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Exhibit 99.1

 

LOGO

NEWS RELEASE

 

FOR IMMEDIATE RELEASE       CONTACT:    Bob Lougee (800) 611-8488
Monday, April 15, 2013                            bob.lougee@usamobility.com

USA Mobility Reports Fourth Quarter and 2012 Results;

2011 Financial Restatement Completed

Wireless Subscriber and Revenue Trends Show Solid Improvement

As Operating Margins Remain Strong and Expenses Decline;

Software Bookings and Backlog Reach All-Time High

Springfield, VA (April 15, 2013) — USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging, mobile voice and data and unified communications solutions, today announced final operating results for the fourth quarter and year-ended December 31, 2012. The Company had previously reported selected results for the fourth quarter and 2012 pending completion of its year-end financial audit and restatement of its 2011 financial statements due to a material weakness in the design of internal control over financial reporting in its software revenue recognition processes. Results below reflect completion of the 2012 audit and restatement of 2011 financial statements. There was no material impact to the previously reported interim periods of 2012.

For the fourth quarter, consolidated revenue was $51.9 million, compared to $57.8 million in the fourth quarter of 2011 and $55.1 million in the third quarter of 2012. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $39.9 million in the fourth quarter, compared to $46.5 million in the fourth quarter of 2011 and $41.4 million in the third quarter of 2012. Revenue from the Software business (Amcom Software) was $12.0 million in the fourth quarter, compared to $11.2 million in the year-earlier quarter and $13.7 million in the third quarter of 2012. USA Mobility acquired Amcom Software on March 3, 2011.

Fourth quarter EBITDA (earnings before interest, taxes, depreciation, amortization, accretion and impairment) was $12.4 million, or 23.9 percent of revenue, compared to $17.4 million, or 30.1 percent or revenue, in the fourth quarter of 2011 and $17.8 million, or 32.2 percent of revenue, in the third quarter of 2012.


Net income for the fourth quarter of 2012 was $2.0 million, or $0.09 per fully diluted share, compared to $17.9 million, or $0.79 per fully diluted share, in the year-earlier quarter and $8.0 million, or $0.36 per fully diluted share, in the third quarter of 2012. The increase in net income in the fourth quarter of 2011 was largely the result of a benefit to income tax expense of $10.7 million due to a decrease in the deferred income tax asset valuation allowance which adjusted the balance of deferred income tax assets to their estimated realizable amounts. Excluding the income tax benefit and purchase accounting adjustments, net income for the fourth quarter of 2011 would have been $7.8 million, or $0.35 per fully diluted share.

For the full-year 2012, consolidated revenue was $219.7 million, compared to $233.7 million in 2011. Of the total, Wireless revenue was $168.4 million and Software revenue was $51.3 million, compared to $199.7 million and $34.0 million, respectively, for 2011.

EBITDA for 2012 was $67.3 million, or 30.7 percent of revenue, compared to $71.2 million, or 30.5 percent of revenue, for 2011. Excluding a fair value write down of software maintenance revenue of $6.1 million, EBITDA for 2011 would have been $77.2 million, or 32.2 percent of revenue.

Net income for 2012 was $27.0 million, or $1.20 per fully diluted share, compared to a net income of $83.8 million, or $3.72 per fully diluted share, for 2011. Excluding purchase accounting adjustments and a tax benefit of $50.2 million due to a decrease in the deferred income tax asset valuation allowance, net income for 2011 would have been $37.2 million, or $1.65 per fully diluted share.

Key results and highlights for the fourth quarter and 2012 included:

Wireless

 

   

Fourth quarter EBITDA for Wireless was $14.0 million, or 35.0 percent of revenue, compared to $17.1 million, or 36.7 percent of revenue, in the fourth quarter of 2011 and $16.3 million, or 39.3 percent or revenue, in the third quarter of 2012. Excluding severance expenses, fourth quarter EBITDA margin would have been 37.9 percent, compared to 39.3 percent in the year earlier quarter. For 2012, EBITDA margin increased to an all-time high of 38.3 percent, compared to 37.2 percent in 2011.

 

   

Net unit losses were 31,000 in the fourth quarter, compared to 37,000 in the third quarter and 53,000 in the year-earlier quarter, while the quarterly rate of unit erosion improved to a historic low of 2.0 percent from 2.3 percent in the third quarter and 3.1 percent in the fourth quarter of 2011. The annual rate of unit erosion improved to 9.2 percent in the fourth quarter, also a record low, from 11.7 percent in the year-ago quarter. Units in service at December 31, 2012 totaled 1,515,000 compared to 1,668,000 at December 31, 2011.


   

The rate of Wireless revenue erosion in the fourth quarter was 3.7 percent, compared to 3.1 percent in the third quarter and 4.1 percent in the year-earlier quarter. The annual rate of total revenue erosion was 14.2 percent in the fourth quarter, compared to 14.6 percent in the third quarter and 14.8 percent in the year-earlier quarter. The year-over-year rate of paging revenue erosion improved to a record low 13.3 percent in 2012 from 14.6 percent in 2011.

 

   

Total ARPU (average revenue per unit) was $8.29 in the fourth quarter, compared to $8.36 in the third quarter and $8.51 in the fourth quarter of 2011. For the year, ARPU totaled $8.37, compared to $8.64 in 2011.

