SPRINGFIELD, Va.--(BUSINESS WIRE)--Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in critical communications, today announced operating results for the third quarter ended September 30, 2015. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, plus a special dividend of $0.125 cents per share, both payable on December 10, 2015 to stockholders of record on November 18, 2015.
Consolidated revenue for the third quarter was $46.2 million, compared to $49.8 million in the third quarter of 2014. Software revenue totaled $16.8 million versus $16.9 million in the year-earlier quarter, while wireless revenue was $29.4 million versus $32.9 million in the third quarter of 2014.
Third quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $10.1 million, or 21.8 percent of revenue, compared to $12.3 million, or 24.7 percent of revenue, in the year-earlier quarter, and $9.1 million, or 18.9 percent of revenue, in the second quarter of 2015.
Net income for the third quarter was $4.2 million, or $0.20 per fully diluted share, compared to $4.7 million, or $0.21 per fully diluted share, in the third quarter of 2014.
Other key results and highlights for the third quarter included:
- Of the $16.8 million in software revenue for the third quarter, $7.9 million was operations revenue and $8.9 million was maintenance revenue, compared to $9.1 million and $7.8 million, respectively, of the $16.9 million in software revenue for the third quarter of 2014.
- Software bookings totaled $16.7 million, compared to $20.4 million in the year-earlier quarter. Third quarter bookings included $9.3 million of operations bookings and $7.4 million of maintenance renewals.
- Software backlog was $41.6 million at September 30, 2015 versus $42.1 million a year earlier.
- The renewal rate for software maintenance in the third quarter was 99.8 percent.
- The quarterly rate of paging unit erosion improved to 1.5 percent from 1.9 percent in the year-earlier quarter, while the annual rate of unit erosion improved to 6.4 percent from 9.5 percent. Both the quarterly and annual rates of unit erosion were the Company’s lowest in more than a decade. Net paging unit losses for the quarter were 18,000 versus 25,000 in the third quarter of 2014. Paging units in service at September 30, 2015 totaled 1,192,000, compared to 1,274,000 a year earlier.
- The quarterly rate of wireless revenue erosion was 2.8 percent versus 2.0 percent in the year-earlier quarter, while the annual rate of wireless revenue erosion improved to 10.6 percent versus 11.4 percent in the third quarter of 2014.
- Total paging ARPU (average revenue per unit) was $7.82, compared to $7.97 in the year-earlier quarter and $7.86 in the second quarter of 2015.
- Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $36.1 million in the third quarter, compared to $37.5 million in the year-earlier quarter.
- Capital expenses were $1.4 million, compared to a similar total for the third quarter of 2014.
- Capital returned to stockholders in the form of dividends and share repurchases in the third quarter totaled $2.7 million and $8.3 million, respectively.
- The Company’s cash balance at September 30, 2015 was $113.4 million.
- The number of full-time equivalent employees at September 30, 2015 totaled 605, compared to 608 at June 30, 2015.
Vincent D. Kelly, president and chief executive officer, said: “We continued to make solid progress in the third quarter. Software revenue, while flat versus the year-earlier quarter, increased 7.7 percent for the first nine months of 2015 from the same period of 2014 and 20.3 percent from the first nine months of 2013. Our software backlog and pipeline also remained strong at September 30. Wireless trends continued to improve during the quarter as the rates of paging unit churn and revenue erosion either achieved or approached record levels. In addition, we met or exceeded our expectations on most other key operating metrics for the quarter, including cash flow, expenses, operating margins, and average revenue per unit (ARPU). Overall, we continued to operate profitably, enhance our product offerings, and generate sufficient cash flow to again return capital to stockholders in the form of cash dividends and share repurchases.”
Commenting on software results, Kelly said: “Software bookings came in lower than expected due in part to softer sales in the Asia-Pacific region, which has been experiencing weaker economic conditions and headwinds. The shortfall included the withdrawal of bids on several key sales opportunities and delayed commitments on a few sizable contracts, both in Asia-Pacific and EMEA. The EMEA market has taken a bit longer to evolve. We haven’t lost business to competitors, but the market is opening up slower than we had hoped. Still, domestic healthcare bookings rose 12 percent from the year-earlier quarter, while new customer bookings more than doubled from the third quarter of 2014. In short, we continued to see continuing demand from Spok’s worldwide customer base for upgrades to existing applications as well as for new communications products and solutions. Additionally,” Kelly noted, “maintenance revenue increased to $8.9 million for the quarter from $7.8 million in the year-earlier quarter, reflecting our continued success in achieving maintenance renewals rates in excess of 99 percent.”
Kelly said third quarter bookings of $16.7 million included $9.3 million of operations bookings and $7.4 million in maintenance renewals, while the software backlog at September 30 remained strong at $41.6 million. “Customer demand, especially within our healthcare customer base, remained strongest for secure messaging, call center solutions, applications to increase patient safety, and improved clinical workflows.” Kelly added: “We also experienced steady demand for such software solutions as critical smartphone communications, emergency management, and delivery of critical test results. Overall, we added more than 30 new customers during the quarter.”
The Company again recorded solid results for its wireless products and services for the quarter. “Gross pager placements totaled 36,000 versus 40,000 in the prior quarter, while gross disconnects of 55,000 improved from 59,000 in the prior quarter,” Kelly said. “As a result, the rates of quarterly and annual net pager losses for the third quarter improved to 1.5 percent and 6.4 percent, respectively, and achieved the best levels in many years. In addition, the annual rate of wireless revenue erosion improved from the year-earlier quarter. Wireless sales continued to focus primarily on our core market segments of Healthcare, Government and Large Enterprise. Healthcare continued to be our best performing market segment with the highest rate of gross placements and lowest rate of unit disconnects, and comprised 79.2 percent of our direct units-in-service and 74.8 percent of direct paging revenue at September 30.”
Kelly added that the Company again returned capital to stockholders during the third quarter, distributing cash dividends totaling $2.7 million and repurchasing 502,942 shares of common stock for $8.3 million, or an average price of $16.56 per share, under its stock buy-back program.
Commenting on Spok’s financial results, Shawn E. Endsley, chief financial officer, said: “Solid consolidated revenue combined with effective expense management contributed to higher cash flow and operating margins for the quarter as we continued to position the Company for long-term growth. EBITDA margin improved to 21.8 percent in the third quarter from 18.9 percent in the second quarter, a result of the margin improvement plan we initiated in January. In addition, our balance sheet remained strong at September 30 with no debt and a cash balance of $113.4 million.”
Endsley said the Company is maintaining previously provided financial guidance for 2015, which projects total revenue to range from $183 million to $201 million, operating expenses (excluding depreciation, amortization and accretion) to range from $145 million to $154 million, and capital expenses to range from $5.5 million to $7.5 million.
The Company announced that its Board of Directors has approved extension of the Company’s stock repurchase program from December 31, 2015 to December 31, 2016. In extending the plan, the Board also reset the repurchase authority in the amount of $10 million to begin at the earlier of January 4, 2016 or the completion of the existing 2015 stock repurchase plan. Since the program began in 2008, Spok has repurchased approximately 7.2 million shares of its common stock at an average price of $10.48 per share while maintaining appropriate cash balances and a strong balance sheet.
Spok plans to host a conference call for investors on its third quarter operating results at 10:00 a.m. Eastern Time on Thursday, October 29, 2015. Dial-in numbers for the call are 212-444-0896 or 877-280-2342. The pass code for the call is 4793188. A replay of the call will be available from 1:00 p.m. ET on October 29 until 1:00 p.m. on Thursday, November 12. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 4793188.
Also, Spok will host its annual “Analyst Day” Investor Meeting for financial analysts on November 3, 2015 in New York City. For further details and to RSVP, please contact Stacy Sloan at stacy.sloan@spok.com (or call 703-269-6950), send an email to investor.relations@spok.com, or sign-up directly at surveymonkey.com/r/M69M6R7.
About Spok
Spok Holdings, Inc., headquartered in Springfield, Va., is proud to be a leader in critical communications for healthcare, government, public safety, and other industries. We deliver smart, reliable solutions to help protect the health, well-being, and safety of people around the globe. Organizations worldwide rely on Spok for workflow improvement, secure texting, paging services, contact center optimization, and public safety response. When communications matter, Spok delivers. Visit us at spok.com or find us on Twitter @Spoktweets.
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 Spok’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 Spok’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 demand for our software products and services, our ability to develop additional software solutions for our customers and manage our development as a global organization, the ability to manage 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 our periodic reports and other filings with the Securities and Exchange Commission. Although Spok 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. Spok disclaims any intent or obligation to update any forward-looking statements.
Tables to Follow
| SPŌK HOLDINGS, INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a) | ||||||||||||||||
| (Unaudited and in thousands except share, per share amounts and ARPU) | ||||||||||||||||
| For the three months ended | For the nine months ended | |||||||||||||||
|
9/30/2015 |
9/30/2014 |
9/30/2015 |
9/30/2014 |
|||||||||||||
| Revenue: | ||||||||||||||||
| Wireless | $ | 29,375 | $ | 32,855 | $ | 90,287 | $ | 100,724 | ||||||||
| Software | 16,806 | 16,936 | 52,002 | 48,280 | ||||||||||||
| Total revenue | 46,181 | 49,791 | 142,289 | 149,004 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of revenue | 7,871 | 8,000 | 25,816 | 21,985 | ||||||||||||
| Service, rental and maintenance | 11,117 | 10,988 | 33,376 | 34,200 | ||||||||||||
| Selling and marketing | 6,572 | 7,072 | 20,409 | 22,098 | ||||||||||||
| General and administrative | 10,410 | 10,866 | 31,883 | 33,991 | ||||||||||||
| Severance and restructuring | 141 | 545 | 1,645 | 569 | ||||||||||||
| Depreciation, amortization and accretion | 3,413 | 4,247 | 10,608 | 12,628 | ||||||||||||
| Total operating expenses | 39,524 | 41,718 | 123,737 | 125,471 | ||||||||||||
| % of total revenue | 85.6 | % | 83.8 | % | 87.0 | % | 84.2 | % | ||||||||
| Operating income | 6,657 | 8,073 | 18,552 | 23,533 | ||||||||||||
| % of total revenue | 14.4 | % | 16.2 | % | 13.0 | % | 15.8 | % | ||||||||
| Interest income (expense), net | 1 | (63 | ) | 3 | (194 | ) | ||||||||||
| Other income (expense), net | 784 | (2 | ) | 1,110 | (180 | ) | ||||||||||
| Income before income tax expense | 7,442 | 8,008 | 19,665 | 23,159 | ||||||||||||
| Income tax expense | (3,222 | ) | (3,356 | ) | (8,150 | ) | (9,326 | ) | ||||||||
| Net income | $ | 4,220 | $ | 4,652 | $ | 11,515 | $ | 13,833 | ||||||||
| Basic net income per common share | $ | 0.20 | $ | 0.21 | $ | 0.53 | $ | 0.64 | ||||||||
| Diluted net income per common share | $ | 0.20 | $ | 0.21 | $ | 0.53 | $ | 0.63 | ||||||||
| Basic weighted average common shares outstanding | 21,301,311 | 21,651,347 | 21,623,612 | 21,643,951 | ||||||||||||
| Diluted weighted average common shares outstanding | 21,352,838 | 22,135,554 | 21,687,526 | 22,089,892 | ||||||||||||
| Reconciliation of operating income to EBITDA (b): | ||||||||||||||||
| Operating income | $ | 6,657 | $ | 8,073 | $ | 18,552 | $ | 23,533 | ||||||||
| Add back: depreciation, amortization and accretion | 3,413 | 4,247 | 10,608 | 12,628 | ||||||||||||
| EBITDA | $ | 10,070 | $ | 12,320 | $ | 29,160 | $ | 36,161 | ||||||||
| % of total revenue | 21.8 | % | 24.7 | % | 20.5 | % | 24.3 | % | ||||||||
| Key statistics: | ||||||||||||||||
| Units in service | 1,192 | 1,274 | 1,192 | 1,274 | ||||||||||||
| Average revenue per unit (ARPU) | $ | 7.82 | $ | 7.97 | $ | 7.85 | $ | 7.98 | ||||||||
| Bookings | $ | 16,746 | $ | 20,362 | $ | 55,513 | $ | 56,242 | ||||||||
| Backlog | $ | 41,639 | $ | 42,117 | $ | 41,639 | $ | 42,117 | ||||||||
| (a) Slight variations in totals are due to rounding. | ||||||||||||||||
| (b) EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is | ||||||||||||||||
| presented for analytical purposes only. | ||||||||||||||||
| SPOK HOLDINGS, INC. | ||||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a) | ||||||||||||||||||||||||||||||||
| (Unaudited and in thousands except share, per share amounts and ARPU) | ||||||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||||||
| 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | 12/31/2013 | |||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||
| Wireless | $ | 29,375 | $ | 30,222 | $ | 30,690 | $ | 31,678 | $ | 32,855 | $ | 33,518 | $ | 34,351 | $ | 35,831 | ||||||||||||||||
| Software | 16,806 | 17,747 | 17,448 | 19,591 | 16,936 | 15,576 | 15,768 | 18,854 | ||||||||||||||||||||||||
| Total revenue | 46,181 | 47,969 | 48,138 | 51,269 | 49,791 | 49,094 | 50,119 | 54,685 | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Cost of revenue | 7,871 | 9,131 | 8,813 | 10,571 | 8,000 | 7,180 | 6,805 | 7,500 | ||||||||||||||||||||||||
| Service, rental and maintenance | 11,117 | 11,003 | 11,256 | 11,285 | 10,988 | 11,420 | 11,792 | 11,442 | ||||||||||||||||||||||||
| Selling and marketing | 6,572 | 6,790 | 7,048 | 7,915 | 7,072 | 7,780 | 7,246 | 7,297 | ||||||||||||||||||||||||
| General and administrative | 10,410 | 10,472 | 11,001 | 11,905 | 10,866 | 10,990 | 12,135 | 11,470 | ||||||||||||||||||||||||
| Severance and restructuring | 141 | 1,504 | — | 926 | 545 | 4 | 20 | 981 | ||||||||||||||||||||||||
| Depreciation, amortization and accretion | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | 4,029 | 3,680 | ||||||||||||||||||||||||
| Total operating expenses | 39,524 | 42,348 | 41,865 | 46,651 | 41,718 | 41,726 | 42,027 | 42,370 | ||||||||||||||||||||||||
| % of total revenue | 85.6 | % | 88.3 | % | 87.0 | % | 91.0 | % | 83.8 | % | 85.0 | % | 83.9 | % | 77.5 | % | ||||||||||||||||
| Operating income | 6,657 | 5,621 | 6,273 | 4,618 | 8,073 | 7,368 | 8,092 | 12,315 | ||||||||||||||||||||||||
| % of total revenue | 14.4 | % | 11.7 | % | 13.0 | % | 9.0 | % | 16.2 | % | 15.0 | % | 16.1 | % | 22.5 | % | ||||||||||||||||
| Interest income (expense), net | 1 | 3 | (1 | ) | (262 | ) | (63 | ) | (64 | ) | (67 | ) | (64 | ) | ||||||||||||||||||
| Other income (expense), net | 784 | 264 | 60 | (188 | ) | (2 | ) | (194 | ) | 16 | 15 | |||||||||||||||||||||
| Income before income tax expense | 7,442 | 5,888 | 6,332 | 4,168 | 8,008 | 7,110 | 8,041 | 12,266 | ||||||||||||||||||||||||
| Income tax expense | (3,222 | ) | (2,512 | ) | (2,415 | ) | 2,744 | (3,356 | ) | (2,819 | ) | (3,151 | ) | (4,251 | ) | |||||||||||||||||
| Net income | $ | 4,220 | $ | 3,376 | $ | 3,917 | $ | 6,912 | $ | 4,652 | $ | 4,291 | $ | 4,890 | $ | 8,015 | ||||||||||||||||
| Basic net income per common share | $ | 0.20 | $ | 0.16 | $ | 0.18 | $ | 0.32 | $ | 0.21 | $ | 0.20 | $ | 0.23 | $ | 0.37 | ||||||||||||||||
| Diluted net income per common share | $ | 0.20 | $ | 0.16 | $ | 0.18 | $ | 0.31 | $ | 0.21 | $ | 0.19 | $ | 0.22 | $ | 0.36 | ||||||||||||||||
| Basic weighted average common shares outstanding | 21,301,311 | 21,677,299 | 21,898,792 | 21,554,746 | 21,651,347 | 21,642,163 | 21,638,198 | 21,633,706 | ||||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 21,352,838 | 21,735,829 | 22,053,015 | 22,101,600 | 22,135,554 | 22,099,791 | 22,037,796 | 21,969,756 | ||||||||||||||||||||||||
| Reconciliation of operating income to EBITDA (b): | ||||||||||||||||||||||||||||||||
| Operating income | $ | 6,657 | $ | 5,621 | $ | 6,273 | $ | 4,618 | $ | 8,073 | $ | 7,368 | $ | 8,092 | $ | 12,315 | ||||||||||||||||
| Add back: depreciation, amortization and accretion | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | 4,029 | 3,680 | ||||||||||||||||||||||||
| EBITDA | $ | 10,070 | $ | 9,069 | $ | 10,020 | $ | 8,667 | $ | 12,320 | $ | 11,720 | $ | 12,121 | $ | 15,995 | ||||||||||||||||
| % of total revenue | 21.8 | % | 18.9 | % | 20.8 | % | 16.9 | % | 24.7 | % | 23.9 | % | 24.2 | % | 29.2 | % | ||||||||||||||||
| Key statistics: | ||||||||||||||||||||||||||||||||
| Units in service | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | 1,327 | 1,376 | ||||||||||||||||||||||||
| Average revenue per unit (ARPU) | $ | 7.82 | $ | 7.86 | $ | 7.91 | $ | 7.92 | $ | 7.97 | $ | 7.98 | $ | 8.11 | $ | 8.15 | ||||||||||||||||
| Bookings | $ | 16,746 | $ | 21,027 | $ | 17,740 | $ | 22,272 | $ | 20,362 | $ | 18,959 | $ | 16,921 | $ | 16,271 | ||||||||||||||||
| Backlog | $ | 41,639 | $ | 43,524 | $ | 40,551 | $ | 42,391 | $ | 42,117 | $ | 40,182 | $ | 41,396 | $ | 40,211 | ||||||||||||||||
| (a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||
| (b) EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only | ||||||||||||||||||||||||||||||||
| SPOK HOLDINGS, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (a) | ||||||
| (In thousands) | ||||||
|
9/30/2015 |
12/31/2014 |
|||||
| (Unaudited) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 113,383 | $ | 107,869 | ||
| Accounts receivable, net | 22,034 | 24,969 | ||||
| Prepaid expenses and other | 5,497 | 7,250 | ||||
| Inventory | 1,896 | 2,673 | ||||
| Deferred income tax assets, net | 1,509 | 2,194 | ||||
| Total current assets | 144,319 | 144,955 | ||||
| Property and equipment, net | 15,377 | 17,395 | ||||
| Goodwill | 133,031 | 133,031 | ||||
| Other intangible assets, net | 16,083 | 19,698 | ||||
| Deferred income tax assets, net | 15,563 | 21,949 | ||||
| Other assets | 1,554 | 862 | ||||
| Total assets | $ | 325,927 | $ | 337,890 | ||
| Liabilities and stockholders' equity | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued liabilities | $ | 9,340 | $ | 11,688 | ||
| Accrued compensation and benefits | 10,785 | 14,041 | ||||
| Deferred revenue | 28,177 | 24,034 | ||||
| Total current liabilities | 48,302 | 49,763 | ||||
| Deferred revenue | 796 | 937 | ||||
| Other long-term liabilities | 8,692 | 8,131 | ||||
| Total liabilities | 57,790 | 58,831 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Preferred stock |
— |
— |
||||
| Common stock | 2 | 2 | ||||
| Additional paid-in capital | 113,313 | 126,678 | ||||
| Retained earnings | 154,822 | 152,379 | ||||
| Total stockholders' equity | 268,137 | 279,059 | ||||
| Total liabilities and stockholders' equity | $ | 325,927 | $ | 337,890 | ||
| (a) Slight variations in totals are due to rounding. | ||||||
| SPOK HOLDINGS, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a) | ||||||||
| (Unaudited and in thousands) | ||||||||
| For the nine months ended | ||||||||
|
9/30/2015 |
9/30/2014 |
|||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 11,515 | $ | 13,833 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation, amortization and accretion | 10,608 | 12,628 | ||||||
| Amortization of deferred financing costs | - | 194 | ||||||
| Deferred income tax expense | 6,989 | 7,726 | ||||||
| Amortization of stock based compensation | 1,497 | 2,816 | ||||||
| Provisions for doubtful accounts, service credits and other | 1,040 | 875 | ||||||
| Adjustments of non-cash transaction taxes | (530 | ) | (259 | ) | ||||
| Gain on disposals of property and equipment | (794 | ) | (2 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 1,896 | (4,615 | ) | |||||
| Prepaid expenses and other assets | 1,878 | (240 | ) | |||||
| Accounts payable, accrued liabilities and accrued compensation and benefits | (8,446 | ) | (1,968 | ) | ||||
| Customer deposits and deferred revenue | 4,002 | 1,264 | ||||||
| Other long-term liabilities | 45 | - | ||||||
| Net cash provided by operating activities | 29,700 | 32,252 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (4,450 | ) | (6,327 | ) | ||||
| Proceeds from disposals of property and equipment | 807 | 63 | ||||||
| Net cash used in investing activities | (3,643 | ) | (6,264 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Cash dividends to stockholders | (8,739 | ) | (8,123 | ) | ||||
| Purchase of common stock | (11,804 | ) | - | |||||
| Net cash used in financing activities | (20,543 | ) | (8,123 | ) | ||||
| Net increase in cash and cash equivalents | 5,514 | 17,865 | ||||||
| Cash and cash equivalents, beginning of period | 107,869 | 89,075 | ||||||
| Cash and cash equivalents, end of period | $ | 113,383 | $ | 106,940 | ||||
| Supplemental disclosure: | ||||||||
| Interest paid | $ | 2 | $ | 7 | ||||
| Income taxes paid | $ | 1,169 | $ | 1,327 | ||||
| (a) Slight variations in totals are due to rounding. | ||||||||
| SPOK HOLDINGS, INC. | ||||||||||||||||||||||||
| CONSOLIDATED REVENUE | ||||||||||||||||||||||||
| SUPPLEMENTAL INFORMATION (a) | ||||||||||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||
|
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 |
9/30/2014 |
6/30/2014 |
3/31/2014 |
12/31/2013 |
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| Revenue | ||||||||||||||||||||||||
| Paging | $ | 28,196 | $ | 28,782 | $ | 29,491 | $ | 30,071 | $ | 30,776 | $ | 31,458 | $ | 32,896 | $ | 34,015 | ||||||||
| Non-paging | 1,179 | 1,440 | 1,199 | 1,607 | 2,079 | 2,060 | 1,455 | 1,816 | ||||||||||||||||
| Total wireless revenue | 29,375 | 30,222 | 30,690 | 31,678 | 32,855 | 33,518 | 34,351 | 35,831 | ||||||||||||||||
| Subscription | 392 | 419 | 398 | 365 | 458 | 377 | 283 | 248 | ||||||||||||||||
| License | 1,457 | 3,011 | 2,595 | 3,474 | 2,374 | 2,497 | 2,929 | 4,138 | ||||||||||||||||
| Services | 4,600 | 4,609 | 5,018 | 5,579 | 4,305 | 3,558 | 3,930 | 5,493 | ||||||||||||||||
| Equipment | 1,434 | 1,301 | 1,374 | 2,145 | 1,930 | 1,614 | 1,250 | 1,875 | ||||||||||||||||
| Operations revenue | 7,883 | 9,340 | 9,385 | 11,563 | 9,067 | 8,046 | 8,392 | 11,754 | ||||||||||||||||
| Maintenance revenue | 8,923 | 8,407 | 8,063 | 8,028 | 7,869 | 7,530 | 7,376 | 7,100 | ||||||||||||||||
| Total software revenue | 16,806 | 17,747 | 17,448 | 19,591 | 16,936 | 15,576 | 15,768 | 18,854 | ||||||||||||||||
| Total revenue | $ | 46,181 | $ | 47,969 | $ | 48,138 | $ | 51,269 | $ | 49,791 | $ | 49,094 | $ | 50,119 | $ | 54,685 | ||||||||
|
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||||||
| SPOK HOLDINGS, INC. | ||||||||||||||||||||||||||
| CONSOLIDATED OPERATING EXPENSES | ||||||||||||||||||||||||||
| SUPPLEMENTAL INFORMATION (a) | ||||||||||||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||
|
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 |
9/30/2014 |
6/30/2014 |
3/31/2014 |
12/31/2013 |
|||||||||||||||||||
| Cost of revenue | ||||||||||||||||||||||||||
| Payroll and related | $ | 4,277 | $ | 4,274 | $ | 4,157 | $ | 4,222 | $ | 3,743 | $ | 3,827 | $ | 3,959 | $ | 3,609 | ||||||||||
| Cost of sales | 2,549 | 3,801 | 3,620 | 5,225 | 3,098 | 2,232 | 1,917 | 2,726 | ||||||||||||||||||
| Stock based compensation | 33 | 34 | 34 | 81 | 108 | 81 | 81 | 74 | ||||||||||||||||||
| Other | 1,012 | 1,022 | 1,002 | 1,043 | 1,051 | 1,040 | 848 | 1,091 | ||||||||||||||||||
| Total cost of revenue | 7,871 | 9,131 | 8,813 | 10,571 | 8,000 | 7,180 | 6,805 | 7,500 | ||||||||||||||||||
| Service, rental and maintenance | ||||||||||||||||||||||||||
| Site rent | 3,763 | 3,783 | 3,766 | 3,834 | 3,914 | 3,981 | 4,015 | 3,972 | ||||||||||||||||||
| Telecommunications | 1,392 | 1,288 | 1,343 | 1,487 | 1,548 | 1,669 | 1,736 | 1,751 | ||||||||||||||||||
| Payroll and related | 4,613 | 4,555 | 4,652 | 4,533 | 4,106 | 4,434 | 4,594 | 4,296 | ||||||||||||||||||
| Stock based compensation | 29 | 29 | 29 | 30 | 56 | (17 | ) | 39 | 32 | |||||||||||||||||
| Repairs and maintenance | 395 | 478 | 528 | 467 | 489 | 436 | 508 | 482 | ||||||||||||||||||
| Other | 925 | 870 | 938 | 934 | 875 | 917 | 900 | 909 | ||||||||||||||||||
| Total service, rental and maintenance | 11,117 | 11,003 | 11,256 | 11,285 | 10,988 | 11,420 | 11,792 | 11,442 | ||||||||||||||||||
| Selling and marketing | ||||||||||||||||||||||||||
| Payroll and related | 3,664 | 3,732 | 3,916 | 3,945 | 3,859 | 4,099 | 4,098 | 3,717 | ||||||||||||||||||
| Commissions | 1,858 | 1,792 | 1,836 | 2,481 | 1,949 | 2,087 | 1,952 | 2,162 | ||||||||||||||||||
| Stock based compensation | 16 | 51 | 51 | 131 | 151 | 131 | 131 | (24 | ) | |||||||||||||||||
| Other | 1,034 | 1,215 | 1,245 | 1,358 | 1,113 | 1,463 | 1,065 | 1,442 | ||||||||||||||||||
| Total selling and marketing | 6,572 | 6,790 | 7,048 | 7,915 | 7,072 | 7,780 | 7,246 | 7,297 | ||||||||||||||||||
| General and administrative | ||||||||||||||||||||||||||
| Payroll and related | 4,320 | 4,611 | 4,879 | 4,737 | 4,217 | 4,440 | 4,796 | 4,802 | ||||||||||||||||||
| Stock based compensation | 316 | 548 | 329 | 780 | 791 | 429 | 835 | 763 | ||||||||||||||||||
| Bad debt | 113 | 140 | 160 | 127 | 136 | 134 | 86 | 262 | ||||||||||||||||||
| Facility rent | 868 | 841 | 941 | 830 | 863 | 899 | 922 | 719 | ||||||||||||||||||
| Telecommunications | 370 | 374 | 333 | 381 | 427 | 399 | 395 | 420 | ||||||||||||||||||
| Outside services | 1,864 | 1,728 | 1,786 | 1,786 | 1,698 | 1,719 | 1,762 | 1,811 | ||||||||||||||||||
| Taxes, licenses and permits | 1,068 | 1,150 | 1,125 | 1,283 | 1,225 | 1,383 | 1,064 | 1,358 | ||||||||||||||||||
| Repairs & maintenance | 389 | 363 | 406 | 506 | 510 | 421 | 374 | 314 | ||||||||||||||||||
| Financial Services | 378 | 367 | 362 | 346 | 336 | 379 | 363 | 357 | ||||||||||||||||||
| Other | 724 | 350 | 680 | 1,129 | 663 | 787 | 1,538 | 664 | ||||||||||||||||||
| Total general and administrative | 10,410 | 10,472 | 11,001 | 11,905 | 10,866 | 10,990 | 12,135 | 11,470 | ||||||||||||||||||
| Severance and restructuring | 141 | 1,504 | — | 926 | 545 | 4 | 20 | 981 | ||||||||||||||||||
| Depreciation, amortization and accretion | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | 4,029 | 3,680 | ||||||||||||||||||
| Operating expenses | $ | 39,524 | $ | 42,348 | $ | 41,865 | $ | 46,651 | $ | 41,718 | $ | 41,726 | $ | 42,027 | $ | 42,370 | ||||||||||
| Capital expenditures | $ | 1,418 | $ | 1,992 | $ | 1,040 | $ | 1,352 | $ | 1,291 | $ | 2,393 | $ | 2,643 | $ | 2,636 | ||||||||||
|
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||||||||
| SPOK HOLDINGS, INC. | ||||||||||||||||||||||||
| UNITS IN SERVICE ACTIVITY (a) | ||||||||||||||||||||||||
| (Unaudited and in thousands) | ||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||
|
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 |
9/30/2014 |
6/30/2014 |
3/31/2014 |
12/31/2013 |
|||||||||||||||||
|
Paging units in service |
||||||||||||||||||||||||
| Beginning units in service | ||||||||||||||||||||||||
| Direct one-way | 1,103 | 1,116 | 1,140 | 1,157 | 1,179 | 1,200 | 1,246 | 1,275 | ||||||||||||||||
| Direct two-way | 64 | 64 | 64 | 63 | 64 | 69 | 69 | 70 | ||||||||||||||||
| Total direct | 1,167 | 1,180 | 1,204 | 1,220 | 1,243 | 1,269 | 1,315 | 1,345 | ||||||||||||||||
| Indirect one-way | 24 | 25 | 26 | 28 | 29 | 30 | 34 | 35 | ||||||||||||||||
| Indirect two-way | 20 | 25 | 26 | 26 | 27 | 28 | 27 | 28 | ||||||||||||||||
| Total indirect | 44 | 50 | 52 | 54 | 56 | 58 | 61 | 63 | ||||||||||||||||
| Total beginning units in service | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | 1,327 | 1,376 | 1,408 | ||||||||||||||||
| Gross placements | ||||||||||||||||||||||||
| Direct one-way | 32 | 36 | 25 | 31 | 40 | 48 | 34 | 32 | ||||||||||||||||
| Direct two-way | 3 | 4 | 3 | 3 | 4 | 2 | 4 | 3 | ||||||||||||||||
| Total direct | 35 | 40 | 28 | 34 | 44 | 50 | 38 | 35 | ||||||||||||||||
| Indirect one-way | 1 | — | 1 | 1 | 1 | 1 | — | 1 | ||||||||||||||||
| Indirect two-way | — | — | — | — | — | — | 1 | — | ||||||||||||||||
| Total indirect | 1 | — | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||
| Total gross placements | 36 | 40 | 29 | 35 | 45 | 51 | 39 | 36 | ||||||||||||||||
| Gross disconnects | ||||||||||||||||||||||||
| Direct one-way | (48 | ) | (50 | ) | (49 | ) | (47 | ) | (62 | ) | (69 | ) | (80 | ) | (61 | ) | ||||||||
| Direct two-way | (5 | ) | (3 | ) | (3 | ) | (3 | ) | (5 | ) | (7 | ) | (4 | ) | (4 | ) | ||||||||
| Total direct | (53 | ) | (53 | ) | (52 | ) | (50 | ) | (67 | ) | (76 | ) | (84 | ) | (65 | ) | ||||||||
| Indirect one-way | (1 | ) | (1 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (4 | ) | (2 | ) | ||||||||
| Indirect two-way | (1 | ) | (5 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | — | (1 | ) | |||||||||
| Total indirect | (2 | ) | (6 | ) | (3 | ) | (3 | ) | (3 | ) | (3 | ) | (4 | ) | (3 | ) | ||||||||
| Total gross disconnects | (55 | ) | (59 | ) | (55 | ) | (53 | ) | (70 | ) | (79 | ) | (88 | ) | (68 | ) | ||||||||
| Net loss | ||||||||||||||||||||||||
| Direct one-way | (16 | ) | (13 | ) | (24 | ) | (16 | ) | (22 | ) | (21 | ) | (46 | ) | (29 | ) | ||||||||
| Direct two-way | (2 | ) | — | — | — | (1 | ) | (5 | ) | — | (1 | ) | ||||||||||||
| Total direct | (18 | ) | (13 | ) | (24 | ) | (16 | ) | (23 | ) | (26 | ) | (46 | ) | (30 | ) | ||||||||
| Indirect one-way | — | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (4 | ) | (1 | ) | |||||||||
| Indirect two-way | (1 | ) | (5 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | 1 | (1 | ) | |||||||||
| Total indirect | (1 | ) | (6 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (3 | ) | (2 | ) | ||||||||
| Total net change | (19 | ) | (19 | ) | (26 | ) | (18 | ) | (25 | ) | (28 | ) | (49 | ) | (32 | ) | ||||||||
| Ending units in service | ||||||||||||||||||||||||
| Direct one-way | 1,087 | 1,103 | 1,116 | 1,141 | 1,157 | 1,179 | 1,200 | 1,246 | ||||||||||||||||
| Direct two-way | 62 | 64 | 64 | 63 | 63 | 64 | 69 | 69 | ||||||||||||||||
| Total direct | 1,149 | 1,167 | 1,180 | 1,204 | 1,220 | 1,243 | 1,269 | 1,315 | ||||||||||||||||
| Indirect one-way | 24 | 24 | 25 | 27 | 28 | 29 | 30 | 34 | ||||||||||||||||
| Indirect two-way | 19 | 20 | 25 | 25 | 26 | 27 | 28 | 27 | ||||||||||||||||
| Total indirect | 43 | 44 | 50 | 52 | 54 | 56 | 58 | 61 | ||||||||||||||||
| Total ending units in service | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | 1,327 | 1,376 | ||||||||||||||||
|
|
||||||||||||||||||||||||
|
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||||||
| SPOK HOLDINGS, INC. | ||||||||||||||||||||||||||||||||
| AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a) | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||||||
|
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 |
9/30/2014 |
6/30/2014 |
3/31/2014 |
12/31/2013 |
|||||||||||||||||||||||||
|
Paging ARPU |
||||||||||||||||||||||||||||||||
| Direct one-way | $ | 7.37 | $ | 7.41 | $ | 7.45 | $ | 7.45 | $ | 7.48 | $ | 7.48 | $ | 7.59 | $ | 7.60 | ||||||||||||||||
| Direct two-way | 16.84 | 17.16 | 17.69 | 17.95 | 18.17 | 18.21 | 18.91 | 19.43 | ||||||||||||||||||||||||
| Total direct | 7.88 | 7.93 | 7.99 | 8.00 | 8.05 | 8.06 | 8.19 | 8.23 | ||||||||||||||||||||||||
| Indirect one-way | 8.02 | 8.11 | 8.08 | 8.13 | 8.24 | 8.18 | 8.22 | 8.68 | ||||||||||||||||||||||||
| Indirect two-way | 4.07 | 4.09 | 3.93 | 4.06 | 4.31 | 4.45 | 4.32 | 3.97 | ||||||||||||||||||||||||
| Total indirect | 6.21 | 6.19 | 6.01 | 6.12 | 6.32 | 6.39 | 6.37 | 6.47 | ||||||||||||||||||||||||
| Total one-way | 7.39 | 7.42 | 7.46 | 7.46 | 7.50 | 7.50 | 7.60 | 7.63 | ||||||||||||||||||||||||
| Total two-way | 13.72 | 13.69 | 13.72 | 13.87 | 14.10 | 14.22 | 14.70 | 14.90 | ||||||||||||||||||||||||
| Total paging ARPU | $ | 7.82 | $ | 7.86 | $ | 7.91 | $ | 7.92 | $ | 7.97 | $ | 7.98 | $ | 8.11 | $ | 8.15 | ||||||||||||||||
|
Gross disconnect rate (b) |
||||||||||||||||||||||||||||||||
| Direct one-way | (4.4 | )% | (4.4 | )% | (4.3 | )% | (4.1 | )% | (5.5 | )% | (5.7 | )% | (6.4 | )% | (4.7 | )% | ||||||||||||||||
| Direct two-way | (7.0 | )% | (5.9 | )% | (5.4 | )% | (4.5 | )% | (7.3 | )% | (10.5 | )% | (5.6 | )% | (6.4 | )% | ||||||||||||||||
| Total direct | (4.5 | )% | (4.5 | )% | (4.4 | )% | (4.1 | )% | (5.4 | )% | (6.0 | )% | (6.4 | )% | (4.8 | )% | ||||||||||||||||
| Indirect one-way | (4.7 | )% | (6.4 | )% | (6.7 | )% | (6.5 | )% | (6.4 | )% | (6.8 | )% | (8.2 | )% | (6.1 | )% | ||||||||||||||||
| Indirect two-way | (2.2 | )% | (20.0 | )% | (4.4 | )% | (2.3 | )% | (1.9 | )% | (2.7 | )% | (2.3 | )% | (5.7 | )% | ||||||||||||||||
| Total indirect | (3.6 | )% | (13.2 | )% | (5.5 | )% | (4.4 | )% | (4.2 | )% | (4.8 | )% | (5.5 | )% | (5.9 | )% | ||||||||||||||||
| Total one-way | (4.4 | )% | (4.5 | )% | (4.4 | )% | (4.2 | )% | (5.3 | )% | (5.8 | )% | (6.5 | )% | (4.8 | )% | ||||||||||||||||
| Total two-way | (5.8 | )% | (9.9 | )% | (5.1 | )% | (3.9 | )% | (5.7 | )% | (8.3 | )% | (4.7 | )% | (6.2 | )% | ||||||||||||||||
| Total paging gross disconnect rate | (4.5 | )% | (4.9 | )% | (4.4 | )% | (4.1 | )% | (5.3 | )% | (5.9 | )% | (6.3 | )% | (4.9 | )% | ||||||||||||||||
|
Net loss rate (c) |
||||||||||||||||||||||||||||||||
| Direct one-way | (1.4 | )% | (1.2 | )% | (2.1 | )% | (1.4 | )% | (1.8 | )% | (1.9 | )% | (3.7 | )% | (2.1 | )% | ||||||||||||||||
| Direct two-way | (2.2 | )% | (0.2 | )% | (0.9 | )% | (0.1 | )% | (3.0 | )% | (4.5 | )% | (0.6 | )% | (2.2 | )% | ||||||||||||||||
| Total direct | (1.5 | )% | (1.1 | )% | (2.0 | )% | (1.4 | )% | (1.9 | )% | (2.0 | )% | (3.5 | )% | (2.1 | )% | ||||||||||||||||
| Indirect one-way | (2.4 | )% | (4.4 | )% | (4.0 | )% | (4.3 | )% | (4.1 | )% | (4.8 | )% | (6.3 | )% | (3.9 | )% | ||||||||||||||||
| Indirect two-way | (1.7 | )% | (19.4 | )% | (3.6 | )% | (2.0 | )% | (1.5 | )% | (2.2 | )% | (1.9 | )% | (4.9 | )% | ||||||||||||||||
| Total indirect | (2.1 | )% | (11.9 | )% | (3.8 | )% | (3.1 | )% | (2.8 | )% | (3.5 | )% | (4.2 | )% | (4.4 | )% | ||||||||||||||||
| Total one-way | (1.5 | )% | (1.3 | )% | (2.1 | )% | (1.5 | )% | (1.9 | )% | (2.0 | )% | (3.7 | )% | (2.2 | )% | ||||||||||||||||
| Total two-way | (2.1 | )% | (5.7 | )% | (1.7 | )% | (0.6 | )% | (2.5 | )% | (3.8 | )% | (1.0 | )% | (3.0 | )% | ||||||||||||||||
| Total paging net loss rate | (1.5 | )% | (1.6 | )% | (2.1 | )% | (1.4 | )% | (1.9 | )% | (2.1 | )% | (3.5 | )% | (2.2 | )% | ||||||||||||||||
| (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. | ||||||||||||||||||||||||||||||||
| SPOK HOLDINGS, INC. | ||||||||||||||||||||||||
| SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a) | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||
|
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 |
9/30/2014 |
6/30/2014 |
3/31/2014 |
12/31/2013 |
|||||||||||||||||
| Gross placement rate (b) | ||||||||||||||||||||||||
| Healthcare | 3.3 | % | 3.8 | % | 2.6 | % | 3.0 | % | 3.8 | % | 4.5 | % | 3.1 | % | 2.9 | % | ||||||||
| Government | 1.4 | % | 1.9 | % | 1.0 | % |
1.2 |
% | 1.5 | % | 2.6 | % | 1.9 | % | 1.5 | % | ||||||||
| Large enterprise | 2.2 | % | 1.7 | % | 2.1 | % | 2.3 | % | 2.7 | % | 2.0 | % | 2.9 | % | 3.0 | % | ||||||||
| Other | 2.4 | % | 1.8 | % | 1.6 | % | 2.1 | % | 4.3 | % | 2.2 | % | 2.1 | % | 1.7 | % | ||||||||
| Total direct | 3.0 | % | 3.4 | % | 2.3 | % | 2.8 | % | 3.5 | % | 4.0 | % | 2.9 | % | 2.7 | % | ||||||||
| Total indirect | 1.5 | % | 1.3 | % | 1.7 | % | 1.3 | % | 1.4 | % | 1.3 | % | 1.2 | % | 1.5 | % | ||||||||
| Total | 3.0 | % | 3.3 | % | 2.3 | % | 2.7 | % | 3.4 | % | 3.9 | % | 2.8 | % | 2.7 | % | ||||||||
| Gross disconnect rate (b) | ||||||||||||||||||||||||
| Healthcare | (4.3 | )% | (3.8 | )% | (3.9 | )% | (3.8 | )% | (5.1 | )% | (5.3 | )% | (6.5 | )% | (4.5 | )% | ||||||||
| Government | (4.7 | )% | (7.0 | )% | (5.0 | )% | (4.7 | )% | (7.5 | )% | (7.6 | )% | (5.6 | )% | (4.7 | )% | ||||||||
| Large enterprise | (5.0 | )% | (7.3 | )% | (5.7 | )% | (4.7 | )% | (4.8 | )% | (8.9 | )% | (5.4 | )% | (6.4 | )% | ||||||||
| Other | (6.1 | )% | (7.0 | )% | (7.1 | )% | (6.4 | )% | (6.9 | )% | (7.7 | )% | (6.5 | )% | (6.5 | )% | ||||||||
| Total direct | (4.5 | )% | (4.5 | )% | (4.3 | )% | (4.1 | )% | (5.4 | )% | (6.0 | )% | (6.4 | )% | (4.8 | )% | ||||||||
| Total indirect | (3.6 | )% | (13.1 | )% | (5.5 | )% | (4.4 | )% | (4.2 | )% | (4.8 | )% | (5.5 | )% | (5.9 | )% | ||||||||
| Total | (4.4 | )% | (4.9 | )% | (4.4 | )% | (4.1 | )% | (5.3 | )% | (5.9 | )% | (6.3 | )% | (4.9 | )% | ||||||||
| Net loss rate (b) | ||||||||||||||||||||||||
| Healthcare | (1.0 | )% | 0.1 | % | (1.3 | )% | (0.7 | )% | (1.3 | )% | (0.8 | )% | (3.5 | )% | (1.5 | )% | ||||||||
| Government | (3.3 | )% | (5.1 | )% | (4.0 | )% | (3.5 | )% | (6.0 | )% | (5.0 | )% | (3.6 | )% | (3.2 | )% | ||||||||
| Large enterprise | (2.8 | )% | (5.6 | )% | (3.6 | )% | (2.4 | )% | (2.1 | )% | (6.9 | )% | (2.5 | )% | (3.3 | )% | ||||||||
| Other | (3.7 | )% | (5.1 | )% | (5.5 | )% | (4.4 | )% | (2.5 | )% | (5.5 | )% | (4.4 | )% | (4.8 | )% | ||||||||
| Total direct | (1.5 | )% | (1.1 | )% | (2.0 | )% | (1.4 | )% | (1.9 | )% | (2.0 | )% | (3.5 | )% | (2.1 | )% | ||||||||
| Total indirect | (2.1 | )% | (11.9 | )% | (3.8 | )% | (3.1 | )% | (2.8 | )% | (3.5 | )% | (4.2 | )% | (4.4 | )% | ||||||||
| Total | (1.5 | )% | (1.6 | )% | (2.1 | )% | (1.4 | )% | (1.9 | )% | (2.1 | )% | (3.5 | )% | (2.2 | )% | ||||||||
| End of period units in service % of total (b) | ||||||||||||||||||||||||
| Healthcare | 76.3 | % | 75.9 | % | 74.7 | % | 74.1 | % | 73.6 | % | 73.0 | % | 72.0 | % | 71.9 | % | ||||||||
| Government | 7.2 | % | 7.4 | % | 7.7 | % | 7.8 | % | 7.9 | % | 8.3 | % | 8.6 | % | 8.6 | % | ||||||||
| Large enterprise | 7.2 | % | 7.2 | % | 7.6 | % | 7.7 | % | 7.8 | % | 7.8 | % | 8.2 | % | 8.1 | % | ||||||||
| Other | 5.6 | % | 5.7 | % | 6.0 | % | 6.2 | % | 6.4 | % | 6.6 | % | 6.8 | % | 7.0 | % | ||||||||
| Total direct | 96.3 | % | 96.2 | % | 95.9 | % | 95.8 | % | 95.7 | % | 95.7 | % | 95.6 | % | 95.6 | % | ||||||||
| Total indirect | 3.7 | % | 3.8 | % | 4.1 | % | 4.2 | % | 4.3 | % | 4.3 | % | 4.4 | % | 4.4 | % | ||||||||
| Total | 100.0 | % | 100.0 | % | 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. | ||||||||||||||||||||||||
| SPOK HOLDINGS, INC. | ||||||||||||||||||||||||||||||||
| SUPPLEMENTAL INFORMATION - DIRECT PAGING UNITS IN SERVICE AND | ||||||||||||||||||||||||||||||||
| CELLULAR ACTIVATIONS (a) | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||||||
|
9/30/2015 |
6/30/2015 |
3/31/2015 |
12/31/2014 |
9/30/2014 |
6/30/2014 |
3/31/2014 |
12/31/2013 |
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|
Account size ending units in service (000's) |
||||||||||||||||||||||||||||||||
| 1 to 3 units | 31 | 32 | 33 | 35 | 37 | 39 | 41 | 43 | ||||||||||||||||||||||||
| 4 to 10 units | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | ||||||||||||||||||||||||
| 11 to 50 units | 44 | 47 | 49 | 51 | 53 | 56 | 57 | 61 | ||||||||||||||||||||||||
| 51 to 100 units | 31 | 33 | 32 | 34 | 36 | 38 | 41 | 42 |
|
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| 101 to 1,000 units | 238 | 244 | 252 | 262 | 267 | 275 | 282 | 287 | ||||||||||||||||||||||||
| >1,000 units | 787 | 792 | 794 | 801 | 805 | 812 | 824 | 857 | ||||||||||||||||||||||||
| Total | 1,149 | 1,167 | 1,180 | 1,204 | 1,220 | 1,243 | 1,269 | 1,315 | ||||||||||||||||||||||||
| End of period units in service % of total direct | ||||||||||||||||||||||||||||||||
| 1 to 3 units | 2.7 | % | 2.8 | % | 2.8 | % | 2.9 | % | 3.0 | % | 3.1 | % | 3.2 | % | 3.2 | % | ||||||||||||||||
| 4 to 10 units | 1.5 | % | 1.6 | % | 1.7 | % | 1.7 | % | 1.8 | % | 1.8 | % | 1.9 | % | 1.9 | % | ||||||||||||||||
| 11 to 50 units | 3.9 | % | 4.0 | % | 4.2 | % | 4.2 | % | 4.3 | % | 4.5 | % | 4.5 | % | 4.6 | % | ||||||||||||||||
| 51 to 100 units | 2.7 | % | 2.8 | % | 2.7 | % | 2.8 | % | 3.0 | % | 3.1 | % | 3.2 | % | 3.2 | % | ||||||||||||||||
| 101 to 1,000 units | 20.7 | % | 20.9 | % | 21.4 | % | 21.8 | % | 21.9 | % | 22.1 | % | 22.3 | % | 21.9 | % | ||||||||||||||||
| >1,000 units | 68.5 | % | 67.9 | % | 67.2 | % | 66.6 | % | 66.0 | % | 65.4 | % | 64.9 | % | 65.2 | % | ||||||||||||||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||
| Account size net loss rate | ||||||||||||||||||||||||||||||||
| 1 to 3 units | (4.1 | )% | (2.9 | )% | (6.2 | )% | (4.4 | )% | (4.8 | )% | (4.1 | )% | (4.9 | )% | (4.4 | )% | ||||||||||||||||
| 4 to 10 units | (5.3 | )% | (5.0 | )% | (6.2 | )% | (5.5 | )% | (4.0 | )% | (5.4 | )% | (4.1 | )% | (3.8 | )% | ||||||||||||||||
| 11 to 50 units | (4.8 | )% | (4.1 | )% | (4.6 | )% | (3.8 | )% | (5.2 | )% | (3.2 | )% | (5.3 | )% | (4.4 | )% | ||||||||||||||||
| 51 to 100 units | (5.4 | )% | 0.2 | % | (4.1 | )% | (5.4 | )% | (5.2 | )% | (8.7 | )% | (1.2 | )% | (3.5 | )% | ||||||||||||||||
| 101 to 1,000 units | (2.5 | )% | (3.0 | )% | (3.9 | )% | (2.0 | )% | (2.9 | )% | (2.5 | )% | (1.7 | )% | (1.7 | )% | ||||||||||||||||
| >1,000 units | (0.6 | )% | (0.2 | )% | (0.8 | )% | (0.5 | )% | (1.0 | )% | (1.2 | )% | (4.0 | )% | (1.8 | )% | ||||||||||||||||
| Total | (1.5 | )% | (1.1 | )% | (2.0 | )% | (1.4 | )% | (1.9 | )% | (2.0 | )% | (3.5 | )% | (2.1 | )% | ||||||||||||||||
| Account size ARPU | ||||||||||||||||||||||||||||||||
| 1 to 3 units | $ | 14.34 | $ | 14.52 | $ | 14.52 | $ | 14.53 | $ | 14.65 | $ | 14.86 | $ | 14.96 | $ | 14.98 | ||||||||||||||||
| 4 to 10 units | 14.11 | 14.11 | 14.07 | 14.09 | 14.04 | 14.12 | 14.22 | 14.29 | ||||||||||||||||||||||||
| 11 to 50 units | 12.03 | 12.13 | 12.02 | 12.00 | 11.95 | 12.00 | 12.07 | 11.96 | ||||||||||||||||||||||||
| 51 to 100 units | 10.48 | 10.42 | 10.26 | 10.15 | 10.16 | 10.18 | 10.27 | 10.34 | ||||||||||||||||||||||||
| 101 to 1,000 units | 8.79 | 8.78 | 8.81 | 8.79 | 8.69 | 8.58 | 8.76 | 8.89 | ||||||||||||||||||||||||
| >1,000 units | 6.87 | 6.90 | 6.95 | 6.93 | 6.99 | 7.00 | 7.11 | 7.11 | ||||||||||||||||||||||||
| Total | $ | 7.88 | $ | 7.93 | $ | 7.99 | $ | 8.00 | $ | 8.05 | $ | 8.06 | $ | 8.19 | $ | 8.23 | ||||||||||||||||
| Cellular: | ||||||||||||||||||||||||||||||||
| Number of activations | 33 | 144 | 92 | 264 | 2,198 | 1,679 | 281 | 690 | ||||||||||||||||||||||||
| Revenue from cellular services (000's) | $ | 25 | $ | 39 | $ | 40 | $ | 77 | $ | 395 | $ | 278 | $ | 108 | $ | 129 | ||||||||||||||||
| (a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||
