Delaware | 000-51027 | 16-1694797 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) | ||
6677 Richmond Highway, Alexandria, | 22306 | |||
Virginia | ||||
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (703) 660-6677 |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4{c)) |
USA Mobility, Inc.
May 26, 2006
By:
/s/ Thomas L. Schilling
Name:
Thomas L. Schilling
Title:
Chief Financial Officer
For Immediate Release | Contact : Bob Lougee (703) 721-3080 | |
Thursday, May 25, 2006 |
| The annual rate of revenue erosion continued to show modest, but consistent improvement at 18.6 percent in the first quarter compared to 22.7 percent and 20.3 percent in the first and fourth quarter of 2005 on a pro forma basis, respectively. | ||
| The annual rate of subscriber erosion improved to 17.6 percent from 18.1 percent in fourth quarter and 21.7 percent in first quarter 2005, on a pro forma basis. Net subscriber unit loss in first quarter was 252,000 compared to 347,000 and 230,000 in first quarter and fourth quarter of 2005, respectively. | ||
| Average revenue per unit was $8.80, compared to $9.01 and $8.90 in the first quarter and fourth quarter of 2005, respectively. | ||
| Operating expenses, excluding depreciation, amortization, and accretion were $96.2 million in first quarter, a reduction of $26.7 million or 21.7 percent from the first quarter of 2005, and $5.3 million or 5.3 percent reduction from fourth quarter 2005. | ||
| Capital expense was $4.4 million in the first quarter, an increase of about 6% over fourth quarter 2005, and in line with expectations. |
For the Three Months Ended March 31, | ||||||||
2005 | 2006 | |||||||
Revenue:
|
||||||||
Service, rental and maintenance, net of service credits
|
$ | 159,150 | $ | 128,761 | ||||
Product sales
|
6,527 | 6,131 | ||||||
|
||||||||
Total revenue
|
165,677 | 134,892 | ||||||
|
||||||||
|
||||||||
Operating expenses:
|
||||||||
Cost of products sold
|
1,279 | 786 | ||||||
Service, rental and maintenance
|
56,353 | 48,011 | ||||||
Selling and marketing
|
10,402 | 10,888 | ||||||
General and administrative
|
48,427 | 35,711 | ||||||
Depreciation, amortization and accretion
|
40,595 | 18,794 | ||||||
Stock based compensation
|
1,385 | 683 | ||||||
Severance and related termination costs
|
5,137 | 170 | ||||||
|
||||||||
Total operating expenses
|
163,578 | 115,043 | ||||||
|
||||||||
|
||||||||
|
||||||||
Operating income
|
2,099 | 19,849 | ||||||
|
||||||||
|
||||||||
Interest expense, net
|
(1,214 | ) | 549 | |||||
Loss on extinguishment of long-term debt
|
(594 | ) | | |||||
Other income, net
|
137 | 62 | ||||||
|
||||||||
Income before income tax expense
|
428 | 20,460 | ||||||
Income tax expense
|
(291 | ) | (8,195 | ) | ||||
|
||||||||
Net income
|
$ | 137 | $ | 12,265 | ||||
|
||||||||
|
||||||||
Basic net income per common share
|
$ | 0.01 | $ | 0.45 | ||||
|
||||||||
Diluted net income per common share
|
$ | 0.01 | $ | 0.45 | ||||
|
||||||||
|
||||||||
Basic weighted average common shares outstanding
|
27,108,034 | 27,397,307 | ||||||
|
||||||||
Diluted weighted average common shares outstanding
|
27,320,212 | 27,503,230 | ||||||
|
||||||||
|
||||||||
Reconciliation of operating income to EBITDA:
|
||||||||
Operating income
|
2,099 | 19,849 | ||||||
Addback:
|
||||||||
Depreciation and amortization
|
40,595 | 18,794 | ||||||
|
||||||||
EBITDA (a)
|
$ | 42,694 | $ | 38,643 | ||||
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)
For the Three Months Ended March 31,
2005
2006
$
137
$
12,265
40,595
18,794
(1,391
)
1,464
594
505
1,385
683
7,005
5,046
(26
)
37
(3,084
)
(507
)
(4,861
)
(1,033
)
(46
)
104
(9,704
)
(2,483
)
(1,494
)
965
1,464
7,734
$
31,079
$
43,069
(2,564
)
(4,424
)
25
32
102
80
$
(2,437
)
$
(4,312
)
(38,526
)
(12
)
$
(38,526
)
$
(12
)
$
(9,884
)
$
38,745
46,995
37,547
$
37,111
$
76,292
$
1,367
$
$
$
Three Months Ended | ||||||||||||||||||||||||||||||||||||
March 2004 | June 2004 | September 2004 | December 2004 | March 2005 | June 2005 | September 2005 | December 2005 | March 2006 | ||||||||||||||||||||||||||||
Direct One-Way:
|
||||||||||||||||||||||||||||||||||||
Beginning units in service
|
5,329 | 5,100 | 4,909 | 4,690 | 4,464 | 4,273 | 4,114 | 3,977 | 3,835 | |||||||||||||||||||||||||||
Gross placements
|
226 | 181 | 182 | 166 | 141 | 134 | 125 | 126 | 108 | |||||||||||||||||||||||||||
Disconnects
|
(455 | ) | (372 | ) | (401 | ) | (392 | ) | (332 | ) | (293 | ) | (262 | ) | (268 | ) | (265 | ) | ||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Ending units in service
|
5,100 | 4,909 | 4,690 | 4,464 | 4,273 | 4,114 | 3,977 | 3,835 | 3,678 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Two-Way:
|
||||||||||||||||||||||||||||||||||||
Beginning units in service
|
506 | 483 | 462 | 449 | 422 | 397 | 382 | 365 | 347 | |||||||||||||||||||||||||||
Gross placements
|
40 | 32 | 35 | 29 | 22 | 29 | 17 | 18 | 15 | |||||||||||||||||||||||||||
Disconnects
|
(63 | ) | (53 | ) | (48 | ) | (56 | ) | (47 | ) | (44 | ) | (34 | ) | (36 | ) | (38 | ) | ||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Ending units in service
|
483 | 462 | 449 | 422 | 397 | 382 | 365 | 347 | 324 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Indirect One-Way:
|
||||||||||||||||||||||||||||||||||||
Beginning units in service
|
1,716 | 1,474 | 1,253 | 1,101 | 987 | 859 | 762 | 685 | 604 | |||||||||||||||||||||||||||
Gross placements
|
157 | 145 | 160 | 143 | 107 | 92 | 26 | 26 | 24 | |||||||||||||||||||||||||||
Disconnects
|
(399 | ) | (366 | ) | (312 | ) | (257 | ) | (235 | ) | (189 | ) | (103 | ) | (107 | ) | (93 | ) | ||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Ending units in service
|
1,474 | 1,253 | 1,101 | 987 | 859 | 762 | 685 | 604 | 535 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Two-Way:
|
||||||||||||||||||||||||||||||||||||
Beginning units in service
|
131 | 123 | 121 | 115 | 94 | 91 | 90 | 89 | 100 | |||||||||||||||||||||||||||
Gross placements
|
20 | 16 | 20 | 7 | 7 | 7 | 3 | 18 | 4 | |||||||||||||||||||||||||||
Disconnects
|
(28 | ) | (18 | ) | (26 | ) | (28 | ) | (10 | ) | (8 | ) | (4 | ) | (7 | ) | (7 | ) | ||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Ending units in service
|
123 | 121 | 115 | 94 | 91 | 90 | 89 | 100 | 97 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total
|
||||||||||||||||||||||||||||||||||||
Beginning units in service
|
7,682 | 7,180 | 6,745 | 6,355 | 5,967 | 5,620 | 5,348 | 5,116 | 4,886 | |||||||||||||||||||||||||||
Gross placements
|
443 | 374 | 397 | 345 | 277 | 262 | 171 | 188 | 151 | |||||||||||||||||||||||||||
Disconnects
|
(945 | ) | (809 | ) | (787 | ) | (733 | ) | (624 | ) | (534 | ) | (403 | ) | (418 | ) | (403 | ) | ||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Ending units in service
|
7,180 | 6,745 | 6,355 | 5,967 | 5,620 | 5,348 | 5,116 | 4,886 | 4,634 | |||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Adjusted Proforma ARPU
|
||||||||||||||||||||||||||||||||||||
Direct One-Way
|
$ | 9.10 | $ | 8.96 | $ | 8.89 | $ | 8.75 | $ | 8.65 | $ | 8.61 | $ | 8.48 | $ | 8.27 | $ | 8.17 | ||||||||||||||||||
Direct Two-Way
|
$ | 25.15 | $ | 24.68 | $ | 24.22 | $ | 23.93 | $ | 23.98 | $ | 23.65 | $ | 24.28 | $ | 23.76 | $ | 23.61 | ||||||||||||||||||
Indirect One-Way
|
$ | 4.06 | $ | 4.26 | $ | 4.12 | $ | 4.26 | $ | 4.07 | $ | 4.11 | $ | 4.36 | $ | 4.66 | $ | 4.53 | ||||||||||||||||||
Indirect Two-Way
|
$ | 12.89 | $ | 12.07 | $ | 11.30 | $ | 10.41 | $ | 9.16 | $ | 8.71 | $ | 8.42 | $ | 7.80 | $ | 6.93 | ||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Total
|
$ | 9.15 | $ | 9.16 | $ | 9.14 | $ | 9.09 | $ | 9.01 | $ | 9.02 | $ | 9.04 | $ | 8.90 | $ | 8.80 | ||||||||||||||||||
|
(a) | Assumes Arch and Metrocall combined as of January 1, 2004 and the unit in service adjustment reflected in March 2004. | |
(b) | Amounts have been adjusted for rounding. |