Software

 

   

Bookings for the fourth quarter increased to a record $18.1 million, compared to $15.7 million in the third quarter and $15.2 million in the year-earlier quarter. Bookings for the second half of the year increased to $33.8 million, compared to $27.5 million for the first half of 2012 representing an increase of 22.9%.

 

   

Backlog increased to an all-time high of $40.6 million at December 31, 2012, compared to $36.2 million at September 30, 2012, and $32.9 million at year-end 2011.

 

   

The renewal rate for maintenance in the fourth quarter was 99.7 percent.

Total Company

 

   

Operating expenses (excluding depreciation, amortization, accretion and impairment) totaled $39.5 million in the fourth quarter, with $26.0 million for Wireless and $13.5 million for Software, compared to operating expenses of $40.4 million in the year-earlier quarter, with $29.5 million for Wireless and $10.9 million for Software. For 2012, operating expenses were $152.4 million, including $103.9 million for Wireless and $48.5 million for Software, compared to $162.5 million in 2011, including $125.3 million for Wireless and $37.2 million for Software.

 

   

Capital expenses were $2.9 million in the fourth quarter, compared to $2.8 million in the year-earlier quarter. For 2012, capital expenses totaled $10 million, compared to $8 million in 2011.

 

   

Dividends paid to stockholders totaled $16.5 million in 2012.

 

   

The Company’s cash balance was $61 million at December 31, 2012.


   

The number of full-time equivalent employees at December 31, 2012 totaled 665, including 378 for Wireless and 287 for Software, compared to a total of 683 at year-end 2011, including 434 for Wireless and 249 for Software.

“Despite the unfortunate delay in finalizing results, we were very pleased with our operating performance for the fourth quarter and full-year 2012,” said Vincent D. Kelly, president and chief executive officer. “Once again we either met or exceeded our key performance targets as both our Wireless and Software businesses achieved record results for the fourth quarter in several key operating categories. Overall, we continued to operate the Company profitably, maintain high operating margins in our Wireless business, reduce expenses, enhance our products and services, and expand our Software business into new markets. We also generated sufficient cash to again return capital to stockholders in the form of dividends and share repurchases.”

Kelly added: “Wireless subscriber and revenue trends improved substantially in the fourth quarter as the rates of unit and revenue erosion reached their best levels since USA Mobility was formed in 2004. Net subscriber churn declined to 9.2 percent from 11.7 percent in the year-earlier quarter while the year-over-year rate of paging revenue erosion fell to 13.3 percent from 14.6 percent in 2011. In addition, the EBITDA margin for Wireless increased to a record high of 38.3 percent in 2012 versus 37.2 percent in 2011 as the reduction of Wireless costs continued to outpace the decline of revenue. Our Wireless business expanded operating margins for the seventh consecutive year.”

Healthcare continued to be the largest sector for the Company’s Wireless business, representing 67.1 percent of the total Wireless customer base, compared to 62.6 percent a year ago. Healthcare also continued to be the best performing market segment with the highest rate of gross placements and lowest unit churn.

Kelly said the Company’s Software subsidiary also recorded an excellent performance in 2012, especially over the second half of the year. “Software bookings (operations and maintenance) for the last six months of 2012 increased 22.9 percent over bookings in the first half of the year.” The up-tick in second half results was due in part to several factors, Kelly noted, including a new senior management team, a restructured approach to sales and marketing, continued growth of Amcom Software’s product development pipeline, and expansion into new geographic markets.

Kelly added: “Software bookings rose to a record high for the quarter and the backlog reached an all-time high at year end. Demand continued to be strongest in North American hospitals where we sold software solutions for call center management, emergency notification, clinical alerting, middleware and mobile communication solutions. In addition, we expanded our sales focus internationally, specifically in the


Middle East where we opened an office in Dubai. We also experienced growing demand among public safety organizations with a number of military and municipal 911 emergency response centers choosing Amcom Software’s dispatch solution. As a result, we ended the year with a solid pipeline of new business opportunities and believe our Software business established positive momentum entering 2013.”

Kelly said USA Mobility returned $24.5 million in capital to stockholders during 2012 in the form of dividends and share repurchases. The Company paid quarterly cash dividends to stockholders totaling $16.5 million, or $0.75 per share, during 2012, and repurchased 712,173 shares of its common stock for approximately $8.0 million (excluding commissions) after renewal of the Company’s stock repurchase program in July. “Over the past eight years we have now returned $405.3 million to our stockholders in the form of cash distributions and $59.8 million in common stock repurchases.”

Shawn E. Endsley, chief financial officer, said: “Operating and EBITDA margins remained strong in 2012 as we continued to reduce operating expenses in our Wireless business. Consolidated operating expenses (excluding depreciation, amortization, accretion and impairment) for Wireless declined 17.1 percent to $103.9 million in 2012 from $125.3 million in 2011 and marked the seventh consecutive year in which Wireless expense reduction outpaced the annual rate of Wireless revenue erosion.” Endsley added: “Expense reduction in the Wireless business was largely due to continued progress in our network rationalization program, including lower site rents and various other company-wide initiatives. As a result of these efforts, combined with solid cash flow from our Wireless and Software businesses, the Company was able to repay its bank debt during the second quarter of 2012 and end the year debt-free with a consolidated cash balance of $61 million.”

