Spok Reports 2016 Second Quarter Operating Results; Software Bookings Increase, Wireless Trends Improve
Jul 27, 2016 4:15 PM
Board Declares Regular Quarterly Dividend
2016 Second-Quarter Results:
In the 2016 second quarter, consolidated revenue was
Net income for the second quarter of 2016 was
Second quarter EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled
Other key results and highlights for the second quarter included:
-
Software bookings for the 2016 second quarter were
$20.1 million , in-line with the prior year quarter and up nearly 33 percent from the prior quarter. Second quarter bookings included$10.2 million of operations bookings and$9.9 million of maintenance renewals. -
Software backlog totaled
$39.5 million atJune 30, 2016 , up from$36.8 million in the prior quarter. -
Of the
$16.8 million in software revenue for the second quarter,$7.7 million was operations revenue and$9.1 million was maintenance revenue, compared to$9.3 million and$8.4 million , respectively, of the$17.7 million in software revenue in the second quarter of 2015. - The renewal rate for software maintenance in the second quarter of 2016 continued at greater than 99 percent.
-
The quarterly rate of paging unit erosion slowed to 0.8 percent in the
second quarter of 2016, compared to 1.6 percent in the year-earlier
quarter. Net paging unit losses were 9,000 in the second quarter of
2016, down from 19,000 in the second quarter of 2015 and less than
half of net pager losses in the prior quarter. Paging units in service
at
June 30, 2016 totaled 1,144,000, compared to 1,211,000 at the end of the prior year quarter. - The quarterly rate of wireless revenue erosion continued to slow to 1.1 percent in the second quarter of 2016 versus 1.5 percent in the year-earlier quarter.
-
Total paging ARPU (average revenue per unit) was
$7.71 in the second quarter of 2016, compared to$7.77 in the prior quarter and$7.86 in the year-earlier quarter. -
Consolidated operating expenses (excluding depreciation, amortization
and accretion) totaled
$35.8 million in the second quarter of 2016, down from$38.9 million in the year-earlier quarter, and$36.3 million in the prior quarter. -
Capital expenses were
$1.5 million in the second quarter of 2016, compared to$2 million in the year-earlier quarter. -
The number of full-time equivalent employees at
June 30, 2016 totaled 597, compared to 600 at year-end 2015 and 608 atJune 30, 2015 . -
Capital returned to stockholders in the second quarter of 2016 totaled
$3.7 million , in the form of$2.6 million from dividends and$1.1 million from share repurchases. -
The Company’s cash balance at
June 30, 2016 was$117.1 million , unchanged fromJune 30, 2015 , and up from$111.3 million atDecember 31, 2015 .
2016 Year-to-Date Results:
In the first half of 2016, consolidated revenue was
Net income for the first half of 2016 was
First half 2016 EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled
Management Commentary:
“We are pleased with our performance in the second quarter of 2016 and
believe that we are beginning to see the benefits from the investments
that we made to enhance and upgrade our product development team and
tools, as well as our sales infrastructure and management,” said
