EXHIBIT 99.1
“Your Business Communications Partner”
News Release
| | |
For Immediate Release
Tuesday, August 9, 2005 | | Contact: Bob Lougee (703) 721-3080 |
USA Mobility Reports Second Quarter Operating Results
Significant Improvement in Subscriber and Revenue Trends
Continued Debt Reduction and Cash Generation
Solid Progress on Merger Integration Objectives
Financial Guidance for 2005
Alexandria, VA (August 9, 2005) — USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging services, today announced operating results for the second quarter ended June 30, 2005. USA Mobility was formed on November 16, 2004 by the merger of Arch Wireless, Inc. and Metrocall Holdings, Inc. USA Mobility’s historical financials are those of Arch Wireless, which was deemed the accounting acquirer in the merger.
Reported revenue for the second quarter of 2005 was $157.5 million, compared to $115.8 million in the second quarter of 2004, with the increase due entirely to the inclusion of Metrocall revenue for the three-month period ended June 30, 2005. Second quarter revenue decreased 4.9% from $165.7 million reported for the first quarter of 2005.
The company’s reported net loss for the second quarter of 2005 was $2.6 million, or $0.10 per fully diluted share, compared to net income of $3.1 million, or $0.15 per fully diluted share, in the second quarter of 2004. Included in second quarter 2005 operating expenses were non-recurring severance and related costs of $9.4 million.
Units in service totaled 5,348,000 at June 30, 2005, with 4,496,000 direct units in service and 852,000 indirect units in service. One-way units in service at June 30, 2005 totaled 4,876,000 while two-way units in service totaled 472,000. For the quarter, average revenue per unit was $9.89 for direct units in service and $4.58 per indirect unit
in service. USA Mobility reported a reduction of 510,000 units in service in the second quarter, including a one-time adjustment of 238,000 units (see explanation below). Excluding the one-time adjustment, net unit loss activity for the second quarter was 272,000 units in service, including 256,000 one-way units and 16,000 two-way units.
“We continue to see steady improvement in the rate of subscriber losses and pace of revenue decline,” said Vincent D. Kelly, president and chief executive officer. “Unit losses of 272,000 during the quarter compared to 347,000 in the first quarter and 388,000 in the fourth quarter of 2004 on a pro forma basis, represent an improvement in the sequential rate of decline from 6.1% to 5.8% to 4.8% over the past three quarters. At the same time,” Kelly said, “the decrease in revenue of 4.9% for the second quarter improved from a decrease of 7.9% in the prior period. While we cannot ensure a continuation of these trends, we are encouraged by these results.”
“In addition,” Kelly said, “we continued to make significant progress during the quarter to integrate our company. Key steps included consolidating the company’s operating structure, reorganizing senior management, streamlining sales and marketing operations, conversion to a single customer billing platform, and solid progress in network rationalization. While the paging and wireless messaging industry remains highly competitive,” he added, “we believe our efforts to successfully implement merger-related cost savings and operational synergies will allow us to continue to generate positive results over time.”
Kelly also noted that the company’s financial position improved significantly during the second quarter. “Our outstanding bank debt was $26.5 million at June 30, 2005 and our cash balance was $42.6 million, putting us in a positive net cash position at mid-year. In addition, since June 30 we have repaid an additional $8.5 million of debt, leaving us with a total bank debt balance of $18 million and a cash balance of $39.8 million as of July 31, 2005. Because we expect to be debt free before the end of the current quarter,” Kelly added, “our Board of Directors has determined that it is in the best interest of our shareholders to declare a special one-time dividend near the end of the year. The exact amount of the dividend and the date of payment have not yet been determined and will be disclosed in the future. Additionally, we have made no determination on future uses of cash beyond this one-time dividend. However, our Board will consider our options to return capital to our shareholders as time progresses.”
The company also announced financial guidance for 2005. Thomas L. Schilling, chief financial officer, said: “While projections are based on current trends and are always subject to change, USA Mobility expects to generate between $605 million and $615 million of revenue for the 12-month period ending December 31, 2005. The company also expects 2005 operating expenses (excluding depreciation and amortization expense) to be in a range between $465 million and $475 million. In addition, we expect capital expenditures for 2005 to range between $12 million and $15 million. This would put our potential year-end cash balance at approximately $75 million. We currently anticipate retaining approximately $25 million for working capital purposes and will revisit this requirement as time goes by and our operating expenses are reduced.”
Ending units in service at June 30th and revenue per unit for the second quarter reflect a one-time unit adjustment of 238,000 units (see attached schedule). The adjustment was made in connection with the company’s recently completed billing system consolidation of Metrocall’s legacy billing system to Arch’s billing system. As a result of the consolidation, 77,000 units were adjusted due to the definitional differences between the two systems, and another 161,000 units were adjusted to remove cellular phones sold by Metrocall in prior periods that had been inadvertently counted as paging units in service in Metrocall’s billing system. The unit adjustment had no impact on reported revenue, income or expenses for the second quarter or previous quarters.
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its second quarter results at 11:00 a.m. Eastern Time on Wednesday, August 10, 2005. The call-in number is 888-203-7667 (toll-free) or 719-955-1567 (toll). The pass code for the call is 2516741 (followed by the # sign). A replay of the call will be available from 3:00 p.m. ET on August 10 until 11:59 p.m. on Friday, August 26. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 2516741 (followed by the # sign).
* * * * * * * * *
About USA Mobility
USA Mobility, Inc., headquartered in Alexandria, Virginia, is a leading provider of paging products and other wireless services to the business, government and healthcare sectors. USA Mobility offers traditional one-way and advanced two-way paging via its nationwide networks covering more than 90% of the U.S. population and with roaming partners in Canada and Mexico. In addition, the company offers mobile voice and data services through Nextel and Cingular/AT&T Wireless, including BlackBerry and GPS location applications. The company’s product offerings include wireless connectivity systems for medical, business, government and other campus environments. USA Mobility focuses on the business-to-business marketplace and supplies mobile connectivity solutions to over two-thirds of the Fortune 1000 companies. For further information visit www.usamobility.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act: Statements contained herein or in prior press releases which are not historical fact, such as statements regarding USA Mobility’s expectations for 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, the timely and efficient integration of the operations and facilities of Metrocall and Arch 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.
USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| | | | | | | | | |
| | | December 31, 2004 | | June 30, 2005 |
| | | | | | | (Unaudited) |
ASSETS | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 46,995 | | | $ | 42,643 | |
| Accounts receivable, net | | | 37,750 | | | | 35,545 | |
| Prepaid rent, expenses and other | | | 15,460 | | | | 13,504 | |
| Deferred income tax assets | | | 26,906 | | | | 28,088 | |
| | | | | | | | | |
| Total current assets | | $ | 127,111 | | | $ | 119,780 | |
| Property and equipment, net | | | 216,508 | | | | 163,771 | |
| Goodwill | | | 151,791 | | | | 152,250 | |
| Intangible assets, net | | | 67,129 | | | | 52,004 | |
| Deferred income tax assets | | | 225,253 | | | | 223,682 | |
| Other assets | | | 5,517 | | | | 5,010 | |
| | | | | | | | | |
| TOTAL ASSETS | | $ | 793,309 | | | $ | 716,497 | |
| | | | | | | | | |
| |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Current maturities of long-term debt | | $ | 47,558 | | | $ | 17,681 | |
| Accounts payable and other accrued liabilities | | | 76,420 | | | | 74,772 | |
| Customer deposits | | | 4,316 | | | | 3,606 | |
| Deferred revenue | | | 23,623 | | | | 20,921 | |
| | | | | | | | | |
| Total current liabilities | | $ | 151,917 | | | $ | 116,980 | |
| Long-term debt, less current maturities | | | 47,500 | | | | 8,833 | |
| Other long-term liabilities | | | 10,555 | | | | 5,233 | |
| | | | | | | | | |
| TOTAL LIABILITIES | | $ | 209,972 | | | $ | 131,046 | |
| | | | | | | | | |
| Stockholders’ equity: | | | | | | | | |
| Preferred stock | | | — | | | | — | |
| Common stock | | | 3 | | | | 3 | |
| Additional paid-in capital | | | 554,946 | | | | 558,417 | |
| Retained earnings | | | 28,388 | | | | 27,031 | |
| | | | | | | | | |
| TOTAL STOCKHOLDERS’ EQUITY | | | 583,337 | | | | 585,451 | |
| | | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 793,309 | | | $ | 716,497 | |
| | | | | | | | | |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(unaudited and in thousands, except share and per share amounts)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended June 30, | | Six Months Ended June 30, |
| | | 2004 | | 2005 | | 2004 | | 2005 |
| Revenue: | | | | | | | | | | | | | | | | |
| Service, rental and maintenance, net of service credits | | $ | 111,174 | | | $ | 151,483 | | | $ | 230,720 | | | $ | 310,633 | |
| Product sales | | | 4,623 | | | | 6,054 | | | | 8,736 | | | | 12,581 | |
| | | | | | | | | | | | | | | | | |
| Total revenue | | | 115,797 | | | | 157,537 | | | | 239,456 | | | | 323,214 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Cost of products sold | | | 856 | | | | 929 | | | | 1,794 | | | | 2,208 | |
| Service, rental and maintenance | | | 36,988 | | | | 56,429 | | | | 75,976 | | | | 113,078 | |
| Selling and marketing | | | 8,757 | | | | 11,156 | | | | 17,825 | | | | 21,558 | |
| General and administrative | | | 28,968 | | | | 47,624 | | | | 60,085 | | | | 96,136 | |
| Depreciation and amortization | | | 31,071 | | | | 32,890 | | | | 57,380 | | | | 71,425 | |
| Stock based compensation | | | 2,054 | | | | 668 | | | | 4,321 | | | | 2,079 | |
| Severance and related costs | | | 456 | | | | 9,442 | | | | 4,145 | | | | 14,462 | |
| | | | | | | | | | | | | | | | | |
| Total operating expenses | | | 109,150 | | | | 159,138 | | | | 221,526 | | | | 320,946 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Operating income (loss) | | | 6,647 | | | | (1,601 | ) | | | 17,930 | | | | 2,268 | |
| Interest expense, net | | | (1,700 | ) | | | (499 | ) | | | (5,029 | ) | | | (1,712 | ) |
| Loss on extinguishment of long-term debt | | | — | | | | (432 | ) | | | — | | | | (1,026 | ) |
| Other income (expense) | | | 177 | | | | (73 | ) | | | 345 | | | | 219 | |
| | | | | | | | | | | | | | | | | |
| Income (loss) before income tax expense | | | 5,124 | | | | (2,605 | ) | | | 13,246 | | | | (251 | ) |
| Income tax expense | | | (2,060 | ) | | | (44 | ) | | | (5,325 | ) | | | (1,106 | ) |
| | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 3,064 | | | $ | (2,649 | ) | | $ | 7,921 | | | $ | (1,357 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic net income (loss) per common share | | $ | 0.15 | | | $ | (0.10 | ) | | $ | 0.40 | | | $ | (0.05 | ) |
| | | | | | | | | | | | | | | | | |
| Diluted net income (loss) per common share | | $ | 0.15 | | | $ | (0.10 | ) | | $ | 0.39 | | | $ | (0.05 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Basic weighted average common shares outstanding | | | 19,965,076 | | | | 27,226,076 | | | | 19,982,635 | | | | 27,167,381 | |
| | | | | | | | | | | | | | | | | |
| Diluted weighted average common shares outstanding | | | 20,109,191 | | | | 27,404,543 | | | | 20,093,617 | | | | 27,393,390 | |
| | | | | | | | | | | | | | | | | |
USA MOBILITY, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
| | | | | | | | | |
| | | Six Months Ended June 30, |
| | | 2004 | | 2005 |
| Cash flows from operating activities: | | | | | | | | |
| Net income (loss) | | $ | 7,921 | | | $ | (1,357 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 57,380 | | | | 71,425 | |
| Amortization of deferred financing costs | | | — | | | | 630 | |
| Amortization of stock based compensation | | | 1,448 | | | | 2,079 | |
| Deferred income tax expense | | | 5,325 | | | | 389 | |
| Loss on extinguishment of long-term debt | | | — | | | | 1,026 | |
| Gain on disposals of property and equipment | | | (230 | ) | | | (32 | ) |
| Provisions for doubtful accounts, service credits and other | | | 4,268 | | | | 11,328 | |
| Changes in assets and liabilities: | | | | | | | | |
| Accounts receivable | | | 1,395 | | | | (9,304 | ) |
| Prepaid expenses and other | | | (129 | ) | | | 2,018 | |
| Intangibles and other long-term assets | | | — | | | | 1,346 | |
| Accounts payable and accrued expenses | | | (18,711 | ) | | | (1,650 | ) |
| Customer deposits and deferred revenue | | | (4,161 | ) | | | (3,412 | ) |
| Other long-term liabilities | | | 2,801 | | | | (5,322 | ) |
| | | | | | | | | |
| Net cash provided by operating activities | | $ | 57,307 | | | $ | 69,164 | |
| | | | | | | | | |
| | | | | | | | | |
| Cash flows from investing activities: | | | | | | | | |
| Purchases of property and equipment | | | (8,138 | ) | | | (5,383 | ) |
| Proceeds from disposals of property and equipment | | | 1,618 | | | | 176 | |
| Receipts from note receivable | | | 110 | | | | 181 | |
| | | | | | | | | |
| Net cash used for investing activities | | $ | (6,410 | ) | | $ | (5,026 | ) |
| | | | | | | | | |
| | | | | | | | | |
| Cash flows from financing activities: | | | | | | | | |
| Repayment of long-term debt | | | (60,000 | ) | | | (68,544 | ) |
| Proceeds from exercise of options | | | — | | | | 54 | |
| Purchase of treasury shares | | | (3,112 | ) | | | — | |
| | | | | | | | | |
| Net cash used for financing activities | | $ | (63,112 | ) | | $ | (68,490 | ) |
| | | | | | | | | |
| | | | | | | | | |
| Net decrease in cash and cash equivalents | | $ | (12,215 | ) | | $ | (4,352 | ) |
| Cash and cash equivalents, beginning of period | | | 34,582 | | | | 46,995 | |
| | | | | | | | | |
| Cash and cash equivalents, end of period | | $ | 22,367 | | | $ | 42,643 | |
| | | | | | | | | |
Supplemental disclosure: | | | | | | | | |
| Interest paid | | $ | 6,690 | | | $ | 1,996 | |
| | | | | | | | | |
| Income taxes paid | | $ | — | | | $ | — | |
| | | | | | | | | |
USA MOBILITY, INC.
PRO FORMA AND ADJUSTED UNITS IN SERVICE ACTIVITY (a) (b)
units in thousands (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | March 2004 | | June 2004 | | September 2004 | | December 2004 | | March 2005 | | June 2005 |
| Direct One-Way: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning units in service | | | 5,329 | | | | 5,100 | | | | 4,909 | | | | 4,690 | | | | 4,464 | | | | 4,273 | |
| Gross placements | | | 225 | | | | 182 | | | | 182 | | | | 166 | | | | 141 | | | | 134 | |
| Disconnects | | | (455 | ) | | | (372 | ) | | | (401 | ) | | | (392 | ) | | | (332 | ) | | | (293 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending units in service | | | 5,100 | | | | 4,909 | | | | 4,690 | | | | 4,464 | | | | 4,273 | | | | 4,114 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Two-Way: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning units in service | | | 506 | | | | 483 | | | | 462 | | | | 449 | | | | 422 | | | | 397 | |
| Gross placements | | | 40 | | | | 32 | | | | 35 | | | | 29 | | | | 22 | | | | 29 | |
| Disconnects | | | (63 | ) | | | (53 | ) | | | (48 | ) | | | (56 | ) | | | (47 | ) | | | (44 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending units in service | | | 483 | | | | 462 | | | | 449 | | | | 422 | | | | 397 | | | | 382 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Indirect One-Way: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning units in service | | | 1,716 | | | | 1,474 | | | | 1,253 | | | | 1,101 | | | | 987 | | | | 859 | |
| Gross placements | | | 157 | | | | 145 | | | | 160 | | | | 143 | | | | 107 | | | | 92 | |
| Disconnects | | | (399 | ) | | | (366 | ) | | | (312 | ) | | | (257 | ) | | | (235 | ) | | | (189 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending units in service | | | 1,474 | | | | 1,253 | | | | 1,101 | | | | 987 | | | | 859 | | | | 762 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Two-Way: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning units in service | | | 131 | | | | 123 | | | | 121 | | | | 115 | | | | 94 | | | | 91 | |
| Gross placements | | | 20 | | | | 16 | | | | 20 | | | | 7 | | | | 7 | | | | 7 | |
| Disconnects | | | (28 | ) | | | (18 | ) | | | (26 | ) | | | (28 | ) | | | (10 | ) | | | (8 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending units in service | | | 123 | | | | 121 | | | | 115 | | | | 94 | | | | 91 | | | | 90 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning units in service | | | 7,683 | | | | 7,180 | | | | 6,746 | | | | 6,355 | | | | 5,967 | | | | 5,620 | |
| Gross placements | | | 442 | | | | 375 | | | | 397 | | | | 345 | | | | 277 | | | | 262 | |
| Disconnects | | | (945 | ) | | | (809 | ) | | | (787 | ) | | | (733 | ) | | | (624 | ) | | | (534 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending units in service | | | 7,180 | | | | 6,746 | | | | 6,355 | | | | 5,967 | | | | 5,620 | | | | 5,348 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | Assumes Arch and Metrocall combined as of January 1, 2004 and the unit in service adjustment reflected in March 2004.
|
| |
| (b) | | Amounts have been adjusted for rounding. |
USA MOBILITY, INC.
IMPACT OF THE ADJUSTMENT TO UNITS IN SERVICE
(unaudited and in thousands except for average revenue per unit)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | March 2004 | | June 2004 | | September 2004 | | December 2004 | | March 2005 | | June 2005 |
Units in Service Adjustment Summary | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Revised Adjusted Proforma Ending UIS | | | | | | | | | | | | | | | | | | | | | | | | |
| Direct One-Way | | | 5,100 | | | | 4,909 | | | | 4,690 | | | | 4,464 | | | | 4,273 | | | | 4,114 | |
| Direct Two-Way | | | 483 | | | | 462 | | | | 449 | | | | 422 | | | | 397 | | | | 382 | |
| Indirect One-Way | | | 1,474 | | | | 1,253 | | | | 1,101 | | | | 987 | | | | 859 | | | | 762 | |
| Indirect Two-Way | | | 123 | | | | 121 | | | | 115 | | | | 94 | | | | 91 | | | | 90 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | 7,180 | | | | 6,746 | | | | 6,355 | | | | 5,967 | | | | 5,620 | | | | 5,348 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Previous Unadjusted Proforma & Reported Ending UIS | | | | | | | | | | | | | | | | | | | | | | | | |
| Direct One-Way | | | 5,181 | | | | 4,994 | | | | 4,779 | | | | 4,557 | | | | 4,368 | | | | | |
| Direct Two-Way | | | 507 | | | | 486 | | | | 473 | | | | 446 | | | | 422 | | | | | |
| Indirect One-Way | | | 1,603 | | | | 1,382 | | | | 1,230 | | | | 1,117 | | | | 989 | | | | | |
| Indirect Two-Way | | | 112 | | | | 110 | | | | 104 | | | | 83 | | | | 80 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | 7,403 | | | | 6,972 | | | | 6,586 | | | | 6,202 | | | | 5,858 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Adjustment to Ending UIS | | | | | | | | | | | | | | | | | | | | | | | | |
| Direct One-Way | | | (81 | ) | | | (85 | ) | | | (89 | ) | | | (93 | ) | | | (95 | ) | | | | |
| Direct Two-Way | | | (24 | ) | | | (24 | ) | | | (24 | ) | | | (24 | ) | | | (25 | ) | | | | |
| Indirect One-Way | | | (129 | ) | | | (129 | ) | | | (129 | ) | | | (130 | ) | | | (129 | ) | | | | |
| Indirect Two-Way | | | 11 | | | | 11 | | | | 11 | | | | 11 | | | | 12 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | | (223 | ) | | | (226 | ) | | | (231 | ) | | | (235 | ) | | | (238 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
ARPU Adjustment Summary | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Revised Adjusted Proforma ARPU | | | | | | | | | | | | | | | | | | | | | | | | |
| Direct One-Way | | $ | 9.10 | | | $ | 8.96 | | | $ | 8.89 | | | $ | 8.75 | | | $ | 8.65 | | | $ | 8.62 | |
| Direct Two-Way | | $ | 25.15 | | | $ | 24.68 | | | $ | 24.22 | | | $ | 23.93 | | | $ | 24.00 | | | $ | 23.69 | |
| Indirect One-Way | | $ | 4.06 | | | $ | 4.26 | | | $ | 4.12 | | | $ | 4.26 | | | $ | 4.07 | | | $ | 4.11 | |
| Indirect Two-Way | | $ | 12.89 | | | $ | 12.07 | | | $ | 11.30 | | | $ | 10.41 | | | $ | 9.12 | | | $ | 8.63 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 9.15 | | | $ | 9.16 | | | $ | 9.14 | | | $ | 9.09 | | | $ | 9.01 | | | $ | 9.02 | |
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| Previous Unadjusted Proforma & Reported ARPU | | | | | | | | | | | | | | | | | | | | | | | | |
| Direct One-Way | | $ | 8.96 | | | $ | 8.81 | | | $ | 8.73 | | | $ | 8.58 | | | $ | 8.46 | | | | | |
| Direct Two-Way | | $ | 23.98 | | | $ | 23.48 | | | $ | 23.00 | | | $ | 22.68 | | | $ | 22.64 | | | | | |
| Indirect One-Way | | $ | 3.76 | | | $ | 3.89 | | | $ | 3.71 | | | $ | 3.79 | | | $ | 3.57 | | | | | |
| Indirect Two-Way | | $ | 14.17 | | | $ | 13.32 | | | $ | 12.51 | | | $ | 11.69 | | | $ | 10.46 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 8.89 | | | $ | 8.84 | | | $ | 8.79 | | | $ | 8.75 | | | $ | 8.67 | | | | | |
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| Adjustment to ARPU | | | | | | | | | | | | | | | | | | | | | | | | |
| Direct One-Way | | $ | 0.14 | | | $ | 0.15 | | | $ | 0.16 | | | $ | 0.17 | | | $ | 0.19 | | | | | |
| Direct Two-Way | | $ | 1.17 | | | $ | 1.20 | | | $ | 1.22 | | | $ | 1.25 | | | $ | 1.36 | | | | | �� |
| Indirect One-Way | | $ | 0.30 | | | $ | 0.37 | | | $ | 0.41 | | | $ | 0.47 | | | $ | 0.50 | | | | | |
| Indirect Two-Way | | ($ | 1.28 | ) | | ($ | 1.25 | ) | | ($ | 1.21 | ) | | ($ | 1.28 | ) | | ($ | 1.34 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 0.26 | | | $ | 0.32 | | | $ | 0.35 | | | $ | 0.34 | | | $ | 0.34 | | | | | |
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