Spok Reports Fourth Quarter and 2015 Operating Results; Software Revenue and Bookings Increase from Prior Quarter
Feb 24, 2016 4:30 PM
Wireless Trends Continue to Improve;
Board Declares Regular Quarterly Dividend
In the 2015 fourth quarter, consolidated revenue was
Fourth quarter EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled
Net income for the fourth quarter of 2015 was
For the full-year 2015, consolidated revenue was
EBITDA for 2015 was
Net income for 2015 was
Other key results and highlights for the fourth quarter and 2015 included:
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Software bookings for the fourth quarter increased to
$18.5 million , from$16.7 million in the prior quarter. Fourth quarter bookings included$10.0 million of operations bookings and$8.5 million of maintenance renewals. For 2015, bookings totaled$74.0 million , compared to$78.5 million in 2014. Maintenance bookings for 2015 totaled$35.4 million . -
Software backlog totaled
$38.7 million atDecember 31, 2015 , compared to$41.6 million atSeptember 30, 2015 , and$42.4 million at year-end 2014. -
Of the
$18.6 million in software revenue for the fourth quarter,$9.6 million was operations revenue and$9.0 million was maintenance revenue, compared to$11.6 million and$8.0 million , respectively, of the$19.6 million in software revenue for the fourth quarter of 2014. - The renewal rate for software maintenance in the fourth quarter was 99.7 percent.
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The quarterly rate of paging unit erosion was 1.6 percent in the
fourth quarter of 2015, compared to 1.4 percent in the year-earlier
quarter. The annual rate of unit erosion improved to 6.6 percent in
2015 versus 8.7 percent in the prior year. Net paging unit losses were
19,000 in the fourth quarter of 2015, versus 18,000 in the fourth
quarter of 2014. Paging units in service at
December 31, 2015 totaled 1,173,000, compared to 1,256,000 at the end of the prior year. - The quarterly rate of wireless revenue erosion slowed to 2.2 percent in the fourth quarter of 2015 versus 3.6 percent in the year-earlier quarter, while the annual rate of wireless revenue erosion slowed to 10.1 percent versus 11.6 percent in 2014.
-
Total paging ARPU (average revenue per unit) was
$7.79 in the fourth quarter of 2015, compared to$7.92 in the year-earlier quarter and$7.82 in the prior quarter. For the year, ARPU totaled$7.90 , compared to$7.93 in 2014. -
Consolidated operating expenses (excluding depreciation, amortization
and accretion) totaled
$37.4 million in the fourth quarter of 2015, compared to$42.6 million in the year-earlier quarter. For 2015, operating expenses totaled$150.6 million , compared to$155.4 million in 2014. -
Capital expenses were
$2.0 million in the fourth quarter of 2015, compared to$1.4 million in the year-earlier quarter. For 2015, capital expenses totaled$6.4 million , compared to$7.7 million in 2014. -
The number of full-time equivalent employees at
December 31, 2015 totaled 600, compared to 587 at year-end 2014. -
Capital returned to stockholders in 2015 totaled
$28.3 million . This came in the form of$13.3 million from dividends and$15.0 million from share repurchases. -
The Company’s cash balance at
December 31, 2015 grew to$111.3 million , from$107.9 million atDecember 31, 2014 .
“We are encouraged with our performance in the fourth quarter of 2015
and for the full year”, said
Commenting on software results, Kelly said: “Fourth quarter 2015 total
software revenue increased nearly 11 percent from the prior quarter, and
for the full year increased more than 4 percent from 2014.” Kelly
attributed higher fourth quarter and full year software revenue
primarily to a continuing trend of a more than 99 percent renewal rate
on software maintenance contracts. Maintenance revenue is a largely
recurring revenue stream that provides
Fourth quarter 2015 software bookings of
Continued Kelly, “We are focused on investments to grow our software
solutions business, while maintaining our valuable wireless revenue
stream. In 2015 we took steps to strengthen our leadership team, as
The Company posted solid results for its wireless products and services in the fourth quarter. Gross pager placements totaled 31,000 versus 35,000 in the year-earlier quarter, while gross disconnects of 50,000 improved from 53,000 in the fourth quarter of 2014. “As a result, annual net pager losses declined to a near historical low of 6.6 percent from the prior year-end and were down 1.6 percent for the fourth quarter, in line with prior-year results,” continued Kelly. “Overall, wireless sales efforts continued to focus primarily on our core market segments of Healthcare, Government and Large Enterprise, which represented approximately 94.3 percent of our direct subscriber base and 91.1 percent of our direct paging revenue at year end. Healthcare comprised 79.7 percent of our direct subscriber base, and continued to be our best performing market segment with the highest rate of gross placements and lowest rate of unit disconnects.”
Kelly noted that in addition to the financial performance the Company
was able to achieve in 2015, 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,” commented Kelly. “We are generating tremendous attention
and high approval ratings at the conferences we attend. Last year’s
Commenting on the Company’s previously provided financial guidance for
2015, Endsley noted: “We are pleased that 2015 results were consistent
with our guidance. For the year, total revenue of
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 | For the twelve months ended | |||||||||||||||||||
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Revenue: | ||||||||||||||||||||
Wireless | $ | 28,727 | $ | 31,678 | $ | 119,014 | $ | 132,402 | ||||||||||||
Software | 18,612 | 19,591 | 70,614 | 67,871 | ||||||||||||||||
Total revenue | 47,339 | 51,269 | 189,628 | 200,273 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of revenue | 8,035 | 10,571 | 33,851 | 32,556 | ||||||||||||||||
Service, rental and maintenance | 11,024 | 11,285 | 44,401 | 45,485 | ||||||||||||||||
Selling and marketing | 7,036 | 7,915 | 27,446 | 30,013 | ||||||||||||||||
General and administrative | 10,276 | 11,905 | 42,159 | 45,896 | ||||||||||||||||
Severance and restructuring | 1,056 | 926 | 2,701 | 1,495 | ||||||||||||||||
Depreciation, amortization and accretion | 3,362 | 4,049 | 13,970 | 16,677 | ||||||||||||||||
Total operating expenses | 40,789 | 46,651 | 164,528 | 172,122 | ||||||||||||||||
% of total revenue | 86.2 | % | 91.0 | % | 86.8 | % | 85.9 | % | ||||||||||||
Operating income | 6,550 | 4,618 | 25,100 | 28,151 | ||||||||||||||||
% of total revenue | 13.8 | % | 9.0 | % | 13.2 | % | 14.1 | % | ||||||||||||
Interest income (expense), net | 13 | (262 | ) | 16 | (456 | ) | ||||||||||||||
Other income (expense), net | 71 | (188 | ) | 1,182 | (368 | ) | ||||||||||||||
Income before income tax expense | 6,634 | 4,168 | 26,298 | 27,327 | ||||||||||||||||
Income tax benefit (expense) | 66,087 | 2,744 | 57,937 | (6,582 | ) | |||||||||||||||
Net income | $ | 72,721 | $ | 6,912 | $ | 84,235 | $ | 20,745 | ||||||||||||
Basic net income per common share | $ | 3.54 | $ | 0.32 | $ | 3.99 | $ | 0.96 | ||||||||||||
Diluted net income per common share | $ | 3.53 | $ | 0.31 | $ | 3.98 | $ | 0.94 | ||||||||||||
Basic weighted average common shares outstanding | 20,528,326 | 21,554,746 | 21,120,268 | 21,621,466 | ||||||||||||||||
Diluted weighted average common shares outstanding | 20,628,053 | 22,101,600 | 21,186,750 | 22,090,770 | ||||||||||||||||
Reconciliation of operating income to EBITDA (b): | ||||||||||||||||||||
Operating income | $ | 6,550 | $ | 4,618 | $ | 25,100 | $ | 28,151 | ||||||||||||
Add back: depreciation, amortization and accretion | 3,362 | 4,049 | 13,970 | 16,677 | ||||||||||||||||
EBITDA | $ | 9,912 | $ | 8,667 | $ | 39,070 | $ | 44,828 | ||||||||||||
% of total revenue | 20.9 | % | 16.9 | % | 20.6 | % | 22.4 | % | ||||||||||||
Key statistics: | ||||||||||||||||||||
Units in service | 1,173 | 1,256 | 1,173 | 1,256 | ||||||||||||||||
Average revenue per unit (ARPU) | $ | 7.79 | $ | 7.92 | $ | 7.90 | $ | 7.93 | ||||||||||||
Bookings | $ | 18,511 | $ | 22,272 | $ | 74,024 | $ | 78,514 | ||||||||||||
Backlog | $ | 38,650 | $ | 42,391 | $ | 38,650 | $ | 42,391 | ||||||||||||
(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 | $ | 28,727 | $ | 29,375 | $ | 30,222 | $ | 30,690 | $ | 31,678 | $ | 32,855 | $ | 33,518 | $ | 34,351 | ||||||||||||||||||||||||
Software | 18,612 | 16,806 | 17,747 | 17,448 | 19,591 | 16,936 | 15,576 | 15,768 | ||||||||||||||||||||||||||||||||
Total revenue | 47,339 | 46,181 | 47,969 | 48,138 | 51,269 | 49,791 | 49,094 | 50,119 | ||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||
Cost of revenue | 8,036 | 7,871 | 9,131 | 8,813 | 10,571 | 8,000 | 7,180 | 6,805 | ||||||||||||||||||||||||||||||||
Service, rental and maintenance | 11,024 | 11,117 | 11,003 | 11,256 | 11,285 | 10,988 | 11,420 | 11,792 | ||||||||||||||||||||||||||||||||
Selling and marketing | 7,036 | 6,572 | 6,790 | 7,048 | 7,915 | 7,072 | 7,780 | 7,246 | ||||||||||||||||||||||||||||||||
General and administrative | 10,276 | 10,410 | 10,472 | 11,001 | 11,905 | 10,866 | 10,990 | 12,135 | ||||||||||||||||||||||||||||||||
Severance and restructuring | 1,056 | 141 | 1,504 | — | 926 | 545 | 4 | 20 | ||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | 4,029 | ||||||||||||||||||||||||||||||||
Total operating expenses | 40,790 | 39,524 | 42,348 | 41,865 | 46,651 | 41,718 | 41,726 | 42,027 | ||||||||||||||||||||||||||||||||
% of total revenue | 86.2 | % | 85.6 | % | 88.3 | % | 87.0 | % | 91.0 | % | 83.8 | % | 85.0 | % | 83.9 | % | ||||||||||||||||||||||||
Operating income | 6,549 | 6,657 | 5,621 | 6,273 | 4,618 | 8,073 | 7,368 | 8,092 | ||||||||||||||||||||||||||||||||
% of total revenue | 13.8 | % | 14.4 | % | 11.7 | % | 13.0 | % | 9.0 | % | 16.2 | % | 15.0 | % | 16.1 | % | ||||||||||||||||||||||||
Interest income (expense), net | 13 | 1 | 3 | (1 | ) | (262 | ) | (63 | ) | (64 | ) | (67 | ) | |||||||||||||||||||||||||||
Other income (expense), net | 71 | 784 | 264 | 60 | (188 | ) | (2 | ) | (194 | ) | 16 | |||||||||||||||||||||||||||||
Income before income tax expense | 6,633 | 7,442 | 5,888 | 6,332 | 4,168 | 8,008 | 7,110 | 8,041 | ||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 66,087 | (3,222 | ) | (2,512 | ) | (2,415 | ) | 2,744 | (3,356 | ) | (2,819 | ) | (3,151 | ) | ||||||||||||||||||||||||||
Net income | $ | 72,720 | $ | 4,220 | $ | 3,376 | $ | 3,917 | $ | 6,912 | $ | 4,652 | $ | 4,291 | $ | 4,890 | ||||||||||||||||||||||||
Basic net income per common share | $ | 3.54 | $ | 0.20 | $ | 0.16 | $ | 0.18 | $ | 0.32 | $ | 0.21 | $ | 0.20 | $ | 0.23 | ||||||||||||||||||||||||
Diluted net income per common share | $ | 3.53 | $ | 0.20 | $ | 0.16 | $ | 0.18 | $ | 0.31 | $ | 0.21 | $ | 0.19 | $ | 0.22 | ||||||||||||||||||||||||
Basic weighted average common shares outstanding | 20,528,326 | 21,301,311 | 21,677,299 | 21,898,792 | 21,554,746 | 21,651,347 | 21,642,163 | 21,638,198 | ||||||||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 20,628,053 | 21,352,838 | 21,735,829 | 22,053,015 | 22,101,600 | 22,135,554 | 22,099,791 | 22,037,796 | ||||||||||||||||||||||||||||||||
Reconciliation of operating income to EBITDA (b): | ||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 6,549 | $ | 6,657 | $ | 5,621 | $ | 6,273 | $ | 4,618 | $ | 8,073 | $ | 7,368 | $ | 8,092 | ||||||||||||||||||||||||
Add back: depreciation, amortization and accretion | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | 4,029 | ||||||||||||||||||||||||||||||||
EBITDA | $ | 9,911 | $ | 10,070 | $ | 9,069 | $ | 10,020 | $ | 8,667 | $ | 12,320 | $ | 11,720 | $ | 12,121 | ||||||||||||||||||||||||
% of total revenue | 20.9 | % | 21.8 | % | 18.9 | % | 20.8 | % | 16.9 | % | 24.7 | % | 23.9 | % | 24.2 | % | ||||||||||||||||||||||||
Key statistics: | ||||||||||||||||||||||||||||||||||||||||
Units in service | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | 1,327 | ||||||||||||||||||||||||||||||||
Average revenue per unit (ARPU) | $ | 7.79 | $ | 7.82 | $ | 7.86 | $ | 7.91 | $ | 7.92 | $ | 7.97 | $ | 7.98 | $ | 8.11 | ||||||||||||||||||||||||
Bookings | $ | 18,511 | $ | 16,746 | $ | 21,027 | $ | 17,740 | $ | 22,272 | $ | 20,362 | $ | 18,959 | $ | 16,921 | ||||||||||||||||||||||||
Backlog | $ | 38,650 | $ | 41,639 | $ | 43,524 | $ | 40,551 | $ | 42,391 | $ | 42,117 | $ | 40,182 | $ | 41,396 | ||||||||||||||||||||||||
(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 | $ | 111,332 | $ | 107,869 | ||||
Accounts receivable, net | 22,638 | 24,969 | ||||||
Prepaid expenses and other | 5,352 | 7,250 | ||||||
Inventory | 2,291 | 2,673 | ||||||
Total current assets | 141,613 | 142,761 | ||||||
Property and equipment, net | 15,386 | 17,395 | ||||||
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133,031 | 133,031 | ||||||
Other intangible assets, net | 14,964 | 19,698 | ||||||
Deferred income tax assets, net | 83,983 | 24,143 | ||||||
Other assets | 1,445 | 862 | ||||||
Total assets | $ | 390,422 | $ | 337,890 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 9,247 | $ | 11,688 | ||||
Accrued compensation and benefits | 10,864 | 14,041 | ||||||
Deferred revenue | 27,045 | 24,034 | ||||||
Total current liabilities | 47,156 | 49,763 | ||||||
Deferred revenue | 741 | 937 | ||||||
Other long-term liabilities | 8,972 | 8,131 | ||||||
Total liabilities | 56,869 | 58,831 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 2 | 2 | ||||||
Additional paid-in capital | 110,435 | 126,678 | ||||||
Retained earnings | 223,116 | 152,379 | ||||||
Total stockholders' equity | 333,553 | 279,059 | ||||||
Total liabilities and stockholders' equity | $ | 390,422 | $ | 337,890 | ||||
(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 twelve months ended | ||||||||||
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Cash flows from operating activities: | ||||||||||
Net income | $ | 84,235 | $ | 20,745 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation, amortization and accretion | 13,970 | 16,677 | ||||||||
Amortization of deferred financing costs | - | 456 | ||||||||
Deferred income (benefit) tax expense | (59,007 | ) | 4,740 | |||||||
Stock based compensation | 1,868 | 3,838 | ||||||||
Provisions for doubtful accounts, service credits and other | 1,290 | 1,128 | ||||||||
Adjustments of non-cash transaction taxes | (686 | ) | (310 | ) | ||||||
Loss/(Gain) on disposals of property and equipment | (793 | ) | 3 | |||||||
Changes in assets and liabilities: | ||||||||||
Accounts receivable | 1,041 | (8,013 | ) | |||||||
Prepaid expenses, intangible assets and other assets | 658 | 17 | ||||||||
Accounts payable, accrued liabilities and other | (7,381 | ) | 1,192 | |||||||
Customer deposits and deferred revenue | 2,817 | 1,086 | ||||||||
Other long-term liabilities | - | - | ||||||||
Net cash provided by operating activities | 38,012 | 41,559 | ||||||||
Cash flows from investing activities: | ||||||||||
Purchases of property and equipment | (6,374 | ) | (7,679 | ) | ||||||
Proceeds from disposals of property and equipment | 809 | 65 | ||||||||
Net cash used in investing activities | (5,565 | ) | (7,614 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Cash distributions to stockholders | (13,976 | ) | (10,826 | ) | ||||||
Purchase of common stock (including commissions) | (15,008 | ) | (4,325 | ) | ||||||
Net cash used in financing activities | (28,984 | ) | (15,151 | ) | ||||||
Net increase in cash and cash equivalents | 3,463 | 18,794 | ||||||||
Cash and cash equivalents, beginning of period | 107,869 | 89,075 | ||||||||
Cash and cash equivalents, end of period | $ | 111,332 | $ | 107,869 | ||||||
Supplemental disclosure: | ||||||||||
Interest paid | $ | 3 | $ | 8 | ||||||
Income taxes paid | $ | 1,521 | $ | 1,448 | ||||||
(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 | $ | 27,637 | $ | 28,196 | $ | 28,782 | $ | 29,491 | $ | 30,071 | $ | 30,776 | $ | 31,458 | $ | 32,896 | ||||||||||||||||
Non-paging | 1,090 | 1,179 | 1,440 | 1,199 | 1,607 | 2,079 | 2,060 | 1,455 | ||||||||||||||||||||||||
Total wireless revenue | 28,727 | 29,375 | 30,222 | 30,690 | 31,678 | 32,855 | 33,518 | 34,351 | ||||||||||||||||||||||||
Subscription | 471 | 392 | 419 | 398 | 365 | 458 | 377 | 283 | ||||||||||||||||||||||||
License | 2,733 | 1,457 | 3,011 | 2,595 | 3,474 | 2,374 | 2,497 | 2,929 | ||||||||||||||||||||||||
Services | 4,610 | 4,600 | 4,609 | 5,018 | 5,579 | 4,305 | 3,558 | 3,930 | ||||||||||||||||||||||||
Equipment | 1,764 | 1,434 | 1,301 | 1,374 | 2,145 | 1,930 | 1,614 | 1,250 | ||||||||||||||||||||||||
Operations revenue | 9,578 | 7,883 | 9,340 | 9,385 | 11,563 | 9,067 | 8,046 | 8,392 | ||||||||||||||||||||||||
Maintenance revenue | 9,034 | 8,923 | 8,407 | 8,063 | 8,028 | 7,869 | 7,530 | 7,376 | ||||||||||||||||||||||||
Total software revenue | 18,612 | 16,806 | 17,747 | 17,448 | 19,591 | 16,936 | 15,576 | 15,768 | ||||||||||||||||||||||||
Total revenue | $ | 47,339 | $ | 46,181 | $ | 47,969 | $ | 48,138 | $ | 51,269 | $ | 49,791 | $ | 49,094 | $ | 50,119 | ||||||||||||||||
(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 | $ | 4,414 | $ | 4,277 | $ | 4,274 | $ | 4,157 | $ | 4,222 | $ | 3,743 | $ | 3,827 | $ | 3,959 | ||||||||||||||||||
Cost of sales | 2,902 | 2,549 | 3,801 | 3,620 | 5,225 | 3,098 | 2,232 | 1,917 | ||||||||||||||||||||||||||
Stock based compensation | 33 | 33 | 34 | 34 | 81 | 108 | 81 | 81 | ||||||||||||||||||||||||||
Other | 686 | 1,012 | 1,022 | 1,002 | 1,043 | 1,051 | 1,040 | 848 | ||||||||||||||||||||||||||
Total cost of revenue | 8,035 | 7,871 | 9,131 | 8,813 | 10,571 | 8,000 | 7,180 | 6,805 | ||||||||||||||||||||||||||
Service, rental and maintenance | ||||||||||||||||||||||||||||||||||
Site rent | 3,663 | 3,763 | 3,783 | 3,766 | 3,834 | 3,914 | 3,981 | 4,015 | ||||||||||||||||||||||||||
Telecommunications | 1,218 | 1,392 | 1,288 | 1,343 | 1,487 | 1,548 | 1,669 | 1,736 | ||||||||||||||||||||||||||
Payroll and related | 4,815 | 4,613 | 4,555 | 4,652 | 4,533 | 4,106 | 4,434 | 4,594 | ||||||||||||||||||||||||||
Stock based compensation | 29 | 29 | 29 | 29 | 30 | 56 | (17 | ) | 39 | |||||||||||||||||||||||||
Repairs and maintenance | 450 | 395 | 478 | 528 | 467 | 489 | 436 | 508 | ||||||||||||||||||||||||||
Other | 849 | 925 | 870 | 938 | 934 | 875 | 917 | 900 | ||||||||||||||||||||||||||
Total service, rental and maintenance | 11,024 | 11,117 | 11,003 | 11,256 | 11,285 | 10,988 | 11,420 | 11,792 | ||||||||||||||||||||||||||
Selling and marketing | ||||||||||||||||||||||||||||||||||
Payroll and related | 3,780 | 3,664 | 3,732 | 3,916 | 3,945 | 3,859 | 4,099 | 4,098 | ||||||||||||||||||||||||||
Commissions | 1,754 | 1,858 | 1,792 | 1,836 | 2,481 | 1,949 | 2,087 | 1,952 | ||||||||||||||||||||||||||
Stock based compensation | (7 | ) | 16 | 51 | 51 | 131 | 151 | 131 | 131 | |||||||||||||||||||||||||
Other | 1,509 | 1,034 | 1,215 | 1,245 | 1,358 | 1,113 | 1,463 | 1,065 | ||||||||||||||||||||||||||
Total selling and marketing | 7,036 | 6,572 | 6,790 | 7,048 | 7,915 | 7,072 | 7,780 | 7,246 | ||||||||||||||||||||||||||
General and administrative | ||||||||||||||||||||||||||||||||||
Payroll and related | 4,029 | 4,320 | 4,611 | 4,879 | 4,737 | 4,217 | 4,440 | 4,796 | ||||||||||||||||||||||||||
Stock based compensation | 316 | 316 | 548 | 329 | 780 | 791 | 429 | 835 | ||||||||||||||||||||||||||
Bad debt | 104 | 113 | 140 | 160 | 127 | 136 | 134 | 86 | ||||||||||||||||||||||||||
Facility rent | 856 | 868 | 841 | 941 | 830 | 863 | 899 | 922 | ||||||||||||||||||||||||||
Telecommunications | 331 | 370 | 374 | 333 | 381 | 427 | 399 | 395 | ||||||||||||||||||||||||||
Outside services | 1,783 | 1,864 | 1,728 | 1,786 | 1,786 | 1,698 | 1,719 | 1,762 | ||||||||||||||||||||||||||
Taxes, licenses and permits | 1,132 | 1,068 | 1,150 | 1,125 | 1,283 | 1,225 | 1,383 | 1,064 | ||||||||||||||||||||||||||
Repairs and maintenance | 347 | 389 | 363 | 406 | 506 | 510 | 421 | 374 | ||||||||||||||||||||||||||
Financial Services | 378 | 378 | 367 | 362 | 346 | 336 | 379 | 363 | ||||||||||||||||||||||||||
Other | 1,000 | 724 | 350 | 680 | 1,129 | 663 | 787 | 1,538 | ||||||||||||||||||||||||||
Total general and administrative | 10,276 | 10,410 | 10,472 | 11,001 | 11,905 | 10,866 | 10,990 | 12,135 | ||||||||||||||||||||||||||
Severance and restructuring | 1,056 | 141 | 1,504 | — | 926 | 545 | 4 | 20 | ||||||||||||||||||||||||||
Depreciation, amortization and accretion | 3,362 | 3,413 | 3,448 | 3,747 | 4,049 | 4,247 | 4,352 | 4,029 | ||||||||||||||||||||||||||
Operating expenses | $ | 40,789 | $ | 39,524 | $ | 42,348 | $ | 41,865 | $ | 46,651 | $ | 41,718 | $ | 41,726 | $ | 42,027 | ||||||||||||||||||
Capital expenditures | $ | 2,024 | $ | 1,318 | $ | 1,992 | $ | 1,040 | $ | 1,352 | $ | 1,291 | $ | 2,393 | $ | 2,643 | ||||||||||||||||||
(a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||||
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UNITS IN SERVICE ACTIVITY (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 | ||||||||||||||||||||||||||||||||
Direct one-way | 1,086 | 1,103 | 1,116 | 1,140 | 1,157 | 1,179 | 1,200 | 1,246 | ||||||||||||||||||||||||
Direct two-way | 62 | 64 | 64 | 64 | 63 | 64 | 69 | 69 | ||||||||||||||||||||||||
Total direct | 1,148 | 1,167 | 1,180 | 1,204 | 1,220 | 1,243 | 1,269 | 1,315 | ||||||||||||||||||||||||
Indirect one-way | 24 | 24 | 25 | 26 | 28 | 29 | 30 | 34 | ||||||||||||||||||||||||
Indirect two-way | 20 | 20 | 25 | 26 | 26 | 27 | 28 | 27 | ||||||||||||||||||||||||
Total indirect | 44 | 44 | 50 | 52 | 54 | 56 | 58 | 61 | ||||||||||||||||||||||||
Total beginning units in service | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | 1,327 | 1,376 | ||||||||||||||||||||||||
Gross placements | ||||||||||||||||||||||||||||||||
Direct one-way | 27 | 32 | 36 | 25 | 31 | 40 | 48 | 34 | ||||||||||||||||||||||||
Direct two-way | 3 | 3 | 4 | 3 | 3 | 4 | 2 | 4 | ||||||||||||||||||||||||
Total direct | 30 | 35 | 40 | 28 | 34 | 44 | 50 | 38 | ||||||||||||||||||||||||
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 | 31 | 36 | 40 | 29 | 35 | 45 | 51 | 39 | ||||||||||||||||||||||||
Gross disconnects | ||||||||||||||||||||||||||||||||
Direct one-way | (42 | ) | (48 | ) | (50 | ) | (49 | ) | (47 | ) | (62 | ) | (69 | ) | (80 | ) | ||||||||||||||||
Direct two-way | (4 | ) | (5 | ) | (3 | ) | (3 | ) | (3 | ) | (5 | ) | (7 | ) | (4 | ) | ||||||||||||||||
Total direct | (46 | ) | (53 | ) | (53 | ) | (52 | ) | (50 | ) | (67 | ) | (76 | ) | (84 | ) | ||||||||||||||||
Indirect one-way | (1 | ) | (1 | ) | (1 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (4 | ) | ||||||||||||||||
Indirect two-way | (3 | ) | (1 | ) | (5 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | — | |||||||||||||||||
Total indirect | (4 | ) | (2 | ) | (6 | ) | (3 | ) | (3 | ) | (3 | ) | (3 | ) | (4 | ) | ||||||||||||||||
Total gross disconnects | (50 | ) | (55 | ) | (59 | ) | (55 | ) | (53 | ) | (70 | ) | (79 | ) | (88 | ) | ||||||||||||||||
Net loss | ||||||||||||||||||||||||||||||||
Direct one-way | (14 | ) | (16 | ) | (13 | ) | (24 | ) | (16 | ) | (22 | ) | (21 | ) | (46 | ) | ||||||||||||||||
Direct two-way | (1 | ) | (2 | ) | — | — | — | (1 | ) | (5 | ) | — | ||||||||||||||||||||
Total direct | (15 | ) | (18 | ) | (13 | ) | (24 | ) | (16 | ) | (23 | ) | (26 | ) | (46 | ) | ||||||||||||||||
Indirect one-way | (1 | ) | — | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (4 | ) | |||||||||||||||||
Indirect two-way | (3 | ) | (1 | ) | (5 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | 1 | |||||||||||||||||
Total indirect | (4 | ) | (1 | ) | (6 | ) | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (3 | ) | ||||||||||||||||
Total net change | (19 | ) | (19 | ) | (19 | ) | (26 | ) | (18 | ) | (25 | ) | (28 | ) | (49 | ) | ||||||||||||||||
Ending units in service | ||||||||||||||||||||||||||||||||
Direct one-way | 1,072 | 1,087 | 1,103 | 1,116 | 1,141 | 1,157 | 1,179 | 1,200 | ||||||||||||||||||||||||
Direct two-way | 61 | 62 | 64 | 64 | 63 | 63 | 64 | 69 | ||||||||||||||||||||||||
Total direct | 1,133 | 1,149 | 1,167 | 1,180 | 1,204 | 1,220 | 1,243 | 1,269 | ||||||||||||||||||||||||
Indirect one-way | 23 | 24 | 24 | 25 | 27 | 28 | 29 | 30 | ||||||||||||||||||||||||
Indirect two-way | 17 | 19 | 20 | 25 | 25 | 26 | 27 | 28 | ||||||||||||||||||||||||
Total indirect | 40 | 43 | 44 | 50 | 52 | 54 | 56 | 58 | ||||||||||||||||||||||||
Total ending units in service | 1,173 | 1,192 | 1,211 | 1,230 | 1,256 | 1,274 | 1,299 | 1,327 | ||||||||||||||||||||||||
(a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||
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AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a) | ||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||||||||||||||
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Paging ARPU |
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Direct one-way | $ | 7.36 | $ | 7.37 | $ | 7.41 | $ | 7.45 | $ | 7.45 | $ | 7.48 | $ | 7.48 | $ | 7.59 | ||||||||||||||||||||||||
Direct two-way | 16.35 | 16.84 | 17.16 | 17.69 | 17.95 | 18.17 | 18.21 | 18.91 | ||||||||||||||||||||||||||||||||
Total direct | 7.85 | 7.88 | 7.93 | 7.99 | 8.00 | 8.05 | 8.06 | 8.19 | ||||||||||||||||||||||||||||||||
Indirect one-way | 7.83 | 8.02 | 8.11 | 8.08 | 8.13 | 8.24 | 8.18 | 8.22 | ||||||||||||||||||||||||||||||||
Indirect two-way | 4.29 | 4.07 | 4.09 | 3.93 | 4.06 | 4.31 | 4.45 | 4.32 | ||||||||||||||||||||||||||||||||
Total indirect | 6.27 | 6.21 | 6.19 | 6.01 | 6.12 | 6.32 | 6.39 | 6.37 | ||||||||||||||||||||||||||||||||
Total one-way | 7.37 | 7.39 | 7.42 | 7.46 | 7.46 | 7.50 | 7.50 | 7.60 | ||||||||||||||||||||||||||||||||
Total two-way | 13.57 | 13.72 | 13.69 | 13.72 | 13.87 | 14.10 | 14.22 | 14.70 | ||||||||||||||||||||||||||||||||
Total paging ARPU | $ | 7.79 | $ | 7.82 | $ | 7.86 | $ | 7.91 | $ | 7.92 | $ | 7.97 | $ | 7.98 | $ | 8.11 | ||||||||||||||||||||||||
Gross disconnect rate (b) |
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Direct one-way | (3.8 | )% | (4.4 | )% | (4.4 | )% | (4.3 | )% | (4.1 | )% | (5.5 | )% | (5.7 | )% | (6.4 | )% | ||||||||||||||||||||||||
Direct two-way | (6.0 | )% | (7.0 | )% | (5.9 | )% | (5.4 | )% | (4.5 | )% | (7.3 | )% | (10.5 | )% | (5.6 | )% | ||||||||||||||||||||||||
Total direct | (3.9 | )% | (4.5 | )% | (4.5 | )% | (4.4 | )% | (4.1 | )% | (5.4 | )% | (6.0 | )% | (6.4 | )% | ||||||||||||||||||||||||
Indirect one-way | (4.5 | )% | (4.7 | )% | (6.4 | )% | (6.7 | )% | (6.5 | )% | (6.4 | )% | (6.8 | )% | (8.2 | )% | ||||||||||||||||||||||||
Indirect two-way | (16.2 | )% | (2.2 | )% | (20.0 | )% | (4.4 | )% | (2.3 | )% | (1.9 | )% | (2.7 | )% | (2.3 | )% | ||||||||||||||||||||||||
Total indirect | (9.9 | )% | (3.6 | )% | (13.2 | )% | (5.5 | )% | (4.4 | )% | (4.2 | )% | (4.8 | )% | (5.5 | )% | ||||||||||||||||||||||||
Total one-way | (3.8 | )% | (4.4 | )% | (4.5 | )% | (4.4 | )% | (4.2 | )% | (5.3 | )% | (5.8 | )% | (6.5 | )% | ||||||||||||||||||||||||
Total two-way | (8.5 | )% | (5.8 | )% | (9.9 | )% | (5.1 | )% | (3.9 | )% | (5.7 | )% | (8.3 | )% | (4.7 | )% | ||||||||||||||||||||||||
Total paging gross disconnect rate | (4.2 | )% | (4.5 | )% | (4.9 | )% | (4.4 | )% | (4.1 | )% | (5.3 | )% | (5.9 | )% | (6.3 | )% | ||||||||||||||||||||||||
Net loss rate (c) |
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Direct one-way | (1.4 | )% | (1.4 | )% | (1.2 | )% | (2.1 | )% | (1.4 | )% | (1.8 | )% | (1.9 | )% | (3.7 | )% | ||||||||||||||||||||||||
Direct two-way | (0.9 | )% | (2.2 | )% | (0.2 | )% | (0.9 | )% | (0.1 | )% | (3.0 | )% | (4.5 | )% | (0.6 | )% | ||||||||||||||||||||||||
Total direct | (1.4 | )% | (1.5 | )% | (1.1 | )% | (2.0 | )% | (1.4 | )% | (1.9 | )% | (2.0 | )% | (3.5 | )% | ||||||||||||||||||||||||
Indirect one-way | (2.4 | )% | (2.4 | )% | (4.4 | )% | (4.0 | )% | (4.3 | )% | (4.1 | )% | (4.8 | )% | (6.3 | )% | ||||||||||||||||||||||||
Indirect two-way | (16.0 | )% | (1.7 | )% | (19.4 | )% | (3.6 | )% | (2.0 | )% | (1.5 | )% | (2.2 | )% | (1.9 | )% | ||||||||||||||||||||||||
Total indirect | (8.6 | )% | (2.1 | )% | (11.9 | )% | (3.8 | )% | (3.1 | )% | (2.8 | )% | (3.5 | )% | (4.2 | )% | ||||||||||||||||||||||||
Total one-way | (1.4 | )% | (1.5 | )% | (1.3 | )% | (2.1 | )% | (1.5 | )% | (1.9 | )% | (2.0 | )% | (3.7 | )% | ||||||||||||||||||||||||
Total two-way | (4.6 | )% | (2.1 | )% | (5.7 | )% | (1.7 | )% | (0.6 | )% | (2.5 | )% | (3.8 | )% | (1.0 | )% | ||||||||||||||||||||||||
Total paging net loss rate | (1.6 | )% | (1.5 | )% | (1.6 | )% | (2.1 | )% | (1.4 | )% | (1.9 | )% | (2.1 | )% | (3.5 | )% | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||||||||||
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SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||||||
12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | |||||||||||||||||||||||||
Gross placement rate (b) | ||||||||||||||||||||||||||||||||
Healthcare | 2.7 | % | 3.3 | % | 3.8 | % | 2.6 | % | 3.0 | % | 3.8 | % | 4.5 | % | 3.1 | % | ||||||||||||||||
Government | 2.1 | % | 1.4 | % | 1.9 | % | 1.0 | % | 1.2 | % | 1.5 | % | 2.6 | % | 1.9 | % | ||||||||||||||||
Large enterprise | 2.1 | % | 2.2 | % | 1.7 | % | 2.1 | % | 2.3 | % | 2.7 | % | 2.0 | % | 2.9 | % | ||||||||||||||||
Other | 2.1 | % | 2.4 | % | 1.8 | % | 1.6 | % | 2.1 | % | 4.3 | % | 2.2 | % | 2.1 | % | ||||||||||||||||
Total direct | 2.6 | % | 3.0 | % | 3.4 | % | 2.3 | % | 2.8 | % | 3.5 | % | 4.0 | % | 2.9 | % | ||||||||||||||||
Total indirect | 1.3 | % | 1.5 | % | 1.3 | % | 1.7 | % | 1.3 | % | 1.4 | % | 1.3 | % | 1.2 | % | ||||||||||||||||
Total | 2.5 | % | 3.0 | % | 3.3 | % | 2.3 | % | 2.7 | % | 3.4 | % | 3.9 | % | 2.8 | % | ||||||||||||||||
Gross disconnect rate (b) | ||||||||||||||||||||||||||||||||
Healthcare | (3.5 | )% | (4.3 | )% | (3.8 | )% | (3.9 | )% | (3.8 | )% | (5.1 | )% | (5.3 | )% | (6.5 | )% | ||||||||||||||||
Government | (4.8 | )% | (4.7 | )% | (7.0 | )% | (5.0 | )% | (4.7 | )% | (7.5 | )% | (7.6 | )% | (5.6 | )% | ||||||||||||||||
Large enterprise | (6.7 | )% | (5.0 | )% | (7.3 | )% | (5.7 | )% | (4.7 | )% | (4.8 | )% | (8.9 | )% | (5.4 | )% | ||||||||||||||||
Other | (5.3 | )% | (6.1 | )% | (7.0 | )% | (7.1 | )% | (6.4 | )% | (6.9 | )% | (7.7 | )% | (6.5 | )% | ||||||||||||||||
Total direct | (3.9 | )% | (4.5 | )% | (4.5 | )% | (4.3 | )% | (4.1 | )% | (5.4 | )% | (6.0 | )% | (6.4 | )% | ||||||||||||||||
Total indirect | (9.7 | )% | (3.6 | )% | (13.1 | )% | (5.5 | )% | (4.4 | )% | (4.2 | )% | (4.8 | )% | (5.5 | )% | ||||||||||||||||
Total | (4.1 | )% | (4.4 | )% | (4.9 | )% | (4.4 | )% | (4.1 | )% | (5.3 | )% | (5.9 | )% | (6.3 | )% | ||||||||||||||||
Net loss rate (b) | ||||||||||||||||||||||||||||||||
Healthcare | (0.8 | )% | (1.0 | )% | 0.1 | % | (1.3 | )% | (0.7 | )% | (1.3 | )% | (0.8 | )% | (3.5 | )% | ||||||||||||||||
Government | (2.7 | )% | (3.3 | )% | (5.1 | )% | (4.0 | )% | (3.5 | )% | (6.0 | )% | (5.0 | )% | (3.6 | )% | ||||||||||||||||
Large enterprise | (4.6 | )% | (2.8 | )% | (5.6 | )% | (3.6 | )% | (2.4 | )% | (2.1 | )% | (6.9 | )% | (2.5 | )% | ||||||||||||||||
Other | (3.1 | )% | (3.7 | )% | (5.1 | )% | (5.5 | )% | (4.4 | )% | (2.5 | )% | (5.5 | )% | (4.4 | )% | ||||||||||||||||
Total direct | (1.4 | )% | (1.5 | )% | (1.1 | )% | (2.0 | )% | (1.4 | )% | (1.9 | )% | (2.0 | )% | (3.5 | )% | ||||||||||||||||
Total indirect | (8.6 | )% | (2.1 | )% | (11.9 | )% | (3.8 | )% | (3.1 | )% | (2.8 | )% | (3.5 | )% | (4.2 | )% | ||||||||||||||||
Total | (1.6 | )% | (1.5 | )% | (1.6 | )% | (2.1 | )% | (1.4 | )% | (1.9 | )% | (2.1 | )% | (3.5 | )% | ||||||||||||||||
End of period units in service % of total (b) | ||||||||||||||||||||||||||||||||
Healthcare | 77.0 | % | 76.3 | % | 75.9 | % | 74.7 | % | 74.1 | % | 73.6 | % | 73.0 | % | 72.0 | % | ||||||||||||||||
Government | 7.2 | % | 7.2 | % | 7.4 | % | 7.7 | % | 7.8 | % | 7.9 | % | 8.3 | % | 8.6 | % | ||||||||||||||||
Large enterprise | 6.9 | % | 7.2 | % | 7.2 | % | 7.6 | % | 7.7 | % | 7.8 | % | 7.8 | % | 8.2 | % | ||||||||||||||||
Other | 5.5 | % | 5.6 | % | 5.7 | % | 6.0 | % | 6.2 | % | 6.4 | % | 6.6 | % | 6.8 | % | ||||||||||||||||
Total direct | 96.6 | % | 96.3 | % | 96.2 | % | 95.9 | % | 95.8 | % | 95.7 | % | 95.7 | % | 95.6 | % | ||||||||||||||||
Total indirect | 3.4 | % | 3.7 | % | 3.8 | % | 4.1 | % | 4.2 | % | 4.3 | % | 4.3 | % | 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. |
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SUPPLEMENTAL INFORMATION - DIRECT PAGING UNITS IN SERVICE AND | ||||||||||||||||||||||||||||||||||||||||
CELLULAR ACTIVATIONS (a) | ||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||||||||||||||
12/31/2015 | 9/30/2015 | 6/30/2015 | 3/31/2015 | 12/31/2014 | 9/30/2014 | 6/30/2014 | 3/31/2014 | |||||||||||||||||||||||||||||||||
Account size ending units in service (000's) | ||||||||||||||||||||||||||||||||||||||||
1 to 3 units | 30 | 31 | 32 | 33 | 35 | 37 | 39 | 41 | ||||||||||||||||||||||||||||||||
4 to 10 units | 16 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | ||||||||||||||||||||||||||||||||
11 to 50 units | 43 | 44 | 47 | 49 | 51 | 53 | 56 | 57 | ||||||||||||||||||||||||||||||||
51 to 100 units | 30 | 31 | 33 | 32 | 34 | 36 | 38 | 41 | ||||||||||||||||||||||||||||||||
101 to 1,000 units | 229 | 238 | 244 | 252 | 262 | 267 | 275 | 282 | ||||||||||||||||||||||||||||||||
>1,000 units | 785 | 787 | 792 | 794 | 801 | 805 | 812 | 824 | ||||||||||||||||||||||||||||||||
Total | 1,133 | 1,149 | 1,167 | 1,180 | 1,204 | 1,220 | 1,243 | 1,269 | ||||||||||||||||||||||||||||||||
End of period units in service % of total direct | ||||||||||||||||||||||||||||||||||||||||
1 to 3 units | 2.6 | % | 2.7 | % | 2.8 | % | 2.8 | % | 2.9 | % | 3.0 | % | 3.1 | % | 3.2 | % | ||||||||||||||||||||||||
4 to 10 units | 1.5 | % | 1.5 | % | 1.6 | % | 1.7 | % | 1.7 | % | 1.8 | % | 1.8 | % | 1.9 | % | ||||||||||||||||||||||||
11 to 50 units | 3.8 | % | 3.9 | % | 4.0 | % | 4.2 | % | 4.2 | % | 4.3 | % | 4.5 | % | 4.5 | % | ||||||||||||||||||||||||
51 to 100 units | 2.6 | % | 2.7 | % | 2.8 | % | 2.7 | % | 2.8 | % | 3.0 | % | 3.1 | % | 3.2 | % | ||||||||||||||||||||||||
101 to 1,000 units | 20.3 | % | 20.7 | % | 20.9 | % | 21.4 | % | 21.8 | % | 21.9 | % | 22.1 | % | 22.3 | % | ||||||||||||||||||||||||
>1,000 units | 69.2 | % | 68.5 | % | 67.9 | % | 67.2 | % | 66.6 | % | 66.0 | % | 65.4 | % | 64.9 | % | ||||||||||||||||||||||||
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 | (3.9 | )% | (4.1 | )% | (2.9 | )% | (6.2 | )% | (4.4 | )% | (4.8 | )% | (4.1 | )% | (4.9 | )% | ||||||||||||||||||||||||
4 to 10 units | (6.0 | )% | (5.3 | )% | (5.0 | )% | (6.2 | )% | (5.5 | )% | (4.0 | )% | (5.4 | )% | (4.1 | )% | ||||||||||||||||||||||||
11 to 50 units | (4.1 | )% | (4.8 | )% | (4.1 | )% | (4.6 | )% | (3.8 | )% | (5.2 | )% | (3.2 | )% | (5.3 | )% | ||||||||||||||||||||||||
51 to 100 units | (3.7 | )% | (5.4 | )% | 0.2 | % | (4.1 | )% | (5.4 | )% | (5.2 | )% | (8.7 | )% | (1.2 | )% | ||||||||||||||||||||||||
101 to 1,000 units | (3.6 | )% | (2.5 | )% | (3.0 | )% | (3.9 | )% | (2.0 | )% | (2.9 | )% | (2.5 | )% | (1.7 | )% | ||||||||||||||||||||||||
>1,000 units | (0.2 | )% | (0.6 | )% | (0.2 | )% | (0.8 | )% | (0.5 | )% | (1.0 | )% | (1.2 | )% | (4.0 | )% | ||||||||||||||||||||||||
Total | (1.4 | )% | (1.5 | )% | (1.1 | )% | (2.0 | )% | (1.4 | )% | (1.9 | )% | (2.0 | )% | (3.5 | )% | ||||||||||||||||||||||||
Account size ARPU | ||||||||||||||||||||||||||||||||||||||||
1 to 3 units | $ | 14.33 | $ | 14.34 | $ | 14.52 | $ | 14.52 | $ | 14.53 | $ | 14.65 | $ | 14.86 | $ | 14.96 | ||||||||||||||||||||||||
4 to 10 units | 14.27 | 14.11 | 14.11 | 14.07 | 14.09 | 14.04 | 14.12 | 14.22 | ||||||||||||||||||||||||||||||||
11 to 50 units | 12.00 | 12.03 | 12.13 | 12.02 | 12.00 | 11.95 | 12.00 | 12.07 | ||||||||||||||||||||||||||||||||
51 to 100 units | 10.63 | 10.48 | 10.42 | 10.26 | 10.15 | 10.16 | 10.18 | 10.27 | ||||||||||||||||||||||||||||||||
101 to 1,000 units | 8.76 | 8.79 | 8.78 | 8.81 | 8.79 | 8.69 | 8.58 | 8.76 | ||||||||||||||||||||||||||||||||
>1,000 units | 6.85 | 6.87 | 6.90 | 6.95 | 6.93 | 6.99 | 7.00 | 7.11 | ||||||||||||||||||||||||||||||||
Total | $ | 7.85 | $ | 7.88 | $ | 7.93 | $ | 7.99 | $ | 8.00 | $ | 8.05 | $ | 8.06 | $ | 8.19 | ||||||||||||||||||||||||
Cellular: | ||||||||||||||||||||||||||||||||||||||||
Number of activations | 26 | 33 | 144 | 92 | 264 | 2,198 | 1,679 | 281 | ||||||||||||||||||||||||||||||||
Revenue from cellular services (000's) | $ | 13 | $ | 25 | $ | 39 | $ | 40 | $ | 77 | $ | 395 | $ | 278 | $ | 108 | ||||||||||||||||||||||||
(a) Slight variations in totals are due to rounding. | ||||||||||||||||||||||||||||||||||||||||
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2016 FINANCIAL GUIDANCE | ||||||||
(In millions) | ||||||||
Guidance Range | ||||||||
From | To | |||||||
Revenues | ||||||||
Wireless | $ | 101 | $ | 111 | ||||
Software | 73 | 81 | ||||||
$ | 174 | $ | 192 | |||||
Operating Expenses (a) | $ | 153 | $ | 159 | ||||
Capital Expenses | $ | 6.0 | $ | 8.0 | ||||
(a) Operating expenses exclude depreciation, amortization and accretion. | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160224006467/en/
Bob.Lougee@spok.com
Source: