Delaware | 000-51027 | 16-1694797 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
||
6850 Versar Center, Suite 420, Springfield, Virginia |
22151 | |||
(Address of principal executive offices) |
(Zip Code) |
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)) |
USA Mobility, Inc. |
||||
May 4, 2011 | By: | /s/ Shawn E. Endsley | ||
Name: | Shawn E. Endsley | |||
Title: | Chief Financial Officer |
Exhibit No. | Description | |
99.1
|
USA Mobility, Inc. Press Release dated May 4, 2011 |
For Immediate Release
|
Contact: | Bob Lougee (800) 611-8488 | ||
Wednesday, May 4, 2011
|
bob.lougee@usamobility.com |
| Net unit losses improved to 61,000 in the first quarter, compared to 83,000 in the first quarter of 2010, and the quarterly rate of unit erosion improved to 3.2 percent from 3.8 percent in the year-earlier quarter. The annual rate of subscriber erosion was 12.9 percent in the first quarter, compared to 19.5 percent in the year-ago quarter, and was the lowest annual unit loss rate in more than six years. Units in service at March 31, 2011 totaled 1,828,000, compared to 2,099,000 a year earlier. |
| The quarterly rate of revenue erosion improved to 3.9 percent from 4.0 percent in the first quarter of 2010, while the annual rate of revenue erosion was 16.3 percent in the first quarter, compared to 21.2 percent in the year-earlier quarter, reaching its lowest level in two years. |
| Total ARPU (average revenue per unit) was $8.72 in the first quarter, compared to $8.74 in the fourth quarter and $9.00 in the first quarter of 2010. |
| Pro forma bookings for the quarter ended March 31, 2011 were $13.7 million and the backlog was $19.3 million at March 31, 2011. |
| Revenue from the software business totaled $4.8 million in the period from March 3, 2011 to March 31, 2011, of which $0.9 million was maintenance revenue and $3.9 million was operations revenue (which includes software, professional services and equipment sales). Pro forma revenue, excluding purchase accounting adjustments of $0.9 million, was $5.7 million for the 29-day period. |
| The pro forma renewal rate for maintenance in the first quarter was 99.5 percent. |
| Operating expenses (excluding depreciation, amortization and accretion) totaled $39.5 million in the first quarter, with $35.6 million for wireless (which included $2.9 million of acquisition related expenses) and $3.9 million for software. |
| EBITDA margin (or EBITDA as a percentage of revenue) was 31.2 percent. EBITDA margin for wireless was 32.3 percent, compared to 30.9 percent in the fourth quarter and 35.0 percent in the year-earlier quarter. |
| Capital expenses were $1.5 million, compared to $1.7 million in the first quarter of 2010. |
| The Companys cash balance at March 31, 2011 was $23.4 million. |
| The outstanding debt balance was $51.9 million at an interest rate of 5.25 percent. |
(In millions) | ||||||||||||||||
Full Year | Adjusted | |||||||||||||||
Guidance Range (a) | Guidance Range (b) | |||||||||||||||
From | To | From | To | |||||||||||||
Revenues |
||||||||||||||||
Wireless |
$ | 182.0 | $ | 192.0 | $ | 182.0 | $ | 192.0 | ||||||||
Software |
57.0 | 63.0 | (c) | 42.0 | 48.0 | |||||||||||
Combined |
$ | 239.0 | $ | 255.0 | $ | 224.0 | $ | 240.0 | ||||||||
