Exhibit 99.1
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News Release
For Immediate Release | Contact: Bob Lougee (703) 721-3080 | |
Wednesday, May 9, 2007 |
USA Mobility Reports First Quarter Operating Results
Subscriber, Revenue and Expense Reduction Trends Improve
Stockholder and Analyst Meetings Scheduled for May 16
Alexandria, VA (May 9, 2007) — USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced operating results for the first quarter ended March 31, 2007. Reported revenue for the quarter was $111.5 million. EBITDA (earnings before interest, tax, depreciation, amortization and accretion) totaled $35.1 million, while operating income was $21.8 million.
First quarter results included:
• | The annual rate of revenue erosion improved to 17.3 percent from 18.6 percent in the first quarter of 2006. Revenue declined $4.5 million, or 3.9 percent, in the first quarter, compared to $8.5 million, or 5.9 percent, in the first quarter of 2006. | ||
• | Average revenue per unit (“ARPU”) increased to $8.65 in the first quarter from $8.57 in the fourth quarter of 2006, the first quarterly increase in ARPU in six quarters. ARPU was $8.80 in the first quarter of 2006. | ||
• | Operating expenses, excluding depreciation, amortization and accretion, totaled $76.4 million in the first quarter, a reduction of $8.8 million, or 10.3 percent, from $85.2 million in the fourth quarter of 2006. Quarterly operating expenses have declined by $19.8 million, or 20.6 percent, from the first quarter 2006, and, as percentage of revenue, are at their lowest level in nearly three years. | ||
• | EBITDA margin (or EBITDA as a percentage of revenue) increased to 31.5 percent in the first quarter, the highest level in more than two years, compared to 28.6 percent in the first quarter of 2006 and 26.6 percent in fourth quarter of 2006. | ||
• | Net unit loss was 193,000 in the first quarter, compared to 252,000 in the first quarter of 2006. Total units in service at March 31, 2007 were 3,912,000, compared to 4,105,000 at December 31, 2006. |
• | The annual rate of subscriber erosion in the first quarter improved to 15.6 percent from 17.5 percent in the first quarter of 2006. The quarterly rate of subscriber loss was 4.7 percent in the first quarter, historically the quarter with the highest net churn, compared to 5.2 percent in the first quarter of 2006. | ||
• | Capital expenses were $5.1 million, compared to $4.4 million in the year-earlier quarter. | ||
• | The Company’s cash balance at March 31, 2007 was $80.3 million. |
“We continued to make significant progress during the first quarter,” said Vincent D. Kelly, president and chief executive officer. “The annual rate of subscriber and revenue erosion showed further improvement as we focused our sales and marketing efforts on our core subscriber segments — including healthcare, government services and large business enterprise — and placed greater emphasis on our customer care and loyalty programs. While gross unit placements declined from robust fourth quarter levels, we were encouraged that total disconnects were flat with the prior quarter. As we move through 2007 we look for continued improvement in both gross placements and customer disconnects.”
Kelly added, “During the quarter we also established and solidified several key relationships that we believe will enhance our standing and prospects in the important healthcare market. We partnered with Amcom Software, Inc. to provide advanced automated wireless communications capabilities to healthcare organizations, we joined with the American College of Emergency Physicians as its official paging and cellular technology sponsor, and we expanded our customer relationship with the U.S. Department of Health and Human Services by providing devices for the agency’s National Disaster Medical Systems unit, which is responsible for nationwide emergency medical response. We believe these alliances, and others, underscore USA Mobility’s emerging role as a provider of essential wireless communications services to the hospital and healthcare industry as well as emergency medical and disaster preparedness organizations located throughout the country.”
