[July 30, 2014] |
|
Spok Reports Second Quarter Operating Results; Board Declares Regular Quarterly Dividend
SPRINGFIELD, Va. --(Business Wire)--
Spok
Holdings, Inc. (NASDAQ: SPOK), formerly USA Mobility, Inc., a global
leader in critical communications, today announced operating results
for the second quarter ended June 30, 2014. In addition, the Company's
Board of Directors declared a regular quarterly dividend of $0.125 per
share, payable on September 10, 2014 to stockholders of record on August
19, 2014.
Consolidated revenue for the second quarter was $49.1 million, compared
to $52.3 million in the second quarter of 2013. Software revenue was
$15.6 million versus $14.5 million in the year-earlier quarter. Wireless
revenue was $33.5 million in the second quarter, compared to $37.8
million in the second quarter of 2013.
Second quarter EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled $11.7 million, or 23.9 percent of
revenue, compared to $15.7 million, or 30.1 percent of revenue, in the
year-earlier quarter.
Net income for the second quarter was $4.3 million, or $0.19 per fully
diluted share, compared to $6.8 million, or $0.31 per fully diluted
share, in the second quarter of 2013.
Key results and highlights for the second quarter included:
-
Bookings for the second quarter increased to $19.0 million from $15.6
million in the year-earlier quarter, achieving a record high.
-
Backlog totaled $40.2 million at June 30, 2014, compared to $39.6
million a year earlier.
-
Of the $15.6 million in second quarter Software revenue, $8.1 million
was operations revenue and $7.5 million was maintenance revenue,
compared to $7.6 million and $6.9 million, respectively, of the $14.5
million in Software revenue for second quarter of 2013.
-
The renewal rate for software maintenance in the second quarter was
99.5 percent.
-
The quarterly rate of Wireless revenue erosion improved to 2.4 percent
from 2.6 percent in the second quarter of 2013, while the annual rate
of revenue erosion improved to 11.3 percent from 11.7 percent in the
year-earlier quarter.
-
Net paging unit losses were 28,000 in the second quarter versus 35,000
in the second quarter of 2013. The quarterly rate of unit erosion
improved to 2.1 percent versus 2.4 percent a year earlier. Units in
service at June 30, 2014 totaled 1,299,000, compared to 1,445,000 a
year earlier.
-
Total paging ARPU (average revenue per unit) was $7.98 in the second
quarter, compared to $8.22 in the year-earlier quarter.
-
Operating expenses (excluding depreciation, amortization and
accretion) totaled $37.4 million in the second quarter, compared to
$36.5 million in the year-earlier quarter.
-
Capital expenses were $2.4 million, compared to $2.9 million in the
second quarter of 2013.
-
The number of full-time equivalent employees at June 30, 2014 totaled
615, compared to 659 at June 30, 2013.
-
Dividends paid to stockholders totaled $2.7 million in the second
quarter.
-
The Company's cash balance at June 30, 2014 was $97.0 million.
Vincent D. Kelly, president and chief executive officer, said: "The
Company continued to make excellent progress during the quarter. We
achieved or exceeded our expectations on nearly all performance measures
and continued the positive momentum we established in recent quarters.
Software revenue increased from the year-earlier quarter, bookings
reached an all-time high, and our backlog remained near-record levels at
mid-year. In addition, we met our goals for Wireless revenue, gross
pager placements, and unit churn. At the same time, we continued to
operate profitably, expand our market reach and product offerings,
strengthen our balance sheet, and generate sufficient cash flow to again
return capital to stockholders in the form of cash dividends."
Kelly added: "We also announced our new corporate name - Spok,
(pronounced "spoke") - in early July as part of a rebranding initiative
that we believe better reflects our evolving identity as a global leader
in critical communications. Our new corporate identity under the brand
Spok represents a fresh start for our organization after completing the
consolidation of our Software and Wireless operations earlier this year.
While we realize a brand strategy evolves over time, we are pleased with
the positive response we've received to the name change from inside and
outside the Company."
Commenting on Software revenue, Kelly said: "Compared to the second
quarter of 2013, operations revenue grew 6.5 percent, maintenance
revenue increased 8.4 percent, and total Software revenue of $15.6
million was up 7.4 percent. The increase in operations revenue primarily
reflected growing deliveries of software, hardware and professional
services while higher maintenance revenue reflected our continued
renewal rates in excess of 99 percent."
Kelly also noted that record high bookings for the second quarter
included sales to both new and existing customers. "Demand was
particularly strong for upgrades and installations of call center
solutions, with one large health system, for example, adding new
applications for its solutions suite to increase patient safety, improve
nursing workflows and enhance overall operational efficiencies. Customer
demand also remained strong for such software solutions as critical
smartphone communications, secure texting, emergency management, and
clinical alerting. Beyond healthcare, the public safety sector also
showed solid growth with 19 new contracts signed during the quarter."
Overall, Kelly added, "Software sales continued to be strongest in North
America. However, our sales team also recorded an increasing number of
contracts with international customers while continuing to build a solid
pipeline of new business leads throughout both national and
international markets."
Spok's Wireless sales efforts during the quarter continued to focus
primarily on the core market segments of Healthcare, Government and
Large Enterprise. "These core segments represented approximately 93.0
percent of our direct subscriber base and 89.7 percent of our direct
paging revenue at the end of the quarter," Kelly said. "Healthcare
comprised 76.2 percent of our direct subscriber base at June 30 and
continued to be our best performing market segment with the highest rate
of gross placements (4.5 percent) and lowest level of unit disconnects
(0.8 percent). Although competition remains strong for all Wireless
services, we are pleased the vast majority of our customers continue to
recognize the reliability and cost advantages of paging for their
critical messaging needs."
Kelly also noted that Spok's Software and Wireless sales representatives
continued to collaborate on numerous sales initiatives during the second
quarter, resulting in 11 new cross-selling accounts.
Shawn E. Endsley, chief financial officer, said second quarter results
were largely in line with the Company's expectations. "Strong revenue
from both Wireless and Software, along with continued expense
management, enabled us to maintain solid operating cash flow, EBITDA and
operating margins," he noted. "In addition, we again improved our
balance sheet, recording a cash balance of $97 million at June 30. While
we continue to operate as a debt-free company, we still have
approximately $40 million in available borrowing capacity through our
existing credit facility for investment opportunities."
Endsley added that the Company is maintaining its previously announced
financial guidance for 2014, which projects total revenue to range from
$183 million to $201 million, operating expenses (excluding
depreciation, amortization and accretion) to range from $147 million to
$156 million, and capital expenses to range from $7 million to $9
million.
* * * * * * * * *
Spok plans to host a conference call for investors on its second quarter
operating results at 10:00 a.m. Eastern Time on Thursday, July 31, 2014.
Dial-in numbers for the call are 719-325-2402 or 888-430-8691. The pass
code for the call is 6085888. A replay of the call will be available
from 12:30 p.m. ET on July 31 until 12:30 p.m. on Thursday, August 14.
Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the
replay is 6085888.
* * * * * * * * *
About Spok
Spok
Holdings, Inc., headquartered in Springfield, Va., is proud to be a
leader in critical
communications for healthcare, government, public safety, and other
industries. We deliver smart, reliable solutions to help protect the
health, well-being, and safety of people around the globe. More than
125,000 organizations worldwide rely on Spok for workflow
improvement, secure
texting, paging
services, contact
center optimization, and public
safety response. When communications matter, Spok delivers. Visit us
at spok.com or
find us on Twitter @Spoktweets.
Safe Harbor Statement under the Private Securities Litigation Reform
Act: Statements contained herein or in prior press releases which
are not historical fact, such as statements regarding Spok's future
operating and financial performance, are forward-looking statements for
purposes of the safe harbor provisions under the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve
risks and uncertainties that may cause Spok's actual results to be
materially different from the future results expressed or implied by
such forward-looking statements. Factors that could cause actual results
to differ materially from those expectations include, but are not
limited to, declining demand for paging products and services, continued
demand for our software products and services, our ability to develop
additional software solutions for our customers and manage our
development as a global organization, the ability to manage operating
expenses, future capital needs, competitive pricing pressures,
competition from both traditional paging services and other wireless
communications services, competition from other software providers,
government regulation, reliance upon third-party providers for certain
equipment and services, as well as other risks described from time to
time in our periodic reports and other filings with the Securities and
Exchange Commission. Although Spok believes the expectations reflected
in the forward-looking statements are based on reasonable assumptions,
it can give no assurance that its expectations will be attained. Spok
disclaims any intent or obligation to update any forward-looking
statements.
|
SPOK HOLDINGS, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
|
(Unaudited and in thousands except share, per share amounts and ARPU)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
For the six months ended
|
|
|
|
6/30/2014
|
|
|
6/30/2013
|
|
|
6/30/2014
|
|
|
6/30/2013
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
$
|
33,518
|
|
|
|
$
|
37,771
|
|
|
|
$
|
67,869
|
|
|
|
$
|
76,550
|
|
Software
|
|
|
|
15,576
|
|
|
|
|
14,497
|
|
|
|
|
31,344
|
|
|
|
|
28,848
|
|
Total revenue
|
|
|
|
49,094
|
|
|
|
|
52,268
|
|
|
|
|
99,213
|
|
|
|
|
105,398
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
7,180
|
|
|
|
|
6,961
|
|
|
|
|
13,985
|
|
|
|
|
13,628
|
|
Service, rental and maintenance
|
|
|
|
11,420
|
|
|
|
|
12,018
|
|
|
|
|
23,212
|
|
|
|
|
24,209
|
|
Selling and marketing
|
|
|
|
7,780
|
|
|
|
|
6,538
|
|
|
|
|
15,026
|
|
|
|
|
12,932
|
|
General and administrative
|
|
|
|
10,990
|
|
|
|
|
11,022
|
|
|
|
|
23,125
|
|
|
|
|
23,353
|
|
Severance and restructuring
|
|
|
|
4
|
|
|
|
|
2
|
|
|
|
|
24
|
|
|
|
|
2
|
|
Depreciation, amortization and accretion
|
|
|
|
4,352
|
|
|
|
|
3,822
|
|
|
|
|
8,381
|
|
|
|
|
7,629
|
|
Total operating expenses
|
|
|
|
41,726
|
|
|
|
|
40,363
|
|
|
|
|
83,753
|
|
|
|
|
81,753
|
|
% of total revenue
|
|
|
|
85.0
|
%
|
|
|
|
77.2
|
%
|
|
|
|
84.4
|
%
|
|
|
|
77.6
|
%
|
Operating income
|
|
|
|
7,368
|
|
|
|
|
11,905
|
|
|
|
|
15,460
|
|
|
|
|
23,645
|
|
% of total revenue
|
|
|
|
15.0
|
%
|
|
|
|
22.8
|
%
|
|
|
|
15.6
|
%
|
|
|
|
22.4
|
%
|
Interest expense, net
|
|
|
|
(64
|
)
|
|
|
|
(64
|
)
|
|
|
|
(131
|
)
|
|
|
|
(128
|
)
|
Other (expense) income, net
|
|
|
|
(194
|
)
|
|
|
|
(75
|
)
|
|
|
|
(178
|
)
|
|
|
|
6
|
|
Income before income tax expense
|
|
|
|
7,110
|
|
|
|
|
11,766
|
|
|
|
|
15,151
|
|
|
|
|
23,523
|
|
Income tax expense
|
|
|
|
(2,819
|
)
|
|
|
|
(4,938
|
)
|
|
|
|
(5,970
|
)
|
|
|
|
(9,770
|
)
|
Net income
|
|
|
$
|
4,291
|
|
|
|
$
|
6,828
|
|
|
|
$
|
9,181
|
|
|
|
$
|
13,753
|
|
Basic net income per common share
|
|
|
$
|
0.20
|
|
|
|
$
|
0.32
|
|
|
|
$
|
0.42
|
|
|
|
$
|
0.63
|
|
Diluted net income per common share
|
|
|
$
|
0.19
|
|
|
|
$
|
0.31
|
|
|
|
$
|
0.42
|
|
|
|
$
|
0.63
|
|
Basic weighted average common shares outstanding
|
|
|
|
21,642,163
|
|
|
|
|
21,644,281
|
|
|
|
|
21,640,191
|
|
|
|
|
21,666,096
|
|
Diluted weighted average common shares outstanding
|
|
|
|
22,099,791
|
|
|
|
|
21,827,149
|
|
|
|
|
22,073,254
|
|
|
|
|
21,921,742
|
|
Reconciliation of operating income to EBITDA (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
7,368
|
|
|
|
$
|
11,905
|
|
|
|
$
|
15,460
|
|
|
|
$
|
23,645
|
|
Add back: depreciation, amortization and accretion
|
|
|
|
4,352
|
|
|
|
|
3,822
|
|
|
|
|
8,381
|
|
|
|
|
7,629
|
|
EBITDA
|
|
|
$
|
11,720
|
|
|
|
$
|
15,727
|
|
|
|
$
|
23,841
|
|
|
|
$
|
31,274
|
|
% of total revenue
|
|
|
|
23.9
|
%
|
|
|
|
30.1
|
%
|
|
|
|
24.0
|
%
|
|
|
|
29.7
|
%
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
|
1,299
|
|
|
|
|
1,445
|
|
|
|
|
1,299
|
|
|
|
|
1,445
|
|
Average revenue per unit (ARPU)
|
|
|
$
|
7.98
|
|
|
|
$
|
8.22
|
|
|
|
$
|
8.02
|
|
|
|
$
|
8.24
|
|
Bookings
|
|
|
$
|
18,959
|
|
|
|
$
|
15,626
|
|
|
|
$
|
35,880
|
|
|
|
$
|
29,879
|
|
Backlog
|
|
|
$
|
40,182
|
|
|
|
$
|
39,576
|
|
|
|
$
|
40,182
|
|
|
|
$
|
39,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding. (b) EBITDA or
earnings before interest, taxes, depreciation, amortization and
accretion is a non-GAAP measure and is presented for analytical purposes
only.
|
SPOK HOLDINGS, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
|
(Unaudited and in thousands except share, per share amounts and ARPU)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2014
|
|
|
3/31/2014
|
|
|
12/31/2013
|
|
|
9/30/2013
|
|
|
6/30/2013
|
|
|
3/31/2013
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
$
|
33,518
|
|
|
|
$
|
34,351
|
|
|
|
$
|
35,831
|
|
|
|
$
|
37,067
|
|
|
|
$
|
37,771
|
|
|
|
$
|
38,779
|
|
Software
|
|
|
|
15,576
|
|
|
|
|
15,768
|
|
|
|
|
18,854
|
|
|
|
|
12,602
|
|
|
|
|
14,497
|
|
|
|
|
14,351
|
|
Total revenue
|
|
|
|
49,094
|
|
|
|
|
50,119
|
|
|
|
|
54,685
|
|
|
|
|
49,669
|
|
|
|
|
52,268
|
|
|
|
|
53,130
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
7,180
|
|
|
|
|
6,805
|
|
|
|
|
7,500
|
|
|
|
|
6,787
|
|
|
|
|
6,961
|
|
|
|
|
6,667
|
|
Service, rental and maintenance
|
|
|
|
11,420
|
|
|
|
|
11,792
|
|
|
|
|
11,442
|
|
|
|
|
11,820
|
|
|
|
|
12,018
|
|
|
|
|
12,191
|
|
Selling and marketing
|
|
|
|
7,780
|
|
|
|
|
7,246
|
|
|
|
|
7,297
|
|
|
|
|
6,388
|
|
|
|
|
6,538
|
|
|
|
|
6,394
|
|
General and administrative
|
|
|
|
10,990
|
|
|
|
|
12,135
|
|
|
|
|
11,470
|
|
|
|
|
11,282
|
|
|
|
|
11,022
|
|
|
|
|
12,331
|
|
Severance and restructuring
|
|
|
|
4
|
|
|
|
|
20
|
|
|
|
|
981
|
|
|
|
|
-
|
|
|
|
|
2
|
|
|
|
|
-
|
|
Depreciation, amortization and accretion
|
|
|
|
4,352
|
|
|
|
|
4,029
|
|
|
|
|
3,680
|
|
|
|
|
3,858
|
|
|
|
|
3,822
|
|
|
|
|
3,807
|
|
Total operating expenses
|
|
|
|
41,726
|
|
|
|
|
42,027
|
|
|
|
|
42,370
|
|
|
|
|
40,135
|
|
|
|
|
40,363
|
|
|
|
|
41,390
|
|
% of total revenue
|
|
|
|
85.0
|
%
|
|
|
|
83.9
|
%
|
|
|
|
77.5
|
%
|
|
|
|
80.8
|
%
|
|
|
|
77.2
|
%
|
|
|
|
77.9
|
%
|
Operating income
|
|
|
|
7,368
|
|
|
|
|
8,092
|
|
|
|
|
12,315
|
|
|
|
|
9,534
|
|
|
|
|
11,905
|
|
|
|
|
11,740
|
|
% of total revenue
|
|
|
|
15.0
|
%
|
|
|
|
16.1
|
%
|
|
|
|
22.5
|
%
|
|
|
|
19.2
|
%
|
|
|
|
22.8
|
%
|
|
|
|
22.1
|
%
|
Interest expense, net
|
|
|
|
(64
|
)
|
|
|
|
(67
|
)
|
|
|
|
(64
|
)
|
|
|
|
(68
|
)
|
|
|
|
(64
|
)
|
|
|
|
(64
|
)
|
Other (expense) income, net
|
|
|
|
(194
|
)
|
|
|
|
16
|
|
|
|
|
15
|
|
|
|
|
84
|
|
|
|
|
(75
|
)
|
|
|
|
81
|
|
Income before income tax expense
|
|
|
|
7,110
|
|
|
|
|
8,041
|
|
|
|
|
12,266
|
|
|
|
|
9,550
|
|
|
|
|
11,766
|
|
|
|
|
11,757
|
|
Income tax expense
|
|
|
|
(2,819
|
)
|
|
|
|
(3,151
|
)
|
|
|
|
(4,251
|
)
|
|
|
|
(3,788
|
)
|
|
|
|
(4,938
|
)
|
|
|
|
(4,832
|
)
|
Net income
|
|
|
$
|
4,291
|
|
|
|
$
|
4,890
|
|
|
|
$
|
8,015
|
|
|
|
$
|
5,762
|
|
|
|
$
|
6,828
|
|
|
|
$
|
6,925
|
|
Basic net income per common share
|
|
|
$
|
0.20
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.37
|
|
|
|
$
|
0.27
|
|
|
|
$
|
0.32
|
|
|
|
$
|
0.32
|
|
Diluted net income per common share
|
|
|
$
|
0.19
|
|
|
|
$
|
0.22
|
|
|
|
$
|
0.36
|
|
|
|
$
|
0.26
|
|
|
|
$
|
0.31
|
|
|
|
$
|
0.32
|
|
Basic weighted average common shares outstanding
|
|
|
|
21,642,163
|
|
|
|
|
21,638,198
|
|
|
|
|
21,633,706
|
|
|
|
|
21,629,289
|
|
|
|
|
21,644,281
|
|
|
|
|
21,688,153
|
|
Diluted weighted average common shares outstanding
|
|
|
|
22,099,791
|
|
|
|
|
22,037,796
|
|
|
|
|
21,969,756
|
|
|
|
|
21,919,238
|
|
|
|
|
21,827,149
|
|
|
|
|
21,904,862
|
|
Reconciliation of operating income to EBITDA (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
$
|
7,368
|
|
|
|
$
|
8,092
|
|
|
|
$
|
12,315
|
|
|
|
$
|
9,534
|
|
|
|
$
|
11,905
|
|
|
|
$
|
11,740
|
|
Add back: depreciation, amortization and accretion
|
|
|
|
4,352
|
|
|
|
|
4,029
|
|
|
|
|
3,680
|
|
|
|
|
3,858
|
|
|
|
|
3,822
|
|
|
|
|
3,807
|
|
EBITDA
|
|
|
$
|
11,720
|
|
|
|
$
|
12,121
|
|
|
|
$
|
15,995
|
|
|
|
$
|
13,392
|
|
|
|
$
|
15,727
|
|
|
|
$
|
15,547
|
|
% of total revenue
|
|
|
|
23.9
|
%
|
|
|
|
24.2
|
%
|
|
|
|
29.2
|
%
|
|
|
|
27.0
|
%
|
|
|
|
30.1
|
%
|
|
|
|
29.3
|
%
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
|
1,299
|
|
|
|
|
1,327
|
|
|
|
|
1,376
|
|
|
|
|
1,408
|
|
|
|
|
1,445
|
|
|
|
|
1,480
|
|
Average revenue per unit (ARPU)
|
|
|
$
|
7.98
|
|
|
|
$
|
8.11
|
|
|
|
$
|
8.15
|
|
|
|
$
|
8.22
|
|
|
|
$
|
8.22
|
|
|
|
$
|
8.25
|
|
Bookings
|
|
|
$
|
18,959
|
|
|
|
$
|
16,921
|
|
|
|
$
|
16,271
|
|
|
|
$
|
17,302
|
|
|
|
$
|
15,626
|
|
|
|
$
|
14,253
|
|
Backlog
|
|
|
$
|
40,182
|
|
|
|
$
|
41,396
|
|
|
|
$
|
40,211
|
|
|
|
$
|
43,831
|
|
|
|
$
|
39,576
|
|
|
|
$
|
40,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding. (b) EBITDA or
earnings before interest, taxes, depreciation, amortization and
accretion is a non-GAAP measure and is presented for analytical purposes
only.
|
SPOK HOLDINGS, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
6/30/2014
|
|
|
12/31/2013
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
97,035
|
|
|
$
|
89,075
|
Accounts receivable, net
|
|
|
|
22,964
|
|
|
|
18,084
|
Prepaid expenses and other
|
|
|
|
6,681
|
|
|
|
7,399
|
Inventory
|
|
|
|
2,070
|
|
|
|
2,221
|
Deferred income tax assets, net
|
|
|
|
3,389
|
|
|
|
3,389
|
Total current assets
|
|
|
|
132,139
|
|
|
|
120,168
|
Property and equipment, net
|
|
|
|
20,936
|
|
|
|
21,122
|
Goodwill
|
|
|
|
133,031
|
|
|
|
133,031
|
Other intangible assets, net
|
|
|
|
22,653
|
|
|
|
25,368
|
Deferred income tax assets, net
|
|
|
|
20,542
|
|
|
|
25,494
|
Other assets
|
|
|
|
1,586
|
|
|
|
1,715
|
Total assets
|
|
|
$
|
330,887
|
|
|
$
|
326,898
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
9,796
|
|
|
$
|
9,885
|
Accrued compensation and benefits
|
|
|
|
11,287
|
|
|
|
13,919
|
Deferred revenue
|
|
|
|
24,571
|
|
|
|
23,023
|
Total current liabilities
|
|
|
|
45,654
|
|
|
|
46,827
|
Deferred revenue
|
|
|
|
645
|
|
|
|
862
|
Other long-term liabilities
|
|
|
|
9,231
|
|
|
|
9,259
|
Total liabilities
|
|
|
|
55,530
|
|
|
|
56,948
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
-
|
|
|
|
-
|
Common stock
|
|
|
|
2
|
|
|
|
2
|
Additional paid-in capital
|
|
|
|
128,988
|
|
|
|
127,264
|
Retained earnings
|
|
|
|
146,367
|
|
|
|
142,684
|
Total stockholders' equity
|
|
|
|
275,357
|
|
|
|
269,950
|
Total liabilities and stockholders' equity
|
|
|
$
|
330,887
|
|
|
$
|
326,898
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
SPOK HOLDINGS, INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
|
|
|
|
6/30/2014
|
|
|
6/30/2013
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
9,181
|
|
|
|
$
|
13,753
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
|
8,381
|
|
|
|
|
7,629
|
|
Amortization of deferred financing costs
|
|
|
|
129
|
|
|
|
|
129
|
|
Deferred income tax expense
|
|
|
|
4,952
|
|
|
|
|
8,849
|
|
Amortization of stock based compensation
|
|
|
|
1,710
|
|
|
|
|
1,254
|
|
Provisions for doubtful accounts, service credits and other
|
|
|
|
597
|
|
|
|
|
833
|
|
Adjustments of non-cash transaction taxes
|
|
|
|
(229
|
)
|
|
|
|
(251
|
)
|
Loss on disposals of property and equipment
|
|
|
|
3
|
|
|
|
|
167
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(5,478
|
)
|
|
|
|
2,812
|
|
Prepaid expenses and other assets
|
|
|
|
850
|
|
|
|
|
(367
|
)
|
Accounts payable, accrued liabilities and accrued compensation and
benefits
|
|
|
|
(3,076
|
)
|
|
|
|
(7,578
|
)
|
Customer deposits and deferred revenue
|
|
|
|
1,331
|
|
|
|
|
(4,088
|
)
|
Net cash provided by operating activities
|
|
|
|
18,351
|
|
|
|
|
23,142
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(5,036
|
)
|
|
|
|
(5,268
|
)
|
Proceeds from disposals of property and equipment
|
|
|
|
59
|
|
|
|
|
9
|
|
Net cash used in investing activities
|
|
|
|
(4,977
|
)
|
|
|
|
(5,259
|
)
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Cash dividends to stockholders
|
|
|
|
(5,414
|
)
|
|
|
|
(6,900
|
)
|
Net cash used in financing activities
|
|
|
|
(5,414
|
)
|
|
|
|
(6,900
|
)
|
Net increase in cash and cash equivalents
|
|
|
|
7,960
|
|
|
|
|
10,983
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
89,075
|
|
|
|
|
61,046
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
97,035
|
|
|
|
$
|
72,029
|
|
Supplemental disclosure:
|
|
|
|
|
|
|
Interest paid
|
|
|
$
|
3
|
|
|
|
$
|
6
|
|
Income taxes paid
|
|
|
$
|
884
|
|
|
|
$
|
831
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
SPOK HOLDINGS, INC.
|
CONSOLIDATED OPERATING EXPENSES
|
SUPPLEMENTAL INFORMATION (a)
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2014
|
|
|
3/31/2014
|
|
|
12/31/2013
|
|
|
9/30/2013
|
|
|
6/30/2013
|
|
|
3/31/2013
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
$
|
3,827
|
|
|
|
$
|
3,959
|
|
|
$
|
3,609
|
|
|
|
$
|
3,744
|
|
|
$
|
3,743
|
|
|
$
|
3,709
|
Cost of sales
|
|
|
|
2,232
|
|
|
|
|
1,917
|
|
|
|
2,726
|
|
|
|
|
1,992
|
|
|
|
2,133
|
|
|
|
1,890
|
Stock based compensation
|
|
|
|
81
|
|
|
|
|
81
|
|
|
|
74
|
|
|
|
|
64
|
|
|
|
49
|
|
|
|
49
|
Other
|
|
|
|
1,040
|
|
|
|
|
848
|
|
|
|
1,091
|
|
|
|
|
987
|
|
|
|
1,036
|
|
|
|
1,019
|
Total cost of revenue
|
|
|
|
7,180
|
|
|
|
|
6,805
|
|
|
|
7,500
|
|
|
|
|
6,787
|
|
|
|
6,961
|
|
|
|
6,667
|
Service, rental and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Site rent
|
|
|
|
3,981
|
|
|
|
|
4,015
|
|
|
|
3,972
|
|
|
|
|
4,142
|
|
|
|
4,237
|
|
|
|
4,235
|
Telecommunications
|
|
|
|
1,669
|
|
|
|
|
1,736
|
|
|
|
1,751
|
|
|
|
|
1,832
|
|
|
|
1,885
|
|
|
|
1,889
|
Payroll and related
|
|
|
|
4,434
|
|
|
|
|
4,594
|
|
|
|
4,296
|
|
|
|
|
4,577
|
|
|
|
4,589
|
|
|
|
4,698
|
Stock based compensation
|
|
|
|
(17
|
)
|
|
|
|
39
|
|
|
|
32
|
|
|
|
|
59
|
|
|
|
20
|
|
|
|
20
|
Other
|
|
|
|
1,353
|
|
|
|
|
1,408
|
|
|
|
1,391
|
|
|
|
|
1,210
|
|
|
|
1,287
|
|
|
|
1,349
|
Total service, rental and maintenance
|
|
|
|
11,420
|
|
|
|
|
11,792
|
|
|
|
11,442
|
|
|
|
|
11,820
|
|
|
|
12,018
|
|
|
|
12,191
|
Selling and marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
4,099
|
|
|
|
|
4,098
|
|
|
|
3,717
|
|
|
|
|
3,917
|
|
|
|
3,919
|
|
|
|
3,840
|
Commissions
|
|
|
|
2,087
|
|
|
|
|
1,952
|
|
|
|
2,162
|
|
|
|
|
1,310
|
|
|
|
1,519
|
|
|
|
1,387
|
Stock based compensation
|
|
|
|
131
|
|
|
|
|
131
|
|
|
|
(24
|
)
|
|
|
|
122
|
|
|
|
119
|
|
|
|
119
|
Other
|
|
|
|
1,463
|
|
|
|
|
1,065
|
|
|
|
1,442
|
|
|
|
|
1,039
|
|
|
|
981
|
|
|
|
1,048
|
Total selling and marketing
|
|
|
|
7,780
|
|
|
|
|
7,246
|
|
|
|
7,297
|
|
|
|
|
6,388
|
|
|
|
6,538
|
|
|
|
6,394
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
4,440
|
|
|
|
|
4,796
|
|
|
|
4,802
|
|
|
|
|
4,696
|
|
|
|
5,074
|
|
|
|
5,414
|
Stock based compensation
|
|
|
|
429
|
|
|
|
|
835
|
|
|
|
763
|
|
|
|
|
701
|
|
|
|
440
|
|
|
|
438
|
Bad debt
|
|
|
|
134
|
|
|
|
|
86
|
|
|
|
262
|
|
|
|
|
274
|
|
|
|
265
|
|
|
|
275
|
Facility rent
|
|
|
|
899
|
|
|
|
|
922
|
|
|
|
719
|
|
|
|
|
883
|
|
|
|
839
|
|
|
|
844
|
Telecommunications
|
|
|
|
399
|
|
|
|
|
395
|
|
|
|
420
|
|
|
|
|
388
|
|
|
|
343
|
|
|
|
375
|
Outside services
|
|
|
|
1,719
|
|
|
|
|
1,762
|
|
|
|
1,811
|
|
|
|
|
1,927
|
|
|
|
1,606
|
|
|
|
2,560
|
Taxes, licenses and permits
|
|
|
|
1,383
|
|
|
|
|
1,064
|
|
|
|
1,358
|
|
|
|
|
1,106
|
|
|
|
1,166
|
|
|
|
1,233
|
Other
|
|
|
|
1,587
|
|
|
|
|
2,275
|
|
|
|
1,335
|
|
|
|
|
1,307
|
|
|
|
1,289
|
|
|
|
1,192
|
Total general and administrative
|
|
|
|
10,990
|
|
|
|
|
12,135
|
|
|
|
11,470
|
|
|
|
|
11,282
|
|
|
|
11,022
|
|
|
|
12,331
|
Severance and restructuring
|
|
|
|
4
|
|
|
|
|
20
|
|
|
|
981
|
|
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
Depreciation, amortization and accretion
|
|
|
|
4,352
|
|
|
|
|
4,029
|
|
|
|
3,680
|
|
|
|
|
3,858
|
|
|
|
3,822
|
|
|
|
3,807
|
Operating expenses
|
|
|
$
|
41,726
|
|
|
|
$
|
42,027
|
|
|
$
|
42,370
|
|
|
|
$
|
40,135
|
|
|
$
|
40,363
|
|
|
$
|
41,390
|
Capital expenditures
|
|
|
$
|
2,393
|
|
|
|
$
|
2,643
|
|
|
$
|
2,636
|
|
|
|
$
|
2,504
|
|
|
$
|
2,927
|
|
|
$
|
2,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
SPOK HOLDINGS, INC.
|
UNITS IN SERVICE ACTIVITY (a)
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2014
|
|
|
3/31/2014
|
|
|
12/31/2013
|
|
|
9/30/2013
|
|
|
6/30/2013
|
|
|
3/31/2013
|
Paging units in service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning units in service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct one-way
|
|
|
1,200
|
|
|
|
1,246
|
|
|
|
1,275
|
|
|
|
1,307
|
|
|
|
1,324
|
|
|
|
1,346
|
|
Direct two-way
|
|
|
69
|
|
|
|
69
|
|
|
|
70
|
|
|
|
73
|
|
|
|
73
|
|
|
|
75
|
|
Total direct
|
|
|
1,269
|
|
|
|
1,315
|
|
|
|
1,345
|
|
|
|
1,380
|
|
|
|
1,397
|
|
|
|
1,421
|
|
Indirect one-way
|
|
|
30
|
|
|
|
34
|
|
|
|
35
|
|
|
|
36
|
|
|
|
38
|
|
|
|
48
|
|
Indirect two-way
|
|
|
28
|
|
|
|
27
|
|
|
|
28
|
|
|
|
29
|
|
|
|
45
|
|
|
|
46
|
|
Total indirect
|
|
|
58
|
|
|
|
61
|
|
|
|
63
|
|
|
|
65
|
|
|
|
83
|
|
|
|
94
|
|
Total beginning units in service
|
|
|
1,327
|
|
|
|
1,376
|
|
|
|
1,408
|
|
|
|
1,445
|
|
|
|
1,480
|
|
|
|
1,515
|
|
Gross placements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct one-way
|
|
|
48
|
|
|
|
34
|
|
|
|
32
|
|
|
|
40
|
|
|
|
49
|
|
|
|
39
|
|
Direct two-way
|
|
|
2
|
|
|
|
4
|
|
|
|
3
|
|
|
|
3
|
|
|
|
5
|
|
|
|
3
|
|
Total direct
|
|
|
50
|
|
|
|
38
|
|
|
|
35
|
|
|
|
43
|
|
|
|
54
|
|
|
|
42
|
|
Indirect one-way
|
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
Indirect two-way
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Total indirect
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
Total gross placements
|
|
|
51
|
|
|
|
39
|
|
|
|
36
|
|
|
|
44
|
|
|
|
55
|
|
|
|
43
|
|
Gross disconnects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct one-way
|
|
|
(69
|
)
|
|
|
(80
|
)
|
|
|
(61
|
)
|
|
|
(72
|
)
|
|
|
(66
|
)
|
|
|
(61
|
)
|
Direct two-way
|
|
|
(7
|
)
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
(6
|
)
|
|
|
(5
|
)
|
|
|
(5
|
)
|
Total direct
|
|
|
(76
|
)
|
|
|
(84
|
)
|
|
|
(65
|
)
|
|
|
(78
|
)
|
|
|
(71
|
)
|
|
|
(66
|
)
|
Indirect one-way
|
|
|
(2
|
)
|
|
|
(4
|
)
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(11
|
)
|
Indirect two-way
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
(16
|
)
|
|
|
(1
|
)
|
Total indirect
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
|
(3
|
)
|
|
|
(3
|
)
|
|
|
(19
|
)
|
|
|
(12
|
)
|
Total gross disconnects
|
|
|
(79
|
)
|
|
|
(88
|
)
|
|
|
(68
|
)
|
|
|
(81
|
)
|
|
|
(90
|
)
|
|
|
(78
|
)
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct one-way
|
|
|
(21
|
)
|
|
|
(46
|
)
|
|
|
(29
|
)
|
|
|
(32
|
)
|
|
|
(17
|
)
|
|
|
(22
|
)
|
Direct two-way
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
Total direct
|
|
|
(26
|
)
|
|
|
(46
|
)
|
|
|
(30
|
)
|
|
|
(35
|
)
|
|
|
(17
|
)
|
|
|
(24
|
)
|
Indirect one-way
|
|
|
(1
|
)
|
|
|
(4
|
)
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
|
(10
|
)
|
Indirect two-way
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
(16
|
)
|
|
|
(1
|
)
|
Total indirect
|
|
|
(2
|
)
|
|
|
(3
|
)
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
(18
|
)
|
|
|
(11
|
)
|
Total net change
|
|
|
(28
|
)
|
|
|
(49
|
)
|
|
|
(32
|
)
|
|
|
(37
|
)
|
|
|
(35
|
)
|
|
|
(35
|
)
|
Ending units in service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct one-way
|
|
|
1,179
|
|
|
|
1,200
|
|
|
|
1,246
|
|
|
|
1,275
|
|
|
|
1,307
|
|
|
|
1,324
|
|
Direct two-way
|
|
|
64
|
|
|
|
69
|
|
|
|
69
|
|
|
|
70
|
|
|
|
73
|
|
|
|
73
|
|
Total direct
|
|
|
1,243
|
|
|
|
1,269
|
|
|
|
1,315
|
|
|
|
1,345
|
|
|
|
1,380
|
|
|
|
1,397
|
|
Indirect one-way
|
|
|
29
|
|
|
|
30
|
|
|
|
34
|
|
|
|
35
|
|
|
|
36
|
|
|
|
38
|
|
Indirect two-way
|
|
|
27
|
|
|
|
28
|
|
|
|
27
|
|
|
|
28
|
|
|
|
29
|
|
|
|
45
|
|
Total indirect
|
|
|
56
|
|
|
|
58
|
|
|
|
61
|
|
|
|
63
|
|
|
|
65
|
|
|
|
83
|
|
Total ending units in service
|
|
|
1,299
|
|
|
|
1,327
|
|
|
|
1,376
|
|
|
|
1,408
|
|
|
|
1,445
|
|
|
|
1,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
SPOK HOLDINGS, INC.
|
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2014
|
|
|
3/31/2014
|
|
|
12/31/2013
|
|
|
9/30/2013
|
|
|
6/30/2013
|
|
|
3/31/2013
|
Paging ARPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct one-way
|
|
|
$
|
7.48
|
|
|
|
$
|
7.59
|
|
|
|
$
|
7.60
|
|
|
|
$
|
7.64
|
|
|
|
$
|
7.67
|
|
|
|
$
|
7.73
|
|
Direct two-way
|
|
|
|
18.21
|
|
|
|
|
18.91
|
|
|
|
|
19.43
|
|
|
|
|
19.93
|
|
|
|
|
19.95
|
|
|
|
|
20.41
|
|
Total direct
|
|
|
|
8.06
|
|
|
|
|
8.19
|
|
|
|
|
8.23
|
|
|
|
|
8.29
|
|
|
|
|
8.33
|
|
|
|
|
8.40
|
|
Indirect one-way
|
|
|
|
8.18
|
|
|
|
|
8.22
|
|
|
|
|
8.68
|
|
|
|
|
8.90
|
|
|
|
|
8.97
|
|
|
|
|
8.22
|
|
Indirect two-way
|
|
|
|
4.45
|
|
|
|
|
4.32
|
|
|
|
|
3.97
|
|
|
|
|
3.97
|
|
|
|
|
3.89
|
|
|
|
|
3.76
|
|
Total indirect
|
|
|
|
6.39
|
|
|
|
|
6.37
|
|
|
|
|
6.47
|
|
|
|
|
6.57
|
|
|
|
|
6.31
|
|
|
|
|
5.85
|
|
Total one-way
|
|
|
|
7.50
|
|
|
|
|
7.60
|
|
|
|
|
7.63
|
|
|
|
|
7.68
|
|
|
|
|
7.71
|
|
|
|
|
7.74
|
|
Total two-way
|
|
|
|
14.22
|
|
|
|
|
14.70
|
|
|
|
|
14.90
|
|
|
|
|
15.20
|
|
|
|
|
14.40
|
|
|
|
|
13.96
|
|
Total paging ARPU
|
|
|
$
|
7.98
|
|
|
|
$
|
8.11
|
|
|
|
$
|
8.15
|
|
|
|
$
|
8.22
|
|
|
|
$
|
8.22
|
|
|
|
$
|
8.25
|
|
Gross disconnect rate (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct one-way
|
|
|
|
(5.7
|
)%
|
|
|
|
(6.4
|
)%
|
|
|
|
(4.7
|
)%
|
|
|
|
(5.6
|
)%
|
|
|
|
(5.0
|
)%
|
|
|
|
(4.6
|
)%
|
Direct two-way
|
|
|
|
(10.5
|
)%
|
|
|
|
(5.6
|
)%
|
|
|
|
(6.4
|
)%
|
|
|
|
(7.9
|
)%
|
|
|
|
(6.7
|
)%
|
|
|
|
(6.6
|
)%
|
Total direct
|
|
|
|
(6.0
|
)%
|
|
|
|
(6.4
|
)%
|
|
|
|
(4.8
|
)%
|
|
|
|
(5.7
|
)%
|
|
|
|
(5.1
|
)%
|
|
|
|
(4.7
|
)%
|
Indirect one-way
|
|
|
|
(6.8
|
)%
|
|
|
|
(8.2
|
)%
|
|
|
|
(6.1
|
)%
|
|
|
|
(6.3
|
)%
|
|
|
|
(7.4
|
)%
|
|
|
|
(23.6
|
)%
|
Indirect two-way
|
|
|
|
(2.7
|
)%
|
|
|
|
(2.3
|
)%
|
|
|
|
(5.7
|
)%
|
|
|
|
(4.8
|
)%
|
|
|
|
(34
|
)%
|
|
|
|
(1.6
|
)%
|
Total indirect
|
|
|
|
(4.8
|
)%
|
|
|
|
(5.5
|
)%
|
|
|
|
(5.9
|
)%
|
|
|
|
(5.6
|
)%
|
|
|
|
(22.3
|
)%
|
|
|
|
(12.5
|
)%
|
Total one-way
|
|
|
|
(5.8
|
)%
|
|
|
|
(6.5
|
)%
|
|
|
|
(4.8
|
)%
|
|
|
|
(5.6
|
)%
|
|
|
|
(5.1
|
)%
|
|
|
|
(5.2
|
)%
|
Total two-way
|
|
|
|
(8.3
|
)%
|
|
|
|
(4.7
|
)%
|
|
|
|
(6.2
|
)%
|
|
|
|
(7.0
|
)%
|
|
|
|
(17.3
|
)%
|
|
|
|
(4.7
|
)%
|
Total paging gross disconnect rate
|
|
|
|
(5.9
|
)%
|
|
|
|
(6.3
|
)%
|
|
|
|
(4.9
|
)%
|
|
|
|
(5.7
|
)%
|
|
|
|
(6.1
|
)%
|
|
|
|
(5.2
|
)%
|
Net loss rate (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct one-way
|
|
|
|
(1.9
|
)%
|
|
|
|
(3.7
|
)%
|
|
|
|
(2.1
|
)%
|
|
|
|
(2.5
|
)%
|
|
|
|
(1.3
|
)%
|
|
|
|
(1.7
|
)%
|
Direct two-way
|
|
|
|
(4.5
|
)%
|
|
|
|
(0.6
|
)%
|
|
|
|
(2.2
|
)%
|
|
|
|
(3.6
|
)%
|
|
|
|
(0.4
|
)%
|
|
|
|
(1.9
|
)%
|
Total direct
|
|
|
|
(2.0
|
)%
|
|
|
|
(3.5
|
)%
|
|
|
|
(2.1
|
)%
|
|
|
|
(2.5
|
)%
|
|
|
|
(1.3
|
)%
|
|
|
|
(1.7
|
)%
|
Indirect one-way
|
|
|
|
(4.8
|
)%
|
|
|
|
(6.3
|
)%
|
|
|
|
(3.9
|
)%
|
|
|
|
(3.3
|
)%
|
|
|
|
(4.7
|
)%
|
|
|
|
(21.8
|
)%
|
Indirect two-way
|
|
|
|
(2.2
|
)%
|
|
|
|
(1.9
|
)%
|
|
|
|
(4.9
|
)%
|
|
|
|
(4.1
|
)%
|
|
|
|
(33.7
|
)%
|
|
|
|
(1.3
|
)%
|
Total indirect
|
|
|
|
(3.5
|
)%
|
|
|
|
(4.2
|
)%
|
|
|
|
(4.4
|
)%
|
|
|
|
(3.6
|
)%
|
|
|
|
(21.0
|
)%
|
|
|
|
(11.5
|
)%
|
Total one-way
|
|
|
|
(2.0
|
)%
|
|
|
|
(3.7
|
)%
|
|
|
|
(2.2
|
)%
|
|
|
|
(2.5
|
)%
|
|
|
|
(1.4
|
)%
|
|
|
|
(2.4
|
)%
|
Total two-way
|
|
|
|
(3.8
|
)%
|
|
|
|
(1.0
|
)%
|
|
|
|
(3.0
|
)%
|
|
|
|
(3.8
|
)%
|
|
|
|
(13.3
|
)%
|
|
|
|
(1.6
|
)%
|
Total paging net loss rate
|
|
|
|
(2.1
|
)%
|
|
|
|
(3.5
|
)%
|
|
|
|
(2.2
|
)%
|
|
|
|
(2.6
|
)%
|
|
|
|
(2.4
|
)%
|
|
|
|
(2.3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding. (b) Gross
disconnect rate is current period disconnected units divided by prior
period ending units in service. (c) Net loss rate is net current
period placements and disconnected units in service divided by prior
period ending units in service.
|
SPOK HOLDINGS, INC.
|
SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2014
|
|
|
3/31/2014
|
|
|
12/31/2013
|
|
|
9/30/2013
|
|
|
6/30/2013
|
|
|
3/31/2013
|
Gross placement rate (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
4.5
|
%
|
|
|
3.1
|
%
|
|
|
2.9
|
%
|
|
|
3.3
|
%
|
|
|
4.5
|
%
|
|
|
3.4
|
%
|
Government
|
|
|
2.6
|
%
|
|
|
1.9
|
%
|
|
|
1.5
|
%
|
|
|
1.7
|
%
|
|
|
2.3
|
%
|
|
|
1.6
|
%
|
Large enterprise
|
|
|
2.0
|
%
|
|
|
2.9
|
%
|
|
|
3.0
|
%
|
|
|
4.3
|
%
|
|
|
2.4
|
%
|
|
|
2.1
|
%
|
Other
|
|
|
2.2
|
%
|
|
|
2.1
|
%
|
|
|
1.7
|
%
|
|
|
2.0
|
%
|
|
|
1.5
|
%
|
|
|
1.8
|
%
|
Total direct
|
|
|
4.0
|
%
|
|
|
2.9
|
%
|
|
|
2.7
|
%
|
|
|
3.1
|
%
|
|
|
3.8
|
%
|
|
|
3.0
|
%
|
Total indirect
|
|
|
1.3
|
%
|
|
|
1.2
|
%
|
|
|
1.5
|
%
|
|
|
1.9
|
%
|
|
|
1.4
|
%
|
|
|
1.0
|
%
|
Total
|
|
|
3.9
|
%
|
|
|
2.8
|
%
|
|
|
2.7
|
%
|
|
|
3.1
|
%
|
|
|
3.7
|
%
|
|
|
2.9
|
%
|
Gross disconnect rate (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
(5.3
|
)%
|
|
|
(6.5
|
)%
|
|
|
(4.5
|
)%
|
|
|
(5.2
|
)%
|
|
|
(4.4
|
)%
|
|
|
(3.9
|
)%
|
Government
|
|
|
(7.6
|
)%
|
|
|
(5.6
|
)%
|
|
|
(4.7
|
)%
|
|
|
(7.9
|
)%
|
|
|
(7.1
|
)%
|
|
|
(5.9
|
)%
|
Large enterprise
|
|
|
(8.9
|
)%
|
|
|
(5.4
|
)%
|
|
|
(6.4
|
)%
|
|
|
(6.0
|
)%
|
|
|
(6.7
|
)%
|
|
|
(7.0
|
)%
|
Other
|
|
|
(7.7
|
)%
|
|
|
(6.5
|
)%
|
|
|
(6.5
|
)%
|
|
|
(6.5
|
)%
|
|
|
(7.4
|
)%
|
|
|
(7.3
|
)%
|
Total direct
|
|
|
(6.0
|
)%
|
|
|
(6.4
|
)%
|
|
|
(4.8
|
)%
|
|
|
(5.7
|
)%
|
|
|
(5.1
|
)%
|
|
|
(4.7
|
)%
|
Total indirect
|
|
|
(4.8
|
)%
|
|
|
(5.5
|
)%
|
|
|
(5.9
|
)%
|
|
|
(5.6
|
)%
|
|
|
(22.3
|
)%
|
|
|
(12.5
|
)%
|
Total
|
|
|
(5.9
|
)%
|
|
|
(6.3
|
)%
|
|
|
(4.9
|
)%
|
|
|
(5.7
|
)%
|
|
|
(6.1
|
)%
|
|
|
(5.2
|
)%
|
Net loss rate (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
(0.8
|
)%
|
|
|
(3.5
|
)%
|
|
|
(1.5
|
)%
|
|
|
(1.9
|
)%
|
|
|
-
|
%
|
|
|
(0.5
|
)%
|
Government
|
|
|
(5.0
|
)%
|
|
|
(3.6
|
)%
|
|
|
(3.2
|
)%
|
|
|
(6.3
|
)%
|
|
|
(4.6
|
)%
|
|
|
(4.3
|
)%
|
Large enterprise
|
|
|
(6.9
|
)%
|
|
|
(2.5
|
)%
|
|
|
(3.3
|
)%
|
|
|
(1.6
|
)%
|
|
|
(4.2
|
)%
|
|
|
(4.9
|
)%
|
Other
|
|
|
(5.5
|
)%
|
|
|
(4.4
|
)%
|
|
|
(4.8
|
)%
|
|
|
(4.5
|
)%
|
|
|
(5.9
|
)%
|
|
|
(5.5
|
)%
|
Total direct
|
|
|
(2.0
|
)%
|
|
|
(3.5
|
)%
|
|
|
(2.1
|
)%
|
|
|
(2.5
|
)%
|
|
|
(1.3
|
)%
|
|
|
(1.7
|
)%
|
Total indirect
|
|
|
(3.5
|
)%
|
|
|
(4.2
|
)%
|
|
|
(4.4
|
)%
|
|
|
(3.6
|
)%
|
|
|
(21
|
)%
|
|
|
(11.5
|
)%
|
Total
|
|
|
(2.1
|
)%
|
|
|
(3.5
|
)%
|
|
|
(2.2
|
)%
|
|
|
(2.6
|
)%
|
|
|
(2.4
|
)%
|
|
|
(2.3
|
)%
|
End of period units in service % of total (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
73.0
|
%
|
|
|
72.0
|
%
|
|
|
71.9
|
%
|
|
|
71.4
|
%
|
|
|
70.9
|
%
|
|
|
68.4
|
%
|
Government
|
|
|
8.3
|
%
|
|
|
8.6
|
%
|
|
|
8.6
|
%
|
|
|
8.8
|
%
|
|
|
9.1
|
%
|
|
|
10.1
|
%
|
Large enterprise
|
|
|
7.8
|
%
|
|
|
8.2
|
%
|
|
|
8.1
|
%
|
|
|
8.2
|
%
|
|
|
8.1
|
%
|
|
|
8.3
|
%
|
Other
|
|
|
6.6
|
%
|
|
|
6.8
|
%
|
|
|
7.0
|
%
|
|
|
7.1
|
%
|
|
|
7.3
|
%
|
|
|
7.6
|
%
|
Total direct
|
|
|
95.7
|
%
|
|
|
95.6
|
%
|
|
|
95.6
|
%
|
|
|
95.5
|
%
|
|
|
95.4
|
%
|
|
|
94.4
|
%
|
Total indirect
|
|
|
4.3
|
%
|
|
|
4.4
|
%
|
|
|
4.4
|
%
|
|
|
4.5
|
%
|
|
|
4.6
|
%
|
|
|
5.6
|
%
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding. (b) Changes in
the classification of units in service are reflected in the quarter when
such changes are identified. Such changes are then appropriately
reflected in calculating the gross placement, gross disconnect and net
loss rates.
|
SPOK HOLDINGS, INC.
|
SUPPLEMENTAL INFORMATION - DIRECT PAGING UNITS IN SERVICE AND
|
CELLULAR ACTIVATIONS (a)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2014
|
|
|
3/31/2014
|
|
|
12/31/2013
|
|
|
9/30/2013
|
|
|
6/30/2013
|
|
|
3/31/2013
|
Account size ending units in service (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 3 units
|
|
|
|
39
|
|
|
|
|
41
|
|
|
|
|
43
|
|
|
|
|
45
|
|
|
|
|
47
|
|
|
|
|
49
|
|
4 to 10 units
|
|
|
|
23
|
|
|
|
|
24
|
|
|
|
|
25
|
|
|
|
|
26
|
|
|
|
|
28
|
|
|
|
|
29
|
|
11 to 50 units
|
|
|
|
56
|
|
|
|
|
57
|
|
|
|
|
61
|
|
|
|
|
64
|
|
|
|
|
67
|
|
|
|
|
71
|
|
51 to 100 units
|
|
|
|
38
|
|
|
|
|
41
|
|
|
|
|
42
|
|
|
|
|
43
|
|
|
|
|
45
|
|
|
|
|
47
|
|
101 to 1,000 units
|
|
|
|
275
|
|
|
|
|
282
|
|
|
|
|
287
|
|
|
|
|
293
|
|
|
|
|
305
|
|
|
|
|
321
|
|
>1,000 units
|
|
|
|
812
|
|
|
|
|
824
|
|
|
|
|
857
|
|
|
|
|
874
|
|
|
|
|
888
|
|
|
|
|
880
|
|
Total
|
|
|
|
1,243
|
|
|
|
|
1,269
|
|
|
|
|
1,315
|
|
|
|
|
1,345
|
|
|
|
|
1,380
|
|
|
|
|
1,397
|
|
End of period units in service % of total direct
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 3 units
|
|
|
|
3.1
|
%
|
|
|
|
3.2
|
%
|
|
|
|
3.2
|
%
|
|
|
|
3.3
|
%
|
|
|
|
3.4
|
%
|
|
|
|
3.5
|
%
|
4 to 10 units
|
|
|
|
1.8
|
%
|
|
|
|
1.9
|
%
|
|
|
|
1.9
|
%
|
|
|
|
2.0
|
%
|
|
|
|
2.0
|
%
|
|
|
|
2.1
|
%
|
11 to 50 units
|
|
|
|
4.5
|
%
|
|
|
|
4.5
|
%
|
|
|
|
4.6
|
%
|
|
|
|
4.8
|
%
|
|
|
|
4.8
|
%
|
|
|
|
5.1
|
%
|
51 to 100 units
|
|
|
|
3.1
|
%
|
|
|
|
3.2
|
%
|
|
|
|
3.2
|
%
|
|
|
|
3.2
|
%
|
|
|
|
3.2
|
%
|
|
|
|
3.4
|
%
|
101 to 1,000 units
|
|
|
|
22.1
|
%
|
|
|
|
22.3
|
%
|
|
|
|
21.9
|
%
|
|
|
|
21.8
|
%
|
|
|
|
22.1
|
%
|
|
|
|
23.0
|
%
|
>1,000 units
|
|
|
|
65.4
|
%
|
|
|
|
64.9
|
%
|
|
|
|
65.2
|
%
|
|
|
|
64.9
|
%
|
|
|
|
64.5
|
%
|
|
|
|
62.9
|
%
|
Total
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
|
|
100.0
|
%
|
Account size net loss rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 3 units
|
|
|
|
(4.1
|
)%
|
|
|
|
(4.9
|
)%
|
|
|
|
(4.4
|
)%
|
|
|
|
(4.6
|
)%
|
|
|
|
(5.1
|
)%
|
|
|
|
(4.8
|
)%
|
4 to 10 units
|
|
|
|
(5.4
|
)%
|
|
|
|
(4.1
|
)%
|
|
|
|
(3.8
|
)%
|
|
|
|
(5.3
|
)%
|
|
|
|
(5.3
|
)%
|
|
|
|
(6.0
|
)%
|
11 to 50 units
|
|
|
|
(3.2
|
)%
|
|
|
|
(5.3
|
)%
|
|
|
|
(4.4
|
)%
|
|
|
|
(3.9
|
)%
|
|
|
|
(6.4
|
)%
|
|
|
|
(4.8
|
)%
|
51 to 100 units
|
|
|
|
(8.7
|
)%
|
|
|
|
(1.2
|
)%
|
|
|
|
(3.5
|
)%
|
|
|
|
(2.8
|
)%
|
|
|
|
(5.3
|
)%
|
|
|
|
(4.0
|
)%
|
101 to 1,000 units
|
|
|
|
(2.5
|
)%
|
|
|
|
(1.7
|
)%
|
|
|
|
(1.7
|
)%
|
|
|
|
(4.0
|
)%
|
|
|
|
(5.0
|
)%
|
|
|
|
(3.9
|
)%
|
>1,000 units
|
|
|
|
(1.2
|
)%
|
|
|
|
(4.0
|
)%
|
|
|
|
(1.8
|
)%
|
|
|
|
(1.7
|
)%
|
|
|
|
1.1
|
%
|
|
|
|
(0.2
|
)%
|
Total
|
|
|
|
(2.0
|
)%
|
|
|
|
(3.5
|
)%
|
|
|
|
(2.1
|
)%
|
|
|
|
(2.5
|
)%
|
|
|
|
(1.3
|
)%
|
|
|
|
(1.7
|
)%
|
Account size ARPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 3 units
|
|
|
$
|
14.86
|
|
|
|
$
|
14.96
|
|
|
|
$
|
14.98
|
|
|
|
$
|
15.13
|
|
|
|
$
|
15.12
|
|
|
|
$
|
15.22
|
|
4 to 10 units
|
|
|
|
14.12
|
|
|
|
|
14.22
|
|
|
|
|
14.29
|
|
|
|
|
14.38
|
|
|
|
|
14.29
|
|
|
|
|
14.33
|
|
11 to 50 units
|
|
|
|
12.00
|
|
|
|
|
12.07
|
|
|
|
|
11.96
|
|
|
|
|
12.06
|
|
|
|
|
11.96
|
|
|
|
|
12.06
|
|
51 to 100 units
|
|
|
|
10.18
|
|
|
|
|
10.27
|
|
|
|
|
10.34
|
|
|
|
|
10.66
|
|
|
|
|
10.42
|
|
|
|
|
10.47
|
|
101 to 1,000 units
|
|
|
|
8.58
|
|
|
|
|
8.76
|
|
|
|
|
8.89
|
|
|
|
|
8.85
|
|
|
|
|
8.84
|
|
|
|
|
8.84
|
|
>1,000 units
|
|
|
|
7.00
|
|
|
|
|
7.11
|
|
|
|
|
7.11
|
|
|
|
|
7.17
|
|
|
|
|
7.19
|
|
|
|
|
7.23
|
|
Total
|
|
|
$
|
8.06
|
|
|
|
$
|
8.19
|
|
|
|
$
|
8.23
|
|
|
|
$
|
8.29
|
|
|
|
$
|
8.33
|
|
|
|
$
|
8.40
|
|
Cellular:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of activations
|
|
|
|
1,679
|
|
|
|
|
281
|
|
|
|
|
690
|
|
|
|
|
970
|
|
|
|
|
799
|
|
|
|
|
925
|
|
Revenue from cellular services (000's)
|
|
|
$
|
278
|
|
|
|
$
|
108
|
|
|
|
$
|
129
|
|
|
|
$
|
235
|
|
|
|
$
|
163
|
|
|
|
$
|
195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
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|