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Exhibit 99.1

 

LOGO

NEWS RELEASE

 

 

   

 

     

 

 

FOR IMMEDIATE RELEASE        CONTACT:    Bob Lougee (800) 611-8488
Monday, July 30, 2012         bob.lougee@usamobility.com

USA Mobility Reports Second Quarter Operating Results;

Board Declares Quarterly Dividend, Renews Stock Repurchase Plan

Wireless Trends Show Significant Improvement;

Software Revenue, Bookings and Backlog Advance;

Operating Expenses Reduced; Debt Repaid

Springfield, VA (July 30, 2012) — 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 second quarter ended June 30, 2012. In addition, the Company’s Board of Directors declared a quarterly dividend of $0.125 per share, payable on September 7, 2012 to stockholders of record on August 17, 2012. The Board also authorized renewal of the Company’s previously suspended stock repurchase program.

Consolidated revenue for the second quarter was $56.0 million, compared to $56.7 million in the first quarter and $65.2 million in the second quarter of 2011. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $42.8 million in the second quarter, compared to $44.3 million in the first quarter and $52.1 million in the second quarter of 2011. Second quarter revenue from the Software business (Amcom Software) was $13.2 million, compared to $12.5 million in the first quarter and $13.1 million in the year-earlier quarter.

Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $18.4 million, or 32.9 percent of revenue, compared to $18.8 million, or 33.1 percent of revenue, in the first quarter and $21.5 million, or 32.9 percent of revenue, in the year-earlier quarter. Second quarter EBITDA included $16.8 million from Wireless and $1.6 million from Software, compared to $20.4 million and $1.1 million, respectively, in the second quarter of 2011.

Net income for the second quarter was $8.4 million, or $0.37 per fully diluted share, compared to $18.6 million, or $0.82 per fully diluted share, in the second quarter of 2011. Net income in the second quarter of 2011 benefited from the receipt of $7.5 million from the sale of certain narrow band PCS licenses and a reduction in income tax expense of $4.9 million related to a reduction in our deferred income tax asset valuation allowance, partially offset by purchase accounting adjustments of $2.6 million. Excluding these adjustments, net income for the second quarter of 2011 would have been $10.0 million, or $0.44 per fully diluted share.


Second quarter results included:

Wireless

 

   

Net unit losses improved to 34,000 in the second quarter from 51,000 in the first quarter and 49,000 in the second quarter of 2011. The quarterly rate of net unit loss improved to an 8-year low of 2.1 percent from 2.7 percent in the year-earlier quarter, while the annual rate of unit erosion also reached a new low of 11.0 percent versus 11.5 percent in the first quarter and 12.2 percent in the year-ago quarter. Units in service at June 30, 2012 totaled 1,583,000, compared to 1,779,000 a year earlier.

 

   

The quarterly rate of revenue erosion was 3.3 percent, compared to 4.9 percent in the first quarter and 0.8 percent in the second quarter of 2011, while the annual rate of revenue erosion was 17.9 percent versus 11.9 percent in the year-earlier quarter.

 

   

Total ARPU (average revenue per unit) was $8.45 in the second quarter, compared to $8.50 in the first quarter and $8.74 in the second quarter of 2011.

 

   

Second quarter EBITDA margin for Wireless was 39.2 percent, compared to 39.5 percent in the first quarter and 39.2 percent in the year-earlier quarter.

Software

 

   

Bookings for the second quarter were $15.1 million, compared to $12.4 million in the first quarter and $15.2 million in the year-earlier quarter.

 

   

The backlog was $25.4 million at June 30, 2012, compared to $23.7 million at March 31, 2012, and $20.5 million at June 30, 2011.

 

   

Second quarter Software revenue of $13.2 million included $6.5 million of maintenance revenue and $6.7 million of operations revenue, compared to $6.4 million and $6.1 million, respectively, of the $12.5 million in Software revenue for the prior quarter.

 

   

The renewal rate for maintenance in the second quarter was 98.8 percent.

Total Company

 

   

Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $37.5 million in the second quarter, with $26.0 million for Wireless and $11.5 million for Software, compared to $38.0 million in the first quarter, with $26.8 million for Wireless and $11.2 million for Software.

 

   

Capital expenses were $2.9 million, compared to $1.9 million in the second quarter of 2011.

 

   

Dividends paid to stockholders totaled $5.5 million for the second quarter.


   

On April 6, 2012, the Company repaid its outstanding debt balance of $3.3 million and once again became a debt-free company.

 

   

The Company’s cash balance was $41.0 million at June 30, 2012.

 

   

The number of full-time equivalent employees at June 30, 2012 totaled 686, including 411 for Wireless and 275 for Software, compared to a total of 685 at March 31, 2012.

