| [July 26, 2017] |
 |
Spok Reports 2017 Second Quarter Operating Results; Wireless Trends Continue to Improve, Software Revenue and Bookings Increase
Spok
Holdings, Inc. (NASDAQ: SPOK), the global
leader in healthcare communications, today announced operating
results for the second quarter ended June 30, 2017. In addition, the
Company's Board of Directors declared a regular quarterly dividend of
$0.125 per share, payable on September 8, 2017 to stockholders of record
on August 18, 2017.
2017 Second-Quarter Results:
In the 2017 second quarter, consolidated revenue was $42.3 million, up
from $41.4 million in the first quarter. Software revenue was $16.7
million in the second quarter of 2017, up from $15.6 million in the
prior quarter. Wireless revenue totaled $25.6 million in the second
quarter, compared to $25.8 million in the prior quarter.
Net income for the second quarter of 2017 was $1.5 million, or $0.07 per
diluted share, up from $0.9 million, or $0.04 per diluted share, in the
prior quarter.
Second quarter EBITDA (earnings before interest, taxes, depreciation,
amortization and accretion) totaled $5.3 million, or 12.4 percent of
revenue, up from EBITDA of $4.6 million, or 11.1 percent of revenue, in
the first quarter.
Other key results and highlights for the second quarter included:
-
The quarterly rate of paging unit erosion slowed to a record low of
0.4 percent in the second quarter of 2017, compared to 1.8 percent in
the prior quarter. Net paging unit losses were 5,000 in the second
quarter of 2017, down from 20,000 in the first quarter of 2017. Paging
units in service at June 30, 2017 totaled 1,086,000, compared to
1,091,000 at the end of the prior quarter.
-
The quarterly rate of wireless revenue erosion slowed to 0.9 percent
in the second quarter of 2017 versus 2.5 percent in the prior quarter.
-
Total paging ARPU (average revenue per unit) was $7.52 in the second
quarter of 2017, compared to $7.56 in the prior quarter.
-
Software bookings for the 2017 second quarter were $20.4 million, an
increase of more than 3 percent from the previous quarter. Second
quarter bookings included $9.9 million of operations bookings and
$10.5 million of maintenance renewals.
-
Software backlog totaled $43.5 million at June 30, 2017, up more than
7 percent, or nearly $3 million, from $40.6 million in the prior
quarter.
-
Of the $16.7 million in software revenue for the second quarter, $7.0
million was operations revenue and $9.7 million was maintenance
revenue, compared to $6.0 million and $9.6 million, respectively, of
the $15.6 million in software revenue in the first quarter of 2017.
-
The renewal rate for software maintenance in the second quarter of
2017 continued at greater than 99 percent.
-
Consolidated operating expenses (excluding depreciation, amortization
and accretion) totaled $37.1 million in the second quarter of 2017, up
slightly from $36.8 million in the prior quarter.
-
Capital expenses were $2.4 million in the second quarter of 2017,
compared to $2.9 million in the prior quarter.
-
The number of full-time equivalent employees at June 30, 2017 totaled
604, compared to 599 at March 31, 2017.
-
Capital returned to stockholders in the second quarter of 2017 totaled
$12.5 million, in the form of $2.5 million from dividends and $10
million from share repurchases.
-
The Company's cash balance at June 30, 2017 was $107.2 million, down
from $118.9 million at March 31, 2017.
Management Commentary:
"We are pleased with our performance in the second quarter of 2017 and
with the continuing benefits from our investments 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 year-over-year and sequential improvements in
subscriber retention, sales bookings and backlog levels, and operating
expense management. We believe 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 maintain our strong
balance sheet. Our ability to generate healthy cash flows allowed us to
execute against our capital allocation strategy, returning capital to
shareholders in the form of dividends and stock repurchases."
The Company posted solid results for its wireless products and services
in the second quarter. Gross pager placements of 42,000 were a sharp
increase from the prior and year-earlier quarters, and the highest level
in the past two years, while gross disconnects of 47,000 improved
slightly from 48,000 in the prior quarter and second quarter of 2016.
"As a result, annual net pager losses declined to an historical low of
5.1 percent from the prior year's second quarter, and were 0.4 percent
in the second quarter, down 40 basis points from 0.8 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 92.7
percent of our subscriber base and 90.8 percent of our paging revenue at
quarter end. Healthcare comprised 80.4 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."
Commenting on software results, Kelly said: "As a result of the
investments we are making in our sales and product platforms, software
revenues were up more than 7 percent from the first quarter and were
in-line with prior year levels. We believe we are well positioned for
the second half of the year, when software sales tend to be more
robust." Kelly primarily attributed the ability to generate sequential
growth in software revenue levels to a more than 99 percent renewal rate
on 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. "More
than 84 percent of our revenue streams are recurring in nature, when you
consider our solid wireless base and software maintenance contracts,"
added Kelly. "This provides us with the ability to make key investments
in our business while executing on our capital allocation strategy to
enhance stockholder value."
