SPRINGFIELD, Va.--(BUSINESS WIRE)--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, 2011. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per share, payable on September 9, 2011 to stockholders of record on August 19, 2011.
Total revenue for the second quarter was $65.2 million, including $52.1 million from the Company’s Wireless business (USA Mobility Wireless) and $13.1 million from its Software business (Amcom Software). Software maintenance revenue was reduced by $2.6 million for purchase accounting adjustments. Wireless revenue was $52.1 million compared to $52.5 million in the first quarter and $59.1 million in the second quarter of 2010. Software revenue was $13.1 million compared to $4.8 million in the first quarter, which included results for only the 29-day period from March 3, 2011 to March 31, 2011 and purchase accounting adjustments of $0.9 million.
Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $21.4 million, including $20.4 million from Wireless and $1.0 million from Software. EBITDA from Wireless was $20.4 million compared to $17.0 million in the prior quarter and $20.4 million in the year-earlier quarter. EBITDA from Software was $1.0 million compared to $0.9 million in the first quarter, which reflected results for only the 29-day period ended March 31, 2011. Excluding the purchase accounting adjustments, second quarter EBITDA would have been $24.1 million or 35.5 percent of revenue.
Net income for the second quarter was $18.6 million, or $0.82 per fully diluted share, compared to $13.1 million, or $0.58 per fully diluted share, in the year-earlier quarter. Excluding the purchase accounting adjustments, net income for the second quarter would have been $20.6 million or $0.91 per fully diluted share.
Second quarter results included:
Wireless
- Net unit losses were 49,000 in the second quarter, compared to 61,000 in the first quarter and 72,000 in the second quarter of 2010, while the quarterly rate of unit erosion improved to 2.7 percent from 3.5 percent in the year-earlier quarter. The annual rate of subscriber erosion was 12.2 percent in the second quarter, compared to 17.2 percent in the year-ago quarter, and was the lowest annual unit loss rate in more than six years. Units in service at June 30, 2011 totaled 1,779,000, compared to 2,027,000 a year earlier.
- The quarterly rate of revenue erosion improved significantly to 0.8 percent in the second quarter from 3.9 percent in the first quarter and 5.8 percent in the year-earlier quarter, and was the lowest quarterly rate of revenue decline since the Company’s formation in 2004. The annual rate of revenue erosion improved to 11.9 percent from 16.3 percent in the first quarter and 21.3 percent in the year-earlier quarter, also reaching its lowest level in many years.
- Total ARPU (average revenue per unit) was $8.74 in the second quarter, compared to $8.72 in the first quarter and $8.87 in the second quarter of 2010.
Software
- Bookings for the quarter ended June 30, 2011 were $15.2 million, while the backlog was $20.5 million at June 30th.
- Of the $13.1 million in Software revenue, $3.2 million was maintenance revenue and $9.9 million was operations revenue (which includes software, professional services and equipment sales). Software revenue, excluding the purchase accounting adjustments of $2.6 million, was $15.7 million for the second quarter, an Amcom company record.
- The renewal rate for maintenance in the second quarter was 99.9 percent.
Total Company
- Operating expenses (excluding depreciation, amortization and accretion) totaled $43.7 million in the second quarter, with $31.7 million for Wireless and $12.0 million for Software, compared to operating expenses of $39.5 million in the first quarter, with $35.6 million for Wireless (which included $2.9 million in acquisition related expenses) and $3.9 million for Software for the 29-day period ended March 31.
- EBITDA margin (or EBITDA as a percentage of revenue) was 32.9 percent, compared to 31.2 percent in the first quarter. EBITDA margin for Wireless was 39.2 percent, compared to 32.3 percent in the first quarter and 34.6 percent in the year-earlier quarter.
- Capital expenses were $1.9 million, compared to $0.6 million in the second quarter of 2010.
- Stockholders’ dividends paid were $5.5 million in the second quarter.
- The Company’s cash balance at June 30, 2011 was $29.5 million.
- The Company retired $14.1 million of bank debt during the second quarter. The outstanding debt balance at June 30, 2011 was $37.8 million at an interest rate of 5.25 percent.
Vincent D. Kelly, president and chief executive officer, said: “We are pleased to report outstanding operating results for the second quarter. Consistent with financial guidance we provided earlier this year, results either met or exceeded key performance targets for both our Wireless and Software businesses. We were especially encouraged to see significant improvement in the pace of paging subscriber and revenue erosion, as rates of decline reached their best level in many years. Our recently acquired Software subsidiary, Amcom Software, also recorded a strong performance with solid bookings and a growing backlog. At the same time, we continued to maintain strong operating margins, reduce expenses in our Wireless business, pay down debt incurred with the Amcom acquisition, and generate sufficient cash flow to again return capital to stockholders in the form of dividend distributions.”
Kelly said the Company continued to focus Wireless sales and marketing efforts during the quarter around its core market segments of Healthcare, Government and Large Enterprise. “These core segments represented 89.5 percent of our direct subscriber base and 84.3 percent of our direct paging revenue at the end of the second quarter. Healthcare, which now represents 65.5 percent of our direct customer base, continued to be our best performing market segment with the highest rate of gross placements and lowest rate of net unit loss. The net loss rate among Healthcare accounts improved to 0.5 percent in the second quarter, its lowest level in years, as healthcare providers continue to benefit from the reliability of paging for their most critical messaging needs.”
With respect to the Software business, Christopher Heim, president of Amcom Software, noted: “Amcom continues to outperform expectations. During the quarter our Software sales team continued to sell solutions primarily to the hospital market where there is growing demand for call center management, critical smartphone messaging, and clinical middleware. As a result, we ended the quarter with a solid backlog and pipeline of new business opportunities. In addition, we ramped up training programs for both Software and Wireless sales teams during the quarter with the goal of sharing account leads and generating cross selling opportunities for each line of business. Looking ahead, we expect to further integrate the operational capabilities of each business to enhance organizational efficiencies and generate additional business prospects.”
Shawn E. Endsley, chief financial officer, said the Company continued to reduce operating expenses in its Wireless business during the second quarter. “Recurring operating expenses (excluding depreciation, amortization and accretion) for Wireless decreased 18.0 percent from the year-earlier quarter,” Endsley noted, “exceeding the 11.9 percent rate of Wireless revenue decline.” As a result, he added, the Company continued to generate strong cash flow during the quarter. “Including software operations for the full quarter, the combined businesses generated net cash from operating activities of $20.1 million, compared to $12.7 million in the first quarter.”
Regarding financial guidance for 2011, Endsley said the Company revised and improved its prior guidance for the full year based primarily on the strong performance of its Wireless business. In schedules attached to this press release, the full-year adjusted guidance reflects Software’s results for the partial year (March 3 to December 31) as well as the required purchase accounting adjustments for deferred revenue. As such, Endsley said the Company expects total revenues for 2011 to range from $235 million to $248 million (versus earlier guidance of $224 million to $240 million), with Wireless between $193 million and $200 million (up from $182 million and $192 million) and Software between $42 million and $48 million; operating expenses (excluding depreciation, amortization and accretion) to range from $162 million to $174 million (versus earlier guidance of $167 million to $176 million), with Wireless between $127 million and $134 million (versus $132 million and $136 million) and Software between $35 million and $40 million; and capital expenses to range from $6.5 million to $9 million (versus prior guidance of $6 million to $9 million), with Wireless between $6 million and $8 million (versus $5 million and $7 million) and Software between $0.5 million and $1 million (versus $1 million and $2 million).
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its second quarter operating results at 10:00 a.m. Eastern Time on Thursday, July 28, 2011. Dial-in numbers for the call are 719-325-4779 or 877-545-1407. The pass code for the call is 5986417. A replay of the call will be available from 1:00 p.m. ET on July 28 until 11:59 p.m. on Thursday, August 11. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 5986417.
* * * * * * * * *
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. In addition, through its Amcom Software subsidiary, it provides mission critical unified communications solutions for hospitals, contact centers, emergency management, mobile event notification and messaging. As a single-source provider, USA Mobility's focus is on the business-to-business marketplace and supplying 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 also offers mobile voice and data services through Sprint Nextel and T-Mobile, including BlackBerry® smartphones and GPS location applications. The Company's product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. USA Mobility also offers M2M (machine-to-machine) telemetry solutions for numerous applications that include asset tracking, utility meter reading and other remote device monitoring applications on a national scale. 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, 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, government regulation, reliance upon third-party providers for certain equipment and services, as well as other risks described from time to time in periodic reports and registration statements filed with the Securities and Exchange Commission. Although USA Mobility believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. USA Mobility disclaims any intent or obligation to update any forward-looking statements.
| USA MOBILITY, INC. | ||||||||||||||
| FINANCIAL GUIDANCE | ||||||||||||||
| (In millions) | ||||||||||||||
| Full Year | Adjusted | |||||||||||||
| Guidance Range (a) | Guidance Range (b) | |||||||||||||
| From | To | From | To | |||||||||||
| Revenues | ||||||||||||||
| Wireless | $ | 182.0 | $ | 192.0 | $ | 193.0 | $ | 200.0 | ||||||
| Software | 57.0 | 63.0 | (c) | 42.0 | 48.0 | |||||||||
| Combined | $ | 239.0 | $ | 255.0 | $ | 235.0 | $ | 248.0 | ||||||
| Operating Expenses (d) | ||||||||||||||
| Wireless | $ | 136.0 | $ | 132.0 | $ | 134.0 | $ | 127.0 | ||||||
| Software | 47.0 | 43.0 | 40.0 | 35.0 | ||||||||||
| Combined | $ | 183.0 | $ | 175.0 | $ | 174.0 | $ | 162.0 | ||||||
| Capital Expenses | ||||||||||||||
| Wireless | $ | 7.0 | $ | 5.0 | $ | 8.0 | $ | 6.0 | ||||||
| Software | 2.0 | 1.0 | 1.0 | 0.5 | ||||||||||
| Combined | $ | 9.0 | $ | 6.0 | $ | 9.0 | $ | 6.5 | ||||||
| (a) The full year guidance assumes that the Amcom Software, Inc. ("Software") acquisition had occurred as of January 1, 2011. | ||||||||||||||
| (b) The adjusted guidance for 2011 reflects Software's results from March 3, 2011, the date of acquisition, and reflects the fair value adjustment to maintenance revenues as required by generally accepted accounting principles. | ||||||||||||||
| (c) The full year guidance for Software revenues does NOT reflect any fair value adjustment to maintenance revenue as a result of purchase accounting. | ||||||||||||||
| (d) Operating expenses exclude depreciation, amortization and accretion. | ||||||||||||||
| USA MOBILITY, INC. | ||||||||||||||||||||||||
| CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a), (b) | ||||||||||||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||||||||||
| For the three months ended 6/30/2011 | For the six months ended 6/30/2011 | |||||||||||||||||||||||
| Wireless | Software | Total | Wireless | Software | Total | |||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||
| Paging service | $ | 47,319 | $ | - | $ | 47,319 | $ | 95,947 | $ | - | $ | 95,947 | ||||||||||||
| Cellular | 1,199 | - | 1,199 | 1,883 | - | 1,883 | ||||||||||||||||||
| Product sales (d) | 2,805 | 13,080 | 15,885 | 5,149 | 17,878 | 23,027 | ||||||||||||||||||
| Other | 768 | - | 768 | 1,648 | - | 1,648 | ||||||||||||||||||
| Total revenue | 52,091 | 13,080 | 65,171 | 104,627 | 17,878 | 122,505 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Cost of products sold (d) | 1,171 | 5,906 | 7,077 | 1,834 | 7,668 | 9,502 | ||||||||||||||||||
| Service, rental and maintenance | 14,211 | 1,976 | 16,187 | 30,027 | 2,622 | 32,649 | ||||||||||||||||||
| Selling and marketing | 3,946 | 2,643 | 6,589 | 7,779 | 3,731 | 11,510 | ||||||||||||||||||
| General and administrative | 12,351 | 1,515 | 13,866 | 27,591 | 1,903 | 29,494 | ||||||||||||||||||
| Severance and restructuring | 17 | - | 17 | 50 | - | 50 | ||||||||||||||||||
| Depreciation, amortization and accretion | 3,618 | 1,680 | 5,298 | 7,650 | 2,188 | 9,838 | ||||||||||||||||||
| Total operating expenses | 35,314 | 13,720 | 49,034 | 74,931 | 18,112 | 93,043 | ||||||||||||||||||
| % of total revenue | 67.8 | % | 104.9 | % | 75.2 | % | 71.6 | % | 101.3 | % | 76.0 | % | ||||||||||||
| Operating income (loss) | 16,777 | (640 | ) | 16,137 | 29,696 | (234 | ) | 29,462 | ||||||||||||||||
| % of total revenue | 32.2 | % | -4.9 | % | 24.8 | % | 28.4 | % | -1.3 | % | 24.0 | % | ||||||||||||
| Interest expense, net | (862 | ) | - | (862 | ) | (1,109 | ) | (9 | ) | (1,118 | ) | |||||||||||||
| Other income, net | 7,692 | - | 7,692 | 7,897 | - | 7,897 | ||||||||||||||||||
| Income (loss) before income tax expense (benefit) | 23,607 | (640 | ) | 22,967 | 36,484 | (243 | ) | 36,241 | ||||||||||||||||
| Income tax expense (benefit) | 4,668 | (296 | ) | 4,372 | (22,915 | ) | (90 | ) | (23,005 | ) | ||||||||||||||
| Net income (loss) | $ | 18,939 | $ | (344 | ) | $ | 18,595 | $ | 59,399 | $ | (153 | ) | $ | 59,246 | ||||||||||
| Basic net income per common share | $ | 0.84 | $ | 2.68 | ||||||||||||||||||||
| Diluted net income per common share | $ | 0.82 | $ | 2.64 | ||||||||||||||||||||
| Basic weighted average common shares outstanding | 22,086,848 | 22,075,185 | ||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 22,551,862 | 22,443,417 | ||||||||||||||||||||||
| Reconciliation of operating income (loss) to EBITDA (c): | ||||||||||||||||||||||||
| Operating income (loss) | $ | 16,777 | $ | (640 | ) | $ | 16,137 | $ | 29,696 | $ | (234 | ) | $ | 29,462 | ||||||||||
| Add back: depreciation, amortization and accretion | 3,618 | 1,680 | 5,298 | 7,650 | 2,188 | 9,838 | ||||||||||||||||||
| EBITDA | $ | 20,395 | $ | 1,040 | $ | 21,435 | $ | 37,346 | $ | 1,954 | $ | 39,300 | ||||||||||||
| % of total revenue | 39.2 | % | 8.0 | % | 32.9 | % | 35.7 | % | 10.9 | % | 32.1 | % | ||||||||||||
| (a) Includes consolidated results of operations of USA Mobility Wireless, Inc. ("Wireless") and Software. | ||||||||||||||||||||||||
| (b) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||
| (c) EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. | ||||||||||||||||||||||||
| (d) Wireless results were reduced by $343,000 for intercompany revenue and cost of products sold. | ||||||||||||||||||||||||
| USA MOBILITY, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (a) | ||||||
| (In thousands) | ||||||
| 6/30/11 | 12/31/10 | |||||
| (Unaudited) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 29,470 | $ | 129,220 | ||
| Accounts receivable, net | 22,894 | 13,419 | ||||
| Prepaid expenses and other | 3,800 | 2,638 | ||||
| Inventory | 2,845 | 160 | ||||
| Tax receivables | 6,420 | 5,004 | ||||
| Escrow receivables | 7,319 | - | ||||
| Deferred income tax assets, net | 9,043 | 3,915 | ||||
| Total current assets | 81,791 | 154,356 | ||||
| Tax receivables | 191 | 191 | ||||
| Property and equipment, net | 24,632 | 27,135 | ||||
| Goodwill | 130,921 | - | ||||
| Other intangible assets, net | 41,848 | 511 | ||||
| Deferred income tax assets, net | 49,469 | 47,390 | ||||
| Escrow receivables | 7,500 | - | ||||
| Deferred financing costs, net | 1,135 | - | ||||
| Other assets | 1,186 | 1,075 | ||||
| Total assets | $ | 338,673 | $ | 230,658 | ||
| Liabilities and stockholders' equity | ||||||
| Current liabilities: | ||||||
| Current portion of long-term debt | $ | 11,875 | $ | - | ||
| Consideration payable | 7,319 | - | ||||
| Accounts payable and accrued liabilities | 14,166 | 14,794 | ||||
| Accrued compensation and benefits | 10,305 | 12,701 | ||||
| Customer deposits | 3,769 | 718 | ||||
| Deferred revenue | 12,129 | 6,268 | ||||
| Total current liabilities | 59,563 | 34,481 | ||||
| Long-term debt, net of current portion | 25,947 | - | ||||
| Consideration payable | 7,500 | - | ||||
| Deferred revenue | 287 | - | ||||
| Other long-term liabilities | 11,807 | 11,787 | ||||
| Total liabilities | 105,104 | 46,268 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Preferred stock | - | - | ||||
| Common stock | 2 | 2 | ||||
| Additional paid-in capital | 130,846 | 129,696 | ||||
| Retained earnings | 102,721 | 54,692 | ||||
| Total stockholders' equity | 233,569 | 184,390 | ||||
| Total liabilities and stockholders' equity | $ | 338,673 | $ | 230,658 | ||
| (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 | ||||||||
| 6/30/11 | 6/30/10 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 59,246 | $ | 21,974 | ||||
|
Adjustments to reconcile net income to net cash provided |
||||||||
| Depreciation, amortization and accretion | 9,838 | 14,002 | ||||||
| Amortization of deferred financing costs | 273 | - | ||||||
| Deferred income tax (benefit) expense | (23,371 | ) | 6,577 | |||||
| Amortization of stock based compensation | 679 | 534 | ||||||
| Provisions for doubtful accounts, service credits and other | 490 | 2,400 | ||||||
| Settlement of non-cash transaction taxes | 308 | (667 | ) | |||||
| (Gain)/Loss on disposals of property and equipment | (37 | ) | 22 | |||||
| (Gain)/Loss on disposals of narrow band PCS licenses | (7,500 | ) | - | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (1,600 | ) | 1,996 | |||||
| Prepaid expenses, intangibles and other assets | 1,669 | (17 | ) | |||||
| Accounts payable and accrued liabilities | (8,936 | ) | (6,188 | ) | ||||
| Customer deposits and deferred revenue | 1,777 | (833 | ) | |||||
| Net cash provided by operating activities | 32,836 | 39,800 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (3,355 | ) | (2,288 | ) | ||||
| Proceeds from disposals of property and equipment | 35 | 58 | ||||||
| Proceeds from disposals of narrow band PCS licenses | 7,500 | - | ||||||
| Acquisitions, net of cash acquired | (134,217 | ) | - | |||||
| Net cash used in investing activities | (130,037 | ) | (2,230 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Issuance of debt | 24,044 | - | ||||||
| Repayment of debt | (14,125 | ) | - | |||||
| Deferred financing costs | (1,408 | ) | - | |||||
| Cash dividends to stockholders | (11,060 | ) | (11,151 | ) | ||||
| Purchase of common stock | - | (6,887 | ) | |||||
| Net cash used in financing activities | (2,549 | ) | (18,038 | ) | ||||
| Net (decrease) increase in cash and cash equivalents | (99,750 | ) | 19,532 | |||||
| Cash and cash equivalents, beginning of period | 129,220 | 109,591 | ||||||
| Cash and cash equivalents, end of period | $ | 29,470 | $ | 129,123 | ||||
| Supplemental disclosure: | ||||||||
| Interest paid | $ | 685 | $ | - | ||||
| Income taxes paid | $ | 817 | $ | 362 | ||||
| Non-cash financing activities | $ | 27,750 | $ | - | ||||
| (a) Slight variations in totals are due to rounding. | ||||||||
| USA MOBILITY, INC. (WIRELESS) | ||||||||||||||||||||||||
| CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (a) | ||||||||||||||||||||||||
| (Unaudited and in thousands, except share and per share amounts) | ||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||
| 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||
| Paging service | $ | 47,319 | $ | 48,628 | $ | 50,319 | $ | 52,778 | $ | 54,875 | $ | 57,832 | ||||||||||||
| Cellular | 1,199 | 684 | 499 | 532 | 624 | 708 | ||||||||||||||||||
| Product sales (b) | 2,805 | 2,344 | 2,784 | 2,805 | 2,732 | 3,358 | ||||||||||||||||||
| Other | 768 | 880 | 1,046 | 595 | 881 | 886 | ||||||||||||||||||
| Total revenues | 52,091 | 52,536 | 54,648 | 56,710 | 59,112 | 62,784 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Cost of products sold (b) | 1,171 | 663 | 1,051 | 819 | 1,134 | 1,209 | ||||||||||||||||||
| Service, rental and maintenance | 14,211 | 15,816 | 16,221 | 16,821 | 17,175 | 18,941 | ||||||||||||||||||
| Selling and marketing | 3,946 | 3,833 | 3,915 | 4,060 | 4,394 | 4,557 | ||||||||||||||||||
| General and administrative | 12,351 | 15,240 | 14,829 | 12,907 | 15,924 | 15,812 | ||||||||||||||||||
| Severance and restructuring | 17 | 33 | 1,738 | 86 | 41 | 314 | ||||||||||||||||||
| Depreciation, amortization and accretion | 3,618 | 4,032 | 4,226 | 5,899 | 6,698 | 7,304 | ||||||||||||||||||
| Total operating expenses | 35,314 | 39,617 | 41,980 | 40,592 | 45,366 | 48,137 | ||||||||||||||||||
| % of total revenues | 67.8 | % | 75.4 | % | 76.8 | % | 71.6 | % | 76.7 | % | 76.7 | % | ||||||||||||
| Operating income | 16,777 | 12,919 | 12,668 | 16,118 | 13,746 | 14,647 | ||||||||||||||||||
| % of total revenues | 32.2 | % | 24.6 | % | 23.2 | % | 28.4 | % | 23.3 | % | 23.3 | % | ||||||||||||
| Interest (expense) income, net | (862 | ) | (247 | ) | 3 | 6 | 4 | 3 | ||||||||||||||||
| Other income, net | 7,692 | 205 | 227 | 2,320 | 180 | 78 | ||||||||||||||||||
| Income before income tax expense (benefit) | 23,607 | 12,877 | 12,898 | 18,444 | 13,930 | 14,728 | ||||||||||||||||||
| Income tax expense (benefit) | 4,668 | (27,583 | ) | (27,642 | ) | 3,060 | 841 | 5,843 | ||||||||||||||||
| Net income | $ | 18,939 | $ | 40,460 | $ | 40,540 | $ | 15,384 | $ | 13,089 | $ | 8,885 | ||||||||||||
| Basic net income per common share | $ | 0.86 | $ | 1.84 | $ | 1.84 | $ | 0.70 | $ | 0.59 | $ | 0.39 | ||||||||||||
| Diluted net income per common share | $ | 0.84 | $ | 1.82 | $ | 1.82 | $ | 0.69 | $ | 0.58 | $ | 0.39 | ||||||||||||
| Basic weighted average common shares outstanding | 22,086,848 | 22,063,393 | 22,050,512 | 22,060,636 | 22,307,488 | 22,654,240 | ||||||||||||||||||
| Diluted weighted average common shares outstanding | 22,551,862 | 22,333,399 | 22,323,551 | 22,372,786 | 22,620,707 | 22,967,192 | ||||||||||||||||||
| Reconciliation of operating income to EBITDA (c): | ||||||||||||||||||||||||
| Operating income | $ | 16,777 | $ | 12,919 | $ | 12,668 | $ | 16,118 | $ | 13,746 | $ | 14,647 | ||||||||||||
| Add back: depreciation, amortization and accretion | 3,618 | 4,032 | 4,226 | 5,899 | 6,698 | 7,304 | ||||||||||||||||||
| EBITDA | $ | 20,395 | $ | 16,951 | $ | 16,894 | $ | 22,017 | $ | 20,444 | $ | 21,951 | ||||||||||||
| % of total revenues | 39.2 | % | 32.3 | % | 30.9 | % | 38.8 | % | 34.6 | % | 35.0 | % | ||||||||||||
| (a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||
| (b) Wireless results were reduced by $343,000 for intercompany revenue and cost of products sold. | ||||||||||||||||||||||||
| (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. (WIRELESS) | ||||||||||||||||||
| UNITS IN SERVICE ACTIVITY (a) | ||||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||||
| For the three months ended | ||||||||||||||||||
| 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||
|
Units in service |
||||||||||||||||||
| Beginning units in service | ||||||||||||||||||
| Direct one-way | 1,597 | 1,645 | 1,692 | 1,749 | 1,804 | 1,881 | ||||||||||||
| Direct two-way | 102 | 106 | 109 | 121 | 126 | 133 | ||||||||||||
| Total direct | 1,699 | 1,751 | 1,801 | 1,870 | 1,930 | 2,014 | ||||||||||||
| Indirect one-way | 78 | 68 | 75 | 82 | 90 | 101 | ||||||||||||
| Indirect two-way | 51 | 70 | 74 | 75 | 79 | 67 | ||||||||||||
| Total indirect | 129 | 138 | 149 | 157 | 169 | 168 | ||||||||||||
| Total beginning units in service | 1,828 | 1,889 | 1,950 | 2,027 | 2,099 | 2,182 | ||||||||||||
| Gross placements | ||||||||||||||||||
| Direct one-way | 55 | 46 | 45 | 58 | 62 | 53 | ||||||||||||
| Direct two-way | 6 | 4 | 6 | 4 | 6 | 5 | ||||||||||||
| Total direct | 61 | 50 | 51 | 62 | 68 | 58 | ||||||||||||
| Indirect one-way | 2 | 2 | 2 | 3 | 3 | 3 | ||||||||||||
| Indirect two-way | 1 | 0 | 1 | 1 | 1 | 15 | ||||||||||||
| Total indirect | 3 | 2 | 3 | 4 | 4 | 18 | ||||||||||||
| Total gross placements | 64 | 52 | 54 | 66 | 72 | 76 | ||||||||||||
| Gross disconnects | ||||||||||||||||||
| Direct one-way | (96 | ) | (94 | ) | (92 | ) | (115 | ) | (117 | ) | (130 | ) | ||||||
| Direct two-way | (9 | ) | (8 | ) | (9 | ) | (16 | ) | (11 | ) | (12 | ) | ||||||
| Total direct | (105 | ) | (102 | ) | (101 | ) | (131 | ) | (128 | ) | (142 | ) | ||||||
| Indirect one-way | (6 | ) | 8 | (9 | ) | (10 | ) | (11 | ) | (14 | ) | |||||||
| Indirect two-way | (2 | ) | (19 | ) | (5 | ) | (2 | ) | (5 | ) | (3 | ) | ||||||
| Total indirect | (8 | ) | (11 | ) | (14 | ) | (12 | ) | (16 | ) | (17 | ) | ||||||
| Total gross disconnects | (113 | ) | (113 | ) | (115 | ) | (143 | ) | (144 | ) | (159 | ) | ||||||
| Net gain / (loss) | ||||||||||||||||||
| Direct one-way | (41 | ) | (48 | ) | (47 | ) | (57 | ) | (55 | ) | (77 | ) | ||||||
| Direct two-way | (3 | ) | (4 | ) | (3 | ) | (12 | ) | (5 | ) | (7 | ) | ||||||
| Total direct | (44 | ) | (52 | ) | (50 | ) | (69 | ) | (60 | ) | (84 | ) | ||||||
| Indirect one-way | (4 | ) | 10 | (7 | ) | (7 | ) | (8 | ) | (11 | ) | |||||||
| Indirect two-way | (1 | ) | (19 | ) | (4 | ) | (1 | ) | (4 | ) | 12 | |||||||
| Total indirect | (5 | ) | (9 | ) | (11 | ) | (8 | ) | (12 | ) | 1 | |||||||
| Total net change | (49 | ) | (61 | ) | (61 | ) | (77 | ) | (72 | ) | (83 | ) | ||||||
| Ending units in service | ||||||||||||||||||
| Direct one-way | 1,556 | 1,597 | 1,645 | 1,692 | 1,749 | 1,804 | ||||||||||||
| Direct two-way | 99 | 102 | 106 | 109 | 121 | 126 | ||||||||||||
| Total direct | 1,655 | 1,699 | 1,751 | 1,801 | 1,870 | 1,930 | ||||||||||||
| Indirect one-way | 74 | 78 | 68 | 75 | 82 | 90 | ||||||||||||
| Indirect two-way | 50 | 51 | 70 | 74 | 75 | 79 | ||||||||||||
| Total indirect | 124 | 129 | 138 | 149 | 157 | 169 | ||||||||||||
| Total ending units in service | 1,779 | 1,828 | 1,889 | 1,950 | 2,027 | 2,099 | ||||||||||||
| (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 | ||||||||||||||||||||||||
| 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||||||
|
ARPU |
||||||||||||||||||||||||
| Direct one-way | $ | 8.10 | $ | 8.05 | $ | 8.05 | $ | 8.07 | $ | 8.05 | $ | 8.16 | ||||||||||||
| Direct two-way | 22.05 | 22.23 | 22.57 | 23.11 | 23.55 | 23.61 | ||||||||||||||||||
| Total direct | 8.92 | 8.89 | 8.92 | 9.01 | 9.06 | 9.17 | ||||||||||||||||||
| Indirect one-way | 7.57 | 8.44 | 9.13 | 9.60 | 8.87 | 8.78 | ||||||||||||||||||
| Indirect two-way | 4.77 | 4.31 | 3.98 | 4.09 | 4.25 | 4.84 | ||||||||||||||||||
| Total indirect | 6.40 | 6.49 | 6.48 | 6.86 | 6.65 | 7.04 | ||||||||||||||||||
| Total one-way | 8.08 | 8.07 | 8.09 | 8.14 | 8.09 | 8.19 | ||||||||||||||||||
| Total two-way | 16.04 | 15.41 | 14.96 | 15.54 | 16.06 | 16.76 | ||||||||||||||||||
| Total paging ARPU | $ | 8.74 | $ | 8.72 | $ | 8.74 | $ | 8.85 | $ | 8.87 | $ | 9.00 | ||||||||||||
|
|
||||||||||||||||||||||||
|
Gross disconnect rate (b) |
||||||||||||||||||||||||
| Direct one-way | -6.0 | % | -5.7 | % | -5.5 | % | -6.6 | % | -6.5 | % | -6.9 | % | ||||||||||||
| Direct two-way | -9.3 | % | -7.5 | % | -8.5 | % | -13.0 | % | -8.5 | % | -9.1 | % | ||||||||||||
| Total direct | -6.2 | % | -5.8 | % | -5.7 | % | -7.0 | % | -6.6 | % | -7.1 | % | ||||||||||||
| Indirect one-way | -8.1 | % | 11.9 | % | -12.1 | % | -12.5 | % | -12.8 | % | -13.7 | % | ||||||||||||
| Indirect two-way | -4.5 | % | -26.4 | % | -5.8 | % | -2.6 | % | -6.8 | % | -4.9 | % | ||||||||||||
| Total indirect | -6.6 | % | -8.1 | % | -8.9 | % | -7.7 | % | -9.9 | % | -10.1 | % | ||||||||||||
| Total one-way | -6.1 | % | -5.0 | % | -5.7 | % | -6.8 | % | -6.8 | % | -7.3 | % | ||||||||||||
| Total two-way | -7.6 | % | -15.2 | % | -7.4 | % | -9.0 | % | -7.9 | % | -7.7 | % | ||||||||||||
| Total paging gross disconnect rate | -6.2 | % | -6.0 | % | -5.9 | % | -7.0 | % | -6.9 | % | -7.3 | % | ||||||||||||
|
Net gain / loss rate (c) |
||||||||||||||||||||||||
| Direct one-way | -2.5 | % | -2.9 | % | -2.7 | % | -3.2 | % | -3.1 | % | -4.1 | % | ||||||||||||
| Direct two-way | -3.1 | % | -3.6 | % | -4.6 | % | -9.5 | % | -4.2 | % | -5.0 | % | ||||||||||||
| Total direct | -2.6 | % | -3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | ||||||||||||
| Indirect one-way | -5.3 | % | 14.6 | % | -9.8 | % | -9.2 | % | -9.8 | % | -10.5 | % | ||||||||||||
| Indirect two-way | -3.0 | % | -25.8 | % | -4.6 | % | -0.9 | % | -4.7 | % | 17.1 | % | ||||||||||||
| Total indirect | -4.3 | % | -6.6 | % | -7.2 | % | -5.1 | % | -7.4 | % | 0.7 | % | ||||||||||||
| Total one-way | -2.6 | % | -2.2 | % | -3.0 | % | -3.5 | % | -3.4 | % | -4.4 | % | ||||||||||||
| Total two-way | -3.1 | % | -12.7 | % | -4.6 | % | -6.1 | % | -4.4 | % | 2.5 | % | ||||||||||||
| Total paging net (loss) gain rate | -2.7 | % | -3.2 | % | -3.2 | % | -3.8 | % | -3.5 | % | -3.8 | % | ||||||||||||
| (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 gain / 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 | ||||||||||||||||||
| 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||
| Gross placement rate (b) | ||||||||||||||||||
| Healthcare | 4.5 | % | 3.3 | % | 3.4 | % | 3.9 | % | 4.4 | % | 3.5 | % | ||||||
| Government | 2.1 | % | 1.9 | % | 1.5 | % | 3.1 | % | 1.9 | % | 1.8 | % | ||||||
| Large enterprise | 2.1 | % | 2.3 | % | 2.2 | % | 1.9 | % | 2.6 | % | 2.1 | % | ||||||
| Other | 2.0 | % | 2.5 | % | 2.3 | % | 2.5 | % | 2.0 | % | 2.4 | % | ||||||
| Total direct | 3.6 | % | 2.9 | % | 2.8 | % | 3.4 | % | 3.5 | % | 2.9 | % | ||||||
| Total indirect | 2.3 | % | 1.6 | % | 1.7 | % | 2.6 | % | 2.5 | % | 10.9 | % | ||||||
| Total | 3.5 | % | 2.8 | % | 2.7 | % | 3.3 | % | 3.4 | % | 3.5 | % | ||||||
| Gross disconnect rate (b) | ||||||||||||||||||
| Healthcare | -5.0 | % | -4.7 | % | -4.4 | % | -5.7 | % | -5.2 | % | -4.9 | % | ||||||
| Government | -8.7 | % | -7.6 | % | -7.3 | % | -8.3 | % | -8.3 | % | -9.1 | % | ||||||
| Large enterprise | -7.1 | % | -6.2 | % | -7.0 | % | -9.7 | % | -8.3 | % | -10.3 | % | ||||||
| Other | -9.0 | % | -9.2 | % | -8.6 | % | -9.3 | % | -9.6 | % | -11.0 | % | ||||||
| Total direct | -6.2 | % | -5.8 | % | -5.7 | % | -7.0 | % | -6.6 | % | -7.1 | % | ||||||
| Total indirect | -6.6 | % | -8.1 | % | -8.9 | % | -7.7 | % | -9.9 | % | -10.1 | % | ||||||
| Total | -6.2 | % | -6.0 | % | -5.9 | % | -7.0 | % | -6.9 | % | -7.3 | % | ||||||
| Net loss rate (b) | ||||||||||||||||||
| Healthcare | -0.5 | % | -1.4 | % | -1.1 | % | -1.8 | % | -0.8 | % | -1.4 | % | ||||||
| Government | -6.6 | % | -5.7 | % | -5.9 | % | -5.2 | % | -6.4 | % | -7.4 | % | ||||||
| Large enterprise | -5.0 | % | -3.9 | % | -4.8 | % | -7.8 | % | -5.7 | % | -8.1 | % | ||||||
| Other | -6.9 | % | -6.8 | % | -6.3 | % | -6.8 | % | -7.6 | % | -8.6 | % | ||||||
| Total direct | -2.6 | % | -3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | ||||||
| Total indirect | -4.3 | % | -6.6 | % | -7.2 | % | -5.1 | % | -7.4 | % | 0.7 | % | ||||||
| Total | -2.7 | % | -3.2 | % | -3.2 | % | -3.8 | % | -3.5 | % | -3.8 | % | ||||||
| End of period units in service % of total (b) | ||||||||||||||||||
| Healthcare | 60.9 | % | 59.5 | % | 58.3 | % | 57.1 | % | 56.1 | % | 54.5 | % | ||||||
| Government | 12.6 | % | 13.1 | % | 13.5 | % | 13.9 | % | 14.1 | % | 14.4 | % | ||||||
| Large enterprise | 9.8 | % | 10.0 | % | 10.1 | % | 10.2 | % | 10.7 | % | 10.9 | % | ||||||
| Other | 9.7 | % | 10.3 | % | 10.8 | % | 11.2 | % | 11.4 | % | 12.1 | % | ||||||
| Total direct | 93.0 | % | 92.9 | % | 92.7 | % | 92.4 | % | 92.3 | % | 91.9 | % | ||||||
| Total indirect | 7.0 | % | 7.1 | % | 7.3 | % | 7.6 | % | 7.7 | % | 8.1 | % | ||||||
| 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) gain rates. | ||||||||||||||||||
| USA MOBILITY, INC. (WIRELESS) | ||||||||||||||||||||||||
| SUPPLEMENTAL INFORMATION - DIRECT UNITS IN SERVICE AND CELLULAR ACTIVATIONS (a) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||
| 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | |||||||||||||||||||
| Account size ending units in service (000's) | ||||||||||||||||||||||||
| 1 to 3 units | 74 | 79 | 84 | 88 | 95 | 101 | ||||||||||||||||||
| 4 to 10 units | 45 | 48 | 52 | 54 | 58 | 62 | ||||||||||||||||||
| 11 to 50 units | 106 | 114 | 123 | 130 | 140 | 149 | ||||||||||||||||||
| 51 to 100 units | 68 | 72 | 76 | 79 | 86 | 92 | ||||||||||||||||||
| 101 to 1,000 units | 411 | 424 | 436 | 456 | 483 | 499 | ||||||||||||||||||
| >1,000 units | 951 | 962 | 980 | 994 | 1,008 | 1,027 | ||||||||||||||||||
| Total | 1,655 | 1,699 | 1,751 | 1,801 | 1,870 | 1,930 | ||||||||||||||||||
| End of period units in service % of total direct | ||||||||||||||||||||||||
| 1 to 3 units | 4.4 | % | 4.7 | % | 4.8 | % | 4.9 | % | 5.1 | % | 5.2 | % | ||||||||||||
| 4 to 10 units | 2.7 | % | 2.8 | % | 2.9 | % | 3.0 | % | 3.1 | % | 3.2 | % | ||||||||||||
| 11 to 50 units | 6.4 | % | 6.7 | % | 7.0 | % | 7.2 | % | 7.5 | % | 7.7 | % | ||||||||||||
| 51 to 100 units | 4.1 | % | 4.2 | % | 4.4 | % | 4.4 | % | 4.6 | % | 4.8 | % | ||||||||||||
| 101 to 1,000 units | 24.8 | % | 25.0 | % | 24.9 | % | 25.3 | % | 25.8 | % | 25.9 | % | ||||||||||||
| >1,000 units | 57.6 | % | 56.6 | % | 56.0 | % | 55.2 | % | 53.9 | % | 53.2 | % | ||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
| Account size net loss rate | ||||||||||||||||||||||||
| 1 to 3 units | -6.3 | % | -6.2 | % | -4.8 | % | -7.0 | % | -5.8 | % | -7.6 | % | ||||||||||||
| 4 to 10 units | -6.8 | % | -6.2 | % | -5.0 | % | -7.5 | % | -6.0 | % | -5.3 | % | ||||||||||||
| 11 to 50 units | -6.5 | % | -7.7 | % | -5.1 | % | -7.3 | % | -6.1 | % | -5.8 | % | ||||||||||||
| 51 to 100 units | -5.4 | % | -5.7 | % | -4.2 | % | -7.9 | % | -6.5 | % | -4.4 | % | ||||||||||||
| 101 to 1,000 units | -3.3 | % | -2.7 | % | -4.2 | % | -5.6 | % | -3.3 | % | -3.7 | % | ||||||||||||
| >1,000 units | -1.0 | % | -1.8 | % | -1.5 | % | -1.3 | % | -1.9 | % | -3.7 | % | ||||||||||||
| Total | -2.6 | % | -3.0 | % | -2.8 | % | -3.6 | % | -3.1 | % | -4.2 | % | ||||||||||||
| Account size ARPU | ||||||||||||||||||||||||
| 1 to 3 units | $ | 15.74 | $ | 15.57 | $ | 15.57 | $ | 15.48 | $ | 15.37 | $ | 15.28 | ||||||||||||
| 4 to 10 units | 14.65 | 14.53 | 14.56 | 14.51 | 14.35 | 14.37 | ||||||||||||||||||
| 11 to 50 units | 12.38 | 12.19 | 12.26 | 12.18 | 12.01 | 11.86 | ||||||||||||||||||
| 51 to 100 units | 10.68 | 10.59 | 10.72 | 10.69 | 10.76 | 10.67 | ||||||||||||||||||
| 101 to 1,000 units | 9.10 | 9.00 | 9.00 | 8.82 | 8.93 | 9.00 | ||||||||||||||||||
| >1,000 units | 7.49 | 7.47 | 7.43 | 7.64 | 7.63 | 7.80 | ||||||||||||||||||
| Total | $ | 8.92 | $ | 8.89 | $ | 8.92 | $ | 9.01 | $ | 9.06 | $ | 9.17 | ||||||||||||
| Cellular revenue | ||||||||||||||||||||||||
| Number of activations | 4,370 | 2,191 | 1,990 | 1,885 | 1,885 | 2,354 | ||||||||||||||||||
| Revenue from cellular services (000's) | $ | 1,199 | $ | 684 | $ | 499 | $ | 532 | $ | 624 | $ | 708 | ||||||||||||
| (a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||
| USA MOBILITY, INC. (WIRELESS) | |||||||||||||||||||
| CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a) | |||||||||||||||||||
| (Unaudited and in thousands) | |||||||||||||||||||
| For the three months ended | |||||||||||||||||||
| 6/30/11 | 3/31/11 | 12/31/10 | 9/30/10 | 6/30/10 | 3/31/10 | ||||||||||||||
| Cost of products sold | $ | 1,171 | $ | 663 | $ | 1,051 | $ | 819 | $ | 1,134 | $ | 1,209 | |||||||
| Service, rental and maintenance | |||||||||||||||||||
| Site rent | 5,962 | 6,881 | 7,629 | 8,042 | 8,283 | 9,079 | |||||||||||||
| Telecommunications | 2,868 | 3,099 | 3,066 | 3,341 | 3,467 | 3,831 | |||||||||||||
| Payroll and related | 4,124 | 4,293 | 4,319 | 4,199 | 4,444 | 4,586 | |||||||||||||
| Stock based compensation | 6 | 5 | 6 | 5 | 7 | 6 | |||||||||||||
| Other | 1,251 | 1,538 | 1,201 | 1,234 | 974 | 1,439 | |||||||||||||
| Total service, rental and maintenance | 14,211 | 15,816 | 16,221 | 16,821 | 17,175 | 18,941 | |||||||||||||
| Selling and marketing | |||||||||||||||||||
| Payroll and related | 2,293 | 2,494 | 2,627 | 2,659 | 2,814 | 2,964 | |||||||||||||
| Commissions | 1,285 | 1,002 | 1,007 | 1,163 | 1,367 | 1,164 | |||||||||||||
| Stock based compensation | 16 | 17 | 17 | 17 | 22 | 17 | |||||||||||||
| Other | 352 | 320 | 264 | 221 | 191 | 412 | |||||||||||||
| Total selling and marketing | 3,946 | 3,833 | 3,915 | 4,060 | 4,394 | 4,557 | |||||||||||||
| General and administrative | |||||||||||||||||||
| Payroll and related | 5,397 | 5,677 | 6,118 | 5,719 | 6,621 | 6,912 | |||||||||||||
| Stock based compensation | 215 | 203 | 223 | 15 | 242 | 240 | |||||||||||||
| Bad debt | (150 | ) | 393 | 547 | 571 | 594 | 713 | ||||||||||||
| Facility rent | 723 | 726 | 856 | 992 | 1,326 | 1,354 | |||||||||||||
| Telecommunications | 394 | 443 | 480 | 518 | 603 | 657 | |||||||||||||
| Outside services | 2,427 | 5,186 | 2,385 | 2,463 | 3,185 | 3,267 | |||||||||||||
| Taxes, licenses and permits | 2,190 | 1,332 | 1,097 | 1,276 | 1,836 | 1,591 | |||||||||||||
| Other | 1,155 | 1,280 | 3,123 | 1,353 | 1,517 | 1,078 | |||||||||||||
| Total general and administrative | 12,351 | 15,240 | 14,829 | 12,907 | 15,924 | 15,812 | |||||||||||||
| Severance and restructuring | 17 | 33 | 1,738 | 86 | 41 | 314 | |||||||||||||
| Depreciation, amortization and accretion | 3,618 | 4,032 | 4,226 | 5,899 | 6,698 | 7,304 | |||||||||||||
| Operating expenses | $ | 35,314 | $ | 39,617 | $ | 41,980 | $ | 40,592 | $ | 45,366 | $ | 48,137 | |||||||
| Capital expenditures | $ | 1,721 | $ | 1,494 | $ | 4,720 | $ | 1,730 | $ | 563 | $ | 1,725 | |||||||
| (a) Slight variations in totals are due to rounding. | |||||||||||||||||||