Vincent D. Kelly, president and chief executive officer, said: “USA Mobility again reported excellent operating results for the quarter as both our Wireless and Software businesses made substantial progress. On the Wireless side, our quarterly and annual rates of subscriber erosion reached their best levels in nearly eight years as overall trends continued to improve. In addition, we exceeded all key performance goals for gross additions, unit churn, and ARPU. Our Software business also performed well during the quarter as bookings increased from the prior quarter and our backlog surpassed $25 million. Amcom also made important advances in its product and business development, including the acquisition in May of IMCO Technologies’ Critical Test Results Management solution, which allows hospitals to improve patient care and safety by expediting the delivery of critical test results to caregivers. At the same time, our combined business continued to reduce expenses, maintain strong operating margins, and generate sufficient cash flow to again return capital to stockholders in the form of dividend distributions.”

Kelly said Wireless sales and marketing efforts continued to focus on the core market segments of Healthcare, Government and Large Enterprise during the quarter. “These core segments represented approximately 91.0 percent of our direct subscriber base and 86.7 percent of our direct paging revenue at June 30th, compared to 89.5 percent and 84.3 percent, respectively, a year earlier. Healthcare continued to be our largest and best performing market segment with the highest percentage of direct gross additions (83.3 percent) and the lowest rate of direct net unit loss (0.2 percent) as healthcare providers continue to benefit from the reliability and cost advantages of paging for their most critical messaging needs.”

With regard to Software results, Kelly said: “After a slower than expected first quarter, Amcom delivered an increase in quarter-over-quarter revenue in the second quarter and a growing backlog and sales pipeline at June 30th. We booked most of our business in the North American healthcare market, including a large East Coast teaching hospital. However, we also gained further penetration of the hospitality segment with the addition of a major hotel group. Customers from multiple business segments continue to choose Amcom due to the breadth of our critical communications solutions, which range from call center management, clinical alerting middleware, critical smartphone communications and emergency notification.”

Kelly added: “As previously announced, we also made several important executive management changes during the quarter. Jim Boso was promoted to president of USA Mobility Wireless, while Kate Bolseth was named chief operating officer and Sean Collins executive vice president of selling and marketing at Amcom Software. All three executives have performed exceptionally well for us in the past and we expect them to continue to achieve further success going forward.”


Commenting on the Company’s revised quarterly dividend rate of $0.125 per share, a reduction from the previous rate of $0.25 per share, Kelly stated: “As noted on our fourth quarter earnings call earlier this year, the Board’s decision to revise the cash dividend rate was made for the principal purpose of preserving sufficient capital to allow us to make acquisitions in our Software business and create opportunities for long-term growth. Notwithstanding our excellent current results, we recognize that ongoing Wireless subscriber losses will continue to put pressure on future operating margins and cash flows. As a result, we believe the revised dividend rate will help preserve capital for long-term growth opportunities. We also believe it better reflects our projected cash flows over the next several years, strengthens the Company’s financial position while maintaining a significant yield on our common stock, and allows us to retain strategic capital as we continue to reposition the Company for the future.”

Kelly said the Board approved renewal of the Company’s stock repurchase plan, which was adopted in 2008 and suspended in March 2011 at the time of the Amcom acquisition. The plan, which extends through December 31, 2013, resets the repurchase authority to $25 million as of August 1, 2012. Since the buy back program began, the Company has repurchased 5.6 million shares of its common stock.

Shawn E. Endsley, chief financial officer, said the Company continued to reduce operating expenses in the second quarter. “Recurring operating expenses (excluding depreciation, amortization and accretion) for Wireless decreased 17.9 percent from the year-earlier quarter,” he noted, “and again exceeded the adjusted annual rate of Wireless revenue decline. In addition, Wireless revenue for the quarter remained strong, driven largely by a stable ARPU and improved unit churn.” Endsley said the Company repaid its outstanding $3.3 million debt balance on April 6, 2012, noting that “with the repayment USA Mobility is once again a debt-free company.”

Regarding financial guidance for 2012, Endsley said the Company is revising its prior guidance for consolidated results for the full year, with total revenues expected to range from $215 million to $227 million, operating expenses (excluding depreciation, amortization and accretion) to range from $154 million to $162 million, and capital expenses to range from $7.1 million to $9.5 million. “We have also revised our revenue guidance mix between Wireless and Software based on our outlook for each business. Accordingly, we now expect Wireless revenue to range from $162 million to $170 million, an increase from the prior guidance of $156 million to $166 million, and Software revenue to range from $53 million to $57 million, a reduction from the previous guidance of $58 million to $66 million. We have also adjusted the operating expense guidance for Wireless to a range of $106 million to $110 million, a reduction from the original range of $108 million to $112 million. Our Software operating expenses have been adjusted slightly to a range of $48 million to $52 million. Finally, we have slightly adjusted the capital expense range for our Software business to $0.1 million to $0.5 million from the previous range of $0.5 million to $1.0 million.”


* * * * * * * * *

USA Mobility plans to host a conference call for investors on its second quarter results at 10:00 a.m. Eastern Time on Tuesday, July 31, 2012. Dial-in numbers for the call are 719-234-0008 or 888-428-9496. The pass code for the call is 3467154. A replay of the call will be available from 1:00 p.m. ET on July 31 until 11:59 p.m. on Tuesday August 14. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 3467154.

* * * * * * * * *

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. In addition, through its Amcom Software subsidiary, it provides mission critical unified communications solutions for hospitals, contact centers, emergency management, mobile event notification and messaging. As a single-source provider, USA Mobility’s focus is on the business-to-business marketplace and supplying 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 also offers mobile voice and data services through Sprint Nextel and T-Mobile, 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 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, the ability to continue to reduce operating expenses, future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, government regulation, reliance upon third-party providers for certain equipment and services, as well as other risks described from time to time in periodic reports and registration statements filed with the Securities and Exchange Commission. Although USA Mobility believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. USA Mobility disclaims any intent or obligation to update any forward-looking statements.

Tables to Follow


USA MOBILITY, INC.

CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)

(In thousands, except share, per share amounts and ARPU)

 

     For the six months ended June 30,  
     2012     2011  
     Wireless     Software     Total     Wireless     Software     Total  

Revenue:

            

Paging service

   $ 82,423      $ —        $ 82,423      $ 95,947      $ —        $ 95,947   

Cellular

     563        —          563        1,883        —          1,883   

Product and related sales (c)

     3,456        25,648        29,104        5,149        17,879        23,028   

Other

     606        —          606        1,648        —          1,648   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     87,048        25,648        112,696        104,627        17,879        122,506   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

            

Cost of products sold (c)

     329        9,703        10,032        1,834        7,674        9,508   

Service, rental and maintenance (c)

     23,498        4,697        28,195        30,027        2,625        32,652   

Selling and marketing

     6,020        5,552        11,572        7,779        3,733        11,512   

General and administrative

     22,934        2,729        25,663        27,591        1,817        29,408   

Severance and restructuring

     9        37        46        50        —          50   

Depreciation, amortization and accretion

     5,669        3,452        9,121        7,650        2,187        9,837   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     58,459        26,170        84,629        74,931        18,036        92,967   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     67.2     102.0     75.1     71.6     100.9     75.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     28,589        (522     28,067        29,696        (157     29,539   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     32.8     -2.0     24.9     28.4     -0.9     24.1

Interest expense, net

     (254     —          (254     (1,109     (9     (1,118

Other income (expense), net

     393        (19     374        7,897        (77     7,820   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax (expense) benefit

     28,728        (541     28,187        36,484        (243     36,241   

Income tax (expense) benefit

     (11,491     212        (11,279     22,915        90        23,005   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 17,237      $ (329   $ 16,908      $ 59,399      $ (153   $ 59,246   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

       $ 0.76          $ 2.68   
      

 

 

       

 

 

 

Diluted net income per common share

       $ 0.75          $ 2.64   
      

 

 

       

 

 

 

Basic weighted average common shares outstanding

         22,118,470            22,075,185   
      

 

 

       

 

 

 

Diluted weighted average common shares outstanding

         22,601,603            22,443,417   
      

 

 

       

 

 

 

Reconciliation of operating income (loss) to EBITDA (d):

            

Operating income (loss)

   $ 28,589      $ (522   $ 28,067      $ 29,696      $ (157   $ 29,539   

Add back: depreciation, amortization and accretion

     5,669        3,452        9,121        7,650        2,187        9,837   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 34,258      $ 2,930      $ 37,188      $ 37,346      $ 2,030      $ 39,376   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     39.4     11.4     33.0     35.7     11.4     32.1

Key statistics:

            

Units in service

     1,583        —          1,583        1,779        —          1,779   

Average revenue per unit (ARPU)

   $ 8.45      $ —        $ 8.45      $ 8.72      $ —        $ 8.72   

Bookings

   $ —        $ 27,502      $ 27,502      $ —        $ 18,485      $ 18,485   

Backlog

   $ —        $ 25,353      $ 25,353      $ —        $ 20,478      $ 20,478   

 

(a) Slight variations in totals are due to rounding.
(b) Includes consolidated results of operations of USA Mobility Wireless, Inc. (“Wireless”) and Amcom Software, Inc. (“Software”). Software operations reflect financial results from March 3, 2011, the acquisition date.
(c) Wireless results reflect eliminations for intercompany revenue and expenses.
(d) EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only.