Kelly said second quarter bookings of $20.4 million were up from $19.8
million in the prior quarter, and included $10.5 million of maintenance
renewals bookings, a record high for the second quarter. Additionally,
software backlog of $43.5 million at June 30th was up more than 7
percent and 10 percent, respectively, from the prior quarter and year
levels. "We will continue to build on the solid 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 1,900
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 April, we attended the
Becker's Hospital Review 8th Annual Meeting in Chicago, where
our Chief Medical Officer, Dr. Andrew Mellin, presented 'The Healthcare
CIO Perspective on Supporting Clinical Workflows'. In May, we also
announced that several of our key executives would be participating at
upcoming 'C-Suite' conferences throughout 2017 to discuss industry
communication challenges with hospital leaders from across the country.
And in early May, Spok released the second part of the Company's annual
mobility in healthcare survey. Spok has been conducting this survey
since 2011 to assess mobile workflow enablement trends in hospitals
across the country. More than 300 U.S. healthcare professionals
responded to this year's questions about mobile strategy development,
bring your own device (BYOD) policies, communications infrastructure,
and opportunities to improve mobile communications. Spok will continue
to leverage the attention that we are receiving as a thought leader
within our industry."
Spok returned capital to stockholders, totaling $12.5 million, in the
second quarter of 2017. During the period, the Company paid $2.5 million
in dividends and repurchased 572,550 shares of common stock, totaling
$10 million, under its stock buy-back program. Kelly added, "Throughout
2017, we will remain focused on returning value to our shareholders
through our multi-faceted capital allocation strategy, which, for the
balance of 2017, includes dividends, and key strategic investments in
our products and business designed to create sustainable growth."
Michael W. Wallace, 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 to mitigate the additional
expenses related to our investments in our sales and product platforms.
Spok's balance sheet remains strong, with a cash balance of $107.2
million at June 30, 2017, and we continue to operate as a debt-free
company."
Business Outlook:
Commenting on the Company's previously provided financial guidance for
2017, Wallace noted: "As a result of the solid performance we saw in the
second quarter, 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 Second-Quarter Call and Replay:
Spok plans to host a conference call for investors to discuss its 2017
second quarter results at 10:00 a.m. ET on Thursday, July 27, 2017.
Dial-in numbers for the call are 719-785-1753 or 888-857-6932. The pass
code for the call is 7139572. A replay of the call will be available
from 1:00 p.m. ET on July 27, 2017 until 1:00 p.m. ET on Thursday,
