| [July 27, 2016] |
 |
Spok Reports 2016 Second Quarter Operating Results; Software Bookings Increase, Wireless Trends Improve
Spok
Holdings, Inc. (NASDAQ: SPOK), a global
leader in critical communications, today announced operating results
for the second quarter ended June 30, 2016. In addition, the Company's
Board of Directors declared a regular quarterly dividend of $0.125 per
share, payable on September 9, 2016 to stockholders of record on August
19, 2016.
2016 Second-Quarter Results:
In the 2016 second quarter, consolidated revenue was $44.6 million,
compared to $48.0 million in the second quarter of 2015. Software
revenue was $16.8 million in the second quarter of 2016, compared to
$17.7 million in the second quarter of 2015. Wireless revenue totaled
$27.8 million in the second quarter, compared to $30.3 million in the
prior-year quarter.
Net income for the second quarter of 2016 was $3.5 million, or $0.17 per
diluted share, up from $3.4 million, or $0.16 per diluted share, in the
second quarter of 2015.
Second quarter EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled $8.9 million, or 19.8 percent of
revenue, compared to EBITDA of $9.1 million, or 18.9 percent of revenue,
in the second quarter of 2015.
Other key results and highlights for the second quarter included:
-
Software bookings for the 2016 second quarter were $20.1 million,
in-line with the prior year quarter and up nearly 33 percent from the
prior quarter. Second quarter bookings included $10.2 million of
operations bookings and $9.9 million of maintenance renewals.
-
Software backlog totaled $39.5 million at June 30, 2016, up from $36.8
million in the prior quarter.
-
Of the $16.8 million in software revenue for the second quarter, $7.7
million was operations revenue and $9.1 million was maintenance
revenue, compared to $9.3 million and $8.4 million, respectively, of
the $17.7 million in software revenue in the second quarter of 2015.
-
The renewal rate for software maintenance in the second quarter of
2016 continued at greater than 99 percent.
-
The quarterly rate of paging unit erosion slowed to 0.8 percent in the
second quarter of 2016, compared to 1.6 percent in the year-earlier
quarter. Net paging unit losses were 9,000 in the second quarter of
2016, down from 19,000 in the second quarter of 2015 and less than
half of net pager losses in the prior quarter. Paging units in service
at June 30, 2016 totaled 1,144,000, compared to 1,211,000 at the end
of the prior year quarter.
-
The quarterly rate of wireless revenue erosion continued to slow to
1.1 percent in the second quarter of 2016 versus 1.5 percent in the
year-earlier quarter.
-
Total paging ARPU (average revenue per unit) was $7.71 in the second
quarter of 2016, compared to $7.77 in the prior quarter and $7.86 in
the year-earlier quarter.
-
Consolidated operating expenses (excluding depreciation, amortization
and accretion) totaled $35.8 million in the second quarter of 2016,
down from $38.9 million in the year-earlier quarter, and $36.3 million
in the prior quarter.
-
Capital expenses were $1.5 million in the second quarter of 2016,
compared to $2 million in the year-earlier quarter.
-
The number of full-time equivalent employees at June 30, 2016 totaled
597, compared to 600 at year-end 2015 and 608 at June 30, 2015.
-
Capital returned to stockholders in the second quarter of 2016 totaled
$3.7 million, in the form of $2.6 million from dividends and $1.1
million from share repurchases.
-
The Company's cash balance at June 30, 2016 was $117.1 million,
unchanged from June 30, 2015, and up from $111.3 million at December
31, 2015.
2016 Year-to-Date Results:
In the first half of 2016, consolidated revenue was $90 million,
compared to $96.1 million in the first half of 2015. Software revenue
was $34 million in the first half of 2016, compared to $35.2 million in
the prior year period. Wireless revenue totaled $56 million in the first
half of 2016, compared to $60.9 million in the year-to-date 2015 period.
Net income for the first half of 2016 was $6.9 million, or $0.33 per
diluted share, compared to $7.3 million, or $0.33 per diluted share, in
the 2015 year-to-date period.
First half 2016 EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled $18.0 million, or 20 percent of
revenues, compared to $19.1 million, or 19.9 percent of revenue, in the
first half of 2015.
Management Commentary:
"We are pleased with our performance in the second quarter of 2016 and
believe that we are beginning to see the benefits from the investments
that we made to enhance and upgrade our product development team and
tools, as well as our sales infrastructure and management," said Vincent
D. Kelly, chief executive officer. "We saw strong performance in a
number of key operating measures and solid sequential improvements in
sales bookings and backlog levels, operating expense management, cash
flow and subscriber retention. We believe that continued investments
will yield significant future benefits in the form of our improved,
integrated communication platform, Spok Care Connect®, and
continued momentum in bookings levels. Overall, we continued to operate
profitably, enhance our product offerings, and further strengthen our
balance sheet. Our ability to generate healthy cash flows allowed us to
execute against our capital allocation strategy, returning capital to
shareholders while adding more than $5 million to our cash balances."
Commenting on software results, Kelly said: "As anticipated, software
revenues were in-line with prior quarter levels as we positioned
ourselves for the second half of the year, when software sales tend to
be more robust." Kelly attributed the ability to maintain sequential
software revenue levels primarily to a more than 99 percent renewal rate
on software maintenance contracts. Similar to Spok's wireless revenue
stream, software maintenance revenue is a largely recurring revenue
stream that provides the Company with a more stable revenue and margin
base.
Kelly said second quarter bookings of $20.1 million were up sharply from
$15.1 million in the prior quarter, and included $9.9 million of
maintenance renewals bookings, a record high for the second quarter.
