Exhibit 99.1
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FOR IMMEDIATE RELEASE | | CONTACT: | | Bob Lougee (800) 611-8488 |
Thursday, November 1, 2012 | | | | bob.lougee@usamobility.com |
USA Mobility Reports Third Quarter Operating Results;
Board Declares Regular Quarterly Dividend
Wireless Subscriber and Revenue Trends Continue to Improve;
Software Posts Record Bookings, Revenue and Backlog Increase;
Operating Expenses Decline
Springfield, VA (November 1, 2012) —USA Mobility, Inc. (Nasdaq: USMO), a leading provider ofwireless messaging,mobile voice and data andunified communications solutions, today announced operating results for the third quarter ended September 30, 2012. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on December 7, 2012 to stockholders of record on November 16, 2012.
Consolidated revenue for the third quarter was $55.1 million, compared to $56.0 million in the second quarter and $61.5 million in the third quarter of 2011. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $41.4 million in the third quarter, compared to $42.8 million in the second quarter and $48.5 million in the third quarter of 2011. Third quarter revenue from the Software business (Amcom Software) was $13.7 million, compared to $13.2 million in the second quarter and $12.9 million in the year-earlier quarter.
Third quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $17.8 million, or 32.2 percent of revenue, compared to $18.4 million, or 32.9 percent of revenue, in the second quarter and $21.3 million, or 34.6 percent of revenue, in the year-earlier quarter. Third quarter EBITDA included $16.3 million from Wireless and $1.5 million from Software, compared to $19.9 million and $1.3 million, respectively, in the third quarter of 2011. Excluding purchase accounting adjustments, EBITDA for the third quarter of 2011 would have been $22.8 million, or 36.2 percent of revenue.
Net income for the third quarter was $8.0 million, or $0.36 per fully diluted share, compared to $10.4 million, or $0.46 per fully diluted share, in the third quarter of 2011. Excluding purchase accounting adjustments, net income for the third quarter of 2011 would have been $11.6 million, or $0.51 per fully diluted share.
Third quarter results included:
Wireless
| • | | Net unit losses totaled 37,000 in the third quarter, compared to 58,000 in the third quarter of 2011. The quarterly rate of net unit loss was 2.3 percent, compared to 3.3 percent in the year-earlier quarter, while the annual rate of unit erosion reached a record low of 10.2 percent versus 11.0 percent in the second quarter and 11.7 percent in the year-ago quarter. Units in service at September 30, 2012 totaled 1,546,000 compared to 1,721,000 a year earlier. |
| • | | The quarterly rate of revenue erosion improved to 3.1 percent from 3.3 percent in the second quarter and 6.8 percent in the third quarter of 2011, while the annual rate of revenue erosion was 14.6 percent versus 17.9 percent in the second quarter and 14.4 percent in the year-earlier quarter. |
| • | | Total ARPU (average revenue per unit) was $8.36 in the third quarter, compared to $8.45 in the second quarter and $8.59 in the third quarter of 2011. |
| • | | Third quarter EBITDA margin for Wireless was 39.3 percent, compared to 39.2 percent in the second quarter and 41.1 percent in the year-earlier quarter. |
Software
| • | | Bookings for the third quarter increased to a record $15.7 million from $15.1 million in the second quarter and $14.2 million in the year-earlier quarter. |
| • | | The backlog was $26.4 million at September 30, 2012, compared to $25.4 million at June 30, 2012, and $21.3 million at September 30, 2011. |
| • | | Third quarter Software revenue of $13.7 million included $6.6 million of maintenance revenue and $7.1 million of operations revenue, compared to $6.5 million and $6.7 million, respectively, of the $13.2 million in Software revenue for the prior quarter. |
| • | | The renewal rate for maintenance in the third quarter was 97.6 percent. |
Total Company
| • | | Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $37.3 million in the third quarter, with $25.1 million for Wireless and $12.2 million for Software, compared to $37.5 million in the second quarter, with $26.0 million for Wireless and $11.5 million for Software. |
| • | | Capital expenses were $2.7 million, compared to $1.8 million in the third quarter of 2011. |
| • | | Dividends paid to stockholders totaled $2.8 million for the third quarter. |
| • | | The Company’s cash balance was $49.5 million at September 30, 2012. |
| • | | The number of full-time equivalent employees at September 30, 2012 totaled 676, including 396 for Wireless and 280 for Software, compared to a total of 686 at June 30, 2012, including 411 for Wireless and 275 for Software. |
Vincent D. Kelly, president and chief executive officer, said: “Both our Wireless and Software businesses again made excellent progress during the quarter. On the Wireless side, quarterly rates of subscriber and revenue erosion continued to improve while our annual rate of unit loss reached its best level in eight years. We also exceeded our key performance goals for gross additions and ARPU. Our Software business also turned in an outstanding quarter as revenue and bookings increased from the prior quarter and our backlog surpassed $26 million to reach an all-time high. Along with continued growth of its U.S.-based operations, Amcom also expanded internationally with the addition of new accounts in Australia and opening of a Middle East regional office in Dubai. At the same time, our combined business continued to reduce expenses, maintain strong operating margins, and generate sufficient cash flow to again return capital to stockholders in the form of dividend distributions and stock repurchases.”
Kelly said the Wireless business continued to expand account relationships in the Healthcare industry, its largest market segment, during the quarter. “Healthcare represented 70.6 percent of our direct subscriber base and 65.1 percent of direct paging revenue at September 30th, compared to 66.3 percent and 60.7 percent, respectively, a year earlier. Healthcare also continued to be our best performing market segment with the highest percentage of direct gross additions (79.2 percent) and the lowest rate of direct net unit loss (0.9 percent),” Kelly noted, “as healthcare providers continue to benefit from the reliability and cost advantages of paging for their most critical messaging needs.”
Commenting on Software results, Kelly said: “Amcom delivered a quarter-over-quarter increase in revenue in the third quarter, along with record bookings and a growing backlog and sales pipeline at September 30th. Although we closed much of our business in the North American healthcare market, we made considerable inroads in the Middle East, including the sale of a full suite of healthcare solutions to a major hospital in the Gulf Region. We also had strong sales among public safety organizations as a record number of military and municipal 911 emergency response centers chose Amcom’s dispatch solution. Indeed, we are seeing an increasing number of customers from multiple business segments select Amcom due to the breadth of our critical communications solutions, which range from call center management, clinical alerting middleware, critical smartphone communications and emergency notification.”
Kelly added: “As previously announced, we recently made several key management changes at our software subsidiary. Colin Balmforth joined Amcom as president in September and Lynn Danko was named chief financial officer in mid-October. Along with the promotions in July of Kate Bolseth to chief operating officer and Sean Collins to executive vice president of sales, Amcom now has an exceptionally strong management team in place to successfully pursue our worldwide business goals.”
Kelly said USA Mobility repurchased 434,982 shares of its common stock during the quarter for approximately $4.9 million (excluding commissions) after renewal of the Company’s stock repurchase program in July. The plan, which extends through December 31, 2013, had been suspended since March 2011 when the Company acquired Amcom. Since the buy back program began in 2008, the Company has repurchased approximately 6.0 million shares of its common stock for approximately $56.6 million at an average price of $9.45 per share.
Shawn E. Endsley, chief financial officer, said the Company continued to reduce operating expenses in the third quarter, principally in its Wireless business. “Operating expenses (excluding depreciation, amortization and accretion) for Wireless decreased 12.1 percent from the year-earlier quarter. In addition, the Wireless business continued to generate solid revenues during the quarter driven largely by a stable ARPU and improved unit churn.” Endsley also noted that the Company’s balance sheet remained strong with a cash balance of $49.5 million at September 30th and no outstanding debt.
With respect to financial guidance for 2012, Endsley said the Company is maintaining its prior guidance for consolidated results for the full year, with total revenues expected to range from $215 million to $227 million, operating expenses (excluding depreciation, amortization and accretion) to range from $154 million to $162 million, and capital expenses to range from $7.1 million to $9.5 million.
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its third quarter results at 10:00 a.m. Eastern Time on Friday, November 2, 2012. Dial-in numbers for the call are 719-325-2452 or 888-430-8705. The pass code for the call is 6474706. A replay of the call will be available from 1:00 p.m. ET on November 2 until 11:59 p.m. on Friday November 16. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 6474706.
* * * * * * * * *
About USA Mobility
USA Mobility, Inc., headquartered in Springfield, Virginia, is a comprehensive provider of reliable and affordablewireless communications solutions to thehealthcare,government,large enterprise andemergency response sectors. In addition, through its software subsidiary, Amcom Software, Inc., USA Mobility providesmission critical unified communications solutions nationally and internationally for hospitals, contact centers, and other customers that require emergency management, mobile event notification and messaging services. As a single-source provider, the Company’s wireless subsidiary, USA Mobility Wireless, focuses on the business-to-business marketplace and supplying wireless connectivity solutions to organizations nationwide. USA Mobility Wireless operates the largest one-way paging and advanced two-way paging networks in the United States. It also offers mobile voice and data services throughSprint Nextel andT-Mobile, includingBlackBerry® smartphones and GPS location applications. Product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. USA Mobility Wireless also offersM2M (machine-to-machine) telemetry solutions for numerous applications that include asset tracking, utility meter reading and other remote device monitoring applications on a national scale. For further information, visitwww.usamobility.com andwww.amcomsoftware.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act: Statements contained herein or in prior press releases which are not historical fact, such as statements regarding USA Mobility’s future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause USA Mobility’s actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, declining demand for paging products and services, the ability to continue to reduce operating expenses, future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, government regulation, reliance upon third-party providers for certain equipment and services, as well as other risks described from time to time in periodic reports and registration statements filed with the Securities and Exchange Commission. Although USA Mobility believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. USA Mobility disclaims any intent or obligation to update any forward-looking statements.
Tables to Follow
USA MOBILITY, INC.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)
(In thousands, except share, per share amounts and ARPU)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | For the nine months ended September 30, | |
| | 2012 | | | 2011 | |
| | Wireless | | | Software | | | Total | | | Wireless | | | Software | | | Total | |
| | | | | | |
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | |
Paging service | | $ | 121,658 | | | $ | — | | | $ | 121,658 | | | $ | 141,068 | | | $ | — | | | $ | 141,068 | |
Cellular | | | 877 | | | | — | | | | 877 | | | | 2,198 | | | | — | | | | 2,198 | |
Product and related sales (c) | | | 5,101 | | | | 39,324 | | | | 44,425 | | | | 7,684 | | | | 30,808 | | | | 38,492 | |
Other | | | 852 | | | | — | | | | 852 | | | | 2,218 | | | | — | | | | 2,218 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | 128,488 | | | | 39,324 | | | | 167,812 | | | | 153,168 | | | | 30,808 | | | | 183,976 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of products sold (c) | | | 516 | | | | 14,621 | | | | 15,137 | | | | 2,257 | | | | 13,202 | | | | 15,459 | |
Service, rental and maintenance (c) | | | 34,737 | | | | 7,189 | | | | 41,926 | | | | 43,221 | | | | 4,648 | | | | 47,869 | |
Selling and marketing | | | 8,794 | | | | 8,821 | | | | 17,615 | | | | 11,191 | | | | 6,248 | | | | 17,439 | |
General and administrative | | | 33,869 | | | | 4,260 | | | | 38,129 | | | | 39,141 | | | | 3,344 | | | | 42,485 | |
Severance and restructuring | | | 9 | | | | 37 | | | | 46 | | | | 78 | | | | — | | | | 78 | |
Depreciation, amortization and accretion | | | 8,613 | | | | 5,232 | | | | 13,845 | | | | 11,057 | | | | 3,861 | | | | 14,918 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 86,538 | | | | 40,160 | | | | 126,698 | | | | 106,945 | | | | 31,303 | | | | 138,248 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% of total revenue | | | 67.4 | % | | | 102.1 | % | | | 75.5 | % | | | 69.8 | % | | | 101.6 | % | | | 75.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | | 41,950 | | | | (836 | ) | | | 41,114 | | | | 46,223 | | | | (495 | ) | | | 45,728 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% of total revenue | | | 32.6 | % | | | -2.1 | % | | | 24.5 | % | | | 30.2 | % | | | -1.6 | % | | | 24.9 | % |
| | | | | | |
Interest expense, net | | | (318 | ) | | | — | | | | (318 | ) | | | (1,841 | ) | | | (9 | ) | | | (1,850 | ) |
Other income (expense), net | | | 461 | | | | (35 | ) | | | 426 | | | | 7,904 | | | | (84 | ) | | | 7,820 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income tax (expense) benefit | | | 42,093 | | | | (871 | ) | | | 41,222 | | | | 52,286 | | | | (588 | ) | | | 51,698 | |
Income tax (expense) benefit | | | (16,584 | ) | | | 319 | | | | (16,265 | ) | | | 17,905 | | | | 90 | | | | 17,995 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 25,509 | | | $ | (552 | ) | | $ | 24,957 | | | $ | 70,191 | | | $ | (498 | ) | | $ | 69,693 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Basic net income per common share | | | | | | | | | | $ | 1.13 | | | | | | | | | | | $ | 3.16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted net income per common share | | | | | | | | | | $ | 1.11 | | | | | | | | | | | $ | 3.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Basic weighted average common shares outstanding | | | | | | | | | | | 22,069,785 | | | | | | | | | | | | 22,080,485 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted weighted average common shares outstanding | | | | | | | | | | | 22,534,127 | | | | | | | | | | | | 22,487,374 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Reconciliation of operating income (loss) to EBITDA (d): | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | $ | 41,950 | | | $ | (836 | ) | | $ | 41,114 | | | $ | 46,223 | | | $ | (495 | ) | | $ | 45,728 | |
Add back: depreciation, amortization and accretion | | | 8,613 | | | | 5,232 | | | | 13,845 | | | | 11,057 | | | | 3,861 | | | | 14,918 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA | | $ | 50,563 | | | $ | 4,396 | | | $ | 54,959 | | | $ | 57,280 | | | $ | 3,366 | | | $ | 60,646 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% of total revenue | | | 39.4 | % | | | 11.2 | % | | | 32.8 | % | | | 37.4 | % | | | 10.9 | % | | | 33.0 | % |
| | | | | | |
Key statistics: | | | | | | | | | | | | | | | | | | | | | | | | |
Units in service | | | 1,546 | | | | — | | | | 1,546 | | | | 1,721 | | | | — | | | | 1,721 | |
Average revenue per unit (ARPU) | | $ | 8.41 | | | $ | — | | | $ | 8.41 | | | $ | 8.68 | | | $ | — | | | $ | 8.68 | |
Bookings | | $ | — | | | $ | 43,173 | | | $ | 43,173 | | | $ | — | | | $ | 32,673 | | | $ | 32,673 | |
Backlog | | $ | — | | | $ | 26,448 | | | $ | 26,448 | | | $ | — | | | $ | 21,313 | | | $ | 21,313 | |
(a) | Slight variations in totals are due to rounding. |
(b) | Includes consolidated results of operations of USA Mobility Wireless, Inc. (“Wireless”) and Amcom Software, Inc. (“Software”). Software operations reflect financial results from March 3, 2011, the acquisition date. |
(c) | Wireless results reflect eliminations for intercompany revenue and expenses. |
(d) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(In thousands)
| | | | | | | | |
| | 9/30/12 | | | 12/31/11 | |
| | (Unaudited) | | | | |
| | |
Assets | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | | 49,545 | | | $ | 53,655 | |
Accounts receivable, net | | | 21,356 | | | | 20,523 | |
Prepaid expenses and other | | | 4,244 | | | | 4,338 | |
Inventory | | | 3,222 | | | | 2,268 | |
Escrow receivables | | | 275 | | | | 14,819 | |
Deferred income tax assets, net | | | 5,062 | | | | 8,617 | |
| | | | | | | | |
Total current assets | | | 83,704 | | | | 104,220 | |
Property and equipment, net | | | 20,777 | | | | 22,421 | |
Goodwill | | | 132,781 | | | | 130,968 | |
Other intangible assets, net | | | 35,346 | | | | 38,757 | |
Deferred income tax assets, net | | | 39,916 | | | | 51,600 | |
Other assets | | | 1,812 | | | | 2,094 | |
| | | | | | | | |
Total assets | | $ | 314,336 | | | $ | 350,060 | |
| | | | | | | | |
| | |
Liabilities and stockholders’ equity | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable and accrued liabilities | | $ | 12,916 | | | $ | 12,394 | |
Accrued compensation and benefits | | | 13,195 | | | | 12,854 | |
Consideration payable | | | 275 | | | | 14,819 | |
Customer deposits | | | 1,475 | | | | 1,806 | |
Deferred revenue | | | 16,369 | | | | 14,693 | |
| | | | | | | | |
Total current liabilities | | | 44,230 | | | | 56,566 | |
Long-term debt | | | — | | | | 28,250 | |
Deferred revenue | | | 471 | | | | 581 | |
Other long-term liabilities | | | 9,809 | | | | 12,223 | |
| | | | | | | | |
Total liabilities | | | 54,510 | | | | 97,620 | |
| | | | | | | | |
Commitments and contingencies | | | | | | | | |
Stockholders’ equity: | | | | | | | | |
Preferred stock | | | — | | | | — | |
Common stock | | | 2 | | | | 2 | |
Additional paid-in capital | | | 128,028 | | | | 131,612 | |
Retained earnings | | | 131,796 | | | | 120,826 | |
| | | | | | | | |
Total stockholders’ equity | | | 259,826 | | | | 252,440 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 314,336 | | | $ | 350,060 | |
| | | | | | | | |
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(Unaudited and in thousands)
| | | | | | | | |
| | For the nine months ended | |
| | 9/30/12 | | | 9/30/11 | |
| | |
Cash flows from operating activities: | | | | | | | | |
Net income | | $ | 24,957 | | | $ | 69,693 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Depreciation, amortization and accretion | | | 13,845 | | | | 14,918 | |
Amortization of deferred financing costs | | | 194 | | | | 521 | |
Deferred income tax expense (benefit) | | | 15,239 | | | | (19,072 | ) |
Amortization of stock based compensation | | | 902 | | | | 1,093 | |
Provisions for doubtful accounts, service credits and other | | | 1,239 | | | | 989 | |
(Adjustments)/Settlement of transaction taxes | | | (366 | ) | | | 243 | |
(Gain)/Loss on disposals of property and equipment | | | (159 | ) | | | 118 | |
Gain on disposals of narrow band PCS licenses | | | — | | | | (7,500 | ) |
Changes in assets and liabilities: | | | | | | | | |
Accounts receivable | | | (2,062 | ) | | | (518 | ) |
Prepaid expenses, intangibles and other assets | | | (531 | ) | | | 6,752 | |
Accounts payable and accrued liabilities | | | (1,788 | ) | | | (9,988 | ) |
Customer deposits and deferred revenue | | | 1,235 | | | | 3,578 | |
| | | | | | | | |
Net cash provided by operating activities | | | 52,705 | | | | 60,827 | |
| | | | | | | | |
| | |
Cash flows from investing activities: | | | | | | | | |
Purchases of property and equipment | | | (7,135 | ) | | | (5,134 | ) |
Proceeds from disposals of property and equipment | | | 332 | | | | 45 | |
Proceeds from disposals of narrow band PCS licenses | | | — | | | | 7,500 | |
Acquisitions, net of cash acquired | | | (3,000 | ) | | | (134,217 | ) |
| | | | | | | | |
Net cash used in investing activities | | | (9,803 | ) | | | (131,806 | ) |
| | | | | | | | |
| | |
Cash flows from financing activities: | | | | | | | | |
Issuance of debt | | | — | | | | 24,044 | |
Repayment of debt | | | (28,250 | ) | | | (23,697 | ) |
Deferred financing costs | | | — | | | | (1,408 | ) |
Cash dividends to stockholders | | | (13,829 | ) | | | (16,591 | ) |
Purchase of common stock | | | (4,933 | ) | | | — | |
| | | | | | | | |
Net cash used in financing activities | | | (47,012 | ) | | | (17,652 | ) |
| | | | | | | | |
| | |
Net decrease in cash and cash equivalents | | | (4,110 | ) | | | (88,631 | ) |
Cash and cash equivalents, beginning of period | | | 53,655 | | | | 129,220 | |
| | | | | | | | |
Cash and cash equivalents, end of period | | $ | 49,545 | | | $ | 40,589 | |
| | | | | | | | |
| | |
Supplemental disclosure: | | | | | | | | |
Interest paid | | $ | 285 | | | $ | 1,198 | |
| | | | | | | | |
Income taxes paid | | $ | 1,376 | | | $ | 1,658 | |
| | | | | | | | |
Non-cash financing activities | | $ | — | | | $ | 27,750 | |
| | | | | | | | |
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)
(Unaudited and in thousands, except share, per share amounts and ARPU)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | For the three months ended September 30, | |
| | 2012 | | | 2011 | |
| | Wireless | | | Software | | | Total | | | Wireless | | | Software | | | Total | |
| | | | | | |
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | |
Paging service | | $ | 39,235 | | | $ | — | | | $ | 39,235 | | | $ | 45,121 | | | $ | — | | | $ | 45,121 | |
Cellular | | | 314 | | | | — | | | | 314 | | | | 315 | | | | — | | | | 315 | |
Product and related sales (c) | | | 1,645 | | | | 13,676 | | | | 15,321 | | | | 2,535 | | | | 12,929 | | | | 15,464 | |
Other | | | 246 | | | | — | | | | 246 | | | | 570 | | | | — | | | | 570 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | 41,440 | | | | 13,676 | | | | 55,116 | | | | 48,541 | | | | 12,929 | | | | 61,470 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of products sold | | | 187 | | | | 4,918 | | | | 5,105 | | | | 423 | | | | 5,528 | | | | 5,951 | |
Service, rental and maintenance (c) | | | 11,239 | | | | 2,492 | | | | 13,731 | | | | 13,194 | | | | 2,023 | | | | 15,217 | |
Selling and marketing | | | 2,774 | | | | 3,269 | | | | 6,043 | | | | 3,412 | | | | 2,515 | | | | 5,927 | |
General and administrative | | | 10,935 | | | | 1,531 | | | | 12,466 | | | | 11,550 | | | | 1,527 | | | | 13,077 | |
Severance and restructuring | | | — | | | | — | | | | — | | | | 28 | | | | — | | | | 28 | |
Depreciation, amortization and accretion | | | 2,944 | | | | 1,780 | | | | 4,724 | | | | 3,407 | | | | 1,673 | | | | 5,080 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 28,079 | | | | 13,990 | | | | 42,069 | | | | 32,014 | | | | 13,266 | | | | 45,280 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% of total revenue | | | 67.8 | % | | | 102.3 | % | | | 76.3 | % | | | 66.0 | % | | | 102.6 | % | | | 73.7 | % |
| | | | | | |
Operating income (loss) | | | 13,361 | | | | (314 | ) | | | 13,047 | | | | 16,527 | | | | (337 | ) | | | 16,190 | |
% of total revenue | | | 32.2 | % | | | -2.3 | % | | | 23.7 | % | | | 34.0 | % | | | -2.6 | % | | | 26.3 | % |
| | | | | | |
Interest expense, net | | | (64 | ) | | | — | | | | (64 | ) | | | (732 | ) | | | — | | | | (732 | ) |
Other income (expense), net | | | 68 | | | | (16 | ) | | | 52 | | | | 7 | | | | (8 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income tax (expense) benefit | | | 13,365 | | | | (330 | ) | | | 13,035 | | | | 15,802 | | | | (345 | ) | | | 15,457 | |
Income tax (expense) benefit | | | (5,093 | ) | | | 106 | | | | (4,987 | ) | | | (5,010 | ) | | | — | | | | (5,010 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 8,272 | | | $ | (224 | ) | | $ | 8,048 | | | $ | 10,792 | | | $ | (345 | ) | | $ | 10,447 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Basic net income per common share | | | | | | | | | | $ | 0.37 | | | | | | | | | | | $ | 0.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted net income per common share | | | | | | | | | | $ | 0.36 | | | | | | | | | | | $ | 0.46 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Basic weighted average common shares outstanding | | | | | | | | | | | 21,973,473 | | | | | | | | | | | | 22,090,913 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Diluted weighted average common shares outstanding | | | | | | | | | | | 22,399,934 | | | | | | | | | | | | 22,573,064 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Reconciliation of operating income (loss) to EBITDA (d): | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | | $ | 13,361 | | | $ | (314 | ) | | $ | 13,047 | | | $ | 16,527 | | | $ | (337 | ) | | $ | 16,190 | |
Add back: depreciation, amortization and accretion | | | 2,944 | | | | 1,780 | | | | 4,724 | | | | 3,407 | | | | 1,673 | | | | 5,080 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA | | $ | 16,305 | | | $ | 1,466 | | | $ | 17,771 | | | $ | 19,934 | | | $ | 1,336 | | | $ | 21,270 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
% of total revenue | | | 39.3 | % | | | 10.7 | % | | | 32.2 | % | | | 41.1 | % | | | 10.3 | % | | | 34.6 | % |
| | | | | | |
Key statistics: | | | | | | | | | | | | | | | | | | | | | | | | |
Units in service | | | 1,546 | | | | — | | | | 1,546 | | | | 1,721 | | | | — | | | | 1,721 | |
Average revenue per unit (ARPU) | | $ | 8.36 | | | $ | — | | | $ | 8.36 | | | $ | 8.59 | | | $ | — | | | $ | 8.59 | |
Bookings | | $ | — | | | $ | 15,670 | | | $ | 15,670 | | | $ | — | | | $ | 14,188 | | | $ | 14,188 | |
Backlog | | $ | — | | | $ | 26,448 | | | $ | 26,448 | | | $ | — | | | $ | 21,313 | | | $ | 21,313 | |
(a) | Slight variations in totals are due to rounding. |
(b) | Includes consolidated results of operations of USA Mobility Wireless, Inc. (“Wireless”) and Amcom Software, Inc. (“Software”). Software operations reflect financial results from March 3, 2011, the acquisition date. |
(c) | Wireless results reflect eliminations of intercompany revenue and expenses. |
(d) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)
(Unaudited and in thousands, except share, per share amounts and ARPU)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 9/30/12 | | | 6/30/12 | | | 3/31/12 | | | 12/31/11 | | | 9/30/11 | | | 6/30/11 | | | 3/31/11 | |
| | | | | | | |
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Paging service | | $ | 39,235 | | | $ | 40,548 | | | $ | 41,875 | | | $ | 43,249 | | | $ | 45,121 | | | $ | 47,319 | | | $ | 48,628 | |
Cellular | | | 314 | | | | 286 | | | | 277 | | | | 414 | | | | 315 | | | | 1,199 | | | | 684 | |
Product and related sales | | | 15,321 | | | | 14,847 | | | | 14,257 | | | | 14,847 | | | | 15,464 | | | | 15,885 | | | | 7,143 | |
Other | | | 246 | | | | 280 | | | | 326 | | | | 421 | | | | 570 | | | | 768 | | | | 880 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenues | | | 55,116 | | | | 55,961 | | | | 56,735 | | | | 58,931 | | | | 61,470 | | | | 65,171 | | | | 57,335 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of products sold | | | 5,105 | | | | 5,216 | | | | 4,816 | | | | 5,430 | | | | 5,951 | | | | 7,078 | | | | 2,430 | |
Service, rental and maintenance | | | 13,731 | | | | 13,892 | | | | 14,303 | | | | 14,478 | | | | 15,217 | | | | 16,187 | | | | 16,465 | |
Selling and marketing | | | 6,043 | | | | 5,919 | | | | 5,653 | | | | 5,851 | | | | 5,927 | | | | 6,588 | | | | 4,924 | |
General and administrative | | | 12,466 | | | | 12,494 | | | | 13,169 | | | | 13,610 | | | | 13,077 | | | | 13,840 | | | | 15,568 | |
Severance and restructuring | | | — | | | | 24 | | | | 22 | | | | 1,215 | | | | 28 | | | | 17 | | | | 33 | |
Depreciation, amortization and accretion | | | 4,724 | | | | 4,606 | | | | 4,515 | | | | 4,417 | | | | 5,080 | | | | 5,298 | | | | 4,539 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 42,069 | | | | 42,151 | | | | 42,478 | | | | 45,001 | | | | 45,280 | | | | 49,008 | | | | 43,959 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% of total revenues | | | 76.3 | % | | | 75.3 | % | | | 74.9 | % | | | 76.4 | % | | | 73.7 | % | | | 75.2 | % | | | 76.7 | % |
| | | | | | | |
Operating income | | | 13,047 | | | | 13,810 | | | | 14,257 | | | | 13,930 | | | | 16,190 | | | | 16,163 | | | | 13,376 | |
% of total revenues | | | 23.7 | % | | | 24.7 | % | | | 25.1 | % | | | 23.6 | % | | | 26.3 | % | | | 24.8 | % | | | 23.3 | % |
| | | | | | | |
Interest expense, net | | | (64 | ) | | | (66 | ) | | | (188 | ) | | | (404 | ) | | | (732 | ) | | | (862 | ) | | | (256 | ) |
Other income (expense), net | | | 52 | | | | 436 | | | | (62 | ) | | | 131 | | | | (1 | ) | | | 7,666 | | | | 154 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income tax (expense) benefit | | | 13,035 | | | | 14,180 | | | | 14,007 | | | | 13,657 | | | | 15,457 | | | | 22,967 | | | | 13,274 | |
Income tax (expense) benefit | | | (4,987 | ) | | | (5,733 | ) | | | (5,545 | ) | | | 5,289 | | | | (5,010 | ) | | | (4,372 | ) | | | 27,377 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 8,048 | | | $ | 8,447 | | | $ | 8,462 | | | $ | 18,946 | | | $ | 10,447 | | | $ | 18,595 | | | $ | 40,651 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Basic net income per common share | | $ | 0.37 | | | $ | 0.38 | | | $ | 0.38 | | | $ | 0.86 | | | $ | 0.47 | | | $ | 0.84 | | | $ | 1.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted net income per common share | | $ | 0.36 | | | $ | 0.37 | | | $ | 0.37 | | | $ | 0.84 | | | $ | 0.46 | | | $ | 0.82 | | | $ | 1.82 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Basic weighted average common shares outstanding | | | 21,973,473 | | | | 22,130,397 | | | | 22,106,543 | | | | 22,094,197 | | | | 22,090,913 | | | | 22,086,848 | | | | 22,063,393 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted weighted average common shares outstanding | | | 22,399,934 | | | | 22,613,517 | | | | 22,589,483 | | | | 22,577,312 | | | | 22,573,064 | | | | 22,551,862 | | | | 22,333,399 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Reconciliation of operating income to EBITDA (c): | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | $ | 13,047 | | | $ | 13,810 | | | $ | 14,257 | | | $ | 13,930 | | | $ | 16,190 | | | $ | 16,163 | | | $ | 13,376 | |
Add back: depreciation, amortization and accretion | | | 4,724 | | | | 4,606 | | | | 4,515 | | | | 4,417 | | | | 5,080 | | | | 5,298 | | | | 4,539 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EBITDA | | $ | 17,771 | | | $ | 18,416 | | | $ | 18,772 | | | $ | 18,347 | | | $ | 21,270 | | | $ | 21,461 | | | $ | 17,915 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% of total revenues | | | 32.2 | % | | | 32.9 | % | | | 33.1 | % | | | 31.1 | % | | | 34.6 | % | | | 32.9 | % | | | 31.2 | % |
| | | | | | | |
Key statistics: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Units in service | | | 1,546 | | | | 1,583 | | | | 1,617 | | | | 1,668 | | | | 1,721 | | | | 1,779 | | | | 1,828 | |
Average revenue per unit (ARPU) | | $ | 8.36 | | | $ | 8.45 | | | $ | 8.50 | | | $ | 8.51 | | | $ | 8.59 | | | $ | 8.74 | | | $ | 8.72 | |
Bookings | | $ | 15,670 | | | $ | 15,085 | | | $ | 12,417 | | | $ | 15,213 | | | $ | 14,188 | | | $ | 15,158 | | | $ | 3,327 | |
Backlog | | $ | 26,448 | | | $ | 25,353 | | | $ | 23,747 | | | $ | 23,712 | | | $ | 21,313 | | | $ | 20,478 | | | $ | 18,869 | |
(a) | Slight variations in totals are due to rounding. |
(b) | Software operations reflect financial results from March 3, 2011, the acquisition date. |
(c) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONSOLIDATED OPERATING EXPENSES
SUPPLEMENTAL INFORMATION (a), (b)
(Unaudited and in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 9/30/12 | | | 6/30/12 | | | 3/31/12 | | | 12/31/11 | | | 9/30/11 | | | 6/30/11 | | | 3/31/11 | |
| | | | | | | |
Cost of products sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payroll and related | | $ | 2,427 | | | $ | 2,324 | | | $ | 2,368 | | | $ | 2,277 | | | $ | 2,537 | | | $ | 2,156 | | | $ | 677 | |
Cost of sales | | | 2,195 | | | | 2,434 | | | | 2,037 | | | | 2,724 | | | | 3,132 | | | | 4,263 | | | | 1,536 | |
Other | | | 483 | | | | 458 | | | | 411 | | | | 429 | | | | 282 | | | | 659 | | | | 217 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total cost of products sold | | | 5,105 | | | | 5,216 | | | | 4,816 | | | | 5,430 | | | | 5,951 | | | | 7,078 | | | | 2,430 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Service, rental and maintenance | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Site rent | | | 4,326 | | | | 4,421 | | | | 4,791 | | | | 5,002 | | | | 5,438 | | | | 5,962 | | | | 6,881 | |
Telecommunications | | | 2,257 | | | | 2,346 | | | | 2,312 | | | | 2,598 | | | | 2,732 | | | | 2,880 | | | | 3,102 | |
Payroll and related | | | 5,309 | | | | 5,360 | | | | 5,529 | | | | 5,279 | | | | 5,578 | | | | 5,562 | | | | 4,769 | |
Stock based compensation | | | 6 | | | | 6 | | | | 6 | | | | 6 | | | | 6 | | | | 6 | | | | 5 | |
Other | | | 1,833 | | | | 1,759 | | | | 1,665 | | | | 1,593 | | | | 1,463 | | | | 1,777 | | | | 1,708 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total service, rental and maintenance | | | 13,731 | | | | 13,892 | | | | 14,303 | | | | 14,478 | | | | 15,217 | | | | 16,187 | | | | 16,465 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Selling and marketing | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payroll and related | | | 3,504 | | | | 3,544 | | | | 3,559 | | | | 3,306 | | | | 3,593 | | | | 3,567 | | | | 2,904 | |
Commissions | | | 1,335 | | | | 1,343 | | | | 1,253 | | | | 1,539 | | | | 1,443 | | | | 1,948 | | | | 1,414 | |
Stock based compensation | | | 19 | | | | 18 | | | | 16 | | | | 16 | | | | 16 | | | | 16 | | | | 17 | |
Other | | | 1,185 | | | | 1,014 | | | | 825 | | | | 990 | | | | 875 | | | | 1,057 | | | | 589 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total selling and marketing | | | 6,043 | | | | 5,919 | | | | 5,653 | | | | 5,851 | | | | 5,927 | | | | 6,588 | | | | 4,924 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
General and administrative | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payroll and related | | | 5,851 | | | | 5,972 | | | | 6,490 | | | | 6,268 | | | | 5,778 | | | | 6,781 | | | | 6,072 | |
Stock based compensation | | | 435 | | | | (19 | ) | | | 415 | | | | 415 | | | | 392 | | | | 432 | | | | 203 | |
Bad debt | | | 275 | | | | 270 | | | | 234 | | | | 363 | | | | 346 | | | | (80 | ) | | | 416 | |
Facility rent | | | 903 | | | | 868 | | | | 806 | | | | 942 | | | | 1,041 | | | | 1,035 | | | | 823 | |
Telecommunications | | | 390 | | | | 443 | | | | 412 | | | | 440 | | | | 494 | | | | 490 | | | | 470 | |
Outside services | | | 2,353 | | | | 2,458 | | | | 2,447 | | | | 2,079 | | | | 2,496 | | | | 2,533 | | | | 5,228 | |
Taxes, licenses and permits | | | 1,249 | | | | 1,426 | | | | 1,501 | | | | 1,445 | | | | 1,327 | | | | 2,190 | | | | 1,332 | |
Other | | | 1,010 | | | | 1,076 | | | | 864 | | | | 1,658 | | | | 1,203 | | | | 459 | | | | 1,024 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total general and administrative | | | 12,466 | | | | 12,494 | | | | 13,169 | | | | 13,610 | | | | 13,077 | | | | 13,840 | | | | 15,568 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Severance and restructuring | | | — | | | | 24 | | | | 22 | | | | 1,215 | | | | 28 | | | | 17 | | | | 33 | |
Depreciation, amortization and accretion | | | 4,724 | | | | 4,606 | | | | 4,515 | | | | 4,417 | | | | 5,080 | | | | 5,298 | | | | 4,539 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | $ | 42,069 | | | $ | 42,151 | | | $ | 42,478 | | | $ | 45,001 | | | $ | 45,280 | | | $ | 49,008 | | | $ | 43,959 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Capital expenditures | | $ | 2,696 | | | $ | 2,888 | | | $ | 1,551 | | | $ | 2,818 | | | $ | 1,779 | | | $ | 1,854 | | | $ | 1,501 | |
(a) | Slight variations in totals are due to rounding. |
(b) | Software operations have been included from March 3, 2011, the acquisition date. |
USA MOBILITY, INC. (WIRELESS)
UNITS IN SERVICE ACTIVITY (a)
(Unaudited and in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 9/30/12 | | | 6/30/12 | | | 3/31/12 | | | 12/31/11 | | | 9/30/11 | | | 6/30/11 | | | 3/31/11 | |
Units in service | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Beginning units in service | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | 1,395 | | | | 1,423 | | | | 1,465 | | | | 1,510 | | | | 1,559 | | | | 1,599 | | | | 1,645 | |
Direct two-way | | | 82 | | | | 85 | | | | 90 | | | | 93 | | | | 97 | | | | 100 | | | | 106 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | 1,477 | | | | 1,508 | | | | 1,555 | | | | 1,603 | | | | 1,656 | | | | 1,699 | | | | 1,751 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indirect one-way | | | 58 | | | | 60 | | | | 63 | | | | 68 | | | | 71 | | | | 75 | | | | 68 | |
Indirect two-way | | | 48 | | | | 49 | | | | 50 | | | | 50 | | | | 52 | | | | 54 | | | | 70 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total indirect | | | 106 | | | | 109 | | | | 113 | | | | 118 | | | | 123 | | | | 129 | | | | 138 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total beginning units in service | | | 1,583 | | | | 1,617 | | | | 1,668 | | | | 1,721 | | | | 1,779 | | | | 1,828 | | | | 1,889 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Gross placements | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | 45 | | | | 49 | | | | 41 | | | | 39 | | | | 50 | | | | 56 | | | | 47 | |
Direct two-way | | | 3 | | | | 4 | | | | 3 | | | | 4 | | | | 5 | | | | 5 | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | 48 | | | | 53 | | | | 44 | | | | 43 | | | | 55 | | | | 61 | | | | 50 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indirect one-way | | | 1 | | | | 2 | | | | 1 | | | | 2 | | | | 3 | | | | 3 | | | | 1 | |
Indirect two-way | | | — | | | | — | | | | — | | | | — | | | | — | | | | 2 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total indirect | | | 1 | | | | 2 | | | | 1 | | | | 2 | | | | 3 | | | | 5 | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total gross placements | | | 49 | | | | 55 | | | | 45 | | | | 45 | | | | 58 | | | | 66 | | | | 51 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Gross disconnects | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | (74 | ) | | | (77 | ) | | | (83 | ) | | | (84 | ) | | | (99 | ) | | | (94 | ) | | | (93 | ) |
Direct two-way | | | (6 | ) | | | (7 | ) | | | (8 | ) | | | (7 | ) | | | (9 | ) | | | (10 | ) | | | (9 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | (80 | ) | | | (84 | ) | | | (91 | ) | | | (91 | ) | | | (108 | ) | | | (104 | ) | | | (102 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indirect one-way | | | (4 | ) | | | (4 | ) | | | (4 | ) | | | (7 | ) | | | (6 | ) | | | (10 | ) | | | 6 | |
Indirect two-way | | | (2 | ) | | | (1 | ) | | | (1 | ) | | | — | | | | (2 | ) | | | (1 | ) | | | (16 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total indirect | | | (6 | ) | | | (5 | ) | | | (5 | ) | | | (7 | ) | | | (8 | ) | | | (11 | ) | | | (10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total gross disconnects | | | (86 | ) | | | (89 | ) | | | (96 | ) | | | (98 | ) | | | (116 | ) | | | (115 | ) | | | (112 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net (loss)/gain | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | (29 | ) | | | (28 | ) | | | (42 | ) | | | (45 | ) | | | (49 | ) | | | (38 | ) | | | (46 | ) |
Direct two-way | | | (3 | ) | | | (3 | ) | | | (5 | ) | | | (3 | ) | | | (4 | ) | | | (5 | ) | | | (6 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | (32 | ) | | | (31 | ) | | | (47 | ) | | | (48 | ) | | | (53 | ) | | | (43 | ) | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indirect one-way | | | (3 | ) | | | (2 | ) | | | (3 | ) | | | (5 | ) | | | (3 | ) | | | (7 | ) | | | 7 | |
Indirect two-way | | | (2 | ) | | | (1 | ) | | | (1 | ) | | | — | | | | (1 | ) | | | 1 | | | | (16 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total indirect | | | (5 | ) | | | (3 | ) | | | (4 | ) | | | (5 | ) | | | (4 | ) | | | (6 | ) | | | (9 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net change | | | (37 | ) | | | (34 | ) | | | (51 | ) | | | (53 | ) | | | (58 | ) | | | (49 | ) | | | (60 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ending units in service | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | 1,366 | | | | 1,395 | | | | 1,423 | | | | 1,465 | | | | 1,510 | | | | 1,559 | | | | 1,599 | |
Direct two-way | | | 79 | | | | 82 | | | | 85 | | | | 90 | | | | 93 | | | | 97 | | | | 100 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | 1,445 | | | | 1,477 | | | | 1,508 | | | | 1,555 | | | | 1,603 | | | | 1,656 | | | | 1,699 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Indirect one-way | | | 55 | | | | 58 | | | | 60 | | | | 63 | | | | 68 | | | | 71 | | | | 75 | |
Indirect two-way | | | 46 | | | | 48 | | | | 49 | | | | 50 | | | | 50 | | | | 52 | | | | 54 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total indirect | | | 101 | | | | 106 | | | | 109 | | | | 113 | | | | 118 | | | | 123 | | | | 129 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total ending units in service | | | 1,546 | | | | 1,583 | | | | 1,617 | | | | 1,668 | | | | 1,721 | | | | 1,779 | | | | 1,828 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 9/30/12 | | | 6/30/12 | | | 3/31/12 | | | 12/31/11 | | | 9/30/11 | | | 6/30/11 | | | 3/31/11 | |
| | | | | | | |
ARPU | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | $ | 7.84 | | | $ | 7.89 | | | $ | 7.91 | | | $ | 7.90 | | | $ | 7.97 | | | $ | 8.10 | | | $ | 8.05 | |
Direct two-way | | | 20.55 | | | | 20.88 | | | | 21.08 | | | | 21.27 | | | | 21.60 | | | | 22.05 | | | | 22.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | 8.54 | | | | 8.62 | | | | 8.67 | | | | 8.68 | | | | 8.77 | | | | 8.92 | | | | 8.89 | |
| | | | | | | |
Indirect one-way | | | 7.25 | | | | 7.48 | | | | 7.61 | | | | 7.49 | | | | 7.28 | | | | 7.57 | | | | 8.44 | |
Indirect two-way | | | 4.08 | | | | 4.19 | | | | 4.33 | | | | 4.43 | | | | 4.77 | | | | 4.77 | | | | 4.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total indirect | | | 5.77 | | | | 5.97 | | | | 6.14 | | | | 6.16 | | | | 6.22 | | | | 6.40 | | | | 6.49 | |
| | | | | | | |
Total one-way | | | 7.82 | | | | 7.88 | | | | 7.90 | | | | 7.89 | | | | 7.94 | | | | 8.08 | | | | 8.07 | |
Total two-way | | | 14.36 | | | | 14.69 | | | | 15.00 | | | | 15.29 | | | | 15.71 | | | | 16.04 | | | | 15.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total paging ARPU | | $ | 8.36 | | | $ | 8.45 | | | $ | 8.50 | | | $ | 8.51 | | | $ | 8.59 | | | $ | 8.74 | | | $ | 8.72 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Gross disconnect rate (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | -5.3 | % | | | -5.4 | % | | | -5.7 | % | | | -5.6 | % | | | -6.4 | % | | | -6.0 | % | | | -5.7 | % |
Direct two-way | | | -7.7 | % | | | -8.5 | % | | | -8.3 | % | | | -7.7 | % | | | -9.5 | % | | | -9.3 | % | | | -7.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | -5.5 | % | | | -5.6 | % | | | -5.8 | % | | | -5.7 | % | | | -6.5 | % | | | -6.2 | % | | | -5.8 | % |
| | | | | | | |
Indirect one-way | | | -7.6 | % | | | -6.6 | % | | | -7.0 | % | | | -9.8 | % | | | -8.1 | % | | | -8.1 | % | | | 11.9 | % |
Indirect two-way | | | -3.1 | % | | | -1.8 | % | | | -1.7 | % | | | -1.8 | % | | | -3.1 | % | | | -4.5 | % | | | -26.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total indirect | | | -5.5 | % | | | -4.4 | % | | | -4.7 | % | | | -6.4 | % | | | -6.0 | % | | | -6.6 | % | | | -8.1 | % |
| | | | | | | |
Total one-way | | | -5.4 | % | | | -5.4 | % | | | -5.8 | % | | | -5.8 | % | | | -6.4 | % | | | -6.1 | % | | | -5.0 | % |
Total two-way | | | -6.0 | % | | | -6.0 | % | | | -5.9 | % | | | -5.6 | % | | | -7.3 | % | | | -7.6 | % | | | -15.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total paging gross disconnect rate | | | -5.5 | % | | | -5.5 | % | | | -5.8 | % | | | -5.7 | % | | | -6.5 | % | | | -6.2 | % | | | -6.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net (loss)/gain rate (c) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct one-way | | | -2.1 | % | | | -1.9 | % | | | -2.9 | % | | | -3.0 | % | | | -3.2 | % | | | -2.5 | % | | | -2.9 | % |
Direct two-way | | | -4.0 | % | | | -3.9 | % | | | -4.9 | % | | | -3.3 | % | | | -4.1 | % | | | -3.1 | % | | | -3.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | -2.2 | % | | | -2.0 | % | | | -3.0 | % | | | -3.0 | % | | | -3.2 | % | | | -2.6 | % | | | -3.0 | % |
| | | | | | | |
Indirect one-way | | | -5.6 | % | | | -4.9 | % | | | -5.4 | % | | | -7.4 | % | | | -4.5 | % | | | -5.3 | % | | | 14.6 | % |
Indirect two-way | | | -2.5 | % | | | -1.2 | % | | | -0.9 | % | | | -1.0 | % | | | -2.3 | % | | | -3.0 | % | | | -25.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total indirect | | | -4.2 | % | | | -3.2 | % | | | -3.4 | % | | | -4.7 | % | | | -3.6 | % | | | -4.3 | % | | | -6.6 | % |
| | | | | | | |
Total one-way | | | -2.2 | % | | | -2.0 | % | | | -3.0 | % | | | -3.2 | % | | | -3.2 | % | | | -2.6 | % | | | -2.2 | % |
Total two-way | | | -3.5 | % | | | -2.9 | % | | | -3.5 | % | | | -2.5 | % | | | -3.5 | % | | | -3.1 | % | | | -12.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total paging net loss rate | | | -2.3 | % | | | -2.1 | % | | | -3.0 | % | | | -3.1 | % | | | -3.3 | % | | | -2.7 | % | | | -3.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | Slight variations in totals are due to rounding. |
(b) | Gross disconnect rate is current period disconnected units divided by prior period ending units in service. |
(c) | Net (loss)/gain rate is net current period placements and disconnected units in service divided by prior period ending units in service. |
USA MOBILITY, INC. (WIRELESS)
SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 9/30/12 | | | 6/30/12 | | | 3/31/12 | | | 12/31/11 | | | 9/30/11 | | | 6/30/11 | | | 3/31/11 | |
| | | | | | | |
Gross placement rate (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Healthcare | | | 3.7 | % | | | 4.3 | % | | | 3.3 | % | | | 3.0 | % | | | 3.9 | % | | | 4.5 | % | | | 3.3 | % |
Government | | | 2.5 | % | | | 1.8 | % | | | 1.3 | % | | | 1.6 | % | | | 2.6 | % | | | 2.1 | % | | | 1.9 | % |
Large enterprise | | | 2.0 | % | | | 1.9 | % | | | 2.4 | % | | | 2.1 | % | | | 2.1 | % | | | 2.1 | % | | | 2.3 | % |
Other | | | 2.1 | % | | | 2.0 | % | | | 2.2 | % | | | 2.8 | % | | | 1.9 | % | | | 2.0 | % | | | 2.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | 3.2 | % | | | 3.5 | % | | | 2.8 | % | | | 2.7 | % | | | 3.3 | % | | | 3.6 | % | | | 2.9 | % |
Total indirect | | | 1.3 | % | | | 1.2 | % | | | 1.3 | % | | | 1.7 | % | | | 2.4 | % | | | 2.3 | % | | | 1.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 3.1 | % | | | 3.4 | % | | | 2.7 | % | | | 2.6 | % | | | 3.3 | % | | | 3.5 | % | | | 2.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Gross disconnect rate (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Healthcare | | | -4.5 | % | | | -4.5 | % | | | -4.7 | % | | | -4.9 | % | | | -5.7 | % | | | -5.0 | % | | | -4.7 | % |
Government | | | -6.8 | % | | | -7.0 | % | | | -7.7 | % | | | -7.4 | % | | | -8.3 | % | | | -8.7 | % | | | -7.6 | % |
Large enterprise | | | -7.3 | % | | | -8.0 | % | | | -7.7 | % | | | -5.7 | % | | | -7.0 | % | | | -7.1 | % | | | -6.2 | % |
Other | | | -8.1 | % | | | -8.7 | % | | | -9.2 | % | | | -8.7 | % | | | -8.9 | % | | | -9.0 | % | | | -9.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | -5.4 | % | | | -5.6 | % | | | -5.8 | % | | | -5.7 | % | | | -6.5 | % | | | -6.2 | % | | | -5.8 | % |
Total indirect | | | -5.5 | % | | | -4.4 | % | | | -4.7 | % | | | -6.4 | % | | | -6.0 | % | | | -6.6 | % | | | -8.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | -5.4 | % | | | -5.5 | % | | | -5.8 | % | | | -5.7 | % | | | -6.5 | % | | | -6.2 | % | | | -6.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net loss rate (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Healthcare | | | -0.9 | % | | | -0.2 | % | | | -1.4 | % | | | -1.9 | % | | | -1.8 | % | | | -0.5 | % | | | -1.4 | % |
Government | | | -4.3 | % | | | -5.2 | % | | | -6.4 | % | | | -5.8 | % | | | -5.7 | % | | | -6.6 | % | | | -5.7 | % |
Large enterprise | | | -5.3 | % | | | -6.1 | % | | | -5.3 | % | | | -3.6 | % | | | -4.9 | % | | | -5.0 | % | | | -3.9 | % |
Other | | | -5.9 | % | | | -6.8 | % | | | -7.1 | % | | | -5.9 | % | | | -7.0 | % | | | -6.9 | % | | | -6.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | -2.2 | % | | | -2.0 | % | | | -3.0 | % | | | -3.0 | % | | | -3.2 | % | | | -2.6 | % | | | -3.0 | % |
Total indirect | | | -4.2 | % | | | -3.2 | % | | | -3.4 | % | | | -4.7 | % | | | -3.6 | % | | | -4.3 | % | | | -6.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | -2.3 | % | | | -2.1 | % | | | -3.0 | % | | | -3.1 | % | | | -3.3 | % | | | -2.7 | % | | | -3.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
End of period units in service % of total (b) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Healthcare | | | 65.9 | % | | | 64.9 | % | | | 63.6 | % | | | 62.6 | % | | | 61.7 | % | | | 60.9 | % | | | 59.5 | % |
Government | | | 10.8 | % | | | 11.1 | % | | | 11.5 | % | | | 11.9 | % | | | 12.3 | % | | | 12.6 | % | | | 13.1 | % |
Large enterprise | | | 8.6 | % | | | 8.9 | % | | | 9.3 | % | | | 9.5 | % | | | 9.6 | % | | | 9.8 | % | | | 10.0 | % |
Other | | | 8.1 | % | | | 8.4 | % | | | 8.8 | % | | | 9.2 | % | | | 9.5 | % | | | 9.7 | % | | | 10.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total direct | | | 93.4 | % | | | 93.3 | % | | | 93.2 | % | | | 93.2 | % | | | 93.1 | % | | | 93.0 | % | | | 92.9 | % |
Total indirect | | | 6.6 | % | | | 6.7 | % | | | 6.8 | % | | | 6.8 | % | | | 6.9 | % | | | 7.0 | % | | | 7.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) | Slight variations in totals are due to rounding. |
(b) | Changes in the classification of units in service are reflected in the quarter when such changes are identified. Such changes are then appropriately reflected in calculating the gross placement, gross disconnect and net loss rates. |
USA MOBILITY, INC. (WIRELESS)
SUPPLEMENTAL INFORMATION — DIRECT UNITS IN SERVICE AND
CELLULAR ACTIVATIONS (a)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the three months ended | |
| | 9/30/12 | | | 6/30/12 | | | 3/31/12 | | | 12/31/11 | | | 9/30/11 | | | 6/30/11 | | | 3/31/11 | |
| | | | | | | |
Account size ending units in service (000’s) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 to 3 units | | | 55 | | | | 58 | | | | 61 | | | | 65 | | | | 69 | | | | 74 | | | | 79 | |
4 to 10 units | | | 33 | | | | 35 | | | | 37 | | | | 40 | | | | 42 | | | | 45 | | | | 48 | |
11 to 50 units | | | 78 | | | | 82 | | | | 86 | | | | 92 | | | | 99 | | | | 106 | | | | 114 | |
51 to 100 units | | | 50 | | | | 52 | | | | 54 | | | | 56 | | | | 61 | | | | 68 | | | | 72 | |
101 to 1,000 units | | | 343 | | | | 356 | | | | 373 | | | | 380 | | | | 399 | | | | 411 | | | | 424 | |
>1,000 units | | | 886 | | | | 894 | | | | 897 | | | | 922 | | | | 933 | | | | 952 | | | | 962 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 1,445 | | | | 1,477 | | | | 1,508 | | | | 1,555 | | | | 1,603 | | | | 1,656 | | | | 1,699 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
End of period units in service % of total direct | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 to 3 units | | | 3.8 | % | | | 3.9 | % | | | 4.1 | % | | | 4.2 | % | | | 4.3 | % | | | 4.4 | % | | | 4.7 | % |
4 to 10 units | | | 2.3 | % | | | 2.3 | % | | | 2.3 | % | | | 2.6 | % | | | 2.6 | % | | | 2.7 | % | | | 2.8 | % |
11 to 50 units | | | 5.4 | % | | | 5.6 | % | | | 5.7 | % | | | 5.9 | % | | | 6.2 | % | | | 6.4 | % | | | 6.7 | % |
51 to 100 units | | | 3.5 | % | | | 3.5 | % | | | 3.6 | % | | | 3.6 | % | | | 3.8 | % | | | 4.1 | % | | | 4.2 | % |
101 to 1,000 units | | | 23.7 | % | | | 24.1 | % | | | 24.8 | % | | | 24.4 | % | | | 24.9 | % | | | 24.8 | % | | | 25.0 | % |
>1,000 units | | | 61.3 | % | | | 60.6 | % | | | 59.5 | % | | | 59.3 | % | | | 58.2 | % | | | 57.6 | % | | | 56.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Account size net loss rate | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 to 3 units | | | -5.3 | % | | | -5.7 | % | | | -6.2 | % | | | -5.7 | % | | | -5.9 | % | | | -6.3 | % | | | -6.2 | % |
4 to 10 units | | | -4.8 | % | | | -6.2 | % | | | -6.2 | % | | | -6.6 | % | | | -6.4 | % | | | -6.8 | % | | | -6.2 | % |
11 to 50 units | | | -4.8 | % | | | -4.1 | % | | | -7.1 | % | | | -7.3 | % | | | -6.4 | % | | | -6.5 | % | | | -7.7 | % |
51 to 100 units | | | -3.9 | % | | | -2.4 | % | | | -3.9 | % | | | -8.4 | % | | | -10.4 | % | | | -5.4 | % | | | -5.7 | % |
101 to 1,000 units | | | -3.8 | % | | | -4.7 | % | | | -1.7 | % | | | -4.7 | % | | | -2.9 | % | | | -3.3 | % | | | -2.7 | % |
>1,000 units | | | -1.0 | % | | | -0.3 | % | | | -2.7 | % | | | -1.1 | % | | | -2.1 | % | | | -1.0 | % | | | -1.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | -2.2 | % | | | -2.0 | % | | | -3.0 | % | | | -3.0 | % | | | -3.2 | % | | | -2.6 | % | | | -3.0 | % |
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Account size ARPU | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1 to 3 units | | $ | 15.43 | | | $ | 15.49 | | | $ | 15.49 | | | $ | 15.46 | | | $ | 15.62 | | | $ | 15.74 | | | $ | 15.57 | |
4 to 10 units | | | 14.42 | | | | 14.40 | | | | 14.45 | | | | 14.37 | | | | 14.52 | | | | 14.65 | | | | 14.53 | |
11 to 50 units | | | 12.11 | | | | 12.24 | | | | 12.15 | | | | 12.12 | | | | 12.30 | | | | 12.38 | | | | 12.19 | |
51 to 100 units | | | 10.48 | | | | 10.35 | | | | 10.52 | | | | 10.56 | | | | 10.59 | | | | 10.68 | | | | 10.59 | |
101 to 1,000 units | | | 8.97 | | | | 9.01 | | | | 9.04 | | | | 8.90 | | | | 8.90 | | | | 9.10 | | | | 9.00 | |
>1,000 units | | | 7.28 | | | | 7.34 | | | | 7.35 | | | | 7.37 | | | | 7.42 | | | | 7.49 | | | | 7.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 8.54 | | | $ | 8.62 | | | $ | 8.67 | | | $ | 8.68 | | | $ | 8.77 | | | $ | 8.92 | | | $ | 8.89 | |
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Cellular: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Number of activations | | | 948 | | | | 1,052 | | | | 1,070 | | | | 1,476 | | | | 1,236 | | | | 4,370 | | | | 2,191 | |
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Revenue from cellular services (000’s) | | $ | 314 | | | $ | 286 | | | $ | 277 | | | $ | 414 | | | $ | 315 | | | $ | 1,199 | | | $ | 684 | |
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(a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
2012 FINANCIAL GUIDANCE
| | | | | | | | |
| | (In millions) | |
| | Guidance Range | |
| | From | | | To | |
Revenues | | | | | | | | |
Wireless | | $ | 162.0 | | | $ | 170.0 | |
Software | | | 53.0 | | | | 57.0 | |
| | | | | | | | |
Combined | | $ | 215.0 | | | $ | 227.0 | |
| | | | | | | | |
| | |
Operating Expenses (a) | | | | | | | | |
Wireless | | $ | 110.0 | | | $ | 106.0 | |
Software | | | 52.0 | | | | 48.0 | |
| | | | | | | | |
Combined | | $ | 162.0 | | | $ | 154.0 | |
| | | | | | | | |
| | |
Capital Expenses | | | | | | | | |
Wireless | | $ | 9.0 | | | $ | 7.0 | |
Software | | | 0.5 | | | | 0.1 | |
| | | | | | | | |
Combined | | $ | 9.5 | | | $ | 7.1 | |
| | | | | | | | |
(a) | Operating expenses exclude depreciation, amortization and accretion. |