August 10, 2017. To listen to the replay, please register at http://tinyurl.com/spok2017Q2earningsreplay.
Please 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
|
|
For the six months ended
|
|
|
|
6/30/2017
|
|
6/30/2016
|
|
6/30/2017
|
|
6/30/2016
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$
|
25,639
|
|
|
$
|
27,859
|
|
|
$
|
51,499
|
|
|
$
|
56,031
|
|
|
Software
|
|
|
16,686
|
|
|
|
16,776
|
|
|
|
32,270
|
|
|
|
33,992
|
|
|
Total revenue
|
|
|
42,325
|
|
|
|
44,635
|
|
|
|
83,769
|
|
|
|
90,023
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
7,190
|
|
|
|
7,513
|
|
|
|
14,226
|
|
|
|
15,528
|
|
|
Research and development
|
|
|
4,662
|
|
|
|
3,211
|
|
|
|
8,767
|
|
|
|
6,120
|
|
|
Service, rental and maintenance
|
|
|
7,944
|
|
|
|
8,188
|
|
|
|
16,010
|
|
|
|
16,492
|
|
|
Selling and marketing
|
|
|
5,329
|
|
|
|
6,429
|
|
|
|
11,251
|
|
|
|
12,957
|
|
|
General and administrative
|
|
|
11,939
|
|
|
|
10,439
|
|
|
|
23,649
|
|
|
|
20,946
|
|
|
Depreciation, amortization and accretion
|
|
|
2,851
|
|
|
|
3,235
|
|
|
|
6,074
|
|
|
|
6,558
|
|
|
Total operating expenses
|
|
|
39,915
|
|
|
|
39,015
|
|
|
|
79,977
|
|
|
|
78,601
|
|
|
% of total revenue
|
|
|
94.3
|
%
|
|
|
87.4
|
%
|
|
|
95.5
|
%
|
|
|
87.3
|
%
|
|
Operating income
|
|
|
2,410
|
|
|
|
5,620
|
|
|
|
3,792
|
|
|
|
11,422
|
|
|
% of total revenue
|
|
|
5.7
|
%
|
|
|
12.6
|
%
|
|
|
4.5
|
%
|
|
|
12.7
|
%
|
|
Interest income
|
|
|
154
|
|
|
|
61
|
|
|
|
276
|
|
|
|
109
|
|
|
Other income
|
|
|
89
|
|
|
|
104
|
|
|
|
58
|
|
|
|
357
|
|
|
Income before income tax expense
|
|
|
2,653
|
|
|
|
5,785
|
|
|
|
4,126
|
|
|
|
11,888
|
|
|
Income tax expense
|
|
|
(1,155
|
)
|
|
|
(2,334
|
)
|
|
|
(1,774
|
)
|
|
|
(4,993
|
)
|
|
Net income
|
|
$
|
1,498
|
|
|
$
|
3,451
|
|
|
$
|
2,352
|
|
|
$
|
6,895
|
|
|
Basic net income per common share
|
|
$
|
0.07
|
|
|
$
|
0.17
|
|
|
$
|
0.12
|
|
|
$
|
0.33
|
|
|
Diluted net income per common share
|
|
$
|
0.07
|
|
|
$
|
0.17
|
|
|
|
0.11
|
|
|
|
0.33
|
|
|
Basic weighted average common shares outstanding
|
|
|
20,353,801
|
|
|
|
20,568,058
|
|
|
|
20,441,781
|
|
|
|
20,637,070
|
|
|
Diluted weighted average common shares outstanding
|
|
|
20,366,102
|
|
|
|
20,568,058
|
|
|
|
20,508,473
|
|
|
|
20,637,070
|
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
1,086
|
|
|
|
1,144
|
|
|
|
1,086
|
|
|
|
1,144
|
|
|
Average revenue per unit (ARPU)
|
|
$
|
7.52
|
|
|
$
|
7.71
|
|
|
$
|
7.58
|
|
|
$
|
7.72
|
|
|
Bookings
|
|
$
|
20,405
|
|
|
$
|
20,063
|
|
|
$
|
40,193
|
|
|
$
|
35,170
|
|
|
Backlog
|
|
$
|
43,455
|
|
|
$
|
39,475
|
|
|
$
|
43,455
|
|
|
$
|
39,475
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
$
|
25,639
|
|
|
$
|
25,860
|
|
|
$
|
26,535
|
|
|
$
|
27,024
|
|
|
$
|
27,859
|
|
|
$
|
28,172
|
|
|
$
|
28,727
|
|
|
$
|
29,375
|
|
|
Software
|
|
|
16,686
|
|
|
|
15,584
|
|
|
|
17,649
|
|
|
|
18,331
|
|
|
|
16,776
|
|
|
|
17,216
|
|
|
|
18,612
|
|
|
|
16,806
|
|
|
Total revenue
|
|
|
42,325
|
|
|
|
41,444
|
|
|
|
44,184
|
|
|
|
45,355
|
|
|
|
