-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LsTgffqem7CaWMV+Iz3V8pQiEdDZxHqMo25gybzzSc9D+x80bE4rzTQPTiKh2xZ/ TBOt+krg8KWr+34ZpyfYZg== 0000950133-03-003840.txt : 20031113 0000950133-03-003840.hdr.sgml : 20031113 20031112185717 ACCESSION NUMBER: 0000950133-03-003840 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031110 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METROCALL HOLDINGS INC CENTRAL INDEX KEY: 0000906525 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 541215634 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-21924 FILM NUMBER: 03995416 BUSINESS ADDRESS: STREET 1: 6677 RICHMOND HWY CITY: ALEXANDRIA STATE: VA ZIP: 22306 BUSINESS PHONE: 7036606677 MAIL ADDRESS: STREET 1: 6910 RICHMOND HWY CITY: ALEXANDRIA STATE: VA ZIP: 22306 FORMER COMPANY: FORMER CONFORMED NAME: METROCALL INC DATE OF NAME CHANGE: 19930608 8-K 1 w91756e8vk.htm FORM 8-K e8vk
 



SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 10, 2003

METROCALL HOLDINGS, INC.

(Exact Name of Registrant as Specified in its Charter)
         
Delaware
 
0-21924
 
54-1215634
(State or other jurisdiction of incorporation )
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
     
6677 Richmond Highway, Alexandria, Virginia
 
22306
(Address of principal executive offices)
 
(Zip Code)

Registrant’s telephone number, including area code: (703) 660-6677



 


 

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(a)   Not applicable.

(b)   Not applicable.

(c)   The following is a list of exhibits furnished with this Current Report on Form 8-K.

         
    Exhibit No.   Description
         
    99.1   Press Release dated November 10, 2003

Item 12. Results of Operations and Financial Conditions.

     On November 10, 2003, Metrocall Holdings, Inc. issued a press release announcing its operating results for the third quarter ended September 30, 2003. A copy of the press release is furnished herewith as Exhibit 99.1.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

     
    METROCALL HOLDINGS, INC.
     
    By: /s/ George Z. Moratis
   
    Name: George Z. Moratis
    Title: Chief Financial Officer and Treasurer

Dated: November 12, 2003

 


 

EXHIBIT INDEX

         
    Exhibit No.   Description
         
    99.1   Press Release dated November 10, 2003

  EX-99.1 3 w91756exv99w1.htm EXHIBIT 99.1 exv99w1

 

Exhibit 99.1

(metrocall logo)

For Immediate Release:
Monday, November 10, 2003

Metrocall Contact:
Timothy J. Dietz
Director, Corporate Communications
& Investor Relations
(703) 660-6677x6231
dietzt@metrocall.com

Metrocall Reports Third Quarter
Operating Results

Achieves Seventh Consecutive Quarter of Free Cash Flow Growth

     Alexandria, VA, Monday, November 10, 2003 — Metrocall Holdings, Inc. (OTCBB: MTOH), a leading provider of paging and wireless messaging services, today announced net income available to common shareholders of $5.6 million and $8.8 million for the three and nine months ending September 30, 2003, respectively. Consolidated net revenues for the third quarter of 2003 were $78.4 million, bringing the aggregate net revenues for the nine-months ending September 30, 2003 to $246.6 million.

     “We are pleased and encouraged by our operating results and trend improvement in the third quarter,” stated Vincent D. Kelly, President & CEO of Metrocall. “Our operating margins continued to increase as a result of our cost containment and efficiency improvement programs, leading to our seventh consecutive quarter of free cash flow growth.”

     Net revenues for the third quarter decreased by $3.4 million or 4.2% from the second quarter of 2003. Mr. Kelly continued, “Although we experienced a $3.4 million loss in revenue in the third quarter, the rate of decrease has slowed from the preceding quarters in 2003 and 2002. We are optimistic that our customer retention initiatives

 


 

along with our focus on customer service and our wireless portfolio of products and services will help with our revenue retention results in future periods.”

     Metrocall reported a decline of 118,438 units in service during the third quarter comprised of 110,383 traditional paging units and 8,055 advanced (two-way) messaging units. Average revenue per direct and indirect unit in service was $7.06 for traditional and $24.63 for advanced messaging, representing increases of $0.11 and $1.59 per unit, respectively from the three months ended June 30, 2003.

     “Our operating results through September 30, 2003 enabled us to redeem nearly one third of our series A preferred obligations during the quarter,” said Mr. Kelly. “Since implementing our plan of reorganization in October, 2002 we have retired approximately $80 million of long-term debt securities and $20 million of series A preferred stock.” As of September 30, 2003, Metrocall had cash and cash equivalents of $13.7 million, no long-term debt securities and $46.7 million aggregate liquidation value of redeemable series A preferred outstanding.

     Metrocall’s operating results include separate results and cash flows prior to its emergence from bankruptcy on October 8, 2002 (the Predecessor Company), as well as operating results and cash flows after its emergence from bankruptcy (the Reorganized Company), reflecting the application of “fresh-start” accounting that resulted from the Company’s Chapter 11 reorganization. Consequently, and due to other reorganization-related events and adjustments, the Predecessor Company’s financial statements, share and per share information for the three and nine-month periods ending September 30, 2002 are not comparable to the Reorganized Company’s financial statements for the three and nine-month periods ending September 30, 2003. In addition, all share and per share amounts of the Reorganized Company give effect to the 5 for 1 common stock split effected through a common stock dividend on October 16, 2003.

About Metrocall, Inc.

     Metrocall, Inc., headquartered in Alexandria, Virginia, is the nation’s second largest narrowband wireless messaging provider offering paging products and other wireless services to business and individual subscribers. With national networks and operations, the Company provides reliable and cost effective wireless services that are well suited for solving the mobile business communication needs. Metrocall focuses on the business-to-business marketplace and supports organizations of all sizes, with a special emphasis on the medical and government sectors. In addition to traditional numeric and one-way text paging, the Company also offers two-way interactive advanced messaging, wireless e-mail solutions, as well as mobile voice and data services through AT&T Wireless and Nextel. Also, Metrocall offers Integrated Resource Management Systems with wireless connectivity solutions for medical, business and

 


 

campus environments. For more information on Metrocall please visit our Web site and on-line store at www.metrocall.com or call 800-800-2337.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This press release includes “forward-looking statements,” within the meaning of the federal securities laws, that involve uncertainties and risks. These include statements regarding events or developments that Metrocall Holdings expects or anticipates will occur in the future. A number of risks and uncertainties could cause actual results, events, and developments to differ from expectations. Business Risks include the possibility that two-way service may lack vendor support, quantity and quality. Please refer to Metrocall’s most recent quarterly report on Form 10-Q and annual report on Form 10-K, and any subsequently filed reports on Form 10-Q and Form 8-K, as well as its other filings with the Securities and Exchange Commission, for a complete discussion of these and other important factors that could cause actual results to differ materially from those projected by these forward-looking statements.

 


 

Metrocall Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
Unaudited
(Dollars in thousands, except device, share and per share amounts)

                                       
          Reorganized   Predecessor   Reorganized   Predecessor
          Company   Company   Company   Company
         
 
 
 
          Three Months Ended   Nine Months Ended
          September 30,   September 30,
         
 
          2003   2002   2003   2002
         
 
 
 
Revenues
                               
   
Service, rent and maintenance revenues
  $ 75,459     $ 92,395     $ 237,260     $ 294,003  
   
Product sales
    4,155       6,833       12,528       23,777  
   
 
   
     
     
     
 
   
Net book value of products sold
    (1,212 )     (3,675 )     (3,143 )     (14,176 )
   
 
   
     
     
     
 
 
    78,402       95,553       246,645       303,604  
 
   
     
     
     
 
 
                               
Operating Expenses
                               
   
Service, rent and maintenance
    20,877       28,676       67,681       88,835  
   
Selling and marketing
    9,174       12,778       31,182       50,064  
   
General and administrative
    21,970       31,659       72,156       100,744  
   
Restructuring
    521       5,951       6,247       18,505  
   
Depreciation and amortization
    6,432       13,512       29,114       49,332  
   
 
   
     
     
     
 
 
    58,974       92,576       206,380       307,480  
 
   
     
     
     
 
     
Income/(loss) from operations
    19,428       2,977       40,265       (3,876 )
 
                               
Interest expense
    (805 )     (2,659 )     (6,703 )     (39,364 )
Interest expense — dividends and accretion of series A preferred*
    (6,413 )           (6,413 )      
Interest and other income (expense)
    97       594       329       (1,036 )
   
 
   
     
     
     
 
Income/(loss) before income tax provision
    12,307       912       27,478       (44,276 )
Income tax provision
    (6,725 )           (12,537 )      
 
   
     
     
     
 
     
Net income/(loss)
    5,582       912       14,941       (44,276 )
Preferred dividends
                (6,092 )     (4,855 )
Reorganization item — accretion of liquidation preference
                      (4,715 )
 
   
     
     
     
 
     
Income/(loss) attributable to common stockholders
  $ 5,582     $ 912     $ 8,849     $ (53,846 )
 
   
     
     
     
 
 
                               
Basic and diluted income/(loss) per share
                               
 
attributable to common stockholders
                               
   
Basic income/(loss) attributable to common stockholders
  $ 1.13     $ 0.01     $ 1.78     $ (0.60 )
   
Diluted income/(loss) attributable to common stockholders
  $ 1.08     $ 0.01     $ 1.75     $ (0.60 )
Basic weighted-average number of common shares outstanding
    4,960,200       89,975,772       4,958,597       89,975,772  
Diluted weighted-average number of common shares outstanding
    5,161,502       89,975,772       5,054,987       89,975,772  

* Beginning July 1, 2003, we adopted the provisions of SFAS No. 150,“Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity.” Pursuant to SFAS No. 150, for periods subsequent to June 30, 2003, we recorded dividends and accretion expenses of our mandatorily redeemable series A preferred stock as a component of interest expense in the determination of net income for the period. Prior to July 1, 2003, dividends and accretion expenses had been excluded from net income and reflected as a reduction to net income in the determination of income available to common stockholders. Under the provisions of SFAS No. 150, no prior periods (periods ending prior to July 1, 2003) were re-classifed to conform to the presentation stipulated by the Statement.

 


 

                                 
    Reorganized   Predecessor   Reorganized   Predecessor
    Company   Company   Company   Company
   
 
 
 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
   
 
Other Selected Data:   2003   2002   2003   2002
   
 
 
 
Net revenues
  $ 78,402     $ 95,553     $ 246,645     $ 303,604  
Operating cash flow or EBITDA
  $ 26,381     $ 22,440     $ 75,626     $ 63,961  
Operating cash flow margin on net revenues
    33.6 %     23.5 %     30.7 %     21.1 %
Interest expenses paid
  $     $ 2,612     $ 798     $ 7,917  
Capital expenditures
  $ 2,744     $ 4,010     $ 5,914     $ 23,918  
Free cash flow
  $ 23,637     $ 15,818     $ 68,914     $ 32,126  
Free cash flow margin on net revenues
    30.1 %     16.6 %     27.9 %     10.6 %
Net cash provided by operating activities
  $ 28,666     $ 25,302     $ 76,587     $ 54,108  
Net cash used for investing activities
  $ (3,403 )   $ (5,281 )   $ (5,478 )   $ (24,679 )
Net cash used for financing activities
  $ (22,760 )   $ (209 )   $ (104,923 )   $ (614 )
Units in service (end of period)
    3,013,426       4,071,547       3,013,426       4,071,547  
Composite ARPU
  $ 8.13     $ 7.10     $ 7.86     $ 6.79  

Non-GAAP measures:

     Operating cash flow and free cash flow used in this press release are non-GAAP financial measures as defined by Regulation G adopted by the Securities and Exchange Commission (“Regulation G”). Operating cash flow or EBITDA is defined as earnings (net income) before interest expenses, income taxes, depreciation and amortization, and restructuring expenses. Free cash flow is defined as operating cash flow less amounts paid for interest on senior secured and subordinated long-term debt and capital expenditures. As required by Regulation G, Metrocall is providing the following reconciliation of these measures to the most directly comparable GAAP measure.

     Operating cash flow and free cash flow are measures used by financial analysts and institutions for evaluating financial performance of companies in our industry. Our management uses these measures as a basis for assessing operating efficiency, overall financial performance and profitability. They should not be considered as a substitute for net income (loss), operating income, cash flows from operating activities or any other measure that is calculated in accordance with GAAP and they may not be comparable to similar measures employed by other companies.

Reconciliation of Net income to operating cash flow
     and computation of free cash flow

                                 
Net income/(loss)
  $ 5,582     $ 912     $ 14,941     $ (44,276 )
Income tax provision
    6,725             12,537        
Interest expense and other income
    708       2,065       6,374       40,400  
Interest expense — dividends and accretion on series A preferred
    6,413             6,413        
Depreciation and amortization
    6,432       13,512       29,114       49,332  
Restructuring expenses
    521       5,951       6,247       18,505  
 
   
     
     
     
 
Operating cash flow or EBITDA
    26,381       22,440       75,626       63,961  
 
                               
Cash interest paid on LT senior secured and sub. debt
          2,612       798       7,917  
Capital expenditures
    2,744       4,010       5,914       23,918  
Free cash flow
  $ 23,637     $ 15,818     $ 68,914     $ 32,126  
 
   
     
     
     
 

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