Operating Expenses (d) |
||||||||||||||||
Wireless |
$ | 136.0 | $ | 132.0 | $ | 136.0 | $ | 132.0 | ||||||||
Software |
47.0 | 43.0 | 40.0 | 35.0 | ||||||||||||
Combined |
$ | 183.0 | $ | 175.0 | $ | 176.0 | $ | 167.0 | ||||||||
Capital Expenses |
||||||||||||||||
Wireless |
$ | 7.0 | $ | 5.0 | $ | 7.0 | $ | 5.0 | ||||||||
Software |
2.0 | 1.0 | 2.0 | 1.0 | ||||||||||||
Combined |
$ | 9.0 | $ | 6.0 | $ | 9.0 | $ | 6.0 | ||||||||
(a) | The full year guidance assumes that the Amcom Software, Inc. (Software) acquisition had occurred as of January 1, 2011. | |
(b) | The adjusted guidance for 2011 reflects Softwares results from March 3, 2011, the date of acquisition, and reflects the fair value adjustment to maintenance revenues as required by generally accepted accounting principles. | |
(c) | Software revenues do NOT reflect any fair value adjustment to maintenance revenue as a result of purchase accounting. | |
(d) | Operating expenses exclude depreciation, amortization and accretion. |
Wireless | Software | |||||||||||
For three months | For the period | |||||||||||
ended March 31, | March 3, 2011 to | |||||||||||
2011 | March 31, 2011 | Total | ||||||||||
Revenue: |
||||||||||||
Paging service |
$ | 48,628 | $ | | $ | 48,628 | ||||||
Cellular |
684 | | 684 | |||||||||
Product sales |
2,344 | 4,799 | 7,143 | |||||||||
Other |
880 | | 880 | |||||||||
Total revenue |
52,536 | 4,799 | 57,335 | |||||||||
Operating expenses: |
||||||||||||
Cost of products sold |
663 | 1,762 | 2,425 | |||||||||
Service, rental and maintenance |
15,816 | 646 | 16,462 | |||||||||
Selling and marketing |
3,833 | 1,088 | 4,921 | |||||||||
General and administrative |
15,240 | 387 | 15,627 | |||||||||
Severance and restructuring |
33 | | 33 | |||||||||
Depreciation, amortization and accretion |
4,032 | 508 | 4,540 | |||||||||
Total operating expenses |
39,617 | 4,391 | 44,008 | |||||||||
% of total revenue |
75.4 | % | 91.5 | % | 76.8 | % | ||||||
Operating income |
12,919 | 408 | 13,327 | |||||||||
% of total revenue |
24.6 | % | 8.5 | % | 23.2 | % | ||||||
Interest expense, net |
(247 | ) | (9 | ) | (256 | ) | ||||||
Other income (expense), net |
205 | (2 | ) | 203 | ||||||||
Income before income tax (benefit) |
12,877 | 397 | 13,274 | |||||||||
Income tax (benefit) expense |
(27,583 | ) | 206 | (27,377 | ) | |||||||
Net income |
$ | 40,460 | $ | 191 | $ | 40,651 | ||||||
Basic net income per common share |
$ | 1.84 | ||||||||||
Diluted net income per common share |
$ | 1.82 | ||||||||||
Basic weighted average common shares outstanding |
22,063,393 | |||||||||||
Diluted weighted average common shares outstanding |
22,333,399 | |||||||||||
Reconciliation of operating income to EBITDA (c): |
||||||||||||
Operating income |
$ | 12,919 | $ | 408 | $ | 13,327 | ||||||
Add back: depreciation, amortization and accretion |
4,032 | 508 | 4,540 | |||||||||
EBITDA |
16,951 | 916 | 17,867 | |||||||||
% of total revenue |
32.3 | % | 19.1 | % | 31.2 | % |
(a) | Includes consolidated results of operations of USA Mobility Wireless, Inc. (Wireless) and Software. | |
(b) | Slight variations in totals are due to rounding. | |
(c) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
3/31/11 | 12/31/10 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 23,383 | $ | 129,220 | ||||