44,635
|
|
|
|
45,388
|
|
|
|
47,339
|
|
|
|
46,181
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
7,190
|
|
|
|
7,036
|
|
|
|
7,482
|
|
|
|
7,639
|
|
|
|
7,513
|
|
|
|
8,017
|
|
|
|
8,035
|
|
|
|
7,871
|
|
|
Research and development
|
|
|
4,662
|
|
|
|
4,105
|
|
|
|
3,702
|
|
|
|
3,645
|
|
|
|
3,211
|
|
|
|
2,908
|
|
|
|
2,608
|
|
|
|
2,525
|
|
|
Service, rental and maintenance
|
|
|
7,944
|
|
|
|
8,066
|
|
|
|
7,989
|
|
|
|
8,253
|
|
|
|
8,188
|
|
|
|
8,305
|
|
|
|
8,416
|
|
|
|
8,590
|
|
|
Selling and marketing
|
|
|
5,329
|
|
|
|
5,922
|
|
|
|
5,855
|
|
|
|
5,955
|
|
|
|
6,429
|
|
|
|
6,529
|
|
|
|
7,036
|
|
|
|
6,572
|
|
|
General and administrative
|
|
|
11,939
|
|
|
|
11,710
|
|
|
|
9,839
|
|
|
|
10,593
|
|
|
|
10,439
|
|
|
|
10,510
|
|
|
|
10,276
|
|
|
|
10,410
|
|
|
Severance
|
|
|
-
|
|
|
|
-
|
|
|
|
1,438
|
|
|
|
12
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
1,056
|
|
|
|
141
|
|
|
Depreciation, amortization and accretion
|
|
|
2,851
|
|
|
|
3,223
|
|
|
|
3,176
|
|
|
|
3,229
|
|
|
|
3,235
|
|
|
|
3,323
|
|
|
|
3,362
|
|
|
|
3,413
|
|
|
Total operating expenses
|
|
|
39,915
|
|
|
|
40,062
|
|
|
|
39,481
|
|
|
|
39,326
|
|
|
|
39,015
|
|
|
|
39,588
|
|
|
|
40,789
|
|
|
|
39,522
|
|
|
% of total revenue
|
|
|
94.3
|
%
|
|
|
96.7
|
%
|
|
|
89.4
|
%
|
|
|
86.7
|
%
|
|
|
87.4
|
%
|
|
|
87.2
|
%
|
|
|
86.2
|
%
|
|
|
85.6
|
%
|
|
Operating income
|
|
|
2,410
|
|
|
|
1,382
|
|
|
|
4,703
|
|
|
|
6,029
|
|
|
|
5,620
|
|
|
|
5,800
|
|
|
|
6,550
|
|
|
|
6,659
|
|
|
% of total revenue
|
|
|
5.7
|
%
|
|
|
3.3
|
%
|
|
|
10.6
|
%
|
|
|
13.3
|
%
|
|
|
12.6
|
%
|
|
|
12.8
|
%
|
|
|
13.8
|
%
|
|
|
14.4
|
%
|
|
Interest income, net
|
|
|
154
|
|
|
|
122
|
|
|
|
99
|
|
|
|
67
|
|
|
|
61
|
|
|
|
49
|
|
|
|
13
|
|
|
|
1
|
|
|
Other income (expense), net
|
|
|
89
|
|
|
|
(30
|
)
|
|
|
100
|
|
|
|
85
|
|
|
|
104
|
|
|
|
254
|
|
|
|
71
|
|
|
|
784
|
|
|
Income before income tax expense
|
|
|
2,653
|
|
|
|
1,474
|
|
|
|
4,902
|
|
|
|
6,181
|
|
|
|
5,785
|
|
|
|
6,103
|
|
|
|
6,634
|
|
|
|
7,444
|
|
|
Income tax benefit (expense)
|
|
|
(1,155
|
)
|
|
|
(620
|
)
|
|
|
(1,876
|
)
|
|
|
(2,123
|
)
|
|
|
(2,334
|
)
|
|
|
(2,659
|
)
|
|
|
62,098
|
|
|
|
(3,222
|
)
|
|
Net income
|
|
$
|
1,498
|
|
|
$
|
854
|
|
|
$
|
3,026
|
|
|
$
|
4,058
|
|
|
$
|
3,451
|
|
|
$
|
3,444
|
|
|
$
|
68,732
|
|
|
$
|
4,222
|
|
|
Basic and diluted net income per common share
|
|
$
|
0.07
|
|
|
$
|
0.04
|
|
|
$
|
0.15
|
|
|
$
|
0.20
|
|
|
$
|
0.17
|
|
|
$
|
0.17
|
|
|
$
|
3.28
|
|
|
$
|
0.20
|
|
|
Basic weighted average common shares outstanding
|
|
|
20,353,801
|
|
|
|
20,530,739
|
|
|
|
20,529,958
|
|
|
|
20,541,275
|
|
|
|
20,568,058
|
|
|
|
20,706,082
|
|
|
|
20,949,484
|
|
|
|
21,324,068
|
|
|
Diluted weighted average common shares outstanding
|
|
|
20,366,102
|
|
|
|
20,585,542
|
|
|
|
20,529,958
|
|
|
|
20,541,275
|
|
|
|
20,568,058
|
|
|
|
20,706,082
|
|
|
|
20,949,484
|
|
|
|
21,324,068
|
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
1,086
|
|
|
|
1,091
|
|
|
|
1,111
|
|
|
