Spok Reports 2016 First Quarter Operating Results; Wireless Trends Improve, Software Maintenance Renewal Rates More Than 99 Percent
Apr 27, 2016 4:15 PM
Board Declares Regular Quarterly Dividend
2016 First-Quarter Results:
In the 2016 first quarter, consolidated revenue was
First quarter EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled
Net income for the first quarter of 2016 was
Other key results and highlights for the first quarter included:
-
Software bookings for the 2016 first quarter were
$15.1 million , compared to$17.7 million in the prior year quarter. First quarter bookings included$5.6 million of operations bookings and$9.5 million of maintenance renewals. -
Software backlog totaled
$36.8 million atMarch 31, 2016 , compared to$38.7 million atDecember 31, 2015 , and$40.6 million in the year earlier period. -
Of the
$17.2 million in software revenue for the first quarter,$8.1 million was operations revenue and$9.1 million was maintenance revenue, compared to$9.4 million and$8.0 million , respectively, of the$17.4 million in software revenue in the first quarter of 2015. - The renewal rate for software maintenance in the first quarter of 2016 was greater than 99 percent.
-
The quarterly rate of paging unit erosion was 1.7 percent in the first
quarter of 2016, compared to 2.1 percent in the year-earlier quarter.
Net paging unit losses were 20,000 in the first quarter of 2016, down
from 26,000 in the first quarter of 2015. Paging units in service at
March 31, 2016 totaled 1,153,000, compared to 1,230,000 at the end of the prior year period. - The quarterly rate of wireless revenue erosion continued to slow to 1.9 percent in the first quarter of 2016 versus 3.1 percent in the year-earlier quarter.
-
Total paging ARPU (average revenue per unit) was
$7.77 in the first quarter of 2016, compared to$7.79 in the prior quarter and$7.91 in the year-earlier quarter. -
Consolidated operating expenses (excluding depreciation, amortization
and accretion) totaled
$36.3 million in the first quarter of 2016, compared to$38.1 million in the year-earlier quarter, and$37.4 million in the prior quarter. -
Capital expenses were
$1.4 million in the first quarter of 2016, compared to$1 million in the year-earlier quarter. -
The number of full-time equivalent employees at
March 31, 2016 totaled 595, compared to 600 at year-end 2015 and 604 atMarch 31, 2015 . -
Capital returned to stockholders in the first quarter of 2016 totaled
$7.5 million , in the form of$2.6 million from dividends and$4.9 million from share repurchases. -
The Company’s cash balance at
March 31, 2015 was$111.9 million , compared to$105.6 million atMarch 31, 2015 , and$111.3 million at the prior year-end.
Management Commentary:
“We are encouraged with our performance in the first quarter of 2016 and
believe that it provides a solid base for the remainder of the year,”
said
Commenting on software results, Kelly said: “As anticipated, software sales were in-line with prior year levels and down sequentially from the typically more robust fourth quarter levels.” Kelly attributed the ability to maintain year-over-year software revenue levels primarily to a more than 99 percent renewal rate on software maintenance contracts. Similar to Spok’s wireless revenue stream, software maintenance revenue is a largely recurring revenue stream that provides the Company with a more stable revenue and margin base.
Kelly said first quarter bookings of
Kelly also noted that in addition to the Company’s quarterly financial
performance, progress was made in several other areas, including product
development, sales strategy and key strategic partnership agreements.
“Spok continues to build an industry-leading reputation, and is
generating sales momentum at the conferences we attend,” commented
Kelly. “During the quarter, we generated tremendous activity from
tradeshows, including the
The Company posted solid results for its wireless products and services in the first quarter. Gross pager placements of 28,000 were in-line with the year-earlier quarter, while gross disconnects of 48,000 improved from 55,000 in the first quarter of 2015 and 50,000 in the prior quarter. “As a result, annual net pager losses declined to an historical low of 6.2 percent from the prior year-end, on a twelve month trailing basis, and were 1.7 percent in the first quarter, down significantly from 2.1 percent in the prior-year quarter,” continued Kelly. “Overall, wireless sales efforts continued to focus primarily on our core market segments of Healthcare, Government and Large Enterprise, which represented approximately 91.3 percent of our subscriber base and 86.1 percent of our paging revenue at quarter end. Healthcare comprised 77.5 percent of our subscriber base, and continued to be our best performing market segment with the highest rate of gross placements and lowest rate of unit disconnects.”