USA MOBILITY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (a)

(In thousands)

 

     6/30/12      12/31/11  
     (Unaudited)         

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 40,968       $ 53,655   

Accounts receivable, net

     20,629         20,523   

Prepaid expenses and other

     3,995         4,338   

Inventory

     2,799         2,268   

Escrow receivables

     7,693         14,819   

Deferred income tax assets, net

     3,733         8,617   
  

 

 

    

 

 

 

Total current assets

     79,817         104,220   

Property and equipment, net

     21,262         22,421   

Goodwill

     132,561         130,968   

Other intangible assets, net

     37,116         38,757   

Deferred income tax assets, net

     45,756         51,600   

Other assets

     1,883         2,094   
  

 

 

    

 

 

 

Total assets

   $ 318,395       $ 350,060   
  

 

 

    

 

 

 

Liabilities and stockholders’ equity

     

Current liabilities:

     

Accounts payable and accrued liabilities

   $ 12,939       $ 12,394   

Accrued compensation and benefits

     13,101         12,854   

Consideration payable

     7,693         14,819   

Customer deposits

     1,938         1,806   

Deferred revenue

     14,546         14,693   
  

 

 

    

 

 

 

Total current liabilities

     50,217         56,566   

Long-term debt, net of current portion

     —           28,250   

Deferred revenue

     511         581   

Other long-term liabilities

     8,641         12,223   
  

 

 

    

 

 

 

Total liabilities

     59,369         97,620   
  

 

 

    

 

 

 

Commitments and contingencies

     

Stockholders’ equity:

     

Preferred stock

     —           —     

Common stock

     2         2   

Additional paid-in capital

     132,473         131,612   

Retained earnings

     126,551         120,826   
  

 

 

    

 

 

 

Total stockholders’ equity

     259,026         252,440   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 318,395       $ 350,060   
  

 

 

    

 

 

 

 

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


USA MOBILITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)

(Unaudited and in thousands)

 

     For the six months ended  
     6/30/12     6/30/11  

Cash flows from operating activities:

    

Net income

   $ 16,908      $ 59,246   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation, amortization and accretion

     9,121        9,837   

Amortization of deferred financing costs

     129        273   

Deferred income tax expense (benefit)

     10,728        (23,371

Amortization of stock based compensation

     442        679   

Provisions for doubtful accounts, service credits and other

     780        490   

Settlement of non-cash transaction taxes

     (243     308   

Gain on disposals of property and equipment

     (146     (37

Gain on disposals of narrow band PCS licenses

     —          (7,500

Changes in assets and liabilities:

    

Accounts receivable

     (876     (1,600

Prepaid expenses, intangibles and other assets

     161        1,669   

Accounts payable and accrued liabilities

     (3,160     (8,935

Customer deposits and deferred revenue

     (85     1,777   
  

 

 

   

 

 

 

Net cash provided by operating activities

     33,759        32,836   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     (4,439     (3,355

Proceeds from disposals of property and equipment

     318        35   

Proceeds from disposals of narrow band PCS licenses

     —          7,500   

Acquisitions, net of cash acquired

     (3,000     (134,217
  

 

 

   

 

 

 

Net cash used in investing activities

     (7,121     (130,037
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Issuance of debt

     —          24,044   

Repayment of debt

     (28,250     (14,125

Deferred financing costs

     —          (1,408

Cash dividends to stockholders

     (11,075     (11,060
  

 

 

   

 

 

 

Net cash used in financing activities

     (39,325     (2,549
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (12,687     (99,750

Cash and cash equivalents, beginning of period

     53,655        129,220   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 40,968      $ 29,470   
  

 

 

   

 

 

 

Supplemental disclosure:

    

Interest paid

   $ 283      $ 685   
  

 

 

   

 

 

 

Income taxes paid

   $ 936      $ 817   
  

 

 

   

 

 

 

Non-cash financing activities

   $ —        $ 27,750   
  

 

 

   

 

 

 

 

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


USA MOBILITY, INC.

CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)

(Unaudited and in thousands, except share, per share amounts and ARPU)

 

     For the three months ended June 30,  
     2012     2011  
     Wireless     Software     Total     Wireless     Software     Total  

Revenue:

            

Paging service

   $ 40,548      $ —        $ 40,548      $ 47,319      $ —        $ 47,319   

Cellular

     286        —          286        1,199        —          1,199   

Product and related sales (c)

     1,669        13,178        14,847        2,805        13,080        15,885   

Other

     280        —          280        768        —          768   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     42,783        13,178        55,961        52,091        13,080        65,171   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

            

Cost of products sold

     156        5,060        5,216        1,171        5,907        7,078   

Service, rental and maintenance (c)

     11,464        2,428        13,892        14,211        1,976        16,187   

Selling and marketing

     2,972        2,947        5,919        3,946        2,642        6,588   

General and administrative

     11,426        1,068        12,494        12,351        1,489        13,840   

Severance and restructuring

     —          24        24        17        —          17   

Depreciation, amortization and accretion

     2,854        1,752        4,606        3,618        1,680        5,298   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     28,872        13,279        42,151        35,314        13,694        49,008   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     67.5     100.8     75.3     67.8     104.7     75.2

