Delaware | 000-51027 | 16-1694797 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) |
6850 Versar Center, Suite | ||
420, Springfield, Virginia | 22151 | |
(Address of principal executive offices) | (Zip Code) |
USA Mobility, Inc. |
||||
July 27, 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 July 27, 2011 |
For Immediate Release
|
Contact: | Bob Lougee (800) 611-8488 | ||
Wednesday, July 27, 2011
|
bob.lougee@usamobility.com |
| Net unit losses were 49,000 in the second quarter, compared to 61,000 in the first quarter and 72,000 in the second quarter of 2010, while the quarterly rate of unit erosion improved to 2.7 percent from 3.5 percent in the year-earlier quarter. The annual rate of subscriber erosion was 12.2 percent in the second quarter, compared to 17.2 percent in the year-ago quarter, and was the lowest annual unit loss rate in more than six years. Units in service at June 30, 2011 totaled 1,779,000, compared to 2,027,000 a year earlier. | ||
| The quarterly rate of revenue erosion improved significantly to 0.8 percent in the second quarter from 3.9 percent in the first quarter and 5.8 percent in the year-earlier quarter, and was the lowest quarterly rate of revenue decline since the Companys formation in 2004. The annual rate of revenue erosion improved to 11.9 percent from 16.3 percent in the first quarter and 21.3 percent in the year-earlier quarter, also reaching its lowest level in many years. | ||
| Total ARPU (average revenue per unit) was $8.74 in the second quarter, compared to $8.72 in the first quarter and $8.87 in the second quarter of 2010. |
| Bookings for the quarter ended June 30, 2011 were $15.2 million, while the backlog was $20.5 million at June 30th. | ||
| Of the $13.1 million in Software revenue, $3.2 million was maintenance revenue and $9.9 million was operations revenue (which includes software, professional services and equipment sales). Software revenue, excluding the purchase accounting adjustments of $2.6 million, was $15.7 million for the second quarter, an Amcom company record. | ||
| The renewal rate for maintenance in the second quarter was 99.9 percent. |
| Operating expenses (excluding depreciation, amortization and accretion) totaled $43.7 million in the second quarter, with $31.7 million for Wireless and $12.0 million for Software, compared to operating expenses of $39.5 million in the first quarter, with $35.6 million for Wireless (which included $2.9 million in acquisition related expenses) and $3.9 million for Software for the 29-day period ended March 31. | ||
| EBITDA margin (or EBITDA as a percentage of revenue) was 32.9 percent, compared to 31.2 percent in the first quarter. EBITDA margin for Wireless was 39.2 percent, compared to 32.3 percent in the first quarter and 34.6 percent in the year-earlier quarter. |
| Capital expenses were $1.9 million, compared to $0.6 million in the second quarter of 2010. | ||
| Stockholders dividends paid were $5.5 million in the second quarter. | ||
| The Companys cash balance at June 30, 2011 was $29.5 million. | ||
| The Company retired $14.1 million of bank debt during the second quarter. The outstanding debt balance at June 30, 2011 was $37.8 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 | $ | 193.0 | $ | 200.0 | ||||||||
Software |
57.0 | 63.0 | (c) | 42.0 | 48.0 | |||||||||||
Combined |
$ | 239.0 | $ | 255.0 | $ | 235.0 | $ | 248.0 | ||||||||
Operating Expenses (d) |
||||||||||||||||
Wireless |
$ | 136.0 | $ | 132.0 | $ | 134.0 | $ | 127.0 | ||||||||
Software |
47.0 | 43.0 | 40.0 | 35.0 | ||||||||||||
Combined |
$ | 183.0 | $ | 175.0 | $ | 174.0 | $ | 162.0 | ||||||||