Business Outlook:
Commenting on the Company’s previously provided financial guidance for
2016, Endsley noted: “We are pleased that quarterly results were
consistent with our expectations and we are maintaining the 2016
guidance range that we provided last quarter.” With regard to financial
guidance for 2016, Endsley reiterated that the Company expects total
revenue to range from
2016 First-Quarter Call and Replay:
About
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
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a) | |||||||||
(Unaudited and in thousands except share, per share amounts and ARPU) | |||||||||
For the three months ended | |||||||||
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Revenue: | |||||||||
Wireless | $ | 28,172 | $ | 30,690 | |||||
Software | $ | 17,216 | $ | 17,448 | |||||
Total revenue | 45,388 | 48,138 | |||||||
Operating expenses: | |||||||||
Cost of revenue | $ | 8,017 | $ | 8,813 | |||||
Service, rental and maintenance | $ | 11,213 | $ | 11,256 | |||||
Selling and marketing | $ | 6,529 | $ | 7,048 | |||||
General and administrative | $ | 10,510 | $ | 11,001 | |||||
Severance | $ | (4 | ) | $ | — | ||||
Depreciation, amortization and accretion | $ | 3,323 | $ | 3,747 | |||||
Total operating expenses | 39,588 | 41,865 | |||||||
% of total revenue | 87.2 | % | 87.0 | % | |||||
Operating income | 5,800 | 6,273 | |||||||
% of total revenue | 12.8 | % | 13.0 | % | |||||
Interest income (expense), net | $ | 49 | $ | (1 | ) | ||||
Other income (expense), net | $ | 254 | $ | 60 | |||||
Income before income tax expense | 6,103 | 6,332 | |||||||
Income tax benefit (expense) | $ | (2,659 | ) | $ | (2,415 | ) | |||
Net income | $ | 3,444 | $ | 3,917 | |||||
Basic net income per common share | $ | 0.17 | $ | 0.18 | |||||
Diluted net income per common share | $ | 0.17 | $ | 0.18 | |||||
Basic weighted average common shares outstanding | 20,683,719 | 21,898,792 | |||||||
Diluted weighted average common shares outstanding | 20,845,661 | 22,053,015 | |||||||
Reconciliation of operating income to EBITDA (b): | |||||||||
Operating income | $ | 5,800 | $ | 6,273 | |||||
Add back: depreciation, amortization and accretion | 3,323 | 3,747 | |||||||
EBITDA | $ | 9,123 | $ | 10,020 | |||||
% of total revenue | 20.1 | % | 20.8 | % | |||||
Key statistics: | |||||||||
Units in service | 1,153 | 1,230 | |||||||
Average revenue per unit (ARPU) | $ | 7.77 | $ | 7.91 | |||||
Bookings | $ | 15,106 | $ | 17,740 | |||||
Backlog | $ | 36,766 | $ | 40,551 | |||||
(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. | |||||||||
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a) | ||||||||||||||||||||||||||||||||||||||||
(Unaudited and in thousands except share, per share amounts and ARPU) | ||||||||||||||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||||||||||||||
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Revenue: | ||||||||||||||||||||||||||||||||||||||||
Wireless | $ | 28,172 | $ | 28,727 | $ | 29,375 | $ | 30,222 | $ | 30,690 | $ | 31,678 | $ | 32,855 | $ | 33,518 | ||||||||||||||||||||||||
Software | 17,216 | 18,612 | 16,806 | 17,747 | 17,448 | 19,591 | 16,936 | 15,576 | ||||||||||||||||||||||||||||||||
Total revenue | 45,388 | 47,339 | 46,181 | 47,969 | 48,138 | 51,269 | 49,791 | 49,094 | ||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||
Cost of revenue | 8,017 | 8,035 | 7,871 | 9,131 | 8,813 | 10,571 | 8,000 | 7,180 | ||||||||||||||||||||||||||||||||
Service, rental and maintenance | 11,213 | 11,024 | 11,117 | 11,003 | 11,256 | 11,285 | 10,988 | 11,420 | ||||||||||||||||||||||||||||||||
Selling and marketing | 6,529 | 7,036 | 6,572 | 6,790 | 7,048 | 7,915 | 7,072 | 7,780 | ||||||||||||||||||||||||||||||||
General and administrative | 10,510 | 10,276 | 10,410 | 10,472 | 11,001 | 11,905 | 10,866 | 10,990 | ||||||||||||||||||||||||||||||||
Severance | (4 | ) | 1,056 | 141 | 1,504 | — | 926 | 545 | 4 | |||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 3,323 | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | ||||||||||||||||||||||||||||||||
Total operating expenses | 39,588 | 40,789 | 39,524 | 42,348 | 41,865 | 46,651 | 41,718 | 41,726 | ||||||||||||||||||||||||||||||||
% of total revenue | 87.2 | % | 86.2 | % | 85.6 | % | 88.3 | % | 87.0 | % | 91.0 | % | 83.8 | % | 85.0 | % | ||||||||||||||||||||||||
Operating income | 5,800 | 6,550 | 6,657 | 5,621 | 6,273 | 4,618 | 8,073 | 7,368 | ||||||||||||||||||||||||||||||||
% of total revenue | 12.8 | % | 13.8 | % | 14.4 | % | 11.7 | % | 13.0 | % | 9.0 | % | 16.2 | % | 15.0 | % | ||||||||||||||||||||||||
Interest income (expense), net | 49 | 13 | 1 | 3 | (1 | ) | (262 | ) | (63 | ) | (64 | ) | ||||||||||||||||||||||||||||
Other income (expense), net | 254 | 71 | 784 | 264 | 60 | (188 | ) | (2 | ) | (194 | ) | |||||||||||||||||||||||||||||
Income before income tax expense | 6,103 | 6,634 | 7,442 | 5,888 | 6,332 | 4,168 | 8,008 | 7,110 | ||||||||||||||||||||||||||||||||
Income tax benefit (expense) | (2,659 | ) | 66,087 | (3,222 | ) | (2,512 | ) | (2,415 | ) | 2,744 | (3,356 | ) | (2,819 | ) | ||||||||||||||||||||||||||
Net income | $ | 3,444 | $ | 72,721 | $ | 4,220 | $ | 3,376 | $ | 3,917 | $ | 6,912 | $ | 4,652 | $ | 4,291 | ||||||||||||||||||||||||
Basic net income per common share | $ | 0.17 | $ | 3.54 | $ | 0.20 | $ | 0.16 | $ | 0.18 | $ | 0.32 | $ | 0.21 | $ | 0.20 | ||||||||||||||||||||||||
Diluted net income per common share | $ | 0.17 | $ | 3.53 | $ | 0.20 | $ | 0.16 | $ | 0.18 | $ | 0.31 | $ | 0.21 | $ | 0.19 | ||||||||||||||||||||||||
Basic weighted average common shares outstanding | 20,683,719 | 20,528,326 | 21,301,311 | 21,677,299 | 21,898,792 | 21,554,746 | 21,651,347 | 21,642,163 | ||||||||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 20,845,661 | 20,628,053 | 21,352,838 | 21,735,829 | 22,053,015 | 22,101,600 | 22,135,554 | 22,099,791 | ||||||||||||||||||||||||||||||||
Reconciliation of operating income to EBITDA (b): | ||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 5,800 | $ | 6,550 | $ | 6,657 | $ | 5,621 | $ | 6,273 | $ | 4,618 | $ | 8,073 | $ | 7,368 | ||||||||||||||||||||||||
Add back: depreciation, amortization and accretion | 3,323 | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | ||||||||||||||||||||||||||||||||
EBITDA | $ | 9,123 | $ | 9,912 | $ | 10,070 | $ | 9,069 | $ | 10,020 | $ | 8,667 | $ | 12,320 | $ | 11,720 | ||||||||||||||||||||||||
% of total revenue | 20.1 | % | 20.9 | % | 21.8 | % | 18.9 | % | 20.8 | % | 16.9 | % | 24.7 | % | 23.9 | % | ||||||||||||||||||||||||
Key statistics: | ||||||||||||||||||||||||||||||||||||||||