Additionally, software backlog of $39.5 million at June 30th was up more
than 7 percent from the prior quarter level. "We will continue to build
on the sequential momentum we saw in the second quarter. We are
encouraged as bookings included sales to both new and current customers,
with existing customers adding products and applications to expand their
portfolio of communications solutions. Customer demand remained
strongest for upgrades to call center solutions, healthcare applications
to increase patient safety, and improved nursing workflows." Kelly
added: "We continue to see growing demand for our software solutions for
critical smartphone communications, secure texting, and emergency
management, as well as clinical alerting, and we are proud to be working
with more than 2,000 hospitals world-wide, including all of the best
adult and children's hospitals as defined by U.S. News & World Report."
Kelly also noted that in addition to the Company's quarterly financial
performance, progress was made in several other areas, including product
development, sales strategy and key strategic partnership agreements.
"Spok continues to generate activity and sales momentum at the
conferences we attend," commented Kelly. "In June, we saw tremendous
interest at those conferences, which included the Call Center Conference
& Expo, as well as the National Emergency Number Association (NENA)
conference earlier in the month. Early in May, we were also pleased to
publish the results of a customer study demonstrating how Spok customers
are achieving notable improvements in staff efficiency and patient care
coordination workflows throughout their organizations using Spok Care
Connect solutions. These hospitals and health systems are reporting
improvements, including faster code call processes, compliance with
Joint Commission standards, reduced patient discharge times, and
increased patient satisfaction. Please visit our website to see these
customer success statistics in our new infographic, The ROI of
Communication Technology. We are confident that Spok is well positioned
to capitalize on our sales and marketing efforts in order to stimulate
long-term growth."
The Company posted solid results for its wireless products and services
in the second quarter. Gross pager placements of 39,000 were in-line
with the year-earlier quarter, and the highest level in the past twelve
months, while gross disconnects of 48,000 improved sharply from 59,000
in the second quarter of 2015. "As a result, annual net pager losses
declined to an historical low of 5.5 percent from the prior year's
second quarter, and were 0.8 percent in the second quarter, down
significantly from 1.6 percent in the prior-year quarter," continued
Kelly. "Overall, wireless sales efforts continued to focus primarily on
our core market segments of Healthcare, Government and Large Enterprise,
which represented approximately 91.6 percent of our subscriber base and
89.6 percent of our paging revenue at quarter end. Healthcare comprised
78.2 percent of our subscriber base, and continued to be our best
performing market segment with the highest rate of gross placements and
lowest rate of unit disconnects."
Spok returned capital to stockholders, totaling $3.7 million, in the
second quarter of 2016. During the period, the Company paid $2.6 million
in dividends and repurchased 65,791 shares of common stock, totaling
$1.1 million, under its stock buy-back program. Kelly added, "Throughout
2016, we will remain focused on returning value to our shareholders
through our multi-faceted capital allocation strategy, which includes
dividends, share repurchases and key strategic investments in our
products and business designed to create sustainable growth."
Shawn E. Endsley, chief financial officer, said: "Continued expense
management and strong financial discipline have allowed us to invest in
our business for long-term growth. Our ability to align our expense base
with the market demand we are seeing and drive high renewal rates in our
recurring revenue categories, helped Spok maintain solid operating cash
flow and operating margins for the quarter. We also strengthened our
balance sheet, recording a cash balance of $117.1 million at June 30,
2016, and continued to operate as a debt-free company at quarter-end."
Business Outlook:
Commenting on the Company's previously provided financial guidance for
2016, Endsley noted: "As a result of the solid performance we saw in the
second quarter, we are maintaining the 2016 guidance range that we
provided last quarter." With regard to financial guidance for 2016,
Endsley reiterated that the Company expects total revenue to range from
$174 million to $192 million, operating expenses (excluding
depreciation, amortization and accretion) to range from $153 million to
$159 million, and capital expenditures to range from $6 million to $8
million.
2016 Second-Quarter Call and Replay:
Spok plans to host a conference call for investors to discuss its 2016
second quarter results at 10:00 a.m. ET on Thursday, July 28, 2016.
Dial-in numbers for the call are 719-325-2244 or 888-510-1786. The pass
code for the call is 3269514. A replay of the call will be available
from 1:00 p.m. ET on July 28, 2016 until 1:00 p.m. ET on Thursday,
August 11, 2016. To listen to the replay, please register at http:tinyurl.com/spok2016Q2earningsreplay.
Please enter the registration information, and you will be given access
to the replay.
About Spok
Spok, Inc., a wholly owned subsidiary of Spok
Holdings, Inc. (NASDAQ: SPOK), headquartered in Springfield, Va., is
proud to be the global 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. Our customers send over 100 million messages
each month through their Spok® solutions, and they rely on
Spok for workflow improvement, secure texting, paging services, contact
center optimization, and public safety response. When communications
matter, Spok delivers.
Spok is a trademark of Spok Holdings, Inc.
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
|
|
|
|
6/30/2016
|
|
6/30/2015
|
|
|
6/30/2016
|
|
6/30/2015
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$
|
27,859
|
|
|
$
|
30,222
|
|
|
|
$
|
56,031
|
|
|
$
|
60,912
|
|
|
Software
|
|
|
16,776
|
|
|
|
17,747
|
|
|
|
|
33,992
|
|
|
|
35,195
|
|
|
Total revenue
|
|
|
44,635
|
|
|
|
47,969
|
|
|
|
|
90,023
|
|
|
|
96,107
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
7,513
|
|
|
|
9,131
|
|
|
|
|
15,528
|
|
|
|
17,944
|
|
|
Service, rental and maintenance
|
|
|
11,399
|
|
|
|
11,003
|
|
|
|
|
22,612
|
|
|
|
22,260
|
|
|
Selling and marketing
|
|
|
6,429
|
|
|
|
6,790
|
|
|
|
|
12,957
|
|
|
|
13,838
|
|
|
General and administrative
|
|
|
10,439
|
|
|
|
10,472
|
|
|
|
|
20,949
|
|
|
|
21,473
|
|
|
Severance
|
|
|
-
|
|
|
|
1,504
|
|
|
|
|
(3
|
)
|
|
|
1,504
|
|
|
Depreciation, amortization and accretion
|
|
|
3,235
|
|
|
|
3,448
|
|
|
|
|
6,558
|
|
|
|
7,195
|
|
|
Total operating expenses
|
|
|
39,015
|
|
|
|
42,348
|
|
|
|
|
78,601
|
|
|
|
84,214
|
|
|
% of total revenue
|
|
|
87.4
|
%
|
|
|
88.3
|
%
|
|
|
|
87.3
|
%
|
|
|
87.6
|
%
|
|
Operating income
|
|
|
5,620
|
|
|
|
5,621
|
|
|
|
|
11,422
|
|
|
|
11,893
|
|
|
% of total revenue
|
|
|
12.6
|
%
|
|
|
11.7
|
%
|
|
|
|
12.7
|
%
|
|
|
12.4
|
%
|
|
Interest income (expense), net
|
|
|
61
|
|
|
|
3
|
|
|
|
|
109
|
|
|
|
2
|
|
|
Other income (expense), net
|
|
|
104
|
|
|
|
264
|
|
|
|
|
357
|
|
|
|
325
|
|
|
Income before income tax expense
|
|
|
5,785
|
|
|
|
5,888
|
|
|
|
|
11,888
|
|
|
|
12,220
|
|
|
Income tax benefit (expense)
|
|
|
(2,334
|
)
|
|
|
(2,512
|
)
|
|
|
|
(4,993
|
)
|
|
|
(4,927
|
)
|
|
Net income
|
|
$
|
3,451
|
|
|
$
|
3,376
|
|
|
|
$
|
6,895
|
|
|
$
|
7,293
|
|
|
Basic net income per common share
|
|
$
|
0.17
|
|
|
$
|
0.16
|
|
|
|
$
|
0.33
|
|
|
$
|
0.33
|
|
|
Diluted net income per common share
|
|
$
|
0.17
|
|
|
$
|
0.16
|
|
|
|
$
|
0.33
|
|
|
$
|
0.33
|
|
|
Basic weighted average common shares outstanding
|
|
|
20,544,327
|
|
|
|
21,677,299
|
|
|
|
|
20,614,023
|
|
|
|
21,787,434
|
|
|
Diluted weighted average common shares outstanding
|
|
|
20,705,206
|
|
|
|
21,735,829
|
|
|
|
|
20,831,740
|
|
|
|
21,843,591
|
|
|
Reconciliation of operating income to EBITDA (b):
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
5,620
|
|
|
$
|
5,621
|
|
|
|
$
|
11,422
|
|
|
$
|
11,893
|
|
|
Add back: depreciation, amortization and accretion
|
|
|
3,235
|
|
|
|
3,448
|
|
|
|
|
6,558
|
|
|
|
7,195
|
|
|
EBITDA
|
|
$
|
8,855
|
|
|
$
|
9,069
|
|
|
|
$
|
17,980
|
|
|
$
|
19,088
|
|
|
% of total revenue
|
|
|
19.8
|
%
|
|
|
18.9
|
%
|
|
|
|
20.0
|
%
|
|
|
19.9
|
%
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
1,144
|
|
|
|
1,211
|
|
|
|
|
1,144
|
|
|
|
1,211
|
|
|
Average revenue per unit (ARPU)
|
|
$
|
7.71
|
|
|
$
|
7.86
|
|
|
|
$
|
7.72
|
|
|
$
|
7.87
|
|
|
Bookings
|
|
$
|
20,063
|
|
|
$
|
21,027
|
|
|
|
$
|
35,170
|
|
|
$
|
38,767
|
|
|
Backlog
|
|
$
|
39,475
|
|
|
$
|
43,524
|
|
|
|
$
|
39,475
|
|
|
$
|
43,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
(b) EBITDA or earnings before interest, taxes, depreciation,
amortization and accretion is a non-GAAP measure and is presented
for analytical purposes only
|
|
|
|
|
|
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
|
|
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
|
12/31/2014
|
|
9/30/2014
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$
|
27,859
|
|
|
$
|
28,172
|
|
|
$
|
28,727
|
|
|
$
|
29,375
|
|
|
$
|
30,222
|
|
|
$
|
30,690
|
|
|
$
|
31,678
|
|
|
$
|
32,855
|
|
|
Software
|
|
|
16,776
|
|
|
|
17,216
|
|
|
|
18,612
|
|
|
|
16,806
|
|
|
|
17,747
|
|
|
|
17,448
|
|
|
|
19,591
|
|
|
|
16,936
|
|
|
Total revenue
|
|
|
44,635
|
|
|
|
45,388
|
|
|
|
47,339
|
|
|
|
46,181
|
|
|
|
47,969
|
|
|
|
48,138
|
|
|
|
51,269
|
|
|
|
49,791
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
7,513
|
|
|
|
8,017
|
|
|
|
8,035
|
|
|
|
7,871
|
|
|
|
9,131
|
|
|
|
8,813
|
|
|
|
10,571
|
|
|
|
8,000
|
|
|
Service, rental and maintenance
|
|
|
11,399
|
|
|
|
11,213
|
|
|
|
11,024
|
|
|
|
11,117
|
|
|
|
11,003
|
|
|
|
11,256
|
|
|
|
11,285
|
|
|
|
10,988
|
|
|
Selling and marketing
|
|
|
6,429
|
|
|
|
6,529
|
|
|
|
7,036
|
|
|
|
6,572
|
|
|
|
6,790
|
|
|
|
7,048
|
|
|
|
7,915
|
|
|
|
7,072
|
|
|
General and administrative
|
|
|
10,439
|
|
|
|
10,510
|
|
|
|
10,276
|
|
|
|
10,410
|
|
|
|
10,472
|
|
|
|
11,001
|
|
|
|
11,905
|
|
|
|
10,866
|
|
|
Severance
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
1,056
|
|
|
|
141
|
|
|
|
1,504
|
|
|
|
-
|
|
|
|
926
|
|
|
|
545
|
|
|
Depreciation, amortization and accretion
|
|
|
3,235
|
|
|
|
3,323
|
|
|
|
3,362
|
|
|
|
3,413
|
|
|
|
3,448
|
|
|
|
3,747
|
|
|
|
4,049
|
|
|
|
4,247
|
|
|
Total operating expenses
|
|
|
39,015
|
|
|
|
39,588
|
|
|
|
40,789
|
|
|
|
39,524
|
|
|
|
42,348
|
|
|
|
41,865
|
|
|
|
46,651
|
|
|
|
41,718
|
|
|
% of total revenue
|
|
|
87.4
|
%
|
|
|
87.2
|
%
|
|
|
86.2
|
%
|
|
|
85.6
|
%
|
|
|
88.3
|
%
|
|
|
87.0
|
%
|
|
|
91.0
|
%
|
|
|
83.8
|
%
|
|
Operating income
|
|
|
5,620
|
|
|
|
5,800
|
|
|
|
6,550
|
|
|
|
6,657
|
|
|
|
5,621
|
|
|
|
6,273
|
|
|
|
4,618
|
|
|
|
8,073
|
|
|
% of total revenue
|
|
|
12.6
|
%
|
|
|
12.8
|
%
|
|
|
13.8
|
%
|
|
|
14.4
|
%
|
|
|
11.7
|
%
|
|
|
13.0
|
%
|
|
|
9.0
|
%
|
|
|
16.2
|
%
|
|
Interest income (expense), net
|
|
|
61
|
|
|
|
49
|
|
|
|
13
|
|
|
|
1
|
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
(262
|
)
|
|
|
(63
|
)
|
|
Other income (expense), net
|
|
|
104
|
|
|
|
254
|
|
|
|
71
|
|
|
|
784
|
|
|
|
264
|
|
|
|
60
|
|
|
|
(188
|
)
|
|
|
(2
|
)
|
|
Income before income tax expense
|
|
|
5,785
|
|
|
|
6,103
|
|
|
|
6,634
|
|
|
|
7,442
|
|
|
|
5,888
|
|
|
|
6,332
|
|
|
|
4,168
|
|
|
|
8,008
|
|
|
Income tax benefit (expense)
|
|
|
(2,334
|
)
|
|
|
(2,659
|
)
|
|
|
66,087
|
|
|
|
(3,222
|
)
|
|
|
(2,512
|
)
|
|
|
(2,415
|
)
|
|
|
2,744
|
|
|
|
(3,356
|
)
|
|
Net income
|
|
$
|
3,451
|
|
|
$
|
3,444
|
|
|
$
|
72,721
|
|
|
$
|
4,220
|
|
|
$
|
3,376
|
|
|
$
|
3,917
|
|
|
$
|
6,912
|
|
|
$
|
4,652
|
|
|
Basic net income per common share
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
3.54
|
|
|
$
|
0.20
|
|
|
$
|
0.16
|
|
|
$
|
0.18
|
|
|
$
|
0.32
|
|
|
$
|
0.21
|
|
|
Diluted net income per common share
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
3.53
|
|
|
$
|
0.20
|
|
|
$
|
0.16
|
|
|
$
|
0.18
|
|
|
$
|
0.31
|
|
|
$
|
0.21
|
|
|
Basic weighted average common shares outstanding
|
|
|
20,544,327
|
|
|
|
20,683,719
|
|
|
|
20,528,326
|
|
|
|
21,301,311
|
|
|
|
21,677,299
|
|
|
|
21,898,792
|
|
|
|
21,554,746
|
|
|
|
21,651,347
|
|
|
Diluted weighted average common shares outstanding
|
|
|
20,705,206
|
|
|
|
20,845,661
|
|
|
|
20,628,053
|
|
|
|
21,352,838
|
|
|
|
21,735,829
|
|
|
|
22,053,015
|
|
|
|
22,101,600
|
|
|
|
22,135,554
|
|
|
Reconciliation of operating income to EBITDA (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
5,620
|
|
|
$
|
5,800
|
|
|
$
|
6,550
|
|
|
$
|
6,657
|
|
|
$
|
5,621
|
|
|
$
|
6,273
|
|
|
$
|
4,618
|
|
|
$
|
8,073
|
|
|
Add back: depreciation, amortization and accretion
|
|
|
3,235
|
|
|
|
3,323
|
|
|
|
3,362
|
|
|
|
3,413
|
|
|
|
3,448
|
|
|
|
3,747
|
|
|
|
4,049
|
|
|
|
4,247