Accounts receivable, net |
21,134 | 13,419 | ||||||
Prepaid expenses and other |
4,412 | 2,638 | ||||||
Inventory, net |
2,432 | 160 | ||||||
Tax receivables |
8,050 | 5,004 | ||||||
Escrow receivables |
7,500 | | ||||||
Deferred income tax assets, net |
7,907 | 3,915 | ||||||
Total current assets |
74,818 | 154,356 | ||||||
Tax receivables |
191 | 191 | ||||||
Property and equipment, net |
26,248 | 27,135 | ||||||
Goodwill |
131,172 | | ||||||
Other
intangible assets, net |
43,477 | 511 | ||||||
Deferred income tax assets, net |
55,046 | 47,390 | ||||||
Escrow receivables |
7,500 | | ||||||
Deferred financing costs, net |
1,294 | | ||||||
Other assets |
1,150 | 1,075 | ||||||
Total assets |
$ | 340,896 | $ | 230,658 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 12,500 | $ | | ||||
Consideration payable |
7,500 | | ||||||
Accounts payable and accrued liabilities |
18,321 | 17,527 | ||||||
Accrued compensation and benefits |
8,600 | 9,968 | ||||||
Customer deposits |
3,266 | 718 | ||||||
Deferred revenue |
10,493 | 6,268 | ||||||
Total current liabilities |
60,680 | 34,481 | ||||||
Long-term debt, net of current portion |
39,447 | | ||||||
Consideration payable |
7,500 | | ||||||
Deferred revenue |
487 | | ||||||
Other long-term liabilities |
12,657 | 11,787 | ||||||
Total liabilities |
120,771 | 46,268 | ||||||
Commitments and contingencies |
||||||||
Stockholders equity: |
||||||||
Preferred stock |
| | ||||||
Common stock |
2 | 2 | ||||||
Additional paid-in capital |
130,355 | 129,696 | ||||||
Retained earnings |
89,768 | 54,692 | ||||||
Total stockholders equity |
220,125 | 184,390 | ||||||
Total liabilities and stockholders equity |
$ | 340,896 | $ | 230,658 | ||||
(a) | Slight variations in totals are due to rounding. |
For the three months ended | ||||||||
3/31/11 | 3/31/10 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 40,651 | $ | 8,885 | ||||
Adjustments to reconcile net income to net cash provided |
||||||||
by operating activities: |
||||||||
Depreciation, amortization and accretion |
4,540 | 7,304 | ||||||
Amortization of deferred financing costs |
45 | | ||||||
Deferred income tax expense |
(27,929 | ) | 5,777 | |||||
Amortization of stock based compensation |
225 | 263 | ||||||
Provisions for doubtful accounts, service credits and other |
700 | 1,225 | ||||||
Settlement of non-cash transaction taxes |
(119 | ) | (350 | ) | ||||
(Loss)/Gain on disposals of property and equipment |
(13 | ) | 59 | |||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
(49 | ) | 472 | |||||
Prepaid
expenses, intangibles and other assets |
(154 | ) | (31 | ) | ||||
Accounts payable and accrued liabilities |
(5,047 | ) | (5,273 | ) | ||||
Customer deposits |
(797 | ) | (51 | ) | ||||
Deferred revenue |
636 | (387 | ) | |||||
Net cash provided by operating activities |
12,689 | 17,893 | ||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(1,494 | ) | (1,725 | ) | ||||
Proceeds from disposals of property and equipment |
11 | 38 | ||||||
Acquisitions, net of cash acquired |
(134,217 | ) | | |||||
Net cash used in investing activities |
(135,700 | ) | (1,687 | ) | ||||
Cash flows from financing activities: |
||||||||
Issuance of debt |
24,044 | | ||||||
Deferred financing costs |
(1,339 | ) | | |||||
Cash dividends to stockholders |
(5,531 | ) | (5,619 | ) | ||||
Purchase of common stock |
| (4,623 | ) | |||||
Net cash provided (used) in financing activities |
17,174 | (10,242 | ) | |||||
Net (decrease) increase in cash and cash equivalents |
(105,837 | ) | 5,964 | |||||
Cash and cash equivalents, beginning of period |
129,220 | 109,591 | ||||||
Cash and cash equivalents, end of period |
$ | 23,383 | $ | 115,555 | ||||
Supplemental disclosure: |
||||||||
Interest paid |
$ | 263 | $ | 1 | ||||
Income taxes paid (state and local) |
$ | | $ | | ||||
(a) | Slight variations in totals are due to rounding. |
For the three months ended | ||||||||||||||||||||
3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | ||||||||||||||||
Revenues: |
||||||||||||||||||||
Paging service |
$ | 48,628 | $ | 50,319 | $ | 52,778 | $ | 54,875 | $ | 57,832 | ||||||||||
Cellular |
684 | 499 | 532 | 624 | 708 | |||||||||||||||
Product sales |
2,344 | 2,784 | 2,805 | 2,732 | 3,358 | |||||||||||||||
Other |
880 | 1,046 | 595 | 881 | 886 | |||||||||||||||
Total revenues |
52,536 | 54,648 | 56,710 | 59,112 | 62,784 | |||||||||||||||
Operating expenses: |
||||||||||||||||||||
Cost of products sold |
663 | 1,051 | 819 | 1,134 | 1,209 | |||||||||||||||
Service, rental and maintenance |
15,816 | 16,221 | 16,821 | 17,175 | 18,941 | |||||||||||||||
Selling and marketing |
3,833 | 3,915 | 4,060 | 4,394 | 4,557 | |||||||||||||||
General and administrative |
15,240 | 14,829 | 12,907 | 15,924 | 15,812 | |||||||||||||||
Severance and restructuring |
33 | 1,738 | 86 | 41 | 314 | |||||||||||||||
Depreciation, amortization and accretion |
4,032 | 4,226 | 5,899 | 6,698 | 7,304 | |||||||||||||||
Total operating expenses |
39,617 | 41,980 | 40,592 | 45,366 | 48,137 | |||||||||||||||
% of total revenues |
75.4 | % | 76.8 | % | 71.6 | % | 76.7 | % | 76.7 | % | ||||||||||
Operating income |
12,919 | 12,668 | 16,118 | 13,746 | 14,647 | |||||||||||||||
% of total revenues |
24.6 | % | 23.2 | % | 28.4 | % | 23.3 | % | 23.3 | % | ||||||||||
Interest (expense) income, net |
(247 | ) | 3 | 6 | 4 | 3 | ||||||||||||||
Other income, net |
205 | 227 | 2,320 | 180 | 78 | |||||||||||||||
Income before income tax (benefit) expense |
12,877 | 12,898 | 18,444 | 13,930 | 14,728 | |||||||||||||||
Income tax (benefit) expense |
(27,583 | ) | (27,642 | ) | 3,060 | 841 | 5,843 | |||||||||||||
Net income |
$ | 40,460 | $ | 40,540 | $ | 15,384 | $ | 13,089 | $ | 8,885 | ||||||||||
Basic net income per common share |
$ | 1.84 | $ | 1.84 | $ | 0.70 | $ | 0.59 | $ | 0.39 | ||||||||||
Diluted net income per common share |
$ | 1.82 | $ | 1.82 | $ | 0.69 | $ | 0.58 | $ | 0.39 | ||||||||||
Basic weighted average common shares outstanding |
22,063,393 | 22,050,512 | 22,060,636 | 22,307,488 | 22,654,240 | |||||||||||||||
Diluted weighted average common shares outstanding |
22,333,399 | 22,323,551 | 22,372,786 | 22,620,707 | 22,967,192 | |||||||||||||||
Reconciliation of operating income to EBITDA (b): |
||||||||||||||||||||
Operating income |
$ | 12,919 | $ | 12,668 | $ | 16,118 | $ | 13,746 | $ | 14,647 | ||||||||||
Add back: depreciation, amortization and accretion |
4,032 | 4,226 | 5,899 | 6,698 | 7,304 | |||||||||||||||
EBITDA |
$ | 16,951 | $ | 16,894 | $ | 22,017 | $ | 20,444 | $ | 21,951 | ||||||||||
% of total revenues |
32.3 | % | 30.9 | % | 38.8 | % | 34.6 | % | 35.0 | % |
(a) | Slight variations in totals are due to rounding. | |
(b) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
For the three months ended | ||||||||||||||||||||
Units in service | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||
Beginning units in service |
||||||||||||||||||||
Direct one-way |
1,645 | 1,692 | 1,749 | 1,804 | 1,881 | |||||||||||||||
Direct two-way |
106 | 109 | 121 | 126 | 133 | |||||||||||||||
Total direct |
1,751 | 1,801 | 1,870 | 1,930 | 2,014 | |||||||||||||||
Indirect one-way |
68 | 75 | 82 | 90 | 101 | |||||||||||||||
Indirect two-way |
70 | 74 | 75 | 79 | 67 | |||||||||||||||
Total indirect |
138 | 149 | 157 | 169 | 168 | |||||||||||||||
Total beginning units in service |
1,889 | 1,950 | 2,027 | 2,099 | 2,182 | |||||||||||||||
Gross placements |
||||||||||||||||||||
Direct one-way |
46 | 45 | 58 | 62 | 53 | |||||||||||||||
Direct two-way |
4 | 6 | 4 | 6 | 5 | |||||||||||||||
Total direct |
50 | 51 | 62 | 68 | 58 | |||||||||||||||
Indirect one-way |
2 | 2 | 3 | 3 | 3 | |||||||||||||||
Indirect two-way |
0 | 1 | 1 | 1 | 15 | |||||||||||||||
Total indirect |
2 | 3 | 4 | 4 | 18 | |||||||||||||||
Total gross placements |
52 | 54 | 66 | 72 | 76 | |||||||||||||||
Gross disconnects |
||||||||||||||||||||
Direct one-way |
(94 | ) | (92 | ) | (115 | ) | (117 | ) | (130 | ) | ||||||||||
Direct two-way |
(8 | ) | (9 | ) | (16 | ) | (11 | ) | (12 | ) | ||||||||||
Total direct |
(102 | ) | (101 | ) | (131 | ) | (128 | ) | (142 | ) | ||||||||||
Indirect one-way |
8 | (9 | ) | (10 | ) | (11 | ) | (14 | ) | |||||||||||
Indirect two-way |
(19 | ) | (5 | ) | (2 | ) | (5 | ) | (3 | ) | ||||||||||
Total indirect |
(11 | ) | (14 | ) | (12 | ) | (16 | ) | (17 | ) | ||||||||||
Total gross disconnects |
(113 | ) | (115 | ) | (143 | ) | (144 | ) | (159 | ) | ||||||||||
Net gain / (loss) |
||||||||||||||||||||
Direct one-way |
(48 | ) | (47 | ) | (57 | ) | (55 | ) | (77 | ) | ||||||||||
Direct two-way |
(4 | ) | (3 | ) | (12 | ) | (5 | ) | (7 | ) | ||||||||||
Total direct |
(52 | ) | (50 | ) | (69 | ) | (60 | ) | (84 | ) | ||||||||||
Indirect one-way |
10 | (7 | ) | (7 | ) | (8 | ) | (11 | ) | |||||||||||
Indirect two-way |
(19 | ) | (4 | ) | (1 | ) | (4 | ) | 12 | |||||||||||
Total indirect |
(9 | ) | (11 | ) | (8 | ) | (12 | ) | 1 | |||||||||||
Total net change |
(61 | ) | (61 | ) | (77 | ) | (72 | ) | (83 | ) | ||||||||||
Ending units in service |
||||||||||||||||||||
Direct one-way |
1,597 | 1,645 | 1,692 | 1,749 | 1,804 | |||||||||||||||
Direct two-way |
102 | 106 | 109 | 121 | 126 | |||||||||||||||
Total direct |
1,699 | 1,751 | 1,801 | 1,870 | 1,930 | |||||||||||||||
Indirect one-way |
78 | 68 | 75 | 82 | 90 | |||||||||||||||
Indirect two-way |
51 | 70 | 74 | 75 | 79 | |||||||||||||||
Total indirect |
129 | 138 | 149 | 157 | 169 | |||||||||||||||
Total ending units in service |
1,828 | 1,889 | 1,950 | 2,027 | 2,099 | |||||||||||||||
(a) | Slight variations in totals are due to rounding. |
For the three months ended | ||||||||||||||||||||
3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | ||||||||||||||||
ARPU |
||||||||||||||||||||
Direct one-way |
$ | 8.05 | $ | 8.05 | $ | 8.07 | $ | 8.05 | $ | 8.16 | ||||||||||
Direct two-way |
22.23 | 22.57 | 23.11 | 23.55 | 23.61 | |||||||||||||||
Total direct |
8.89 | 8.92 | 9.01 | 9.06 | 9.17 | |||||||||||||||
Indirect one-way |
8.44 | 9.13 | 9.60 | 8.87 | 8.78 | |||||||||||||||
Indirect two-way |
4.31 | 3.98 | 4.09 | 4.25 | 4.84 | |||||||||||||||
Total indirect |
6.49 | 6.48 | 6.86 | 6.65 | 7.04 | |||||||||||||||
Total one-way |
8.07 | 8.09 | 8.14 | 8.09 | 8.19 | |||||||||||||||
Total two-way |
15.41 | 14.96 | 15.54 | 16.06 | 16.76 | |||||||||||||||
Total paging ARPU |
$ | 8.72 | $ | 8.74 | $ | 8.85 | $ | 8.87 | $ | 9.00 | ||||||||||
Gross disconnect rate (b) |
||||||||||||||||||||
Direct one-way |
-5.7 | % | -5.5 | % | -6.6 | % | -6.5 | % | -6.9 | % | ||||||||||
Direct two-way |
-7.5 | % | -8.5 | % | -13.0 | % | -8.5 | % | -9.1 | % | ||||||||||
Total direct |
-5.8 | % | -5.7 | % | -7.0 | % | -6.6 | % | -7.1 | % | ||||||||||
Indirect one-way |
11.9 | % | -12.1 | % | -12.5 | % | -12.8 | % | -13.7 | % | ||||||||||
Indirect two-way |
-26.4 | % | -5.8 | % | -2.6 | % | -6.8 | % | -4.9 | % | ||||||||||
Total indirect |
-8.1 | % | -8.9 | % | -7.7 | % | -9.9 | % | -10.1 | % | ||||||||||
Total one-way |
-5.0 | % | -5.7 | % | -6.8 | % | -6.8 | % | -7.3 | % | ||||||||||
Total two-way |
-15.2 | % | -7.4 | % | -9.0 | % | -7.9 | % | -7.7 | % | ||||||||||
Total paging gross disconnect rate |
-6.0 | % | -5.9 | % | -7.0 | % | -6.9 | % | -7.3 | % | ||||||||||
Net gain / loss rate (c) |
||||||||||||||||||||
Direct one-way |
-2.9 | % | -2.7 | % | -3.2 | % | -3.1 | % | -4.1 | % | ||||||||||
Direct two-way |
-3.6 | % | -4.6 | % | -9.5 | % | -4.2 | % | -5.0 | % | ||||||||||
Total direct |
-3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | ||||||||||
Indirect one-way |
14.6 | % | -9.8 | % | -9.2 | % | -9.8 | % | -10.5 | % | ||||||||||
Indirect two-way |
-25.8 | % | -4.6 | % | -0.9 | % | -4.7 | % | 17.1 | % | ||||||||||
Total indirect |
-6.6 | % | -7.2 | % | -5.1 | % | -7.4 | % | 0.7 | % | ||||||||||
Total one-way |
-2.2 | % | -3.0 | % | -3.5 | % | -3.4 | % | -4.4 | % | ||||||||||
Total two-way |
-12.7 | % | -4.6 | % | -6.1 | % | -4.4 | % | 2.5 | % | ||||||||||
Total paging net (loss) gain rate |
-3.2 | % | -3.2 | % | -3.8 | % | -3.5 | % | -3.8 | % | ||||||||||
(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. |
For the three months ended | ||||||||||||||||||||
3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | ||||||||||||||||
Gross placement rate (b) |
||||||||||||||||||||
Healthcare |
3.3 | % | 3.4 | % | 3.9 | % | 4.4 | % | 3.5 | % | ||||||||||
Government |
1.9 | % | 1.5 | % | 3.1 | % | 1.9 | % | 1.8 | % | ||||||||||
Large enterprise |
2.3 | % | 2.2 | % | 1.9 | % | 2.6 | % | 2.1 | % | ||||||||||
Other |
2.5 | % | 2.3 | % | 2.5 | % | 2.0 | % | 2.4 | % | ||||||||||
Total direct |
2.9 | % | 2.8 | % | 3.4 | % | 3.5 | % | 2.9 | % | ||||||||||
Total indirect |
1.6 | % | 1.7 | % | 2.6 | % | 2.5 | % | 10.9 | % | ||||||||||
Total |
2.8 | % | 2.7 | % | 3.3 | % | 3.4 | % | 3.5 | % | ||||||||||
Gross disconnect rate (b) |
||||||||||||||||||||
Healthcare |
-4.7 | % | -4.4 | % | -5.7 | % | -5.2 | % | -4.9 | % | ||||||||||
Government |
-7.6 | % | -7.3 | % | -8.3 | % | -8.3 | % | -9.1 | % | ||||||||||
Large enterprise |
-6.2 | % | -7.0 | % | -9.7 | % | -8.3 | % | -10.3 | % | ||||||||||
Other |
-9.2 | % | -8.6 | % | -9.3 | % | -9.6 | % | -11.0 | % | ||||||||||
Total direct |
-5.8 | % | -5.7 | % | -7.0 | % | -6.6 | % | -7.1 | % | ||||||||||
Total indirect |
-8.1 | % | -8.9 | % | -7.7 | % | -9.9 | % | -10.1 | % | ||||||||||
Total |
-6.0 | % | -5.9 | % | -7.0 | % | -6.9 | % | -7.3 | % | ||||||||||
Net loss rate (b) |
||||||||||||||||||||
Healthcare |
-1.4 | % | -1.1 | % | -1.8 | % | -0.8 | % | -1.4 | % | ||||||||||
Government |
-5.7 | % | -5.9 | % | -5.2 | % | -6.4 | % | -7.4 | % | ||||||||||
Large enterprise |
-3.9 | % | -4.8 | % | -7.8 | % | -5.7 | % | -8.1 | % | ||||||||||
Other |
-6.8 | % | -6.3 | % | -6.8 | % | -7.6 | % | -8.6 | % | ||||||||||
Total direct |
-3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | ||||||||||
Total indirect |
-6.6 | % | -7.2 | % | -5.1 | % | -7.4 | % | 0.7 | % | ||||||||||
Total |
-3.2 | % | -3.2 | % | -3.8 | % | -3.5 | % | -3.8 | % | ||||||||||
End of period units in service % of total (b) |
||||||||||||||||||||
Healthcare |
59.5 | % | 58.3 | % | 57.1 | % | 56.1 | % | 54.5 | % | ||||||||||
Government |
13.1 | % | 13.5 | % | 13.9 | % | 14.1 | % | 14.4 | % | ||||||||||
Large enterprise |
10.0 | % | 10.1 | % | 10.2 | % | 10.7 | % | 10.9 | % | ||||||||||
Other |
10.3 | % | 10.8 | % | 11.2 | % | 11.4 | % | 12.1 | % | ||||||||||
Total direct |
92.9 | % | 92.7 | % | 92.4 | % | 92.3 | % | 91.9 | % | ||||||||||
Total indirect |
7.1 | % | 7.3 | % | 7.6 | % | 7.7 | % | 8.1 | % | ||||||||||
Total |
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) gain rates. |
For the three months ended | ||||||||||||||||||||
3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | ||||||||||||||||
Account size ending units in service (000s) |
||||||||||||||||||||
1 to 3 units |
79 | 84 | 88 | 95 | 101 | |||||||||||||||
4 to 10 units |
48 | 52 | 54 | 58 | 62 | |||||||||||||||
11 to 50 units |
114 | 123 | 130 | 140 | 149 | |||||||||||||||
51 to 100 units |
72 | 76 | 79 | 86 | 92 | |||||||||||||||
101 to 1,000 units |
424 | 436 | 456 | 483 | 499 | |||||||||||||||
>1,000 units |
962 | 980 | 994 | 1,008 | 1,027 | |||||||||||||||
Total |
1,699 | 1,751 | 1,801 | 1,870 | 1,930 | |||||||||||||||
End of period units in service % of total direct |
||||||||||||||||||||
1 to 3 units |
4.7 | % | 4.8 | % | 4.9 | % | 5.1 | % | 5.2 | % | ||||||||||
4 to 10 units |
2.8 | % | 2.9 | % | 3.0 | % | 3.1 | % | 3.2 | % | ||||||||||
11 to 50 units |
6.7 | % | 7.0 | % | 7.2 | % | 7.5 | % | 7.7 | % | ||||||||||
51 to 100 units |
4.2 | % | 4.4 | % | 4.4 | % | 4.6 | % | 4.8 | % | ||||||||||
101 to 1,000 units |
25.0 | % | 24.9 | % | 25.3 | % | 25.8 | % | 25.9 | % | ||||||||||
>1,000 units |
56.6 | % | 56.0 | % | 55.2 | % | 53.9 | % | 53.2 | % | ||||||||||
Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||
Account size net loss rate |
||||||||||||||||||||
1 to 3 units |
-6.2 | % | -4.8 | % | -7.0 | % | -5.8 | % | -7.6 | % | ||||||||||
4 to 10 units |
-6.2 | % | -5.0 | % | -7.5 | % | -6.0 | % | -5.3 | % | ||||||||||
11 to 50 units |
-7.7 | % | -5.1 | % | -7.3 | % | -6.1 | % | -5.8 | % | ||||||||||
51 to 100 units |
-5.7 | % | -4.2 | % | -7.9 | % | -6.5 | % | -4.4 | % | ||||||||||
101 to 1,000 units |
-2.7 | % | -4.2 | % | -5.6 | % | -3.3 | % | -3.7 | % | ||||||||||
>1,000 units |
-1.8 | % | -1.5 | % | -1.3 | % | -1.9 | % | -3.7 | % | ||||||||||
Total |
-3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | ||||||||||
Account size ARPU |
||||||||||||||||||||
1 to 3 units |
$ | 15.57 | $ | 15.57 | $ | 15.48 | $ | 15.37 | $ | 15.28 | ||||||||||
4 to 10 units |
14.53 | 14.56 | 14.51 | 14.35 | 14.37 | |||||||||||||||
11 to 50 units |
12.19 | 12.26 | 12.18 | 12.01 | 11.86 | |||||||||||||||
51 to 100 units |
10.59 | 10.72 | 10.69 | 10.76 | 10.67 | |||||||||||||||
101 to 1,000 units |
9.00 | 9.00 | 8.82 | 8.93 | 9.00 | |||||||||||||||
>1,000 units |
7.47 | 7.43 | 7.64 | 7.63 | 7.80 | |||||||||||||||
Total |
$ | 8.89 | $ | 8.92 | $ | 9.01 | $ | 9.06 | $ | 9.17 | ||||||||||
Cellular revenue |
||||||||||||||||||||
Number of activations |
2,191 | 1,990 | 1,885 | 1,885 | 2,354 | |||||||||||||||
Revenue from cellular services (000s) |
$ | 684 | $ | 499 | $ | 532 | $ | 624 | $ | 708 | ||||||||||
(a) | Slight variations in totals are due to rounding. |
For the three months ended | ||||||||||||||||||||
3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | ||||||||||||||||
Cost of products sold |
$ | 663 | $ | 1,051 | $ | 819 | $ | 1,134 | $ | 1,209 | ||||||||||
Service, rental and maintenance |
||||||||||||||||||||
Site rent |
6,881 | 7,629 | 8,042 | 8,283 | 9,079 | |||||||||||||||
Telecommunications |
3,099 | 3,066 | 3,341 | 3,467 | 3,831 | |||||||||||||||
Payroll and related |
4,293 | 4,319 | 4,199 | 4,444 | 4,586 | |||||||||||||||
Stock based compensation |
5 | 6 | 5 | 7 | 6 | |||||||||||||||
Other |
1,538 | 1,201 | 1,234 | 974 | 1,439 | |||||||||||||||
Total service, rental and maintenance |
15,816 | 16,221 | 16,821 | 17,175 | 18,941 | |||||||||||||||
Selling and marketing |
||||||||||||||||||||
Payroll and related |
2,494 | 2,627 | 2,659 | 2,814 | 2,964 | |||||||||||||||
Commissions |
1,002 | 1,007 | 1,163 | 1,367 | 1,164 | |||||||||||||||
Stock based compensation |
17 | 17 | 17 | 22 | 17 | |||||||||||||||
Other |
320 | 264 | 221 | 191 | 412 | |||||||||||||||
Total selling and marketing |
3,833 | 3,915 | 4,060 | 4,394 | 4,557 | |||||||||||||||
General and administrative |
||||||||||||||||||||
Payroll and related |
5,677 | 6,118 | 5,719 | 6,621 | 6,912 | |||||||||||||||
Stock based compensation |
203 | 223 | 15 | 242 | 240 | |||||||||||||||
Bad debt |
393 | 547 | 571 | 594 | 713 | |||||||||||||||
Facility rent |
726 | 856 | 992 | 1,326 | 1,354 | |||||||||||||||
Telecommunications |
443 | 480 | 518 | 603 | 657 | |||||||||||||||
Outside services |
5,186 | 2,385 | 2,463 | 3,185 | 3,267 | |||||||||||||||
Taxes, licenses and permits |
1,332 | 1,097 | 1,276 | 1,836 | 1,591 | |||||||||||||||
Other |
1,280 | 3,123 | 1,353 | 1,517 | 1,078 | |||||||||||||||
Total general and administrative |
15,240 | 14,829 | 12,907 | 15,924 | 15,812 | |||||||||||||||
Severance and restructuring |
33 | 1,738 | 86 | 41 | 314 | |||||||||||||||
Depreciation, amortization and accretion |
4,032 | 4,226 | 5,899 | 6,698 | 7,304 | |||||||||||||||
Operating expenses |
$ | 39,617 | $ | 41,980 | $ | 40,592 | $ | 45,366 | $ | 48,137 | ||||||||||
Capital expenditures |
$ | 1,494 | $ | 4,720 | $ | 1,730 | $ | 563 | $ | 1,725 |
(a) | Slight variations in totals are due to rounding. |
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