Spok Holdings, Inc - FORM 8-K - EX-99.1

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8-K - FORM 8-K - Spok Holdings, Inc	d533575d8k.htm

Exhibit 99.1

LOGO

NEWS RELEASE

LOGO


FOR IMMEDIATE RELEASE	CONTACT:	Bob Lougee (800) 611-8488
Thursday, May 9, 2013		bob.lougee@usamobility.com

USA Mobility Reports First Quarter Operating Results;

Board Declares Regular Quarterly Dividend

Wireless Subscriber and Revenue Trends Continue to Improve;

Software Revenues Increase, Bookings and Backlog Remain Strong;

Operating Cash Flow Higher as Expenses Decline

Springfield, VA (May 9, 2013) — 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 first quarter ended March 31, 2013. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on June 25, 2013 to stockholders of record on May 20, 2013.

Consolidated revenue for the first quarter was $53.1 million, compared to $51.9 million in the fourth quarter and $56.7 million in the first quarter of 2012. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $38.8 million in the first quarter, compared to $39.9 million in the fourth quarter and $44.3 million in the first quarter of 2012. Revenue from the Software business (Amcom Software) increased to $14.4 million, from $12.0 million in the fourth quarter and $12.5 million in the first quarter of 2012.

First quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $15.5 million, or 29.3 percent of revenue, compared to $18.8 million, or 33.1 percent of revenue, in the year-earlier quarter. First quarter EBITDA included $14.3 million from Wireless and $1.2 million from Software. EBITDA from Wireless of $14.3 million compared to $14.0 million in the prior quarter and $17.5 million in the year-earlier quarter.

Net income for the first quarter was $6.9 million, or $0.32 per fully diluted share, compared to $8.5 million, or $0.37 per fully diluted share, in the first quarter of 2012.

Key results and highlights for the first quarter included:

Wireless

•

Net unit losses improved to 35,000 in the first quarter from 51,000 in the first quarter of 2012, while the quarterly rate of unit erosion was 2.3 percent versus 3.0 percent in the year-earlier quarter. The annual rate of subscriber erosion improved to a record low 8.5 percent in the first quarter, compared to 9.2 percent in the fourth quarter and 11.5 percent in the year-ago quarter. Units in service at March 31, 2013 totaled 1,480,000, compared to 1,617,000 a year earlier.

•

The quarterly rate of revenue erosion improved to 2.9 percent from 4.9 percent in the first quarter of 2012, while the annual rate of revenue erosion improved to 12.4 percent from 15.7 percent in the year-earlier quarter.

•

Total ARPU (average revenue per unit) was $8.25 in the first quarter, compared to $8.29 in the fourth quarter and $8.50 in the first quarter of 2012.

•

First quarter EBITDA margin for Wireless was 36.9 percent, compared to 35.0 percent in the fourth quarter and 39.5 percent in the year-earlier quarter.

Software

•

Bookings for the first quarter increased to $14.3 million from $12.4 million in the first quarter of 2012.

•

The backlog was $40.2 million at March 31, 2013, compared to $32.7 million a year earlier (as restated).

•

Of the $14.4 million in Software revenue for the first quarter, $6.8 million was maintenance revenue and $7.6 million was operations revenue, compared to $6.4 million and $6.1 million, respectively, of the $12.5 million in Software revenue for first quarter of 2012.

•

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

Total Company

•

Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $37.6 million in the first quarter, with $24.5 million for Wireless and $13.1 million for Software, compared to $38.0 million in the first quarter of 2012, with $26.8 million for Wireless and $11.2 million for Software.

•

Capital expenses were $2.3 million, compared to $1.6 million in the first quarter of 2012.

•

Dividends paid to stockholders totaled $2.7 million in the first quarter.

•

The Company’s cash balance at March 31, 2013 was $71.7 million.

•

The number of full-time equivalent employees at March 31, 2013 totaled 656, including 367 for Wireless and 289 for Software, compared to a total of 685 at March 31, 2012, including 420 for Wireless and 265 for Software.

Vincent D. Kelly, president and chief executive officer, said: “USA Mobility continued to make excellent progress in the first quarter. Both our Wireless and Software businesses met or exceeded their performance goals in virtually all operating categories as consolidated revenue increased and expenses declined from the prior quarter. In addition, we continued to maintain strong operating cash flow and operating margins, and generated sufficient cash flow to again return capital to stockholders in the form of dividend distributions.”

Kelly added: “Once again our Wireless business exceeded expectations for gross additions, revenue, ARPU, and expenses. We were also pleased to see our annual rates of subscriber and revenue erosion reach record lows.”

Kelly said the Company’s Wireless sales efforts during the quarter continued to focus on the core market segments of Healthcare, Government and Large Enterprise. “These core segments represented approximately 92 percent of our direct subscriber base and 88 percent of our direct paging revenue at the end of the quarter. Healthcare comprised 72.5 percent of our direct subscriber base at March 31^st and continued to be our best performing market segment with the highest percentage of direct gross additions (82.6%) and the lowest rate of direct net unit loss (0.5%). Clearly, Healthcare providers continue to recognize and benefit from the reliability and cost advantages of paging for their most critical messaging needs.”

Commenting on the Software business, Kelly said: “First quarter revenue and bookings increased from the year-earlier quarter while our backlog was up 23 percent to $40.2 million from a year ago. In addition, our sales team brought in a record number of large contracts during the quarter from the Healthcare and Government business segments and continued to build a solid pipeline of prospective business. Customer demand remained strong for such software solutions as call center management, clinical alerting middleware, critical smartphone communications and emergency notification. While sales activity remained strongest in North America, we also added new accounts in the Asia-Pacific region and Middle East, including a major medical and research center in Qatar.”

During the quarter the Company introduced a software upgrade that significantly improves physician and nurse communications. “The enhancement links two of our most popular software solutions, Amcom Mobile Connect and Amcom Care Connect,” said Kelly. “Amcom Mobile Connect supports secure and HIPPA-compliant text-messaging, while Amcom Care Connect helps caregivers connect quickly on their own

schedules and preferred devices. The new feature — Amcom Mobile Connect 3.3 — provides a “chat view” screen and updates page that makes it easier for caregivers to connect with one another. The solution gives physicians and nurses the flexibility to talk or text, plus it incorporates critical escalation features when a caregiver is unavailable. Many of our 900 hospital customers had previously requested this specific type of solution, so we’re very pleased to be able to integrate this capability to enhance patient safety and care.”

Shawn E. Endsley, chief financial officer, said the Company continued its positive momentum from 2012 in both the Wireless and Software businesses. “Lower revenue and subscriber churn along with operating expense management in the Wireless business contributed to strong operating cash flow and EBITDA,” he noted. “In addition, higher bookings and backlog in the Software business reflect continuation of the positive trends from the second half of 2012.”

Regarding financial guidance for 2013, Endsley said the Company currently projects total revenue to range from $195 million to $213 million, operating expenses (excluding depreciation, amortization and accretion) to range from $150 million to $152 million, and capital expenses to range from $8.1 million to $9.7 million.

USA Mobility’s Annual Meeting of Stockholders will be held at 9:00 am EST on Tuesday, July 23, 2013 at The Westin Alexandria, 400 Courthouse Square, Alexandria, Virginia.

* * * * * * * * *

USA Mobility plans to host a conference call for investors on its first quarter results at 10:00 a.m. Eastern Time on Friday, May 10, 2013. Dial-in numbers for the call are 719-325-2432 or 888-417-8516. The pass code for the call is 8073557. A replay of the call will be available from 1:00 p.m. ET on May 10 until 1:00 p.m. on Friday, May 24. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 8073557.

* * * * * * * * *

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.

Tables to Follow

USA MOBILITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)

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


	For the three months ended March 31,
	2013									2012
	Wireless			Software			Total			Wireless			Software			Total

Revenue:
Paging service	$	37,051		$	—		$	37,051		$	41,875		$	—		$	41,875
Cellular		195			—			195			277			—			277
Software revenue and other (b)		1,372			14,351			15,723			1,787			12,470			14,257
Other		161			—			161			326			—			326

Total revenue		38,779			14,351			53,130			44,265			12,470			56,735


Operating expenses:
Cost of products sold (b)		(5	)		5,188			5,183			173			4,643			4,816
Service, rental and maintenance (b)		10,829			2,203			13,032			12,034			2,269			14,303
Selling and marketing		2,476			3,740			6,216			3,048			2,605			5,653
General and administrative		11,181			1,971			13,152			11,508			1,661			13,169
Severance and restructuring		—			—			—			9			13			22
Depreciation, amortization and accretion		2,396			1,411			3,807			2,815			1,700			4,515

Total operating expenses		26,877			14,513			41,390			29,587			12,891			42,478

% of total revenue		69.3	%		101.1	%		77.9	%		66.8	%		103.4	%		74.9	%

Operating income (loss)		11,902			(162	)		11,740			14,678			(421	)		14,257

% of total revenue		30.7	%		–1.1	%		22.1	%		33.2	%		–3.4	%		25.1	%

Interest expense, net		(64	)		—			(64	)		(188	)		—			(188	)
Other income (expense), net		89			(8	)		81			(46	)		(16	)		(62	)

Income (loss) before income tax (expense) benefit		11,927			(170	)		11,757			14,444			(437	)		14,007
Income tax (expense) benefit		(4,897	)		65			(4,832	)		(5,718	)		173			(5,545	)

Net income (loss)	$	7,030		$	(105	)	$	6,925		$	8,726		$	(264	)	$	8,462


Basic net income per common share							$	0.32								$	0.38

Diluted net income per common share							$	0.32								$	0.37


Basic weighted average common shares outstanding								21,688,153									22,106,543

Diluted weighted average common shares outstanding								21,904,862									22,589,483


Reconciliation of operating income (loss) to EBITDA (c):
Operating income (loss)	$	11,902		$	(162	)	$	11,740		$	14,678		$	(421	)	$	14,257
Add back: depreciation, amortization and accretion		2,396			1,411			3,807			2,815			1,700			4,515

EBITDA	$	14,298		$	1,249		$	15,547		$	17,493		$	1,279		$	18,772

% of total revenue		36.9	%		8.7	%		29.3	%		39.5	%		10.3	%		33.1	%

Key statistics:
Units in service		1,480			—			1,480			1,617			—			1,617
Average revenue per unit (ARPU)	$	8.25		$	—		$	8.25		$	8.50		$	—		$	8.50
Bookings	$	—		$	14,253		$	14,253		$	—		$	12,417		$	12,417
Backlog	$	—		$	40,183		$	40,183		$	—		$	32,688		$	32,688

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

(b)	Wireless results reflect eliminations for intercompany revenue and expenses.

(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.

CONDENSED CONSOLIDATED BALANCE SHEETS (a)

(In thousands)


	3/31/13		12/31/12
	(Unaudited)

Assets
Current assets:
Cash and cash equivalents	$	71,694	$	61,046
Accounts receivable, net		20,191		21,580
Prepaid expenses and other		5,907		5,836
Inventory		3,032		3,257
Escrow receivables		275		275
Deferred income tax assets, net		4,929		3,915

Total current assets		106,028		95,909
Property and equipment, net		20,783		20,809
Goodwill		133,031		133,031
Other intangible assets, net		29,088		30,333
Deferred income tax assets, net		35,642		41,239
Other assets		1,243		1,306

Total assets	$	325,815	$	322,627


Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities	$	12,876	$	12,659
Accrued compensation and benefits		16,715		17,806
Consideration payable		275		275
Customer deposits		2,660		2,090
Deferred revenue		26,911		27,896

Total current liabilities		59,437		60,726
Deferred revenue		605		693
Other long-term liabilities		9,594		9,789

Total liabilities		69,636		71,208

Commitments and contingencies
Stockholders’ equity:
Preferred stock		—		—
Common stock		2		2
Additional paid-in capital		125,823		125,212
Retained earnings		130,354		126,205

Total stockholders’ equity		256,179		251,419

Total liabilities and stockholders’ equity	$	325,815	$	322,627

(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 three months ended
	3/31/13			3/31/12

Cash flows from operating activities:
Net income	$	6,925		$	8,462
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		3,807			4,515
Amortization of deferred financing costs		64			65
Deferred income tax expense		4,570			5,387
Amortization of stock based compensation		626			437
Provision for doubtful accounts, service credits and other		405			411
Adjustment of non-cash transaction taxes		(132	)		(123	)
(Gain)/Loss on disposals of property and equipment		(1	)		162
Changes in assets and liabilities:
Accounts receivable		984			358
Prepaid expenses, intangibles and other assets		161			118
Accounts payable and accrued liabilities		(1,236	)		(3,680	)
Customer deposits and deferred revenue		(503	)		(171	)

Net cash provided by operating activities		15,670			15,941


Cash flows from investing activities:
Purchase of property and equipment		(2,341	)		(1,551	)
Proceeds from disposals of property and equipment		1			8

Net cash used in investing activities		(2,340	)		(1,543	)


Cash flows from financing activities:
Repayment of debt		—			(25,000	)
Cash dividends to stockholders		(2,682	)		(5,535	)

Net cash used in financing activities		(2,682	)		(30,535	)


Net increase/(decrease) in cash and cash equivalents		10,648			(16,137	)
Cash and cash equivalents, beginning of period		61,046			53,655

Cash and cash equivalents, end of period	$	71,694		$	37,518


Supplemental disclosure:
Interest paid	$	4		$	220

Income taxes paid	$	168		$	224

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

USA MOBILITY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)

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


	For the three months ended
	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12

Revenues:
Paging service	$	37,051		$	38,081		$	39,235		$	40,548		$	41,875
Cellular		195			275			314			286			277
Software revenue and other		15,723			13,381			15,321			14,847			14,257
Other		161			147			246			280			326

Total revenues		53,130			51,884			55,116			55,961			56,735


Operating expenses:
Cost of products sold		5,183			5,709			5,105			5,216			4,816
Service, rental and maintenance		13,032			13,499			13,731			13,892			14,303
Selling and marketing		6,216			6,030			6,043			5,919			5,653
General and administrative		13,152			12,551			12,466			12,494			13,169
Severance and restructuring		—			1,712			—			24			22
Depreciation, amortization and accretion		3,807			4,387			4,724			4,606			4,515
Impairment		—			3,382			—			—			—

Total operating expenses		41,390			47,270			42,069			42,151			42,478

% of total revenues		77.9	%		91.1	%		76.3	%		75.3	%		74.9	%

Operating income		11,740			4,614			13,047			13,810			14,257
% of total revenues		22.1	%		8.9	%		23.7	%		24.7	%		25.1	%

Interest expense, net		(64	)		(62	)		(64	)		(66	)		(188	)
Other income (expense), net		81			289			52			436			(62	)

Income before income tax expense		11,757			4,841			13,035			14,180			14,007
Income tax expense		(4,832	)		(2,814	)		(4,987	)		(5,733	)		(5,545	)

Net income	$	6,925		$	2,027		$	8,048		$	8,447		$	8,462


Basic net income per common share	$	0.32		$	0.09		$	0.37		$	0.38		$	0.38

Diluted net income per common share	$	0.32		$	0.09		$	0.36		$	0.37		$	0.37


Basic weighted average common shares outstanding		21,688,153			21,492,792			21,973,473			22,130,397			22,106,543

Diluted weighted average common shares outstanding		21,904,862			22,991,673			22,399,934			22,613,517			22,589,483


Reconciliation of operating income to EBITDA (b):
Operating income	$	11,740		$	4,614		$	13,047		$	13,810		$	14,257
Add back: depreciation, amortization, accretion and impairment		3,807			7,769			4,724			4,606			4,515

EBITDA	$	15,547		$	12,383		$	17,771		$	18,416		$	18,772

% of total revenues		29.3	%		23.9	%		32.2	%		32.9	%		33.1	%

Key statistics:
Units in service		1,480			1,515			1,546			1,583			1,617
Average revenue per unit (ARPU)	$	8.25		$	8.29		$	8.36		$	8.45		$	8.50
Bookings	$	14,253		$	18,129		$	15,670		$	15,085		$	12,417
Backlog	$	40,183		$	40,626		$	36,155		$	34,391		$	32,688

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

(b)	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)

(Unaudited and in thousands)


	For the three months ended
	3/31/13		12/31/12		9/30/12		6/30/12			3/31/12

Cost of products sold
Payroll and related	$	2,838	$	2,634	$	2,427	$	2,324		$	2,368
Cost of sales		1,890		2,500		2,195		2,434			2,037
Other		455		575		483		458			411

Total cost of products sold		5,183		5,709		5,105		5,216			4,816


Service, rental and maintenance
Site rent		4,235		4,326		4,326		4,421			4,791
Telecommunications		1,889		2,053		2,257		2,346			2,312
Payroll and related		5,203		5,432		5,309		5,360			5,529
Stock based compensation		10		7		6		6			6
Other		1,695		1,681		1,833		1,759			1,665

Total service, rental and maintenance		13,032		13,499		13,731		13,892			14,303


Selling and marketing
Payroll and related		3,594		3,519		3,504		3,544			3,559
Commissions		1,387		1,197		1,335		1,343			1,253
Stock based compensation		17		19		19		18			16
Other		1,218		1,295		1,185		1,014			825

Total selling and marketing		6,216		6,030		6,043		5,919			5,653


General and administrative
Payroll and related		6,026		6,423		5,851		5,972			6,490
Stock based compensation		599		296		435		(19	)		415
Bad debt		275		300		275		270			234
Facility rent		844		889		903		868			806
Telecommunications		375		379		390		443			412
Outside services		3,077		2,377		2,353		2,458			2,447
Taxes, licenses and permits		1,233		1,312		1,249		1,426			1,501
Other		723		575		1,010		1,076			864

Total general and administrative		13,152		12,551		12,466		12,494			13,169


Severance and restructuring		—		1,712		—		24			22
Depreciation, amortization and accretion		3,807		4,387		4,724		4,606			4,515
Impairment		—		3,382		—		—			—

Total operating expenses	$	41,390	$	47,270	$	42,069	$	42,151		$	42,478


Capital expenditures	$	2,341	$	2,854	$	2,696	$	2,888		$	1,551

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

USA MOBILITY, INC. (WIRELESS)

UNITS IN SERVICE ACTIVITY (a)

(Unaudited and in thousands)


	For the three months ended
	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12
Units in service

Beginning units in service
Direct one-way		1,346			1,366			1,395			1,423			1,465
Direct two-way		75			79			82			85			90

Total direct		1,421			1,445			1,477			1,508			1,555

Indirect one-way		48			55			58			60			63
Indirect two-way		46			46			48			49			50

Total indirect		94			101			106			109			113

Total beginning units in service		1,515			1,546			1,583			1,617			1,668


Gross placements
Direct one-way		39			46			45			49			41
Direct two-way		3			2			3			4			3

Total direct		42			48			48			53			44

Indirect one-way		1			2			1			2			1
Indirect two-way		—			—			—			—			—

Total indirect		1			2			1			2			1

Total gross placements		43			50			49			55			45


Gross disconnects
Direct one-way		(61	)		(66	)		(74	)		(77	)		(83	)
Direct two-way		(5	)		(6	)		(6	)		(7	)		(8	)

Total direct		(66	)		(72	)		(80	)		(84	)		(91	)

Indirect one-way		(11	)		(9	)		(4	)		(4	)		(4	)
Indirect two-way		(1	)		—			(2	)		(1	)		(1	)

Total indirect		(12	)		(9	)		(6	)		(5	)		(5	)

Total gross disconnects		(78	)		(81	)		(86	)		(89	)		(96	)


Net loss
Direct one-way		(22	)		(20	)		(29	)		(28	)		(42	)
Direct two-way		(2	)		(4	)		(3	)		(3	)		(5	)

Total direct		(24	)		(24	)		(32	)		(31	)		(47	)

Indirect one-way		(10	)		(7	)		(3	)		(2	)		(3	)
Indirect two-way		(1	)		—			(2	)		(1	)		(1	)

Total indirect		(11	)		(7	)		(5	)		(3	)		(4	)

Total net change		(35	)		(31	)		(37	)		(34	)		(51	)


Ending units in service
Direct one-way		1,324			1,346			1,366			1,395			1,423
Direct two-way		73			75			79			82			85

Total direct		1,397			1,421			1,445			1,477			1,508

Indirect one-way		38			48			55			58			60
Indirect two-way		45			46			46			48			49

Total indirect		83			94			101			106			109

Total ending units in service		1,480			1,515			1,546			1,583			1,617

(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
	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12

ARPU
Direct one-way	$	7.73		$	7.78		$	7.84		$	7.89		$	7.91
Direct two-way		20.41			20.52			20.55			20.88			21.08

Total direct		8.40			8.47			8.54			8.62			8.67

Indirect one-way		8.22			7.51			7.25			7.48			7.61
Indirect two-way		3.76			3.87			4.08			4.19			4.33

Total indirect		5.85			5.74			5.77			5.97			6.14

Total one-way		7.74			7.77			7.82			7.88			7.90
Total two-way		13.96			14.16			14.36			14.69			15.00

Total paging ARPU	$	8.25		$	8.29		$	8.36		$	8.45		$	8.50


Gross disconnect rate (b)
Direct one-way		–4.6	%		–4.8	%		–5.3	%		–5.4	%		–5.7	%
Direct two-way		–6.6	%		–7.8	%		–7.7	%		–8.5	%		–8.3	%

Total direct		–4.7	%		–5.0	%		–5.5	%		–5.6	%		–5.8	%

Indirect one-way		–23.6	%		–16.1	%		–7.6	%		–6.6	%		–7.0	%
Indirect two-way		–1.6	%		–1.6	%		–3.1	%		–1.8	%		–1.7	%

Total indirect		–12.5	%		–9.3	%		–5.5	%		–4.4	%		–4.7	%

Total one-way		–5.2	%		–5.3	%		–5.4	%		–5.4	%		–5.8	%
Total two-way		–4.7	%		–5.4	%		–6.0	%		–6.0	%		–5.9	%

Total paging gross disconnect rate		–5.2	%		–5.3	%		–5.5	%		–5.5	%		–5.8	%


Net loss (c)
Direct one-way		–1.7	%		–1.5	%		–2.1	%		–1.9	%		–2.9	%
Direct two-way		–1.9	%		–4.9	%		–4.0	%		–3.9	%		–4.9	%

Total direct		–1.7	%		–1.7	%		–2.2	%		–2.0	%		–3.0	%

Indirect one-way		–21.8	%		–13.2	%		–5.6	%		–4.9	%		–5.4	%
Indirect two-way		–1.3	%		–1.3	%		–2.5	%		–1.2	%		–0.9	%

Total indirect		–11.5	%		–7.6	%		–4.2	%		–3.2	%		–3.4	%

Total one-way		–2.4	%		–1.9	%		–2.2	%		–2.0	%		–3.0	%
Total two-way		–1.6	%		–3.5	%		–3.5	%		–2.9	%		–3.5	%

Total paging net loss rate		–2.3	%		–2.0	%		–2.3	%		–2.1	%		–3.0	%

(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 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
	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12

Gross placement rate (b)
Healthcare		3.4	%		3.9	%		3.7	%		4.3	%		3.3	%
Government		1.6	%		1.5	%		2.5	%		1.8	%		1.3	%
Large enterprise		2.1	%		2.3	%		2.0	%		1.9	%		2.4	%
Other		1.8	%		1.9	%		2.1	%		2.0	%		2.2	%

Total direct		3.0	%		3.3	%		3.2	%		3.5	%		2.8	%
Total indirect		1.0	%		1.7	%		1.3	%		1.2	%		1.3	%

Total		2.9	%		3.2	%		3.1	%		3.4	%		2.7	%


Gross disconnect rate (b)
Healthcare		–3.9	%		–4.4	%		–4.5	%		–4.5	%		–4.7	%
Government		–5.9	%		–6.7	%		–6.8	%		–7.0	%		–7.7	%
Large enterprise		–7.0	%		–5.7	%		–7.3	%		–8.0	%		–7.7	%
Other		–7.3	%		–7.0	%		–8.1	%		–8.7	%		–9.2	%

Total direct		–4.7	%		–5.0	%		–5.5	%		–5.6	%		–5.8	%
Total indirect		–12.5	%		–9.3	%		–5.5	%		–4.4	%		–4.7	%

Total		–5.2	%		–5.3	%		–5.5	%		–5.5	%		–5.8	%


Net loss rate (b)
Healthcare		–0.5	%		–0.4	%		–0.9	%		–0.2	%		–1.4	%
Government		–4.3	%		–5.2	%		–4.3	%		–5.2	%		–6.4	%
Large enterprise		–4.9	%		–3.4	%		–5.3	%		–6.1	%		–5.3	%
Other		–5.5	%		–5.1	%		–5.9	%		–6.8	%		–7.1	%

Total direct		–1.7	%		–1.7	%		–2.2	%		–2.0	%		–3.0	%
Total indirect		–11.5	%		–7.6	%		–4.2	%		–3.2	%		–3.4	%

Total		–2.3	%		–2.0	%		–2.3	%		–2.1	%		–3.0	%


End of period units in service % of total (b)
Healthcare		68.4	%		67.1	%		65.9	%		64.9	%		63.6	%
Government		10.1	%		10.3	%		10.8	%		11.1	%		11.5	%
Large enterprise		8.3	%		8.5	%		8.6	%		8.9	%		9.3	%
Other		7.6	%		7.9	%		8.1	%		8.4	%		8.8	%

Total direct		94.4	%		93.8	%		93.4	%		93.3	%		93.2	%
Total indirect		5.6	%		6.2	%		6.6	%		6.7	%		6.8	%

Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

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

(b)	Changes in the classification of units in service are reflected in the quarter when such changes are identified.

Such changes are then appropriately reflected in calculating the gross placement, gross disconnect and net loss rates.

USA MOBILITY, INC. (WIRELESS)

SUPPLEMENTAL INFORMATION - DIRECT UNITS IN SERVICE AND

CELLULAR ACTIVATIONS (a)

(Unaudited)


	For the three months ended
	3/31/13			12/31/12			9/30/12			6/30/12			3/31/12

Account size ending units in service (000’s)
1 to 3 units		49			52			55			58			61
4 to 10 units		29			31			33			35			37
11 to 50 units		71			75			78			82			86
51 to 100 units		47			49			50			52			54
101 to 1,000 units		321			334			343			356			373
>1,000 units		880			880			886			894			897

Total		1,397			1,421			1,445			1,477			1,508


End of period units in service % of total direct
1 to 3 units		3.5	%		3.6	%		3.8	%		3.9	%		4.1	%
4 to 10 units		2.1	%		2.2	%		2.3	%		2.3	%		2.3	%
11 to 50 units		5.1	%		5.3	%		5.4	%		5.6	%		5.7	%
51 to 100 units		3.4	%		3.5	%		3.5	%		3.5	%		3.6	%
101 to 1,000 units		23.0	%		23.5	%		23.7	%		24.1	%		24.8	%
>1,000 units		62.9	%		61.9	%		61.3	%		60.6	%		59.5	%

Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%


Account size net loss rate
1 to 3 units		–4.8	%		–5.5	%		–5.3	%		–5.7	%		–6.2	%
4 to 10 units		–6.0	%		–5.5	%		–4.8	%		–6.2	%		–6.2	%
11 to 50 units		–4.8	%		–4.6	%		–4.8	%		–4.1	%		–7.1	%
51 to 100 units		–4.0	%		–2.6	%		–3.9	%		–2.4	%		–3.9	%
101 to 1,000 units		–3.9	%		–2.6	%		–3.8	%		–4.7	%		–1.7	%
>1,000 units		–0.2	%		–0.6	%		–1.0	%		–0.3	%		–2.7	%

Total		–1.7	%		–1.7	%		–2.2	%		–2.0	%		–3.0	%


Account size ARPU
1 to 3 units	$	15.22		$	15.29		$	15.43		$	15.49		$	15.49
4 to 10 units		14.33			14.39			14.42			14.40			14.45
11 to 50 units		12.06			12.04			12.11			12.24			12.15
51 to 100 units		10.47			10.47			10.48			10.35			10.52
101 to 1,000 units		8.84			8.94			8.97			9.01			9.04
>1,000 units		7.23			7.24			7.28			7.34			7.35

Total	$	8.40		$	8.47		$	8.54		$	8.62		$	8.67


Cellular:
Number of activations		925			1,041			948			1,052			1,070

Revenue from cellular services (000’s)	$	195		$	275		$	314		$	286		$	277

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

USA MOBILITY, INC.

2013 FINANCIAL GUIDANCE


	(In millions)
	Guidance Range
	From		To
Revenues
Wireless	$	140	$	150
Software		55		63

Combined	$	195	$	213


Operating Expenses (a)
Wireless	$	99	$	92
Software		53		58

Combined	$	152	$	150


Capital Expenses
Wireless	$	9.5	$	7.5
Software		0.2		0.6

Combined	$	9.7	$	8.1

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

Spok Holdings, Inc - FORM 8-K - EX-99.1 - May 9, 2013

Attached files

Spok Holdings, Inc Reports