8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 28, 2009

USA Mobility, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-51027	16-1694797
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)
6677 Richmond Highway, Alexandria, Virginia		22306
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code:		(703) 660-6677

Not Applicable

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On October 28, 2009, USA Mobility, Inc. announced operating results for the third quarter of 2009. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated into this Item 2.02 by reference. The information in this Item 2.02 of this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

On October 28, 2009, the Company’s Board of Directors declared a regular quarterly cash distribution of $0.25 per share of common stock. The cash distribution will be paid on December

10, 2009 to stockholders of record on November 17, 2009. The Company expects the entire amount of the cash distribution to be paid as a return of capital.

The information in this Item 8.01 of this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibit.

(a) Financial statements of business acquired:

Not applicable.

(b) Pro forma financial information:

Not applicable.

(c) Exhibit:

Exhibit 99.1

Description of Exhibit — Press Release dated October 28, 2009 (furnished pursuant to Items 2.02 and 8.01; not “filed” for purposes of Section 18 of the Exchange Act)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	USA Mobility, Inc.
October 30, 2009	By:	/s/ Thomas L. Schilling
		Name:	Thomas L. Schilling
		Title:	Chief Operating Officer and Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	USA Mobility, Inc. Press Release dated October 28, 2009

EX-99.1

Exhibit 99.1

News Release

For Immediate Release	Contact:	Bob Lougee (703) 721-3080
Wednesday, October 28, 2009		bob.lougee@usamobility.com

USA Mobility Reports Third Quarter Operating Results;
Board Declares Quarterly Cash Distribution

Operating Expenses Significantly Reduced;
Cash Flow Margins Remain Near All-Time Highs

Alexandria, VA (October 28, 2009) — USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced operating results for the third quarter ended September 30, 2009.

In addition, the Company’s Board of Directors declared a regular quarterly cash distribution of $0.25 per share. The cash distribution will be paid on December 10, 2009 to stockholders of record on November 17, 2009. The Company expects the entire distribution to be paid as a return of capital.

Total revenue for the third quarter was $69.5 million, compared to $75.1 million in the second quarter and $88.4 million in the third quarter of 2008. Operating income in the third quarter was $15.0 million, compared to $14.5 million in the year-earlier quarter. EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) increased to $25.7 million from $25.5 million in the third quarter of 2008.

Net income for the third quarter was $9.2 million, or $0.40 per fully diluted share, compared to net income of $2.4 million, or $0.09 per fully diluted share, in the year-earlier quarter.

Third quarter results included:

• Operating expenses (excluding depreciation, amortization and accretion) totaled $43.8 million, compared to $51.2 million in the second quarter and $62.8 million in the third quarter of 2008.

• EBITDA margin (or EBITDA as a percentage of revenue) was 37.0 percent, compared to 31.9 percent in the second quarter and 28.9 percent in the year-earlier quarter.

• Total paging ARPU (average revenue per unit) was $8.89, compared to $8.96 in the second quarter and $8.69 in the third quarter of 2008.

• The quarterly rate of revenue erosion increased to 7.5 percent from 5.7 percent in the second quarter and 4.0 percent in the third quarter of 2008. The annual rate of revenue erosion was 21.3 percent, compared to 18.4 percent in the second quarter and 16.2 percent in the year-earlier quarter.

• Net unit loss in the third quarter was 152,000, compared to 158,000 in the second quarter and 174,000 in the third quarter of 2008. At September 30, 2009, total units in service were 2,297,000, compared to 2,449,000 at June 30, 2009.

• The quarterly rate of net unit loss was 6.2 percent, compared to 6.0 percent in the second quarter and 5.5 percent in the third quarter of 2008. The annual rate of subscriber loss was 23.5 percent, compared to 22.9 percent in the second quarter and 17.1 percent in the year-earlier quarter.

• Capital expenses were $1.8 million versus $4.4 million in the second quarter.

• The Company’s cash balance at September 30, 2009 was $95.7 million.

“We reported another solid performance in the third quarter despite a continued high rate of unit loss,” said Vincent D. Kelly, president and chief executive officer. “Operating results met or exceeded the majority of our targeted objectives and were consistent with our previously stated financial guidance. Cash flow margins remained high, operating expenses were reduced to their lowest level in many years, and we continued to provide cost effective and reliable wireless communications services to customers on a profitable basis.” Kelly said the slow economy and continuing high unemployment nationwide contributed to higher than expected subscriber cancellations. “Still,” he added, “we saw encouraging signs in our Healthcare segment – which now comprises more than 50 percent of our customer base – with the addition of numerous hospital and medical-related accounts.”

Kelly said the Company again returned capital to stockholders in the third quarter in the form of cash distributions, consistent with its goal of producing sufficient free cash flow to return capital to stockholders. “Generating $23.6 million in cash from operations in the quarter allowed us to pay a regular quarterly cash distribution of $0.25 per share on September 10, 2009, representing a return of capital to stockholders of approximately $5.7 million. With the third quarter distribution, we have returned $316.7 million to stockholders since 2005.”

The Company continued to reduce operating expenses during the third quarter through ongoing cost control measures. Thomas L. Schilling, chief operating officer and chief financial officer, said: “We made excellent progress in the third quarter reducing expenses throughout the organization. Moreover, we continued to reduce operating expenses faster than the rate of revenue erosion as expenses (excluding depreciation, amortization and accretion) declined 30.3 percent from the year-earlier quarter while revenue declined 21.3 percent. In addition, third quarter operating expenses as a percentage of revenue improved to 63.0 percent, the lowest level in many years.” Schilling said lower operating expenses also helped keep the Company’s cash flow margins near all-time

highs. However, he cautioned, “Our ability to sustain operating margins at these levels going forward will become increasingly difficult given current subscriber and revenue trends.”

Commenting on the Company’s financial expectations for the balance of the year, Schilling said, “Based on our performance through September 30^th, we are maintaining our financial guidance for 2009 of revenue between $286 million to $291 million, operating expenses (excluding depreciation, amortization and accretion) between $194 million to $197 million, and capital expenses between $16 million to $18 million.

* * * * * * * * *

USA Mobility plans to host a conference call for investors on its third quarter results at 10:00 a.m. Eastern Time on Thursday, October 29, 2009. The dial-in number for the call is 877-208-2391 (toll-free) or 913-312-9321 (toll). The pass code for the call is 5046918. A replay of the call will be available from 3:00 p.m. ET on October 29 until 11:59 p.m. on Thursday, November 12. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 5046918.

* * * * * * * * *

About USA Mobility

USA Mobility, Inc., headquartered in Alexandria, Virginia, is a comprehensive provider of reliable and affordable wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors. As a single-source provider, USA Mobility’s focus is on the business-to-business marketplace and supplying wireless connectivity solutions to a majority of the Fortune 1000 companies.  The Company operates the largest one-way paging and advanced two-way paging networks in the United States. In addition, USA Mobility offers mobile voice and data services through Sprint Nextel, including BlackBerry® smartphones and GPS location applications. The Company’s product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments.  USA Mobility also offers M2M (machine-to-machine) telemetry solutions for numerous applications that include asset tracking, utility meter reading and other remote device monitoring applications on a national scale.  For further information visit www.usamobility.com.               

Safe Harbor Statement under the Private Securities Litigation Reform Act: Statements contained herein or in prior press releases which are not historical fact, such as statements regarding USA Mobility’s future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause USA Mobility’s actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, declining demand for paging products and services, the ability to continue to reduce operating expenses, future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, government regulation, reliance upon third-party providers for certain equipment and services, as well as other risks described from time to time in periodic reports and registration statements filed with the Securities and Exchange Commission. Although USA Mobility believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. USA Mobility disclaims any intent or obligation to update any forward-looking statements.

USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)
(unaudited and in thousands, except share and per share amounts)