Commenting on the Company’s financial guidance for 2012, Endsley said: “We are pleased that once again results were consistent with our adjusted guidance. For 2012, total reported revenue of $219.7 million was within our guidance range of $215 million to $227 million, operating expenses (excluding depreciation, amortization, accretion and impairment) of $152.4 million were better than our guidance range of $154 million to $162 million, and capital expenses of $10.0 million were slightly above our guidance range of $7.1 million to $9.5 million.” Endsley said the Company expects to provide financial guidance for 2013 when it releases its first quarter results next month.

The Company believes that the filing of its Form 10-K today cures the NASDAQ filing deficiency notice reported on April 5th and brings the Company back into compliance with the NASDAQ reporting requirements. The Company plans to host a conference call for investors after reporting first quarter results.


About USA Mobility

USA Mobility, Inc., headquartered in Springfield, Virginia, is a comprehensive provider of reliable and affordable wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors through its wireless subsidiary, USA Mobility Wireless. In addition, through its software subsidiary, Amcom Software, it provides mission critical unified communications solutions nationally and internationally to leading organizations in such industries as healthcare, hospitality, education, business and government. Amcom connects people to each other and the data the need. Its software solutions include critical smartphone communications, contact center optimization, emergency management and clinical workflow improvement. As a single-source provider, USA Mobility Wireless focuses on the business-to-business marketplace and supplies wireless connectivity solutions to organizations nationwide. The Company operates the largest one-way paging and advanced two-way paging networks in the United States. USA Mobility Wireless also offers mobile voice and data services through Sprint Nextel and T-Mobile, including BlackBerry® smartphones and GPS location applications. Its product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. For further information visit www.usamobility.com and www.amcomsoftware.com.

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


USA MOBILITY, INC.

CONSOLIDATED STATEMENTS OF INCOME (a), (b)

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

 

     For the twelve months ended December 31,  
     2012     2011
(As Restated)
 
     Wireless     Software     Total     Wireless     Software     Total  

Revenue:

            

Paging service

   $ 159,739      $ —        $ 159,739      $ 184,317      $ —        $ 184,317   

Cellular

     1,152        —          1,152        2,612        —          2,612   

Software revenue (c)

     6,515        51,291        57,806        10,133        33,992        44,125   

Other

     999        —          999        2,639        —          2,639   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     168,405        51,291        219,696        199,701        33,992        233,693   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

            

Cost of products sold (c)

     693        20,153        20,846        2,883        17,523        20,406   

Service, rental and maintenance (c)

     45,789        9,636        55,425        55,675        6,672        62,347   

Selling and marketing

     11,521        12,124        23,645        14,466        7,923        22,389   

General and administrative

     44,689        5,991        50,680        51,029        5,066        56,095   

Severance and restructuring

     1,197        561        1,758        1,293        —          1,293   

Depreciation, amortization and accretion

     11,167        7,065        18,232        13,973        5,361        19,334   

Impairment

     —          3,382        3,382        —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     115,056        58,912        173,968        139,319        42,545        181,864   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     68.3     114.9     79.2     69.8     125.2     77.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     53,349        (7,621     45,728        60,382        (8,553     51,829   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     31.7     -14.9     20.8     30.2     -25.2     22.2

Interest expense, net

     (379     (1     (380     (2,236     (18     (2,254

Other income (expense), net

     625        90        715        8,026        (76     7,950   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax (expense) benefit

     53,595        (7,532     46,063        66,172        (8,647     57,525   

Income tax (expense) benefit

     (21,555     2,476        (19,079     22,994        3,267        26,261   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 32,040      $ (5,056   $ 26,984      $ 89,166      $ (5,380   $ 83,786   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

       $ 1.23          $ 3.79   
      

 

 

       

 

 

 

Diluted net income per common share

       $ 1.20          $ 3.72   
      

 

 

       

 

 

 

Basic weighted average common shares outstanding

         21,924,748            22,083,942   
      

 

 

       

 

 

 

Diluted weighted average common shares outstanding

         22,397,587            22,509,008   
      

 

 

       

 

 

 

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

            

Operating income (loss)

   $ 53,349      $ (7,621   $ 45,728      $ 60,382      $ (8,553   $ 51,829   

Add back: depreciation, amortization, accretion and impairment

     11,167        10,447        21,614        13,973        5,361        19,334   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 64,516      $ 2,826      $ 67,342      $ 74,355      $ (3,192   $ 71,163   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     38.3     5.5     30.7     37.2     -9.4     30.5

Key statistics:

            

Units in service

     1,515        —          1,515        1,668        —          1,668   

Average revenue per unit (ARPU)

   $ 8.37      $ —        $ 8.37      $ 8.64      $ —        $ 8.64   

Bookings

   $ —        $ 61,301      $ 61,301      $ —        $ 47,886      $ 47,886   

Backlog

   $ —        $ 40,626      $ 40,626      $ —        $ 32,926      $ 32,926   

 

(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, accretion and impairment is a non-GAAP measure and is presented for analytical purposes only.


USA MOBILITY, INC.

CONSOLIDATED BALANCE SHEETS (a)

(In thousands)

 

     12/31/12      12/31/11  
            (As Restated)  

Assets

     

Current assets:

     

Cash and cash equivalents

   $ 61,046       $ 53,655   

Accounts receivable, net

     21,580         20,523   

Prepaid expenses and other

     5,836         5,239   

Inventory

     3,257         2,751   

Escrow receivables

     275         14,819   

Deferred income tax assets, net

     3,915         8,505   
  

 

 

    

 

 

 

Total current assets

     95,909         105,492   

Property and equipment, net

     20,809         22,421   

Goodwill

     133,031         130,968   

Other intangible assets, net

     30,333         38,757   

Deferred income tax assets, net

     41,239         54,689   

Other assets

     1,306         2,094   
  

 

 

    

 

 

 

Total assets

   $ 322,627       $ 354,421   
  

 

 

    

 

 

 

Liabilities and stockholders’ equity

     

Current liabilities:

     

Accounts payable and accrued liabilities

   $ 12,659       $ 12,394   

Accrued compensation and benefits

     17,806         12,854   

Consideration payable

     275         14,819   

Customer deposits

     2,090         1,806   

Deferred revenue

     27,896         23,907   
  

 

 

    

 

 

 

Total current liabilities

     60,726         65,780   

Long-term debt, net of current portion

     —           28,250   

Deferred revenue

     693         581   

Other long-term liabilities

     9,789         12,223   
  

 

 

    

 

 

 

Total liabilities

     71,208         106,834   
  

 

 

    

 

 

 

Commitments and contingencies

     

Stockholders’ equity:

     

Preferred stock

     —           —     

Common stock

     2         2   

Additional paid-in capital

     125,212         131,612   

Retained earnings

     126,205         115,973   
  

 

 

    

 

 

 

Total stockholders’ equity

     251,419         247,587   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 322,627       $ 354,421   
  

 

 

    

 

 

 

 

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


USA MOBILITY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (a)

(In thousands)

 

     For the twelve months ended  
     12/31/12     12/31/11  
           (As Restated)  

Cash flows from operating activities:

    

Net income

   $ 26,984      $ 83,786   

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

    

Depreciation, amortization and accretion

     18,232        19,334   

Impairment

     3,382        —     

Amortization of deferred financing costs

     259        608   

Deferred income tax expense (benefit)

     18,040        (28,044

Amortization of stock based compensation

     1,224        1,530   

Provisions for doubtful accounts, service credits and other

     1,962        1,679   

(Adjustments)/Settlement of non-cash transaction taxes

     (480     133   

(Gain)/Loss on disposals of property and equipment

     (160     109   

Gain on disposals of narrow band PCS licenses

     —          (7,500

Changes in assets and liabilities:

    

Accounts receivable

     (3,008     (417

Prepaid expenses, intangibles and other assets

     (318     6,758   

Accounts payable, accrued liabilities and other

     2,375        (7,427

Customer deposits and deferred revenue

     4,385        11,887   
  

 

 

   

 

 

 

Net cash provided by operating activities

     72,877        82,436   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of property and equipment

     (9,989     (7,952

Proceeds from disposals of property and equipment

     330        55   

Proceeds from disposals of narrow band PCS licenses

     —          7,500   

Acquisitions, net of cash acquired

     (3,000     (134,250
  

 

 

   

 

 

 

Net cash used in investing activities

     (12,659     (134,647
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Issuance of debt

     —          24,044   

Repayment of debt

     (28,250     (23,697

Deferred financing costs

     —          (1,580

Cash dividends to stockholders

     (16,512     (22,121

Purchase of common stock

     (8,065     —     
  

 

 

   

 

 

 

Net cash used in financing activities

     (52,827     (23,354
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     7,391        (75,565

Cash and cash equivalents, beginning of period

     53,655        129,220   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 61,046      $ 53,655   
  

 

 

   

 

 

 

Supplemental disclosure:

    

Interest paid

   $ 288      $ 1,504   
  

 

 

   

 

 

 

Income taxes paid

   $ 1,606      $ 1,925   
  

 

 

   

 

 

 

Non-cash financing activities

   $ —        $ 27,750   
  

 

 

   

 

 

 

 

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


USA MOBILITY, INC.

CONSOLIDATED STATEMENTS OF INCOME (a), (b)

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

 

     For the three months ended December 31,  
     2012     2011
(As Restated)
 
     Wireless     Software     Total     Wireless     Software     Total  

Revenue:

            

Paging service

   $ 38,081      $ —        $ 38,081      $ 43,249      $ —        $ 43,249   

Cellular

     275        —          275        414        —          414   

Software revenue (c)

     1,414        11,967        13,381        2,449        11,220        13,669   

Other

     147        —          147        421        —          421   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     39,917        11,967        51,884        46,533        11,220        57,753   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

            

Cost of products sold

     177        5,532        5,709        626        4,721        5,347   

Service, rental and maintenance (c)

     11,052        2,447        13,499        12,454        2,024        14,478   

Selling and marketing

     2,727        3,303        6,030        3,275        2,460        5,735   

General and administrative

     10,820        1,731        12,551        11,888        1,722        13,610   

Severance and restructuring

     1,188        524        1,712        1,215        —          1,215   

Depreciation, amortization and accretion

     2,554        1,833        4,387        2,916        1,501        4,417   

Impairment

     —          3,382        3,382        —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     28,518        18,752        47,270        32,374        12,428        44,802   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     71.4     156.7     91.1     69.6     110.8     77.6

Operating income (loss)

     11,399        (6,785     4,614        14,159        (1,208     12,951   

% of total revenue

     28.6     -56.7     8.9     30.4     -10.8     22.4

Interest expense, net

     (61     (1     (62     (395     (9     (404

Other income (expense), net

     164        125        289        122        9        131   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income tax (expense) benefit

     11,502        (6,661     4,841        13,886        (1,208     12,678   

Income tax (expense) benefit

     (4,972     2,158        (2,814     5,089        (147     5,236   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 6,530      $ (4,503   $ 2,027      $ 18,975      $ (1,061   $ 17,914   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

       $ 0.09          $ 0.81   
      

 

 

       

 

 

 

Diluted net income per common share

       $ 0.09          $ 0.79   
      

 

 

       

 

 

 

Basic weighted average common shares outstanding

         21,492,792            22,094,197   
      

 

 

       

 

 

 

Diluted weighted average common shares outstanding

         21,991,673            22,576,380   
      

 

 

       

 

 

 

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

            

Operating income (loss)

   $ 11,399      $ (6,785   $ 4,614      $ 14,159      $ (1,208   $ 12,951   

Add back: depreciation, amortization, accretion and impairment

     2,554        5,215        7,769        2,916        1,501        4,417   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

   $ 13,953      $ (1,570   $ 12,383      $ 17,075      $ 293      $ 17,368   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenue

     35.0     -13.1     23.9     36.7     2.6     30.1

Key statistics:

            

Units in service

     1,515        —          1,515        1,668        —          1,668   

Average revenue per unit (ARPU)

   $ 8.29      $ —        $ 8.29      $ 8.51      $ —        $ 8.51   

Bookings

   $ —        $ 18,129      $ 18,129      $ —        $ 15,213      $ 15,213   

Backlog

   $ —        $ 40,626      $ 40,626      $ —        $ 32,926      $ 32,926   

 

(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, accretion and impairment is a non-GAAP measure and is presented for analytical purposes only.


USA MOBILITY, INC.

CONSOLIDATED STATEMENTS OF INCOME (a), (b)

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

 

    For the three months ended  
    12/31/12     9/30/12     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  
                            (As Restated)     (As Restated)     (As Restated)     (As Restated)  

Revenues:

               

Paging service

  $ 38,081      $ 39,235      $ 40,548      $ 41,875      $ 43,249      $ 45,121      $ 47,319      $ 48,628   

Cellular

    275        314        286        277        414        315        1,199        684   

Software revenue

    13,381        15,321        14,847        14,257        13,669        13,726        12,240        4,490   

Other

    147        246        280        326        421        570        768        880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    51,884        55,116        55,961        56,735        57,753        59,732        61,526        54,682   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

               

Cost of products sold

    5,709        5,105        5,216        4,816        5,347        5,877        6,893        2,289   

Service, rental and maintenance

    13,499        13,731        13,892        14,303        14,478        15,217        16,187        16,465   

Selling and marketing

    6,030        6,043        5,919        5,653        5,735        5,757        6,232        4,665   

General and administrative

    12,551        12,466        12,494        13,169        13,610        13,077        13,840        15,568   

Severance and restructuring

    1,712        —          24        22        1,215        28        17        33   

Depreciation, amortization and accretion

    4,387        4,724        4,606        4,515        4,417        5,080        5,298        4,539   

Impairment

    3,382        —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    47,270        42,069        42,151        42,478        44,802        45,036        48,467        43,559   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenues

    91.1     76.3     75.3     74.9     77.6     75.4     78.8     79.7

Operating income

    4,614        13,047        13,810        14,257        12,951        14,696        13,059        11,123   

% of total revenues

    8.9     23.7     24.7     25.1     22.4     24.6     21.2     20.3

Interest expense, net

    (62     (64     (66     (188     (404     (732     (862     (256

Other income (expense), net

    289        52        436        (62     131        (1     7,666        154   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income tax (expense) benefit

    4,841        13,035        14,180        14,007        12,678        13,963        19,863        11,021   

Income tax (expense) benefit

    (2,814     (4,987     (5,733     (5,545     5,236        (5,161     (4,181     30,367   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

  $ 2,027      $ 8,048      $ 8,447      $ 8,462      $ 17,914      $ 8,802      $ 15,862      $ 41,388   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income per common share

  $ 0.09      $ 0.37      $ 0.38      $ 0.38      $ 0.81      $ 0.40      $ 0.71      $ 1.88   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per common share

  $ 0.09      $ 0.36      $ 0.37      $ 0.37      $ 0.79      $ 0.39      $ 0.70      $ 1.85   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted average common shares outstanding

    21,492,792        21,973,473        22,130,397        22,106,543        22,094,197        22,090,913        22,086,848        22,063,393   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted average common shares outstanding

    21,991,673        22,399,934        22,613,517        22,589,483        22,576,380        22,573,064        22,551,862        22,333,399   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of operating income to EBITDA (c):

               

Operating income

  $ 4,614      $ 13,047      $ 13,810      $ 14,257      $ 12,951      $ 14,696      $ 13,059      $ 11,123   

Add back: depreciation, amortization, accretion and impairment

    7,769        4,724        4,606        4,515        4,417        5,080        5,298        4,539   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

  $ 12,383      $ 17,771      $ 18,416      $ 18,772      $ 17,368      $ 19,776      $ 18,357      $ 15,662   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total revenues

    23.9     32.2     32.9     33.1     30.1     33.1     29.8     28.6

Key statistics:

               

Units in service

    1,515        1,546        1,583        1,617        1,668        1,721        1,779        1,828   

Average revenue per unit (ARPU)

  $ 8.29      $ 8.36      $ 8.45      $ 8.50      $ 8.51      $ 8.59      $ 8.74      $ 8.72   

Bookings

  $ 18,129      $ 15,670      $ 15,085      $ 12,417      $ 15,213      $ 14,188      $ 15,158      $ 3,327   

Backlog

  $ 40,626      $ 36,155      $ 34,391      $ 32,688      $ 32,926      $ 29,349      $ 26,776      $ 21,522   

 

(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, accretion and impairment 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  
     12/31/12      9/30/12      6/30/12     3/31/12      12/31/11      9/30/11      6/30/11     3/31/11  
                                (As Restated)      (As Restated)      (As Restated)     (As Restated)  

Cost of products sold

                     

Payroll and related

   $ 2,634       $ 2,427       $ 2,324      $ 2,368       $ 2,277       $ 2,537       $ 2,156      $ 677   

Cost of sales

     2,500         2,195         2,434        2,037         2,641         3,058         4,078        1,395   

Other

     575         483         458        411         429         282         659        217   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total cost of products sold

     5,709         5,105         5,216        4,816         5,347         5,877         6,893        2,289   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Service, rental and maintenance

                     

Site rent

     4,326         4,326         4,421        4,791         5,002         5,438         5,962        6,881   

Telecommunications

     2,053         2,257         2,346        2,312         2,598         2,732         2,880        3,102   

Payroll and related

     5,432         5,309         5,360        5,529         5,279         5,578         5,562        4,769   

Stock based compensation

     7         6         6        6         6         6         6        5   

Other

     1,681         1,833         1,759        1,665         1,593         1,463         1,777        1,708   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total service, rental and maintenance

     13,499         13,731         13,892        14,303         14,478         15,217         16,187        16,465   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Selling and marketing

                     

Payroll and related

     3,519         3,504         3,544        3,559         3,306         3,593         3,567        2,904   

Commissions

     1,197         1,335         1,343        1,253         1,423         1,273         1,592        1,155   

Stock based compensation

     19         19         18        16         16         16         16        17   

Other

     1,295         1,185         1,014        825         990         875         1,057        589   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total selling and marketing

     6,030         6,043         5,919        5,653         5,735         5,757         6,232        4,665   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

General and administrative

                     

Payroll and related

     6,423         5,851         5,972        6,490         6,268         5,778         6,781        6,072   

Stock based compensation

     296         435         (19     415         415         392         432        203   

Bad debt

     300         275         270        234         363         346         (80     416   

Facility rent

     889         903         868        806         942         1,041         1,035        823   

Telecommunications

     379         390         443        412         440         494         490        470   

Outside services

     2,377         2,353         2,458        2,447         2,079         2,496         2,533        5,228   

Taxes, licenses and permits

     1,312         1,249         1,426        1,501         1,445         1,327         2,190        1,332   

Other

     575         1,010         1,076        864         1,658         1,203         459        1,024   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total general and administrative

     12,551         12,466         12,494        13,169         13,610         13,077         13,840        15,568   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Severance and restructuring

     1,712         —           24        22         1,215         28         17        33   

Depreciation, amortization and accretion

     4,387         4,724         4,606        4,515         4,417         5,080         5,298        4,539   

Impairment

     3,382                      
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating expenses

   $ 47,270       $ 42,069       $ 42,151      $ 42,478       $ 44,802       $ 45,036       $ 48,467      $ 43,559   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Capital expenditures

   $ 2,854       $ 2,696       $ 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  
     12/31/12     9/30/12     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

     1,366        1,395        1,423        1,465        1,510        1,559        1,599        1,645   

Direct two-way

     79        82        85        90        93        97        100        106   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     1,445        1,477        1,508        1,555        1,603        1,656        1,699        1,751   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     55        58        60        63        68        71        75        68   

Indirect two-way

     46        48        49        50        50        52        54        70   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     101        106        109        113        118        123        129        138   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total beginning units in service

     1,546        1,583        1,617        1,668        1,721        1,779        1,828        1,889   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross placements

                

Direct one-way

     46        45        49        41        39        50        56        47   

Direct two-way

     2        3        4        3        4        5        5        3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     48        48        53        44        43        55        61        50   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     2        1        2        1        2        3        3        1   

Indirect two-way

     —          —          —          —          —          —          2        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     2        1        2        1        2        3        5        1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross placements

     50        49        55        45        45        58        66        51   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnects

                

Direct one-way

     (66     (74     (77     (83     (84     (99     (94     (93

Direct two-way

     (6     (6     (7     (8     (7     (9     (10     (9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     (72     (80     (84     (91     (91     (108     (104     (102
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     (9     (4     (4     (4     (7     (6     (10     6   

Indirect two-way

     —          (2     (1     (1     —          (2     (1     (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     (9     (6     (5     (5     (7     (8     (11     (10
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total gross disconnects

     (81     (86     (89     (96     (98     (116     (115     (112
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain

                

Direct one-way

     (20     (29     (28     (42     (45     (49     (38     (46

Direct two-way

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     (24     (32     (31     (47     (48     (53     (43     (52
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     (7     (3     (2     (3     (5     (3     (7     7   

Indirect two-way

     —          (2     (1     (1     —          (1     1        (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     (7     (5     (3     (4     (5     (4     (6     (9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total net change

     (31     (37     (34     (51     (53     (58     (49     (60
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending units in service

                

Direct one-way

     1,346        1,366        1,395        1,423        1,465        1,510        1,559        1,599   

Direct two-way

     75        79        82        85        90        93        97        100   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     1,421        1,445        1,477        1,508        1,555        1,603        1,656        1,699   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Indirect one-way

     48        55        58        60        63        68        71        75   

Indirect two-way

     46        46        48        49        50        50        52        54   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     94        101        106        109        113        118        123        129   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total ending units in service

     1,515        1,546        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  
     12/31/12     9/30/12     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

ARPU

                

Direct one-way

   $ 7.78      $ 7.84      $ 7.89      $ 7.91      $ 7.90      $ 7.97      $ 8.10      $ 8.05   

Direct two-way

     20.52        20.55        20.88        21.08        21.27        21.60        22.05        22.23   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     8.47        8.54        8.62        8.67        8.68        8.77        8.92        8.89   

Indirect one-way

     7.51        7.25        7.48        7.61        7.49        7.28        7.57        8.44   

Indirect two-way

     3.87        4.08        4.19        4.33        4.43        4.77        4.77        4.31   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     5.74        5.77        5.97        6.14        6.16        6.22        6.40        6.49   

Total one-way

     7.77        7.82        7.88        7.90        7.89        7.94        8.08        8.07   

Total two-way

     14.16        14.36        14.69        15.00        15.29        15.71        16.04        15.41   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging ARPU

   $ 8.29      $ 8.36      $ 8.45      $ 8.50      $ 8.51      $ 8.59      $ 8.74      $ 8.72   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnect rate (b)

                

Direct one-way

     -4.8     -5.3     -5.4     -5.7     -5.6     -6.4     -6.0     -5.7

Direct two-way

     -7.8     -7.7     -8.5     -8.3     -7.7     -9.5     -9.3     -7.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -5.0     -5.5     -5.6     -5.8     -5.7     -6.5     -6.2     -5.8

Indirect one-way

     -16.1     -7.6     -6.6     -7.0     -9.8     -8.1     -8.1     11.9

Indirect two-way

     -1.6     -3.1     -1.8     -1.7     -1.8     -3.1     -4.5     -26.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     -9.3     -5.5     -4.4     -4.7     -6.4     -6.0     -6.6     -8.1

Total one-way

     -5.3     -5.4     -5.4     -5.8     -5.8     -6.4     -6.1     -5.0

Total two-way

     -5.4     -6.0     -6.0     -5.9     -5.6     -7.3     -7.6     -15.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging gross disconnect rate

     -5.3     -5.5     -5.5     -5.8     -5.7     -6.5     -6.2     -6.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/gain rate (c)

                

Direct one-way

     -1.5     -2.1     -1.9     -2.9     -3.0     -3.2     -2.5     -2.9

Direct two-way

     -4.9     -4.0     -3.9     -4.9     -3.3     -4.1     -3.1     -3.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -1.7     -2.2     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0

Indirect one-way

     -13.2     -5.6     -4.9     -5.4     -7.4     -4.5     -5.3     14.6

Indirect two-way

     -1.3     -2.5     -1.2     -0.9     -1.0     -2.3     -3.0     -25.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total indirect

     -7.6     -4.2     -3.2     -3.4     -4.7     -3.6     -4.3     -6.6

Total one-way

     -1.9     -2.2     -2.0     -3.0     -3.2     -3.2     -2.6     -2.2

Total two-way

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total paging net loss rate

     -2.0     -2.3     -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  
     12/31/12     9/30/12     6/30/12     3/31/12     12/31/11     9/30/11     6/30/11     3/31/11  

Gross placement rate (b)

                

Healthcare

     3.9     3.7     4.3     3.3     3.0     3.9     4.5     3.3

Government

     1.5     2.5     1.8     1.3     1.6     2.6     2.1     1.9

Large enterprise

     2.3     2.0     1.9     2.4     2.1     2.1     2.1     2.3

Other

     1.9     2.1     2.0     2.2     2.8     1.9     2.0     2.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     3.3     3.2     3.5     2.8     2.7     3.3     3.6     2.9