Kelly also noted that the Company returned capital to stockholders again during the first quarter, consistent with its stated cash flow generation strategy and goal of returning cash to stockholders. The Company paid a regular quarterly cash distribution of $0.65 per share, or an aggregate amount of approximately $17.8 million, on March 15, 2007 to stockholders of record on February 22, 2007. The cash distribution was paid as a return of capital. In addition, the Board of Directors on May 2, 2007 declared both a regular quarterly cash distribution of $0.65 per share and a special cash distribution of $1.00 per share. Both the regular and special cash distributions will be paid on June 7, 2007 to stockholders of record on May 17, 2007. The Company expects the entire amount of both cash distributions, a total of approximately $45.1 million, to be paid as a return of capital.
Thomas L. Schilling, chief financial officer, said the Company continued its aggressive expense reduction efforts during the quarter. “Operating expenses (excluding depreciation, amortization and accretion) of $76.4 million decreased 10.3 percent from the fourth quarter of 2006 and were 20.6 percent lower than they were a year ago,” he said, “outpacing the year-over-year decline in revenue of 17.3 percent. Moreover, operating expense as a percentage of revenue was 68.5 percent in the first quarter, the lowest level since USA Mobility was formed in November of 2004. As a result, the combination of lower expenses, coupled with gradually improving revenue trends and slightly higher ARPU, contributed to an increase in both quarter-to-quarter EBITDA and EBIDTA margin. While we are pleased and encouraged by these financial trends,” Schilling said, “we are maintaining our previous financial guidance for 2007 of revenues between $400 million to $410 million, operating expenses — excluding depreciation, amortization and accretion — between $295 million to $300 million, and capital expenses between $18 million to $20 million.”
The Company is working with its auditors, Grant Thornton LLP, to finalize the implementation of FASB Interpretation No. 48,Accounting for Uncertainty in Income Taxes. Once the implementation is complete, the Company will file its report on Form 10-Q for the quarter ended March 31, 2007 with the U.S. Securities and Exchange Commission.
* * * * * * * *
As previously announced, USA Mobility will host a meeting for financial analysts and other investors in New York City at approximately 10:30 a.m. on May 16, 2007, immediately following the Company’s Annual Meeting of Stockholders. The Annual Meeting of Stockholders is scheduled for 10:00 a.m. at the offices of Latham & Watkins LLP, Suite 1200, 885 Third Avenue (53rd Street and Third Avenue). The analyst meeting, which will include a review of first quarter results, will be held at the same location.
Financial analysts and others planning to attend the analyst meeting should RSVP to Shauna Fain at 703-718-6650 orshauna.fain@usamobility.com. For those investors unable to attend the analyst meeting, it will be webcast and accessible via conference call. The dial-in number for the call is 866-288-0540 (toll-free) or 913-312-6666 (toll). The pass code for the call is 4172209. A replay of the call will be available from 2:30 p.m. ET on May 16 until 11:59 p.m. on Wednesday, May 30. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 4172209. The analyst meeting will be webcast via the investor relations section of the Company’s website atwww.usamobility.com.
* * * * * * * * *
About USA Mobility
USA Mobility, Inc., headquartered in Alexandria, Virginia, is a comprehensive provider of reliable and affordable wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors. As a single-source provider, USA Mobility‘sfocus is on the business-to-business marketplace and supplying wireless connectivity solutions to more than 80 percent of the Fortune 1000 companies. The Company operates nationwide networks for both one-way paging and advanced two-way messaging services. In addition, USA Mobility offers mobile voice and data services through Sprint Nextel, including BlackBerry devices and GPS location applications. The Company’s product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. USA Mobility also offers M2M (machine-to-machine) telemetry solutions for numerous applications that include asset tracking, utility meter reading and other remote device monitoring applications on a national scale. For further information visitwww.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, our ability to continue to reduce operating expenses and to generate cash from operations, our future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, technological improvements in hand-held devices and transmission services offered by our competitors, 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)
(unaudited and in thousands, except share and per share amounts)
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS(a)
(unaudited and in thousands, except share and per share amounts)
For the three months ended | |||||||||||||||||||||
3/31/06 | 6/30/06 | 9/30/06 | 12/31/06 | 3/31/07 | |||||||||||||||||
Revenue: | |||||||||||||||||||||
Paging service | $ | 125,673 | $ | 118,872 | $ | 112,129 | $ | 107,520 | $ | 104,003 | |||||||||||
Cellular | 2,026 | 2,096 | 1,728 | 1,877 | 2,087 | ||||||||||||||||
Product sales | 6,131 | 5,180 | 4,851 | 5,394 | 4,400 | ||||||||||||||||
Other | 1,062 | 1,057 | 845 | 1,253 | 1,052 | ||||||||||||||||
Total revenue | 134,892 | 127,205 | 119,553 | 116,044 | 111,542 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Cost of products sold | 786 | 1,169 | 1,184 | 698 | 687 | ||||||||||||||||
Service, rental and maintenance | 48,092 | 44,769 | 42,489 | 41,770 | 39,033 | ||||||||||||||||
Selling and marketing | 11,059 | 11,118 | 10,929 | 10,796 | 10,242 | ||||||||||||||||
General and administrative | 36,142 | 32,208 | 30,994 | 28,533 | 26,448 | ||||||||||||||||
Depreciation, amortization and accretion | 18,794 | 18,900 | 18,361 | 17,244 | 13,318 | ||||||||||||||||
Severance and restructuring | 170 | 321 | 682 | 3,413 | 17 | ||||||||||||||||
Total operating expenses | 115,043 | 108,485 | 104,639 | 102,454 | 89,745 | ||||||||||||||||
% of total revenue | 85.3 | % | 85.3 | % | 87.5 | % | 88.3 | % | 80.5 | % | |||||||||||
Operating income | 19,849 | 18,720 | 14,914 | 13,590 | 21,797 | ||||||||||||||||
% of total revenue | 14.7 | % | 14.7 | % | 12.5 | % | 11.7 | % | 19.5 | % | |||||||||||
Interest income, net | 549 | 1,023 | 717 | 1,579 | 951 | ||||||||||||||||
Other income (expense), net | 62 | 988 | 103 | (353 | ) | (516 | ) | ||||||||||||||
Income before income tax expense | $ | 20,460 | $ | 20,731 | $ | 15,734 | $ | 14,816 | $ | 22,232 | |||||||||||
Reconciliation of operating income to EBITDA (b): | |||||||||||||||||||||
Operating income | $ | 19,849 | $ | 18,720 | $ | 14,914 | $ | 13,590 | $ | 21,797 | |||||||||||
Add back: Depreciation, amortization and accretion | 18,794 | 18,900 | 18,361 | 17,244 | 13,318 | ||||||||||||||||
EBITDA | $ | 38,643 | $ | 37,620 | $ | 33,275 | $ | 30,834 | $ | 35,115 | |||||||||||
% of total revenue | 28.6 | % | 29.6 | % | 27.8 | % | 26.6 | % | 31.5 | % | |||||||||||
(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.
UNITS IN SERVICE ACTIVITY (a)
(unaudited and in thousands)
UNITS IN SERVICE ACTIVITY (a)
(unaudited and in thousands)
For the three months ended | |||||||||||||||||||||
3/31/06 | 6/30/06 | 9/30/06 | 12/31/06 | 3/31/07 | |||||||||||||||||
Units in service | |||||||||||||||||||||
Beginning units in service | |||||||||||||||||||||
Direct one-way | 3,835 | 3,678 | 3,547 | 3,429 | 3,318 | ||||||||||||||||
Direct two-way | 348 | 324 | 307 | 292 | 280 | ||||||||||||||||
Total direct | 4,183 | 4,002 | 3,854 | 3,721 | 3,598 | ||||||||||||||||
Indirect one-way | 603 | 535 | 483 | 449 | 417 | ||||||||||||||||
Indirect two-way | 100 | 97 | 94 | 89 | 90 | ||||||||||||||||
Total indirect | 703 | 632 | 577 | 538 | 507 | ||||||||||||||||
Total beginning units in service | 4,886 | 4,634 | 4,431 | 4,259 | 4,105 | ||||||||||||||||
Gross placements | |||||||||||||||||||||
Direct one-way | 108 | 119 | 120 | 112 | 91 | ||||||||||||||||
Direct two-way | 15 | 15 | 15 | 15 | 12 | ||||||||||||||||
Total direct | 123 | 134 | 135 | 127 | 103 | ||||||||||||||||
Indirect one-way | 24 | 18 | 24 | 36 | 19 | ||||||||||||||||
Indirect two-way | 4 | 5 | 5 | 6 | 8 | ||||||||||||||||
Total indirect | 28 | 23 | 29 | 42 | 27 | ||||||||||||||||
Total gross placements | 151 | 157 | 164 | 169 | 130 | ||||||||||||||||
Gross disconnects | |||||||||||||||||||||
Direct one-way | (265 | ) | (250 | ) | (238 | ) | (222 | ) | (230 | ) | |||||||||||
Direct two-way | (39 | ) | (32 | ) | (30 | ) | (28 | ) | (29 | ) | |||||||||||
Total direct | (304 | ) | (282 | ) | (268 | ) | (250 | ) | (259 | ) | |||||||||||
Indirect one-way | (92 | ) | (70 | ) | (58 | ) | (68 | ) | (58 | ) | |||||||||||
Indirect two-way | (8 | ) | (8 | ) | (10 | ) | (5 | ) | (6 | ) | |||||||||||
Total indirect | (100 | ) | (78 | ) | (68 | ) | (73 | ) | (64 | ) | |||||||||||
Total gross disconnects | (404 | ) | (360 | ) | (336 | ) | (323 | ) | (323 | ) | |||||||||||
Net gain (loss) | |||||||||||||||||||||
Direct one-way | (157 | ) | (131 | ) | (118 | ) | (111 | ) | (139 | ) | |||||||||||
Direct two-way | (24 | ) | (17 | ) | (15 | ) | (12 | ) | (17 | ) | |||||||||||
Total direct | (181 | ) | (148 | ) | (133 | ) | (123 | ) | (156 | ) | |||||||||||
Indirect one-way | (68 | ) | (52 | ) | (34 | ) | (32 | ) | (39 | ) | |||||||||||
Indirect two-way | (4 | ) | (3 | ) | (5 | ) | 1 | 2 | |||||||||||||
Total indirect | (72 | ) | (55 | ) | (39 | ) | (31 | ) | (37 | ) | |||||||||||
Total net change | (253 | ) | (203 | ) | (172 | ) | (154 | ) | (193 | ) | |||||||||||
Ending units in service | |||||||||||||||||||||
Direct one-way | 3,678 | 3,547 | 3,429 | 3,318 | 3,179 | ||||||||||||||||
Direct two-way | 324 | 307 | 292 | 280 | 263 | ||||||||||||||||
Total direct | 4,002 | 3,854 | 3,721 | 3,598 | 3,442 | ||||||||||||||||
Indirect one-way | 535 | 483 | 449 | 417 | 378 | ||||||||||||||||
Indirect two-way | 97 | 94 | 89 | 90 | 92 | ||||||||||||||||
Total indirect | 632 | 577 | 538 | 507 | 470 | ||||||||||||||||
Total ending units in service | 4,634 | 4,431 | 4,259 | 4,105 | 3,912 | ||||||||||||||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN
(unaudited)
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN
(unaudited)
For the three months ended | |||||||||||||||||||||
3/31/06 | 6/30/06 | 9/30/06 | 12/31/06 | 3/31/07 | |||||||||||||||||
ARPU | |||||||||||||||||||||
Direct one-way | $ | 8.17 | $ | 8.06 | $ | 7.95 | $ | 7.86 | $ | 7.96 | |||||||||||
Direct two-way | 23.61 | 23.75 | 23.27 | 23.61 | 23.91 | ||||||||||||||||
Total direct | 9.44 | 9.32 | 9.16 | 9.09 | 9.18 | ||||||||||||||||
Indirect one-way | 4.53 | 4.59 | 4.49 | 4.56 | 4.45 | ||||||||||||||||
Indirect two-way | 6.93 | 6.99 | 6.53 | 6.63 | 6.30 | ||||||||||||||||
Total indirect | 4.89 | 4.97 | 4.82 | 4.92 | 4.79 | ||||||||||||||||
Total one-way | 7.69 | 7.63 | 7.54 | 7.49 | 7.57 | ||||||||||||||||
Total two-way | 19.85 | 19.87 | 19.35 | 19.55 | 19.46 | ||||||||||||||||
Total paging ARPU | $ | 8.80 | $ | 8.74 | $ | 8.60 | $ | 8.57 | $ | 8.65 | |||||||||||
Gross disconnect rate (a) | |||||||||||||||||||||
Direct one-way | -6.9 | % | -6.8 | % | -6.7 | % | -6.5 | % | -6.9 | % | |||||||||||
Direct two-way | -11.1 | % | -9.8 | % | -9.8 | % | -9.5 | % | -10.5 | % | |||||||||||
Total direct | -7.3 | % | -7.0 | % | -7.0 | % | -6.7 | % | -7.2 | % | |||||||||||
Indirect one-way | -15.3 | % | -13.1 | % | -12.0 | % | -15.1 | % | -14.0 | % | |||||||||||
Indirect two-way | -7.1 | % | -8.2 | % | -10.6 | % | -5.8 | % | -6.2 | % | |||||||||||
Total indirect | -14.2 | % | -12.4 | % | -11.8 | % | -13.5 | % | -12.6 | % | |||||||||||
Total one-way | -8.1 | % | -7.6 | % | -7.4 | % | -7.5 | % | -7.7 | % | |||||||||||
Total two-way | -10.2 | % | -9.5 | % | -10.0 | % | -8.6 | % | -9.4 | % | |||||||||||
Total paging gross disconnect rate | -8.3 | % | -7.8 | % | -7.6 | % | -7.6 | % | -7.9 | % | |||||||||||
Net gain / loss rate (b) | |||||||||||||||||||||
Direct one-way | -4.1 | % | -3.6 | % | -3.3 | % | -3.2 | % | -4.2 | % | |||||||||||
Direct two-way | -6.8 | % | -5.2 | % | -4.9 | % | -4.4 | % | -6.0 | % | |||||||||||
Total direct | -4.3 | % | -3.7 | % | -3.5 | % | -3.3 | % | -4.3 | % | |||||||||||
Indirect one-way | -11.3 | % | -9.8 | % | -7.1 | % | -7.1 | % | -9.5 | % | |||||||||||
Indirect two-way | -3.5 | % | -2.6 | % | -4.5 | % | 1.0 | % | 2.5 | % | |||||||||||
Total indirect | -10.2 | % | -8.7 | % | -6.7 | % | -5.7 | % | -7.3 | % | |||||||||||
Total one-way | -5.1 | % | -4.3 | % | -3.8 | % | -3.7 | % | -4.8 | % | |||||||||||
Total two-way | -6.1 | % | -4.6 | % | -4.8 | % | -3.1 | % | -3.9 | % | |||||||||||
Total paging net gain / loss rate | -5.2 | % | -4.4 | % | -3.9 | % | -3.6 | % | -4.7 | % | |||||||||||
(a) | Gross disconnect rate is current period disconnected units divided by prior period ending units in service. | |
(b) | 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.
SUPPLEMENTAL INFORMATION BY CUSTOMER SEGMENT (a)
(unaudited)
SUPPLEMENTAL INFORMATION BY CUSTOMER SEGMENT (a)
(unaudited)
For the three months ended | |||||||||||||||||||||
3/31/06 | 6/30/06 | 9/30/06 | 12/31/06 | 3/31/07 | |||||||||||||||||
Gross placement rate | |||||||||||||||||||||
Healthcare | 3.8 | % | 4.5 | % | 4.1 | % | 4.2 | % | 3.6 | % | |||||||||||
Government | 2.2 | % | 2.3 | % | 2.6 | % | 2.1 | % | 2.2 | % | |||||||||||
Large enterprise | 2.6 | % | 3.0 | % | 3.8 | % | 3.9 | % | 2.7 | % | |||||||||||
Other | 2.7 | % | 3.0 | % | 3.3 | % | 3.1 | % | 2.6 | % | |||||||||||
Total direct | 2.9 | % | 3.3 | % | 3.5 | % | 3.4 | % | 2.9 | % | |||||||||||
Total indirect | 4.0 | % | 3.7 | % | 5.1 | % | 7.8 | % | 5.3 | % | |||||||||||
Total | 3.1 | % | 3.4 | % | 3.7 | % | 4.0 | % | 3.2 | % | |||||||||||
Gross disconnect rate | |||||||||||||||||||||
Healthcare | -4.6 | % | -4.7 | % | -5.3 | % | -4.6 | % | -4.6 | % | |||||||||||
Government | -5.7 | % | -6.3 | % | -5.9 | % | -5.8 | % | -5.8 | % | |||||||||||
Large enterprise | -7.7 | % | -7.4 | % | -6.9 | % | -6.8 | % | -8.4 | % | |||||||||||
Other | -10.3 | % | -9.5 | % | -9.3 | % | -9.5 | % | -10.9 | % | |||||||||||
Total direct | -7.3 | % | -7.0 | % | -7.0 | % | -6.7 | % | -7.2 | % | |||||||||||
Total indirect | -14.2 | % | -12.4 | % | -11.8 | % | -13.5 | % | -12.6 | % | |||||||||||
Total | -8.3 | % | -7.8 | % | -7.6 | % | -7.6 | % | -7.8 | % | |||||||||||
Net loss rate | |||||||||||||||||||||
Healthcare | -0.7 | % | -0.2 | % | -1.1 | % | -0.4 | % | -1.1 | % | |||||||||||
Government | -3.5 | % | -4.1 | % | -3.3 | % | -3.6 | % | -3.6 | % | |||||||||||
Large enterprise | -5.1 | % | -4.3 | % | -3.0 | % | -2.9 | % | -5.7 | % | |||||||||||
Other | -7.5 | % | -6.6 | % | -6.1 | % | -6.4 | % | -8.3 | % | |||||||||||
Total direct | -4.3 | % | -3.7 | % | -3.5 | % | -3.3 | % | -4.3 | % | |||||||||||
Total indirect | -10.2 | % | -8.7 | % | -6.7 | % | -5.7 | % | -7.3 | % | |||||||||||
Total | -5.2 | % | -4.4 | % | -3.9 | % | -3.6 | % | -4.7 | % | |||||||||||
End of period units in service % of total | |||||||||||||||||||||
Healthcare | 29.0 | % | 30.5 | % | 31.5 | % | 32.5 | % | 33.6 | % | |||||||||||
Government | 16.4 | % | 16.4 | % | 16.6 | % | 16.5 | % | 17.9 | % | |||||||||||
Large enterprise | 10.2 | % | 10.2 | % | 10.1 | % | 10.3 | % | 13.8 | % | |||||||||||
Other | 30.8 | % | 29.9 | % | 29.2 | % | 28.3 | % | 22.7 | % | |||||||||||
Total direct | 86.4 | % | 87.0 | % | 87.4 | % | 87.6 | % | 88.0 | % | |||||||||||
Total indirect | 13.6 | % | 13.0 | % | 12.6 | % | 12.4 | % | 12.0 | % | |||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
SUPPLEMENTAL INFORMATION — DIRECT UNITS IN SERVICE AND CELLULAR ACTIVATIONS (a)
(unaudited)
SUPPLEMENTAL INFORMATION — DIRECT UNITS IN SERVICE AND CELLULAR ACTIVATIONS (a)
(unaudited)
For the three months ended | |||||||||||||||||||||
3/31/06 | 6/30/06 | 9/30/06 | 12/31/06 | 3/31/07 | |||||||||||||||||
Account size ending units in service (000’s) | |||||||||||||||||||||
1 to 3 units | 358 | 327 | 300 | 275 | 251 | ||||||||||||||||
4 to 10 units | 203 | 188 | 175 | 163 | 150 | ||||||||||||||||
11 to 50 units | 489 | 456 | 426 | 398 | 368 | ||||||||||||||||
51 to 100 units | 265 | 249 | 238 | 226 | 215 | ||||||||||||||||
101 to 1,000 units | 1,068 | 1,027 | 999 | 967 | 924 | ||||||||||||||||
>1,000 units | 1,619 | 1,607 | 1,583 | 1,569 | 1,534 | ||||||||||||||||
Total | 4,002 | 3,854 | 3,721 | 3,598 | 3,442 | ||||||||||||||||
End of period units in service % of total direct | |||||||||||||||||||||
1 to 3 units | 8.9 | % | 8.5 | % | 8.1 | % | 7.6 | % | 7.3 | % | |||||||||||
4 to 10 units | 5.1 | % | 4.9 | % | 4.7 | % | 4.5 | % | 4.4 | % | |||||||||||
11 to 50 units | 12.2 | % | 11.8 | % | 11.4 | % | 11.1 | % | 10.7 | % | |||||||||||
51 to 100 units | 6.6 | % | 6.5 | % | 6.4 | % | 6.3 | % | 6.2 | % | |||||||||||
101 to 1,000 units | 26.7 | % | 26.6 | % | 26.9 | % | 26.9 | % | 26.8 | % | |||||||||||
>1,000 units | 40.5 | % | 41.7 | % | 42.5 | % | 43.6 | % | 44.6 | % | |||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Account size net loss rate | |||||||||||||||||||||
1 to 3 units | -8.7 | % | -8.0 | % | -8.3 | % | -9.0 | % | |||||||||||||
4 to 10 units | -7.5 | % | -6.9 | % | -6.6 | % | -7.9 | % | |||||||||||||
11 to 50 units | -6.8 | % | -6.5 | % | -6.6 | % | -7.6 | % | |||||||||||||
51 to 100 units | -6.2 | % | -4.2 | % | -5.2 | % | -4.9 | % | |||||||||||||
101 to 1,000 units | -3.8 | % | -2.7 | % | -3.2 | % | -4.4 | % | |||||||||||||
>1,000 units | -0.7 | % | -1.6 | % | -0.9 | % | -2.2 | % | |||||||||||||
Total | -3.7 | % | -3.5 | % | -3.3 | % | -4.3 | % | |||||||||||||
Account size ARPU | |||||||||||||||||||||
1 to 3 units | $ | 14.02 | $ | 14.14 | $ | 14.07 | $ | 14.16 | $ 14.71 | ||||||||||||
4 to 10 units | 13.02 | 13.08 | 12.99 | 13.03 | 13.42 | ||||||||||||||||
11 to 50 units | 10.88 | 10.81 | 10.72 | 10.73 | 10.95 | ||||||||||||||||
51 to 100 units | 9.59 | 9.53 | 9.39 | 9.27 | 9.44 | ||||||||||||||||
101 to 1,000 units | 8.34 | 8.29 | 8.21 | 8.15 | 8.24 | ||||||||||||||||
>1,000 units | 8.18 | 8.05 | 7.89 | 7.88 | 7.92 | ||||||||||||||||
Total | $ | 9.44 | $ | 9.32 | $ | 9.16 | $ | 9.09 | $ 9.18 | ||||||||||||
Cellular revenue | |||||||||||||||||||||
Number of activations | 6,829 | 6,969 | 6,374 | 5,818 | 5,450 | ||||||||||||||||
Revenue from cellular services (000’s) | $ | 2,026 | $ | 2,096 | $ | 1,728 | $ | 1,877 | $ 1,877 | ||||||||||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
(unaudited and in thousands)
CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
(unaudited and in thousands)
For the three months ended | |||||||||||||||||||||
3/31/06 | 6/30/06 | 9/30/06 | 12/31/06 | 3/31/07 | |||||||||||||||||
Cost of products sold | $ | 786 | $ | 1,169 | $ | 1,184 | $ | 698 | $ 687 | ||||||||||||
Service, rental and maintenance | |||||||||||||||||||||
Site rent | 26,099 | 25,021 | 24,314 | 24,204 | 22,284 | ||||||||||||||||
Telecommunications and related | 9,099 | 8,480 | 7,343 | 7,185 | 7,058 | ||||||||||||||||
Payroll and related | 7,046 | 6,578 | 6,517 | 6,136 | 6,488 | ||||||||||||||||
Stock based compensation | 81 | 83 | 78 | 78 | 31 | ||||||||||||||||
Other | 5,767 | 4,607 | 4,237 | 4,167 | 3,172 | ||||||||||||||||
Total service, rental and maintenance | 48,092 | 44,769 | 42,489 | 41,770 | 39,033 | ||||||||||||||||
Selling and marketing | |||||||||||||||||||||
Payroll and related | 7,709 | 7,317 | 6,996 | 6,902 | 6,740 | ||||||||||||||||
Commissions | 2,226 | 2,373 | 2,407 | 2,577 | 2,170 | ||||||||||||||||
Stock based compensation | 171 | 166 | 178 | 55 | 93 | ||||||||||||||||
Other | 953 | 1,262 | 1,348 | 1,262 | 1,239 | ||||||||||||||||
Total selling and marketing | 11,059 | 11,118 | 10,929 | 10,796 | 10,242 | ||||||||||||||||
General and administrative | |||||||||||||||||||||
Payroll and related | 12,330 | 11,412 | 9,517 | 9,287 | 9,560 | ||||||||||||||||
Stock based compensation | 431 | 461 | 484 | 462 | 304 | ||||||||||||||||
Bad debt | 1,790 | 1,705 | 2,035 | 1,975 | 1,402 | ||||||||||||||||
Facility | 4,104 | 3,973 | 3,468 | 3,408 | 2,947 | ||||||||||||||||
Telecommunications | 2,248 | 1,982 | 1,858 | 1,714 | 1,764 | ||||||||||||||||
Outside services | 6,419 | 5,631 | 6,162 | 7,122 | 5,504 | ||||||||||||||||
Taxes, licenses and permits | 4,149 | 2,708 | 3,036 | (501 | ) | 2,316 | |||||||||||||||
Other | 4,671 | 4,336 | 4,434 | 5,066 | 2,651 | ||||||||||||||||
Total general and administrative | 36,142 | 32,208 | 30,994 | 28,533 | 26,448 | ||||||||||||||||
Depreciation, amortization and accretion | 18,794 | 18,900 | 18,361 | 17,244 | 13,318 | ||||||||||||||||
Severance and restructuring | 170 | 321 | 682 | 3,413 | 17 | ||||||||||||||||
Operating expenses | $ | 115,043 | $ | 108,485 | $ | 104,639 | $ | 102,454 | $ 89,745 | ||||||||||||
Capital expenditures | 4,424 | 4,595 | 5,152 | 6,819 | 5,086 | ||||||||||||||||
(a) | Slight variations in totals are due to rounding. |