Operating income (loss)

     13,911        (101     13,810        16,777        (614     16,163   

% of total revenue

     32.5     -0.8     24.7     32.2     -4.7     24.8

Interest expense, net

     (66     —          (66     (862     —          (862

Other income (expense), net

     439        (3     436        7,692        (26     7,666   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax (expense) benefit

     14,284        (104     14,180        23,607        (640     22,967   

Income tax (expense) benefit

     (5,772     39        (5,733     (4,668     296        (4,372
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 8,512      $ (65   $ 8,447      $ 18,939      $ (344   $ 18,595   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

       $ 0.38          $ 0.84   
      

 

 

       

 

 

 

Diluted net income per common share

       $ 0.37          $ 0.82   
      

 

 

       

 

 

 

Basic weighted average common shares outstanding

         22,130,397            22,086,848   
      

 

 

       

 

 

 

Diluted weighted average common shares outstanding

         22,613,517            22,551,862   
      

 

 

       

 

 

 

Reconciliation of operating income (loss) to EBITDA (d):

            

Operating income (loss)

   $ 13,911      $ (101   $ 13,810      $ 16,777      $ (614   $ 16,163   

Add back: depreciation, amortization and accretion

     2,854        1,752        4,606        3,618        1,680        5,298   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 16,765      $ 1,651      $ 18,416      $ 20,395      $ 1,066      $ 21,461   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     39.2     12.5     32.9     39.2     8.1     32.9

Key statistics:

            

Units in service

     1,583        —          1,583        1,779        —          1,779   

Average revenue per unit (ARPU)

   $ 8.45      $ —        $ 8.45      $ 8.74      $ —        $ 8.74   

Bookings

   $ —        $ 15,085      $ 15,085      $ —        $ 15,158      $ 15,158   

Backlog

   $ —        $ 25,353      $ 25,353      $ —        $ 20,478      $ 20,478   

 

(a) Slight variations in totals are due to rounding.
(b) Includes consolidated results of operations of USA Mobility Wireless, Inc. (“Wireless”) and Amcom Software, Inc. (“Software”). Software operations reflect financial results from March 3, 2011, the acquisition date.
(c) Wireless results reflect eliminations of intercompany revenue and expenses.
(d) EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only.


USA MOBILITY, INC.

CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b)

(Unaudited and in thousands, except share, per share amounts and ARPU)

 

    For the three months ended  
    6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

Revenues:

           

Paging service

  $ 40,548      $ 41,875      $ 43,249      $ 45,121      $ 47,319      $ 48,628   

Cellular

    286        277        414        315        1,199        684   

Product and related sales

    14,847        14,257        14,847        15,464        15,885        7,143   

Other

    280        326        421        570        768        880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    55,961        56,735        58,931        61,470        65,171        57,335   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

           

Cost of products sold

    5,216        4,816        5,430        5,951        7,078        2,430   

Service, rental and maintenance

    13,892        14,303        14,478        15,217        16,187        16,465   

Selling and marketing

    5,919        5,653        5,851        5,927        6,588        4,924   

General and administrative

    12,494        13,169        13,610        13,077        13,840        15,568   

Severance and restructuring

    24        22        1,215        28        17        33   

Depreciation, amortization and accretion

    4,606        4,515        4,417        5,080        5,298        4,539   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    42,151        42,478        45,001        45,280        49,008        43,959   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenues

    75.3     74.9     76.4     73.7     75.2     76.7

Operating income

    13,810        14,257        13,930        16,190        16,163        13,376   

% of total revenues

    24.7     25.1     23.6     26.3     24.8     23.3

Interest expense, net

    (66     (188     (404     (732     (862     (256

Other income (expense), net

    436        (62     131        (1     7,666        154   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax (expense) benefit

    14,180        14,007        13,657        15,457        22,967        13,274   

Income tax (expense) benefit

    (5,733     (5,545     5,289        (5,010     (4,372     27,377   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 8,447      $ 8,462      $ 18,946      $ 10,447      $ 18,595      $ 40,651   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

  $ 0.38      $ 0.38      $ 0.86      $ 0.47      $ 0.84      $ 1.84   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per common share

  $ 0.37      $ 0.37      $ 0.84      $ 0.46      $ 0.82      $ 1.82   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted average common shares outstanding

    22,130,397        22,106,543        22,094,197        22,090,913        22,086,848        22,063,393   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average common shares outstanding

    22,613,517        22,589,483        22,577,312        22,573,064        22,551,862        22,333,399   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of operating income to EBITDA (c):

           

Operating income

  $ 13,810      $ 14,257      $ 13,930      $ 16,190      $ 16,163      $ 13,376   

Add back: depreciation, amortization and accretion

    4,606        4,515        4,417        5,080        5,298        4,539   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