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09			9/30/09
Revenues:
Paging service	$	86,773		$	83,360		$	80,533		$	75,989		$	72,021		$	67,972		$	63,308
Cellular		1,859			1,547			1,494			993			991			775			980
Product sales		4,871			5,741			5,014			5,863			5,271			5,269			4,354
Other		1,255			1,427			1,316			1,413			1,408			1,129			856
Total revenues		94,758			92,075			88,357			84,258			79,691			75,145			69,498
Operating expenses:
Cost of products sold		1,081			1,408			1,291			1,812			1,669			1,421			1,593
Service, rental and maintenance		33,969			31,583			29,069			28,199			22,955			21,290			20,950
Selling and marketing		7,836			7,549			6,756			6,144			6,062			5,600			5,198
General and administrative		21,808			20,782			20,631			18,289			20,186			22,801			16,050
Severance and restructuring		145			153			5,063			(35	)		190			52			15
Depreciation, amortization and accretion		12,513			11,674			11,075			11,750			11,270			11,174			10,689
Goodwill impairment		188,170			—			—			—			—			—			—
Total operating expenses		265,522			73,149			73,885			66,159			62,332			62,338			54,495
% of total revenues		280.2	%		79.4	%		83.6	%		78.5	%		78.2	%		83.0	%		78.4	%
Operating (loss) income		(170,764	)		18,926			14,472			18,099			17,359			12,807			15,003
% of total revenues		-180.2	%		20.6	%		16.4	%		21.5	%		21.8	%		17.0	%		21.6	%
Interest income, net		578			672			471			79			26			28			16
Other income (expense), net		125			202			205			90			112			(42	)		185
(Loss) income before income tax expense (benefit)		(170,061	)		19,800			15,148			18,268			17,497			12,793			15,204
Income tax expense (benefit)		7,739			9,528			12,730			10,235			7,516			(31,953	)		6,003
Net (loss) income	$	(177,800	)	$	10,272		$	2,418		$	8,033		$	9,981		$	44,746		$	9,201
Basic net (loss) income per common share	$	(6.48	)	$	0.37		$	0.09		$	0.32		$	0.43		$	1.96		$	0.40
Diluted net (loss) income per common share	$	(6.48	)	$	0.37		$	0.09		$	0.32		$	0.43		$	1.93		$	0.40
Basic weighted average common shares outstanding		27,459,068			27,474,156			27,474,156			25,348,440			23,134,072			22,858,573			22,856,951
Diluted weighted average common shares outstanding		27,459,068			27,600,976			27,602,296			25,444,277			23,479,796			23,200,736			23,194,360
Reconciliation of operating (loss) income to EBITDA (b):
Operating (loss) income	$	(170,764	)	$	18,926		$	14,472		$	18,099		$	17,359		$	12,807		$	15,003
Add back: depreciation, amortization and accretion		12,513			11,674			11,075			11,750			11,270			11,174			10,689
Add back: goodwill impairment		188,170			—			—			—			—			—			—
EBITDA	$	29,919		$	30,600		$	25,547		$	29,849		$	28,629		$	23,981		$	25,692
% of total revenues		31.6	%		33.2	%		28.9	%		35.4	%		35.9	%		31.9	%		37.0	%

(a)	Slight variations in totals are due to rounding.
(b)	EBITDA or earnings before interest, taxes, depreciation, amortization, accretion and goodwill impairment is a non-GAAP measure and is presented for analytical purposes only.

USA MOBILITY, INC.
UNITS IN SERVICE ACTIVITY (a)
(unaudited and in thousands)

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09			9/30/09
Units in service
Beginning units in service
Direct one-way		2,854			2,732			2,614			2,491			2,349			2,198			2,079
Direct two-way		221			207			196			184			171			157			147
Total direct		3,075			2,939			2,810			2,675			2,520			2,355			2,226
Indirect one-way		312			285			261			226			196			161			139
Indirect two-way		98			109			105			101			99			91			84
Total indirect		410			394			366			327			295			252			223
Total beginning units in service		3,485			3,333			3,176			3,002			2,815			2,607			2,449
Gross placements
Direct one-way		77			90			76			61			67			74			64
Direct two-way		8			11			8			7			6			7			9
Total direct		85			101			84			68			73			81			73
Indirect one-way		17			22			12			8			8			9			7
Indirect two-way		16			7			7			6			4			2			1
Total indirect		33			29			19			14			12			11			8
Total gross placements		118			130			103			82			85			92			81
Gross disconnects
Direct one-way		(199	)		(209	)		(199	)		(202	)		(218	)		(193	)		(174	)
Direct two-way		(22	)		(21	)		(20	)		(20	)		(20	)		(17	)		(15	)
Total direct		(221	)		(230	)		(219	)		(222	)		(238	)		(210	)		(189	)
Indirect one-way		(44	)		(47	)		(47	)		(39	)		(43	)		(31	)		(30	)
Indirect two-way		(5	)		(10	)		(11	)		(8	)		(12	)		(9	)		(14	)
Total indirect		(49	)		(57	)		(58	)		(47	)		(55	)		(40	)		(44	)
Total gross disconnects		(270	)		(287	)		(277	)		(269	)		(293	)		(250	)		(233	)
Net gain (loss)
Direct one-way		(122	)		(119	)		(123	)		(142	)		(151	)		(119	)		(110	)
Direct two-way		(14	)		(10	)		(12	)		(12	)		(14	)		(10	)		(6	)
Total direct		(136	)		(129	)		(135	)		(154	)		(165	)		(129	)		(116	)
Indirect one-way		(27	)		(25	)		(35	)		(31	)		(35	)		(22	)		(23	)
Indirect two-way		11			(3	)		(4	)		(2	)		(8	)		(7	)		(13	)
Total indirect		(16	)		(28	)		(39	)		(33	)		(43	)		(29	)		(36	)
Total net change		(152	)		(157	)		(174	)		(187	)		(208	)		(158	)		(152	)
Ending units in service
Direct one-way		2,732			2,614			2,491			2,349			2,198			2,079			1,969
Direct two-way		207			196			184			171			157			147			141
Total direct		2,939			2,810			2,675			2,520			2,355			2,226			2,110
Indirect one-way		285			261			226			196			161			139			116
Indirect two-way		109			105			101			99			91			84			71
Total indirect		394			366			327			295			252			223			187
Total ending units in service		3,333			3,176			3,002			2,815			2,607			2,449			2,297

(a) Slight variations in totals are due to rounding.

USA MOBILITY, INC.
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(unaudited)

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09			9/30/09
ARPU
Direct one-way	$	7.83		$	7.85		$	8.08		$	8.09		$	8.11		$	8.18		$	8.08
Direct two-way		23.68			23.90			23.78			23.77			23.68			23.62			23.42
Total direct		8.95			8.97			9.16			9.16			9.15			9.21			9.10
Indirect one-way		4.10			4.57			4.79			5.12			7.05			7.43			7.51
Indirect two-way		7.52			7.08			5.35			4.53			4.58			5.19			5.49
Total indirect		4.97			5.28			4.96			4.93			6.19			6.60			6.74
Total one-way		7.47			7.54			7.79			7.85			8.03			8.14			8.05
Total two-way		18.44			18.07			17.29			16.84			16.66			16.86			17.09
Total paging ARPU	$	8.49		$	8.54		$	8.69		$	8.71		$	8.86		$	8.96		$	8.89
Gross disconnect rate (b)
Direct one-way		-7.0	%		-7.6	%		-7.6	%		-8.1	%		-9.3	%		-8.8	%		-8.4	%
Direct two-way		-10.2	%		-10.4	%		-10.2	%		-10.6	%		-11.8	%		-11.0	%		-10.2	%
Total direct		-7.2	%		-7.8	%		-7.8	%		-8.3	%		-9.5	%		-8.9	%		-8.5	%
Indirect one-way		-13.9	%		-16.4	%		-17.9	%		-17.3	%		-22.0	%		-19.4	%		-21.9	%
Indirect two-way		-5.3	%		-8.8	%		-10.3	%		-7.7	%		-11.6	%		-9.1	%		-16.4	%
Total indirect		-11.8	%		-14.3	%		-15.7	%		-14.3	%		-18.5	%		-15.6	%		-19.8	%
Total one-way		-7.7	%		-8.5	%		-8.6	%		-8.9	%		-10.3	%		-9.5	%		-9.2	%
Total two-way		-8.7	%		-9.8	%		-10.2	%		-9.6	%		-11.7	%		-10.3	%		-12.5	%
Total paging gross disconnect rate		-7.7	%		-8.6	%		-8.7	%		-9.0	%		-10.4	%		-9.6	%		-9.5	%
Net gain / loss rate (c)
Direct one-way		-4.3	%		-4.3	%		-4.7	%		-5.7	%		-6.4	%		-5.4	%		-5.3	%
Direct two-way		-6.4	%		-5.2	%		-6.1	%		-6.8	%		-8.5	%		-6.4	%		-4.4	%
Total direct		-4.4	%		-4.4	%		-4.8	%		-5.8	%		-6.6	%		-5.5	%		-5.2	%
Indirect one-way		-8.5	%		-8.6	%		-13.2	%		-13.7	%		-17.8	%		-13.7	%		-16.9	%
Indirect two-way		11.0	%		-2.4	%		-4.1	%		-1.5	%		-8.2	%		-7.2	%		-14.9	%
Total indirect		-3.9	%		-6.9	%		-10.6	%		-10.0	%		-14.6	%		-11.3	%		-16.1	%
Total one-way		-4.7	%		-4.8	%		-5.5	%		-6.4	%		-7.3	%		-6.0	%		-6.0	%
Total two-way		-1.1	%		-4.2	%		-5.4	%		-4.9	%		-8.4	%		-6.7	%		-8.2	%
Total paging net gain / loss rate		-4.4	%		-4.7	%		-5.5	%		-6.2	%		-7.4	%		-6.0	%		-6.2	%

(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 gain / loss rate is net current period placements and disconnected units in service divided by prior period ending units in service.

USA MOBILITY, INC.
SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)
(unaudited)

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09			9/30/09
Gross placement rate (b)
Healthcare		3.3	%		4.8	%		3.8	%		3.0	%		3.7	%		4.4	%		3.8	%
Government		2.2	%		2.1	%		2.2	%		2.1	%		1.7	%		2.4	%		2.4	%
Large enterprise		2.4	%		2.3	%		2.2	%		2.1	%		2.4	%		2.2	%		3.3	%
Other		2.5	%		2.6	%		2.4	%		2.2	%		2.4	%		2.5	%		2.3	%
Total direct		2.8	%		3.4	%		3.0	%		2.5	%		2.9	%		3.4	%		3.3	%
Total indirect		8.0	%		7.4	%		5.1	%		4.4	%		3.9	%		4.3	%		3.7	%
Total		3.4	%		3.9	%		3.2	%		2.7	%		3.0	%		3.5	%		3.3	%
Gross disconnect rate (b)
Healthcare		-5.1	%		-5.8	%		-6.0	%		-6.4	%		-6.8	%		-6.2	%		-6.7	%
Government		-6.7	%		-8.5	%		-8.5	%		-9.3	%		-9.9	%		-10.7	%		-10.7	%
Large enterprise		-8.6	%		-9.2	%		-9.2	%		-8.9	%		-13.3	%		-13.0	%		-10.7	%
Other		-10.7	%		-10.5	%		-10.1	%		-11.4	%		-13.0	%		-12.4	%		-10.6	%
Total direct		-7.2	%		-7.8	%		-7.8	%		-8.3	%		-9.5	%		-8.9	%		-8.5	%
Total indirect		-11.8	%		-14.3	%		-15.7	%		-14.3	%		-18.5	%		-15.6	%		-19.8	%
Total		-7.7	%		-8.6	%		-8.7	%		-9.0	%		-10.4	%		-9.6	%		-9.5	%
Net loss rate (b)
Healthcare		-1.7	%		-0.9	%		-2.1	%		-3.4	%		-3.1	%		-1.8	%		-2.9	%
Government		-4.5	%		-6.4	%		-6.3	%		-7.1	%		-8.2	%		-8.4	%		-8.3	%
Large enterprise		-6.2	%		-6.9	%		-7.0	%		-6.8	%		-10.9	%		-10.9	%		-7.4	%
Other		-8.2	%		-7.9	%		-7.8	%		-9.2	%		-10.6	%		-10.0	%		-8.3	%
Total direct		-4.4	%		-4.4	%		-4.8	%		-5.8	%		-6.6	%		-5.5	%		-5.2	%
Total indirect		-3.9	%		-6.9	%		-10.6	%		-10.0	%		-14.6	%		-11.3	%		-16.1	%
Total		-4.4	%		-4.7	%		-5.5	%		-6.2	%		-7.4	%		-6.0	%		-6.2	%
End of period units in service % of total (b)
Healthcare		38.3	%		40.0	%		41.5	%		42.8	%		44.9	%		49.8	%		51.5	%
Government		17.9	%		17.7	%		17.6	%		17.4	%		17.2	%		15.6	%		15.3	%
Large enterprise		13.1	%		12.8	%		12.6	%		12.5	%		12.0	%		11.8	%		11.8	%
Other		18.9	%		18.0	%		17.4	%		16.8	%		16.2	%		13.7	%		13.2	%
Total direct		88.2	%		88.5	%		89.1	%		89.5	%		90.3	%		90.9	%		91.8	%
Total indirect		11.8	%		11.5	%		10.9	%		10.5	%		9.7	%		9.1	%		8.2	%
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.
SUPPLEMENTAL INFORMATION — DIRECT UNITS IN SERVICE AND CELLULAR ACTIVATIONS (a)
(unaudited)

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09			9/30/09
Account size ending units in service (000’s)
1 to 3 units		184			172			159			149			137			126			118
4 to 10 units		112			104			97			89			82			75			70
11 to 50 units		276			255			236			218			199			183			168
51 to 100 units		164			155			144			133			125			112			104
101 to 1,000 units		784			750			716			681			626			580			546
>1,000 units		1,419			1,374			1,323			1,250			1,186			1,150			1,104
Total		2,939			2,810			2,675			2,520			2,355			2,226			2,110
End of period units in service % of total direct
1 to 3 units		6.2	%		6.1	%		5.9	%		5.9	%		5.8	%		5.7	%		5.6	%
4 to 10 units		3.8	%		3.7	%		3.6	%		3.5	%		3.5	%		3.4	%		3.3	%
11 to 50 units		9.4	%		9.1	%		8.8	%		8.7	%		8.4	%		8.2	%		8.0	%
51 to 100 units		5.6	%		5.5	%		5.4	%		5.3	%		5.3	%		5.0	%		4.9	%
101 to 1,000 units		26.7	%		26.7	%		26.8	%		27.0	%		26.6	%		26.0	%		25.9	%
>1,000 units		48.3	%		48.9	%		49.5	%		49.6	%		50.4	%		51.7	%		52.3	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Account size net loss rate
1 to 3 units		-7.8	%		-6.9	%		-7.0	%		-6.9	%		-7.8	%		-7.9	%		-6.9	%
4 to 10 units		-6.5	%		-7.2	%		-6.7	%		-7.8	%		-8.8	%		-7.9	%		-6.7	%
11 to 50 units		-7.6	%		-7.4	%		-7.4	%		-7.6	%		-8.9	%		-8.2	%		-7.7	%
51 to 100 units		-6.9	%		-5.5	%		-7.5	%		-7.2	%		-6.2	%		-10.1	%		-7.6	%
101 to 1,000 units		-5.2	%		-4.3	%		-4.6	%		-4.9	%		-8.0	%		-7.4	%		-5.9	%
>1,000 units		-2.4	%		-3.2	%		-3.7	%		-5.5	%		-5.1	%		-3.1	%		-4.0	%
Total		-4.4	%		-4.4	%		-4.8	%		-5.8	%		-6.6	%		-5.5	%		-5.2	%
Account size ARPU
1 to 3 units	$	14.66		$	14.62		$	14.72		$	14.68		$	14.73		$	15.07		$	14.98
4 to 10 units		13.56			13.56			13.92			13.89			14.00			14.30			14.24
11 to 50 units		10.99			11.03			11.40			11.35			11.41			11.65			11.54
51 to 100 units		9.57			9.76			10.36			10.25			10.30			10.13			10.06
101 to 1,000 units		8.23			8.45			8.91			8.98			8.94			9.04			8.89
>1,000 units		7.75			7.70			7.72			7.75			7.77			7.80			7.76
Total	$	8.95		$	8.97		$	9.16		$	9.16		$	9.15		$	9.21		$	9.10
Cellular revenue
Number of activations		4,509			3,970			3,779			2,287			2,389			2,207			2,633
Revenue from cellular services (000’s)	$	1,859		$	1,547		$	1,494		$	993		$	991		$	775		$	980

(a) Slight variations in totals are due to rounding.

USA MOBILITY, INC.
CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
(unaudited and in thousands)

	For the three months ended
	3/31/08		6/30/08		9/30/08		12/31/08			3/31/09		6/30/09		9/30/09
Cost of products sold	$	1,081	$	1,408	$	1,291	$	1,812		$	1,669	$	1,421	$	1,593
Service, rental and maintenance
Site rent		17,792		16,756		15,463		14,785			11,218		10,223		10,422
Telecommunications		6,204		5,503		5,072		5,307			4,485		4,284		3,945
Payroll and related		6,683		6,504		5,827		5,490			5,631		5,286		4,988
Stock based compensation		17		19		19		18			49		7		13
Other		3,273		2,801		2,688		2,599			1,572		1,490		1,582
Total service, rental and maintenance		33,969		31,583		29,069		28,199			22,955		21,290		20,950
Selling and marketing
Payroll and related		5,164		4,797		4,317		4,145			4,175		3,711		3,366
Commissions		1,724		2,037		1,742		1,213			1,201		1,422		1,328
Stock based compensation		39		50		49		60			109		26		26
Other		909		665		648		726			577		441		478
Total selling and marketing		7,836		7,549		6,756		6,144			6,062		5,600		5,198
General and administrative
Payroll and related		8,682		8,129		7,847		7,992			9,075		7,754		7,213
Stock based compensation		190		247		253		298			569		241		241
Bad debt		711		691		680		618			850		750		699
Facility rent		2,073		2,199		1,937		1,689			1,628		1,446		1,457
Telecommunications		1,048		983		936		834			771		721		720
Outside services		5,359		4,584		4,632		4,519			4,514		4,063		3,269
Taxes, licenses and permits		1,958		2,055		2,216		372			1,101		1,695		(680	)
Other		1,787		1,894		2,130		1,967			1,678		6,131		3,131
Total general and administrative		21,808		20,782		20,631		18,289			20,186		22,801		16,050
Severance and restructuring		145		153		5,063		(35	)		190		52		15
Depreciation, amortization and accretion		12,513		11,674		11,075		11,750			11,270		11,174		10,689
Goodwill impairment		188,170		—		—		—			—		—		—
Operating expenses	$	265,522	$	73,149	$	73,885	$	66,159		$	62,332	$	62,338	$	54,495
Capital expenditures	$	3,988	$	3,892	$	6,214	$	4,242		$	6,054	$	4,355	$	1,806

(a) Slight variations in totals are due to rounding.

USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(in thousands)

	12/31/08		9/30/09
			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	75,032	$	95,692
Accounts receivable, net		25,118		20,356
Tax receivables		—		4,411
Prepaid expenses and other		6,226		3,033
Deferred income tax assets, net		6,025		1,171
Total current assets		112,401		124,663
Property and equipment, net		57,867		44,123
Intangible assets, net		6,520		1,442
Deferred income tax assets, net		59,599		41,564
Other assets		4,973		3,228
Total assets	$	241,360	$	215,020
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities	$	40,983	$	32,586
Customer deposits		1,203		951
Deferred revenue		9,958		8,153
Total current liabilities		52,144		41,690
Other long-term liabilities		48,478		11,509
Total liabilities		100,622		53,199
Stockholders’ equity:
Preferred stock		—		—
Common stock		2		2
Additional paid-in capital		140,736		138,299
Retained earnings		—		23,520
Total stockholders’ equity		140,738		161,821
Total liabilities and stockholders’ equity	$	241,360	$	215,020

(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
	9/30/08			9/30/09
Cash flows from operating activities:
Net (loss) income	$	(165,110	)	$	63,928
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, amortization and accretion		35,262			33,133
Goodwill impairment		188,170			—
Deferred income tax expense		27,871			22,889
Amortization of stock based compensation		884			1,281
Provisions for doubtful accounts, service credits and other		4,566			3,559
Non-cash transaction tax accrual adjustments		(1,717	)		(4,879	)
(Gain) Loss on disposals of property and equipment		(18	)		138
Changes in assets and liabilities:
Accounts receivable		(2,388	)		1,203
Prepaid expenses and other		2,501			(1,374	)
Intangibles and other long-term assets		2,498			461
Accounts payable and accrued liabilities		(6,769	)		(4,403	)
Customer deposits and deferred revenue		(1,279	)		(2,057	)
Other long-term liabilities		—			(37,654	)
Net cash provided by operating activities		84,471			76,225
Cash flows from investing activities:
Purchases of property and equipment		(14,094	)		(12,215	)
Proceeds from disposals of property and equipment		176			30
Net cash used in investing activities		(13,918	)		(12,185	)
Cash flows from financing activities:
Cash distributions to stockholders		(31,367	)		(39,843	)
Purchase of common stock		—			(3,537	)
Net cash used in financing activities		(31,367	)		(43,380	)
Net increase in cash and cash equivalents		39,186			20,660
Cash and cash equivalents, beginning of period		64,542			75,032
Cash and cash equivalents, end of period	$	103,728		$	95,692
Supplemental disclosure:
Interest paid	$	3		$	1
Income taxes paid (state and local)	$	413		$	437

(a) Slight variations in totals are due to rounding.