[April 26, 2017] |
|
Spok Reports 2017 First Quarter Operating Results; Software Bookings and Backlog Increase, Wireless Trends Improve
Spok
Holdings, Inc. (NASDAQ: SPOK), a global
leader in healthcare communications, today announced operating
results for the first quarter ended March 31, 2017. In addition, the
Company's Board of Directors declared a regular quarterly dividend of
$0.125 per share, payable on June 23, 2017 to stockholders of record on
May 23, 2017.
2017 First-Quarter Results:
In the 2017 first quarter, consolidated revenue was $41.4 million,
compared to $45.4 million in the first quarter of 2016 and $44.2 million
in the fourth quarter of 2016. Software revenue was $15.6 million in the
first quarter of 2017, compared to $17.2 million in the first quarter of
2016. Wireless revenue totaled $25.8 million in the first quarter,
compared to $26.5 million in the prior quarter and $28.2 million in the
prior-year quarter.
Net income for the first quarter of 2017 was $0.9 million, or $0.04 per
share, compared to $3.4 million, or $0.17 per share, in the first
quarter of 2016.
First quarter EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled $4.6 million, or 11.1 percent of
revenue, down from $7.9 million, or 17.8 percent of revenue, in the
prior quarter, and $9.1 million, or 20.1 percent of revenue, in the
first quarter of 2016.
Other key results and highlights for the first quarter of 2017 included:
-
Software bookings of $19.8 million, compared to $15.1 million in the
prior year quarter. First quarter 2017 bookings included $9.5 million
of operations bookings and $10.3 million of maintenance renewals,
compared to $5.6 million of operations bookings and $9.5 million of
maintenance renewals in the first quarter of 2016.
-
Software backlog totaled $40.6 million at March 31, 2017, compared to
$38.3 million at December 31, 2016, and $36.8 million in the year
earlier period.
-
Of the $15.6 million in software revenue for the first quarter, $6.0
million was operations revenue and $9.6 million was maintenance
revenue, compared to $8.1 million and $9.1 million, respectively, of
the $17.2 million in software revenue in the first quarter of 2016.
-
The renewal rate for software maintenance in the first quarter of 2017
was greater than 99 percent.
-
The quarterly rate of paging unit erosion was 1.8 percent in the first
quarter of 2017, compared to 1.7 percent in the year-earlier quarter.
Net paging unit losses were 20,000 in the first quarter of 2017,
consistent with net paging losses in the first quarter of 2016. Paging
units in service at March 31, 2017 totaled 1,091,000, compared to
1,153,000 at the end of the prior year period.
-
The quarterly rate of wireless revenue erosion was 2.5 percent in the
first quarter of 2017 versus 1.9 percent in the year-earlier quarter.
-
Total paging ARPU (average revenue per unit) was $7.56 in the first
quarter of 2017, compared to $7.59 in the prior quarter and $7.77 in
the year-earlier quarter.
-
Consolidated operating expenses (excluding depreciation, amortization
and accretion) totaled $36.8 million in the first quarter of 2017,
compared to $36.3 million in the year-earlier quarter, and $36.3
million in the prior quarter.
-
Capital expenses were $2.9 million in the first quarter of 2017,
compared to $1.4 million in the year-earlier quarter.
-
The number of full-time equivalent employees at March 31, 2017 totaled
599, compared to 587 at year-end 2016 and 595 at March 31, 2016.
-
Capital returned to stockholders in the first quarter of 2017 totaled
$7.7 million, in the form of $2.6 million from the regular quarterly
dividend and $5.1 million from the special dividend that was declared
in December 2016 and paid in January 2017.
-
The Company's cash balance at March 31, 2017 was $118.9 million,
compared to $111.9 million at March 31, 2016, and $125.8 million at
the prior year-end.
Management Commentary:
"We are encouraged with our performance in the first quarter of 2017 and
believe that it provides a solid base for the remainder of the year,"
said Vincent D. Kelly, chief executive officer. "We posted the largest
first quarter software bookings result in our history and saw strong
year-over-year performance in a number of other key operating measures,
including average deal size, number of new logo deals, backlog levels,
as well as wireless subscriber retention. We achieved these results, as
we increased our investment in our business by enhancing and upgrading
our product development team and tools, as well as our sales
infrastructure and management. As we have previously outlined, while
these investments will lower our margins over the next several years, we
believe this effort will yield significant future benefits in the form
of our improved, integrated communication platform, Spok Care Connect®,
as well as higher future bookings levels, and ultimately margins,
supported by our enhanced and upgraded sales team. Overall, we continued
to operate profitably, enhance our product offerings, and operate as a
debt-free company. We also executed against our capital allocation
strategy, by continuing to make key strategic investments in our
business while returning cash to our stockholders during the quarter in
the form of dividends."
Commenting on software results, Kelly said: "We were particularly
pleased with the strong software bookings levels, as we posted the
largest first quarter results in our company's history." Kelly also
attributed a more than 99 percent renewal rate on software maintenance
contracts as a key driver of software revenue levels. 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 base.
Kelly said first quarter bookings of $19.8 million included record highs
for both operations and maintenance, while the software backlog of $40.6
million at March 31st was up more than 10 percent from the
prior year quarter. "We will continue to focus on generating activity
through the remainder of the year and 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 smartphone
communications, secure texting, emergency management, and clinical
alerting."
Kelly 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 build an industry-leading reputation, and is
generating sales momentum at the conferences we attend," commented
Kelly. "During the quarter, we generated tremendous activity from
tradeshows and positioned Spok as a thought-leader in our industry. At
the American Organization of Nurse Executives (AONE) conference, our
chief nursing officer hosted a focus group to discuss nursing challenges
in the current healthcare environment. We also continue to benefit from
the leads generated at the 2017 HIMSS Annual Conference that we attended
in late February. Our sales teams intend to carry the momentum generated
at these conferences and tradeshows throughout 2017. The combination of
Spok's strong team, solid financial base and industry-leading products
and services, positions us to capture the opportunity in our chosen
markets and stimulate sustainable growth."
The Company posted solid results for its wireless products and services
in the first quarter. Gross pager placements of 28,000 and gross
disconnects of 48,000 were in-line with the year-earlier quarter. "As a
result, annual net pager losses declined to an historical low of 5.4
percent, on a twelve-month trailing basis, and were 1.8 percent in the
first quarter, in-line with 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 92.3 percent of our subscriber base and
90.5 percent of our paging revenue at quarter end. Healthcare comprised
79.7 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 $7.7 million, in the
first quarter of 2017. During the period, the Company paid $2.6 million
in regular quarterly dividends and $5.1 million in the special dividend
that was declared in December 2016 and paid in January 2017. Kelly
added, "Throughout 2017, we will remain focused on returning value to
our shareholders through our capital allocation strategy, which includes
dividends and key strategic investments in our products and business
that will create sustainable growth. We continue to evaluate our capital
allocation strategy on a quarterly basis and will communicate our plans
to you with respect to dividends, potential share repurchases and other
uses of capital."
Stock Repurchase Authorization:
The Company also announced that its Board of Directors has authorized
the repurchase of up to $10 million of the Company's common stock
through 2017 on the open market or in privately negotiated transactions.
"Spok's management team and Board of Directors firmly believe in our
long-term growth prospects," said Kelly. "We intend to utilize our
healthy balance sheet and the ability to generate operating cash flow to
fund the new repurchase program, which we believe will create further
value for our stockholders."
The timing and the amount of any repurchases of common stock will be
determined by Spok's board based on its evaluation of market conditions
and other factors. Repurchases of common stock will be made under a Rule
10b5-1 plan, which would permit common stock to be repurchased when the
Company might otherwise be precluded from doing so under insider trading
laws. The repurchase program may be suspended or discontinued at any
time. Any repurchased common stock will be available for use in
connection with the Company's stock plans and for other corporate
purposes.
Chief Financial Officer (CFO) Transition:
Late in the first quarter, Spok announced that Michael W. Wallace had
joined the Company as its new CFO. He succeeded Shawn E. Endsley in that
position, who has continued with the company in the role of Chief
Accounting Officer. Wallace brings with him a proven ability to manage
the finance function in a rapidly growing and changing environment and
implementing strategies for improving revenue and profitability. "I am
excited to welcome Mike to Spok's management team, where he has already
had an immediate impact as we continue our transition from a
telecom-based wireless company to a software provider that delivers
industry-leading unified healthcare communications solutions," said
Kelly. "We are particularly impressed with Mike's deep experience in
medical diagnostic services, software development, digital/interactive
marketing and regulatory compliance."
Business Outlook:
Commenting on the Company's previously provided financial guidance for
2017, Wallace noted: "We are pleased that quarterly results were
consistent with our expectations and we are maintaining the 2017
guidance range that we provided last quarter." With regard to financial
guidance for 2017, Wallace reiterated that the Company expects total
revenue to range from $161 million to $177 million, operating expenses
(excluding depreciation, amortization and accretion) to range from $153
million to $159 million, and capital expenditures to range from $8
million to $12 million.
2017 First-Quarter Call and Replay:
The Company plans to host a conference call for investors to discuss its
2017 first quarter results at 10:00 a.m. ET on Thursday, April 27, 2017.
Dial-in numbers for the call are 719-325-2126 or 800-210-9006. The pass
code for the call is 6321677. A replay of the call will be available
from 1:00 p.m. ET on April 27, 2017 until 1:00 p.m. ET on Thursday, May
11, 2017. To listen to the replay, please register at http://tinyurl.com/spokQ1earningsreplay.
Please cut and paste this address into your browser, enter the
registration information, and you will be given access to the replay.
About Spok
Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in Springfield, Va.,
is proud to be the global leader in healthcare communications. We
deliver clinical information to care teams when and where it matters
most to improve patient outcomes. Top hospitals rely on the Spok Care
Connect® platform to enhance workflows for clinicians, support
administrative compliance, and provide a better experience for patients.
Our customers send over 100 million messages each month through their
Spok® solutions. When seconds count, count on Spok. For more
information, visit spok.com or follow @spoktweets on Twitter.
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
|
|
|
|
3/31/2017
|
|
|
3/31/2016
|
Revenue:
|
|
|
|
|
|
|
Wireless
|
|
|
$
|
25,860
|
|
|
|
$
|
28,172
|
|
Software
|
|
|
|
15,584
|
|
|
|
|
17,216
|
|
Total revenue
|
|
|
|
41,444
|
|
|
|
|
45,388
|
|
Operating expenses:
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
7,036
|
|
|
|
|
8,017
|
|
Research and development
|
|
|
|
4,105
|
|
|
|
|
2,908
|
|
Service, rental and maintenance
|
|
|
|
8,066
|
|
|
|
|
8,305
|
|
Selling and marketing
|
|
|
|
5,922
|
|
|
|
|
6,529
|
|
General and administrative
|
|
|
|
11,710
|
|
|
|
|
10,506
|
|
Depreciation, amortization and accretion
|
|
|
|
3,223
|
|
|
|
|
3,323
|
|
Total operating expenses
|
|
|
|
40,062
|
|
|
|
|
39,588
|
|
% of total revenue
|
|
|
|
96.7
|
%
|
|
|
|
87.2
|
%
|
Operating income
|
|
|
|
1,382
|
|
|
|
|
5,800
|
|
% of total revenue
|
|
|
|
3.3
|
%
|
|
|
|
12.8
|
%
|
Interest income
|
|
|
|
122
|
|
|
|
|
49
|
|
Other income
|
|
|
|
(30
|
)
|
|
|
|
254
|
|
Income before income tax expense
|
|
|
|
1,474
|
|
|
|
|
6,103
|
|
Income tax benefit (expense)
|
|
|
|
(620
|
)
|
|
|
|
(2,659
|
)
|
Net income
|
|
|
$
|
854
|
|
|
|
$
|
3,444
|
|
Basic and diluted net income per common share
|
|
|
$
|
0.04
|
|
|
|
$
|
0.17
|
|
Basic weighted average common shares outstanding
|
|
|
|
20,530,739
|
|
|
|
|
20,706,082
|
|
Diluted weighted average common shares outstanding
|
|
|
|
20,585,542
|
|
|
|
|
20,706,082
|
|
Key statistics:
|
|
|
|
|
|
|
Units in service
|
|
|
|
1,091
|
|
|
|
|
1,153
|
|
Average revenue per unit (ARPU)
|
|
|
$
|
7.56
|
|
|
|
$
|
7.77
|
|
Bookings
|
|
|
$
|
19,788
|
|
|
|
$
|
15,106
|
|
Backlog
|
|
|
$
|
40,555
|
|
|
|
$
|
36,766
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
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
|
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
|
6/30/2016
|
|
|
3/31/2016
|
|
|
12/31/2015
|
|
|
9/30/2015
|
|
|
6/30/2015
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
$
|
25,860
|
|
|
|
$
|
26,535
|
|
|
|
$
|
27,024
|
|
|
|
$
|
27,859
|
|
|
|
$
|
28,172
|
|
|
|
$
|
28,727
|
|
|
|
$
|
29,375
|
|
|
|
$
|
30,222
|
|
Software
|
|
|
|
15,584
|
|
|
|
|
17,649
|
|
|
|
|
18,331
|
|
|
|
|
16,776
|
|
|
|
|
17,216
|
|
|
|
|
18,612
|
|
|
|
|
16,806
|
|
|
|
|
17,747
|
|
Total revenue
|
|
|
|
41,444
|
|
|
|
|
44,184
|
|
|
|
|
45,355
|
|
|
|
|
44,635
|
|
|
|
|
45,388
|
|
|
|
|
47,339
|
|
|
|
|
46,181
|
|
|
|
|
47,969
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
7,036
|
|
|
|
|
7,482
|
|
|
|
|
7,639
|
|
|
|
|
7,513
|
|
|
|
|
8,017
|
|
|
|
|
8,035
|
|
|
|
|
7,871
|
|
|
|
|
9,131
|
|
Research and development
|
|
|
|
4,105
|
|
|
|
|
3,702
|
|
|
|
|
3,645
|
|
|
|
|
3,211
|
|
|
|
|
2,908
|
|
|
|
|
2,608
|
|
|
|
|
2,525
|
|
|
|
|
2,579
|
|
Service, rental and maintenance
|
|
|
|
8,066
|
|
|
|
|
7,989
|
|
|
|
|
8,253
|
|
|
|
|
8,187
|
|
|
|
|
8,305
|
|
|
|
|
8,416
|
|
|
|
|
8,590
|
|
|
|
|
8,425
|
|
Selling and marketing
|
|
|
|
5,922
|
|
|
|
|
5,855
|
|
|
|
|
5,955
|
|
|
|
|
6,429
|
|
|
|
|
6,529
|
|
|
|
|
7,036
|
|
|
|
|
6,572
|
|
|
|
|
6,790
|
|
General and administrative
|
|
|
|
11,710
|
|
|
|
|
9,839
|
|
|
|
|
10,593
|
|
|
|
|
10,439
|
|
|
|
|
10,510
|
|
|
|
|
10,276
|
|
|
|
|
10,410
|
|
|
|
|
10,472
|
|
Severance
|
|
|
|
-
|
|
|
|
|
1,438
|
|
|
|
|
12
|
|
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
|
|
1,056
|
|
|
|
|
141
|
|
|
|
|
1,504
|
|
Depreciation, amortization and accretion
|
|
|
|
3,223
|
|
|
|
|
3,176
|
|
|
|
|
3,229
|
|
|
|
|
3,235
|
|
|
|
|
3,323
|
|
|
|
|
3,362
|
|
|
|
|
3,413
|
|
|
|
|
3,448
|
|
Total operating expenses
|
|
|
|
40,062
|
|
|
|
|
39,481
|
|
|
|
|
39,326
|
|
|
|
|
39,014
|
|
|
|
|
39,588
|
|
|
|
|
40,789
|
|
|
|
|
39,522
|
|
|
|
|
42,349
|
|
% of total revenue
|
|
|
|
96.7
|
%
|
|
|
|
89.4
|
%
|
|
|
|
86.7
|
%
|
|
|
|
87.4
|
%
|
|
|
|
87.2
|
%
|
|
|
|
86.2
|
%
|
|
|
|
85.6
|
%
|
|
|
|
88.3
|
%
|
Operating income
|
|
|
|
1,382
|
|
|
|
|
4,703
|
|
|
|
|
6,029
|
|
|
|
|
5,621
|
|
|
|
|
5,800
|
|
|
|
|
6,550
|
|
|
|
|
6,659
|
|
|
|
|
5,620
|
|
% of total revenue
|
|
|
|
3.3
|
%
|
|
|
|
10.6
|
%
|
|
|
|
13.3
|
%
|
|
|
|
12.6
|
%
|
|
|
|
12.8
|
%
|
|
|
|
13.8
|
%
|
|
|
|
14.4
|
%
|
|
|
|
11.7
|
%
|
Interest income (expense), net
|
|
|
|
122
|
|
|
|
|
99
|
|
|
|
|
67
|
|
|
|
|
61
|
|
|
|
|
49
|
|
|
|
|
13
|
|
|
|
|
1
|
|
|
|
|
3
|
|
Other income, net
|
|
|
|
(30
|
)
|
|
|
|
100
|
|
|
|
|
85
|
|
|
|
|
104
|
|
|
|
|
254
|
|
|
|
|
71
|
|
|
|
|
784
|
|
|
|
|
264
|
|
Income before income tax expense
|
|
|
|
1,474
|
|
|
|
|
4,902
|
|
|
|
|
6,181
|
|
|
|
|
5,786
|
|
|
|
|
6,103
|
|
|
|
|
6,634
|
|
|
|
|
7,444
|
|
|
|
|
5,887
|
|
Income tax benefit (expense)
|
|
|
|
(620
|
)
|
|
|
|
(1,876
|
)
|
|
|
|
(2,123
|
)
|
|
|
|
(2,334
|
)
|
|
|
|
(2,659
|
)
|
|
|
|
62,098
|
|
|
|
|
(3,222
|
)
|
|
|
|
(2,512
|
)
|
Net income
|
|
|
$
|
854
|
|
|
|
$
|
3,026
|
|
|
|
$
|
4,058
|
|
|
|
$
|
3,452
|
|
|
|
$
|
3,444
|
|
|
|
$
|
68,732
|
|
|
|
$
|
4,222
|
|
|
|
$
|
3,375
|
|
Basic and diluted net income per common share
|
|
|
$
|
0.04
|
|
|
|
$
|
0.15
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.17
|
|
|
|
$
|
0.17
|
|
|
|
$
|
3.28
|
|
|
|
$
|
0.20
|
|
|
|
$
|
0.16
|
|
Basic weighted average common shares outstanding
|
|
|
|
20,530,739
|
|
|
|
|
20,529,958
|
|
|
|
|
20,541,275
|
|
|
|
|
20,568,058
|
|
|
|
|
20,706,082
|
|
|
|
|
20,949,484
|
|
|
|
|
21,324,068
|
|
|
|
|
21,700,566
|
|
Diluted weighted average common shares outstanding
|
|
|
|
20,585,542
|
|
|
|
|
20,529,958
|
|
|
|
|
20,541,275
|
|
|
|
|
20,568,058
|
|
|
|
|
20,706,082
|
|
|
|
|
20,949,484
|
|
|
|
|
21,324,068
|
|
|
|
|
21,700,566
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
|
1,091
|
|
|
|
|
1,111
|
|
|
|
|
1,124
|
|
|
|
|
1,144
|
|
|
|
|
1,153
|
|
|
|
|
1,173
|
|
|
|
|
1,192
|
|
|
|
|
1,211
|
|
Average revenue per unit (ARPU)
|
|
|
$
|
7.56
|
|
|
|
$
|
7.59
|
|
|
|
$
|
7.63
|
|
|
|
$
|
7.71
|
|
|
|
$
|
7.77
|
|
|
|
$
|
7.79
|
|
|
|
$
|
7.82
|
|
|
|
$
|
7.86
|
|
Bookings
|
|
|
$
|
19,788
|
|
|
|
$
|
20,025
|
|
|
|
$
|
18,659
|
|
|
|
$
|
20,063
|
|
|
|
$
|
15,106
|
|
|
|
$
|
18,511
|
|
|
|
$
|
16,746
|
|
|
|
$
|
21,027
|
|
Backlog
|
|
|
$
|
40,555
|
|
|
|
$
|
38,295
|
|
|
|
$
|
38,812
|
|
|
|
$
|
39,475
|
|
|
|
$
|
36,766
|
|
|
|
$
|
38,650
|
|
|
|
$
|
41,639
|
|
|
|
$
|
43,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
SPOK HOLDINGS, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
118,947
|
|
|
$
|
125,816
|
Accounts receivable, net
|
|
|
|
24,079
|
|
|
|
23,666
|
Prepaid expenses and other
|
|
|
|
4,650
|
|
|
|
4,384
|
Inventory
|
|
|
|
1,841
|
|
|
|
1,996
|
Total current assets
|
|
|
|
149,517
|
|
|
|
155,862
|
Property and equipment, net
|
|
|
|
13,600
|
|
|
|
12,818
|
Goodwill
|
|
|
|
133,031
|
|
|
|
133,031
|
Other intangible assets, net
|
|
|
|
9,796
|
|
|
|
10,803
|
Deferred income tax assets, net
|
|
|
|
72,802
|
|
|
|
73,068
|
Other non-current assets
|
|
|
|
2,519
|
|
|
|
2,505
|
Total non-current assets
|
|
|
|
231,748
|
|
|
|
232,225
|
Total assets
|
|
|
$
|
381,265
|
|
|
$
|
388,087
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
1,976
|
|
|
$
|
1,909
|
Accrued compensation and benefits
|
|
|
|
11,080
|
|
|
|
13,268
|
Accrued dividends payable
|
|
|
|
11
|
|
|
|
5,140
|
Accrued taxes
|
|
|
|
4,047
|
|
|
|
4,132
|
Deferred revenue
|
|
|
|
30,663
|
|
|
|
29,145
|
Other current liabilities
|
|
|
|
2,560
|
|
|
|
2,733
|
Total current liabilities
|
|
|
|
50,337
|
|
|
|
56,327
|
Non-current liabilities
|
|
|
|
|
|
|
Deferred revenue
|
|
|
|
749
|
|
|
|
752
|
Other long-term liabilities
|
|
|
|
8,774
|
|
|
|
8,921
|
Total non-current liabilities
|
|
|
|
9,523
|
|
|
|
9,673
|
Total liabilities
|
|
|
|
59,860
|
|
|
|
66,000
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
-
|
|
|
|
-
|
Common stock
|
|
|
|
2
|
|
|
|
2
|
Additional paid-in capital
|
|
|
|
105,766
|
|
|
|
104,810
|
Retained earnings
|
|
|
|
215,637
|
|
|
|
217,275
|
Total stockholders' equity
|
|
|
|
321,405
|
|
|
|
322,087
|
Total liabilities and stockholders' equity
|
|
|
$
|
381,265
|
|
|
$
|
388,087
|
|
|
|
|
|
|
|
(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 three months ended
|
|
|
|
3/31/2017
|
|
|
3/31/2016
|
Cash flows provided by operating activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
854
|
|
|
|
$
|
3,444
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation, amortization and accretion
|
|
|
|
3,223
|
|
|
|
|
3,323
|
|
Deferred income tax expense
|
|
|
|
279
|
|
|
|
|
2,327
|
|
Stock based compensation
|
|
|
|
955
|
|
|
|
|
637
|
|
Provision for doubtful accounts, service credits and other
|
|
|
|
223
|
|
|
|
|
238
|
|
Adjustment of non-cash transaction taxes
|
|
|
|
(122
|
)
|
|
|
|
(81
|
)
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(636
|
)
|
|
|
|
1,322
|
|
Prepaid expenses and other assets
|
|
|
|
(146
|
)
|
|
|
|
595
|
|
Accounts payable, accrued liabilities and other
|
|
|
|
(2,473
|
)
|
|
|
|
(2,653
|
)
|
Deferred revenue
|
|
|
|
1,515
|
|
|
|
|
367
|
|
Net cash provided by operating activities
|
|
|
|
3,672
|
|
|
|
|
9,519
|
|
Cash flows used in investing activities:
|
|
|
|
|
|
|
Purchase of property and equipment, net of proceeds from disposals
of property and equipment
|
|
|
|
(2,851
|
)
|
|
|
|
(1,445
|
)
|
Net cash used in investing activities
|
|
|
|
(2,851
|
)
|
|
|
|
(1,445
|
)
|
Cash flows used in financing activities:
|
|
|
|
|
|
|
Cash distributions to stockholders
|
|
|
|
(7,694
|
)
|
|
|
|
(2,580
|
)
|
Purchase of common stock (including commissions), net of proceeds
from issuance of common stock
|
|
|
|
4
|
|
|
|
|
(4,905
|
)
|
Net cash used in financing activities
|
|
|
|
(7,690
|
)
|
|
|
|
(7,485
|
)
|
Net decrease in cash and cash equivalents
|
|
|
|
(6,869
|
)
|
|
|
|
589
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
125,816
|
|
|
|
|
111,332
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
118,947
|
|
|
|
$
|
111,921
|
|
Supplemental disclosure:
|
|
|
|
|
|
|
Income taxes paid
|
|
|
$
|
180
|
|
|
|
$
|
352
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
|
6/30/2016
|
|
|
3/31/2016
|
|
|
12/31/2015
|
|
|
9/30/2015
|
|
|
6/30/2015
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paging
|
|
|
$
|
24,972
|
|
|
$
|
25,441
|
|
|
$
|
25,944
|
|
|
$
|
26,564
|
|
|
$
|
27,101
|
|
|
$
|
27,637
|
|
|
$
|
28,196
|
|
|
$
|
28,782
|
Non-paging
|
|
|
|
888
|
|
|
|
1,094
|
|
|
|
1,080
|
|
|
|
1,295
|
|
|
|
1,071
|
|
|
|
1,090
|
|
|
|
1,179
|
|
|
|
1,440
|
Total wireless revenue
|
|
|
|
25,860
|
|
|
|
26,535
|
|
|
|
27,024
|
|
|
|
27,859
|
|
|
|
28,172
|
|
|
|
28,727
|
|
|
|
29,375
|
|
|
|
30,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
|
543
|
|
|
|
551
|
|
|
|
560
|
|
|
|
503
|
|
|
|
498
|
|
|
|
471
|
|
|
|
392
|
|
|
|
419
|
License
|
|
|
|
1,171
|
|
|
|
1,594
|
|
|
|
1,842
|
|
|
|
1,691
|
|
|
|
1,593
|
|
|
|
2,733
|
|
|
|
1,457
|
|
|
|
3,011
|
Services
|
|
|
|
3,354
|
|
|
|
4,500
|
|
|
|
5,578
|
|
|
|
4,202
|
|
|
|
4,315
|
|
|
|
4,610
|
|
|
|
4,600
|
|
|
|
4,609
|
Equipment
|
|
|
|
973
|
|
|
|
1,402
|
|
|
|
1,091
|
|
|
|
1,250
|
|
|
|
1,729
|
|
|
|
1,764
|
|
|
|
1,434
|
|
|
|
1,301
|
Operations revenue
|
|
|
|
6,041
|
|
|
|
8,047
|
|
|
|
9,071
|
|
|
|
7,646
|
|
|
|
8,135
|
|
|
|
9,578
|
|
|
|
7,883
|
|
|
|
9,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance revenue
|
|
|
|
9,543
|
|
|
|
9,602
|
|
|
|
9,260
|
|
|
|
9,130
|
|
|
|
9,081
|
|
|
|
9,034
|
|
|
|
8,923
|
|
|
|
8,407
|
Total software revenue
|
|
|
|
15,584
|
|
|
|
17,649
|
|
|
|
18,331
|
|
|
|
16,776
|
|
|
|
17,216
|
|
|
|
18,612
|
|
|
|
16,806
|
|
|
|
17,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
41,444
|
|
|
$
|
44,184
|
|
|
$
|
45,355
|
|
|
$
|
44,635
|
|
|
$
|
45,388
|
|
|
$
|
47,339
|
|
|
$
|
46,181
|
|
|
$
|
47,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
|
6/30/2016
|
|
|
3/31/2016
|
|
|
12/31/2015
|
|
|
9/30/2015
|
|
|
6/30/2015
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
$
|
4,489
|
|
|
$
|
4,612
|
|
|
|
$
|
4,468
|
|
|
$
|
4,406
|
|
|
$
|
4,634
|
|
|
|
$
|
4,414
|
|
|
|
$
|
4,277
|
|
|
$
|
4,274
|
Cost of sales
|
|
|
|
1,910
|
|
|
|
2,309
|
|
|
|
|
2,480
|
|
|
|
2,227
|
|
|
|
2,673
|
|
|
|
|
2,902
|
|
|
|
|
2,549
|
|
|
|
3,801
|
Stock based compensation
|
|
|
|
58
|
|
|
|
(108
|
)
|
|
|
|
57
|
|
|
|
58
|
|
|
|
49
|
|
|
|
|
33
|
|
|
|
|
33
|
|
|
|
34
|
Other
|
|
|
|
579
|
|
|
|
669
|
|
|
|
|
634
|
|
|
|
822
|
|
|
|
661
|
|
|
|
|
686
|
|
|
|
|
1,012
|
|
|
|
1,022
|
Total cost of revenue
|
|
|
|
7,036
|
|
|
|
7,482
|
|
|
|
|
7,639
|
|
|
|
7,513
|
|
|
|
8,017
|
|
|
|
|
8,035
|
|
|
|
|
7,871
|
|
|
|
9,131
|
Research and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
3,396
|
|
|
|
3,198
|
|
|
|
|
2,940
|
|
|
|
2,478
|
|
|
|
2,325
|
|
|
|
|
2,025
|
|
|
|
|
1,889
|
|
|
|
1,936
|
Outside services
|
|
|
|
516
|
|
|
|
511
|
|
|
|
|
569
|
|
|
|
580
|
|
|
|
428
|
|
|
|
|
480
|
|
|
|
|
516
|
|
|
|
491
|
Stock based compensation
|
|
|
|
55
|
|
|
|
(82
|
)
|
|
|
|
46
|
|
|
|
48
|
|
|
|
40
|
|
|
|
|
21
|
|
|
|
|
21
|
|
|
|
21
|
Other
|
|
|
|
138
|
|
|
|
75
|
|
|
|
|
90
|
|
|
|
105
|
|
|
|
115
|
|
|
|
|
82
|
|
|
|
|
99
|
|
|
|
131
|
Total research and development
|
|
|
|
4,105
|
|
|
|
3,702
|
|
|
|
|
3,645
|
|
|
|
3,211
|
|
|
|
2,908
|
|
|
|
|
2,608
|
|
|
|
|
2,525
|
|
|
|
2,579
|
Service, rental and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
2,670
|
|
|
|
2,689
|
|
|
|
|
2,641
|
|
|
|
2,647
|
|
|
|
2,747
|
|
|
|
|
2,790
|
|
|
|
|
2,723
|
|
|
|
2,619
|
Site rent
|
|
|
|
3,620
|
|
|
|
3,618
|
|
|
|
|
3,626
|
|
|
|
3,668
|
|
|
|
3,660
|
|
|
|
|
3,664
|
|
|
|
|
3,763
|
|
|
|
3,783
|
Telecommunications
|
|
|
|
1,069
|
|
|
|
1,088
|
|
|
|
|
1,152
|
|
|
|
1,117
|
|
|
|
1,213
|
|
|
|
|
1,269
|
|
|
|
|
1,377
|
|
|
|
1,271
|
Stock based compensation
|
|
|
|
20
|
|
|
|
(29
|
)
|
|
|
|
15
|
|
|
|
15
|
|
|
|
13
|
|
|
|
|
7
|
|
|
|
|
7
|
|
|
|
7
|
Other
|
|
|
|
687
|
|
|
|
623
|
|
|
|
|
819
|
|
|
|
740
|
|
|
|
672
|
|
|
|
|
686
|
|
|
|
|
720
|
|
|
|
745
|
Total service, rental and maintenance
|
|
|
|
8,066
|
|
|
|
7,989
|
|
|
|
|
8,253
|
|
|
|
8,187
|
|
|
|
8,305
|
|
|
|
|
8,416
|
|
|
|
|
8,590
|
|
|
|
8,425
|
Selling and marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
3,103
|
|
|
|
3,575
|
|
|
|
|
3,502
|
|
|
|
3,510
|
|
|
|
3,666
|
|
|
|
|
3,780
|
|
|
|
|
3,664
|
|
|
|
3,732
|
Commissions
|
|
|
|
1,202
|
|
|
|
1,248
|
|
|
|
|
1,317
|
|
|
|
1,559
|
|
|
|
1,525
|
|
|
|
|
1,754
|
|
|
|
|
1,858
|
|
|
|
1,792
|
Stock based compensation
|
|
|
|
101
|
|
|
|
(131
|
)
|
|
|
|
75
|
|
|
|
75
|
|
|
|
48
|
|
|
|
|
(7
|
)
|
|
|
|
16
|
|
|
|
51
|
Other
|
|
|
|
1,516
|
|
|
|
1,163
|
|
|
|
|
1,061
|
|
|
|
1,285
|
|
|
|
1,290
|
|
|
|
|
1,509
|
|
|
|
|
1,034
|
|
|
|
1,215
|
Total selling and marketing
|
|
|
|
5,922
|
|
|
|
5,855
|
|
|
|
|
5,955
|
|
|
|
6,429
|
|
|
|
6,529
|
|
|
|
|
7,036
|
|
|
|
|
6,572
|
|
|
|
6,790
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
4,442
|
|
|
|
4,542
|
|
|
|
|
4,142
|
|
|
|
4,306
|
|
|
|
4,392
|
|
|
|
|
4,029
|
|
|
|
|
4,320
|
|
|
|
4,611
|
Stock based compensation
|
|
|
|
721
|
|
|
|
(863
|
)
|
|
|
|
507
|
|
|
|
534
|
|
|
|
488
|
|
|
|
|
316
|
|
|
|
|
316
|
|
|
|
548
|
Facility rent
|
|
|
|
819
|
|
|
|
817
|
|
|
|
|
848
|
|
|
|
810
|
|
|
|
839
|
|
|
|
|
856
|
|
|
|
|
868
|
|
|
|
841
|
Outside services
|
|
|
|
2,287
|
|
|
|
2,277
|
|
|
|
|
1,946
|
|
|
|
1,921
|
|
|
|
1,726
|
|
|
|
|
1,783
|
|
|
|
|
1,864
|
|
|
|
1,728
|
Taxes, licenses and permits
|
|
|
|
989
|
|
|
|
976
|
|
|
|
|
1,164
|
|
|
|
1,060
|
|
|
|
1,055
|
|
|
|
|
1,132
|
|
|
|
|
1,068
|
|
|
|
1,150
|
Other
|
|
|
|
2,452
|
|
|
|
2,090
|
|
|
|
|
1,986
|
|
|
|
1,808
|
|
|
|
2,010
|
|
|
|
|
2,160
|
|
|
|
|
1,974
|
|
|
|
1,594
|
Total general and administrative
|
|
|
|
11,710
|
|
|
|
9,839
|
|
|
|
|
10,593
|
|
|
|
10,439
|
|
|
|
10,510
|
|
|
|
|
10,276
|
|
|
|
|
10,410
|
|
|
|
10,472
|
Severance
|
|
|
|
-
|
|
|
|
1,438
|
|
|
|
|
12
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
|
1,056
|
|
|
|
|
141
|
|
|
|
1,504
|
Depreciation, amortization and accretion
|
|
|
|
3,223
|
|
|
|
3,176
|
|
|
|
|
3,229
|
|
|
|
3,235
|
|
|
|
3,323
|
|
|
|
|
3,362
|
|
|
|
|
3,413
|
|
|
|
3,448
|
Operating expenses
|
|
|
$
|
40,062
|
|
|
$
|
39,481
|
|
|
|
$
|
39,326
|
|
|
$
|
39,014
|
|
|
$
|
39,588
|
|
|
|
$
|
40,789
|
|
|
|
$
|
39,522
|
|
|
$
|
42,349
|
Capital expenditures
|
|
|
|
2,851
|
|
|
|
1,878
|
|
|
|
|
1,396
|
|
|
|
1,537
|
|
|
|
1,445
|
|
|
|
|
2,024
|
|
|
|
|
1,318
|
|
|
|
1,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
|
6/30/2016
|
|
|
3/31/2016
|
|
|
12/31/2015
|
|
|
9/30/2015
|
|
|
6/30/2015
|
Paging units in service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning units in service (000's)
|
|
|
|
1,111
|
|
|
|
|
1,124
|
|
|
|
|
1,144
|
|
|
|
|
1,153
|
|
|
|
|
1,173
|
|
|
|
|
1,192
|
|
|
|
|
1,211
|
|
|
|
|
1,230
|
|
Gross placements
|
|
|
|
28
|
|
|
|
|
36
|
|
|
|
|
34
|
|
|
|
|
39
|
|
|
|
|
28
|
|
|
|
|
31
|
|
|
|
|
36
|
|
|
|
|
40
|
|
Gross disconnects
|
|
|
|
(48
|
)
|
|
|
|
(49
|
)
|
|
|
|
(54
|
)
|
|
|
|
(48
|
)
|
|
|
|
(48
|
)
|
|
|
|
(50
|
)
|
|
|
|
(55
|
)
|
|
|
|
(59
|
)
|
Net change
|
|
|
|
(20
|
)
|
|
|
|
(13
|
)
|
|
|
|
(20
|
)
|
|
|
|
(9
|
)
|
|
|
|
(20
|
)
|
|
|
|
(19
|
)
|
|
|
|
(19
|
)
|
|
|
|
(19
|
)
|
Ending units in service
|
|
|
|
1,091
|
|
|
|
|
1,111
|
|
|
|
|
1,124
|
|
|
|
|
1,144
|
|
|
|
|
1,153
|
|
|
|
|
1,173
|
|
|
|
|
1,192
|
|
|
|
|
1,211
|
|
End of period units in service % of total (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
|
79.7
|
%
|
|
|
|
79.3
|
%
|
|
|
|
78.6
|
%
|
|
|
|
78.2
|
%
|
|
|
|
77.5
|
%
|
|
|
|
77.0
|
%
|
|
|
|
76.3
|
%
|
|
|
|
75.9
|
%
|
Government
|
|
|
|
6.4
|
%
|
|
|
|
6.5
|
%
|
|
|
|
6.7
|
%
|
|
|
|
6.8
|
%
|
|
|
|
6.9
|
%
|
|
|
|
7.2
|
%
|
|
|
|
7.2
|
%
|
|
|
|
7.3
|
%
|
Large enterprise
|
|
|
|
6.1
|
%
|
|
|
|
6.2
|
%
|
|
|
|
6.5
|
%
|
|
|
|
6.6
|
%
|
|
|
|
6.9
|
%
|
|
|
|
6.9
|
%
|
|
|
|
7.1
|
%
|
|
|
|
7.3
|
%
|
Other(b)
|
|
|
|
7.7
|
%
|
|
|
|
8.0
|
%
|
|
|
|
8.2
|
%
|
|
|
|
8.3
|
%
|
|
|
|
8.7
|
%
|
|
|
|
9.0
|
%
|
|
|
|
9.3
|
%
|
|
|
|
9.5
|
%
|
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
|
|
|
|
102
|
|
|
|
|
106
|
|
|
|
|
110
|
|
|
|
|
114
|
|
|
|
|
118
|
|
|
|
|
123
|
|
|
|
|
128
|
|
|
|
|
134
|
|
101 to 1,000 units
|
|
|
|
214
|
|
|
|
|
217
|
|
|
|
|
222
|
|
|
|
|
228
|
|
|
|
|
238
|
|
|
|
|
243
|
|
|
|
|
250
|
|
|
|
|
256
|
|
>1,000 units
|
|
|
|
775
|
|
|
|
|
788
|
|
|
|
|
792
|
|
|
|
|
802
|
|
|
|
|
797
|
|
|
|
|
807
|
|
|
|
|
814
|
|
|
|
|
821
|
|
Total
|
|
|
|
1,091
|
|
|
|
|
1,111
|
|
|
|
|
1,124
|
|
|
|
|
1,144
|
|
|
|
|
1,153
|
|
|
|
|
1,173
|
|
|
|
|
1,192
|
|
|
|
|
1,211
|
|
Account size net loss rate(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
|
|
(3.4
|
)%
|
|
|
|
(3.9
|
)%
|
|
|
|
(3.5
|
)%
|
|
|
|
(4.0
|
)%
|
|
|
|
(4.3
|
)%
|
|
|
|
(3.9
|
)%
|
|
|
|
(4.4
|
)%
|
|
|
|
(3.4
|
)%
|
101 to 1,000 units
|
|
|
|
(1.3
|
)%
|
|
|
|
(2.3
|
)%
|
|
|
|
(2.6
|
)%
|
|
|
|
(4.0
|
)%
|
|
|
|
(2.0
|
)%
|
|
|
|
(2.9
|
)%
|
|
|
|
(2.4
|
)%
|
|
|
|
(3.8
|
)%
|
>1,000 units
|
|
|
|
(1.7
|
)%
|
|
|
|
(0.5
|
)%
|
|
|
|
(1.2
|
)%
|
|
|
|
0.6
|
%
|
|
|
|
(1.2
|
)%
|
|
|
|
(0.9
|
)%
|
|
|
|
(0.8
|
)%
|
|
|
|
(0.6
|
)%
|
Total
|
|
|
|
(1.8
|
)%
|
|
|
|
(1.2
|
)%
|
|
|
|
(1.7
|
)%
|
|
|
|
(0.8
|
)%
|
|
|
|
(1.7
|
)%
|
|
|
|
(1.6
|
)%
|
|
|
|
(1.5
|
)%
|
|
|
|
(1.6
|
)%
|
Account size ARPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
|
$
|
12.22
|
|
|
|
$
|
12.25
|
|
|
|
$
|
12.34
|
|
|
|
$
|
12.48
|
|
|
|
$
|
12.57
|
|
|
|
$
|
12.52
|
|
|
|
$
|
12.49
|
|
|
|
$
|
12.57
|
|
101 to 1,000 units
|
|
|
|
8.66
|
|
|
|
|
8.63
|
|
|
|
|
8.64
|
|
|
|
|
8.65
|
|
|
|
|
8.70
|
|
|
|
|
8.65
|
|
|
|
|
8.69
|
|
|
|
|
8.72
|
|
>1,000 units
|
|
|
|
6.64
|
|
|
|
|
6.67
|
|
|
|
|
6.68
|
|
|
|
|
6.75
|
|
|
|
|
6.77
|
|
|
|
|
6.79
|
|
|
|
|
6.80
|
|
|
|
|
6.81
|
|
Total
|
|
|
$
|
7.56
|
|
|
|
$
|
7.59
|
|
|
|
$
|
7.63
|
|
|
|
$
|
7.71
|
|
|
|
$
|
7.77
|
|
|
|
$
|
7.79
|
|
|
|
$
|
7.82
|
|
|
|
$
|
7.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
|
SPOK HOLDINGS, INC.
|
RECONCILIATION FROM NET INCOME TO EBITDA (a)
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
6/30/2015
|
Reconciliation of net income to EBITDA (b) (c):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
854
|
|
|
$
|
3,026
|
|
|
$
|
4,058
|
|
|
$
|
3,452
|
|
|
$
|
3,444
|
|
|
$
|
68,732
|
|
|
$
|
4,222
|
|
|
$
|
3,375
|
|
Plus (less): Income tax expense (benefit)
|
|
|
620
|
|
|
|
1,876
|
|
|
|
2,123
|
|
|
|
2,334
|
|
|
|
2,659
|
|
|
|
(62,098
|
)
|
|
|
3,222
|
|
|
|
2,512
|
|
Less: Other income
|
|
|
30
|
|
|
|
(100
|
)
|
|
|
(85
|
)
|
|
|
(104
|
)
|
|
|
(254
|
)
|
|
|
(71
|
)
|
|
|
(784
|
)
|
|
|
(264
|
)
|
Plus (less): Interest expense (income)
|
|
|
(122
|
)
|
|
|
(99
|
)
|
|
|
(67
|
)
|
|
|
(61
|
)
|
|
|
(49
|
)
|
|
|
(13
|
)
|
|
|
(1
|
)
|
|
|
(3
|
)
|
Operating income
|
|
|
1,382
|
|
|
|
4,703
|
|
|
|
6,029
|
|
|
|
5,621
|
|
|
|
5,800
|
|
|
|
6,550
|
|
|
|
6,659
|
|
|
|
5,620
|
|
Plus: depreciation, amortization and accretion
|
|
|
3,223
|
|
|
|
3,176
|
|
|
|
3,229
|
|
|
|
3,235
|
|
|
|
3,323
|
|
|
|
3,362
|
|
|
|
3,413
|
|
|
|
3,448
|
|
EBITDA (as defined by the Company)
|
|
|
4,605
|
|
|
|
7,879
|
|
|
|
9,258
|
|
|
|
8,856
|
|
|
|
9,123
|
|
|
|
9,912
|
|
|
|
10,072
|
|
|
|
9,068
|
|
Less: Purchases of property and equipment
|
|
|
(2,851
|
)
|
|
|
(1,878
|
)
|
|
|
(1,396
|
)
|
|
|
(1,537
|
)
|
|
|
(1,445
|
)
|
|
|
(2,024
|
)
|
|
|
(1,318
|
)
|
|
|
(1,992
|
)
|
Plus: Severance
|
|
|
-
|
|
|
|
1,438
|
|
|
|
12
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
1,056
|
|
|
|
141
|
|
|
|
1,504
|
|
Adjusted OCF (as defined by the Company)
|
|
$
|
1,754
|
|
|
$
|
7,439
|
|
|
$
|
7,874
|
|
|
$
|
7,319
|
|
|
$
|
7,674
|
|
|
$
|
8,944
|
|
|
$
|
8,895
|
|
|
$
|
8,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
(c) EBITDA is the starting point for calculation of operating cash
flow for purposes of the Company's short term and long term
incentive plans. Management and the Board of Directors also rely on
EBITDA for purposes of determining the Company's capital allocation
policies.
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170426006374/en/
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