Capital Expenses |
||||||||||||||||
Wireless |
$ | 7.0 | $ | 5.0 | $ | 8.0 | $ | 6.0 | ||||||||
Software |
2.0 | 1.0 | 1.0 | 0.5 | ||||||||||||
Combined |
$ | 9.0 | $ | 6.0 | $ | 9.0 | $ | 6.5 | ||||||||
(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) | The full year guidance for Software revenues does NOT reflect any fair value adjustment to maintenance revenue as a result of purchase accounting. | |
(d) | Operating expenses exclude depreciation, amortization and accretion. |
For the three months ended 6/30/2011 | For the six months ended 6/30/2011 | |||||||||||||||||||||||
Wireless | Software | Total | Wireless | Software | Total | |||||||||||||||||||
Revenue: |
||||||||||||||||||||||||
Paging service |
$ | 47,319 | $ | | $ | 47,319 | $ | 95,947 | $ | | $ | 95,947 | ||||||||||||
Cellular |
1,199 | | 1,199 | 1,883 | | 1,883 | ||||||||||||||||||
Product sales (d) |
2,805 | 13,080 | 15,885 | 5,149 | 17,878 | 23,027 | ||||||||||||||||||
Other |
768 | | 768 | 1,648 | | 1,648 | ||||||||||||||||||
Total revenue |
52,091 | 13,080 | 65,171 | 104,627 | 17,878 | 122,505 | ||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Cost of products sold (d) |
1,171 | 5,906 | 7,077 | 1,834 | 7,668 | 9,502 | ||||||||||||||||||
Service, rental and maintenance |
14,211 | 1,976 | 16,187 | 30,027 | 2,622 | 32,649 | ||||||||||||||||||
Selling and marketing |
3,946 | 2,643 | 6,589 | 7,779 | 3,731 | 11,510 | ||||||||||||||||||
General and administrative |
12,351 | 1,515 | 13,866 | 27,591 | 1,903 | 29,494 | ||||||||||||||||||
Severance and restructuring |
17 | | 17 | 50 | | 50 | ||||||||||||||||||
Depreciation, amortization and accretion |
3,618 | 1,680 | 5,298 | 7,650 | 2,188 | 9,838 | ||||||||||||||||||
Total operating expenses |
35,314 | 13,720 | 49,034 | 74,931 | 18,112 | 93,043 | ||||||||||||||||||
% of total revenue |
67.8 | % | 104.9 | % | 75.2 | % | 71.6 | % | 101.3 | % | 76.0 | % | ||||||||||||
Operating income (loss) |
16,777 | (640 | ) | 16,137 | 29,696 | (234 | ) | 29,462 | ||||||||||||||||
% of total revenue |
32.2 | % | -4.9 | % | 24.8 | % | 28.4 | % | -1.3 | % | 24.0 | % | ||||||||||||
Interest expense, net |
(862 | ) | | (862 | ) | (1,109 | ) | (9 | ) | (1,118 | ) | |||||||||||||
Other income, net |
7,692 | | 7,692 | 7,897 | | 7,897 | ||||||||||||||||||
Income (loss) before income tax expense (benefit) |
23,607 | (640 | ) | 22,967 | 36,484 | (243 | ) | 36,241 | ||||||||||||||||
Income tax expense (benefit) |
4,668 | (296 | ) | 4,372 | (22,915 | ) | (90 | ) | (23,005 | ) | ||||||||||||||
Net income (loss) |
$ | 18,939 | $ | (344 | ) | $ | 18,595 | $ | 59,399 | $ | (153 | ) | $ | 59,246 | ||||||||||
Basic net income per common share |
$ | 0.84 | $ | 2.68 | ||||||||||||||||||||
Diluted net income per common share |
$ | 0.82 | $ | 2.64 | ||||||||||||||||||||
Basic weighted average common shares outstanding |
22,086,848 | 22,075,185 | ||||||||||||||||||||||
Diluted weighted average common shares outstanding |
22,551,862 | 22,443,417 | ||||||||||||||||||||||
Reconciliation of operating income (loss) to EBITDA (c): |
||||||||||||||||||||||||
Operating income (loss) |
$ | 16,777 | $ | (640 | ) | $ | 16,137 | $ | 29,696 | $ | (234 | ) | $ | 29,462 | ||||||||||
Add back: depreciation, amortization and accretion |
3,618 | 1,680 | 5,298 | 7,650 | 2,188 | 9,838 | ||||||||||||||||||
EBITDA |
$ | 20,395 | $ | 1,040 | $ | 21,435 | $ | 37,346 | $ | 1,954 | $ | 39,300 | ||||||||||||
% of total revenue |
39.2 | % | 8.0 | % | 32.9 | % | 35.7 | % | 10.9 | % | 32.1 | % |
(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. | |
(d) | Wireless results were reduced by $343,000 for intercompany revenue and cost of products sold. |
6/30/11 | 12/31/10 | |||||||
(Unaudited) | ||||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 29,470 | $ | 129,220 | ||||
Accounts receivable, net |
22,894 | 13,419 | ||||||
Prepaid expenses and other |
3,800 | 2,638 | ||||||
Inventory |
2,845 | 160 | ||||||
Tax receivables |
6,420 | 5,004 | ||||||
Escrow receivables |
7,319 | | ||||||
Deferred income tax assets, net |
9,043 | 3,915 | ||||||
Total current assets |
81,791 | 154,356 | ||||||
Tax receivables |
191 | 191 | ||||||
Property and equipment, net |
24,632 | 27,135 | ||||||
Goodwill |
130,921 | | ||||||
Other intangible assets, net |
41,848 | 511 | ||||||
Deferred income tax assets, net |
49,469 | 47,390 | ||||||
Escrow receivables |
7,500 | | ||||||
Deferred financing costs, net |
1,135 | | ||||||
Other assets |
1,186 | 1,075 | ||||||
Total assets |
$ | 338,673 | $ | 230,658 | ||||
Liabilities and stockholders equity |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 11,875 | $ | | ||||
Consideration payable |
7,319 | | ||||||
Accounts payable and accrued liabilities |
14,166 | 14,794 | ||||||
Accrued compensation and benefits |
10,305 | 12,701 | ||||||
Customer deposits |
3,769 | 718 | ||||||
Deferred revenue |
12,129 | 6,268 | ||||||
Total current liabilities |
59,563 | 34,481 | ||||||
Long-term debt, net of current portion |
25,947 | | ||||||
Consideration payable |
7,500 | | ||||||
Deferred revenue |
287 | | ||||||
Other long-term liabilities |
11,807 | 11,787 | ||||||
Total liabilities |
105,104 | 46,268 | ||||||
Commitments and contingencies Stockholders equity: |
||||||||
Preferred stock |
| | ||||||
Common stock |
2 | 2 | ||||||
Additional paid-in capital |
130,846 | 129,696 | ||||||
Retained earnings |
102,721 | 54,692 | ||||||
Total stockholders equity |
233,569 | 184,390 | ||||||
Total liabilities and stockholders equity |
$ | 338,673 | $ | 230,658 | ||||
(a) | Slight variations in totals are due to rounding. |
For the six months ended | ||||||||
6/30/11 | 6/30/10 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 59,246 | $ | 21,974 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation, amortization and accretion |
9,838 | 14,002 | ||||||
Amortization of deferred financing costs |
273 | | ||||||
Deferred income tax (benefit) expense |
(23,371 | ) | 6,577 | |||||
Amortization of stock based compensation |
679 | 534 | ||||||
Provisions for doubtful accounts, service credits and other |
490 | 2,400 | ||||||
Settlement of non-cash transaction taxes |
308 | (667 | ) | |||||
(Gain)/Loss on disposals of property and equipment |
(37 | ) | 22 | |||||
(Gain)/Loss on disposals of narrow band PCS licenses |
(7,500 | ) | | |||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
(1,600 | ) | 1,996 | |||||
Prepaid expenses, intangibles and other assets |
1,669 | (17 | ) | |||||
Accounts payable and accrued liabilities |
(8,936 | ) | (6,188 | ) | ||||
Customer deposits and deferred revenue |
1,777 | (833 | ) | |||||
Net cash provided by operating activities |
32,836 | 39,800 | ||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(3,355 | ) | (2,288 | ) | ||||
Proceeds from disposals of property and equipment |
35 | 58 | ||||||
Proceeds from disposals of narrow band PCS licenses |
7,500 | | ||||||
Acquisitions, net of cash acquired |
(134,217 | ) | | |||||
Net cash used in investing activities |
(130,037 | ) | (2,230 | ) | ||||
Cash flows from financing activities: |
||||||||
Issuance of debt |
24,044 | | ||||||
Repayment of debt |
(14,125 | ) | | |||||
Deferred financing costs |
(1,408 | ) | | |||||
Cash dividends to stockholders |
(11,060 | ) | (11,151 | ) | ||||
Purchase of common stock |
| (6,887 | ) | |||||
Net cash used in financing activities |
(2,549 | ) | (18,038 | ) | ||||
Net (decrease) increase in cash and cash equivalents |
(99,750 | ) | 19,532 | |||||
Cash and cash equivalents, beginning of period |
129,220 | 109,591 | ||||||
Cash and cash equivalents, end of period |
$ | 29,470 | $ | 129,123 | ||||
Supplemental disclosure: |
||||||||
Interest paid |
$ | 685 | $ | | ||||
Income taxes paid |
$ | 817 | $ | 362 | ||||
Non-cash financing activities |
$ | 27,750 | $ | | ||||
(a) | Slight variations in totals are due to rounding. |
For the three months ended | ||||||||||||||||||||||||
6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Paging service |
$ | 47,319 | $ | 48,628 | $ | 50,319 | $ | 52,778 | $ | 54,875 | $ | 57,832 | ||||||||||||
Cellular |
1,199 | 684 | 499 | 532 | 624 | 708 | ||||||||||||||||||
Product sales (b) |
2,805 | 2,344 | 2,784 | 2,805 | 2,732 | 3,358 | ||||||||||||||||||
Other |
768 | 880 | 1,046 | 595 | 881 | 886 | ||||||||||||||||||
Total revenues |
52,091 | 52,536 | 54,648 | 56,710 | 59,112 | 62,784 | ||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Cost of products sold (b) |
1,171 | 663 | 1,051 | 819 | 1,134 | 1,209 | ||||||||||||||||||
Service, rental and maintenance |
14,211 | 15,816 | 16,221 | 16,821 | 17,175 | 18,941 | ||||||||||||||||||
Selling and marketing |
3,946 | 3,833 | 3,915 | 4,060 | 4,394 | 4,557 | ||||||||||||||||||
General and administrative |
12,351 | 15,240 | 14,829 | 12,907 | 15,924 | 15,812 | ||||||||||||||||||
Severance and restructuring |
17 | 33 | 1,738 | 86 | 41 | 314 | ||||||||||||||||||
Depreciation, amortization and accretion |
3,618 | 4,032 | 4,226 | 5,899 | 6,698 | 7,304 | ||||||||||||||||||
Total operating expenses |
35,314 | 39,617 | 41,980 | 40,592 | 45,366 | 48,137 | ||||||||||||||||||
% of total revenues |
67.8 | % | 75.4 | % | 76.8 | % | 71.6 | % | 76.7 | % | 76.7 | % | ||||||||||||
Operating income |
16,777 | 12,919 | 12,668 | 16,118 | 13,746 | 14,647 | ||||||||||||||||||
% of total revenues |
32.2 | % | 24.6 | % | 23.2 | % | 28.4 | % | 23.3 | % | 23.3 | % | ||||||||||||
Interest (expense) income, net |
(862 | ) | (247 | ) | 3 | 6 | 4 | 3 | ||||||||||||||||
Other income, net |
7,692 | 205 | 227 | 2,320 | 180 | 78 | ||||||||||||||||||
Income before income tax expense (benefit) |
23,607 | 12,877 | 12,898 | 18,444 | 13,930 | 14,728 | ||||||||||||||||||
Income tax expense (benefit) |
4,668 | (27,583 | ) | (27,642 | ) | 3,060 | 841 | 5,843 | ||||||||||||||||
Net income |
$ | 18,939 | $ | 40,460 | $ | 40,540 | $ | 15,384 | $ | 13,089 | $ | 8,885 | ||||||||||||
Basic net income per common share |
$ | 0.86 | $ | 1.84 | $ | 1.84 | $ | 0.70 | $ | 0.59 | $ | 0.39 | ||||||||||||
Diluted net income per common share |
$ | 0.84 | $ | 1.82 | $ | 1.82 | $ | 0.69 | $ | 0.58 | $ | 0.39 | ||||||||||||
Basic weighted average common shares outstanding |
22,086,848 | 22,063,393 | 22,050,512 | 22,060,636 | 22,307,488 | 22,654,240 | ||||||||||||||||||
Diluted weighted average common shares outstanding |
22,551,862 | 22,333,399 | 22,323,551 | 22,372,786 | 22,620,707 | 22,967,192 | ||||||||||||||||||
Reconciliation of operating income to EBITDA (c): |
||||||||||||||||||||||||
Operating income |
$ | 16,777 | $ | 12,919 | $ | 12,668 | $ | 16,118 | $ | 13,746 | $ | 14,647 | ||||||||||||
Add back: depreciation, amortization and accretion |
3,618 | 4,032 | 4,226 | 5,899 | 6,698 | 7,304 | ||||||||||||||||||
EBITDA |
$ | 20,395 | $ | 16,951 | $ | 16,894 | $ | 22,017 | $ | 20,444 | $ | 21,951 | ||||||||||||
% of total revenues |
39.2 | % | 32.3 | % | 30.9 | % | 38.8 | % | 34.6 | % | 35.0 | % |
(a) | Slight variations in totals are due to rounding. | |
(b) | Wireless results were reduced by $343,000 for intercompany revenue and cost of products sold. | |
(c) | 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 | ||||||||||||||||||||||||
6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||||||
Units in service |
||||||||||||||||||||||||
Beginning units in service |
||||||||||||||||||||||||
Direct one-way |
1,597 | 1,645 | 1,692 | 1,749 | 1,804 | 1,881 | ||||||||||||||||||
Direct two-way |
102 | 106 | 109 | 121 | 126 | 133 | ||||||||||||||||||
Total direct |
1,699 | 1,751 | 1,801 | 1,870 | 1,930 | 2,014 | ||||||||||||||||||
Indirect one-way |
78 | 68 | 75 | 82 | 90 | 101 | ||||||||||||||||||
Indirect two-way |
51 | 70 | 74 | 75 | 79 | 67 | ||||||||||||||||||
Total indirect |
129 | 138 | 149 | 157 | 169 | 168 | ||||||||||||||||||
Total beginning units in service |
1,828 | 1,889 | 1,950 | 2,027 | 2,099 | 2,182 | ||||||||||||||||||
Gross placements |
||||||||||||||||||||||||
Direct one-way |
55 | 46 | 45 | 58 | 62 | 53 | ||||||||||||||||||
Direct two-way |
6 | 4 | 6 | 4 | 6 | 5 | ||||||||||||||||||
Total direct |
61 | 50 | 51 | 62 | 68 | 58 | ||||||||||||||||||
Indirect one-way |
2 | 2 | 2 | 3 | 3 | 3 | ||||||||||||||||||
Indirect two-way |
1 | 0 | 1 | 1 | 1 | 15 | ||||||||||||||||||
Total indirect |
3 | 2 | 3 | 4 | 4 | 18 | ||||||||||||||||||
Total gross placements |
64 | 52 | 54 | 66 | 72 | 76 | ||||||||||||||||||
Gross disconnects |
||||||||||||||||||||||||
Direct one-way |
(96 | ) | (94 | ) | (92 | ) | (115 | ) | (117 | ) | (130 | ) | ||||||||||||
Direct two-way |
(9 | ) | (8 | ) | (9 | ) | (16 | ) | (11 | ) | (12 | ) | ||||||||||||
Total direct |
(105 | ) | (102 | ) | (101 | ) | (131 | ) | (128 | ) | (142 | ) | ||||||||||||
Indirect one-way |
(6 | ) | 8 | (9 | ) | (10 | ) | (11 | ) | (14 | ) | |||||||||||||
Indirect two-way |
(2 | ) | (19 | ) | (5 | ) | (2 | ) | (5 | ) | (3 | ) | ||||||||||||
Total indirect |
(8 | ) | (11 | ) | (14 | ) | (12 | ) | (16 | ) | (17 | ) | ||||||||||||
Total gross disconnects |
(113 | ) | (113 | ) | (115 | ) | (143 | ) | (144 | ) | (159 | ) | ||||||||||||
Net gain / (loss) |
||||||||||||||||||||||||
Direct one-way |
(41 | ) | (48 | ) | (47 | ) | (57 | ) | (55 | ) | (77 | ) | ||||||||||||
Direct two-way |
(3 | ) | (4 | ) | (3 | ) | (12 | ) | (5 | ) | (7 | ) | ||||||||||||
Total direct |
(44 | ) | (52 | ) | (50 | ) | (69 | ) | (60 | ) | (84 | ) | ||||||||||||
Indirect one-way |
(4 | ) | 10 | (7 | ) | (7 | ) | (8 | ) | (11 | ) | |||||||||||||
Indirect two-way |
(1 | ) | (19 | ) | (4 | ) | (1 | ) | (4 | ) | 12 | |||||||||||||
Total indirect |
(5 | ) | (9 | ) | (11 | ) | (8 | ) | (12 | ) | 1 | |||||||||||||
Total net change |
(49 | ) | (61 | ) | (61 | ) | (77 | ) | (72 | ) | (83 | ) | ||||||||||||
Ending units in service |
||||||||||||||||||||||||
Direct one-way |
1,556 | 1,597 | 1,645 | 1,692 | 1,749 | 1,804 | ||||||||||||||||||
Direct two-way |
99 | 102 | 106 | 109 | 121 | 126 | ||||||||||||||||||
Total direct |
1,655 | 1,699 | 1,751 | 1,801 | 1,870 | 1,930 | ||||||||||||||||||
Indirect one-way |
74 | 78 | 68 | 75 | 82 | 90 | ||||||||||||||||||
Indirect two-way |
50 | 51 | 70 | 74 | 75 | 79 | ||||||||||||||||||
Total indirect |
124 | 129 | 138 | 149 | 157 | 169 | ||||||||||||||||||
Total ending units in service |
1,779 | 1,828 | 1,889 | 1,950 | 2,027 | 2,099 | ||||||||||||||||||
(a) | Slight variations in totals are due to rounding. |
For the three months ended | ||||||||||||||||||||||||
6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||||||
ARPU |
||||||||||||||||||||||||
Direct one-way |
$ | 8.10 | $ | 8.05 | $ | 8.05 | $ | 8.07 | $ | 8.05 | $ | 8.16 | ||||||||||||
Direct two-way |
22.05 | 22.23 | 22.57 | 23.11 | 23.55 | 23.61 | ||||||||||||||||||
Total direct |
8.92 | 8.89 | 8.92 | 9.01 | 9.06 | 9.17 | ||||||||||||||||||
Indirect one-way |
7.57 | 8.44 | 9.13 | 9.60 | 8.87 | 8.78 | ||||||||||||||||||
Indirect two-way |
4.77 | 4.31 | 3.98 | 4.09 | 4.25 | 4.84 | ||||||||||||||||||
Total indirect |
6.40 | 6.49 | 6.48 | 6.86 | 6.65 | 7.04 | ||||||||||||||||||
Total one-way |
8.08 | 8.07 | 8.09 | 8.14 | 8.09 | 8.19 | ||||||||||||||||||
Total two-way |
16.04 | 15.41 | 14.96 | 15.54 | 16.06 | 16.76 | ||||||||||||||||||
Total paging ARPU |
$ | 8.74 | $ | 8.72 | $ | 8.74 | $ | 8.85 | $ | 8.87 | $ | 9.00 | ||||||||||||
Gross disconnect rate (b) |
||||||||||||||||||||||||
Direct one-way |
-6.0 | % | -5.7 | % | -5.5 | % | -6.6 | % | -6.5 | % | -6.9 | % | ||||||||||||
Direct two-way |
-9.3 | % | -7.5 | % | -8.5 | % | -13.0 | % | -8.5 | % | -9.1 | % | ||||||||||||
Total direct |
-6.2 | % | -5.8 | % | -5.7 | % | -7.0 | % | -6.6 | % | -7.1 | % | ||||||||||||
Indirect one-way |
-8.1 | % | 11.9 | % | -12.1 | % | -12.5 | % | -12.8 | % | -13.7 | % | ||||||||||||
Indirect two-way |
-4.5 | % | -26.4 | % | -5.8 | % | -2.6 | % | -6.8 | % | -4.9 | % | ||||||||||||
Total indirect |
-6.6 | % | -8.1 | % | -8.9 | % | -7.7 | % | -9.9 | % | -10.1 | % | ||||||||||||
Total one-way |
-6.1 | % | -5.0 | % | -5.7 | % | -6.8 | % | -6.8 | % | -7.3 | % | ||||||||||||
Total two-way |
-7.6 | % | -15.2 | % | -7.4 | % | -9.0 | % | -7.9 | % | -7.7 | % | ||||||||||||
Total paging gross disconnect rate |
-6.2 | % | -6.0 | % | -5.9 | % | -7.0 | % | -6.9 | % | -7.3 | % | ||||||||||||
Net gain / loss rate (c) |
||||||||||||||||||||||||
Direct one-way |
-2.5 | % | -2.9 | % | -2.7 | % | -3.2 | % | -3.1 | % | -4.1 | % | ||||||||||||
Direct two-way |
-3.1 | % | -3.6 | % | -4.6 | % | -9.5 | % | -4.2 | % | -5.0 | % | ||||||||||||
Total direct |
-2.6 | % | -3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | ||||||||||||
Indirect one-way |
-5.3 | % | 14.6 | % | -9.8 | % | -9.2 | % | -9.8 | % | -10.5 | % | ||||||||||||
Indirect two-way |
-3.0 | % | -25.8 | % | -4.6 | % | -0.9 | % | -4.7 | % | 17.1 | % | ||||||||||||
Total indirect |
-4.3 | % | -6.6 | % | -7.2 | % | -5.1 | % | -7.4 | % | 0.7 | % | ||||||||||||
Total one-way |
-2.6 | % | -2.2 | % | -3.0 | % | -3.5 | % | -3.4 | % | -4.4 | % | ||||||||||||
Total two-way |
-3.1 | % | -12.7 | % | -4.6 | % | -6.1 | % | -4.4 | % | 2.5 | % | ||||||||||||
Total paging net (loss) gain rate |
-2.7 | % | -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 | ||||||||||||||||||||||||
6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||||||
Gross placement rate (b) |
||||||||||||||||||||||||
Healthcare |
4.5 | % | 3.3 | % | 3.4 | % | 3.9 | % | 4.4 | % | 3.5 | % | ||||||||||||
Government |
2.1 | % | 1.9 | % | 1.5 | % | 3.1 | % | 1.9 | % | 1.8 | % | ||||||||||||
Large enterprise |
2.1 | % | 2.3 | % | 2.2 | % | 1.9 | % | 2.6 | % | 2.1 | % | ||||||||||||
Other |
2.0 | % | 2.5 | % | 2.3 | % | 2.5 | % | 2.0 | % | 2.4 | % | ||||||||||||
Total direct |
3.6 | % | 2.9 | % | 2.8 | % | 3.4 | % | 3.5 | % | 2.9 | % | ||||||||||||
Total indirect |
2.3 | % | 1.6 | % | 1.7 | % | 2.6 | % | 2.5 | % | 10.9 | % | ||||||||||||
Total |
3.5 | % | 2.8 | % | 2.7 | % | 3.3 | % | 3.4 | % | 3.5 | % | ||||||||||||
Gross disconnect rate (b) |
||||||||||||||||||||||||
Healthcare |
-5.0 | % | -4.7 | % | -4.4 | % | -5.7 | % | -5.2 | % | -4.9 | % | ||||||||||||
Government |
-8.7 | % | -7.6 | % | -7.3 | % | -8.3 | % | -8.3 | % | -9.1 | % | ||||||||||||
Large enterprise |
-7.1 | % | -6.2 | % | -7.0 | % | -9.7 | % | -8.3 | % | -10.3 | % | ||||||||||||
Other |
-9.0 | % | -9.2 | % | -8.6 | % | -9.3 | % | -9.6 | % | -11.0 | % | ||||||||||||
Total direct |
-6.2 | % | -5.8 | % | -5.7 | % | -7.0 | % | -6.6 | % | -7.1 | % | ||||||||||||
Total indirect |
-6.6 | % | -8.1 | % | -8.9 | % | -7.7 | % | -9.9 | % | -10.1 | % | ||||||||||||
Total |
-6.2 | % | -6.0 | % | -5.9 | % | -7.0 | % | -6.9 | % | -7.3 | % | ||||||||||||
Net loss rate (b) |
||||||||||||||||||||||||
Healthcare |
-0.5 | % | -1.4 | % | -1.1 | % | -1.8 | % | -0.8 | % | -1.4 | % | ||||||||||||
Government |
-6.6 | % | -5.7 | % | -5.9 | % | -5.2 | % | -6.4 | % | -7.4 | % | ||||||||||||
Large enterprise |
-5.0 | % | -3.9 | % | -4.8 | % | -7.8 | % | -5.7 | % | -8.1 | % | ||||||||||||
Other |
-6.9 | % | -6.8 | % | -6.3 | % | -6.8 | % | -7.6 | % | -8.6 | % | ||||||||||||
Total direct |
-2.6 | % | -3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | ||||||||||||
Total indirect |
-4.3 | % | -6.6 | % | -7.2 | % | -5.1 | % | -7.4 | % | 0.7 | % | ||||||||||||
Total |
-2.7 | % | -3.2 | % | -3.2 | % | -3.8 | % | -3.5 | % | -3.8 | % | ||||||||||||
End of period units in service % of total (b) |
||||||||||||||||||||||||
Healthcare |
60.9 | % | 59.5 | % | 58.3 | % | 57.1 | % | 56.1 | % | 54.5 | % | ||||||||||||
Government |
12.6 | % | 13.1 | % | 13.5 | % | 13.9 | % | 14.1 | % | 14.4 | % | ||||||||||||
Large enterprise |
9.8 | % | 10.0 | % | 10.1 | % | 10.2 | % | 10.7 | % | 10.9 | % | ||||||||||||
Other |
9.7 | % | 10.3 | % | 10.8 | % | 11.2 | % | 11.4 | % | 12.1 | % | ||||||||||||
Total direct |
93.0 | % | 92.9 | % | 92.7 | % | 92.4 | % | 92.3 | % | 91.9 | % | ||||||||||||
Total indirect |
7.0 | % | 7.1 | % | 7.3 | % | 7.6 | % | 7.7 | % | 8.1 | % | ||||||||||||
Total |
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) gain rates |
For the three months ended | |||||||||||||||||||||||
6/30/11 | 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 |
74 | 79 | 84 | 88 | 95 | 101 | |||||||||||||||||
4 to 10 units |
45 | 48 | 52 | 54 | 58 | 62 | |||||||||||||||||
11 to 50 units |
106 | 114 | 123 | 130 | 140 | 149 | |||||||||||||||||
51 to 100 units |
68 | 72 | 76 | 79 | 86 | 92 | |||||||||||||||||
101 to 1,000 units |
411 | 424 | 436 | 456 | 483 | 499 | |||||||||||||||||
›1,000 units |
951 | 962 | 980 | 994 | 1,008 | 1,037 | |||||||||||||||||
Total |
1,655 | 1,699 | 1,751 | 1,801 | 1,870 | 1,930 | |||||||||||||||||
End of period units in service % of total direct |
|||||||||||||||||||||||
1 to 3 units |
4.4 | % | 4.7 | % | 4.8 | % | 4.9 | % | 5.1 | % | 5.2 | % | |||||||||||
4 to 10 units |
2.7 | % | 2.8 | % | 2.9 | % | 3.0 | % | 3.1 | % | 3.2 | % | |||||||||||
11 to 50 units |
6.4 | % | 6.7 | % | 7.0 | % | 7.2 | % | 7.5 | % | 7.7 | % | |||||||||||
51 to 100 units |
4.1 | % | 4.2 | % | 4.4 | % | 4.4 | % | 4.6 | % | 4.8 | % | |||||||||||
101 to 1,000 units |
24.8 | % | 25.0 | % | 24.9 | % | 25.3 | % | 25.8 | % | 25.9 | % | |||||||||||
›1,000 units |
57.6 | % | 56.6 | % | 56.0 | % | 55.2 | % | 53.9 | % | 53.2 | % | |||||||||||
Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Account size net loss rate |
|||||||||||||||||||||||
1 to 3 units |
-6.3 | % | -6.2 | % | -4.8 | % | -7.0 | % | -5.8 | % | -7.6 | % | |||||||||||
4 to 10 units |
-6.8 | % | -6.2 | % | -5.0 | % | -7.5 | % | -6.0 | % | -5.3 | % | |||||||||||
11 to 50 units |
-6.5 | % | -7.7 | % | -5.1 | % | -7.3 | % | -6.1 | % | -5.8 | % | |||||||||||
51 to 100 units |
-5.4 | % | -5.7 | % | -4.2 | % | -7.9 | % | -6.5 | % | -4.4 | % | |||||||||||
101 to 1,000 units |
-3.3 | % | -2.7 | % | -4.2 | % | -5.6 | % | -3.3 | % | -3.7 | % | |||||||||||
›1,000 units |
-1.0 | % | -1.8 | % | -1.5 | % | -1.3 | % | -1.9 | % | -3.7 | % | |||||||||||
Total |
-2.6 | % | -3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | |||||||||||
Account size ARPU |
|||||||||||||||||||||||
1 to 3 units |
$ | 15.74 | $ | 15.57 | $ | 15.57 | $ | 15.48 | $ | 15.37 | $ | 15.28 | |||||||||||
4 to 10 units |
14.65 | 14.53 | 14.56 | 14.51 | 14.35 | 14.37 | |||||||||||||||||
11 to 50 units |
12.38 | 12.19 | 12.26 | 12.18 | 12.01 | 11.86 | |||||||||||||||||
51 to 100 units |
10.68 | 10.59 | 10.72 | 10.69 | 10.76 | 10.67 | |||||||||||||||||
101 to 1,000 units |
9.10 | 9.00 | 9.00 | 8.82 | 8.93 | 9.00 | |||||||||||||||||
›1,000 units |
7.49 | 7.47 | 7.43 | 7.64 | 7.63 | 7.80 | |||||||||||||||||
Total |
$ | 8.92 | $ | 8.89 | $ | 8.92 | $ | 9.01 | $ | 9.06 | $ | 9.17 | |||||||||||
Cellular revenue |
|||||||||||||||||||||||
Number of activations |
4,370 | 2,191 | 1,990 | 1,885 | 1,885 | 2,354 | |||||||||||||||||
Revenue from cellular services (000s) |
$ | 1,199 | $ | 684 | $ | 499 | $ | 532 | $ | 624 | $ | 708 | |||||||||||
(a) | Slight variations in totals are due to rounding. |
For the three months ended | ||||||||||||||||||||||||
6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||||||
Cost of products sold |
$ | 1,171 | $ | 663 | $ | 1,051 | $ | 819 | $ | 1,134 | $ | 1,209 | ||||||||||||
Service, rental and maintenance |
||||||||||||||||||||||||
Site rent |
5,962 | 6,881 | 7,629 | 8,042 | 8,283 | 9,079 | ||||||||||||||||||
Telecommunications |
2,868 | 3,099 | 3,066 | 3,341 | 3,467 | 3,831 | ||||||||||||||||||
Payroll and related |
4,124 | 4,293 | 4,319 | 4,199 | 4,444 | 4,586 | ||||||||||||||||||
Stock based compensation |
6 | 5 | 6 | 5 | 7 | 6 | ||||||||||||||||||
Other |
1,251 | 1,538 | 1,201 | 1,234 | 974 | 1,439 | ||||||||||||||||||
Total service, rental and maintenance |
14,211 | 15,816 | 16,221 | 16,821 | 17,175 | 18,941 | ||||||||||||||||||
Selling and marketing |
||||||||||||||||||||||||
Payroll and related |
2,293 | 2,494 | 2,627 | 2,659 | 2,814 | 2,964 | ||||||||||||||||||
Commissions |
1,285 | 1,002 | 1,007 | 1,163 | 1,367 | 1,164 | ||||||||||||||||||
Stock based compensation |
16 | 17 | 17 | 17 | 22 | 17 | ||||||||||||||||||
Other |
352 | 320 | 264 | 221 | 191 | 412 | ||||||||||||||||||
Total selling and marketing |
3,946 | 3,833 | 3,915 | 4,060 | 4,394 | 4,557 | ||||||||||||||||||
General and administrative |
||||||||||||||||||||||||
Payroll and related |
5,397 | 5,677 | 6,118 | 5,719 | 6,621 | 6,912 | ||||||||||||||||||
Stock based compensation |
215 | 203 | 223 | 15 | 242 | 240 | ||||||||||||||||||
Bad debt |
(150 | ) | 393 | 547 | 571 | 594 | 713 | |||||||||||||||||
Facility rent |
723 | 726 | 856 | 992 | 1,326 | 1,354 | ||||||||||||||||||
Telecommunications |
394 | 443 | 480 | 518 | 603 | 657 | ||||||||||||||||||
Outside services |
2,427 | 5,186 | 2,385 | 2,463 | 3,185 | 3,267 | ||||||||||||||||||
Taxes, licenses and permits |
2,190 | 1,332 | 1,097 | 1,276 | 1,836 | 1,591 | ||||||||||||||||||
Other |
1,155 | 1,280 | 3,123 | 1,353 | 1,517 | 1,078 | ||||||||||||||||||
Total general and administrative |
12,351 | 15,240 | 14,829 | 12,907 | 15,924 | 15,812 | ||||||||||||||||||
Severance and restructuring |
17 | 33 | 1,738 | 86 | 41 | 314 | ||||||||||||||||||
Depreciation, amortization and accretion |
3,618 | 4,032 | 4,226 | 5,899 | 6,698 | 7,304 | ||||||||||||||||||
Operating expenses |
$ | 35,314 | $ | 39,617 | $ | 41,980 | $ | 40,592 | $ | 45,366 | $ | 48,137 | ||||||||||||
Capital expenditures |
$ | 1,721 | $ | 1,494 | $ | 4,720 | $ | 1,730 | $ | 563 | $ | 1,725 |
(a) | Slight variations in totals are due to rounding. |