Total indirect

     1.7     1.3     1.2     1.3     1.7     2.4     2.3     1.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     3.2     3.1     3.4     2.7     2.6     3.3     3.5     2.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross disconnect rate (b)

                

Healthcare

     -4.4     -4.5     -4.5     -4.7     -4.9     -5.7     -5.0     -4.7

Government

     -6.7     -6.8     -7.0     -7.7     -7.4     -8.3     -8.7     -7.6

Large enterprise

     -5.7     -7.3     -8.0     -7.7     -5.7     -7.0     -7.1     -6.2

Other

     -7.0     -8.1     -8.7     -9.2     -8.7     -8.9     -9.0     -9.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -5.0     -5.5     -5.6     -5.8     -5.7     -6.5     -6.2     -5.8

Total indirect

     -9.3     -5.5     -4.4     -4.7     -6.4     -6.0     -6.6     -8.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -5.3     -5.5     -5.5     -5.8     -5.7     -6.5     -6.2     -6.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss rate (b)

                

Healthcare

     -0.4     -0.9     -0.2     -1.4     -1.9     -1.8     -0.5     -1.4

Government

     -5.2     -4.3     -5.2     -6.4     -5.8     -5.7     -6.6     -5.7

Large enterprise

     -3.4     -5.3     -6.1     -5.3     -3.6     -4.9     -5.0     -3.9

Other

     -5.1     -5.9     -6.8     -7.1     -5.9     -7.0     -6.9     -6.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     -1.7     -2.2     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0

Total indirect

     -7.6     -4.2     -3.2     -3.4     -4.7     -3.6     -4.3     -6.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -2.0     -2.3     -2.1     -3.0     -3.1     -3.3     -2.7     -3.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

                

Healthcare

     67.1     65.9     64.9     63.6     62.6     61.7     60.9     59.5

Government

     10.3     10.8     11.1     11.5     11.9     12.3     12.6     13.1

Large enterprise

     8.5     8.6     8.9     9.3     9.5     9.6     9.8     10.0

Other

     7.9     8.1     8.4     8.8     9.2     9.5     9.7     10.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total direct

     93.8     93.4     93.3     93.2     93.2     93.1     93.0     92.9

Total indirect

     6.2     6.6     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     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  
     12/31/12     9/30/12     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

     52        55        58        61        65        69        74        79   

4 to 10 units

     31        33        35        37        40        42        45        48   

11 to 50 units

     75        78        82        86        92        99        106        114   

51 to 100 units

     49        50        52        54        56        61        68        72   

101 to 1,000 units

     334        343        356        373        380        399        411        424   

>1,000 units

     880        886        894        897        922        933        952        962   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     1,421        1,445        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

     3.6     3.8     3.9     4.1     4.2     4.3     4.4     4.7

4 to 10 units

     2.2     2.3     2.3     2.3     2.6     2.6     2.7     2.8

11 to 50 units

     5.3     5.4     5.6     5.7     5.9     6.2     6.4     6.7

51 to 100 units

     3.5     3.5     3.5     3.6     3.6     3.8     4.1     4.2

101 to 1,000 units

     23.5     23.7     24.1     24.8     24.4     24.9     24.8     25.0

>1,000 units

     61.9     61.3     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     100.0     100.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Account size net loss rate

                

1 to 3 units

     -5.5     -5.3     -5.7     -6.2     -5.7     -5.9     -6.3     -6.2

4 to 10 units

     -5.5     -4.8     -6.2     -6.2     -6.6     -6.4     -6.8     -6.2

11 to 50 units

     -4.6     -4.8     -4.1     -7.1     -7.3     -6.4     -6.5     -7.7

51 to 100 units

     -2.6     -3.9     -2.4     -3.9     -8.4     -10.4     -5.4     -5.7

101 to 1,000 units

     -2.6     -3.8     -4.7     -1.7     -4.7     -2.9     -3.3     -2.7

>1,000 units

     -0.6     -1.0     -0.3     -2.7     -1.1     -2.1     -1.0     -1.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     -1.7     -2.2     -2.0     -3.0     -3.0     -3.2     -2.6     -3.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Account size ARPU

                

1 to 3 units

   $ 15.29      $ 15.43      $ 15.49      $ 15.49      $ 15.46      $ 15.62      $ 15.74      $ 15.57   

4 to 10 units

     14.39        14.42        14.40        14.45        14.37        14.52        14.65        14.53   

11 to 50 units

     12.04        12.11        12.24        12.15        12.12        12.30        12.38        12.19   

51 to 100 units

     10.47        10.48        10.35        10.52        10.56        10.59        10.68        10.59   

101 to 1,000 units

     8.94        8.97        9.01        9.04        8.90        8.90        9.10        9.00   

>1,000 units

     7.24        7.28        7.34        7.35        7.37        7.42        7.49        7.47   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 8.47      $ 8.54      $ 8.62      $ 8.67      $ 8.68      $ 8.77      $ 8.92      $ 8.89   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cellular:

                

Number of activations

     1,041        948        1,052        1,070        1,476        1,236        4,370        2,191   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue from cellular services (000’s)

   $ 275      $ 314      $ 286      $ 277      $ 414      $ 315      $ 1,199      $ 684   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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