|
1,124
|
|
|
|
1,144
|
|
|
|
1,153
|
|
|
|
1,173
|
|
|
|
1,192
|
|
|
Average revenue per unit (ARPU)
|
|
$
|
7.52
|
|
|
$
|
7.56
|
|
|
$
|
7.59
|
|
|
$
|
7.63
|
|
|
$
|
7.71
|
|
|
$
|
7.77
|
|
|
$
|
7.79
|
|
|
$
|
7.82
|
|
|
Bookings
|
|
$
|
20,405
|
|
|
$
|
19,788
|
|
|
$
|
20,025
|
|
|
$
|
18,659
|
|
|
$
|
20,063
|
|
|
$
|
15,106
|
|
|
$
|
18,511
|
|
|
$
|
16,746
|
|
|
Backlog
|
|
$
|
43,455
|
|
|
$
|
40,555
|
|
|
$
|
38,295
|
|
|
$
|
38,812
|
|
|
$
|
39,475
|
|
|
$
|
36,766
|
|
|
$
|
38,650
|
|
|
$
|
41,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
6/30/2017
|
|
12/31/2016
|
|
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
107,151
|
|
$
|
125,816
|
|
Accounts receivable, net
|
|
|
24,452
|
|
|
23,666
|
|
Prepaid expenses and other
|
|
|
7,669
|
|
|
4,384
|
|
Inventory
|
|
|
1,642
|
|
|
1,996
|
|
Total current assets
|
|
|
140,914
|
|
|
155,862
|
|
Non-current assets:
|
|
|
|
|
|
Property and equipment, net
|
|
|
13,889
|
|
|
12,818
|
|
Goodwill
|
|
|
133,031
|
|
|
133,031
|
|
Intangible assets, net
|
|
|
9,166
|
|
|
10,803
|
|
Deferred income tax assets
|
|
|
72,018
|
|
|
73,068
|
|
Other non-current assets
|
|
|
2,204
|
|
|
2,505
|
|
Total non-current assets
|
|
|
230,308
|
|
|
232,225
|
|
Total assets
|
|
$
|
371,222
|
|
$
|
388,087
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,554
|
|
$
|
1,909
|
|
Accrued compensation and benefits
|
|
|
11,310
|
|
|
13,268
|
|
Accrued dividends payable
|
|
|
342
|
|
|
5,140
|
|
Accrued taxes
|
|
|
2,658
|
|
|
4,132
|
|
Deferred revenue
|
|
|
31,807
|
|
|
29,145
|
|
Other current liabilities
|
|
|
2,820
|
|
|
2,733
|
|
Total current liabilities
|
|
|
50,491
|
|
|
56,327
|
|
Non-current liabilities:
|
|
|
|
|
|
Deferred revenue
|
|
|
651
|
|
|
752
|
|
Other long-term liabilities
|
|
|
8,570
|
|
|
8,921
|
|
Total non-current liabilities
|
|
|
9,221
|
|
|
9,673
|
|
Total liabilities
|
|
|
59,712
|
|
|
66,000
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Preferred stock
|
|
|
-
|
|
|
-
|
|
Common stock
|
|
|
2
|
|
|
2
|
|
Additional paid-in capital
|
|
|
96,943
|
|
|
104,810
|
|
Retained earnings
|
|
|
214,565
|
|
|
217,275
|
|
Total stockholders' equity
|
|
|
311,510
|
|
|
322,087
|
|
Total liabilities and stockholders' equity
|
|
$
|
371,222
|
|
$
|
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 six months ended
|
|
|
|
6/30/2017
|
|
6/30/2016
|
|
Cash flows provided by operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
2,352
|
|
|
$
|
6,895
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
Depreciation, amortization and accretion
|
|
|
6,074
|
|
|
|
6,558
|
|
|
Deferred income tax expense
|
|
|
1,069
|
|
|
|
4,346
|
|
|
Stock based compensation
|
|
|
1,953
|
|
|
|
1,368
|
|
|
Provision for doubtful accounts, service credits and other
|
|
|
458
|
|
|
|
321
|
|
|
Adjustment of non-cash transaction taxes
|
|
|
(700
|
)
|
|
|
(169
|
)
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(1,242
|
)
|
|
|
(1,421
|
)
|
|
Prepaid expenses, inventory, intangibles and other assets
|
|
|
(2,684
|
)
|
|
|
1,197
|
|
|
Accounts payable, accrued liabilities and other
|
|
|
(3,175
|
)
|
|
|
(342
|
)
|
|
Deferred revenue
|
|
|
2,561
|
|
|
|
1,126
|
|
|
Net cash provided by operating activities
|
|
|
6,666
|
|
|
|
19,879
|
|
|
Cash flows used in investing activities:
|
|
|
|
|
|
Purchase of property and equipment, net of proceeds from disposals
of property and equipment
|
|
|
(5,198
|
)
|
|
|
(2,981
|
)
|
|
Net cash used in investing activities
|
|
|
(5,198
|
)
|
|
|
(2,981
|
)
|
|
Cash flows used in financing activities:
|
|
|
|
|
|
Cash distributions to stockholders
|
|
|
(10,239
|
)
|
|
|
(5,150
|
)
|
|
Purchase of common stock (including commissions), net of proceeds
from issuance of common stock
|
|
|
(9,894
|
)
|
|
|
(5,985
|
)
|
|
Net cash used in financing activities
|
|
|
(20,133
|
)
|
|
|
(11,135
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
(18,665
|
)
|
|
|
5,763
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
125,816
|
|
|
|
111,332
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
107,151
|
|
|
$
|
117,095
|
|
|
Supplemental disclosure:
|
|
|
|
|
|
Income taxes paid
|
|
$
|
1,964
|
|
|
$
|
598
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paging
|
|
$
|
24,572
|
|
$
|
24,972
|
|
$
|
25,441
|
|
$
|
25,944
|
|
$
|
26,564
|
|
$
|
27,101
|
|
$
|
27,637
|
|
$
|
28,196
|
|
Non-paging
|
|
|
1,067
|
|
|
888
|
|
|
1,094
|
|
|
1,080
|
|
|
1,295
|
|
|
1,071
|
|
|
1,090
|
|
|
1,179
|
|
Total wireless revenue
|
|
|
25,639
|
|
|
25,860
|
|
|
26,535
|
|
|
27,024
|
|
|
27,859
|
|
|
28,172
|
|
|
28,727
|
|
|
29,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
623
|
|
|
543
|
|
|
551
|
|
|
560
|
|
|
503
|
|
|
498
|
|
|
471
|
|
|
392
|
|
License
|
|
|
1,641
|
|
|
1,171
|
|
|
1,594
|
|
|
1,842
|
|
|
1,691
|
|
|
1,593
|
|
|
2,733
|
|
|
1,457
|
|
Services
|
|
|
3,650
|
|
|
3,354
|
|
|
4,500
|
|
|
5,578
|
|
|
4,202
|
|
|
4,315
|
|
|
4,610
|
|
|
4,600
|
|
Equipment
|
|
|
1,127
|
|
|
973
|
|
|
1,402
|
|
|
1,091
|
|
|
1,250
|
|
|
1,729
|
|
|
1,764
|
|
|
1,434
|
|
Operations revenue
|
|
|
7,041
|
|
|
6,041
|
|
|
8,047
|
|
|
9,071
|
|
|
7,646
|
|
|
8,135
|
|
|
9,578
|
|
|
7,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance revenue
|
|
|
9,645
|
|
|
9,543
|
|
|
9,602
|
|
|
9,260
|
|
|
9,130
|
|
|
9,081
|
|
|
9,034
|
|
|
8,923
|
|
Total software revenue
|
|
|
16,686
|
|
|
15,584
|
|
|
17,649
|
|
|
18,331
|
|
|
16,776
|
|
|
17,216
|
|
|
18,612
|
|
|
16,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
42,325
|
|
$
|
41,444
|
|
$
|
44,184
|
|
$
|
45,355
|
|
$
|
44,635
|
|
$
|
45,388
|
|
$
|
47,339
|
|
$
|
46,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
$
|
4,607
|
|
|
$
|
4,489
|
|
|
$
|
4,612
|
|
|
$
|
4,468
|
|
|
$
|
4,406
|
|
|
$
|
4,634
|
|
|
$
|
4,414
|
|
|
$
|
4,277
|
|
|
Cost of sales
|
|
|
1,815
|
|
|
|
1,910
|
|
|
|
2,309
|
|
|
|
2,480
|
|
|
|
2,227
|
|
|
|
2,673
|
|
|
|
2,902
|
|
|
|
2,549
|
|
|
Stock based compensation
|
|
|
60
|
|
|
|
58
|
|
|
|
(108
|
)
|
|
|
57
|
|
|
|
58
|
|
|
|
49
|
|
|
|
33
|
|
|
|
33
|
|
|
Other
|
|
|
708
|
|
|
|
579
|
|
|
|
669
|
|
|
|
634
|
|
|
|
822
|
|
|
|
661
|
|
|
|
686
|
|
|
|
1,012
|
|
|
Total cost of revenue
|
|
|
7,190
|
|
|
|
7,036
|
|
|
|
7,482
|
|
|
|
7,639
|
|
|
|
7,513
|
|
|
|
8,017
|
|
|
|
8,035
|
|
|
|
7,871
|
|
|
Research and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
3,809
|
|
|
|
3,396
|
|
|
|
3,198
|
|
|
|
2,940
|
|
|
|
2,478
|
|
|
|
2,325
|
|
|
|
2,025
|
|
|
|
1,889
|
|
|
Outside services
|
|
|
659
|
|
|
|
516
|
|
|
|
511
|
|
|
|
569
|
|
|
|
580
|
|
|
|
428
|
|
|
|
480
|
|
|
|
516
|
|
|
Stock based compensation
|
|
|
65
|
|
|
|
55
|
|
|
|
(82
|
)
|
|
|
46
|
|
|
|
48
|
|
|
|
40
|
|
|
|
21
|
|
|
|
21
|
|
|
Other
|
|
|
129
|
|
|
|
138
|
|
|
|
75
|
|
|
|
90
|
|
|
|
105
|
|
|
|
115
|
|
|
|
82
|
|
|
|
99
|
|
|
Total research and development
|
|
|
4,662
|
|
|
|
4,105
|
|
|
|
3,702
|
|
|
|
3,645
|
|
|
|
3,211
|
|
|
|
2,908
|
|
|
|
2,608
|
|
|
|
2,525
|
|
|
Service, rental and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
2,613
|
|
|
|
2,670
|
|
|
|
2,689
|
|
|
|
2,641
|
|
|
|
2,647
|
|
|
|
2,747
|
|
|
|
2,790
|
|
|
|
2,723
|
|
|
Site rent
|
|
|
3,604
|
|
|
|
3,620
|
|
|
|
3,618
|
|
|
|
3,626
|
|
|
|
3,668
|
|
|
|
3,660
|
|
|
|
3,664
|
|
|
|
3,763
|
|
|
Telecommunications
|
|
|
989
|
|
|
|
1,069
|
|
|
|
1,088
|
|
|
|
1,152
|
|
|
|
1,117
|
|
|
|
1,213
|
|
|
|
1,269
|
|
|
|
1,377
|
|
|
Stock based compensation
|
|
|
20
|
|
|
|
20
|
|
|
|
(29
|
)
|
|
|
15
|
|
|
|
15
|
|
|
|
13
|
|
|
|
7
|
|
|
|
7
|
|
|
Other
|
|
|
718
|
|
|
|
687
|
|
|
|
623
|
|
|
|
819
|
|
|
|
741
|
|
|
|
672
|
|
|
|
686
|
|
|
|
720
|
|
|
Total service, rental and maintenance
|
|
|
7,944
|
|
|
|
8,066
|
|
|
|
7,989
|
|
|
|
8,253
|
|
|
|
8,188
|
|
|
|
8,305
|
|
|
|
8,416
|
|
|
|
8,590
|
|
|
Selling and marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
3,074
|
|
|
|
3,103
|
|
|
|
3,575
|
|
|
|
3,502
|
|
|
|
3,510
|
|
|
|
3,666
|
|
|
|
3,780
|
|
|
|
3,664
|
|
|
Commissions
|
|
|
1,121
|
|
|
|
1,202
|
|
|
|
1,248
|
|
|
|
1,317
|
|
|
|
1,559
|
|
|
|
1,525
|
|
|
|
1,754
|
|
|
|
1,858
|
|
|
Stock based compensation
|
|
|
99
|
|
|
|
101
|
|
|
|
(131
|
)
|
|
|
75
|
|
|
|
75
|
|
|
|
48
|
|
|
|
(7
|
)
|
|
|
16
|
|
|
Other
|
|
|
1,035
|
|
|
|
1,516
|
|
|
|
1,163
|
|
|
|
1,061
|
|
|
|
1,285
|
|
|
|
1,290
|
|
|
|
1,509
|
|
|
|
1,034
|
|
|
Total selling and marketing
|
|
|
5,329
|
|
|
|
5,922
|
|
|
|
5,855
|
|
|
|
5,955
|
|
|
|
6,429
|
|
|
|
6,529
|
|
|
|
7,036
|
|
|
|
6,572
|
|
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
4,486
|
|
|
|
4,442
|
|
|
|
4,542
|
|
|
|
4,142
|
|
|
|
4,306
|
|
|
|
4,392
|
|
|
|
4,029
|
|
|
|
4,320
|
|
|
Stock based compensation
|
|
|
754
|
|
|
|
721
|
|
|
|
(863
|
)
|
|
|
507
|
|
|
|
534
|
|
|
|
488
|
|
|
|
316
|
|
|
|
316
|
|
|
Facility rent
|
|
|
869
|
|
|
|
819
|
|
|
|
817
|
|
|
|
848
|
|
|
|
810
|
|
|
|
839
|
|
|
|
856
|
|
|
|
868
|
|
|
Outside services
|
|
|
2,224
|
|
|
|
2,287
|
|
|
|
2,277
|
|
|
|
1,946
|
|
|
|
1,921
|
|
|
|
1,726
|
|
|
|
1,783
|
|
|
|
1,864
|
|
|
Taxes, licenses and permits
|
|
|
1,034
|
|
|