  $ 18,416      $ 18,772      $ 18,347      $ 21,270      $ 21,461      $ 17,915   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenues

    32.9     33.1     31.1     34.6     32.9     31.2

Key statistics:

           

Units in service

    1,583        1,617        1,668        1,721        1,779        1,828   

Average revenue per unit (ARPU)

  $ 8.45      $ 8.50      $ 8.51      $ 8.59      $ 8.74      $ 8.72   

Bookings

  $ 15,085      $ 12,417      $ 15,213      $ 14,188      $ 15,158      $ 3,327   

Backlog

  $ 25,353      $ 23,747      $ 23,712      $ 21,313      $ 20,478      $ 18,869   

 

(a) Slight variations in totals are due to rounding.
(b) Software operations reflect financial results from March 3, 2011, the acquisition date.
(c) EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only.


USA MOBILITY, INC.

CONSOLIDATED OPERATING EXPENSES

SUPPLEMENTAL INFORMATION (a), (b)

(Unaudited and in thousands)

 

     For the three months ended  
     6/30/12     3/31/12      12/31/11      9/30/11      6/30/11     3/31/11  

Cost of products sold

               

Payroll and related

   $ 2,324      $ 2,368       $ 2,277       $ 2,537       $ 2,156      $ 677   

Cost of sales

     2,434        2,037         2,724         3,132         4,263        1,536   

Other

     458        411         429         282         659        217   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total cost of products sold

     5,216        4,816         5,430         5,951         7,078        2,430   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Service, rental and maintenance

               

Site rent

     4,421        4,791         5,002         5,438         5,962        6,881   

Telecommunications

     2,346        2,312         2,598         2,732         2,880        3,102   

Payroll and related

     5,360        5,529         5,279         5,578         5,562        4,769   

Stock based compensation

     6        6         6         6         6        5   

Other

     1,759        1,665         1,593         1,463         1,777        1,708   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total service, rental and maintenance

     13,892        14,303         14,478         15,217         16,187        16,465   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Selling and marketing

               

Payroll and related

     3,544        3,559         3,306         3,593         3,567        2,904   

Commissions

     1,343        1,253         1,539         1,443         1,948        1,414   

Stock based compensation

     18        16         16         16         16        17   

Other

     1,014        825         990         875         1,057        589   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total selling and marketing

     5,919        5,653         5,851         5,927         6,588        4,924   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

General and administrative

               

Payroll and related

     5,972        6,490         6,268         5,778         6,781        6,072   

Stock based compensation

     (19     415         415         392         432        203   

Bad debt

     270        234         363         346         (80     416   

Facility rent

     868        806         942         1,041         1,035        823   

Telecommunications

     443        412         440         494         490        470   

Outside services

     2,458        2,447         2,079         2,496         2,533        5,228   

Taxes, licenses and permits

     1,426        1,501         1,445         1,327         2,190        1,332   

Other

     1,076        864         1,658         1,203         459        1,024   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total general and administrative

     12,494        13,169         13,610         13,077         13,840        15,568   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Severance and restructuring

     24        22         1,215         28         17        33   

Depreciation, amortization and accretion

     4,606        4,515         4,417         5,080         5,298        4,539   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating expenses

   $ 42,151      $ 42,478       $ 45,001       $ 45,280       $ 49,008      $ 43,959   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Capital expenditures

   $ 2,888      $ 1,551       $ 2,818       $ 1,779       $ 1,854      $ 1,501   

 

(a) Slight variations in totals are due to rounding.
(b) Software operations have been included from March 3, 2011, the acquisition date.


USA MOBILITY, INC. (WIRELESS)

UNITS IN SERVICE ACTIVITY (a)

(Unaudited and in thousands)

 

     For the three months ended  
     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

Units in service

            

Beginning units in service

            

Direct one-way

     1,423        1,465        1,510        1,559        1,599        1,645   

Direct two-way

     85        90        93        97        100        106   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     1,508        1,555        1,603        1,656        1,699        1,751   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     60        63        68        71        75        68   

Indirect two-way

     49        50        50        52        54        70   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     109        113        118        123        129        138   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total beginning units in service

     1,617        1,668        1,721        1,779        1,828        1,889   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross placements

            

Direct one-way

     49        41        39        50        56        47   

Direct two-way

     4        3        4        5        5        3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     53        44        43        55        61        50   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     2        1        2        3        3        1   

Indirect two-way

     —          —          —          —          2        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     2        1        2        3        5        1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross placements

     55        45        45        58        66        51   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnects

            

Direct one-way

     (77     (83     (84     (99     (94     (93

Direct two-way

     (7     (8     (7     (9     (10     (9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     (84     (91     (91     (108     (104     (102
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     (4     (4     (7     (6     (10     6   

Indirect two-way

     (1     (1     —          (2     (1     (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     (5     (5     (7     (8     (11     (10
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross disconnects

     (89     (96     (98     (116     (115     (112
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain

            

Direct one-way

     (28     (42     (45     (49     (38     (46

Direct two-way

     (3     (5     (3     (4     (5     (6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     (31     (47     (48     (53     (43     (52
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     (2     (3     (5     (3     (7     7   

Indirect two-way

     (1     (1     —          (1     1        (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     (3     (4     (5     (4     (6     (9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net change

     (34     (51     (53     (58     (49     (60
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending units in service

            

Direct one-way

     1,395        1,423        1,465        1,510        1,559        1,599   

Direct two-way

     82        85        90        93        97        100   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     1,477        1,508        1,555        1,603        1,656        1,699   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     58        60        63        68        71        75   

Indirect two-way

     48        49        50        50        52        54   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     106        109        113        118        123        129   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ending units in service

     1,583        1,617        1,668        1,721        1,779        1,828   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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


USA MOBILITY, INC. (WIRELESS)

AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)

(Unaudited)

 

     For the three months ended  
     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

ARPU

            

Direct one-way

   $ 7.89      $ 7.91      $ 7.90      $ 7.97      $ 8.10      $ 8.05   

Direct two-way

     20.88        21.08        21.27        21.60        22.05        22.23   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     8.62        8.67        8.68        8.77        8.92        8.89   

Indirect one-way

     7.48        7.61        7.49        7.28        7.57        8.44   

Indirect two-way

     4.19        4.33        4.43        4.77        4.77        4.31   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     5.97        6.14        6.16        6.22        6.40        6.49   

Total one-way

     7.88        7.90        7.89        7.94        8.08        8.07   

Total two-way

     14.69        15.00        15.29        15.71        16.04        15.41   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging ARPU

   $ 8.45      $ 8.50      $ 8.51      $ 8.59      $ 8.74      $ 8.72   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnect rate (b)

            

Direct one-way

     -5.4     -5.7     -5.6     -6.4     -6.0     -5.7

Direct two-way

     -8.5     -8.3     -7.7     -9.5     -9.3     -7.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -5.6     -5.8     -5.7     -6.5     -6.2     -5.8

Indirect one-way

     -6.6     -7.0     -9.8     -8.1     -8.1     11.9

Indirect two-way

     -1.8     -1.7     -1.8     -3.1     -4.5     -26.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     -4.4     -4.7     -6.4     -6.0     -6.6     -8.1

Total one-way

     -5.4     -5.8     -5.8     -6.4     -6.1     -5.0

Total two-way

     -6.0     -5.9     -5.6     -7.3     -7.6     -15.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging gross disconnect rate

     -5.5     -5.8     -5.7     -6.5     -6.2     -6.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain rate (c)

            

Direct one-way

     -1.9     -2.9     -3.0     -3.2     -2.5     -2.9

Direct two-way

     -3.9     -4.9     -3.3     -4.1     -3.1     -3.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0

Indirect one-way

     -4.9     -5.4     -7.4     -4.5     -5.3     14.6

Indirect two-way

     -1.2     -0.9     -1.0     -2.3     -3.0     -25.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     -3.2     -3.4     -4.7     -3.6     -4.3     -6.6

Total one-way

     -2.0     -3.0     -3.2     -3.2     -2.6     -2.2

Total two-way

     -2.9     -3.5     -2.5     -3.5     -3.1     -12.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging net loss rate

     -2.1     -3.0     -3.1     -3.3     -2.7     -3.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Slight variations in totals are due to rounding.
(b) Gross disconnect rate is current period disconnected units divided by prior period ending units in service.
(c) Net (loss)/gain rate is net current period placements and disconnected units in service divided by prior period ending units in service.


USA MOBILITY, INC. (WIRELESS)

SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)

(Unaudited)

 

     For the three months ended  
     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

Gross placement rate (b)

            

Healthcare

     4.3     3.3     3.0     3.9     4.5     3.3

Government

     1.8     1.3     1.6     2.6     2.1     1.9

Large enterprise

     1.9     2.4     2.1     2.1     2.1     2.3

Other

     2.0     2.2     2.8     1.9     2.0     2.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     3.5     2.8     2.7     3.3     3.6     2.9

Total indirect

     1.2     1.3     1.7     2.4     2.3     1.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     3.4     2.7     2.6     3.3     3.5     2.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnect rate (b)

            

Healthcare

     -4.5     -4.7     -4.9     -5.7     -5.0     -4.7

Government

     -7.0     -7.7     -7.4     -8.3     -8.7     -7.6

Large enterprise

     -8.0     -7.7     -5.7     -7.0     -7.1     -6.2

Other

     -8.7     -9.2     -8.7     -8.9     -9.0     -9.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -5.6     -5.8     -5.7     -6.5     -6.2     -5.8

Total indirect

     -4.4     -4.7     -6.4     -6.0     -6.6     -8.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -5.5     -5.8     -5.7     -6.5     -6.2     -6.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss rate (b)

            

Healthcare

     -0.2     -1.4     -1.9     -1.8     -0.5     -1.4

Government

     -5.2     -6.4     -5.8     -5.7     -6.6     -5.7

Large enterprise

     -6.1     -5.3     -3.6     -4.9     -5.0     -3.9

Other

     -6.8     -7.1     -5.9     -7.0     -6.9     -6.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0

Total indirect

     -3.2     -3.4     -4.7     -3.6     -4.3     -6.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -2.1     -3.0     -3.1     -3.3     -2.7     -3.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period units in service % of total (b)

            

Healthcare

     64.9     63.6     62.6     61.7     60.9     59.5

Government

     11.1     11.5     11.9     12.3     12.6     13.1

Large enterprise

     8.9     9.3     9.5     9.6     9.8     10.0

Other

     8.4     8.8     9.2     9.5     9.7     10.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     93.3     93.2     93.2     93.1     93.0     92.9

Total indirect

     6.7     6.8     6.8     6.9     7.0     7.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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  
     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

Account size ending units in service (000’s)

            

1 to 3 units

     58        61        65        69        74        79   

4 to 10 units

     35        37        40        42        45        48   

11 to 50 units

     82        86        92        99        106        114   

51 to 100 units

     52        54        56        61        68        72   

101 to 1,000 units

     356        373        380        399        411        424   

>1,000 units

     894        897        922        933        952        962   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     1,477        1,508        1,555        1,603        1,656        1,699   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period units in service % of total direct

            

1 to 3 units

     3.9     4.1     4.2     4.3     4.4     4.7

4 to 10 units

     2.3     2.3     2.6     2.6     2.7     2.8

11 to 50 units

     5.6     5.7     5.9     6.2     6.4     6.7

51 to 100 units

     3.5     3.6     3.6     3.8     4.1     4.2

101 to 1,000 units

     24.1     24.8     24.4     24.9     24.8     25.0

>1,000 units

     60.6     59.5     59.3     58.2     57.6     56.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Account size net loss rate

            

1 to 3 units

     -5.7     -6.2     -5.7     -5.9     -6.3     -6.2

4 to 10 units

     -6.2     -6.2     -6.6     -6.4     -6.8     -6.2

11 to 50 units

     -4.1     -7.1     -7.3     -6.4     -6.5     -7.7

51 to 100 units

     -2.4     -3.9     -8.4     -10.4     -5.4     -5.7

101 to 1,000 units

     -4.7     -1.7     -4.7     -2.9     -3.3     -2.7

>1,000 units

     -0.3     -2.7     -1.1     -2.1     -1.0     -1.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Account size ARPU

            

1 to 3 units

   $ 15.49      $ 15.49      $ 15.46      $ 15.62      $ 15.74      $ 15.57   

4 to 10 units

     14.40        14.45        14.37        14.52        14.65        14.53   

11 to 50 units

     12.24        12.15        12.12        12.30        12.38        12.19   

51 to 100 units

     10.35        10.52        10.56        10.59        10.68        10.59   

101 to 1,000 units

     9.01        9.04        8.90        8.90        9.10        9.00   

>1,000 units

     7.34        7.35        7.37        7.42        7.49        7.47   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 8.62      $ 8.67      $ 8.68      $ 8.77      $ 8.92      $ 8.89   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cellular:

            

Number of activations

     1,052        1,070        1,476        1,236        4,370        2,191   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue from cellular services (000’s)

   $ 286      $ 277      $ 414      $ 315      $ 1,199      $ 684   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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


USA MOBILITY, INC.

2012 FINANCIAL GUIDANCE

 

     (In millions)  
     Full Year
Guidance Range
     Adjusted
Guidance Range
 
     From      To      From      To  

Revenues

           

Wireless

   $ 156.0       $ 166.0       $ 162.0       $ 170.0   

Software

     58.0         66.0         53.0         57.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Combined

   $ 214.0       $ 232.0       $ 215.0       $ 227.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating Expenses (a)

           

Wireless

   $ 112.0       $ 108.0       $ 110.0       $ 106.0   

Software

     51.5         48.5         52.0         48.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Combined

   $ 163.5       $ 156.5       $ 162.0       $ 154.0   
  

 

 

    

 

 

    

 

 

    

 

 

 

Capital Expenses

           

Wireless

   $ 9.0       $ 7.0       $ 9.0       $ 7.0   

Software

     1.0         0.5         0.5         0.1   
  

 

 

    

 

 

    

 

 

    

 

 

 

Combined

   $ 10.0       $ 7.5       $ 9.5       $ 7.1   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) Operating expenses exclude depreciation, amortization and accretion.