Exhibit 99.1
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FOR IMMEDIATE RELEASE | | | | CONTACT: | | Bob Lougee (800) 611-8488 |
| Tuesday, November 5, 2013 | | | | | | bob.lougee@usamobility.com |
USA Mobility Reports Third Quarter Operating Results;
Board Declares Regular Quarterly Dividend
Wireless Subscriber and Revenue Trends Continue to Improve
As Operating Margins and ARPU Remain Strong;
Software Bookings Increase, Backlog Reaches Record High
Springfield, VA (November 5, 2013) - USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging, mobile voice and data and unified communications solutions, today announced operating results for the third quarter ended September 30, 2013. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on December 10, 2013 to stockholders of record on November 20, 2013.
Consolidated revenue for the third quarter was $49.7 million, compared to $52.3 million in the second quarter and $55.1 million in the third quarter of 2012. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $37.1 million in the third quarter, compared to $37.8 million in the second quarter and $41.4 million in the third quarter of 2012. Revenue from the Software business (Amcom Software) was $12.6 million in the third quarter versus $14.5 million in the second quarter and $13.7 million in the third quarter of 2012. The decrease in Software revenue reflects the continuing remediation efforts to address a previously disclosed material weakness in the design of internal control over the timing of Software revenue recognition. Revenue associated with projects completed in the quarter has been deferred and will be recognized in the fourth quarter after a 90 day warranty period has expired.
Third quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $13.4 million, or 27.0 percent of revenue, compared to $17.8 million, or 32.2 percent of revenue, in the third quarter of 2012. Third quarter EBITDA included $13.8 million from Wireless, compared with $14.3 million for the second quarter and $16.3 million for the third quarter of 2012, and negative $0.4 million from Software, compared with $1.4 million for the second quarter and $1.5 million for the third quarter of 2012.
Net income for the third quarter was $5.8 million, or $0.26 per fully diluted share, compared to $8.0 million, or $0.36 per fully diluted share, in the third quarter of 2012.
Highlights for the third quarter included:
Wireless
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| • | The annual rate of revenue erosion again improved to an all-time low of 10.6 percent, compared to 11.7 percent in the second quarter and 14.6 percent in the third quarter of 2012, while the quarterly rate of revenue erosion improved to a two-year low of 1.9 percent from 2.6 percent in the second quarter and 3.1 percent in the year-earlier quarter. |
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| • | The annual rate of subscriber erosion was 8.9 percent in the third quarter, compared to 8.7 percent in the second quarter and 10.2 percent in the third quarter of 2012, while the quarterly rate of unit erosion was 2.6 percent versus 2.4 percent in the second quarter and 2.3 percent in the third quarter of 2012. Net unit losses totaled 37,000 in the third quarter, equal to the third quarter of 2012. Units in service at September 30, 2013 totaled 1,408,000 compared to 1,546,000 a year earlier. |
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| • | Total ARPU (average revenue per unit) was $8.22 in the third quarter, the same as the second quarter and compared to $8.36 in the third quarter of 2012. |
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| • | Third quarter EBITDA margin for Wireless was 37.3 percent, compared to 38.0 percent in the second quarter and 39.3 percent in the year-earlier quarter. |
Software
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| • | Bookings for the third quarter increased to $17.3 million from $15.6 million in the second quarter and $15.7 million in the third quarter of 2012. |
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| • | Backlog reached a record high of $43.8 million at September 30, compared to $39.6 million at June 30 and $36.2 million a year earlier. |
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| • | Of the $12.6 million in Software revenue for the third quarter, $7.0 million was maintenance revenue and $5.6 million was operations revenue, compared to $6.6 million and $7.1 million, respectively, of $13.7 million in Software revenue for third quarter of 2012. |
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| • | The renewal rate for maintenance in the third quarter was 99.0 percent. |
Total Company
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| • | Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $36.3 million in the third quarter, with $23.3 million for Wireless and $13.0 million for Software, compared to $37.3 million in the third quarter of 2012, with $25.1 million for Wireless and $12.2 million for Software. |
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| • | Capital expenses were $2.5 million versus $2.7 million in the third quarter of 2012. |
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| • | Dividends paid to stockholders totaled $2.7 million in the third quarter. |
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| • | The Company’s cash balance at September 30, 2013 was $83.0 million. |
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| • | The number of full-time equivalent employees at September 30, 2013 totaled 652, including 355 for Wireless and 297 for Software, compared to a total of 676 at September 30, 2012, including 396 for Wireless and 280 for Software. |
Vincent D. Kelly, president and chief executive officer, said: “USA Mobility again made solid progress in the third quarter as both our Wireless and Software operations met or exceeded their performance goals in most key operating categories. During the quarter we continued to see growing demand from our customers for enterprise-wide solutions that integrate both our Wireless and Software product offerings. Overall, Wireless subscriber and revenue trends continue to improve from the prior quarter as operating expenses declined, and Software bookings increased as the backlog reached a record high. In addition, we were able to maintain strong operating margins, operate profitably, and generate sufficient cash flow to again return capital to stockholders in the form of cash dividends.”
Kelly added: “On the Wireless side, we again exceeded expectations for gross additions, revenue, expenses, EBITDA, operating cash flow and ARPU. The annual rate of revenue erosion reached a record low for the second straight quarter, while the quarterly rate of revenue decline improved to its best level in more than two years. Moreover, the annual rate of subscriber erosion continued near record low levels.”
Kelly said third quarter sales efforts in the Wireless business continued to focus primarily on its core market segments of Healthcare, Government and Large Enterprise. “Healthcare comprised 74.8 percent of our direct subscriber base at September 30th and continued to be our most stable market segment with a consistent level of gross placements and low rate of net churn. Once again we were pleased that healthcare providers continue to recognize the cost and reliability benefits of paging for their most critical messaging needs.”
Commenting on the Software business, Kelly said: “Third quarter bookings increased from both the second quarter and year-earlier quarter while the backlog reached an all-time high of $43.8 million. Our Software sales team added new accounts in such core segments as healthcare, public safety, and government agencies and continued to build a solid pipeline of prospective business. One significant new contract, for example, included four military bases that were looking to improve their emergency call handling and response capabilities. Overall, customer demand remained strong for such software solutions as call center management, clinical alerting middleware, secure texting and emergency notification. Sales activity remained strongest in North America; however, we also added accounts in the Asia-Pacific region and EMEA countries (Europe, Middle East and Africa) as we continued to expand our software business in international markets.”
Kelly noted that the process of remediating the previously identified internal control weakness on Software revenue recognition has been underway and is expected to be completed as early as the fourth quarter. “Upon remediation we expect to report higher Software revenue as we will recognize revenue not only on transactions we complete in the fourth quarter but also revenue for those transactions from the prior quarter that were deferred until expiration of the 90-day warranty period.
Shawn E. Endsley, chief financial officer, said the Company’s balance sheet continued to benefit from strong quarterly performances by both the Wireless and Software businesses. “Improved rates of revenue erosion and subscriber churn, combined with solid operating expense management and stable ARPU, helped drive strong EBITDA in our Wireless business,” he noted, “while our Software bookings and backlog continued to increase. The net result was a consolidated cash balance of $83 million at September 30th. In addition, we continue to operate as a debt-free company and maintain approximately $40 million in borrowing capacity through our credit facility.”
Endsley said the Company is maintaining its previously announced financial guidance for 2013, which projects total revenue to range from $195 million to $213 million, operating expenses (excluding depreciation, amortization and accretion) to range from $150 million to $152 million, and capital expenses to range from $8.1 million to $9.7 million.
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its third quarter results at 10:00 a.m. Eastern Time on Wednesday, November 6, 2013. Dial-in numbers for the call are 719-325-2469 or 888-466-4462. The pass code for the call is 1581551. A replay of the call will be available from 1:00 p.m. ET on November 6 until 1:00 p.m. on Wednesday, November 20. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 1581551.
* * * * * * * * *
About USA Mobility
USA Mobility, Inc., headquartered in Springfield, Virginia, is a comprehensive provider of reliable and affordable wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors through its wireless subsidiary, USA Mobility Wireless. In addition, through its software subsidiary, Amcom Software, it provides mission critical unified communications solutions nationally and internationally to leading organizations in such industries as healthcare, hospitality, education, business and government. Amcom connects people to each other and the data they need. Its software solutions include critical smartphone communications, contact center optimization, emergency management and clinical workflow improvement. As a single-source provider, USA Mobility Wireless focuses on the business-to-business marketplace and supplies wireless connectivity solutions to organizations nationwide. The Company operates the largest one-way paging and advanced two-way paging networks in the United States. USA Mobility Wireless also offers mobile voice and data services through Sprint Nextel and T-Mobile, including BlackBerry® smartphones and GPS location applications. Its product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. For further information visit www.usamobility.com and www.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, continued growth of our Software business and demand for our Software products and services, our ability to develop additional software solutions for our customers, 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, competition from other software providers, 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 STATEMENTS OF INCOME (a)
(Unaudited and in thousands except share, per share amounts and ARPU)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the three months ended September 30, |
| | | 2013 | | 2012 |
| | | Wireless | | Software | | Total | | Wireless | | Software | | Total |
| Revenue: | |
| | | | | | |
| Paging service | | $ | 35,141 |
| | $ | — |
| | $ | 35,141 |
| | $ | 39,235 |
| | $ | — |
| | $ | 39,235 |
|
| Cellular | | 235 |
| | — |
| | 235 |
| | 314 |
| | — |
| | 314 |
|
| Software revenue and other (b) | | 1,526 |
| | 12,602 |
| | 14,128 |
| | 1,645 |
| | 13,676 |
| | 15,321 |
|
| Other | | 165 |
| | — |
| | 165 |
| | 246 |
| | — |
| | 246 |
|
| Total revenue | | 37,067 |
| | 12,602 |
| | 49,669 |
| | 41,440 |
| | 13,676 |
| | 55,116 |
|
| Operating expenses: | | | | | | | | | | | | |
| Cost of revenue (b) | | 220 |
| | 5,139 |
| | 5,359 |
| | 187 |
| | 4,918 |
| | 5,105 |
|
| Service, rental and maintenance (b) | | 10,307 |
| | 2,245 |
| | 12,552 |
| | 11,239 |
| | 2,492 |
| | 13,731 |
|
| Selling and marketing | | 2,350 |
| | 3,885 |
| | 6,235 |
| | 2,774 |
| | 3,269 |
| | 6,043 |
|
| General and administrative | | 10,371 |
| | 1,760 |
| | 12,131 |
| | 10,935 |
| | 1,531 |
| | 12,466 |
|
| Severance and restructuring | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Depreciation, amortization and accretion | | 2,437 |
| | 1,421 |
| | 3,858 |
| | 2,944 |
| | 1,780 |
| | 4,724 |
|
| Total operating expenses | | 25,685 |
| | 14,450 |
| | 40,135 |
| | 28,079 |
| | 13,990 |
| | 42,069 |
|
| % of total revenue | | 69.3 | % | | 114.7 | % | | 80.8 | % | | 67.8 | % | | 102.3 | % | | 76.3 | % |
| Operating income (loss) | | 11,382 |
| | (1,848 | ) | | 9,534 |
| | 13,361 |
| | (314 | ) | | 13,047 |
|
| % of total revenue | | 30.7 | % | | (14.7 | )% | | 19.2 | % | | 32.2 | % | | (2.3 | )% | | 23.7 | % |
| Interest expense, net | | (65 | ) | | (3 | ) | | (68 | ) | | (64 | ) | | — |
| | (64 | ) |
| Other income (expense), net | | 89 |
| | (5 | ) | | 84 |
| | 68 |
| | (16 | ) | | 52 |
|
| Income (loss) before income tax (expense) benefit | | 11,406 |
| | (1,856 | ) | | 9,550 |
| | 13,365 |
| | (330 | ) | | 13,035 |
|
| Income tax (expense) benefit | | (4,442 | ) | | 654 |
| | (3,788 | ) | | (5,093 | ) | | 106 |
| | (4,987 | ) |
| Net income (loss) | | $ | 6,964 |
| | $ | (1,202 | ) | | $ | 5,762 |
| | $ | 8,272 |
| | $ | (224 | ) | | $ | 8,048 |
|
| Basic net income per common share | | | | | | $ | 0.27 |
| | | | | | $ | 0.37 |
|
| Diluted net income per common share | | | | | | $ | 0.26 |
| | | | | | $ | 0.36 |
|
| Basic weighted average common shares outstanding | | | | | | 21,629,289 |
| | | | | | 21,973,473 |
|
| Diluted weighted average common shares outstanding | | | | | | 21,919,238 |
| | | | | | 22,399,934 |
|
| Reconciliation of operating income (loss) to EBITDA (c): | | | | | | | | | | | | |
| Operating income (loss) | | $ | 11,382 |
| | $ | (1,848 | ) | | $ | 9,534 |
| | $ | 13,361 |
| | $ | (314 | ) | | $ | 13,047 |
|
| Add back: depreciation, amortization and accretion | | 2,437 |
| | 1,421 |
| | 3,858 |
| | 2,944 |
| | 1,780 |
| | 4,724 |
|
| EBITDA | | $ | 13,819 |
| | $ | (427 | ) | | $ | 13,392 |
| | $ | 16,305 |
| | $ | 1,466 |
| | $ | 17,771 |
|
| % of total revenue | | 37.3 | % | | (3.4 | )% | | 27.0 | % | | 39.3 | % | | 10.7 | % | | 32.2 | % |
| Key statistics: | | | | | | | | | | | | |
| Units in service | | 1,408 |
| | — |
| | 1,408 |
| | 1,546 |
| | — |
| | 1,546 |
|
| Average revenue per unit (ARPU) | | $ | 8.22 |
| | $ | — |
| | $ | 8.22 |
| | $ | 8.36 |
| | $ | — |
| | $ | 8.36 |
|
| Bookings | | $ | — |
| | $ | 17,302 |
| | $ | 17,302 |
| | $ | — |
| | $ | 15,670 |
| | $ | 15,670 |
|
| Backlog | | $ | — |
| | $ | 43,831 |
| | $ | 43,831 |
| | $ | — |
| | $ | 36,155 |
| | $ | 36,155 |
|
| |
| (a) | Slight variations in totals are due to rounding. |
| |
| (b) | Wireless results reflect eliminations for intercompany revenue and expenses. |
| |
| (c) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
(Unaudited and in thousands except share, per share amounts and ARPU)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the nine months ended September 30, |
| | | 2013 | | 2012 |
| | | Wireless | | Software | | Total | | Wireless | | Software | | Total |
| Revenue: | |
| | | | | | |
| Paging service | | $ | 108,256 |
| | $ | — |
| | $ | 108,256 |
| | $ | 121,658 |
| | $ | — |
| | $ | 121,658 |
|
| Cellular | | 593 |
| | — |
| | 593 |
| | 877 |
| | — |
| | 877 |
|
| Software revenue and other (b) | | 4,299 |
| | 41,450 |
| | 45,749 |
| | 5,101 |
| | 39,324 |
| | 44,425 |
|
| Other | | 469 |
| | — |
| | 469 |
| | 852 |
| | — |
| | 852 |
|
| Total revenue | | 113,617 |
| | 41,450 |
| | 155,067 |
| | 128,488 |
| | 39,324 |
| | 167,812 |
|
| Operating expenses: | | | | | | | | | | | | |
| Cost of revenue (b) | | 327 |
| | 15,700 |
| | 16,027 |
| | 516 |
| | 14,621 |
| | 15,137 |
|
| Service, rental and maintenance (b) | | 31,674 |
| | 6,732 |
| | 38,406 |
| | 34,737 |
| | 7,189 |
| | 41,926 |
|
| Selling and marketing | | 7,389 |
| | 11,409 |
| | 18,798 |
| | 8,794 |
| | 8,821 |
| | 17,615 |
|
| General and administrative | | 31,753 |
| | 5,415 |
| | 37,168 |
| | 33,869 |
| | 4,260 |
| | 38,129 |
|
| Severance and restructuring | | 2 |
| | — |
| | 2 |
| | 9 |
| | 37 |
| | 46 |
|
| Depreciation, amortization and accretion | | 7,213 |
| | 4,274 |
| | 11,487 |
| | 8,613 |
| | 5,232 |
| | 13,845 |
|
| Total operating expenses | | 78,358 |
| | 43,530 |
| | 121,888 |
| | 86,538 |
| | 40,160 |
| | 126,698 |
|
| % of total revenue | | 69.0 | % | | 105.0 | % | | 78.6 | % | | 67.4 | % | | 102.1 | % | | 75.5 | % |
| Operating income (loss) | | 35,259 |
| | (2,080 | ) | | 33,179 |
| | 41,950 |
| | (836 | ) | | 41,114 |
|
| % of total revenue | | 31.0 | % | | (5.0 | )% | | 21.4 | % | | 32.6 | % | | (2.1 | )% | | 24.5 | % |
| Interest expense, net | | (192 | ) | | (4 | ) | | (196 | ) | | (318 | ) | | — |
| | (318 | ) |
| Other income (expense), net | | 96 |
| | (6 | ) | | 90 |
| | 461 |
| | (35 | ) | | 426 |
|
| Income (loss) before income tax (expense) benefit | | 35,163 |
| | (2,090 | ) | | 33,073 |
| | 42,093 |
| | (871 | ) | | 41,222 |
|
| Income tax (expense) benefit | | (14,306 | ) | | 748 |
| | (13,558 | ) | | (16,584 | ) | | 319 |
| | (16,265 | ) |
| Net income (loss) | | $ | 20,857 |
| | $ | (1,342 | ) | | $ | 19,515 |
| | $ | 25,509 |
| | $ | (552 | ) | | $ | 24,957 |
|
| Basic net income per common share | | | | | | $ | 0.90 |
| | | | | | $ | 1.13 |
|
| Diluted net income per common share | | | | | | $ | 0.89 |
| | | | | | $ | 1.11 |
|
| Basic weighted average common shares outstanding | | | | | | 21,653,692 |
| | | | | | 22,069,785 |
|
| Diluted weighted average common shares outstanding | | | | | | 21,916,063 |
| | | | | | 22,534,127 |
|
| Reconciliation of operating income (loss) to EBITDA (c): | | | | | | | | | | | | |
| Operating income (loss) | | $ | 35,259 |
| | $ | (2,080 | ) | | $ | 33,179 |
| | $ | 41,950 |
| | $ | (836 | ) | | $ | 41,114 |
|
| Add back: depreciation, amortization and accretion | | 7,213 |
| | 4,274 |
| | 11,487 |
| | 8,613 |
| | 5,232 |
| | 13,845 |
|
| EBITDA | | $ | 42,472 |
| | $ | 2,194 |
| | $ | 44,666 |
| | $ | 50,563 |
| | $ | 4,396 |
| | $ | 54,959 |
|
| % of total revenue | | 37.4 | % | | 5.3 | % | | 28.8 | % | | 39.4 | % | | 11.2 | % | | 32.8 | % |
| Key statistics: | | | | | | | | | | | | |
| Units in service | | 1,408 |
| | — |
| | 1,408 |
| | 1,546 |
| | — |
| | 1,546 |
|
| Average revenue per unit (ARPU) | | $ | 8.23 |
| | $ | — |
| | $ | 8.23 |
| | $ | 8.41 |
| | $ | — |
| | $ | 8.41 |
|
| Bookings | | $ | — |
| | $ | 47,181 |
| | $ | 47,181 |
| | $ | — |
| | $ | 43,173 |
| | $ | 43,173 |
|
| Backlog | | $ | — |
| | $ | 43,831 |
| | $ | 43,831 |
| | $ | — |
| | $ | 36,155 |
| | $ | 36,155 |
|
| |
| (a) | Slight variations in totals are due to rounding. |
| |
| (b) | Wireless results reflect eliminations for intercompany revenue and expenses. |
| |
| (c) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(In thousands)
|
| | | | | | | | |
| | | 9/30/2013 | | 12/31/2012 |
| | | (Unaudited) | | |
| Assets | |
| | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 82,982 |
| | $ | 61,046 |
|
| Accounts receivable, net | | 17,114 |
| | 21,580 |
|
| Prepaid expenses and other | | 6,156 |
| | 5,836 |
|
| Inventory | | 2,544 |
| | 3,257 |
|
| Escrow receivables | | — |
| | 275 |
|
| Deferred income tax assets, net | | 3,817 |
| | 3,915 |
|
| Total current assets | | 112,613 |
| | 95,909 |
|
| Property and equipment, net | | 21,247 |
| | 20,809 |
|
| Goodwill | | 133,031 |
| | 133,031 |
|
| Other intangible assets, net | | 26,584 |
| | 30,333 |
|
| Deferred income tax assets, net | | 29,765 |
| | 41,239 |
|
| Other assets | | 1,123 |
| | 1,306 |
|
| Total assets | | $ | 324,363 |
| | $ | 322,627 |
|
| Liabilities and stockholders' equity | | | | |
| Current liabilities: | | | | |
| Accounts payable and accrued liabilities | | $ | 10,805 |
| | $ | 12,659 |
|
| Accrued compensation and benefits | | 11,863 |
| | 17,806 |
|
| Consideration payable | | — |
| | 275 |
|
| Deferred revenue | | 27,966 |
| | 29,986 |
|
| Total current liabilities | | 50,634 |
| | 60,726 |
|
| Deferred revenue | | 421 |
| | 693 |
|
| Other long-term liabilities | | 9,469 |
| | 9,789 |
|
| Total liabilities | | 60,524 |
| | 71,208 |
|
| Commitments and contingencies | | | | |
| Stockholders' equity: | | | | |
| Preferred stock | | — |
| | — |
|
| Common stock | | 2 |
| | 2 |
|
| Additional paid-in capital | | 126,432 |
| | 125,212 |
|
| Retained earnings | | 137,405 |
| | 126,205 |
|
| Total stockholders' equity | | 263,839 |
| | 251,419 |
|
| Total liabilities and stockholders' equity | $ | 324,363 |
| | $ | 322,627 |
|
| |
| (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 |
| | | 9/30/2013 | | 9/30/2012 |
| Cash flows from operating activities: | |
| | |
| Net income | | $ | 19,515 |
| | $ | 24,957 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
| Depreciation, amortization and accretion | | 11,487 |
| | 13,845 |
|
| Amortization of deferred financing costs | | 194 |
| | 194 |
|
| Deferred income tax expense | | 12,226 |
| | 15,239 |
|
| Amortization of stock based compensation | | 2,200 |
| | 902 |
|
| Provisions for doubtful accounts, service credits and other | | 1,337 |
| | 1,239 |
|
| Adjustments of non-cash transaction taxes | | (354 | ) | | (366 | ) |
| Loss/(Gain) on disposals of property and equipment | | 172 |
| | (159 | ) |
| Changes in assets and liabilities: | | | | |
| Accounts receivable | | 3,129 |
| | (2,062 | ) |
| Prepaid expenses and other assets | | (285 | ) | | (531 | ) |
| Accounts payable, accrued liabilities and accrued compensation and benefits | | (8,025 | ) | | (1,788 | ) |
| Deferred revenue | | (2,292 | ) | | 1,235 |
|
| Net cash provided by operating activities | | 39,304 |
| | 52,705 |
|
| Cash flows from investing activities: | | | | |
| Purchases of property and equipment | | (7,772 | ) | | (7,135 | ) |
| Proceeds from disposals of property and equipment | | 10 |
| | 332 |
|
| Acquisitions, net of cash acquired | | — |
| | (3,000 | ) |
| Net cash used in investing activities | | (7,762 | ) | | (9,803 | ) |
| Cash flows from financing activities: | | | | |
| Repayment of debt | | — |
| | (28,250 | ) |
| Cash dividends to stockholders | | (9,606 | ) | | (13,829 | ) |
| Purchase of common stock | | — |
| | (4,933 | ) |
| Net cash used in financing activities | | (9,606 | ) | | (47,012 | ) |
| Net increase/(decrease) in cash and cash equivalents | | 21,936 |
| | (4,110 | ) |
| Cash and cash equivalents, beginning of period | | 61,046 |
| | 53,655 |
|
| Cash and cash equivalents, end of period | | $ | 82,982 |
| | $ | 49,545 |
|
| Supplemental disclosure: | | | | |
| Interest paid | | $ | 9 |
| | $ | 285 |
|
| Income taxes paid | | $ | 926 |
| | $ | 1,376 |
|
| |
| (a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
(Unaudited and in thousands except share, per share amounts and ARPU)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the three months ended |
| | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 | | 12/31/2012 | | 9/30/2012 | | 6/30/2012 | | 3/31/2012 |
| Revenues: | |
| | | | | | | | | | | | |
| Paging service | | $ | 35,141 |
| | $ | 36,064 |
| | $ | 37,051 |
| | $ | 38,081 |
| | $ | 39,235 |
| | $ | 40,548 |
| | $ | 41,875 |
|
| Cellular | | 235 |
| | 163 |
| | 195 |
| | 275 |
| | 314 |
| | 286 |
| | 277 |
|
| Software revenue | | 14,128 |
| | 15,898 |
| | 15,723 |
| | 13,381 |
| | 15,321 |
| | 14,847 |
| | 14,257 |
|
| Other | | 165 |
| | 143 |
| | 161 |
| | 147 |
| | 246 |
| | 280 |
| | 326 |
|
| Total revenues | | 49,669 |
| | 52,268 |
| | 53,130 |
| | 51,884 |
| | 55,116 |
| | 55,961 |
| | 56,735 |
|
| Operating expenses: | | | | | | | | | | | | | | |
| Cost of revenue | | 5,359 |
| | 5,485 |
| | 5,183 |
| | 5,709 |
| | 5,105 |
| | 5,216 |
| | 4,816 |
|
| Service, rental and maintenance | | 12,552 |
| | 12,822 |
| | 13,032 |
| | 13,499 |
| | 13,731 |
| | 13,892 |
| | 14,303 |
|
| Selling and marketing | | 6,235 |
| | 6,347 |
| | 6,216 |
| | 6,030 |
| | 6,043 |
| | 5,919 |
| | 5,653 |
|
| General and administrative | | 12,131 |
| | 11,885 |
| | 13,152 |
| | 12,551 |
| | 12,466 |
| | 12,494 |
| | 13,169 |
|
| Severance and restructuring | | — |
| | 2 |
| | — |
| | 1,712 |
| | — |
| | 24 |
| | 22 |
|
| Depreciation, amortization and accretion | | 3,858 |
| | 3,822 |
| | 3,807 |
| | 4,387 |
| | 4,724 |
| | 4,606 |
| | 4,515 |
|
| Impairment | | — |
| | — |
| | — |
| | 3,382 |
| | — |
| | — |
| | — |
|
| Total operating expenses | | 40,135 |
| | 40,363 |
| | 41,390 |
| | 47,270 |
| | 42,069 |
| | 42,151 |
| | 42,478 |
|
| % of total revenues | | 80.8 | % | | 77.2 | % | | 77.9 | % | | 91.1 | % | | 76.3 | % | | 75.3 | % | | 74.9 | % |
| Operating income | | 9,534 |
| | 11,905 |
| | 11,740 |
| | 4,614 |
| | 13,047 |
| | 13,810 |
| | 14,257 |
|
| % of total revenues | | 19.2 | % | | 22.8 | % | | 22.1 | % | | 8.9 | % | | 23.7 | % | | 24.7 | % | | 25.1 | % |
| Interest expense, net | | (68 | ) | | (64 | ) | | (64 | ) | | (62 | ) | | (64 | ) | | (66 | ) | | (188 | ) |
| Other income (expense), net | | 84 |
| | (75 | ) | | 81 |
| | 289 |
| | 52 |
| | 436 |
| | (62 | ) |
| Income before income tax expense | | 9,550 |
| | 11,766 |
| | 11,757 |
| | 4,841 |
| | 13,035 |
| | 14,180 |
| | 14,007 |
|
| Income tax expense | | (3,788 | ) | | (4,938 | ) | | (4,832 | ) | | (2,814 | ) | | (4,987 | ) | | (5,733 | ) | | (5,545 | ) |
| Net income | | $ | 5,762 |
| | $ | 6,828 |
| | $ | 6,925 |
| | $ | 2,027 |
| | $ | 8,048 |
| | $ | 8,447 |
| | $ | 8,462 |
|
| Basic net income per common share | | $ | 0.27 |
| | $ | 0.32 |
| | $ | 0.32 |
| | $ | 0.09 |
| | $ | 0.37 |
| | $ | 0.38 |
| | $ | 0.38 |
|
| Diluted net income per common share | | $ | 0.26 |
| | $ | 0.31 |
| | $ | 0.32 |
| | $ | 0.09 |
| | $ | 0.36 |
| | $ | 0.37 |
| | $ | 0.37 |
|
| Basic weighted average common shares outstanding | | 21,629,289 | | 21,644,281 | | 21,688,153 | | 21,492,792 | | 21,973,473 | | 22,130,397 | | 22,106,543 |
| Diluted weighted average common shares outstanding | | 21,919,238 | | 21,827,149 | | 21,904,862 | | 21,991,673 | | 22,399,934 | | 22,613,517 | | 22,589,483 |
| Reconciliation of operating income to EBITDA (b): | | | | | | | | | | | | | | |
| Operating income | | $ | 9,534 |
| | $ | 11,905 |
| | $ | 11,740 |
| | $ | 4,614 |
| | $ | 13,047 |
| | $ | 13,810 |
| | $ | 14,257 |
|
| Add back: depreciation, amortization, accretion and impairment | | 3,858 |
| | 3,822 |
| | 3,807 |
| | 7,769 |
| | 4,724 |
| | 4,606 |
| | 4,515 |
|
| EBITDA | | $ | 13,392 |
| | $ | 15,727 |
| | $ | 15,547 |
| | $ | 12,383 |
| | $ | 17,771 |
| | $ | 18,416 |
| | $ | 18,772 |
|
| % of total revenues | | 27.0 | % | | 30.1 | % | | 29.3 | % | | 23.9 | % | | 32.2 | % | | 32.9 | % | | 33.1 | % |
| Key statistics: | | | | | | | | | | | | | | |
| Units in service | | 1,408 |
| | 1,445 |
| | 1,480 |
| | 1,515 |
| | 1,546 |
| | 1,583 |
| | 1,617 |
|
| Average revenue per unit (ARPU) | | $ | 8.22 |
| | $ | 8.22 |
| | $ | 8.25 |
| | $ | 8.29 |
| | $ | 8.36 |
| | $ | 8.45 |
| | $ | 8.50 |
|
| Bookings | | $ | 17,302 |
| | $ | 15,626 |
| | $ | 14,253 |
| | $ | 18,129 |
| | $ | 15,670 |
| | $ | 15,085 |
| | $ | 12,417 |
|
| Backlog | | $ | 43,831 |
| | $ | 39,576 |
| | $ | 40,183 |
| | $ | 40,626 |
| | $ | 36,155 |
| | $ | 34,391 |
| | $ | 32,688 |
|
| |
| (a) | Slight variations in totals are due to rounding. |
| |
| (b) | EBITDA or earnings before interest, taxes, depreciation, amortization, accretion and impairment is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONSOLIDATED OPERATING EXPENSES
SUPPLEMENTAL INFORMATION (a)
(Unaudited and in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the three months ended |
| | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 | | 12/31/2012 | | 9/30/2012 | | 6/30/2012 | | 3/31/2012 |
| Cost of revenue | |
| | | | | | | | | | | | |
| Payroll and related | | $ | 2,898 |
| | $ | 2,917 |
| | $ | 2,838 |
| | $ | 2,634 |
| | $ | 2,427 |
| | $ | 2,324 |
| | $ | 2,368 |
|
| Cost of sales | | 1,992 |
| | 2,133 |
| | 1,890 |
| | 2,500 |
| | 2,195 |
| | 2,434 |
| | 2,037 |
|
| Other | | 469 |
| | 435 |
| | 455 |
| | 575 |
| | 483 |
| | 458 |
| | 411 |
|
| Total cost of revenue | | 5,359 |
| | 5,485 |
| | 5,183 |
| | 5,709 |
| | 5,105 |
| | 5,216 |
| | 4,816 |
|
| Service, rental and maintenance | | | | | | | | | | | | | | |
| Site rent | | 4,142 |
| | 4,237 |
| | 4,235 |
| | 4,326 |
| | 4,326 |
| | 4,421 |
| | 4,791 |
|
| Telecommunications | | 1,832 |
| | 1,885 |
| | 1,889 |
| | 2,053 |
| | 2,257 |
| | 2,346 |
| | 2,312 |
|
| Payroll and related | | 5,053 |
| | 5,074 |
| | 5,203 |
| | 5,432 |
| | 5,309 |
| | 5,360 |
| | 5,529 |
|
| Stock based compensation | | 34 |
| | 10 |
| | 10 |
| | 7 |
| | 6 |
| | 6 |
| | 6 |
|
| Other | | 1,491 |
| | 1,616 |
| | 1,695 |
| | 1,681 |
| | 1,833 |
| | 1,759 |
| | 1,665 |
|
| Total service, rental and maintenance | | 12,552 |
| | 12,822 |
| | 13,032 |
| | 13,499 |
| | 13,731 |
| | 13,892 |
| | 14,303 |
|
| Selling and marketing | | | | | | | | | | | | | | |
| Payroll and related | | 3,702 |
| | 3,672 |
| | 3,594 |
| | 3,519 |
| | 3,504 |
| | 3,544 |
| | 3,559 |
|
| Commissions | | 1,310 |
| | 1,519 |
| | 1,387 |
| | 1,197 |
| | 1,335 |
| | 1,343 |
| | 1,253 |
|
| Stock based compensation | | 18 |
| | 17 |
| | 17 |
| | 19 |
| | 19 |
| | 18 |
| | 16 |
|
| Other | | 1,205 |
| | 1,139 |
| | 1,218 |
| | 1,295 |
| | 1,185 |
| | 1,014 |
| | 825 |
|
| Total selling and marketing | | 6,235 |
| | 6,347 |
| | 6,216 |
| | 6,030 |
| | 6,043 |
| | 5,919 |
| | 5,653 |
|
| General and administrative | | | | | | | | | | | | | | |
| Payroll and related | | 5,281 |
| | 5,662 |
| | 6,026 |
| | 6,423 |
| | 5,851 |
| | 5,972 |
| | 6,490 |
|
| Stock based compensation | | 894 |
| | 601 |
| | 599 |
| | 296 |
| | 435 |
| | (19 | ) | | 415 |
|
| Bad debt | | 274 |
| | 265 |
| | 275 |
| | 300 |
| | 275 |
| | 270 |
| | 234 |
|
| Facility rent | | 883 |
| | 839 |
| | 844 |
| | 889 |
| | 903 |
| | 868 |
| | 806 |
|
| Telecommunications | | 388 |
| | 343 |
| | 375 |
| | 379 |
| | 390 |
| | 443 |
| | 412 |
|
| Outside services | | 2,409 |
| | 2,111 |
| | 3,077 |
| | 2,377 |
| | 2,353 |
| | 2,458 |
| | 2,447 |
|
| Taxes, licenses and permits | | 1,106 |
| | 1,166 |
| | 1,233 |
| | 1,312 |
| | 1,249 |
| | 1,426 |
| | 1,501 |
|
| Other | | 896 |
| | 898 |
| | 723 |
| | 575 |
| | 1,010 |
| | 1,076 |
| | 864 |
|
| Total general and administrative | | 12,131 |
| | 11,885 |
| | 13,152 |
| | 12,551 |
| | 12,466 |
| | 12,494 |
| | 13,169 |
|
| Severance and restructuring | | — |
| | 2 |
| | — |
| | 1,712 |
| | — |
| | 24 |
| | 22 |
|
| Depreciation, amortization and accretion | | 3,858 |
| | 3,822 |
| | 3,807 |
| | 4,387 |
| | 4,724 |
| | 4,606 |
| | 4,515 |
|
| Impairment | | — |
| | — |
| | — |
| | 3,382 |
| | — |
| | — |
| | — |
|
| Operating expenses | | $ | 40,135 |
| | $ | 40,363 |
| | $ | 41,390 |
| | $ | 47,270 |
| | $ | 42,069 |
| | $ | 42,151 |
| | $ | 42,478 |
|
| Capital expenditures | | $ | 2,504 |
| | $ | 2,927 |
| | $ | 2,341 |
| | $ | 2,854 |
| | $ | 2,696 |
| | $ | 2,888 |
| | $ | 1,551 |
|
| |
| (a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
UNITS IN SERVICE ACTIVITY (a)
(Unaudited and in thousands)
|
| | | | | | | | | | | | | | | | | | | | | |
| | | For the three months ended |
| | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 | | 12/31/2012 | | 9/30/2012 | | 6/30/2012 | | 3/31/2012 |
| Units in service | | | | | | | | | | | | | | |
| Beginning units in service | |
| | | | | | | | | | | | |
| Direct one-way | | 1,307 |
| | 1,324 |
| | 1,346 |
| | 1,366 |
| | 1,395 |
| | 1,423 |
| | 1,465 |
|
| Direct two-way | | 73 |
| | 73 |
| | 75 |
| | 79 |
| | 82 |
| | 85 |
| | 90 |
|
| Total direct | | 1,380 |
| | 1,397 |
| | 1,421 |
| | 1,445 |
| | 1,477 |
| | 1,508 |
| | 1,555 |
|
| Indirect one-way | | 36 |
| | 38 |
| | 48 |
| | 55 |
| | 58 |
| | 60 |
| | 63 |
|
| Indirect two-way | | 29 |
| | 45 |
| | 46 |
| | 46 |
| | 48 |
| | 49 |
| | 50 |
|
| Total indirect | | 65 |
| | 83 |
| | 94 |
| | 101 |
| | 106 |
| | 109 |
| | 113 |
|
| Total beginning units in service | | 1,445 |
| | 1,480 |
| | 1,515 |
| | 1,546 |
| | 1,583 |
| | 1,617 |
| | 1,668 |
|
| Gross placements | | | | | | | | | | | | | | |
| Direct one-way | | 40 |
| | 49 |
| | 39 |
| | 46 |
| | 45 |
| | 49 |
| | 41 |
|
| Direct two-way | | 3 |
| | 5 |
| | 3 |
| | 2 |
| | 3 |
| | 4 |
| | 3 |
|
| Total direct | | 43 |
| | 54 |
| | 42 |
| | 48 |
| | 48 |
| | 53 |
| | 44 |
|
| Indirect one-way | | 1 |
| | 1 |
| | 1 |
| | 2 |
| | 1 |
| | 2 |
| | 1 |
|
| Indirect two-way | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total indirect | | 1 |
| | 1 |
| | 1 |
| | 2 |
| | 1 |
| | 2 |
| | 1 |
|
| Total gross placements | | 44 |
| | 55 |
| | 43 |
| | 50 |
| | 49 |
| | 55 |
| | 45 |
|
| Gross disconnects | | | | | | | | | | | | | | |
| Direct one-way | | (72 | ) | | (66 | ) | | (61 | ) | | (66 | ) | | (74 | ) | | (77 | ) | | (83 | ) |
| Direct two-way | | (6 | ) | | (5 | ) | | (5 | ) | | (6 | ) | | (6 | ) | | (7 | ) | | (8 | ) |
| Total direct | | (78 | ) | | (71 | ) | | (66 | ) | | (72 | ) | | (80 | ) | | (84 | ) | | (91 | ) |
| Indirect one-way | | (2 | ) | | (3 | ) | | (11 | ) | | (9 | ) | | (4 | ) | | (4 | ) | | (4 | ) |
| Indirect two-way | | (1 | ) | | (16 | ) | | (1 | ) | | — |
| | (2 | ) | | (1 | ) | | (1 | ) |
| Total indirect | | (3 | ) | | (19 | ) | | (12 | ) | | (9 | ) | | (6 | ) | | (5 | ) | | (5 | ) |
| Total gross disconnects | | (81 | ) | | (90 | ) | | (78 | ) | | (81 | ) | | (86 | ) | | (89 | ) | | (96 | ) |
| Net loss | | | | | | | | | | | | | | |
| Direct one-way | | (32 | ) | | (17 | ) | | (22 | ) | | (20 | ) | | (29 | ) | | (28 | ) | | (42 | ) |
| Direct two-way | | (3 | ) | | — |
| | (2 | ) | | (4 | ) | | (3 | ) | | (3 | ) | | (5 | ) |
| Total direct | | (35 | ) | | (17 | ) | | (24 | ) | | (24 | ) | | (32 | ) | | (31 | ) | | (47 | ) |
| Indirect one-way | | (1 | ) | | (2 | ) | | (10 | ) | | (7 | ) | | (3 | ) | | (2 | ) | | (3 | ) |
| Indirect two-way | | (1 | ) | | (16 | ) | | (1 | ) | | — |
| | (2 | ) | | (1 | ) | | (1 | ) |
| Total indirect | | (2 | ) | | (18 | ) | | (11 | ) | | (7 | ) | | (5 | ) | | (3 | ) | | (4 | ) |
| Total net change | | (37 | ) | | (35 | ) | | (35 | ) | | (31 | ) | | (37 | ) | | (34 | ) | | (51 | ) |
| Ending units in service | | | | | | | | | | | | | | |
| Direct one-way | | 1,275 |
| | 1,307 |
| | 1,324 |
| | 1,346 |
| | 1,366 |
| | 1,395 |
| | 1,423 |
|
| Direct two-way | | 70 |
| | 73 |
| | 73 |
| | 75 |
| | 79 |
| | 82 |
| | 85 |
|
| Total direct | | 1,345 |
| | 1,380 |
| | 1,397 |
| | 1,421 |
| | 1,445 |
| | 1,477 |
| | 1,508 |
|
| Indirect one-way | | 35 |
| | 36 |
| | 38 |
| | 48 |
| | 55 |
| | 58 |
| | 60 |
|
| Indirect two-way | | 28 |
| | 29 |
| | 45 |
| | 46 |
| | 46 |
| | 48 |
| | 49 |
|
| Total indirect | | 63 |
| | 65 |
| | 83 |
| | 94 |
| | 101 |
| | 106 |
| | 109 |
|
| Total ending units in service | | 1,408 |
| | 1,445 |
| | 1,480 |
| | 1,515 |
| | 1,546 |
| | 1,583 |
| | 1,617 |
|
| |
| (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 |
| | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 | | 12/31/2012 | | 9/30/2012 | | 6/30/2012 | | 3/31/2012 |
| ARPU | |
| | | | | | | | | | | | |
| Direct one-way | | $ | 7.64 |
| | $ | 7.67 |
| | $ | 7.73 |
| | $ | 7.78 |
| | $ | 7.84 |
| | $ | 7.89 |
| | $ | 7.91 |
|
| Direct two-way | | 19.93 |
| | 19.95 |
| | 20.41 |
| | 20.52 |
| | 20.55 |
| | 20.88 |
| | 21.08 |
|
| Total direct | | 8.29 |
| | 8.33 |
| | 8.40 |
| | 8.47 |
| | 8.54 |
| | 8.62 |
| | 8.67 |
|
| Indirect one-way | | 8.90 |
| | 8.97 |
| | 8.22 |
| | 7.51 |
| | 7.25 |
| | 7.48 |
| | 7.61 |
|
| Indirect two-way | | 3.97 |
| | 3.89 |
| | 3.76 |
| | 3.87 |
| | 4.08 |
| | 4.19 |
| | 4.33 |
|
| Total indirect | | 6.57 |
| | 6.31 |
| | 5.85 |
| | 5.74 |
| | 5.77 |
| | 5.97 |
| | 6.14 |
|
| Total one-way | | 7.68 |
| | 7.71 |
| | 7.74 |
| | 7.77 |
| | 7.82 |
| | 7.88 |
| | 7.90 |
|
| Total two-way | | 15.20 |
| | 14.40 |
| | 13.96 |
| | 14.16 |
| | 14.36 |
| | 14.69 |
| | 15.00 |
|
| Total paging ARPU | | $ | 8.22 |
| | $ | 8.22 |
| | $ | 8.25 |
| | $ | 8.29 |
| | $ | 8.36 |
| | $ | 8.45 |
| | $ | 8.50 |
|
| Gross disconnect rate (b) | | | | | | | | | | | | | | |
| Direct one-way | | (5.6 | )% | | (5.0 | )% | | (4.6 | )% | | (4.8 | )% | | (5.3 | )% | | (5.4 | )% | | (5.7 | )% |
| Direct two-way | | (7.9 | )% | | (6.7 | )% | | (6.6 | )% | | (7.8 | )% | | (7.7 | )% | | (8.5 | )% | | (8.3 | )% |
| Total direct | | (5.7 | )% | | (5.1 | )% | | (4.7 | )% | | (5.0 | )% | | (5.5 | )% | | (5.6 | )% | | (5.8 | )% |
| Indirect one-way | | (6.3 | )% | | (7.4 | )% | | (23.6 | )% | | (16.1 | )% | | (7.6 | )% | | (6.6 | )% | | (7.0 | )% |
| Indirect two-way | | (4.8 | )% | | (34.0 | )% | | (1.6 | )% | | (1.6 | )% | | (3.1 | )% | | (1.8 | )% | | (1.7 | )% |
| Total indirect | | (5.6 | )% | | (22.3 | )% | | (12.5 | )% | | (9.3 | )% | | (5.5 | )% | | (4.4 | )% | | (4.7 | )% |
| Total one-way | | (5.6 | )% | | (5.1 | )% | | (5.2 | )% | | (5.3 | )% | | (5.4 | )% | | (5.4 | )% | | (5.8 | )% |
| Total two-way | | (7.0 | )% | | (17.3 | )% | | (4.7 | )% | | (5.4 | )% | | (6.0 | )% | | (6.0 | )% | | (5.9 | )% |
| Total paging gross disconnect rate | | (5.7 | )% | | (6.1 | )% | | (5.2 | )% | | (5.3 | )% | | (5.5 | )% | | (5.5 | )% | | (5.8 | )% |
| Net loss rate (c) | | | | | | | | | | | | | | |
| Direct one-way | | (2.5 | )% | | (1.3 | )% | | (1.7 | )% | | (1.5 | )% | | (2.1 | )% | | (1.9 | )% | | (2.9 | )% |
| Direct two-way | | (3.6 | )% | | (0.4 | )% | | (1.9 | )% | | (4.9 | )% | | (4.0 | )% | | (3.9 | )% | | (4.9 | )% |
| Total direct | | (2.5 | )% | | (1.3 | )% | | (1.7 | )% | | (1.7 | )% | | (2.2 | )% | | (2.0 | )% | | (3.0 | )% |
| Indirect one-way | | (3.3 | )% | | (4.7 | )% | | (21.8 | )% | | (13.2 | )% | | (5.6 | )% | | (4.9 | )% | | (5.4 | )% |
| Indirect two-way | | (4.1 | )% | | (33.7 | )% | | (1.3 | )% | | (1.3 | )% | | (2.5 | )% | | (1.2 | )% | | (0.9 | )% |
| Total indirect | | (3.6 | )% | | (21.0 | )% | | (11.5 | )% | | (7.6 | )% | | (4.2 | )% | | (3.2 | )% | | (3.4 | )% |
| Total one-way | | (2.5 | )% | | (1.4 | )% | | (2.4 | )% | | (1.9 | )% | | (2.2 | )% | | (2.0 | )% | | (3.0 | )% |
| Total two-way | | (3.8 | )% | | (13.3 | )% | | (1.6 | )% | | (3.5 | )% | | (3.5 | )% | | (2.9 | )% | | (3.5 | )% |
| Total paging net loss rate | | (2.6 | )% | | (2.4 | )% | | (2.3 | )% | | (2.0 | )% | | (2.3 | )% | | (2.1 | )% | | (3.0 | )% |
| |
| (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 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 |
| | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 | | 12/31/2012 | | 9/30/2012 | | 6/30/2012 | | 3/31/2012 |
| Gross placement rate (b) | |
| | | | | | | | | | | | |
| Healthcare | | 3.3 | % | | 4.5 | % | | 3.4 | % | | 3.9 | % | | 3.7 | % | | 4.3 | % | | 3.3 | % |
| Government | | 1.7 | % | | 2.3 | % | | 1.6 | % | | 1.5 | % | | 2.5 | % | | 1.8 | % | | 1.3 | % |
| Large enterprise | | 4.3 | % | | 2.4 | % | | 2.1 | % | | 2.3 | % | | 2.0 | % | | 1.9 | % | | 2.4 | % |
| Other | | 2.0 | % | | 1.5 | % | | 1.8 | % | | 1.9 | % | | 2.1 | % | | 2.0 | % | | 2.2 | % |
| Total direct | | 3.1 | % | | 3.8 | % | | 3.0 | % | | 3.3 | % | | 3.2 | % | | 3.5 | % | | 2.8 | % |
| Total indirect | | 1.9 | % | | 1.4 | % | | 1.0 | % | | 1.7 | % | | 1.3 | % | | 1.2 | % | | 1.3 | % |
| Total | | 3.1 | % | | 3.7 | % | | 2.9 | % | | 3.2 | % | | 3.1 | % | | 3.4 | % | | 2.7 | % |
| Gross disconnect rate (b) | | | | | | | | | | | | | | |
| Healthcare | | (5.2 | )% | | (4.4 | )% | | (3.9 | )% | | (4.4 | )% | | (4.5 | )% | | (4.5 | )% | | (4.7 | )% |
| Government | | (7.9 | )% | | (7.1 | )% | | (5.9 | )% | | (6.7 | )% | | (6.8 | )% | | (7.0 | )% | | (7.7 | )% |
| Large enterprise | | (6.0 | )% | | (6.7 | )% | | (7.0 | )% | | (5.7 | )% | | (7.3 | )% | | (8.0 | )% | | (7.7 | )% |
| Other | | (6.5 | )% | | (7.4 | )% | | (7.3 | )% | | (7.0 | )% | | (8.1 | )% | | (8.7 | )% | | (9.2 | )% |
| Total direct | | (5.7 | )% | | (5.1 | )% | | (4.7 | )% | | (5.0 | )% | | (5.5 | )% | | (5.6 | )% | | (5.8 | )% |
| Total indirect | | (5.6 | )% | | (22.3 | )% | | (12.5 | )% | | (9.3 | )% | | (5.5 | )% | | (4.4 | )% | | (4.7 | )% |
| Total | | (5.7 | )% | | (6.1 | )% | | (5.2 | )% | | (5.3 | )% | | (5.5 | )% | | (5.5 | )% | | (5.8 | )% |
| Net loss rate (b) | | | | | | | | | | | | | | |
| Healthcare | | (1.9 | )% | | — | % | | (0.5 | )% | | (0.4 | )% | | (0.9 | )% | | (0.2 | )% | | (1.4 | )% |
| Government | | (6.3 | )% | | (4.6 | )% | | (4.3 | )% | | (5.2 | )% | | (4.3 | )% | | (5.2 | )% | | (6.4 | )% |
| Large enterprise | | (1.6 | )% | | (4.2 | )% | | (4.9 | )% | | (3.4 | )% | | (5.3 | )% | | (6.1 | )% | | (5.3 | )% |
| Other | | (4.5 | )% | | (5.9 | )% | | (5.5 | )% | | (5.1 | )% | | (5.9 | )% | | (6.8 | )% | | (7.1 | )% |
| Total direct | | (2.5 | )% | | (1.3 | )% | | (1.7 | )% | | (1.7 | )% | | (2.2 | )% | | (2.0 | )% | | (3.0 | )% |
| Total indirect | | (3.6 | )% | | (21.0 | )% | | (11.5 | )% | | (7.6 | )% | | (4.2 | )% | | (3.2 | )% | | (3.4 | )% |
| Total | | (2.6 | )% | | (2.4 | )% | | (2.3 | )% | | (2.0 | )% | | (2.3 | )% | | (2.1 | )% | | (3.0 | )% |
| End of period units in service % of total (b) | | | | | | | | | | | | | | |
| Healthcare | | 71.4 | % | | 70.9 | % | | 68.4 | % | | 67.1 | % | | 65.9 | % | | 64.9 | % | | 63.6 | % |
| Government | | 8.8 | % | | 9.1 | % | | 10.1 | % | | 10.3 | % | | 10.8 | % | | 11.1 | % | | 11.5 | % |
| Large enterprise | | 8.2 | % | | 8.1 | % | | 8.3 | % | | 8.5 | % | | 8.6 | % | | 8.9 | % | | 9.3 | % |
| Other | | 7.1 | % | | 7.3 | % | | 7.6 | % | | 7.9 | % | | 8.1 | % | | 8.4 | % | | 8.8 | % |
| Total direct | | 95.5 | % | | 95.4 | % | | 94.4 | % | | 93.8 | % | | 93.4 | % | | 93.3 | % | | 93.2 | % |
| Total indirect | | 4.5 | % | | 4.6 | % | | 5.6 | % | | 6.2 | % | | 6.6 | % | | 6.7 | % | | 6.8 | % |
| 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 |
| | | 9/30/2013 | | 6/30/2013 | | 3/31/2013 | | 12/31/2012 | | 9/30/2012 | | 6/30/2012 | | 3/31/2012 |
| Account size ending units in service (000's) | |
| | | | | | | | | | | | |
| 1 to 3 units | | 45 |
| | 47 |
| | 49 |
| | 52 |
| | 55 |
| | 58 |
| | 61 |
|
| 4 to 10 units | | 26 |
| | 28 |
| | 29 |
| | 31 |
| | 33 |
| | 35 |
| | 37 |
|
| 11 to 50 units | | 64 |
| | 67 |
| | 71 |
| | 75 |
| | 78 |
| | 82 |
| | 86 |
|
| 51 to 100 units | | 43 |
| | 45 |
| | 47 |
| | 49 |
| | 50 |
| | 52 |
| | 54 |
|
| 101 to 1,000 units | | 293 |
| | 305 |
| | 321 |
| | 334 |
| | 343 |
| | 356 |
| | 373 |
|
| >1,000 units | | 874 |
| | 888 |
| | 880 |
| | 880 |
| | 886 |
| | 894 |
| | 897 |
|
| Total | | 1,345 |
| | 1,380 |
| | 1,397 |
| | 1,421 |
| | 1,445 |
| | 1,477 |
| | 1,508 |
|
| End of period units in service % of total direct | | | | | | | | | | | | | | |
| 1 to 3 units | | 3.3 | % | | 3.4 | % | | 3.5 | % | | 3.6 | % | | 3.8 | % | | 3.9 | % | | 4.1 | % |
| 4 to 10 units | | 2.0 | % | | 2.0 | % | | 2.1 | % | | 2.2 | % | | 2.3 | % | | 2.3 | % | | 2.3 | % |
| 11 to 50 units | | 4.8 | % | | 4.8 | % | | 5.1 | % | | 5.3 | % | | 5.4 | % | | 5.6 | % | | 5.7 | % |
| 51 to 100 units | | 3.2 | % | | 3.2 | % | | 3.4 | % | | 3.5 | % | | 3.5 | % | | 3.5 | % | | 3.6 | % |
| 101 to 1,000 units | | 21.8 | % | | 22.1 | % | | 23.0 | % | | 23.5 | % | | 23.7 | % | | 24.1 | % | | 24.8 | % |
| >1,000 units | | 64.9 | % | | 64.5 | % | | 62.9 | % | | 61.9 | % | | 61.3 | % | | 60.6 | % | | 59.5 | % |
| Total | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
| Account size net loss rate | | | | | | | | | | | | | | |
| 1 to 3 units | | (4.6 | )% | | (5.1 | )% | | (4.8 | )% | | (5.5 | )% | | (5.3 | )% | | (5.7 | )% | | (6.2 | )% |
| 4 to 10 units | | (5.3 | )% | | (5.3 | )% | | (6.0 | )% | | (5.5 | )% | | (4.8 | )% | | (6.2 | )% | | (6.2 | )% |
| 11 to 50 units | | (3.9 | )% | | (6.4 | )% | | (4.8 | )% | | (4.6 | )% | | (4.8 | )% | | (4.1 | )% | | (7.1 | )% |
| 51 to 100 units | | (2.8 | )% | | (5.3 | )% | | (4.0 | )% | | (2.6 | )% | | (3.9 | )% | | (2.4 | )% | | (3.9 | )% |
| 101 to 1,000 units | | (4.0 | )% | | (5.0 | )% | | (3.9 | )% | | (2.6 | )% | | (3.8 | )% | | (4.7 | )% | | (1.7 | )% |
| >1,000 units | | (1.7 | )% | | 1.1 | % | | (0.2 | )% | | (0.6 | )% | | (1.0 | )% | | (0.3 | )% | | (2.7 | )% |
| Total | | (2.5 | )% | | (1.3 | )% | | (1.7 | )% | | (1.7 | )% | | (2.2 | )% | | (2.0 | )% | | (3.0 | )% |
| Account size ARPU | | | | | | | | | | | | | | |
| 1 to 3 units | | $ | 15.13 |
| | $ | 15.12 |
| | $ | 15.22 |
| | $ | 15.29 |
| | $ | 15.43 |
| | $ | 15.49 |
| | $ | 15.49 |
|
| 4 to 10 units | | 14.38 |
| | 14.29 |
| | 14.33 |
| | 14.39 |
| | 14.42 |
| | 14.40 |
| | 14.45 |
|
| 11 to 50 units | | 12.06 |
| | 11.96 |
| | 12.06 |
| | 12.04 |
| | 12.11 |
| | 12.24 |
| | 12.15 |
|
| 51 to 100 units | | 10.66 |
| | 10.42 |
| | 10.47 |
| | 10.47 |
| | 10.48 |
| | 10.35 |
| | 10.52 |
|
| 101 to 1,000 units | | 8.85 |
| | 8.84 |
| | 8.84 |
| | 8.94 |
| | 8.97 |
| | 9.01 |
| | 9.04 |
|
| >1,000 units | | 7.17 |
| | 7.19 |
| | 7.23 |
| | 7.24 |
| | 7.28 |
| | 7.34 |
| | 7.35 |
|
| Total | | $ | 8.29 |
| | $ | 8.33 |
| | $ | 8.40 |
| | $ | 8.47 |
| | $ | 8.54 |
| | $ | 8.62 |
| | $ | 8.67 |
|
| Cellular: | | | | | | | | | | | | | | |
| Number of activations | | 970 |
| | 799 |
| | 925 |
| | 1,041 |
| | 948 |
| | 1,052 |
| | 1,070 |
|
| Revenue from cellular services (000's) | | $ | 235 |
| | $ | 163 |
| | $ | 195 |
| | $ | 275 |
| | $ | 314 |
| | $ | 286 |
| | $ | 277 |
|
| |
| (a) | Slight variations in totals are due to rounding. |