Commenting on software results, Kelly said: “As anticipated, software revenues were in-line with prior quarter levels as we positioned ourselves for the second half of the year, when software sales tend to be more robust.” Kelly attributed the ability to maintain sequential 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 second 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 generate activity and sales momentum at the
conferences we attend,” commented Kelly. “In June, we saw tremendous
interest at those conferences, which included the
The Company posted solid results for its wireless products and services in the second quarter. Gross pager placements of 39,000 were in-line with the year-earlier quarter, and the highest level in the past twelve months, while gross disconnects of 48,000 improved sharply from 59,000 in the second quarter of 2015. “As a result, annual net pager losses declined to an historical low of 5.5 percent from the prior year’s second quarter, and were 0.8 percent in the second quarter, down significantly from 1.6 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 91.6 percent of our subscriber base and 89.6 percent of our paging revenue at quarter end. Healthcare comprised 78.2 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: “As a result of the solid performance we saw in the
second quarter, 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 Second-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
SPŌK HOLDINGS, INC. |
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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 | For the six months ended | ||||||||||||||||
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Revenue: | |||||||||||||||||
Wireless | $ | 27,859 | $ | 30,222 | $ | 56,031 | $ | 60,912 | |||||||||
Software | 16,776 | 17,747 | 33,992 | 35,195 | |||||||||||||
Total revenue | 44,635 | 47,969 | 90,023 | 96,107 | |||||||||||||
Operating expenses: | |||||||||||||||||
Cost of revenue | 7,513 | 9,131 | 15,528 | 17,944 | |||||||||||||
Service, rental and maintenance | 11,399 | 11,003 | 22,612 | 22,260 | |||||||||||||
Selling and marketing | 6,429 | 6,790 | 12,957 | 13,838 | |||||||||||||
General and administrative | 10,439 | 10,472 | 20,949 | 21,473 | |||||||||||||
Severance | — | 1,504 | (3 | ) | 1,504 | ||||||||||||
Depreciation, amortization and accretion | 3,235 | 3,448 | 6,558 | 7,195 | |||||||||||||
Total operating expenses | 39,015 | 42,348 | 78,601 | 84,214 | |||||||||||||
% of total revenue | 87.4 | % | 88.3 | % | 87.3 | % | 87.6 | % | |||||||||
Operating income | 5,620 | 5,621 | 11,422 | 11,893 | |||||||||||||
% of total revenue | 12.6 | % | 11.7 | % | 12.7 | % | 12.4 | % | |||||||||
Interest income (expense), net | 61 | 3 | 109 | 2 | |||||||||||||
Other income (expense), net | 104 | 264 | 357 | 325 | |||||||||||||
Income before income tax expense | 5,785 | 5,888 | 11,888 | 12,220 | |||||||||||||
Income tax benefit (expense) | (2,334 | ) | (2,512 | ) | (4,993 | ) | (4,927 | ) | |||||||||
Net income | $ | 3,451 | $ | 3,376 | $ | 6,895 | $ | 7,293 | |||||||||
Basic net income per common share | $ | 0.17 | $ | 0.16 | $ | 0.33 | $ | 0.33 | |||||||||
Diluted net income per common share | $ | 0.17 | $ | 0.16 | $ | 0.33 | $ | 0.33 | |||||||||
Basic weighted average common shares outstanding | 20,544,327 | 21,677,299 | 20,614,023 | 21,787,434 | |||||||||||||
Diluted weighted average common shares outstanding | 20,705,206 | 21,735,829 | 20,831,740 | 21,843,591 | |||||||||||||
Reconciliation of operating income to EBITDA (b): | |||||||||||||||||
Operating income | $ | 5,620 | $ | 5,621 | $ | 11,422 | $ | 11,893 | |||||||||
Add back: depreciation, amortization and accretion | 3,235 | 3,448 | 6,558 | 7,195 | |||||||||||||
EBITDA | $ | 8,855 | $ | 9,069 | $ | 17,980 | $ | 19,088 | |||||||||
% of total revenue | 19.8 | % | 18.9 | % | 20.0 | % | 19.9 | % | |||||||||
Key statistics: | |||||||||||||||||
Units in service | 1,144 | 1,211 | 1,144 | 1,211 | |||||||||||||
Average revenue per unit (ARPU) | $ | 7.71 | $ | 7.86 | $ | 7.72 | $ | 7.87 | |||||||||
Bookings | $ | 20,063 | $ | 21,027 | $ | 35,170 | $ | 38,767 | |||||||||
Backlog | $ | 39,475 | $ | 43,524 | $ | 39,475 | $ | 43,524 | |||||||||
(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 | |||||||||||||||||
SPŌK HOLDINGS, INC. |
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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 | $ | 27,859 | $ | 28,172 | $ | 28,727 | $ | 29,375 | $ | 30,222 | $ | 30,690 | $ | 31,678 | $ | 32,855 | ||||||||||||||||
Software | 16,776 | 17,216 | 18,612 | 16,806 | 17,747 | 17,448 | 19,591 | 16,936 | ||||||||||||||||||||||||
Total revenue | 44,635 | 45,388 | 47,339 | 46,181 | 47,969 | 48,138 | 51,269 | 49,791 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Cost of revenue | 7,513 | 8,017 | 8,035 | 7,871 | 9,131 | 8,813 | 10,571 | 8,000 | ||||||||||||||||||||||||
Service, rental and maintenance | 11,399 | 11,213 | 11,024 | 11,117 | 11,003 | 11,256 | 11,285 | 10,988 | ||||||||||||||||||||||||
Selling and marketing | 6,429 | 6,529 | 7,036 | 6,572 | 6,790 | 7,048 | 7,915 | 7,072 | ||||||||||||||||||||||||
General and administrative | 10,439 | 10,510 | 10,276 | 10,410 | 10,472 | 11,001 | 11,905 | 10,866 | ||||||||||||||||||||||||
Severance | — | (4 | ) | 1,056 | 141 | 1,504 | — | 926 | 545 | |||||||||||||||||||||||
Depreciation, amortization and accretion | 3,235 | 3,323 | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | ||||||||||||||||||||||||
Total operating expenses | 39,015 | 39,588 | 40,789 | 39,524 | 42,348 | 41,865 | 46,651 | 41,718 | ||||||||||||||||||||||||
% of total revenue | 87.4 | % | 87.2 | % | 86.2 | % | 85.6 | % | 88.3 | % | 87.0 | % | 91.0 | % | 83.8 | % | ||||||||||||||||
Operating income | 5,620 | 5,800 | 6,550 | 6,657 | 5,621 | 6,273 | 4,618 | 8,073 | ||||||||||||||||||||||||
% of total revenue | 12.6 | % | 12.8 | % | 13.8 | % | 14.4 | % | 11.7 | % | 13.0 | % | 9.0 | % | 16.2 | % | ||||||||||||||||
Interest income (expense), net | 61 | 49 | 13 | 1 | 3 | (1 | ) | (262 | ) | (63 | ) | |||||||||||||||||||||
Other income (expense), net | 104 | 254 | 71 | 784 | 264 | 60 | (188 | ) | (2 | ) | ||||||||||||||||||||||
Income before income tax expense | 5,785 | 6,103 | 6,634 | 7,442 | 5,888 | 6,332 | 4,168 | 8,008 | ||||||||||||||||||||||||
Income tax benefit (expense) | (2,334 | ) | (2,659 | ) | 66,087 | (3,222 | ) | (2,512 | ) | (2,415 | ) | 2,744 | (3,356 | ) | ||||||||||||||||||
Net income | $ | 3,451 | $ | 3,444 | $ | 72,721 | $ | 4,220 | $ | 3,376 | $ | 3,917 | $ | 6,912 | $ | 4,652 | ||||||||||||||||
Basic net income per common share | $ | 0.17 | $ | 0.17 | $ | 3.54 | $ | 0.20 | $ | 0.16 | $ | 0.18 | $ | 0.32 | $ | 0.21 | ||||||||||||||||
Diluted net income per common share | $ | 0.17 | $ | 0.17 | $ | 3.53 | $ | 0.20 | $ | 0.16 | $ | 0.18 | $ | 0.31 | $ | 0.21 | ||||||||||||||||
Basic weighted average common shares outstanding | 20,544,327 | 20,683,719 | 20,528,326 | 21,301,311 | 21,677,299 | 21,898,792 | 21,554,746 | 21,651,347 | ||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 20,705,206 | 20,845,661 | 20,628,053 | 21,352,838 | 21,735,829 | 22,053,015 | 22,101,600 | 22,135,554 | ||||||||||||||||||||||||
Reconciliation of operating income to EBITDA (b): | ||||||||||||||||||||||||||||||||
Operating income | $ | 5,620 | $ | 5,800 | $ | 6,550 | $ | 6,657 | $ | 5,621 | $ | 6,273 | $ | 4,618 | $ | 8,073 | ||||||||||||||||
Add back: depreciation, amortization and accretion | 3,235 | 3,323 | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | ||||||||||||||||||||||||
EBITDA | $ | 8,855 | $ | 9,123 | $ | 9,912 | $ | 10,070 | $ | 9,069 | $ | 10,020 | $ | 8,667 | $ | 12,320 | ||||||||||||||||
% of total revenue | 19.8 | % | 20.1 | % | 20.9 | % | 21.8 | % | 18.9 | % | 20.8 | % | 16.9 | % | 24.7 | % | ||||||||||||||||
Key statistics: | ||||||||||||||||||||||||||||||||
Units in service | 1,144 | 1,153 | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | ||||||||||||||||||||||||
Average revenue per unit (ARPU) | $ | 7.71 | $ | 7.77 | $ | 7.79 | $ | 7.82 | $ | 7.86 | $ | 7.91 | $ | 7.92 | $ | 7.97 | ||||||||||||||||
Bookings | $ | 20,063 | $ | 15,106 | $ | 18,511 | $ | 16,746 | $ | 21,027 | $ | 17,740 | $ | 22,272 | $ | 20,362 | ||||||||||||||||
Backlog | $ | 39,475 | $ | 36,766 | $ | 38,650 | $ | 41,639 | $ | 43,524 | $ | 40,551 | $ | 42,391 | $ | 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 | ||||||||||||||||||||||||||||||||
SPŌK HOLDINGS, INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS (a) | |||||||||
(In thousands) | |||||||||
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(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 117,095 | $ | 111,332 | |||||
Accounts receivable, net | 23,737 | 22,638 | |||||||
Prepaid expenses and other | 4,116 | 5,352 | |||||||
Inventory | 2,129 | 2,291 | |||||||
Total current assets | 147,077 | 141,613 | |||||||
Property and equipment, net | 14,297 | 15,386 | |||||||
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133,031 | 133,031 | |||||||
Other intangible assets, net | 12,817 | 14,964 | |||||||
Deferred income tax assets, net | 79,644 | 83,983 | |||||||
Other assets | 1,541 | 1,445 | |||||||
Total assets | $ | 388,407 | $ | 390,422 | |||||
Liabilities and stockholders' equity | |||||||||
Current liabilities: | |||||||||
Accounts payable and accrued liabilities | $ | 8,370 | $ | 9,247 | |||||
Accrued compensation and benefits | 11,618 | 10,864 | |||||||
Deferred revenue | 28,239 | 27,045 | |||||||
Total current liabilities | 48,227 | 47,156 | |||||||
Deferred revenue | 674 | 741 | |||||||
Other long-term liabilities | 8,960 | 8,972 | |||||||
Total liabilities | 57,861 | 56,869 | |||||||
Commitments and contingencies | |||||||||
Stockholders' equity: | |||||||||
Preferred stock | — | — | |||||||
Common stock | 2 | 2 | |||||||
Additional paid-in capital | 105,867 | 110,435 | |||||||
Retained earnings | 224,677 | 223,116 | |||||||
Total stockholders' equity | 330,546 | 333,553 | |||||||
Total liabilities and stockholders' equity | $ | 388,407 | $ | 390,422 | |||||
(a) Slight variations in totals are due to rounding. | |||||||||
SPŌK HOLDINGS, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a) | |||||||||
(Unaudited and in thousands) | |||||||||
For the six months ended | |||||||||
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Cash flows from operating activities: | |||||||||
Net income | $ | 6,895 | $ | 7,293 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation, amortization and accretion | 6,558 | 7,195 | |||||||
Amortization of deferred financing costs | - | - | |||||||
Deferred income (benefit) tax expense | 4,346 | 4,086 | |||||||
Stock based compensation | 1,368 | 1,104 | |||||||
Provisions for doubtful accounts, service credits and other | 322 | 716 | |||||||
Adjustments of non-cash transaction taxes | (169 | ) | (97 | ) | |||||
Loss/(Gain) on disposals of property and equipment | (1 | ) | (166 | ) | |||||
Changes in assets and liabilities: | |||||||||
Accounts receivable | (1,421 | ) | 2,239 | ||||||
Prepaid expenses, intangible assets and other assets | 1,197 | 741 | |||||||
Accounts payable, accrued liabilities and other | (358 | ) | (685 | ) | |||||
Customer deposits and deferred revenue | 1,142 | 3,070 | |||||||
Net cash provided by operating activities | 19,879 | 25,496 | |||||||
Cash flows from investing activities: | |||||||||
Purchases of property and equipment | (2,982 | ) | (3,033 | ) | |||||
Proceeds from disposals of property and equipment | 1 | 180 | |||||||
Net cash used in investing activities | (2,981 | ) | (2,853 | ) | |||||
Cash flows from financing activities: | |||||||||
Cash distributions to stockholders | (5,150 | ) | (6,069 | ) | |||||
Purchase of common stock (including commissions) | (5,985 | ) | (3,475 | ) | |||||
Employee stock based compensation tax withholding | - | (3,825 | ) | ||||||
Net cash used in financing activities | (11,135 | ) | (13,369 | ) | |||||
Net increase in cash and cash equivalents | 5,763 | 9,274 | |||||||
Cash and cash equivalents, beginning of period | 111,332 | 107,869 | |||||||
Cash and cash equivalents, end of period | $ | 117,095 | $ | 117,143 | |||||
Supplemental disclosure: | |||||||||
Income taxes paid | $ | 598 | $ | 337 | |||||
(a) Slight variations in totals are due to rounding. | |||||||||
SPŌK HOLDINGS, INC. |
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CONSOLIDATED REVENUE | ||||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION (a) | ||||||||||||||||||||||||||||||||
(Unaudited and in thousands) | ||||||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||||||
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Revenue | ||||||||||||||||||||||||||||||||
Paging | $ | 26,564 | $ | 27,101 | $ | 27,637 | $ | 28,196 | $ | 28,782 | $ | 29,491 | $ | 30,071 | $ | 30,776 | ||||||||||||||||
Non-paging | 1,295 | 1,071 | 1,090 | 1,179 | 1,440 | 1,199 | 1,607 | 2,079 | ||||||||||||||||||||||||
Total wireless revenue | $ | 27,859 | $ | 28,172 | $ | 28,727 | $ | 29,375 | $ | 30,222 | $ | 30,690 | $ | 31,678 | $ | 32,855 | ||||||||||||||||
Subscription | 503 | 498 | 471 | 392 | 419 | 398 | 365 | 458 | ||||||||||||||||||||||||
License | 1,691 | 1,593 | 2,733 | 1,457 | 3,011 | 2,595 | 3,474 | 2,374 | ||||||||||||||||||||||||
Services | 4,202 | 4,315 | 4,610 | 4,600 | 4,609 | 5,018 | 5,579 | 4,305 | ||||||||||||||||||||||||
Equipment | 1,250 | 1,729 | 1,764 | 1,434 | 1,301 | 1,374 | 2,145 | 1,930 | ||||||||||||||||||||||||
Operations revenue | $ | 7,646 | $ | 8,135 | $ | 9,578 | $ | 7,883 | $ | 9,340 | $ | 9,385 | $ | 11,563 | $ | 9,067 | ||||||||||||||||
Maintenance revenue | $ | 9,130 | $ | 9,081 | $ | 9,034 | $ | 8,923 | $ | 8,407 | $ | 8,063 | $ | 8,028 | $ | 7,869 | ||||||||||||||||
Total software revenue | $ | 16,776 | $ | 17,216 | $ | 18,612 | $ | 16,806 | $ | 17,747 | $ | 17,448 | $ | 19,591 | $ | 16,936 | ||||||||||||||||
Total revenue | $ | 44,635 | $ | 45,388 | $ | 47,339 | $ | 46,181 | $ | 47,969 | $ | 48,138 | $ | 51,269 | $ | 49,791 | ||||||||||||||||
(a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||
SPŌK HOLDINGS, INC. |
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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 | $ | 4,406 | $ | 4,634 | $ | 4,414 | $ | 4,277 | $ | 4,274 | $ | 4,157 | $ | 4,222 | $ | 3,743 | ||||||||||||||||
Cost of sales | 2,227 | 2,673 | 2,902 | 2,549 | 3,801 | 3,620 | 5,225 | 3,098 | ||||||||||||||||||||||||
Stock based compensation | 58 | 49 | 33 | 33 | 34 | 34 | 81 | 108 | ||||||||||||||||||||||||
Other | 822 | 661 | 686 | 1,012 | 1,022 | 1,002 | 1,043 | 1,051 | ||||||||||||||||||||||||
Total cost of revenue | 7,513 | 8,017 | 8,035 | 7,871 | 9,131 | 8,813 | 10,571 | 8,000 | ||||||||||||||||||||||||
Service, rental and maintenance | ||||||||||||||||||||||||||||||||
Payroll and related | 5,125 | 5,072 | 4,815 | 4,613 | 4,555 | 4,652 | 4,533 | 4,106 | ||||||||||||||||||||||||
Site rent | 3,668 | 3,660 | 3,663 | 3,763 | 3,783 | 3,766 | 3,834 | 3,914 | ||||||||||||||||||||||||
Telecommunications | 1,127 | 1,222 | 1,218 | 1,392 | 1,288 | 1,343 | 1,487 | 1,548 | ||||||||||||||||||||||||
Stock based compensation | 63 | 52 | 29 | 29 | 29 | 29 | 30 | 56 | ||||||||||||||||||||||||
Other | 1,416 | 1,207 | 1,299 | 1,320 | 1,348 | 1,466 | 1,401 | 1,364 | ||||||||||||||||||||||||
Total service, rental and maintenance | 11,399 | 11,213 | 11,024 | 11,117 | 11,003 | 11,256 | 11,285 | 10,988 | ||||||||||||||||||||||||
Selling and marketing | ||||||||||||||||||||||||||||||||
Payroll and related | 3,510 | 3,666 | 3,780 | 3,664 | 3,732 | 3,916 | 3,945 | 3,859 | ||||||||||||||||||||||||
Commissions | 1,559 | 1,525 | 1,754 | 1,858 | 1,792 | 1,836 | 2,481 | 1,949 | ||||||||||||||||||||||||
Stock based compensation | 75 | 48 | (7 | ) | 16 | 51 | 51 | 131 | 151 | |||||||||||||||||||||||
Other | 1,285 | 1,290 | 1,509 | 1,034 | 1,215 | 1,245 | 1,358 | 1,113 | ||||||||||||||||||||||||
Total selling and marketing | 6,429 | 6,529 | 7,036 | 6,572 | 6,790 | 7,048 | 7,915 | 7,072 | ||||||||||||||||||||||||
General and administrative | ||||||||||||||||||||||||||||||||
Payroll and related | 4,306 | 4,392 | 4,029 | 4,320 | 4,611 | 4,879 | 4,737 | 4,217 | ||||||||||||||||||||||||
Stock based compensation | 534 | 488 | 316 | 316 | 548 | 329 | 780 | 791 | ||||||||||||||||||||||||
Facility rent | 810 | 839 | 856 | 868 | 841 | 941 | 830 | 863 | ||||||||||||||||||||||||
Outside services | 1,921 | 1,726 | 1,783 | 1,864 | 1,728 | 1,786 | 1,786 | 1,698 | ||||||||||||||||||||||||
Taxes, licenses and permits | 1,060 | 1,055 | 1,132 | 1,068 | 1,150 | 1,125 | 1,283 | 1,788 | ||||||||||||||||||||||||
Other | 1,808 | 2,010 | 2,160 | 1,974 | 1,594 | 1,941 | 2,489 | 1,509 | ||||||||||||||||||||||||
Total general and administrative | 10,439 | 10,510 | 10,276 | 10,410 | 10,472 | 11,001 | 11,905 | 10,866 | ||||||||||||||||||||||||
Severance | — | (4 | ) | 1,056 | 141 | 1,504 | — | 926 | 545 | |||||||||||||||||||||||
Depreciation, amortization and accretion | 3,235 | 3,323 | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | ||||||||||||||||||||||||
Operating expenses | $ | 39,015 | $ | 39,588 | $ | 40,789 | $ | 39,524 | $ | 42,348 | $ | 41,865 | $ | 46,651 | $ | 41,718 | ||||||||||||||||
Capital expenditures | $ | 1,537 | $ | 1,445 | $ | 2,024 | $ | 1,318 | $ | 1,992 | $ | 1,040 | $ | 1,352 | $ | 1,291 | ||||||||||||||||
(a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||
SPŌK HOLDINGS, INC. |
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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) | 1,153 | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | ||||||||||||||||||||||||
Gross placements | 39 | 28 | 31 | 36 | 40 | 29 | 35 | 45 | ||||||||||||||||||||||||
Gross disconnects | (48 | ) | (48 | ) | (50 | ) | (55 | ) | (59 | ) | (55 | ) | (53 | ) | (70 | ) | ||||||||||||||||
Net change | (9 | ) | (20 | ) | (19 | ) | (19 | ) | (19 | ) | (26 | ) | (18 | ) | (25 | ) | ||||||||||||||||
Ending units in service | 1,144 | 1,153 | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | ||||||||||||||||||||||||
End of period units in service % of total (b) | ||||||||||||||||||||||||||||||||
Healthcare | 78.2 | % | 77.5 | % | 77.0 | % | 76.3 | % | 75.9 | % | 74.6 | % | 74.1 | % | 73.6 | % | ||||||||||||||||
Government | 6.8 | % | 6.9 | % | 7.2 | % | 7.2 | % | 7.3 | % | 7.6 | % | 7.8 | % | 7.9 | % | ||||||||||||||||
Large enterprise | 6.6 | % | 6.9 | % | 6.9 | % | 7.1 | % | 7.3 | % | 7.6 | % | 7.6 | % | 7.8 | % | ||||||||||||||||
Other(b) | 8.3 | % | 8.7 | % | 9.0 | % | 9.3 | % | 9.5 | % | 10.2 | % | 10.4 | % | 10.7 | % | ||||||||||||||||
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 | 114 | 118 | 123 | 128 | 134 | 139 | 145 | 152 | ||||||||||||||||||||||||
101 to 1,000 units | 228 | 238 | 243 | 250 | 256 | 266 | 277 | 282 | ||||||||||||||||||||||||
>1,000 units | 802 | 797 | 807 | 814 | 821 | 825 | 834 | 840 | ||||||||||||||||||||||||
Total | 1,144 | 1,153 | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | ||||||||||||||||||||||||
Account size net loss rate(c) | ||||||||||||||||||||||||||||||||
1 to 100 units | (4.0 | )% | (4.3 | )% | (3.9 | )% | (4.4 | )% | (3.4 | )% | (4.3 | )% | (4.7 | )% | (5.0 | )% | ||||||||||||||||
101 to 1,000 units | (4.0 | )% | (2.0 | )% | (2.9 | )% | (2.4 | )% | (3.8 | )% | (3.8 | )% | (1.9 | )% | (2.4 | )% | ||||||||||||||||
>1,000 units | 0.6 | % | (1.2 | )% | (0.9 | )% | (0.8 | )% | (0.6 | )% | (1.1 | )% | (0.7 | )% | (1.2 | )% | ||||||||||||||||
Total | (0.8 | )% | (1.7 | )% | (1.6 | )% | (1.5 | )% | (1.6 | )% | (2.1 | )% | (1.4 | )% | (1.9 | )% | ||||||||||||||||
Account size ARPU | ||||||||||||||||||||||||||||||||
1 to 100 units | $ | 12.48 | $ | 12.57 | $ | 12.52 | $ | 12.49 | $ | 12.57 | $ | 12.58 | $ | 12.50 | $ | 12.54 | ||||||||||||||||
101 to 1,000 units | 8.65 | 8.70 | 8.65 | 8.69 | 8.72 | 8.74 | 8.76 | 8.76 | ||||||||||||||||||||||||
>1,000 units | 6.75 | 6.77 | 6.79 | 6.80 | 6.81 | 6.84 | 6.83 | 6.86 | ||||||||||||||||||||||||
Total | $ | 7.71 | $ | 7.77 | $ | 7.79 | $ | 7.82 | $ | 7.86 | $ | 7.91 | $ | 7.92 | $ | 7.97 | ||||||||||||||||
(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/20160727006134/en/
Al.Galgano@spok.com
Source: