| [April 25, 2018] |
 |
Spok Reports 2018 First Quarter Operating Results; Software Revenue and Wireless Trends Improve
Spok
Holdings, Inc. (NASDAQ: SPOK), the global
leader in healthcare communications, today announced operating
results for the first quarter ended March 31, 2018. In addition, the
Company's Board of Directors declared a regular quarterly dividend of
$0.125 per share, payable on June 22, 2018 to stockholders of record on
May 25, 2018.
2018 First Quarter Results:
Consolidated revenue for the first quarter of 2018 under Generally
Accepted Accounting Principles ("GAAP") was $43.1 million compared to
$41.4 million in the first quarter of 2017. On January 1, 2018, Spok
adopted Accounting Standards Codification ("ASC") 606, Revenue from
Contracts with Customers, using the modified retrospective method
applied to those contracts which were not completed as of January 1,
2018. Unless otherwise stated, results for reporting periods beginning
after January 1, 2018 are presented under ASC 606, while prior period
amounts have not been adjusted, and continue to be reported in
accordance with the Company's historic accounting under ASC 605.
|
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|
|
|
|
|
Three months ended
|
|
(Dollars in thousands)
|
|
March 31,
2018
|
|
March 31,
2018(1)
|
|
March 31,
2017
|
|
Change(2)
(%)
|
|
Wireless revenue
|
|
|
|
|
|
|
|
|
|
Paging revenue
|
|
$
|
23,308
|
|
$
|
23,308
|
|
$
|
24,972
|
|
(6.7
|
)%
|
|
Product and other revenue
|
|
|
961
|
|
|
961
|
|
|
888
|
|
8.2
|
%
|
|
Total wireless revenue
|
|
$
|
24,269
|
|
$
|
24,269
|
|
$
|
25,860
|
|
(6.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Software revenue
|
|
|
|
|
|
|
|
|
|
Operations revenue
|
|
$
|
9,471
|
|
$
|
8,189
|
|
$
|
6,041
|
|
35.6
|
%
|
|
Maintenance revenue
|
|
|
9,374
|
|
|
9,999
|
|
|
9,543
|
|
4.8
|
%
|
|
Total software revenue
|
|
|
18,845
|
|
|
18,188
|
|
|
15,584
|
|
16.7
|
%
|
|
Total revenue
|
|
$
|
43,114
|
|
$
|
42,457
|
|
$
|
41,444
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to exclude the adoption of ASC 606.
(2)
As compared against results adjusted to exclude the adoption of
ASC 606.
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|
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GAAP net income for the first quarter of 2018 was $0.5 million, or $0.03
per share, compared to $0.9 million, or $0.04 per share, in the first
quarter of 2017.
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Three months ended
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(Dollars in thousands)
|
|
March 31,
2018
|
|
March 31,
2018(1)
|
|
March 31,
2017
|
|
Net income
|
|
$
|
511
|
|
$
|
309
|
|
$
|
854
|
|
Net income per share
|
|
$
|
0.03
|
|
$
|
0.02
|
|
$
|
0.04
|
|
EBITDA
|
|
$
|
3,463
|
|
$
|
3,250
|
|
$
|
4,605
|
|
|
|
|
|
|
|
|
|
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(1) Adjusted to exclude the adoption of ASC 606.
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|
Other key results and highlights for the first quarter of 2018 included:
-
Software bookings of $18.1 million, compared to $19.8 million in the
prior year quarter. First quarter 2018 bookings included $7.1 million
of operations bookings and $11.0 million of maintenance renewals,
compared to $9.5 million of operations bookings and $10.3 million of
maintenance renewals in the first quarter of 2017.
-
Software backlog totaled $35.9 million at March 31, 2018, or $42.7
million adjusted to exclude the adoption of ASC 606, compared to $40.6
million in the year earlier period. As a result of the adoption of ASC
606 approximately $5.3 million of backlog, that could have been
recognized in 2018 under prior accounting rules, was re-cast to
retained earnings as part of the beginning balance as of January 1,
2018.
-
The revenue renewal rate for software maintenance in the first quarter
of 2018 was greater than 99 percent.
-
Paging units in service at March 31, 2018 totaled 1,030,000, compared
to 1,091,000 at the end of the prior year period.
-
The quarterly rate of wireless revenue erosion was 1.3 percent in the
first quarter of 2018 versus 2.5 percent in the year-earlier quarter.
-
Consolidated operating expenses (excluding depreciation, amortization
and accretion) totaled $39.7 million in the first quarter of 2018,
compared to $36.8 million in the year-earlier quarter.
-
Capital returned to stockholders in the first quarter of 2018 totaled
$4.7 million, in the form of $2.8 million from the regular quarterly
dividend and $1.9 million of share repurchases.
-
The Company's cash balance at March 31, 2018 was $101.3 million,
compared to $118.9 million at March 31, 2017, and $107.2 million at
December 31, 2017.
Management Commentary:
"We are encouraged with our performance in the first quarter of 2018 and
believe that it provides a solid base for the remainder of the year,"
said Vincent D. Kelly, chief executive officer. "First quarter results
were in line with our seasonal expectations, and we saw strong
year-over-year performance in a number of key operating measures,
including revenue levels and average deal size, as well as wireless
subscriber retention. We accomplished this 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. 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." Kelly added, "Throughout 2018, we will
remain focused on returning value to our shareholders through our
capital allocation strategy, which includes dividends, share repurchases
and key strategic investments in our products and business to create
sustainable growth."
Business Outlook:
For the full-year 2018, adjusted to exclude the adoption of ASC 606, the
Company continues to expect total revenue to range from $161 million to
$177 million, operating expenses (excluding depreciation, amortization
and accretion) to range from $158 million to $165 million, and capital
expenditures to range from $4 million to $8 million.
2018 First Quarter Call and Replay:
The Company plans to host a conference call for investors to discuss its
2018 first quarter results at 10:00 a.m. ET on Thursday, April 26, 2018.
Dial-in numbers for the call are 334-323-0522 or 877-260-1479. The pass
code for the call is 9101087. A replay of the call will be available
from 1:00 p.m. ET on April 26, 2018 until 1:00 p.m. ET on Thursday, May
10, 2018. To listen to the replay, please register at http://tinyurl.com/Spok2018Q1earningsreplay.
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.
Spok is a trademark of Spok Holdings, Inc. Spok Care Connect and Spok
Mobile are trademarks of Spok, 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, unauthorized breaches or failures in
cybersecurity measures adopted by us and/or included in our products 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.
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SPOK HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
|
|
(Unaudited and in thousands except share, per share amounts and ARPU)
|
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|
|
|
|
|
|
|
|
For the three months ended
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|
|
3/31/2018
|
|
3/31/2017
|
|
Revenue:
|
|
|
|
|
|
Wireless
|
|
$
|
24,269
|
|
|
$
|
25,860
|
|
|
Software
|
|
|
18,845
|
|
|
|
15,584
|
|
|
Total revenue
|
|
|
43,114
|
|
|
|
41,444
|
|
|
Operating expenses:
|
|
|
|
|
|
Cost of revenue
|
|
|
7,712
|
|
|
|
7,036
|
|
|
Research and development
|
|
|
5,735
|
|
|
|
4,105
|
|
|
Service, rental and maintenance
|
|
|
7,750
|
|
|
|
8,066
|
|
|
Selling and marketing
|
|
|
6,490
|
|
|
|
5,922
|
|
|
General and administrative
|
|
|
11,964
|
|
|
|
11,710
|
|
|
Depreciation, amortization and accretion
|
|
|
2,713
|
|
|
|
3,223
|
|
|
Total operating expenses
|
|
|
42,364
|
|
|
|
40,062
|
|
|
% of total revenue
|
|
|
98.3
|
%
|
|
|
96.7
|
%
|
|
Operating income
|
|
|
750
|
|
|
|
1,382
|
|
|
% of total revenue
|
|
|
0
|
|
|
|
3.3
|
%
|
|
Interest income
|
|
|
283
|
|
|
|
122
|
|
|
Other expense
|
|
|
(47
|
)
|
|
|
(30
|
)
|
|
Income before income tax expense
|
|
|
986
|
|
|
|
1,474
|
|
|
Income tax expense
|
|
|
(475
|
)
|
|
|
(620
|
)
|
|
Net income
|
|
$
|
511
|
|
|
$
|
854
|
|
|
Basic and diluted net income per common share
|
|
$
|
0.03
|
|
|
$
|
0.04
|
|
|
Basic and diluted weighted average common shares outstanding
|
|
|
20,027,800
|
|
|
|
20,530,739
|
|
|
Diluted weighted average common shares outstanding
|
|
|
20,153,291
|
|
|
|
20,585,452
|
|
|
Key statistics:
|
|
|
|
|
|
Units in service
|
|
|
1,030
|
|
|
|
1,091
|
|
|
Average revenue per unit (ARPU)
|
|
$
|
7.47
|
|
|
$
|
7.56
|
|
|
Bookings
|
|
$
|
18,124
|
|
|
$
|
19,788
|
|
|
Backlog
|
|
$
|
35,930
|
|
|
$
|
40,555
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$
|
24,269
|
|
|
$
|
24,579
|
|
|
$
|
25,110
|
|
|
$
|
25,639
|
|
|
$
|
25,860
|
|
|
$
|
26,535
|
|
|
$
|
27,024
|
|
|
$
|
27,859
|
|
|
Software
|
|
|
18,845
|
|
|
|
19,191
|
|
|
|
18,526
|
|
|
|
16,686
|
|
|
|
15,584
|
|
|
|
17,649
|
|
|
|
18,331
|
|
|
|
16,776
|
|
|
Total revenue
|
|
|
43,114
|
|
|
|
43,770
|
|
|
|
43,636
|
|
|
|
42,325
|
|
|
|
41,444
|
|
|
|
44,184
|
|
|
|
45,355
|
|
|
|
44,635
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
7,712
|
|
|
|
7,122
|
|
|
|
7,069
|
|
|
|
7,190
|
|
|
|
7,036
|
|
|
|
7,482
|
|
|
|
7,639
|
|
|
|
7,513
|
|
|
Research and development
|
|
|
5,735
|
|
|
|
4,934
|
|
|
|
5,001
|
|
|
|
4,662
|
|
|
|
4,105
|
|
|
|
3,702
|
|
|
|
3,645
|
|
|
|
3,211
|
|
|
Service, rental and maintenance
|
|
|
7,750
|
|
|
|
7,617
|
|
|
|
7,875
|
|
|
|
7,944
|
|
|
|
8,066
|
|
|
|
7,989
|
|
|
|
8,253
|
|
|
|
8,188
|
|
|
Selling and marketing
|
|
|
6,490
|
|
|
|
6,039
|
|
|
|
5,533
|
|
|
|
5,329
|
|
|
|
5,922
|
|
|
|
5,855
|
|
|
|
5,955
|
|
|
|
6,429
|
|
|
General and administrative
|
|
|
11,964
|
|
|
|
11,695
|
|
|
|
12,058
|
|
|
|
11,939
|
|
|
|
11,710
|
|
|
|
11,277
|
|
|
|
10,605
|
|
|
|
10,439
|
|
|
Depreciation, amortization and accretion
|
|
|
2,713
|
|
|
|
2,774
|
|
|
|
2,775
|
|
|
|
2,851
|
|
|
|
3,223
|
|
|
|
3,176
|
|
|
|
3,229
|
|
|
|
3,235
|
|
|
Total operating expenses
|
|
|
42,364
|
|
|
|
40,181
|
|
|
|
40,311
|
|
|
|
39,915
|
|
|
|
40,062
|
|
|
|
39,481
|
|
|
|
39,326
|
|
|
|
39,015
|
|
|
% of total revenue
|
|
|
98.3
|
%
|
|
|
91.8
|
%
|
|
|
92.4
|
%
|
|
|
94.3
|
%
|
|
|
96.7
|
%
|
|
|
89.4
|
%
|
|
|
86.7
|
%
|
|
|
87.4
|
%
|
|
Operating income
|
|
|
750
|
|
|
|
3,589
|
|
|
|
3,325
|
|
|
|
2,410
|
|
|
|
1,382
|
|
|
|
4,703
|
|
|
|
6,029
|
|
|
|
5,620
|
|
|
% of total revenue
|
|
|
1.7
|
%
|
|
|
8.2
|
%
|
|
|
7.6
|
%
|
|
|
5.7
|
%
|
|
|
3.3
|
%
|
|
|
10.6
|
%
|
|
|
13.3
|
%
|
|
|
12.6
|
%
|
|
Interest income, net
|
|
|
283
|
|
|
|
229
|
|
|
|
214
|
|
|
|
154
|
|
|
|
122
|
|
|
|
99
|
|
|
|
67
|
|
|
|
61
|
|
|
Other expense, net
|
|
|
(47
|
)
|
|
|
(282
|
)
|
|
|
359
|
|
|
|
89
|
|
|
|
(30
|
)
|
|
|
100
|
|
|
|
85
|
|
|
|
104
|
|
|
Income before income tax expense
|
|
|
986
|
|
|
|
3,536
|
|
|
|
3,898
|
|
|
|
2,653
|
|
|
|
1,474
|
|
|
|
4,902
|
|
|
|
6,181
|
|
|
|
5,785
|
|
|
Income tax expense
|
|
|
(475
|
)
|
|
|
(24,920
|
)
|
|
|
(171
|
)
|
|
|
(1,155
|
)
|
|
|
(620
|
)
|
|
|
(1,876
|
)
|
|
|
(2,123
|
)
|
|
|
(2,334
|
)
|
|
Net income (loss)
|
|
$
|
511
|
|
|
$
|
(21,384
|
)
|
|
$
|
3,727
|
|
|
$
|
1,498
|
|
|
$
|
854
|
|
|
$
|
3,026
|
|
|
$
|
4,058
|
|
|
$
|
3,451
|
|
|
Basic and diluted net income (loss) per common share
|
|
$
|
0.03
|
|
|
$
|
(1.07
|
)
|
|
$
|
0.19
|
|
|
$
|
0.07
|
|
|
$
|
0.04
|
|
|
$
|
0.15
|
|
|
$
|
0.20
|
|
|
$
|
0.17
|
|
|
Basic weighted average common shares outstanding
|
|
|
20,027,800
|
|
|
|
19,987,763
|
|
|
|
19,977,263
|
|
|
|
20,353,801
|
|
|
|
20,530,739
|
|
|
|
20,529,958
|
|
|
|
20,541,275
|
|
|
|
20,568,058
|
|
|
Diluted weighted average common shares outstanding
|
|
|
20,153,291
|
|
|
|
20,008,321
|
|
|
|
20,366,102
|
|
|
|
20,585,542
|
|
|
|
20,529,958
|
|
|
|
20,541,275
|
|
|
|
20,568,058
|
|
|
|
20,706,082
|
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
1,030
|
|
|
|
1,049
|
|
|
|
1,063
|
|
|
|
1,086
|
|
|
|
1,091
|
|
|
|
1,111
|
|
|
|
1,124
|
|
|
|
1,144
|
|
|
Average revenue per unit (ARPU)
|
|
$
|
7.47
|
|
|
$
|
7.46
|
|
|
$
|
7.48
|
|
|
$
|
7.52
|
|
|
$
|
7.56
|
|
|
$
|
7.59
|
|
|
$
|
7.63
|
|
|
$
|
7.71
|
|
|
Bookings
|
|
$
|
18,124
|
|
|
$
|
19,190
|
|
|
$
|
18,327
|
|
|
$
|
20,405
|
|
|
$
|
19,788
|
|
|
$
|
20,025
|
|
|
$
|
18,659
|
|
|
$
|
20,063
|
|
|
Backlog
|
|
$
|
35,930
|
|
|
$
|
42,305
|
|
|
$
|
46,900
|
|
|
$
|
43,455
|
|
|
$
|
40,555
|
|
|
$
|
38,295
|
|
|
$
|
38,812
|
|
|
$
|
39,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
3/31/2018
|
|
12/31/2017
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
101,302
|
|
|
$
|
107,157
|
|
|
Accounts receivable, net
|
|
|
37,068
|
|
|
|
32,279
|
|
|
Prepaid expenses and other
|
|
|
7,789
|
|
|
|
5,752
|
|
|
Inventory
|
|
|
1,649
|
|
|
|
1,672
|
|
|
Total current assets
|
|
|
147,808
|
|
|
|
146,860
|
|
|
Non-current assets:
|
|
|
|
|
|
Property and equipment, net
|
|
|
12,622
|
|
|
|
13,399
|
|
|
Goodwill
|
|
|
133,031
|
|
|
|
133,031
|
|
|
Intangible assets, net
|
|
|
7,292
|
|
|
|
7,917
|
|
|
Deferred income tax assets
|
|
|
45,593
|
|
|
|
47,679
|
|
|
Other non-current assets
|
|
|
1,522
|
|
|
|
1,675
|
|
|
Total non-current assets
|
|
|
200,060
|
|
|
|
203,701
|
|
|
Total assets
|
|
$
|
347,868
|
|
|
$
|
350,561
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,049
|
|
|
$
|
1,305
|
|
|
Accrued compensation and benefits
|
|
|
9,177
|
|
|
|
11,018
|
|
|
Accrued taxes
|
|
|
2,097
|
|
|
|
2,547
|
|
|
Deferred revenue
|
|
|
30,590
|
|
|
|
31,414
|
|
|
Other current liabilities
|
|
|
4,455
|
|
|
|
4,610
|
|
|
Total current liabilities
|
|
|
47,368
|
|
|
|
50,894
|
|
|
Non-current liabilities:
|
|
|
|
|
|
Deferred revenue
|
|
|
964
|
|
|
|
1,063
|
|
|
Other long-term liabilities
|
|
|
8,282
|
|
|
|
8,075
|
|
|
Total non-current liabilities
|
|
|
9,246
|
|
|
|
9,138
|
|
|
Total liabilities
|
|
|
56,614
|
|
|
|
60,032
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
Common stock
|
|
|
2
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
|
98,233
|
|
|
|
99,819
|
|
|
Accumulated other comprehensive loss
|
|
|
(1,508
|
)
|
|
|
(1,088
|
)
|
|
Retained earnings
|
|
|
194,527
|
|
|
|
191,796
|
|
|
Total stockholders' equity
|
|
|
291,254
|
|
|
|
290,529
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
347,868
|
|
|
$
|
350,561
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
|
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
|
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
3/31/2018
|
|
3/31/2017
|
|
Cash flows provided by operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
511
|
|
|
$
|
854
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
2,713
|
|
|
|
3,223
|
|
|
Deferred income tax expense
|
|
|
475
|
|
|
|
279
|
|
|
Stock based compensation
|
|
|
1,234
|
|
|
|
955
|
|
|
Provisions for doubtful accounts, service credits and other
|
|
|
628
|
|
|
|
223
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments of non-cash transaction taxes
|
|
|
(53
|
)
|
|
|
(122
|
)
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(4,106
|
)
|
|
|
(636
|
)
|
|
Prepaid expenses, intangible assets and other assets
|
|
|
(1,202
|
)
|
|
|
(146
|
)
|
|
Accounts payable, accrued liabilities and other
|
|
|
(2,412
|
)
|
|
|
(2,477
|
)
|
|
Deferred revenue
|
|
|
3,336
|
|
|
|
1,515
|
|
|
Net cash provided by operating activities
|
|
|
1,124
|
|
|
|
3,668
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property and equipment, net of proceeds from disposals
of property and equipment
|
|
|
(1,164
|
)
|
|
|
(2,851
|
)
|
|
Net cash used in investing activities
|
|
|
(1,164
|
)
|
|
|
(2,851
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Cash distributions to stockholders
|
|
|
(2,740
|
)
|
|
|
(7,694
|
)
|
|
Purchase of common stock for tax withholding on vested equity awards
|
|
|
(892
|
)
|
|
|
-
|
|
|
Purchase of common stock (including commissions), net of proceeds
from issuance of common stock
|
|
|
(1,927
|
)
|
|
|
4
|
|
|
Net cash used in financing activities
|
|
|
(5,559
|
)
|
|
|
(7,690
|
)
|
|
Effect of exchange rate on cash
|
|
|
(256
|
)
|
|
|
4
|
|
|
Net decrease in cash and cash equivalents
|
|
|
(5,855
|
)
|
|
|
(6,869
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
107,157
|
|
|
|
125,816
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
101,302
|
|
|
$
|
118,947
|
|
|
Supplemental disclosure:
|
|
|
|
|
|
Income taxes paid
|
|
$
|
50
|
|
|
$
|
180
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paging
|
|
$
|
23,308
|
|
$
|
23,624
|
|
$
|
24,128
|
|
$
|
24,572
|
|
$
|
24,972
|
|
$
|
25,441
|
|
$
|
25,944
|
|
$
|
26,564
|
|
Non-paging
|
|
|
961
|
|
|
955
|
|
|
982
|
|
|
1,067
|
|
|
888
|
|
|
1,094
|
|
|
1,080
|
|
|
1,295
|
|
Total wireless revenue
|
|
$
|
24,269
|
|
$
|
24,579
|
|
$
|
25,110
|
|
$
|
25,639
|
|
$
|
25,860
|
|
$
|
26,535
|
|
$
|
27,024
|
|
$
|
27,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
420
|
|
|
559
|
|
|
577
|
|
|
623
|
|
|
543
|
|
|
551
|
|
|
560
|
|
|
503
|
|
License
|
|
|
3,956
|
|
|
2,431
|
|
|
1,995
|
|
|
1,641
|
|
|
1,171
|
|
|
1,594
|
|
|
1,842
|
|
|
1,691
|
|
Services
|
|
|
4,071
|
|
|
5,437
|
|
|
5,189
|
|
|
3,650
|
|
|
3,354
|
|
|
4,500
|
|
|
5,578
|
|
|
4,202
|
|
Equipment
|
|
|
1,024
|
|
|
945
|
|
|
1,102
|
|
|
1,127
|
|
|
973
|
|
|
1,402
|
|
|
1,091
|
|
|
1,250
|
|
Operations revenue
|
|
$
|
9,471
|
|
$
|
9,372
|
|
$
|
8,863
|
|
$
|
7,041
|
|
$
|
6,041
|
|
$
|
8,047
|
|
$
|
9,071
|
|
$
|
7,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance revenue
|
|
$
|
9,374
|
|
$
|
9,819
|
|
$
|
9,663
|
|
$
|
9,645
|
|
$
|
9,543
|
|
$
|
9,602
|
|
$
|
9,260
|
|
$
|
9,130
|
|
Total software revenue
|
|
$
|
18,845
|
|
$
|
19,191
|
|
$
|
18,526
|
|
$
|
16,686
|
|
$
|
15,584
|
|
$
|
17,649
|
|
$
|
18,331
|
|
$
|
16,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
43,114
|
|
$
|
43,770
|
|
$
|
43,636
|
|
$
|
42,325
|
|
$
|
41,444
|
|
$
|
44,184
|
|
$
|
45,355
|
|
$
|
44,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
$
|
4,874
|
|
$
|
4,374
|
|
|
$
|
4,330
|
|
$
|
4,613
|
|
$
|
4,490
|
|
$
|
4,611
|
|
|
$
|
4,469
|
|
$
|
4,404
|
|
Cost of sales
|
|
|
2,309
|
|
|
1,990
|
|
|
|
2,228
|
|
|
1,904
|
|
|
1,995
|
|
|
2,415
|
|
|
|
2,587
|
|
|
2,323
|
|
Stock based compensation
|
|
|
55
|
|
|
58
|
|
|
|
4
|
|
|
60
|
|
|
58
|
|
|
(108
|
)
|
|
|
57
|
|
|
58
|
|
Other
|
|
|
474
|
|
|
700
|
|
|
|
507
|
|
|
613
|
|
|
493
|
|
|
564
|
|
|
|
526
|
|
|
728
|
|
Total cost of revenue
|
|
|
7,712
|
|
|
7,122
|
|
|
|
7,069
|
|
|
7,190
|
|
|
7,036
|
|
|
7,482
|
|
|
|
7,639
|
|
|
7,513
|
|
Research and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
4,002
|
|
|
3,521
|
|
|
|
4,005
|
|
|
3,807
|
|
|
3,405
|
|
|
3,195
|
|
|
|
2,939
|
|
|
2,505
|
|
Outside services
|
|
|
1,513
|
|
|
1,361
|
|
|
|
849
|
|
|
659
|
|
|
516
|
|
|
511
|
|
|
|
569
|
|
|
580
|
|
Stock based compensation
|
|
|
71
|
|
|
(71
|
)
|
|
|
43
|
|
|
65
|
|
|
55
|
|
|
(82
|
)
|
|
|
46
|
|
|
48
|
|
Other
|
|
|
149
|
|
|
123
|
|
|
|
104
|
|
|
131
|
|
|
129
|
|
|
78
|
|
|
|
91
|
|
|
78
|
|
Total research and development
|
|
|
5,735
|
|
|
4,934
|
|
|
|
5,001
|
|
|
4,662
|
|
|
4,105
|
|
|
3,702
|
|
|
|
3,645
|
|
|
3,211
|
|
Service, rental and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
2,693
|
|
|
2,413
|
|
|
|
2,582
|
|
|
2,607
|
|
|
2,665
|
|
|
2,687
|
|
|
|
2,638
|
|
|
2,644
|
|
Site rent
|
|
|
3,496
|
|
|
3,471
|
|
|
|
3,534
|
|
|
3,604
|
|
|
3,620
|
|
|
3,618
|
|
|
|
3,626
|
|
|
3,668
|
|
Telecommunications
|
|
|
898
|
|
|
979
|
|
|
|
1,060
|
|
|
1,001
|
|
|
1,081
|
|
|
1,096
|
|
|
|
1,162
|
|
|
1,127
|
|
Stock based compensation
|
|
|
24
|
|
|
20
|
|
|
|
20
|
|
|
20
|
|
|
20
|
|
|
(29
|
)
|
|
|
15
|
|
|
15
|
|
Other
|
|
|
639
|
|
|
734
|
|
|
|
679
|
|
|
712
|
|
|
680
|
|
|
617
|
|
|
|
812
|
|
|
734
|
|
Total service, rental and maintenance
|
|
|
7,750
|
|
|
7,617
|
|
|
|
7,875
|
|
|
7,944
|
|
|
8,066
|
|
|
7,989
|
|
|
|
8,253
|
|
|
8,188
|
|
Selling and marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
3,294
|
|
|
2,573
|
|
|
|
3,113
|
|
|
3,039
|
|
|
3,071
|
|
|
3,556
|
|
|
|
3,467
|
|
|
3,489
|
|
Commissions
|
|
|
1,774
|
|
|
1,634
|
|
|
|
1,234
|
|
|
1,121
|
|
|
1,202
|
|
|
1,248
|
|
|
|
1,317
|
|
|
1,559
|
|
Stock based compensation
|
|
|
135
|
|
|
93
|
|
|
|
84
|
|
|
99
|
|
|
101
|
|
|
(131
|
)
|
|
|
75
|
|
|
75
|
|
Other
|
|
|
1,287
|
|
|
1,739
|
|
|
|
1,102
|
|
|
1,070
|
|
|
1,548
|
|
|
1,182
|
|
|
|
1,096
|
|
|
1,306
|
|
Total selling and marketing
|
|
|
6,490
|
|
|
6,039
|
|
|
|
5,533
|
|
|
5,329
|
|
|
5,922
|
|
|
5,855
|
|
|
|
5,955
|
|
|
6,429
|
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
4,416
|
|
|
3,649
|
|
|
|
4,569
|
|
|
4,420
|
|
|
4,439
|
|
|
4,426
|
|
|
|
4,076
|
|
|
4,249
|
|
Stock based compensation
|
|
|
949
|
|
|
774
|
|
|
|
711
|
|
|
755
|
|
|
722
|
|
|
(863
|
)
|
|
|
507
|
|
|
534
|
|
Bad debt
|
|
|
528
|
|
|
143
|
|
|
|
184
|
|
|
107
|
|
|
94
|
|
|
137
|
|
|
|
97
|
|
|
104
|
|
Facility rent and costs
|
|
|
1,941
|
|
|
1,865
|
|
|
|
2,013
|
|
|
1,995
|
|
|
1,838
|
|
|
1,694
|
|
|
|
1,673
|
|
|
1,609
|
|
Outside services
|
|
|
2,122
|
|
|
2,924
|
|
|
|
2,351
|
|
|
2,507
|
|
|
2,627
|
|
|
2,430
|
|
|
|
2,247
|
|
|
2,067
|
|
Taxes, licenses and permits
|
|
|
1,080
|
|
|
1,120
|
|
|
|
1,077
|
|
|
1,034
|
|
|
989
|
|
|
976
|
|
|
|
1,164
|
|
|
1,060
|
|
Other
|
|
|
928
|
|
|
1,220
|
|
|
|
1,153
|
|
|
1,121
|
|
|
1,001
|
|
|
2,477
|
|
|
|
841
|
|
|
816
|
|
Total general and administrative
|
|
|
11,964
|
|
|
11,695
|
|
|
|
12,058
|
|
|
11,939
|
|
|
11,710
|
|
|
11,277
|
|
|
|
10,605
|
|
|
10,439
|
|
Depreciation, amortization and accretion
|
|
|
2,713
|
|
|
2,774
|
|
|
|
2,775
|
|
|
2,851
|
|
|
3,223
|
|
|
3,176
|
|
|
|
3,229
|
|
|
3,235
|
|
Operating expenses
|
|
$
|
42,364
|
|
$
|
40,181
|
|
|
$
|
40,311
|
|
$
|
39,915
|
|
$
|
40,062
|
|
$
|
39,481
|
|
|
$
|
39,326
|
|
$
|
39,015
|
|
Capital expenditures
|
|
$
|
1,164
|
|
$
|
2,179
|
|
|
$
|
1,816
|
|
$
|
2,353
|
|
$
|
2,851
|
|
$
|
1,878
|
|
|
$
|
1,396
|
|
$
|
1,537
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
Paging units in service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning units in service (000's)
|
|
|
1,049
|
|
|
|
1,063
|
|
|
|
1,086
|
|
|
|
1,091
|
|
|
|
1,111
|
|
|
|
1,124
|
|
|
|
1,144
|
|
|
|
1,153
|
|
|
Gross placements
|
|
|
25
|
|
|
|
26
|
|
|
|
30
|
|
|
|
42
|
|
|
|
28
|
|
|
|
36
|
|
|
|
34
|
|
|
|
39
|
|
|
Gross disconnects
|
|
|
(44
|
)
|
|
|
(40
|
)
|
|
|
(53
|
)
|
|
|
(47
|
)
|
|
|
(48
|
)
|
|
|
(49
|
)
|
|
|
(54
|
)
|
|
|
(48
|
)
|
|
Net change
|
|
|
(19
|
)
|
|
|
(14
|
)
|
|
|
(23
|
)
|
|
|
(5
|
)
|
|
|
(20
|
)
|
|
|
(13
|
)
|
|
|
(20
|
)
|
|
|
(9
|
)
|
|
Ending units in service
|
|
|
1,030
|
|
|
|
1,049
|
|
|
|
1,063
|
|
|
|
1,086
|
|
|
|
1,091
|
|
|
|
1,111
|
|
|
|
1,124
|
|
|
|
1,144
|
|
|
End of period units in service % of total (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
81.1
|
%
|
|
|
80.7
|
%
|
|
|
80.4
|
%
|
|
|
80.4
|
%
|
|
|
79.7
|
%
|
|
|
79.3
|
%
|
|
|
78.6
|
%
|
|
|
78.2
|
%
|
|
Government
|
|
|
5.9
|
%
|
|
|
6.0
|
%
|
|
|
6.1
|
%
|
|
|
6.3
|
%
|
|
|
6.4
|
%
|
|
|
6.5
|
%
|
|
|
6.7
|
%
|
|
|
6.8
|
%
|
|
Large enterprise
|
|
|
6.0
|
%
|
|
|
6.0
|
%
|
|
|
6.0
|
%
|
|
|
6.1
|
%
|
|
|
6.1
|
%
|
|
|
6.2
|
%
|
|
|
6.5
|
%
|
|
|
6.6
|
%
|
|
Other(b)
|
|
|
7.0
|
%
|
|
|
7.2
|
%
|
|
|
7.4
|
%
|
|
|
7.3
|
%
|
|
|
7.7
|
%
|
|
|
8.0
|
%
|
|
|
8.2
|
%
|
|
|
8.3
|
%
|
|
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
|
|
|
88
|
|
|
|
92
|
|
|
|
95
|
|
|
|
98
|
|
|
|
102
|
|
|
|
106
|
|
|
|
110
|
|
|
|
114
|
|
|
101 to 1,000 units
|
|
|
198
|
|
|
|
198
|
|
|
|
201
|
|
|
|
204
|
|
|
|
214
|
|
|
|
217
|
|
|
|
222
|
|
|
|
228
|
|
|
>1,000 units
|
|
|
744
|
|
|
|
759
|
|
|
|
767
|
|
|
|
784
|
|
|
|
775
|
|
|
|
788
|
|
|
|
792
|
|
|
|
802
|
|
|
Total
|
|
|
1,030
|
|
|
|
1,049
|
|
|
|
1,063
|
|
|
|
1,086
|
|
|
|
1,091
|
|
|
|
1,111
|
|
|
|
1,124
|
|
|
|
1,144
|
|
|
Account size net loss rate(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
|
(4.7
|
)%
|
|
|
(3.6
|
)%
|
|
|
(2.8
|
)%
|
|
|
(3.7
|
)%
|
|
|
(3.4
|
)%
|
|
|
(3.9
|
)%
|
|
|
(3.5
|
)%
|
|
|
(4.0
|
)%
|
|
101 to 1,000 units
|
|
|
(10.0
|
)%
|
|
|
(1.1
|
)%
|
|
|
(1.8
|
)%
|
|
|
(4.5
|
)%
|
|
|
(1.3
|
)%
|
|
|
(2.3
|
)%
|
|
|
(2.6
|
)%
|
|
|
(4.0
|
)%
|
|
>1,000 units
|
|
|
(1.9
|
)%
|
|
|
(1.1
|
)%
|
|
|
(2.2
|
)%
|
|
|
1.1
|
%
|
|
|
(1.7
|
)%
|
|
|
(0.5
|
)%
|
|
|
(1.2
|
)%
|
|
|
0.6
|
%
|
|
Total
|
|
|
(1.8
|
)%
|
|
|
(1.3
|
)%
|
|
|
(2.2
|
)%
|
|
|
(0.4
|
)%
|
|
|
(1.8
|
)%
|
|
|
(1.2
|
)%
|
|
|
(1.7
|
)%
|
|
|
(0.8
|
)%
|
|
Account size ARPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
$
|
12.13
|
|
|
$
|
12.11
|
|
|
$
|
12.23
|
|
|
$
|
12.16
|
|
|
$
|
12.22
|
|
|
$
|
12.25
|
|
|
$
|
12.34
|
|
|
$
|
12.48
|
|
|
101 to 1,000 units
|
|
|
8.47
|
|
|
|
8.58
|
|
|
|
8.62
|
|
|
|
8.61
|
|
|
|
8.66
|
|
|
|
8.63
|
|
|
|
8.64
|
|
|
|
8.65
|
|
|
>1,000 units
|
|
|
6.65
|
|
|
|
6.59
|
|
|
|
6.59
|
|
|
|
6.64
|
|
|
|
6.64
|
|
|
|
6.67
|
|
|
|
6.68
|
|
|
|
6.75
|
|
|
Total
|
|
$
|
7.47
|
|
|
$
|
7.46
|
|
|
$
|
7.48
|
|
|
$
|
7.52
|
|
|
$
|
7.56
|
|
|
$
|
7.59
|
|
|
$
|
7.63
|
|
|
$
|
7.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
Reconciliation of net income to EBITDA (b) (c):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
511
|
|
|
$
|
(21,384
|
)
|
|
$
|
3,727
|
|
|
$
|
1,498
|
|
|
$
|
854
|
|
|
$
|
3,026
|
|
|
$
|
4,058
|
|
|
$
|
3,451
|
|
|
Plus (less): Income tax expense
|
|
|
475
|
|
|
|
24,920
|
|
|
|
171
|
|
|
|
1,155
|
|
|
|
620
|
|
|
|
1,876
|
|
|
|
2,123
|
|
|
|
2,334
|
|
|
Plus (less): Other expense (income)
|
|
|
47
|
|
|
|
282
|
|
|
|
(359
|
)
|
|
|
(89
|
)
|
|
|
30
|
|
|
|
(100
|
)
|
|
|
(85
|
)
|
|
|
(104
|
)
|
|
Less: Interest income
|
|
|
(283
|
)
|
|
|
(229
|
)
|
|
|
(214
|
)
|
|
|
(154
|
)
|
|
|
(122
|
)
|
|
|
(99
|
)
|
|
|
(67
|
)
|
|
|
(61
|
)
|
|
Operating income
|
|
|
750
|
|
|
|
3,589
|
|
|
|
3,325
|
|
|
|
2,410
|
|
|
|
1,382
|
|
|
|
4,703
|
|
|
|
6,029
|
|
|
|
5,620
|
|
|
Plus: depreciation, amortization and accretion
|
|
|
2,713
|
|
|
|
2,774
|
|
|
|
2,775
|
|
|
|
2,851
|
|
|
|
3,223
|
|
|
|
3,176
|
|
|
|
3,229
|
|
|
|
3,235
|
|
|
EBITDA (as defined by the Company)
|
|
|
3,463
|
|
|
|
6,363
|
|
|
|
6,100
|
|
|
|
5,261
|
|
|
|
4,605
|
|
|
|
7,879
|
|
|
|
9,258
|
|
|
|
8,855
|
|
|
Less: Purchases of property and equipment
|
|
|
(1,164
|
)
|
|
|
(2,179
|
)
|
|
|
(1,816
|
)
|
|
|
(2,353
|
)
|
|
|
(2,851
|
)
|
|
|
(1,878
|
)
|
|
|
(1,396
|
)
|
|
|
(1,537
|
)
|
|
Plus: Severance
|
|
|
(243
|
)
|
|
|
53
|
|
|
|
51
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,438
|
|
|
|
12
|
|
|
|
-
|
|
|
Adjusted OCF (as defined by the Company)
|
|
$
|
2,056
|
|
|
$
|
4,237
|
|
|
$
|
4,335
|
|
|
$
|
2,908
|
|
|
$
|
1,754
|
|
|
$
|
7,439
|
|
|
$
|
7,874
|
|
|
$
|
7,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to EBITDA adjusted to exclude the
adoption of ASC 606:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined by the Company)
|
|
$
|
3,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Software revenue
|
|
|
(657
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Cost of revenue
|
|
|
(17
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Selling and marketing
|
|
|
461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(d)
|
|
$
|
3,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. We define OCF as EBITDA less purchases of tangible assets
and severance expense in determining whether management has achieved
certain performance objectives for the year as set by our Board of
Directors in awarding annual and long term incentive compensation to
senior executives.
|
|
(d) Adjusted EBITDA represents EBITDA adjusted to exclude the
adoption of ASC 606. Adjusted EBITDA is used by the Company for
purposes of comparison to prior period results during its year of
transition (2018) under the modified retrospective approach.
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180425006676/en/
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