|
|
|
EBITDA
|
|
$
|
8,855
|
|
|
$
|
9,123
|
|
|
$
|
9,912
|
|
|
$
|
10,070
|
|
|
$
|
9,069
|
|
|
$
|
10,020
|
|
|
$
|
8,667
|
|
|
$
|
12,320
|
|
|
% of total revenue
|
|
|
19.8
|
%
|
|
|
20.1
|
%
|
|
|
20.9
|
%
|
|
|
21.8
|
%
|
|
|
18.9
|
%
|
|
|
20.8
|
%
|
|
|
16.9
|
%
|
|
|
24.7
|
%
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
1,144
|
|
|
|
1,153
|
|
|
|
1,173
|
|
|
|
1,192
|
|
|
|
1,211
|
|
|
|
1,230
|
|
|
|
1,256
|
|
|
|
1,274
|
|
|
Average revenue per unit (ARPU)
|
|
$
|
7.71
|
|
|
$
|
7.77
|
|
|
$
|
7.79
|
|
|
$
|
7.82
|
|
|
$
|
7.86
|
|
|
$
|
7.91
|
|
|
$
|
7.92
|
|
|
$
|
7.97
|
|
|
Bookings
|
|
$
|
20,063
|
|
|
$
|
15,106
|
|
|
$
|
18,511
|
|
|
$
|
16,746
|
|
|
$
|
21,027
|
|
|
$
|
17,740
|
|
|
$
|
22,272
|
|
|
$
|
20,362
|
|
|
Backlog
|
|
$
|
39,475
|
|
|
$
|
36,766
|
|
|
$
|
38,650
|
|
|
$
|
41,639
|
|
|
$
|
43,524
|
|
|
$
|
40,551
|
|
|
$
|
42,391
|
|
|
$
|
42,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
(b) EBITDA or earnings before interest, taxes, depreciation,
amortization and accretion is a non-GAAP measure and is presented
for analytical purposes only
|
|
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2016
|
|
|
12/31/2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
117,095
|
|
|
|
$
|
111,332
|
|
|
Accounts receivable, net
|
|
|
23,737
|
|
|
|
|
22,638
|
|
|
Prepaid expenses and other
|
|
|
4,116
|
|
|
|
|
5,352
|
|
|
Inventory
|
|
|
2,129
|
|
|
|
|
2,291
|
|
|
Total current assets
|
|
|
147,077
|
|
|
|
|
141,613
|
|
|
Property and equipment, net
|
|
|
14,297
|
|
|
|
|
15,386
|
|
|
Goodwill
|
|
|
133,031
|
|
|
|
|
133,031
|
|
|
Other intangible assets, net
|
|
|
12,817
|
|
|
|
|
14,964
|
|
|
Deferred income tax assets, net
|
|
|
79,644
|
|
|
|
|
83,983
|
|
|
Other assets
|
|
|
1,541
|
|
|
|
|
1,445
|
|
|
Total assets
|
|
$
|
388,407
|
|
|
|
$
|
390,422
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
8,370
|
|
|
|
$
|
9,247
|
|
|
Accrued compensation and benefits
|
|
|
11,618
|
|
|
|
|
10,864
|
|
|
Deferred revenue
|
|
|
28,239
|
|
|
|
|
27,045
|
|
|
Total current liabilities
|
|
|
48,227
|
|
|
|
|
47,156
|
|
|
Deferred revenue
|
|
|
674
|
|
|
|
|
741
|
|
|
Other long-term liabilities
|
|
|
8,960
|
|
|
|
|
8,972
|
|
|
Total liabilities
|
|
|
57,861
|
|
|
|
|
56,869
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
|
-
|
|
|
Common stock
|
|
|
2
|
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
|
105,867
|
|
|
|
|
110,435
|
|
|
Retained earnings
|
|
|
224,677
|
|
|
|
|
223,116
|
|
|
Total stockholders' equity
|
|
|
330,546
|
|
|
|
|
333,553
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
388,407
|
|
|
|
$
|
390,422
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
|
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
|
|
|
|
6/30/2016
|
|
|
6/30/2015
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
6,895
|
|
|
|
$
|
7,293
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation, amortization and accretion
|
|
|
6,558
|
|
|
|
|
7,195
|
|
|
Amortization of deferred financing costs
|
|
|
-
|
|
|
|
|
-
|
|
|
Deferred income (benefit) tax expense
|
|
|
4,346
|
|
|
|
|
4,086
|
|
|
Stock based compensation
|
|
|
1,368
|
|
|
|
|
1,104
|
|
|
Provisions for doubtful accounts, service credits and other
|
|
|
322
|
|
|
|
|
716
|
|
|
Adjustments of non-cash transaction taxes
|
|
|
(169
|
)
|
|
|
|
(97
|
)
|
|
Loss/(Gain) on disposals of property and equipment
|
|
|
(1
|
)
|
|
|
|
(166
|
)
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(1,421
|
)
|
|
|
|
2,239
|
|
|
Prepaid expenses, intangible assets and other assets
|
|
|
1,197
|
|
|
|
|
741
|
|
|
Accounts payable, accrued liabilities and other
|
|
|
(358
|
)
|
|
|
|
(685
|
)
|
|
Customer deposits and deferred revenue
|
|
|
1,142
|
|
|
|
|
3,070
|
|
|
Net cash provided by operating activities
|
|
|
19,879
|
|
|
|
|
25,496
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(2,982
|
)
|
|
|
|
(3,033
|
)
|
|
Proceeds from disposals of property and equipment
|
|
|
1
|
|
|
|
|
180
|
|
|
Net cash used in investing activities
|
|
|
(2,981
|
)
|
|
|
|
(2,853
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Cash distributions to stockholders
|
|
|
(5,150
|
)
|
|
|
|
(6,069
|
)
|
|
Purchase of common stock (including commissions)
|
|
|
(5,985
|
)
|
|
|
|
(3,475
|
)
|
|
Employee stock based compensation tax withholding
|
|
|
-
|
|
|
|
|
(3,825
|
)
|
|
Net cash used in financing activities
|
|
|
(11,135
|
)
|
|
|
|
(13,369
|
)
|
|
Net increase in cash and cash equivalents
|
|
|
5,763
|
|
|
|
|
9,274
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
111,332
|
|
|
|
|
107,869
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
117,095
|
|
|
|
$
|
117,143
|
|
|
Supplemental disclosure:
|
|
|
|
|
|
|
Income taxes paid
|
|
$
|
598
|
|
|
|
$
|
337
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
CONSOLIDATED REVENUE
|
|
SUPPLEMENTAL INFORMATION (a)
|
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
|
12/31/2014
|
|
9/30/2014
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paging
|
|
$
|
26,564
|
|
|
$
|
27,101
|
|
|
$
|
27,637
|
|
|
$
|
28,196
|
|
|
$
|
28,782
|
|
|
$
|
29,491
|
|
|
$
|
30,071
|
|
|
$
|
30,776
|
|
|
Non-paging
|
|
|
1,295
|
|
|
|
1,071
|
|
|
|
1,090
|
|
|
|
1,179
|
|
|
|
1,440
|
|
|
|
1,199
|
|
|
|
1,607
|
|
|
|
2,079
|
|
|
Total wireless revenue
|
|
$
|
27,859
|
|
|
$
|
28,172
|
|
|
$
|
28,727
|
|
|
$
|
29,375
|
|
|
$
|
30,222
|
|
|
$
|
30,690
|
|
|
$
|
31,678
|
|
|
$
|
32,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
503
|
|
|
|
498
|
|
|
|
471
|
|
|
|
392
|
|
|
|
419
|
|
|
|
398
|
|
|
|
365
|
|
|
|
458
|
|
|
License
|
|
|
1,691
|
|
|
|
1,593
|
|
|
|
2,733
|
|
|
|
1,457
|
|
|
|
3,011
|
|
|
|
2,595
|
|
|
|
3,474
|
|
|
|
2,374
|
|
|
Services
|
|
|
4,202
|
|
|
|
4,315
|
|
|
|
4,610
|
|
|
|
4,600
|
|
|
|
4,609
|
|
|
|
5,018
|
|
|
|
5,579
|
|
|
|
4,305
|
|
|
Equipment
|
|
|
1,250
|
|
|
|
1,729
|
|
|
|
1,764
|
|
|
|
1,434
|
|
|
|
1,301
|
|
|
|
1,374
|
|
|
|
2,145
|
|
|
|
1,930
|
|
|
Operations revenue
|
|
$
|
7,646
|
|
|
$
|
8,135
|
|
|
$
|
9,578
|
|
|
$
|
7,883
|
|
|
$
|
9,340
|
|
|
$
|
9,385
|
|
|
$
|
11,563
|
|
|
$
|
9,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance revenue
|
|
$
|
9,130
|
|
|
$
|
9,081
|
|
|
$
|
9,034
|
|
|
$
|
8,923
|
|
|
$
|
8,407
|
|
|
$
|
8,063
|
|
|
$
|
8,028
|
|
|
$
|
7,869
|
|
|
Total software revenue
|
|
$
|
16,776
|
|
|
$
|
17,216
|
|
|
$
|
18,612
|
|
|
$
|
16,806
|
|
|
$
|
17,747
|
|
|
$
|
17,448
|
|
|
$
|
19,591
|
|
|
$
|
16,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
44,635
|
|
|
$
|
45,388
|
|
|
$
|
47,339
|
|
|
$
|
46,181
|
|
|
$
|
47,969
|
|
|
$
|
48,138
|
|
|
$
|
51,269
|
|
|
$
|
49,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
CONSOLIDATED OPERATING EXPENSES
|
|
SUPPLEMENTAL INFORMATION (a)
|
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
|
12/31/2014
|
|
9/30/2014
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
$
|
4,406
|
|
|
$
|
4,634
|
|
|
$
|
4,414
|
|
|
$
|
4,277
|
|
|
$
|
4,274
|
|
|
$
|
4,157
|
|
|
$
|
4,222
|
|
|
$
|
3,743
|
|
|
Cost of sales
|
|
|
2,227
|
|
|
|
2,673
|
|
|
|
2,902
|
|
|
|
2,549
|
|
|
|
3,801
|
|
|
|
3,620
|
|
|
|
5,225
|
|
|
|
3,098
|
|
|
Stock based compensation
|
|
|
58
|
|
|
|
49
|
|
|
|
33
|
|
|
|
33
|
|
|
|
34
|
|
|
|
34
|
|
|
|
81
|
|
|
|
108
|
|
|
Other
|
|
|
822
|
|
|
|
661
|
|
|
|
686
|
|
|
|
1,012
|
|
|
|
1,022
|
|
|
|
1,002
|
|
|
|
1,043
|
|
|
|
1,051
|
|
|
Total cost of revenue
|
|
|
7,513
|
|
|
|
8,017
|
|
|
|
8,035
|
|
|
|
7,871
|
|
|
|
9,131
|
|
|
|
8,813
|
|
|
|
10,571
|
|
|
|
8,000
|
|
|
Service, rental and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
5,125
|
|
|
|
5,072
|
|
|
|
4,815
|
|
|
|
4,613
|
|
|
|
4,555
|
|
|
|
4,652
|
|
|
|
4,533
|
|
|
|
4,106
|
|
|
Site rent
|
|
|
3,668
|
|
|
|
3,660
|
|
|
|
3,663
|
|
|
|
3,763
|
|
|
|
3,783
|
|
|
|
3,766
|
|
|
|
3,834
|
|
|
|
3,914
|
|
|
Telecommunications
|
|
|
1,127
|
|
|
|
1,222
|
|
|
|
1,218
|
|
|
|
1,392
|
|
|
|
1,288
|
|
|
|
1,343
|
|
|
|
1,487
|
|
|
|
1,548
|
|
|
Stock based compensation
|
|
|
63
|
|
|
|
52
|
|
|
|
29
|
|
|
|
29
|
|
|
|
29
|
|
|
|
29
|
|
|
|
30
|
|
|
|
56
|
|
|
Other
|
|
|
1,416
|
|
|
|
1,207
|
|
|
|
1,299
|
|
|
|
1,320
|
|
|
|
1,348
|
|
|
|
1,466
|
|
|
|
1,401
|
|
|
|
1,364
|
|
|
Total service, rental and maintenance
|
|
|
11,399
|
|
|
|
11,213
|
|
|
|
11,024
|
|
|
|
11,117
|
|
|
|
11,003
|
|
|
|
11,256
|
|
|
|
11,285
|
|
|
|
10,988
|
|
|
Selling and marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
3,510
|
|
|
|
3,666
|
|
|
|
3,780
|
|
|
|
3,664
|
|
|
|
3,732
|
|
|
|
3,916
|
|
|
|
3,945
|
|
|
|
3,859
|
|
|
Commissions
|
|
|
1,559
|
|
|
|
1,525
|
|
|
|
1,754
|
|
|
|
1,858
|
|
|
|
1,792
|
|
|
|
1,836
|
|
|
|
2,481
|
|
|
|
1,949
|
|
|
Stock based compensation
|
|
|
75
|
|
|
|
48
|
|
|
|
(7
|
)
|
|
|
16
|
|
|
|
51
|
|
|
|
51
|
|
|
|
131
|
|
|
|
151
|
|
|
Other
|
|
|
1,285
|
|
|
|
1,290
|
|
|
|
1,509
|
|
|
|
1,034
|
|
|
|
1,215
|
|
|
|
1,245
|
|
|
|
1,358
|
|
|
|
1,113
|
|
|
Total selling and marketing
|
|
|
6,429
|
|
|
|
6,529
|
|
|
|
7,036
|
|
|
|
6,572
|
|
|
|
6,790
|
|
|
|
7,048
|
|
|
|
7,915
|
|
|
|
7,072
|
|
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
4,306
|
|
|
|
4,392
|
|
|
|
4,029
|
|
|
|
4,320
|
|
|
|
4,611
|
|
|
|
4,879
|
|
|
|
4,737
|
|
|
|
4,217
|
|
|
Stock based compensation
|
|
|
534
|
|
|
|
488
|
|
|
|
316
|
|
|
|
316
|
|
|
|
548
|
|
|
|
329
|
|
|
|
780
|
|
|
|
791
|
|
|
Facility rent
|
|
|
810
|
|
|
|
839
|
|
|
|
856
|
|
|
|
868
|
|
|
|
841
|
|
|
|
941
|
|
|
|
830
|
|
|
|
863
|
|
|
Outside services
|
|
|
1,921
|
|
|
|
1,726
|
|
|
|
1,783
|
|
|
|
1,864
|
|
|
|
1,728
|
|
|
|
1,786
|
|
|
|
1,786
|
|
|
|
1,698
|
|
|
Taxes, licenses and permits
|
|
|
1,060
|
|
|
|
1,055
|
|
|
|
1,132
|
|
|
|
1,068
|
|
|
|
1,150
|
|
|
|
1,125
|
|
|
|
1,283
|
|
|
|
1,788
|
|
|
Other
|
|
|
1,808
|
|
|
|
2,010
|
|
|
|
2,160
|
|
|
|
1,974
|
|
|
|
1,594
|
|
|
|
1,941
|
|
|
|
2,489
|
|
|
|
1,509
|
|
|
Total general and administrative
|
|
|
10,439
|
|
|
|
10,510
|
|
|
|
10,276
|
|
|
|
10,410
|
|
|
|
10,472
|
|
|
|
11,001
|
|
|
|
11,905
|
|
|
|
10,866
|
|
|
Severance
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
1,056
|
|
|
|
141
|
|
|
|
1,504
|
|
|
|
-
|
|
|
|
926
|
|
|
|
545
|
|
|
Depreciation, amortization and accretion
|
|
|
3,235
|
|
|
|
3,323
|
|
|
|
3,362
|
|
|
|
3,413
|
|
|
|
3,448
|
|
|
|
3,747
|
|
|
|
4,049
|
|
|
|
4,247
|
|
|
Operating expenses
|
|
$
|
39,015
|
|
|
$
|
39,588
|
|
|
$
|
40,789
|
|
|
$
|
39,524
|
|
|
$
|
42,348
|
|
|
$
|
41,865
|
|
|
$
|
46,651
|
|
|
$
|
41,718
|
|
|
Capital expenditures
|
|
$
|
1,537
|
|
|
$
|
1,445
|
|
|
$
|
2,024
|
|
|
$
|
1,318
|
|
|
$
|
1,992
|
|
|
$
|
1,040
|
|
|
$
|
1,352
|
|
|
$
|
1,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
UNITS IN SERVICE ACTIVITY, MARKET SEGMENT, CHURN
|
|
AND AVERAGE REVENUE PER UNIT (ARPU) (a)
|
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
|
3/31/2015
|
|
12/31/2014
|
|
9/30/2014
|
|
Paging units in service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning units in service (000's)
|
|
|
1,153
|
|
|
|
1,173
|
|
|
|
1,192
|
|
|
|
1,211
|
|
|
|
1,230
|
|
|
|
1,256
|
|
|
|
1,274
|
|
|
|
1,299
|
|
|
Gross placements
|
|
|
39
|
|
|
|
28
|
|
|
|
31
|
|
|
|
36
|
|
|
|
40
|
|
|
|
29
|
|
|
|
35
|
|
|
|
45
|
|
|
Gross disconnects
|
|
|
(48
|
)
|
|
|
(48
|
)
|
|
|
(50
|
)
|
|
|
(55
|
)
|
|
|
(59
|
)
|
|
|
(55
|
)
|
|
|
(53
|
)
|
|
|
(70
|
)
|
|
Net change
|
|
|
(9
|
)
|
|
|
(20
|
)
|
|
|
(19
|
)
|
|
|
(19
|
)
|
|
|
(19
|
)
|
|
|
(26
|
)
|
|
|
(18
|
)
|
|
|
(25
|
)
|
|
Ending units in service
|
|
|
1,144
|
|
|
|
1,153
|
|
|
|
1,173
|
|
|
|
1,192
|
|
|
|
1,211
|
|
|
|
1,230
|
|
|
|
1,256
|
|
|
|
1,274
|
|
|
End of period units in service % of total (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
78.2
|
%
|
|
|
77.5
|
%
|
|
|
77.0
|
%
|
|
|
76.3
|
%
|
|
|
75.9
|
%
|
|
|
74.6
|
%
|
|
|
74.1
|
%
|
|
|
73.6
|
%
|
|
Government
|
|
|
6.8
|
%
|
|
|
6.9
|
%
|
|
|
7.2
|
%
|
|
|
7.2
|
%
|
|
|
7.3
|
%
|
|
|
7.6
|
%
|
|
|
7.8
|
%
|
|
|
7.9
|
%
|
|
Large enterprise
|
|
|
6.6
|
%
|
|
|
6.9
|
%
|
|
|
6.9
|
%
|
|
|
7.1
|
%
|
|
|
7.3
|
%
|
|
|
7.6
|
%
|
|
|
7.6
|
%
|
|
|
7.8
|
%
|
|
Other(b)
|
|
|
8.3
|
%
|
|
|
8.7
|
%
|
|
|
9.0
|
%
|
|
|
9.3
|
%
|
|
|
9.5
|
%
|
|
|
10.2
|
%
|
|
|
10.4
|
%
|
|
|
10.7
|
%
|
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
Account size ending units in service (000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
|
114
|
|
|
|
118
|
|
|
|
123
|
|
|
|
128
|
|
|
|
134
|
|
|
|
139
|
|
|
|
145
|
|
|
|
152
|
|
|
101 to 1,000 units
|
|
|
228
|
|
|
|
238
|
|
|
|
243
|
|
|
|
250
|
|
|
|
256
|
|
|
|
266
|
|
|
|
277
|
|
|
|
282
|
|
|
>1,000 units
|
|
|
802
|
|
|
|
797
|
|
|
|
807
|
|
|
|
814
|
|
|
|
821
|
|
|
|
825
|
|
|
|
834
|
|
|
|
840
|
|
|
Total
|
|
|
1,144
|
|
|
|
1,153
|
|
|
|
1,173
|
|
|
|
1,192
|
|
|
|
1,211
|
|
|
|
1,230
|
|
|
|
1,256
|
|
|
|
1,274
|
|
|
Account size net loss rate(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
|
(4.0
|
)%
|
|
|
(4.3
|
)%
|
|
|
(3.9
|
)%
|
|
|
(4.4
|
)%
|
|
|
(3.4
|
)%
|
|
|
(4.3
|
)%
|
|
|
(4.7
|
)%
|
|
|
(5.0
|
)%
|
|
101 to 1,000 units
|
|
|
(4.0
|
)%
|
|
|
(2.0
|
)%
|
|
|
(2.9
|
)%
|
|
|
(2.4
|
)%
|
|
|
(3.8
|
)%
|
|
|
(3.8
|
)%
|
|
|
(1.9
|
)%
|
|
|
(2.4
|
)%
|
|
>1,000 units
|
|
|
0.6
|
%
|
|
|
(1.2
|
)%
|
|
|
(0.9
|
)%
|
|
|
(0.8
|
)%
|
|
|
(0.6
|
)%
|
|
|
(1.1
|
)%
|
|
|
(0.7
|
)%
|
|
|
(1.2
|
)%
|
|
Total
|
|
|
(0.8
|
)%
|
|
|
(1.7
|
)%
|
|
|
(1.6
|
)%
|
|
|
(1.5
|
)%
|
|
|
(1.6
|
)%
|
|
|
(2.1
|
)%
|
|
|
(1.4
|
)%
|
|
|
(1.9
|
)%
|
|
Account size ARPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
$
|
12.48
|
|
|
$
|
12.57
|
|
|
$
|
12.52
|
|
|
$
|
12.49
|
|
|
$
|
12.57
|
|
|
$
|
12.58
|
|
|
$
|
12.50
|
|
|
$
|
12.54
|
|
|
101 to 1,000 units
|
|
|
8.65
|
|
|
|
8.70
|
|
|
|
8.65
|
|
|
|
8.69
|
|
|
|
8.72
|
|
|
|
8.74
|
|
|
|
8.76
|
|
|
|
8.76
|
|
|
>1,000 units
|
|
|
6.75
|
|
|
|
6.77
|
|
|
|
6.79
|
|
|
|
6.80
|
|
|
|
6.81
|
|
|
|
6.84
|
|
|
|
6.83
|
|
|
|
6.86
|
|
|
Total
|
|
$
|
7.71
|
|
|
$
|
7.77
|
|
|
$
|
7.79
|
|
|
$
|
7.82
|
|
|
$
|
7.86
|
|
|
$
|
7.91
|
|
|
$
|
7.92
|
|
|
$
|
7.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
(b) Other includes hospitality, resort and indirect units
|
|
(c) Net loss rate is net current period placements and disconnected
units in service divided by prior period ending units in service.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160727006134/en/
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