Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Segment Reporting

(22) Segment Reporting  — With the acquisition of Amcom on March 3, 2011, USA Mobility currently has two reportable operating segments: a Wireless segment and a Software segment. These segments are operated and managed as strategic business units and are organized by products and services. The Company measures and evaluates its segments based on segment operating income, consistent with the chief operating decision maker’s assessment of segment performance.

The Company’s segments and their principal activities consist of the following:

Wireless	Provides local, regional and nationwide one-way paging and advanced two-way messaging services and mobile voice and data services through third party providers.
Software	Provides mission critical unified communications solutions for contact centers, emergency management, mobile event notification and messaging.

The Company uses a non-GAAP financial measure as a key element in determining performance for purposes of incentive compensation under the Company’s annual Short-Term Incentive Plan (“STIP”) for each segment. That non-GAAP financial measure is operating cash flow (“OCF”) defined as earnings before interest, taxes, depreciation, amortization and accretion (“EBITDA”) less purchases of property and equipment. (EBITDA is defined as operating income plus depreciation, amortization and accretion, each determined in accordance with GAAP). Purchases of property and equipment are also determined in accordance with GAAP.

The following table presents the key financial metrics of the Company’s segments for the periods stated:

	For the Three Months				For the Six Months Ended
	Ended June 30,				June 30,
	2011		2010		2011		2010
			(Dollars in thousands)
Revenues:
Wireless	$	52,091	$	59,112	$	104,627	$	121,896
Software		13,080		—		17,878		—
Total revenues		65,171		59,112		122,505		121,896
Operating expenses:
Wireless		35,314		45,366		74,931		93,503
Software		13,720		—		18,112		—
Total operating expenses		49,034		45,366		93,043		93,503
Operating income:
Wireless		16,777		13,746		29,696		28,393
Software		(640)		—		(234)		—
Total operating income		16,137		13,746		29,462		28,393
EBITDA (as defined by the Company):
Wireless		20,395		20,444		37,346		42,395
Software		1,040		—		1,954		—
Total EBITDA		21,435		20,444		39,300		42,395
% of revenue		32.9%		34.6%		32.1%		34.8%
Capital expenditures:
Wireless		1,721		563		3,215		2,288
Software		133		—		140		—
Total capital expenditures		1,854		563		3,355		2,288
% of revenue		2.8%		1.0%		2.7%		1.9%
OCF (as defined by the Company):
Wireless		18,674		19,881		34,131		40,107
Software		907		—		1,814		—
Total OCF		19,581		19,881		35,945		40,107
% of revenue		30.0%		33.6%		29.3%		32.9%

Segment information for total assets is not presented as such information is not used in measuring segment performance or allocating resources among segments.