EX-99.1 2 d577794dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

FOR IMMEDIATE RELEASE       CONTACT:    Bob Lougee    (800) 611-8488
Thursday, August 1, 2013          bob.lougee@usamobility.com

USA Mobility Reports Second Quarter Operating Results;

Board Declares Regular Quarterly Dividend

Wireless Subscriber and Revenue Trends Continue to Improve;

Wireless Healthcare Base Posts Growth;

Software Revenue and Bookings Increase as Backlog Remains Strong

Springfield, VA (August 1, 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 second quarter ended June 30, 2013. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on September 10, 2013 to stockholders of record on August 19, 2013.

Consolidated revenue for the second quarter was $52.3 million, compared to $53.1 million in the first quarter and $56.0 million in the second quarter of 2012. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $37.8 million in the second quarter, compared to $38.8 million in the first quarter and $42.8 million in the second quarter of 2012. Revenue from the Software business (Amcom Software) was $14.5 million in the second quarter versus $14.4 million in the first quarter and $13.2 million in the second quarter of 2012.

Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $15.7 million, or 30.1 percent of revenue, compared to $18.4 million, or 32.9 percent of revenue, in the second quarter of 2012. Second quarter EBITDA included $14.3 million from Wireless, compared with $14.3 million for the first quarter and $16.8 million for the second quarter of 2012 and $1.4 million from Software, compared with $1.2 million for the first quarter and $1.6 million for the second quarter of 2012.

Net income for the second quarter was $6.8 million, or $0.31 per fully diluted share, compared to $8.4 million, or $0.37 per fully diluted share, in the second quarter of 2012.

Highlights for the second quarter included:

Wireless

 

  •  

The annual rate of revenue erosion improved to an all-time low of 11.7 percent, compared to 12.4 percent in the first quarter and 17.9 percent in the second quarter of 2012, while the quarterly rate of revenue erosion improved to 2.6 percent from 2.9 percent in the first quarter and 3.3 percent in the year-earlier quarter.

 

  •  

The annual rate of subscriber erosion was 8.7 percent in the second quarter, compared to 11.0 percent in the second quarter of 2012, while the quarterly rate of unit erosion was 2.4 percent versus 2.1 percent in the second quarter of 2012. Net unit losses totaled 35,000 in the second quarter, compared to 34,000 in the second quarter of 2012. Units in service at June 30, 2013 totaled 1,445,000 compared to 1,583,000 a year earlier.

 

  •  

The Healthcare segment posted a net gain of 479 paging units during the quarter as gross additions exceeded gross disconnects.

 

  •  

Total ARPU (average revenue per unit) was $8.22 in the second quarter, compared to $8.25 in the first quarter and $8.45 in the second quarter of 2012.

 

  •  

Second quarter EBITDA margin for Wireless was 38.0 percent, compared to 36.9 percent in the first quarter and 39.2 percent in the year-earlier quarter.

Software

 

  •  

Bookings for the second quarter increased to $15.6 million from $14.3 million in the first quarter and $15.1 million in the second quarter of 2012.

 

  •  

The backlog totaled $39.6 million at June 30, 2013, compared to $34.4 million a year earlier.

 

  •  

Of the $14.5 million in Software revenue for the second quarter, $6.9 million was maintenance revenue and $7.6 million was operations revenue, compared to $6.5 million and $6.7 million, respectively, of the $13.2 million in Software revenue for second quarter of 2012.

 

  •  

The renewal rate for maintenance in the second quarter was 99.5 percent.

Total Company

 

  •  

Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $36.5 million in the second quarter, with $23.4 million for Wireless and $13.1 million for Software, compared to $37.5 million in the second quarter of 2012, with $26.0 million for Wireless and $11.5 million for Software.

  •  

Capital expenses were $2.9 million, the same as the second quarter of 2012.

 

  •  

Dividends paid to stockholders totaled $4.2 million in the second quarter.

 

  •  

The Company’s cash balance at June 30, 2013 was $72.0 million.

 

  •  

The number of full-time equivalent employees at June 30, 2013 totaled 659, including 361 for Wireless and 298 for Software, compared to a total of 686 at June 30, 2012, including 411 for Wireless and 275 for Software.

Vincent D. Kelly, president and chief executive officer, said: “USA Mobility continued to make excellent progress in the second quarter. Our Wireless and Software businesses continued making progress, integrating management, operations and sales functions designed to better serve our customer’s total communications and solutions needs, while increasing our long-term efficiency profile. Increasingly, we are seeing more demand from our customers to provide both software solutions and wireless capability as part of our overall solutions offerings. Both our wireless and software operations met or exceeded their performance goals in nearly all operating categories as consolidated EBITDA increased and expenses declined from the first quarter. At the same time, we maintained strong operating margins, and generated sufficient cash flow to again return capital to stockholders in the form of cash dividends.”

Kelly added: “On the Wireless side, we once again exceeded expectations for gross additions, revenue, ARPU, and expenses. In addition, the annual rate of revenue erosion reached a record low, the annual rate of subscriber erosion improved from a year ago, and our quarterly direct net unit churn improved to 1.3 percent from 2.0 percent in the second quarter of 2012.”

Kelly said second quarter sales efforts in the Wireless business continued to focus on the core market segments of Healthcare, Government and Large Enterprise. “These core segments represented 92.3 percent of our direct subscriber base and 88.6 percent of our direct paging revenue at the end of the quarter. Healthcare comprised 74.3 percent of our direct subscriber base at June 30th and continued to be our best performing market segment with the highest percentage of direct gross additions (84.9 percent). Moreover,” he noted, “our Healthcare segment posted a small net gain of 479 paging units during the quarter as gross additions exceeded gross disconnects. We are pleased healthcare providers continue to recognize the cost and reliability benefits of paging for their most critical messaging needs.”

Commenting on the Software business, Kelly said: “Second quarter revenue and bookings increased from both the prior and year-earlier quarters while our backlog totaled $39.6 million and remained near a record high. In addition, our Amcom sales team recorded a number of major contracts in such key industries as healthcare, public safety, and government 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 continued to add new accounts in the Asia-Pacific region as we continued to aggressively pursue software accounts in key international markets.”

Kelly noted that Amcom’s successful pursuit of international sales resulted in the Company’s inclusion among companies receiving the President’s “E” Award for Exports in May 2013. Presented by the Department of Commerce at a ceremony in Washington, D. C., the “E” Award is the highest recognition a company can receive for contributing to U.S. exports. “We were delighted that Amcom received this well-deserved recognition for its international sales performance,” Kelly said. “While our Software business already enjoys a leading position in the mission-critical communications space in domestic markets, we expect to continue expanding its international reach as part of our ongoing strategy for long-term growth.”

Shawn E. Endsley, chief financial officer, said USA Mobility’s balance sheet continued to benefit from strong quarterly performances by both Wireless and Software businesses. “Improved rates of revenue erosion and subscriber churn, combined with solid operating expense management, helped drive strong EBITDA in our Wireless business,” he noted, “while revenue and bookings in the Software business continued to increase. The net result is a consolidated cash balance of $72 million at June 30th. In addition, we continue to operate as a debt-free company while maintaining approximately $40 million in borrowing capacity through our credit facility.”

Endsley said the Company is maintaining its previously announced financial guidance for 2013, which 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 plans to host a conference call for investors on its second quarter results at 10:00 a.m. Eastern Time on Friday, August 2, 2013. Dial-in numbers for the call are 719-457-2661 or 888-438-5524. The pass code for the call is 3839277. A replay of the call will be available from 1:00 p.m. ET on August 2 until 1:00 p.m. on Friday, August 16. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 3839277.

* * * * * * * * *

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 they 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 June 30,  
     2013     2012  
     Wireless     Software     Total     Wireless     Software     Total  

Revenue:

             

Paging service

    $ 36,064      $ —        $ 36,064      $ 40,548      $ —        $ 40,548   

Cellular

      163        —          163        286        —          286   

Software revenue and other (b)

      1,401        14,497        15,898        1,669        13,178        14,847   

Other

      143        —          143        280        —          280   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

      37,771        14,497        52,268        42,783        13,178        55,961   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

             

Cost of revenue (b)

      112        5,373        5,485        156        5,060        5,216   

Service, rental and maintenance (b)

      10,538        2,284        12,822        11,464        2,428        13,892   

Selling and marketing

      2,563        3,784        6,347        2,972        2,947        5,919   

General and administrative

      10,201        1,684        11,885        11,426        1,068        12,494   

Severance and restructuring

      2        —          2        0        24        24   

Depreciation, amortization and accretion

      2,380        1,442        3,822        2,854        1,752        4,606   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      25,796        14,567        40,363        28,872        13,279        42,151   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

% of total revenue

      68.3 %      100.5 %      77.2 %      67.5 %      100.8 %      75.3 % 

Operating income (loss)

      11,975        (70 )      11,905        13,911        (101 )      13,810   

% of total revenue

      31.7 %      –0.5 %      22.8 %      32.5 %      –0.8 %      24.7 % 

Interest expense, net

      (63 )      (1 )      (64 )      (66 )      —          (66 ) 

Other (expense) income, net

      (82 )      7        (75 )      439        (3 )      436   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income tax (expense) benefit

      11,830        (64 )      11,766        14,284        (104 )      14,180   

Income tax (expense) benefit

      (4,967 )      29        (4,938 )      (5,772 )      39        (5,733 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ 6,863      $ (35 )    $ 6,828      $ 8,512      $ (65 )    $ 8,447   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Basic net income per common share

        $ 0.32          $ 0.38   
      

 

 

        

 

 

  

Diluted net income per common share

        $ 0.31          $ 0.37   
      

 

 

        

 

 

  

Basic weighted average common shares outstanding

          21,644,281            22,130,397   
      

 

 

        

 

 

  

Diluted weighted average common shares outstanding

          21,827,149            22,613,517   
      

 

 

        

 

 

  

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

             

Operating income (loss)

    $ 11,975      $ (70 )    $ 11,905      $ 13,911      $ (101 )    $ 13,810   

Add back: depreciation, amortization and accretion

      2,380        1,442        3,822        2,854        1,752        4,606   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

    $ 14,355      $ 1,372      $ 15,727      $ 16,765      $ 1,651      $ 18,416   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

% of total revenue

      38.0 %      9.5 %      30.1 %      39.2 %      12.5 %      32.9 % 

Key statistics:

             

Units in service

      1,445        —          1,445        1,583        —          1,583   

Average revenue per unit (ARPU)

    $ 8.22      $ —        $ 8.22      $ 8.45      $ —        $ 8.45   

Bookings

    $ —        $ 15,626      $ 15,626      $ —        $ 15,085      $ 15,085   

Backlog

    $ —        $ 39,576      $ 39,576      $ —        $ 34,391      $ 34,391   

 

(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 STATEMENTS OF INCOME (a)

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

 

     For the six months ended June 30,  
     2013     2012  
     Wireless     Software     Total     Wireless     Software     Total  

Revenue:

             

Paging service

    $ 73,115      $ —        $ 73,115      $ 82,423      $ —        $ 82,423   

Cellular

      358        —          358        563        —          563   

Software revenue and other (b)

      2,773        28,848        31,621        3,456        25,648        29,104   

Other

      304        —          304        606        —          606   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

      76,550        28,848        105,398        87,048        25,648        112,696   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

             

Cost of revenue (b)

      107        10,561        10,668        329        9,703        10,032   

Service, rental and maintenance (b)

      21,367        4,487        25,854        23,498        4,697        28,195   

Selling and marketing

      5,039        7,524        12,563        6,020        5,552        11,572   

General and administrative

      21,382        3,655        25,037        22,934        2,729        25,663   

Severance and restructuring

      2        —          2        9        37        46   

Depreciation, amortization and accretion

      4,776        2,853        7,629        5,669        3,452        9,121   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      52,673        29,080        81,753        58,459        26,170        84,629   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

% of total revenue

      68.8 %      100.8 %      77.6 %      67.2 %      102.0 %      75.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (loss)

      23,877        (232 )      23,645        28,589        (522 )      28,067   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

% of total revenue

      31.2 %      –0.8 %      22.4 %      32.8 %      –2.0 %      24.9 % 

Interest expense, net

      (127 )      (1 )      (128 )      (254 )      —          (254 ) 

Other income (expense), net

      7        (1 )      6        393        (19 )      374   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) before income tax (expense) benefit

      23,757        (234 )      23,523        28,728        (541 )      28,187   

Income tax (expense) benefit

      (9,864 )      94        (9,770 )      (11,491 )      212        (11,279 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ 13,893      $ (140 )    $ 13,753      $ 17,237      $ (329 )    $ 16,908   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Basic net income per common share

        $ 0.63          $ 0.76   
      

 

 

        

 

 

  

Diluted net income per common share

        $ 0.63          $ 0.75   
      

 

 

        

 

 

  

Basic weighted average common shares outstanding

          21,666,096            22,118,470   
      

 

 

        

 

 

  

Diluted weighted average common shares outstanding

          21,921,742            22,601,603   
      

 

 

        

 

 

  

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

             

Operating income (loss)

    $ 23,877      $ (232 )    $ 23,645      $ 28,589      $ (522 )    $ 28,067   

Add back: depreciation, amortization and accretion

      4,776        2,853        7,629        5,669        3,452        9,121   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

    $ 28,653      $ 2,621      $ 31,274      $ 34,258      $ 2,930      $ 37,188   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

% of total revenue

      37.4 %      9.1 %      29.7 %      39.4 %      11.4 %      33.0 % 

Key statistics:

             

Units in service

      1,445        —          1,445        1,583        —          1,583   

Average revenue per unit (ARPU)

    $ 8.24      $ —        $ 8.24      $ 8.45      $ —        $ 8.45   

Bookings

    $ —        $ 29,879      $ 29,879      $ —        $ 27,502      $ 27,502   

Backlog

    $ —        $ 39,576      $ 39,576      $ —        $ 34,391      $ 34,391   

 

(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)

 

     6/30/13      12/31/12  
     (Unaudited)         

Assets

      

Current assets:

      

Cash and cash equivalents

    $ 72,029       $ 61,046   

Accounts receivable, net

      17,935         21,580   

Prepaid expenses and other

      6,714         5,836   

Inventory

      2,641         3,257   

Escrow receivables

      —           275   

Deferred income tax assets, net

      4,581         3,915   
  

 

 

     

 

 

  

Total current assets

      103,900         95,909   

Property and equipment, net

      21,150         20,809   

Goodwill

      133,031         133,031   

Other intangible assets, net

      27,836         30,333   

Deferred income tax assets, net

      31,838         41,239   

Other assets

      1,169         1,306   
  

 

 

     

 

 

  

Total assets

    $ 318,924       $ 322,627   
  

 

 

     

 

 

  

Liabilities and stockholders’ equity

      

Current liabilities:

      

Accounts payable and accrued liabilities

    $ 10,530       $ 12,659   

Accrued compensation and benefits

      12,368         17,806   

Consideration payable

      —           275   

Deferred revenue

      26,047         29,986   
  

 

 

     

 

 

  

Total current liabilities

      48,945         60,726   

Deferred revenue

      544         693   

Other long-term liabilities

      9,515         9,789   
  

 

 

     

 

 

  

Total liabilities

      59,004         71,208   
  

 

 

     

 

 

  

Commitments and contingencies

      

Stockholders’ equity:

      

Preferred stock

      —           —     

Common stock

      2         2   

Additional paid-in capital

      125,500         125,212   

Retained earnings

      134,418         126,205   
  

 

 

     

 

 

  

Total stockholders’ equity

      259,920         251,419   
  

 

 

     

 

 

  

Total liabilities and stockholders’ equity

    $ 318,924       $ 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 six months ended  
     6/30/13     6/30/12  

Cash flows from operating activities:

     

Net income

    $ 13,753      $ 16,908   

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

     

Depreciation, amortization and accretion

      7,629        9,121   

Amortization of deferred financing costs

      129        129   

Deferred income tax expense

      8,849        10,728   

Amortization of stock based compensation

      1,254        442   

Provisions for doubtful accounts, service credits and other

      833        780   

Adjustments of non-cash transaction taxes

      (251 )      (243 ) 

Loss/(Gain) on disposals of property and equipment

      167        (146 ) 

Changes in assets and liabilities:

     

Accounts receivable

      2,812        (876 ) 

Prepaid expenses and other assets

      (367 )      161   

Accounts payable and accrued liabilities

      (7,578 )      (3,160 ) 

Deferred revenue

      (4,088 )      (85 ) 
  

 

 

    

 

 

  

Net cash provided by operating activities

      23,142        33,759   
  

 

 

    

 

 

  

Cash flows from investing activities:

     

Purchases of property and equipment

      (5,268 )      (4,439 ) 

Proceeds from disposals of property and equipment

      9        318   

Acquisitions, net of cash acquired

      —          (3,000 ) 
  

 

 

    

 

 

  

Net cash used in investing activities

      (5,259 )      (7,121 ) 
  

 

 

    

 

 

  

Cash flows from financing activities:

     

Repayment of debt

      —          (28,250 ) 

Cash dividends to stockholders

      (6,900 )      (11,075 ) 
  

 

 

    

 

 

  

Net cash used in financing activities

      (6,900 )      (39,325 ) 
  

 

 

    

 

 

  

Net increase / (decrease) in cash and cash equivalents

      10,983        (12,687 ) 

Cash and cash equivalents, beginning of period

      61,046        53,655   
  

 

 

    

 

 

  

Cash and cash equivalents, end of period

    $ 72,029      $ 40,968   
  

 

 

    

 

 

  

Supplemental disclosure:

     

Interest paid

    $ 6      $ 283   
  

 

 

    

 

 

  

Income taxes paid

    $ 831      $ 936   
  

 

 

    

 

 

  

 

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

Revenues:

            

Paging service

   $ 36,064      $ 37,051      $ 38,081      $ 39,235      $ 40,548      $ 41,875   

Cellular

     163        195        275        314        286        277   

Software revenue

     15,898        15,723        13,381        15,321        14,847        14,257   

Other

     143        161        147        246        280        326   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

     52,268        53,130        51,884        55,116        55,961        56,735   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

            

Cost of revenue

     5,485        5,183        5,709        5,105        5,216        4,816   

Service, rental and maintenance

     12,822        13,032        13,499        13,731        13,892        14,303   

Selling and marketing

     6,347        6,216        6,030        6,043        5,919        5,653   

General and administrative

     11,885        13,152        12,551        12,466        12,494        13,169   

Severance and restructuring

     2        —          1,712        —          24        22   

Depreciation, amortization and accretion

     3,822        3,807        4,387        4,724        4,606        4,515   

Impairment

     —          —          3,382        —          —          —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

     40,363        41,390        47,270        42,069        42,151        42,478   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

% of total revenues

     77.2 %      77.9 %      91.1 %      76.3 %      75.3 %      74.9 % 

Operating income

     11,905        11,740        4,614        13,047        13,810        14,257   

% of total revenues

     22.8 %      22.1 %      8.9 %      23.7 %      24.7 %      25.1 % 

Interest expense, net

     (64 )      (64 )      (62 )      (64 )      (66 )      (188 ) 

Other income (expense), net

     (75 )      81        289        52        436        (62 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income tax expense

     11,766        11,757        4,841        13,035        14,180        14,007   

Income tax expense

     (4,938 )      (4,832 )      (2,814 )      (4,987 )      (5,733 )      (5,545 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

   $ 6,828      $ 6,925      $ 2,027      $ 8,048      $ 8,447      $ 8,462   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Basic net income per common share

   $ 0.32      $ 0.32      $ 0.09      $ 0.37      $ 0.38      $ 0.38   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted net income per common share

   $ 0.31      $ 0.32      $ 0.09      $ 0.36      $ 0.37      $ 0.37   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Basic weighted average common shares outstanding

     21,644,281        21,688,153        21,492,792        21,973,473        22,130,397        22,106,543   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted weighted average common shares outstanding

     21,827,149        21,904,862        21,991,673        22,399,934        22,613,517        22,589,483   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reconciliation of operating income to EBITDA (b):

            

Operating income

   $ 11,905      $ 11,740      $ 4,614      $ 13,047      $ 13,810      $ 14,257   

Add back: depreciation, amortization, accretion and impairment

     3,822        3,807        7,769        4,724        4,606        4,515   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

   $ 15,727      $ 15,547      $ 12,383      $ 17,771      $ 18,416      $ 18,772   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

% of total revenues

     30.1 %      29.3 %      23.9 %      32.2 %      32.9 %      33.1 % 

Key statistics:

            

Units in service

     1,445        1,480        1,515        1,546        1,583        1,617   

Average revenue per unit (ARPU)

   $ 8.22      $ 8.25      $ 8.29      $ 8.36      $ 8.45      $ 8.50   

Bookings

   $ 15,626      $ 14,253      $ 18,129      $ 15,670      $ 15,085      $ 12,417   

Backlog

   $ 39,576      $ 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  
     6/30/13      3/31/13      12/31/12      9/30/12      6/30/12     3/31/12  

Cost of revenue

                 

Payroll and related

    $ 2,917       $ 2,838       $ 2,634       $ 2,427       $ 2,324      $ 2,368   

Cost of sales

      2,133         1,890         2,500         2,195         2,434        2,037   

Other

      435         455         575         483         458        411   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total cost of revenue

      5,485         5,183         5,709         5,105         5,216        4,816   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Service, rental and maintenance

                 

Site rent

      4,237         4,235         4,326         4,326         4,421        4,791   

Telecommunications

      1,885         1,889         2,053         2,257         2,346        2,312   

Payroll and related

      5,074         5,203         5,432         5,309         5,360        5,529   

Stock based compensation

      10         10         7         6         6        6   

Other

      1,616         1,695         1,681         1,833         1,759        1,665   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total service, rental and maintenance

      12,822         13,032         13,499         13,731         13,892        14,303   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Selling and marketing

                 

Payroll and related

      3,672         3,594         3,519         3,504         3,544        3,559   

Commissions

      1,519         1,387         1,197         1,335         1,343        1,253   

Stock based compensation

      17         17         19         19         18        16   

Other

      1,139         1,218         1,295         1,185         1,014        825   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total selling and marketing

      6,347         6,216         6,030         6,043         5,919        5,653   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

General and administrative

                 

Payroll and related

      5,662         6,026         6,423         5,851         5,972        6,490   

Stock based compensation

      601         599         296         435         (19 )      415   

Bad debt

      265         275         300         275         270        234   

Facility rent

      839         844         889         903         868        806   

Telecommunications

      343         375         379         390         443        412   

Outside services

      2,111         3,077         2,377         2,353         2,458        2,447   

Taxes, licenses and permits

      1,166         1,233         1,312         1,249         1,426        1,501   

Other

      898         723         575         1,010         1,076        864   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total general and administrative

      11,885         13,152         12,551         12,466         12,494        13,169   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Severance and restructuring

      2         —           1,712         —           24        22   

Depreciation, amortization and accretion

      3,822         3,807         4,387         4,724         4,606        4,515   

Impairment

      —           —           3,382         —           —          —     
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Operating expenses

    $ 40,363       $ 41,390       $ 47,270       $ 42,069       $ 42,151      $ 42,478   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Capital expenditures

    $ 2,927       $ 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  
     6/30/13     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

      1,324        1,346        1,366        1,395        1,423        1,465   

Direct two-way

      73        75        79        82        85        90   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      1,397        1,421        1,445        1,477        1,508        1,555   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Indirect one-way

      38        48        55        58        60        63   

Indirect two-way

      45        46        46        48        49        50   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total indirect

      83        94        101        106        109        113   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total beginning units in service

      1,480        1,515        1,546        1,583        1,617        1,668   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross placements

             

Direct one-way

      49        39        46        45        49        41   

Direct two-way

      5        3        2        3        4        3   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      54        42        48        48        53        44   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Indirect one-way

      1        1        2        1        2        1   

Indirect two-way

      —          —          —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total indirect

      1        1        2        1        2        1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross placements

      55        43        50        49        55        45   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross disconnects

             

Direct one-way

      (66 )      (61 )      (66 )      (74 )      (77 )      (83 ) 

Direct two-way

      (5 )      (5 )      (6 )      (6 )      (7 )      (8 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      (71 )      (66 )      (72 )      (80 )      (84 )      (91 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Indirect one-way

      (3 )      (11 )      (9 )      (4 )      (4 )      (4 ) 

Indirect two-way

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total indirect

      (19 )      (12 )      (9 )      (6 )      (5 )      (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross disconnects

      (90 )      (78 )      (81 )      (86 )      (89 )      (96 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net loss

             

Direct one-way

      (17 )      (22 )      (20 )      (29 )      (28 )      (42 ) 

Direct two-way

      —          (2 )      (4 )      (3 )      (3 )      (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      (17 )      (24 )      (24 )      (32 )      (31 )      (47 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Indirect one-way

      (2 )      (10 )      (7 )      (3 )      (2 )      (3 ) 

Indirect two-way

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

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total indirect

      (18 )      (11 )      (7 )      (5 )      (3 )      (4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net change

      (35 )      (35 )      (31 )      (37 )      (34 )      (51 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units in service

             

Direct one-way

      1,307        1,324        1,346        1,366        1,395        1,423   

Direct two-way

      73        73        75        79        82        85   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      1,380        1,397        1,421        1,445        1,477        1,508   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Indirect one-way

      36        38        48        55        58        60   

Indirect two-way

      29        45        46        46        48        49   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total indirect

      65        83        94        101        106        109   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total ending units in service

      1,445        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  
     6/30/13     3/31/13     12/31/12     9/30/12     6/30/12     3/31/12  

ARPU

             

Direct one-way

    $ 7.67      $ 7.73      $ 7.78      $ 7.84      $ 7.89      $ 7.91   

Direct two-way

      19.95        20.41        20.52        20.55        20.88        21.08   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      8.33        8.40        8.47        8.54        8.62        8.67   

Indirect one-way

      8.97        8.22        7.51        7.25        7.48        7.61   

Indirect two-way

      3.89        3.76        3.87        4.08        4.19        4.33   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total indirect

      6.31        5.85        5.74        5.77        5.97        6.14   

Total one-way

      7.71        7.74        7.77        7.82        7.88        7.90   

Total two-way

      14.40        13.96        14.16        14.36        14.69        15.00   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total paging ARPU

    $ 8.22      $ 8.25      $ 8.29      $ 8.36      $ 8.45      $ 8.50   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross disconnect rate (b)

             

Direct one-way

      –5.0 %      –4.6 %      –4.8 %      –5.3 %      –5.4 %      –5.7 % 

Direct two-way

      –6.7 %      –6.6 %      –7.8 %      –7.7 %      –8.5 %      –8.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      –5.1 %      –4.7 %      –5.0 %      –5.5 %      –5.6 %      –5.8 % 

Indirect one-way

      –7.4 %      –23.6 %      –16.1 %      –7.6 %      –6.6 %      –7.0 % 

Indirect two-way

      –34.0 %      –1.6 %      –1.6 %      –3.1 %      –1.8 %      –1.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total indirect

      –22.3 %      –12.5 %      –9.3 %      –5.5 %      –4.4 %      –4.7 % 

Total one-way

      –5.1 %      –5.2 %      –5.3 %      –5.4 %      –5.4 %      –5.8 % 

Total two-way

      –17.3 %      –4.7 %      –5.4 %      –6.0 %      –6.0 %      –5.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total paging gross disconnect rate

      –6.1 %      –5.2 %      –5.3 %      –5.5 %      –5.5 %      –5.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net loss rate (c)

             

Direct one-way

      –1.3 %      –1.7 %      –1.5 %      –2.1 %      –1.9 %      –2.9 % 

Direct two-way

      –0.4 %      –1.9 %      –4.9 %      –4.0 %      –3.9 %      –4.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      –1.3 %      –1.7 %      –1.7 %      –2.2 %      –2.0 %      –3.0 % 

Indirect one-way

      –4.7 %      –21.8 %      –13.2 %      –5.6 %      –4.9 %      –5.4 % 

Indirect two-way

      –33.7 %      –1.3 %      –1.3 %      –2.5 %      –1.2 %      –0.9 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total indirect

      –21.0 %      –11.5 %      –7.6 %      –4.2 %      –3.2 %      –3.4 % 

Total one-way

      –1.4 %      –2.4 %      –1.9 %      –2.2 %      –2.0 %      –3.0 % 

Total two-way

      –13.3 %      –1.6 %      –3.5 %      –3.5 %      –2.9 %      –3.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total paging net loss rate

      –2.4 %      –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  
     6/30/13     3/31/13     12/31/12     9/30/12     6/30/12     3/31/12  

Gross placement rate (b)

             

Healthcare

      4.5 %      3.4 %      3.9 %      3.7 %      4.3 %      3.3 % 

Government

      2.3 %      1.6 %      1.5 %      2.5 %      1.8 %      1.3 % 

Large enterprise

      2.4 %      2.1 %      2.3 %      2.0 %      1.9 %      2.4 % 

Other

      1.5 %      1.8 %      1.9 %      2.1 %      2.0 %      2.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      3.8 %      3.0 %      3.3 %      3.2 %      3.5 %      2.8 % 

Total indirect

      1.4 %      1.0 %      1.7 %      1.3 %      1.2 %      1.3 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      3.7 %      2.9 %      3.2 %      3.1 %      3.4 %      2.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross disconnect rate (b)

             

Healthcare

      –4.4 %      –3.9 %      –4.4 %      –4.5 %      –4.5 %      –4.7 % 

Government

      –7.1 %      –5.9 %      –6.7 %      –6.8 %      –7.0 %      –7.7 % 

Large enterprise

      –6.7 %      –7.0 %      –5.7 %      –7.3 %      –8.0 %      –7.7 % 

Other

      –7.4 %      –7.3 %      –7.0 %      –8.1 %      –8.7 %      –9.2 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      –5.1 %      –4.7 %      –5.0 %      –5.5 %      –5.6 %      –5.8 % 

Total indirect

      –22.3 %      –12.5 %      –9.3 %      –5.5 %      –4.4 %      –4.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      –6.1 %      –5.2 %      –5.3 %      –5.5 %      –5.5 %      –5.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net loss rate (b)

             

Healthcare

      0.0 %      –0.5 %      –0.4 %      –0.9 %      –0.2 %      –1.4 % 

Government

      –4.6 %      –4.3 %      –5.2 %      –4.3 %      –5.2 %      –6.4 % 

Large enterprise

      –4.2 %      –4.9 %      –3.4 %      –5.3 %      –6.1 %      –5.3 % 

Other

      –5.9 %      –5.5 %      –5.1 %      –5.9 %      –6.8 %      –7.1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      –1.3 %      –1.7 %      –1.7 %      –2.2 %      –2.0 %      –3.0 % 

Total indirect

      –21.0 %      –11.5 %      –7.6 %      –4.2 %      –3.2 %      –3.4 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      –2.4 %      –2.3 %      –2.0 %      –2.3 %      –2.1 %      –3.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

             

Healthcare

      70.9 %      68.4 %      67.1 %      65.9 %      64.9 %      63.6 % 

Government

      9.1 %      10.1 %      10.3 %      10.8 %      11.1 %      11.5 % 

Large enterprise

      8.1 %      8.3 %      8.5 %      8.6 %      8.9 %      9.3 % 

Other

      7.3 %      7.6 %      7.9 %      8.1 %      8.4 %      8.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total direct

      95.4 %      94.4 %      93.8 %      93.4 %      93.3 %      93.2 % 

Total indirect

      4.6 %      5.6 %      6.2 %      6.6 %      6.7 %      6.8 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      100.0 %      100.0 %      100.0 %      100.0 %      100.0 %      100.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Slight variations in totals are due to rounding.
(b) Changes in the classification of units in service are reflected in the quarter when such changes are identified. Such changes are then appropriately reflected in calculating the gross placement, gross disconnect and net loss rates.

USA MOBILITY, INC. (WIRELESS)

SUPPLEMENTAL INFORMATION - DIRECT UNITS IN SERVICE AND

CELLULAR ACTIVATIONS (a)

(Unaudited)

 

     For the three months ended  
     6/30/13     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

      47        49        52        55        58        61   

4 to 10 units

      28        29        31        33        35        37   

11 to 50 units

      67        71        75        78        82        86   

51 to 100 units

      45        47        49        50        52        54   

101 to 1,000 units

      305        321        334        343        356        373   

>1,000 units

      888        880        880        886        894        897   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      1,380        1,397        1,421        1,445        1,477        1,508   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

End of period units in service % of total direct

             

1 to 3 units

      3.4 %      3.5 %      3.6 %      3.8 %      3.9 %      4.1 % 

4 to 10 units

      2.0 %      2.1 %      2.2 %      2.3 %      2.3 %      2.3 % 

11 to 50 units

      4.8 %      5.1 %      5.3 %      5.4 %      5.6 %      5.7 % 

51 to 100 units

      3.2 %      3.4 %      3.5 %      3.5 %      3.5 %      3.6 % 

101 to 1,000 units

      22.1 %      23.0 %      23.5 %      23.7 %      24.1 %      24.8 % 

>1,000 units

      64.5 %      62.9 %      61.9 %      61.3 %      60.6 %      59.5 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      100.0 %      100.0 %      100.0 %      100.0 %      100.0 %      100.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Account size net loss rate

             

1 to 3 units

      –5.1 %      –4.8 %      –5.5 %      –5.3 %      –5.7 %      –6.2 % 

4 to 10 units

      –5.3 %      –6.0 %      –5.5 %      –4.8 %      –6.2 %      –6.2 % 

11 to 50 units

      –6.4 %      –4.8 %      –4.6 %      –4.8 %      –4.1 %      –7.1 % 

51 to 100 units

      –5.3 %      –4.0 %      –2.6 %      –3.9 %      –2.4 %      –3.9 % 

101 to 1,000 units

      –5.0 %      –3.9 %      –2.6 %      –3.8 %      –4.7 %      –1.7 % 

>1,000 units

      1.1 %      –0.2 %      –0.6 %      –1.0 %      –0.3 %      –2.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

      –1.3 %      –1.7 %      –1.7 %      –2.2 %      –2.0 %      –3.0 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Account size ARPU

             

1 to 3 units

    $ 15.12      $ 15.22      $ 15.29      $ 15.43      $ 15.49      $ 15.49   

4 to 10 units

      14.29        14.33        14.39        14.42        14.40        14.45   

11 to 50 units

      11.96        12.06        12.04        12.11        12.24        12.15   

51 to 100 units

      10.42        10.47        10.47        10.48        10.35        10.52   

101 to 1,000 units

      8.84        8.84        8.94        8.97        9.01        9.04   

>1,000 units

      7.19        7.23        7.24        7.28        7.34        7.35   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 8.33      $ 8.40      $ 8.47      $ 8.54      $ 8.62      $ 8.67   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Cellular:

             

Number of activations

      799        925        1,041        948        1,052        1,070   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Revenue from cellular services (000’s)

    $ 163      $ 195      $ 275      $ 314      $ 286      $ 277   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

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