compensation | | | 203 | | | | 223 | | | | 15 | | | | 242 | | | | 240 | |
Bad debt | | | 393 | | | | 547 | | | | 571 | | | | 594 | | | | 713 | |
Facility rent | | | 726 | | | | 856 | | | | 992 | | | | 1,326 | | | | 1,354 | |
Telecommunications | | | 443 | | | | 480 | | | | 518 | | | | 603 | | | | 657 | |
Outside services | | | 5,186 | | | | 2,385 | | | | 2,463 | | | | 3,185 | | | | 3,267 | |
Taxes, licenses and permits | | | 1,332 | | | | 1,097 | | | | 1,276 | | | | 1,836 | | | | 1,591 | |
Other | | | 1,280 | | | | 3,123 | | | | 1,353 | | | | 1,517 | | | | 1,078 | |
| | |
Total general and administrative | | | 15,240 | | | | 14,829 | | | | 12,907 | | | | 15,924 | | | | 15,812 | |
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| | | | | | | | | | | | | | | | | | | | |
Severance and restructuring | | | 33 | | | | 1,738 | | | | 86 | | | | 41 | | | | 314 | |
Depreciation, amortization and accretion | | | 4,032 | | | | 4,226 | | | | 5,899 | | | | 6,698 | | | | 7,304 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
Operating expenses | | $ | 39,617 | | | $ | 41,980 | | | $ | 40,592 | | | $ | 45,366 | | | $ | 48,137 | |
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| | | | | | | | | | | | | | | | | | | | |
Capital expenditures | | $ | 1,494 | | | $ | 4,720 | | | $ | 1,730 | | | $ | 563 | | | $ | 1,725 | |
| | |
(a) | | Slight variations in totals are due to rounding. |