Units in service | 1,153 | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | ||||||||||||||||||||||||||||||||
Average revenue per unit (ARPU) | $ | 7.77 | $ | 7.79 | $ | 7.82 | $ | 7.86 | $ | 7.91 | $ | 7.92 | $ | 7.97 | $ | 7.98 | ||||||||||||||||||||||||
Bookings | $ | 15,106 | $ | 18,511 | $ | 16,746 | $ | 21,027 | $ | 17,740 | $ | 22,272 | $ | 20,362 | $ | 18,959 | ||||||||||||||||||||||||
Backlog | $ | 36,766 | $ | 38,650 | $ | 41,639 | $ | 43,524 | $ | 40,551 | $ | 42,391 | $ | 42,117 | $ | 40,182 | ||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||||||||||||||||||
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CONDENSED CONSOLIDATED BALANCE SHEETS (a) | ||||||||
(In thousands) | ||||||||
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(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 111,921 | $ | 111,332 | ||||
Accounts receivable, net | 21,078 | 22,638 | ||||||
Prepaid expenses and other | 4,858 | 5,352 | ||||||
Inventory | 1,986 | 2,291 | ||||||
Total current assets | 139,843 | 141,613 | ||||||
Property and equipment, net | 14,806 | 15,386 | ||||||
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133,031 | 133,031 | ||||||
Other intangible assets, net | 13,853 | 14,964 | ||||||
Deferred income tax assets, net | 81,659 | 83,983 | ||||||
Other assets | 1,547 | 1,445 | ||||||
Total assets | $ | 384,739 | $ | 390,422 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 7,804 | $ | 9,247 | ||||
Accrued compensation and benefits | 9,837 | 10,864 | ||||||
Deferred revenue | 27,415 | 27,045 | ||||||
Total current liabilities | 45,056 | 47,156 | ||||||
Deferred revenue | 738 | 741 | ||||||
Other long-term liabilities | 8,854 | 8,972 | ||||||
Total liabilities | 54,648 | 56,869 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 2 | 2 | ||||||
Additional paid-in capital | 106,234 | 110,435 | ||||||
Retained earnings | 223,855 | 223,116 | ||||||
Total stockholders' equity | 330,091 | 333,553 | ||||||
Total liabilities and stockholders' equity | $ | 384,739 | $ | 390,422 | ||||
(a) Slight variations in totals are due to rounding. | ||||||||
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a) | |||||||||
(Unaudited and in thousands) | |||||||||
For the three months ended | |||||||||
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Cash flows from operating activities: | |||||||||
Net income | $ | 3,444 | $ | 3,917 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation, amortization and accretion | 3,323 | 3,747 | |||||||
Amortization of deferred financing costs | - | - | |||||||
Deferred income (benefit) tax expense | 2,327 | 1,997 | |||||||
Stock based compensation | 637 | 443 | |||||||
Provisions for doubtful accounts, service credits and other | 238 | 327 | |||||||
Adjustments of non-cash transaction taxes | (81 | ) | (49 | ) | |||||
Loss/(Gain) on disposals of property and equipment | - | (18 | ) | ||||||
Changes in assets and liabilities: | |||||||||
Accounts receivable | 1,322 | 1,268 | |||||||
Prepaid expenses, intangible assets and other assets | 595 | 54 | |||||||
Accounts payable, accrued liabilities and other | (2,667 | ) | (5,791 | ) | |||||
Customer deposits and deferred revenue | 381 | 530 | |||||||
Net cash provided by operating activities | 9,519 | 6,425 | |||||||
Cash flows from investing activities: | |||||||||
Purchases of property and equipment | (1,445 | ) | (1,040 | ) | |||||
Proceeds from disposals of property and equipment | - | 30 | |||||||
Net cash used in investing activities | (1,445 | ) | (1,010 | ) | |||||
Cash flows from financing activities: | |||||||||
Cash distributions to stockholders | (2,580 | ) | (3,356 | ) | |||||
Purchase of common stock (including commissions) | (4,905 | ) | (466 | ) | |||||
Employee stock based compensation tax withholding | - | (3,825 | ) | ||||||
Net cash used in financing activities | (7,485 | ) | (7,647 | ) | |||||
Net increase in cash and cash equivalents | 589 | (2,232 | ) | ||||||
Cash and cash equivalents, beginning of period | 111,332 | 107,869 | |||||||
Cash and cash equivalents, end of period | $ | 111,921 | $ | 105,637 | |||||
Supplemental disclosure: | |||||||||
Income taxes paid | $ | 352 | $ | 337 | |||||
(a) Slight variations in totals are due to rounding. | |||||||||
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CONSOLIDATED REVENUE | ||||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION (a) | ||||||||||||||||||||||||||||||||
(Unaudited and in thousands) | ||||||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||||||
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Revenue | ||||||||||||||||||||||||||||||||
Paging | $ | 27,101 | $ | 27,637 | $ | 28,196 | $ | 28,782 | $ | 29,491 | $ | 30,071 | $ | 30,776 | $ | 31,458 | ||||||||||||||||
Non-paging | 1,071 | 1,090 | 1,179 | 1,440 | 1,199 | 1,607 | 2,079 | 2,060 | ||||||||||||||||||||||||
Total wireless revenue | 28,172 | 28,727 | 29,375 | 30,222 | 30,690 | 31,678 | 32,855 | 33,518 | ||||||||||||||||||||||||
Subscription | 498 | 471 | 392 | 419 | 398 | 365 | 458 | 377 | ||||||||||||||||||||||||
License | 1,593 | 2,733 | 1,457 | 3,011 | 2,595 | 3,474 | 2,374 | 2,497 | ||||||||||||||||||||||||
Services | 4,315 | 4,610 | 4,600 | 4,609 | 5,018 | 5,579 | 4,305 | 3,558 | ||||||||||||||||||||||||
Equipment | 1,729 | 1,764 | 1,434 | 1,301 | 1,374 | 2,145 | 1,930 | 1,614 | ||||||||||||||||||||||||
Operations revenue | 8,135 | 9,578 | 7,883 | 9,340 | 9,385 | 11,563 | 9,067 | 8,046 | ||||||||||||||||||||||||
Maintenance revenue | 9,081 | 9,034 | 8,923 | 8,407 | 8,063 | 8,028 | 7,869 | 7,530 | ||||||||||||||||||||||||
Total software revenue | 17,216 | 18,612 | 16,806 | 17,747 | 17,448 | 19,591 | 16,936 | 15,576 | ||||||||||||||||||||||||
Total revenue | $ | 45,388 | $ | 47,339 | $ | 46,181 | $ | 47,969 | $ | 48,138 | $ | 51,269 | $ | 49,791 | $ | 49,094 | ||||||||||||||||
(a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||
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CONSOLIDATED OPERATING EXPENSES | |||||||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION (a) | |||||||||||||||||||||||||||||||||||
(Unaudited and in thousands) | |||||||||||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||||||||||
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Cost of revenue | |||||||||||||||||||||||||||||||||||
Payroll and related | $ | 4,634 | $ | 4,414 | $ | 4,277 | $ | 4,274 | $ | 4,157 | $ | 4,222 | $ | 3,743 | $ | 3,827 | |||||||||||||||||||
Cost of sales | 2,673 | 2,902 | 2,549 | 3,801 | 3,620 | 5,225 | 3,098 | 2,232 | |||||||||||||||||||||||||||
Stock based compensation | 49 | 33 | 33 | 34 | 34 | 81 | 108 | 81 | |||||||||||||||||||||||||||
Other | 661 | 686 | 1,012 | 1,022 | 1,002 | 1,043 | 1,051 | 1,040 | |||||||||||||||||||||||||||
Total cost of revenue | 8,017 | 8,035 | 7,871 | 9,131 | 8,813 | 10,571 | 8,000 | 7,180 | |||||||||||||||||||||||||||
Service, rental and maintenance | |||||||||||||||||||||||||||||||||||
Payroll and related | 5,072 | 4,815 | 4,613 | 4,555 | 4,652 | 4,533 | 4,106 | 4,434 | |||||||||||||||||||||||||||
Site rent | 3,660 | 3,663 | 3,763 | 3,783 | 3,766 | 3,834 | 3,914 | 3,981 | |||||||||||||||||||||||||||
Telecommunications | 1,222 | 1,218 | 1,392 | 1,288 | 1,343 | 1,487 | 1,548 | 1,669 | |||||||||||||||||||||||||||
Stock based compensation | 52 | 29 | 29 | 29 | 29 | 30 | 56 | (17 | ) | ||||||||||||||||||||||||||
Other | 1,207 | 1,299 | 1,320 | 1,348 | 1,466 | 1,401 | 1,364 | 1,353 | |||||||||||||||||||||||||||
Total service, rental and maintenance | 11,213 | 11,024 | 11,117 | 11,003 | 11,256 | 11,285 | 10,988 | 11,420 | |||||||||||||||||||||||||||
Selling and marketing | |||||||||||||||||||||||||||||||||||
Payroll and related | 3,666 | 3,780 | 3,664 | 3,732 | 3,916 | 3,945 | 3,859 | 4,099 | |||||||||||||||||||||||||||
Commissions | 1,525 | 1,754 | 1,858 | 1,792 | 1,836 | 2,481 | 1,949 | 2,087 | |||||||||||||||||||||||||||
Stock based compensation | 48 | (7 | ) | 16 | 51 | 51 | 131 | 151 | 131 | ||||||||||||||||||||||||||
Other | 1,290 | 1,509 | 1,034 | 1,215 | 1,245 | 1,358 | 1,113 | 1,463 | |||||||||||||||||||||||||||
Total selling and marketing | 6,529 | 7,036 | 6,572 | 6,790 | 7,048 | 7,915 | 7,072 | 7,780 | |||||||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||||||||||||||
Payroll and related | 4,392 | 4,029 | 4,320 | 4,611 | 4,879 | 4,737 | 4,217 | 4,440 | |||||||||||||||||||||||||||
Stock based compensation | 488 | 316 | 316 | 548 | 329 | 780 | 791 | 429 | |||||||||||||||||||||||||||
Facility rent | 839 | 856 | 868 | 841 | 941 | 830 | 863 | 899 | |||||||||||||||||||||||||||
Outside services | 1,726 | 1,783 | 1,864 | 1,728 | 1,786 | 1,786 | 1,698 | 1,719 | |||||||||||||||||||||||||||
Taxes, licenses and permits | 1,055 | 1,132 | 1,068 | 1,150 | 1,125 | 1,283 | 1,788 | 1,383 | |||||||||||||||||||||||||||
Other | 2,010 | 2,160 | 1,974 | 1,594 | 1,941 | 2,489 | 1,509 | 2,120 | |||||||||||||||||||||||||||
Total general and administrative | 10,510 | 10,276 | 10,410 | 10,472 | 11,001 | 11,905 | 10,866 | 10,990 | |||||||||||||||||||||||||||
Severance | (4 | ) | 1,056 | 141 | 1,504 | — | 926 | 545 | 4 | ||||||||||||||||||||||||||
Depreciation, amortization and accretion | 3,323 | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | |||||||||||||||||||||||||||
Operating expenses | $ | 39,588 | $ | 40,789 | $ | 39,524 | $ | 42,348 | $ | 41,865 | $ | 46,651 | $ | 41,718 | $ | 41,726 | |||||||||||||||||||
Capital expenditures | $ | 1,445 | $ | 2,024 | $ | 1,318 | $ | 1,992 | $ | 1,040 | $ | 1,352 | $ | 1,291 | $ | 2,393 | |||||||||||||||||||
(a) Slight variations in totals are due to rounding. | |||||||||||||||||||||||||||||||||||
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UNITS IN SERVICE ACTIVITY, MARKET SEGMENT, CHURN AND AVERAGE REVENUE PER UNIT (ARPU) (a) | ||||||||||||||||||||||||||||||||||||||||
(Unaudited and in thousands) | ||||||||||||||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||||||||||||||
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Paging units in service |
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Beginning units in service (000's) | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | 1,327 | ||||||||||||||||||||||||||||||||
Gross placements | 28 | 31 | 36 | 40 | 29 | 35 | 45 | 51 | ||||||||||||||||||||||||||||||||
Gross disconnects | (48 | ) | (50 | ) | (55 | ) | (59 | ) | (55 | ) | (53 | ) | (70 | ) | (79 | ) | ||||||||||||||||||||||||
Net change | (20 | ) | (19 | ) | (19 | ) | (19 | ) | (26 | ) | (18 | ) | (25 | ) | (28 | ) | ||||||||||||||||||||||||
Ending units in service | 1,153 | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | ||||||||||||||||||||||||||||||||
End of period units in service % of total (b) | ||||||||||||||||||||||||||||||||||||||||
Healthcare | 77.5 | % | 77.0 | % | 76.3 | % | 75.9 | % | 74.6 | % | 74.1 | % | 73.6 | % | 73.0 | % | ||||||||||||||||||||||||
Government | 6.9 | % | 7.2 | % | 7.2 | % | 7.3 | % | 7.6 | % | 7.8 | % | 7.9 | % | 8.3 | % | ||||||||||||||||||||||||
Large enterprise | 6.9 | % | 6.9 | % | 7.1 | % | 7.3 | % | 7.6 | % | 7.6 | % | 7.8 | % | 7.8 | % | ||||||||||||||||||||||||
Other(b) | 8.7 | % | 9.0 | % | 9.3 | % | 9.5 | % | 10.2 | % | 10.4 | % | 10.7 | % | 10.9 | % | ||||||||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||||||
Account size ending units in service (000's) | ||||||||||||||||||||||||||||||||||||||||
1 to 100 units | 118 | 123 | 128 | 134 | 139 | 145 | 152 | 160 | ||||||||||||||||||||||||||||||||
101 to 1,000 units | 238 | 243 | 250 | 256 | 266 | 277 | 282 | 289 | ||||||||||||||||||||||||||||||||
>1,000 units | 797 | 807 | 814 | 821 | 825 | 834 | 840 | 850 | ||||||||||||||||||||||||||||||||
Total | 1,153 | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | ||||||||||||||||||||||||||||||||
Account size net loss rate(c) | ||||||||||||||||||||||||||||||||||||||||
1 to 100 units | (4.3 | )% | (3.9 | )% | (4.4 | )% | (3.4 | )% | (4.3 | )% | (4.7 | )% | (5.0 | )% | (5.3 | )% | ||||||||||||||||||||||||
101 to 1,000 units | (2.0 | )% | (2.9 | )% | (2.4 | )% | (3.8 | )% | (3.8 | )% | (1.9 | )% | (2.4 | )% | (2.5 | )% | ||||||||||||||||||||||||
>1,000 units | (1.2 | )% | (0.9 | )% | (0.8 | )% | (0.6 | )% | (1.1 | )% | (0.7 | )% | (1.2 | )% | (1.3 | )% | ||||||||||||||||||||||||
Total | (1.7 | )% | (1.6 | )% | (1.5 | )% | (1.6 | )% | (2.1 | )% | (1.4 | )% | (1.9 | )% | (2.1 | )% | ||||||||||||||||||||||||
Account size ARPU | ||||||||||||||||||||||||||||||||||||||||
1 to 100 units | 12.57 | 12.52 | 12.49 | 12.57 | 12.58 | 12.50 | 12.54 | 12.47 | ||||||||||||||||||||||||||||||||
101 to 1,000 units | 8.70 | 8.65 | 8.69 | 8.72 | 8.74 | 8.76 | 8.76 | 8.68 | ||||||||||||||||||||||||||||||||
>1,000 units | 6.77 | 6.79 | 6.80 | 6.81 | 6.84 | 6.83 | 6.86 | 6.88 | ||||||||||||||||||||||||||||||||
Total | $ | 7.77 | $ | 7.79 | $ | 7.82 | $ | 7.86 | $ | 7.91 | $ | 7.92 | $ | 7.97 | $ | 7.98 | ||||||||||||||||||||||||
(a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||||||||||
(b) Other includes hospitality, resort and indirect units | ||||||||||||||||||||||||||||||||||||||||
(c) Net loss rate is net current period placements and disconnected units in service divided by prior period ending units in service. | ||||||||||||||||||||||||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160427006429/en/
Al.Galgano@spok.com
Source: