Exhibit 99.1
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News Release
For Immediate Release | Contact: Bob Lougee (703) 721-3080 | |
Wednesday, March 5, 2008 |
USA Mobility Reports Fourth Quarter and 2007 Operating Results
Subscriber and Revenue Trends Improve, Expenses Decline;
Core Market Segments Show Continued Progress;
$98.3 Million in Capital Returned to Stockholders
Core Market Segments Show Continued Progress;
$98.3 Million in Capital Returned to Stockholders
Alexandria, VA (March 5, 2008) —USA Mobility, Inc. (Nasdaq: USMO), a leading provider ofwireless messaging and communications services, today announced operating results for the fourth quarter and year ended December 31, 2007.
Total revenue for the fourth quarter was $100.2 million, compared to $105.4 million in the third quarter of 2007 and $116.0 million in the fourth quarter of 2006. EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) for the fourth quarter of 2007 was $24.5 million, or 24.5 percent of revenue, and operating income was $13.6 million. Total revenue for 2007 was $424.6 million, compared to $497.7 million in 2006. EBITDA for 2007 was $124.5 million, or 29.3 percent of revenue, while operating income was $75.8 million.
The Company reported a net loss of $46.7 million, or $1.70 per fully diluted share, for the fourth quarter, compared to net income of $8.3 million, or $0.30 per fully diluted share, in the fourth quarter of 2006. The loss primarily resulted from a $54.3 million income tax expense in the fourth quarter due to a reduction in the carrying value of deferred income tax assets. Absent the incremental income tax expense, net income for the fourth quarter would have been $7.6 million, or $0.28 per fully diluted share. The higher income tax expense resulted in a net loss for the year of $5.2 million, or $0.19 per fully diluted share, from $40.2 million, or $1.46 per fully diluted share, in 2006. Third quarter net income has been adjusted to reflect a change in income tax expense due to the lapse of the statute of limitations on the 2003 income tax liabilities.
Key results for the fourth quarter and 2007 included:
• | Quarterly net unit losses slowed to 135,000 in the fourth quarter from 193,000 in the first quarter, while the quarterly rate of unit erosion improved to 3.7 percent in the fourth quarter from 4.7 percent in the first quarter. The annual rate of unit erosion declined to 15.1 percent in 2007 from 16.0 percent in 2006. Net unit losses were 620,000 in 2007 versus 781,000 in 2006. Total units in service at year-end 2007 were 3,485,000, compared to 4,105,000 a year earlier. | ||
• | The quarterly rate of revenue erosion increased to 5.0 percent in the fourth quarter from 3.9 percent in the first quarter. However, the year-over-year rate of revenue decline improved from 19.5 percent in 2006 to 14.7 percent in 2007, the Company’s slowest rate of revenue decline in years. | ||
• | Operating expenses, excluding depreciation, amortization and accretion, were $75.7 million for the fourth quarter, a reduction of $9.5 million, or 11.2 percent, from $85.2 million in the year-earlier quarter. For the full year, operating expenses declined by $57.2 million, or 16.0 percent, to $300.1 million from $357.3 million in 2006. Expense reduction during the year was largely due to network rationalization, staff reductions and company-wide cost efficiencies. | ||
• | Average revenue per unit (ARPU) was $8.62 for the fourth quarter, an increase from $8.57 in the fourth quarter of 2006. For the year, ARPU totaled $8.55, compared to $8.60 in 2006. ARPU levels remained stable during 2007 due principally to structural pricing changes and a reduction in the rate of billing and service credits. | ||
• | EBITDA as a percentage of revenue, or EBITDA margin, was 24.5 percent in the fourth quarter, compared to 26.6 percent the year-earlier quarter. | ||
• | Capital expenses totaled $18.3 million in 2007, compared to $21.0 million in 2006. | ||
• | The Company generated $96.3 million in cash during the year from operating and investing activities and had a cash balance of $64.5 million at December 31, 2007. | ||
• | During the year the Company distributed to stockholders quarterly cash distributions of $0.65 per share of common stock plus a special distribution of $1.00 per share in the second quarter. Combined, the cash distributions represented a return of capital to stockholders of $98.3 million. | ||
• | The number of full-time equivalent employees declined from 1,235 at the beginning of the year to 1,003 at year end as a result of ongoing consolidation and expense control initiatives. |
“We made excellent progress in the fourth quarter and during 2007,” said Vincent D. Kelly, president and chief executive officer. “We continued to operate the Company profitably while meeting our primary operating goals, reducing costs, increasing organizational efficiencies and expanding product offerings to our core market subscribers throughout the country. Despite ongoing competitive challenges, subscriber and revenue trends continued to improve, prices remained stable and we generated a sufficient level of cash flow to return capital to stockholders in the form of cash distributions.”
Kelly said the Company continued to concentrate its sales and marketing efforts during the year around its core market segments of Healthcare, Government and Large Enterprise. “At year end, our core market segments represented 77.6 percent of our direct subscriber base, compared with 67.7 percent at December 31, 2006, with Healthcare alone representing 42.1 percent. In addition, these core market segments made up approximately 68.1 percent of our direct paging revenue in 2007, compared to 57.2 percent in 2006. During the year,” he added, “we announced several new products and services designed to support our core customers. They included the nation’s first wide area coaster pager, called ReadyCall, to help hospital administrators ease congestion in patient waiting areas, an alliance with WeatherBug Professional to provide severe weather alerts to first responder organizations, and a customized paging solution, called PageSync, which gives customers using BlackBerry® smartphones paging reliability and multiple features in a single device. Going forward,” Kelly said, “we look to broaden our presence and create new sales and service opportunities in these core market segments.”
Consistent with its stated strategy, Kelly said USA Mobility generated sufficient cash flow in 2007 to again return capital to stockholders. The Company paid quarterly cash distributions of $0.65 per share and a special distribution of $1.00 per share in the second quarter, returning a total of $98.3 million in capital to stockholders during the year. “In addition,” Kelly noted, “our Board of Directors on February 13, 2008, declared a $0.65 per share quarterly cash distribution for stockholders of record as of February 25th, payable on March 13th. Similar to previous distributions, we expect the entire amount of the March 13th cash distribution to be paid as a return of capital.”
Kelly cautioned investors, however, that the rate at which the Company will continue to return capital to stockholders would depend largely on future operating results as well as various other business factors. “Additionally, in light of the deterioration in our stock price over the last nine months, as well as increased flexibility we have under Section 382, the Board of Directors is evaluating our strategy for returning capital to stockholders which may include periodic recurring cash distributions, special cash distributions, a stock repurchase program, or a combination of these alternatives.”
He also pointed out that a regulatory decision made during 2007 eventually could have a significant impact on the Company’s network cost structure and capital allocation strategy. “Last October the Federal Communications Commission (FCC) issued an Order on Reconsideration (Back-Up Power Order) requiring large commercial mobile radio service (CMRS) providers, including USA Mobility, to have at least eight hours of back-up power at each transmission site to minimize communications outages during emergencies. We do not believe the Back-Up Power Order should apply to paging carriers for a variety of reasons, including the unique simulcast and high-power network architecture of paging. Accordingly, along with numerous other wireless providers and trade associations, we appealed the Back-Up Power Order in January to the DC Circuit Court of Appeals. We expect the appeal to be heard around mid-year.”
Thomas L. Schilling, chief operating officer and chief financial officer, said: “We continued to strengthen our financial position in 2007, principally through ongoing cost reduction initiatives including our network rationalization program and efforts to ‘right size’ our organization as demand for paging products remained slow. While subscriber disconnect rates were higher than forecast, however, we continued to generate strong cash flow during the year and are pleased with our overall financial results.”
Schilling said the improvement in the rate of annual revenue erosion to 14.7 percent from 19.5 percent resulted in part from structural price increases in 2007 in selected distribution channels and improvements in the rate of service credits. “Total paging ARPU increased to $8.62 in the fourth quarter from $8.57 in the fourth quarter of 2006,” he noted, “while indirect ARPU increased to $5.06 from $4.92 in the year-earlier quarter and was our highest level of indirect ARPU in several years.” Schilling cautioned, however, that ARPU would likely trend downward going forward since further price increases were unlikely in the near term.
Commenting on the reduction of deferred income tax assets (DTAs) in the fourth quarter, Schilling explained: “Accounting rules require us to evaluate whether or not the Company will use all of its DTAs to offset future taxable income. As a result, based on current trends for subscribers, revenue, operating expenses and capital expenses — which, of course, are subject to change — we projected future levels of taxable income that mandated a reduction in the carrying value of our DTAs based on our effective tax rate of approximately 38 percent. Going forward, we will continue to evaluate our operating trends and will adjust the carrying value of our DTAs, either up or down, as circumstances warrant.”
Schilling also commented on the Company’s financial guidance. “We are pleased the financial guidance we provided for 2007 was largely on target,” he noted. “Total revenue of $424.6 million was within our guidance range of $420 million to $425 million; operating expenses (excluding depreciation, amortization
and accretion) of $300.1 million were slightly above the revised guidance range of $293 million to $298 million; and capital expenses of $18.3 million were within the guidance range of $18 million to $20 million. With respect to guidance for 2008, the Company expects revenue to be in a range from $345 million to $355 million, operating expenses (excluding depreciation, amortization and accretion) to be in a range from $250 million to $255 million, and capital expenses in a range from $18 million to $20 million.”
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its fourth quarter and 2007 results at 11:00 a.m. Eastern Time on Thursday, March 6, 2008. The dial-in number for the call is 888-708-5691 (toll-free) or 913-981-5560 (toll). The pass code for the call is 9699744. A replay of the call will be available from 4:00 p.m. ET on March 6 until 11:59 p.m. on Thursday, March 20. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 9699744.
* * * * * * * * *
About USA Mobility
USA Mobility, Inc., headquartered in Alexandria, Virginia, is a comprehensive provider of reliable and affordable wireless communications solutions to thehealthcare,government,large enterprise and emergency response sectors. As a single-source provider, USA Mobility‘s focus is on the business-to-business marketplace and supplying wireless connectivity solutions to over 70 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 throughSprint Nextel, including BlackBerry® smartphones and GPS location applications. The Company’s product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. USA Mobility also 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.
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.
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)
(unaudited and in thousands, except share and per share amounts)
CONDENSED CONSOLIDATED STATEMENTS 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 | 6/30/07 | 9/30/07 (b) | 12/31/07 | ||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||
Paging service | $ | 125,673 | $ | 118,872 | $ | 112,129 | $ | 107,520 | $ | 104,003 | $ | 98,248 | $ | 95,393 | $ | 91,825 | |||||||||||||||||
Cellular | 2,026 | 2,096 | 1,728 | 1,877 | 2,087 | 2,497 | 2,035 | 1,705 | |||||||||||||||||||||||||
Product sales | 6,131 | 5,180 | 4,851 | 5,394 | 4,400 | 5,335 | 6,851 | 5,618 | |||||||||||||||||||||||||
Other | 1,062 | 1,057 | 845 | 1,253 | 1,052 | 1,390 | 1,145 | 1,040 | |||||||||||||||||||||||||
Total revenues | 134,892 | 127,205 | 119,553 | 116,044 | 111,542 | 107,470 | 105,424 | 100,188 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Cost of products sold | 786 | 1,169 | 1,184 | 698 | 687 | 1,508 | 2,435 | 1,603 | |||||||||||||||||||||||||
Service, rental and maintenance | 48,092 | 44,769 | 42,489 | 41,770 | 39,033 | 39,356 | 36,746 | 36,795 | |||||||||||||||||||||||||
Selling and marketing | 11,059 | 11,118 | 10,929 | 10,796 | 10,242 | 9,975 | 9,891 | 8,720 | |||||||||||||||||||||||||
General and administrative | 36,142 | 32,208 | 30,994 | 28,533 | 26,448 | 23,297 | 23,606 | 23,316 | |||||||||||||||||||||||||
Severance and restructuring | 170 | 321 | 682 | 3,413 | 17 | — | 1,177 | 5,235 | |||||||||||||||||||||||||
Depreciation, amortization and accretion | 18,794 | 18,900 | 18,361 | 17,244 | 13,318 | 12,450 | 12,048 | 10,872 | |||||||||||||||||||||||||
Total operating expenses | 115,043 | 108,485 | 104,639 | 102,454 | 89,745 | 86,586 | 85,903 | 86,541 | |||||||||||||||||||||||||
% of total revenues | 85.3 | % | 85.3 | % | 87.5 | % | 88.3 | % | 80.5 | % | 80.6 | % | 81.5 | % | 86.4 | % | |||||||||||||||||
Operating income | 19,849 | 18,720 | 14,914 | 13,590 | 21,797 | 20,884 | 19,521 | 13,647 | |||||||||||||||||||||||||
% of total revenues | 14.7 | % | 14.7 | % | 12.5 | % | 11.7 | % | 19.5 | % | 19.4 | % | 18.5 | % | 13.6 | % | |||||||||||||||||
Interest income, net | 549 | 1,023 | 717 | 1,579 | 951 | 932 | 856 | 709 | |||||||||||||||||||||||||
Other income (expense), net | 62 | 988 | 103 | (353 | ) | (516 | ) | 826 | 1,038 | 802 | |||||||||||||||||||||||
Income before income tax expense | 20,460 | 20,731 | 15,734 | 14,816 | 22,232 | 22,642 | 21,415 | 15,158 | |||||||||||||||||||||||||
Income tax expense | 8,195 | 9,779 | 7,075 | 6,511 | 9,206 | 9,676 | 5,947 | 61,816 | |||||||||||||||||||||||||
Net income (loss) | $ | 12,265 | $ | 10,952 | $ | 8,659 | $ | 8,305 | $ | 13,026 | $ | 12,966 | $ | 15,468 | $ | (46,658 | ) | ||||||||||||||||
Basic net income (loss) per common share | $ | 0.45 | $ | 0.40 | $ | 0.32 | $ | 0.30 | $ | 0.47 | $ | 0.47 | $ | 0.56 | $ | (1.70 | ) | ||||||||||||||||
Diluted net income (loss) per common share | $ | 0.45 | $ | 0.40 | $ | 0.31 | $ | 0.30 | $ | 0.47 | $ | 0.47 | $ | 0.56 | $ | (1.70 | ) | ||||||||||||||||
Basic weighted average common shares outstanding | 27,397,307 | 27,399,533 | 27,400,853 | 27,401,492 | 27,434,418 | 27,440,094 | 27,445,028 | 27,450,035 | |||||||||||||||||||||||||
Diluted weighted average common shares | 27,503,230 | 27,587,958 | 27,575,039 | 27,596,451 | 27,578,066 | 27,570,346 | 27,594,513 | 27,450,035 | |||||||||||||||||||||||||
outstanding | |||||||||||||||||||||||||||||||||
Reconciliation of operating income to EBITDA (c): | |||||||||||||||||||||||||||||||||
Operating income | $ | 19,849 | $ | 18,720 | $ | 14,914 | $ | 13,590 | $ | 21,797 | $ | 20,884 | $ | 19,521 | $ | 13,647 | |||||||||||||||||
Add back: depreciation, amortization and accretion | 18,794 | 18,900 | 18,361 | 17,244 | 13,318 | 12,450 | 12,048 | 10,872 | |||||||||||||||||||||||||
EBITDA | $ | 38,643 | $ | 37,620 | $ | 33,275 | $ | 30,834 | $ | 35,115 | $ | 33,334 | $ | 31,569 | $ | 24,519 | |||||||||||||||||
% of total revenues | 28.6 | % | 29.6 | % | 27.8 | % | 26.6 | % | 31.5 | % | 31.0 | % | 29.9 | % | 24.5 | % |
(a) | Slight variations in totals are due to rounding. | |
(b) | Income tax expense increased by $4,838,000. This increase reflects a change in recognizing the lapse of the statute of limitations on the 2003 income tax liabilities. | |
(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.
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 | 6/30/07 | 9/30/07 | 12/31/07 | ||||||||||||||||||||||||||
Units in service | |||||||||||||||||||||||||||||||||
Beginning units in service | |||||||||||||||||||||||||||||||||
Direct one-way | 3,835 | 3,678 | 3,547 | 3,429 | 3,318 | 3,179 | 3,071 | 2,961 | |||||||||||||||||||||||||
Direct two-way | 348 | 324 | 307 | 292 | 280 | 263 | 245 | 232 | |||||||||||||||||||||||||
Total direct | 4,183 | 4,002 | 3,854 | 3,721 | 3,598 | 3,442 | 3,316 | 3,193 | |||||||||||||||||||||||||
Indirect one-way | 603 | 535 | 483 | 449 | 417 | 378 | 346 | 330 | |||||||||||||||||||||||||
Indirect two-way | 100 | 97 | 94 | 89 | 90 | 92 | 95 | 97 | |||||||||||||||||||||||||
Total indirect | 703 | 632 | 577 | 538 | 507 | 470 | 441 | 427 | |||||||||||||||||||||||||
Total beginning units in service | 4,886 | 4,634 | 4,431 | 4,259 | 4,105 | 3,912 | 3,757 | 3,620 | |||||||||||||||||||||||||
Gross placements | |||||||||||||||||||||||||||||||||
Direct one-way | 108 | 119 | 120 | 112 | 91 | 112 | 107 | 81 | |||||||||||||||||||||||||
Direct two-way | 15 | 15 | 15 | 15 | 12 | 14 | 13 | 10 | |||||||||||||||||||||||||
Total direct | 123 | 134 | 135 | 127 | 103 | 126 | 120 | 91 | |||||||||||||||||||||||||
Indirect one-way | 24 | 18 | 24 | 36 | 19 | 25 | 35 | 29 | |||||||||||||||||||||||||
Indirect two-way | 4 | 5 | 5 | 7 | 8 | 8 | 7 | 7 | |||||||||||||||||||||||||
Total indirect | 28 | 23 | 29 | 43 | 27 | 33 | 42 | 36 | |||||||||||||||||||||||||
Total gross placements | 151 | 157 | 164 | 170 | 130 | 159 | 162 | 127 | |||||||||||||||||||||||||
Gross disconnects | |||||||||||||||||||||||||||||||||
Direct one-way | (265 | ) | (250 | ) | (238 | ) | (222 | ) | (230 | ) | (220 | ) | (217 | ) | (188 | ) | |||||||||||||||||
Direct two-way | (39 | ) | (32 | ) | (30 | ) | (29 | ) | (29 | ) | (32 | ) | (26 | ) | (21 | ) | |||||||||||||||||
Total direct | (304 | ) | (282 | ) | (268 | ) | (251 | ) | (259 | ) | (252 | ) | (243 | ) | (209 | ) | |||||||||||||||||
Indirect one-way | (92 | ) | (70 | ) | (58 | ) | (68 | ) | (58 | ) | (57 | ) | (51 | ) | (47 | ) | |||||||||||||||||
Indirect two-way | (8 | ) | (8 | ) | (10 | ) | (4 | ) | (6 | ) | (5 | ) | (5 | ) | (6 | ) | |||||||||||||||||
Total indirect | (100 | ) | (78 | ) | (68 | ) | (72 | ) | (64 | ) | (62 | ) | (56 | ) | (53 | ) | |||||||||||||||||
Total gross disconnects | (404 | ) | (360 | ) | (336 | ) | (323 | ) | (323 | ) | (314 | ) | (299 | ) | (262 | ) | |||||||||||||||||
Net gain (loss) | |||||||||||||||||||||||||||||||||
Direct one-way | (157 | ) | (131 | ) | (118 | ) | (111 | ) | (139 | ) | (108 | ) | (110 | ) | (107 | ) | |||||||||||||||||
Direct two-way | (24 | ) | (17 | ) | (15 | ) | (12 | ) | (17 | ) | (18 | ) | (13 | ) | (11 | ) | |||||||||||||||||
Total direct | (181 | ) | (148 | ) | (133 | ) | (123 | ) | (156 | ) | (126 | ) | (123 | ) | (118 | ) | |||||||||||||||||
Indirect one-way | (68 | ) | (52 | ) | (34 | ) | (32 | ) | (39 | ) | (32 | ) | (16 | ) | (18 | ) | |||||||||||||||||
Indirect two-way | (4 | ) | (3 | ) | (5 | ) | 1 | 2 | 3 | 2 | 1 | ||||||||||||||||||||||
Total indirect | (72 | ) | (55 | ) | (39 | ) | (31 | ) | (37 | ) | (29 | ) | (14 | ) | (17 | ) | |||||||||||||||||
Total net change | (253 | ) | (203 | ) | (172 | ) | (154 | ) | (193 | ) | (155 | ) | (137 | ) | (135 | ) | |||||||||||||||||
Ending units in service | |||||||||||||||||||||||||||||||||
Direct one-way | 3,678 | 3,547 | 3,429 | 3,318 | 3,179 | 3,071 | 2,961 | 2,854 | |||||||||||||||||||||||||
Direct two-way | 324 | 307 | 292 | 280 | 263 | 245 | 232 | 221 | |||||||||||||||||||||||||
Total direct | 4,002 | 3,854 | 3,721 | 3,598 | 3,442 | 3,316 | 3,193 | 3,075 | |||||||||||||||||||||||||
Indirect one-way | 535 | 483 | 449 | 417 | 378 | 346 | 330 | 312 | |||||||||||||||||||||||||
Indirect two-way | 97 | 94 | 89 | 90 | 92 | 95 | 97 | 98 | |||||||||||||||||||||||||
Total indirect | 632 | 577 | 538 | 507 | 470 | 441 | 427 | 410 | |||||||||||||||||||||||||
Total ending units in service | 4,634 | 4,431 | 4,259 | 4,105 | 3,912 | 3,757 | 3,620 | 3,485 | |||||||||||||||||||||||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(unaudited)
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(unaudited)
For the three months ended | |||||||||||||||||||||||||||||||||
3/31/06 | 6/30/06 | 9/30/06 | 12/31/06 | 3/31/07 | 6/30/07 | 9/30/07 | 12/31/07 | ||||||||||||||||||||||||||
ARPU | |||||||||||||||||||||||||||||||||
Direct one-way | $ | 8.17 | $ | 8.06 | $ | 7.95 | $ | 7.86 | $ | 7.96 | $ | 7.87 | $ | 7.98 | $ | 7.93 | |||||||||||||||||
Direct two-way | 23.61 | 23.75 | 23.27 | 23.61 | 23.91 | 24.02 | 24.17 | 24.06 | |||||||||||||||||||||||||
Total direct | 9.44 | 9.32 | 9.16 | 9.09 | 9.18 | 9.08 | 9.16 | 9.09 | |||||||||||||||||||||||||
Indirect one-way | 4.53 | 4.59 | 4.49 | 4.56 | 4.45 | 4.12 | 4.35 | 4.11 | |||||||||||||||||||||||||
Indirect two-way | 6.93 | 6.99 | 6.53 | 6.63 | 6.30 | 6.10 | 5.30 | 8.20 | |||||||||||||||||||||||||
Total indirect | 4.89 | 4.97 | 4.82 | 4.92 | 4.79 | 4.53 | 4.56 | 5.06 | |||||||||||||||||||||||||
Total one-way | 7.69 | 7.63 | 7.54 | 7.49 | 7.57 | 7.48 | 7.61 | 7.55 | |||||||||||||||||||||||||
Total two-way | 19.85 | 19.87 | 19.35 | 19.55 | 19.46 | 19.18 | 18.74 | 19.30 | |||||||||||||||||||||||||
Total paging ARPU | $ | 8.80 | $ | 8.74 | $ | 8.60 | $ | 8.57 | $ | 8.65 | $ | 8.54 | $ | 8.62 | $ | 8.62 | |||||||||||||||||
Gross disconnect rate (b) | |||||||||||||||||||||||||||||||||
Direct one-way | -6.9 | % | -6.8 | % | -6.7 | % | -6.5 | % | -6.9 | % | -6.9 | % | -7.1 | % | -6.4 | % | |||||||||||||||||
Direct two-way | -11.1 | % | -9.8 | % | -9.8 | % | -9.8 | % | -10.4 | % | -12.2 | % | -10.5 | % | -9.1 | % | |||||||||||||||||
Total direct | -7.3 | % | -7.0 | % | -7.0 | % | -6.7 | % | -7.2 | % | -7.3 | % | -7.3 | % | -6.6 | % | |||||||||||||||||
Indirect one-way | -15.3 | % | -13.1 | % | -12.0 | % | -15.1 | % | -14.0 | % | -15.0 | % | -14.7 | % | -14.1 | % | |||||||||||||||||
Indirect two-way | -7.6 | % | -8.2 | % | -10.6 | % | -4.7 | % | -6.2 | % | -5.9 | % | -5.7 | % | -6.7 | % | |||||||||||||||||
Total indirect | -14.2 | % | -12.4 | % | -11.8 | % | -13.3 | % | -12.6 | % | -13.2 | % | -12.8 | % | -12.5 | % | |||||||||||||||||
Total one-way | -8.1 | % | -7.6 | % | -7.3 | % | -7.5 | % | -7.7 | % | -7.8 | % | -7.8 | % | -7.1 | % | |||||||||||||||||
Total two-way | -10.2 | % | -9.5 | % | -10.0 | % | -8.6 | % | -9.4 | % | -10.4 | % | -9.2 | % | -8.4 | % | |||||||||||||||||
Total paging gross disconnect rate | -8.3 | % | -7.8 | % | -7.6 | % | -7.6 | % | -7.9 | % | -8.0 | % | -8.0 | % | -7.2 | % | |||||||||||||||||
Net gain / loss rate (c) | |||||||||||||||||||||||||||||||||
Direct one-way | -4.1 | % | -3.6 | % | -3.3 | % | -3.2 | % | -4.2 | % | -3.4 | % | -3.6 | % | -3.6 | % | |||||||||||||||||
Direct two-way | -6.8 | % | -5.2 | % | -4.9 | % | -4.1 | % | -5.9 | % | -6.9 | % | -5.3 | % | -4.6 | % | |||||||||||||||||
Total direct | -4.3 | % | -3.7 | % | -3.5 | % | -3.3 | % | -4.3 | % | -3.6 | % | -3.7 | % | -3.7 | % | |||||||||||||||||
Indirect one-way | -11.3 | % | -9.8 | % | -7.1 | % | -7.1 | % | -9.5 | % | -8.5 | % | -4.6 | % | -5.4 | % | |||||||||||||||||
Indirect two-way | -3.6 | % | -2.9 | % | -4.9 | % | 1.0 | % | 2.5 | % | 3.2 | % | 2.1 | % | 0.8 | % | |||||||||||||||||
Total indirect | -10.2 | % | -8.7 | % | -6.8 | % | -5.7 | % | -7.3 | % | -6.2 | % | -3.2 | % | -4.0 | % | |||||||||||||||||
Total one-way | -5.1 | % | -4.3 | % | -3.8 | % | -3.7 | % | -4.8 | % | -3.9 | % | -3.7 | % | -3.8 | % | |||||||||||||||||
Total two-way | -6.1 | % | -4.7 | % | -4.9 | % | -2.9 | % | -3.9 | % | -4.2 | % | -3.3 | % | -3.0 | % | |||||||||||||||||
Total paging net gain / loss rate | -5.2 | % | -4.4 | % | -3.9 | % | -3.6 | % | -4.7 | % | -4.0 | % | -3.7 | % | -3.7 | % | |||||||||||||||||
(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.
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 | 6/30/07 | 9/30/07 | 12/31/07 | ||||||||||||||||||||||||||
Gross placement rate (b) | |||||||||||||||||||||||||||||||||
Healthcare | 3.8 | % | 4.5 | % | 4.1 | % | 4.2 | % | 3.6 | % | 4.8 | % | 4.5 | % | 3.6 | % | |||||||||||||||||
Government | 2.2 | % | 2.3 | % | 2.6 | % | 2.1 | % | 2.2 | % | 2.5 | % | 2.5 | % | 2.0 | % | |||||||||||||||||
Large enterprise | 2.6 | % | 3.0 | % | 3.8 | % | 3.9 | % | 2.7 | % | 3.0 | % | 2.9 | % | 2.7 | % | |||||||||||||||||
Other | 2.7 | % | 3.0 | % | 3.3 | % | 3.1 | % | 2.6 | % | 3.2 | % | 3.4 | % | 2.4 | % | |||||||||||||||||
Total direct | 2.9 | % | 3.3 | % | 3.5 | % | 3.4 | % | 2.9 | % | 3.7 | % | 3.6 | % | 2.8 | % | |||||||||||||||||
Total indirect | 4.0 | % | 3.7 | % | 5.1 | % | 7.8 | % | 5.3 | % | 6.9 | % | 9.6 | % | 8.5 | % | |||||||||||||||||
Total | 3.1 | % | 3.4 | % | 3.7 | % | 4.0 | % | 3.2 | % | 4.1 | % | 4.3 | % | 3.5 | % | |||||||||||||||||
Gross disconnect rate (b) | |||||||||||||||||||||||||||||||||
Healthcare | -4.6 | % | -4.7 | % | -5.3 | % | -4.6 | % | -4.6 | % | -5.0 | % | -5.6 | % | -5.0 | % | |||||||||||||||||
Government | -5.7 | % | -6.3 | % | -5.9 | % | -5.8 | % | -5.8 | % | -6.4 | % | -6.8 | % | -6.0 | % | |||||||||||||||||
Large enterprise | -7.7 | % | -7.4 | % | -6.9 | % | -6.8 | % | -8.4 | % | -9.3 | % | -7.6 | % | -6.9 | % | |||||||||||||||||
Other | -10.3 | % | -9.5 | % | -9.3 | % | -9.5 | % | -10.9 | % | -10.5 | % | -10.5 | % | -9.5 | % | |||||||||||||||||
Total direct | -7.3 | % | -7.0 | % | -7.0 | % | -6.7 | % | -7.2 | % | -7.3 | % | -7.3 | % | -6.6 | % | |||||||||||||||||
Total indirect | -14.2 | % | -12.4 | % | -11.8 | % | -13.3 | % | -12.6 | % | -13.2 | % | -12.8 | % | -12.5 | % | |||||||||||||||||
Total | -8.3 | % | -7.8 | % | -7.6 | % | -7.6 | % | -7.9 | % | -8.0 | % | -8.0 | % | -7.2 | % | |||||||||||||||||
Net loss rate (b) | |||||||||||||||||||||||||||||||||
Healthcare | -0.7 | % | -0.2 | % | -1.1 | % | -0.4 | % | -1.1 | % | -0.2 | % | -1.0 | % | -1.3 | % | |||||||||||||||||
Government | -3.5 | % | -4.1 | % | -3.3 | % | -3.6 | % | -3.6 | % | -3.8 | % | -4.3 | % | -4.0 | % | |||||||||||||||||
Large enterprise | -5.1 | % | -4.3 | % | -3.0 | % | -2.9 | % | -5.7 | % | -6.2 | % | -4.6 | % | -4.3 | % | |||||||||||||||||
Other | -7.5 | % | -6.6 | % | -6.1 | % | -6.4 | % | -8.3 | % | -7.2 | % | -7.2 | % | -7.1 | % | |||||||||||||||||
Total direct | -4.3 | % | -3.7 | % | -3.5 | % | -3.3 | % | -4.3 | % | -3.6 | % | -3.7 | % | -3.7 | % | |||||||||||||||||
Total indirect | -10.2 | % | -8.7 | % | -6.8 | % | -5.7 | % | -7.3 | % | -6.2 | % | -3.2 | % | -4.0 | % | |||||||||||||||||
Total | -5.2 | % | -4.4 | % | -3.9 | % | -3.6 | % | -4.7 | % | -4.0 | % | -3.7 | % | -3.7 | % | |||||||||||||||||
End of period units in service % of total (b) | |||||||||||||||||||||||||||||||||
Healthcare | 29.0 | % | 30.5 | % | 31.5 | % | 32.5 | % | 33.6 | % | 35.0 | % | 36.2 | % | 37.1 | % | |||||||||||||||||
Government | 16.4 | % | 16.4 | % | 16.6 | % | 16.5 | % | 17.9 | % | 18.0 | % | 17.8 | % | 17.8 | % | |||||||||||||||||
Large enterprise | 10.2 | % | 10.2 | % | 10.1 | % | 10.3 | % | 13.8 | % | 13.6 | % | 13.5 | % | 13.5 | % | |||||||||||||||||
Other | 30.8 | % | 29.9 | % | 29.2 | % | 28.3 | % | 22.6 | % | 21.7 | % | 20.7 | % | 19.8 | % | |||||||||||||||||
Total direct | 86.4 | % | 87.0 | % | 87.4 | % | 87.6 | % | 88.0 | % | 88.3 | % | 88.2 | % | 88.2 | % | |||||||||||||||||
Total indirect | 13.6 | % | 13.0 | % | 12.6 | % | 12.4 | % | 12.0 | % | 11.7 | % | 11.8 | % | 11.8 | % | |||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||
(a) | Slight variations in totals are due to rounding. | |
(b) | Changes in the classification of units in service are reflected in the quarter when such changes are identified. Such changes are then appropriately reflected in calculating the gross placement, gross disconnet and net loss rates. |
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 | 6/30/07 | 9/30/07 | 12/31/07 | ||||||||||||||||||||||||||
Account size ending units in service (000’s) | |||||||||||||||||||||||||||||||||
1 to 3 units | 358 | 327 | 300 | 275 | 251 | 232 | 216 | 200 | |||||||||||||||||||||||||
4 to 10 units | 203 | 188 | 175 | 163 | 150 | 139 | 129 | 120 | |||||||||||||||||||||||||
11 to 50 units | 489 | 456 | 426 | 398 | 368 | 344 | 319 | 298 | |||||||||||||||||||||||||
51 to 100 units | 265 | 249 | 238 | 226 | 215 | 200 | 189 | 176 | |||||||||||||||||||||||||
101 to 1,000 units | 1,068 | 1,027 | 999 | 967 | 924 | 898 | 856 | 827 | |||||||||||||||||||||||||
>1,000 units | 1,619 | 1,607 | 1,583 | 1,568 | 1,534 | 1,503 | 1,483 | 1,454 | |||||||||||||||||||||||||
Total | 4,002 | 3,854 | 3,721 | 3,598 | 3,442 | 3,316 | 3,193 | 3,075 | |||||||||||||||||||||||||
End of period units in service % of total direct | |||||||||||||||||||||||||||||||||
1 to 3 units | 8.9 | % | 8.5 | % | 8.1 | % | 7.7 | % | 7.3 | % | 7.0 | % | 6.8 | % | 6.5 | % | |||||||||||||||||
4 to 10 units | 5.1 | % | 4.9 | % | 4.7 | % | 4.5 | % | 4.4 | % | 4.2 | % | 4.1 | % | 3.9 | % | |||||||||||||||||
11 to 50 units | 12.2 | % | 11.8 | % | 11.4 | % | 11.1 | % | 10.7 | % | 10.4 | % | 10.0 | % | 9.7 | % | |||||||||||||||||
51 to 100 units | 6.6 | % | 6.5 | % | 6.4 | % | 6.3 | % | 6.2 | % | 6.0 | % | 5.9 | % | 5.7 | % | |||||||||||||||||
101 to 1,000 units | 26.7 | % | 26.6 | % | 26.9 | % | 26.9 | % | 26.9 | % | 27.1 | % | 26.8 | % | 26.9 | % | |||||||||||||||||
>1,000 units | 40.5 | % | 41.7 | % | 42.5 | % | 43.6 | % | 44.6 | % | 45.3 | % | 46.5 | % | 47.3 | % | |||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||
Account size net loss rate | |||||||||||||||||||||||||||||||||
1 to 3 units | -7.8 | % | -8.7 | % | -8.0 | % | -8.3 | % | -9.0 | % | -7.6 | % | -6.6 | % | -7.6 | % | |||||||||||||||||
4 to 10 units | -8.2 | % | -7.5 | % | -6.9 | % | -6.6 | % | -7.9 | % | -7.6 | % | -7.0 | % | -7.5 | % | |||||||||||||||||
11 to 50 units | -7.2 | % | -6.8 | % | -6.5 | % | -6.6 | % | -7.5 | % | -6.4 | % | -7.3 | % | -6.6 | % | |||||||||||||||||
51 to 100 units | -7.0 | % | -6.2 | % | -4.2 | % | -5.2 | % | -4.9 | % | -6.9 | % | -5.7 | % | -6.4 | % | |||||||||||||||||
101 to 1,000 units | -5.8 | % | -3.8 | % | -2.7 | % | -3.2 | % | -4.4 | % | -2.8 | % | -4.7 | % | -3.3 | % | |||||||||||||||||
>1,000 units | -5.0 | % | -0.7 | % | -1.6 | % | -0.9 | % | -2.2 | % | -2.0 | % | -1.3 | % | -2.0 | % | |||||||||||||||||
Total | -4.3 | % | -3.7 | % | -3.5 | % | -3.3 | % | -4.3 | % | -3.6 | % | -3.7 | % | -3.7 | % | |||||||||||||||||
Account size ARPU | |||||||||||||||||||||||||||||||||
1 to 3 units | $ | 14.02 | $ | 14.14 | $ | 14.07 | $ | 14.18 | $ | 14.68 | $ | 14.67 | $ | 14.90 | $ | 14.83 | |||||||||||||||||
4 to 10 units | 13.02 | 13.08 | 12.99 | 13.07 | 13.41 | 13.40 | 13.68 | 13.62 | |||||||||||||||||||||||||
11 to 50 units | 10.88 | 10.81 | 10.72 | 10.76 | 10.95 | 10.93 | 11.15 | 11.07 | |||||||||||||||||||||||||
51 to 100 units | 9.59 | 9.53 | 9.39 | 9.30 | 9.44 | 9.48 | 9.74 | 9.74 | |||||||||||||||||||||||||
101 to 1,000 units | 8.34 | 8.29 | 8.21 | 8.18 | 8.24 | 8.24 | 8.35 | 8.38 | |||||||||||||||||||||||||
>1,000 units | 8.18 | 8.05 | 7.89 | 7.91 | 7.93 | 7.80 | 7.86 | 7.81 | |||||||||||||||||||||||||
Total | $ | 9.44 | $ | 9.32 | $ | 9.16 | $ | 9.09 | $ | 9.18 | $ | 9.08 | $ | 9.16 | $ | 9.09 | |||||||||||||||||
Cellular revenue | |||||||||||||||||||||||||||||||||
Number of activations | 6,829 | 6,969 | 6,374 | 5,818 | 5,450 | 8,046 | 5,579 | 5,070 | |||||||||||||||||||||||||
Revenue from cellular services (000’s) | $ | 2,026 | $ | 2,096 | $ | 1,728 | $ | 1,877 | $ | 2,087 | $ | 2,497 | $ | 2,035 | $ | 1,705 | |||||||||||||||||
(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 | 6/30/07 | 9/30/07 | 12/31/07 | ||||||||||||||||||||||||||
Cost of products sold | $ | 786 | $ | 1,169 | $ | 1,184 | $ | 698 | $ | 687 | $ | 1,508 | $ | 2,435 | $ | 1,603 | |||||||||||||||||
Service, rental and maintenance | |||||||||||||||||||||||||||||||||
Site rent | 26,099 | 25,021 | 24,314 | 24,204 | 22,284 | 22,115 | 20,705 | 19,602 | |||||||||||||||||||||||||
Telecommunications | 9,099 | 8,480 | 7,343 | 7,185 | 7,058 | 6,622 | 5,289 | 6,356 | |||||||||||||||||||||||||
Payroll and related | 7,046 | 6,578 | 6,517 | 6,136 | 6,488 | 6,657 | 6,871 | 6,878 | |||||||||||||||||||||||||
Stock based compensation | 81 | 83 | 78 | 78 | 31 | 30 | 26 | 25 | |||||||||||||||||||||||||
Other | 5,767 | 4,607 | 4,237 | 4,167 | 3,172 | 3,932 | 3,855 | 3,934 | |||||||||||||||||||||||||
Total service, rental and maintenance | 48,092 | 44,769 | 42,489 | 41,770 | 39,033 | 39,356 | 36,746 | 36,795 | |||||||||||||||||||||||||
Selling and marketing | |||||||||||||||||||||||||||||||||
Payroll and related | 7,709 | 7,317 | 6,996 | 6,902 | 6,740 | 6,259 | 5,984 | 5,517 | |||||||||||||||||||||||||
Commissions | 2,226 | 2,373 | 2,407 | 2,577 | 2,170 | 2,386 | 2,140 | 2,056 | |||||||||||||||||||||||||
Stock based compensation | 171 | 166 | 178 | 55 | 93 | 91 | 67 | 52 | |||||||||||||||||||||||||
Other | 953 | 1,262 | 1,348 | 1,262 | 1,239 | 1,239 | 1,700 | 1,095 | |||||||||||||||||||||||||
Total selling and marketing | 11,059 | 11,118 | 10,929 | 10,796 | 10,242 | 9,975 | 9,891 | 8,720 | |||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||||||
Payroll and related | 12,330 | 11,412 | 9,517 | 9,287 | 9,560 | 9,343 | 9,487 | 8,744 | |||||||||||||||||||||||||
Stock based compensation | 431 | 461 | 484 | 462 | 304 | 299 | 214 | 180 | |||||||||||||||||||||||||
Bad debt | 1,790 | 1,705 | 2,035 | 1,975 | 1,402 | 1,075 | 854 | 1,015 | |||||||||||||||||||||||||
Facility rent | 4,104 | 3,973 | 3,468 | 3,408 | 2,947 | 3,066 | 2,614 | 2,177 | |||||||||||||||||||||||||
Telecommunications | 2,248 | 1,982 | 1,858 | 1,714 | 1,764 | 1,526 | 1,402 | 1,366 | |||||||||||||||||||||||||
Outside services | 6,419 | 5,631 | 6,162 | 7,122 | 5,504 | 5,222 | 5,136 | 4,854 | |||||||||||||||||||||||||
Taxes, licenses and permits | 4,149 | 2,708 | 3,036 | (501 | ) | 2,316 | (20 | ) | 1,815 | 2,218 | |||||||||||||||||||||||
Other | 4,671 | 4,336 | 4,434 | 5,066 | 2,651 | 2,786 | 2,084 | 2,762 | |||||||||||||||||||||||||
Total general and administrative | 36,142 | 32,208 | 30,994 | 28,533 | 26,448 | 23,297 | 23,606 | 23,316 | |||||||||||||||||||||||||
Severance and restructuring | 170 | 321 | 682 | 3,413 | 17 | — | 1,177 | 5,235 | |||||||||||||||||||||||||
Depreciation, amortization and accretion | 18,794 | 18,900 | 18,361 | 17,244 | 13,318 | 12,450 | 12,048 | 10,872 | |||||||||||||||||||||||||
Operating expenses | $ | 115,043 | $ | 108,485 | $ | 104,639 | $ | 102,454 | $ | 89,745 | $ | 86,586 | $ | 85,903 | $ | 86,541 | |||||||||||||||||
Capital expenses | $ | 4,424 | $ | 4,595 | $ | 5,152 | $ | 6,819 | $ | 5,086 | $ | 3,525 | $ | 4,528 | $ | 5,184 |
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(in thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(in thousands)
12/31/06 | 12/31/07 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 66,507 | $ | 64,542 | |||||
Accounts receivable, net | 26,364 | 28,044 | |||||||
Prepaid expenses and other | 12,294 | 8,608 | |||||||
Deferred income tax assets, net | 18,399 | 8,267 | |||||||
Total current assets | 123,564 | 109,461 | |||||||
Property and equipment, net | 91,562 | 75,669 | |||||||
Goodwill | 159,438 | 188,170 | |||||||
Intangible assets, net | 26,339 | 16,929 | |||||||
Deferred income tax assets, net | 180,244 | 86,219 | |||||||
Other assets | 7,067 | 7,634 | |||||||
Total assets | $ | 588,214 | $ | 484,082 | |||||
Liabilities and stockholders’ equity | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued liabilities | $ | 63,979 | $ | 53,418 | |||||
Distributions payable | 435 | 93 | |||||||
Customer deposits | 2,250 | 1,592 | |||||||
Deferred revenue | 16,194 | 12,059 | |||||||
Total current liabilities | 82,858 | 67,162 | |||||||
Other long-term liabilities | 29,384 | 43,352 | |||||||
Total liabilities | 112,242 | 110,514 | |||||||
Stockholders’ equity: | |||||||||
Preferred stock | — | — | |||||||
Common stock | 3 | 3 | |||||||
Additional paid-in capital | 475,969 | 373,565 | |||||||
Retained earnings | — | — | |||||||
Total stockholders’ equity | 475,972 | 373,568 | |||||||
Total liabilities and stockholders’ equity | $ | 588,214 | $ | 484,082 | |||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(in thousands)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(in thousands)
For the twelve months ended | |||||||||
12/31/06 | 12/31/07 | ||||||||
Cash flows from operating activities: | |||||||||
Net income (loss) | $ | 40,181 | $ | (5,198 | ) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation, amortization and accretion | 73,299 | 48,688 | |||||||
Deferred income tax expense | 16,197 | 91,995 | |||||||
Amortization of stock based compensation | 2,728 | 1,412 | |||||||
Provisions for doubtful accounts, service credits and other | 17,204 | 8,561 | |||||||
Non-cash tax accrual adjustments | (3,467 | ) | (6,789 | ) | |||||
Loss/(gain) on disposals of property and equipment | 601 | (169 | ) | ||||||
Changes in assets and liabilities: | |||||||||
Accounts receivable | (6,816 | ) | (10,240 | ) | |||||
Prepaid expenses and other | (395 | ) | 2,706 | ||||||
Intangibles and other long-term assets | (2,746 | ) | (582 | ) | |||||
Accounts payable and accrued liabilities | 816 | (6,538 | ) | ||||||
Customer deposits and deferred revenue | (2,584 | ) | (4,793 | ) | |||||
Other long-term liabilities | 12,224 | (4,768 | ) | ||||||
Net cash provided by operating activities | 147,242 | 114,285 | |||||||
Cash flows from investing activities: | |||||||||
Purchases of property and equipment | (20,990 | ) | (18,323 | ) | |||||
Proceeds from disposals of property and equipment | 200 | 323 | |||||||
Receipts from long-term notes receivable | 1,425 | — | |||||||
Net cash used in investing activities | (19,365 | ) | (18,000 | ) | |||||
Cash flows from financing activities: | |||||||||
Repayment of long-term debt | (13 | ) | — | ||||||
Cash distributions to stockholders | (98,904 | ) | (98,250 | ) | |||||
Net cash used in financing activities | (98,917 | ) | (98,250 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 28,960 | (1,965 | ) | ||||||
Cash and cash equivalents, beginning of period | 37,547 | 66,507 | |||||||
Cash and cash equivalents, end of period | $ | 66,507 | $ | 64,542 | |||||
Supplemental disclosure: | |||||||||
Interest paid | $ | 34 | $ | 13 | |||||
Income taxes paid (state and local) | $ | 49 | $ | 70 | |||||
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)
(in thousands, except share and per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)
(in thousands, except share and per share amounts)
For the year ended | |||||||||
December 31, | |||||||||
2006 | 2007 | ||||||||
Revenue: | |||||||||
Paging service | $ | 464,194 | $ | 389,469 | |||||
Cellular | 7,727 | 8,324 | |||||||
Product sales | 21,556 | 22,204 | |||||||
Other | 4,217 | 4,627 | |||||||
Total revenue | 497,694 | 424,624 | |||||||
Operating expenses: | |||||||||
Cost of products sold | 3,837 | 6,233 | |||||||
Service, rental and maintenance | 177,120 | 151,930 | |||||||
Selling and marketing | 43,902 | 38,828 | |||||||
General and administrative | 127,877 | 96,667 | |||||||
Severance and restructuring | 4,586 | 6,429 | |||||||
Depreciation, amortization and accretion | 73,299 | 48,688 | |||||||
Total operating expenses | 430,621 | 348,775 | |||||||
% of total revenue | 86.5 | % | 82.1 | % | |||||
Operating income | 67,073 | 75,849 | |||||||
% of total revenue | 13.5 | % | 17.9 | % | |||||
Interest income, net | 3,868 | 3,448 | |||||||
Other income, net | 800 | 2,150 | |||||||
Income before income tax expense | 71,741 | 81,447 | |||||||
Income tax expense | 31,560 | 86,645 | |||||||
Net income (loss) | $ | 40,181 | $ | (5,198 | ) | ||||
Basic net income (loss) per common share | $ | 1.47 | $ | (0.19 | ) | ||||
Diluted net income (loss) per common share | $ | 1.46 | $ | (0.19 | ) | ||||
Basic weighted average common shares outstanding | 27,399,811 | 27,442,444 | |||||||
Diluted weighted average common shares outstanding | 27,580,866 | 27,442,444 | |||||||
Reconciliation of operating income to EBITDA (b): | |||||||||
Operating income | $ | 67,073 | $ | 75,849 | |||||
Add back: Depreciation, amortization and accretion | 73,299 | 48,688 | |||||||
EBITDA | $ | 140,372 | $ | 124,537 | |||||
% of total revenue | 28.2 | % | 29.3 | % | |||||
(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. |