|
989
|
|
|
|
976
|
|
|
|
1,164
|
|
|
|
1,060
|
|
|
|
1,055
|
|
|
|
1,132
|
|
|
|
1,068
|
|
|
Other
|
|
|
2,572
|
|
|
|
2,452
|
|
|
|
2,090
|
|
|
|
1,986
|
|
|
|
1,808
|
|
|
|
2,010
|
|
|
|
2,160
|
|
|
|
1,974
|
|
|
Total general and administrative
|
|
|
11,939
|
|
|
|
11,710
|
|
|
|
9,839
|
|
|
|
10,593
|
|
|
|
10,439
|
|
|
|
10,510
|
|
|
|
10,276
|
|
|
|
10,410
|
|
|
Severance
|
|
|
-
|
|
|
|
-
|
|
|
|
1,438
|
|
|
|
12
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
1,056
|
|
|
|
141
|
|
|
Depreciation, amortization and accretion
|
|
|
2,851
|
|
|
|
3,223
|
|
|
|
3,176
|
|
|
|
3,229
|
|
|
|
3,235
|
|
|
|
3,323
|
|
|
|
3,362
|
|
|
|
3,413
|
|
|
Operating expenses
|
|
$
|
39,915
|
|
|
$
|
40,062
|
|
|
$
|
39,481
|
|
|
$
|
39,326
|
|
|
$
|
39,015
|
|
|
$
|
39,588
|
|
|
$
|
40,789
|
|
|
$
|
39,522
|
|
|
Capital expenditures
|
|
|
2,353
|
|
|
|
2,851
|
|
|
|
1,878
|
|
|
|
1,396
|
|
|
|
1,537
|
|
|
|
1,445
|
|
|
|
2,024
|
|
|
|
1,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
Paging units in service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning units in service (000's)
|
|
|
1,091
|
|
|
|
1,111
|
|
|
|
1,124
|
|
|
|
1,144
|
|
|
|
1,153
|
|
|
|
1,173
|
|
|
|
1,192
|
|
|
|
1,211
|
|
|
Gross placements
|
|
|
42
|
|
|
|
28
|
|
|
|
36
|
|
|
|
34
|
|
|
|
39
|
|
|
|
28
|
|
|
|
31
|
|
|
|
36
|
|
|
Gross disconnects
|
|
|
(47
|
)
|
|
|
(48
|
)
|
|
|
(49
|
)
|
|
|
(54
|
)
|
|
|
(48
|
)
|
|
|
(48
|
)
|
|
|
(50
|
)
|
|
|
(55
|
)
|
|
Net change
|
|
|
(5
|
)
|
|
|
(20
|
)
|
|
|
(13
|
)
|
|
|
(20
|
)
|
|
|
(9
|
)
|
|
|
(20
|
)
|
|
|
(19
|
)
|
|
|
(19
|
)
|
|
Ending units in service
|
|
|
1,086
|
|
|
|
1,091
|
|
|
|
1,111
|
|
|
|
1,124
|
|
|
|
1,144
|
|
|
|
1,153
|
|
|
|
1,173
|
|
|
|
1,192
|
|
|
End of period units in service % of total (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
80.4
|
%
|
|
|
79.7
|
%
|
|
|
79.3
|
%
|
|
|
78.6
|
%
|
|
|
78.2
|
%
|
|
|
77.5
|
%
|
|
|
77.0
|
%
|
|
|
76.3
|
%
|
|
Government
|
|
|
6.3
|
%
|
|
|
6.4
|
%
|
|
|
6.5
|
%
|
|
|
6.7
|
%
|
|
|
6.8
|
%
|
|
|
6.9
|
%
|
|
|
7.2
|
%
|
|
|
7.2
|
%
|
|
Large enterprise
|
|
|
6.1
|
%
|
|
|
6.1
|
%
|
|
|
6.2
|
%
|
|
|
6.5
|
%
|
|
|
6.6
|
%
|
|
|
6.9
|
%
|
|
|
6.9
|
%
|
|
|
7.1
|
%
|
|
Other(b)
|
|
|
7.3
|
%
|
|
|
7.7
|
%
|
|
|
8.0
|
%
|
|
|
8.2
|
%
|
|
|
8.3
|
%
|
|
|
8.7
|
%
|
|
|
9.0
|
%
|
|
|
9.3
|
%
|
|
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
|
|
|
98
|
|
|
|
102
|
|
|
|
106
|
|
|
|
110
|
|
|
|
114
|
|
|
|
118
|
|
|
|
123
|
|
|
|
128
|
|
|
101 to 1,000 units
|
|
|
204
|
|
|
|
214
|
|
|
|
217
|
|
|
|
222
|
|
|
|
228
|
|
|
|
238
|
|
|
|
243
|
|
|
|
250
|
|
|
>1,000 units
|
|
|
784
|
|
|
|
775
|
|
|
|
788
|
|
|
|
792
|
|
|
|
802
|
|
|
|
797
|
|
|
|
807
|
|
|
|
814
|
|
|
Total
|
|
|
1,086
|
|
|
|
1,091
|
|
|
|
1,111
|
|
|
|
1,124
|
|
|
|
1,144
|
|
|
|
1,153
|
|
|
|
1,173
|
|
|
|
1,192
|
|
|
Account size net loss rate(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
|
(3.7
|
)%
|
|
|
(3.4
|
)%
|
|
|
(3.9
|
)%
|
|
|
(3.5
|
)%
|
|
|
(4.0
|
)%
|
|
|
(4.3
|
)%
|
|
|
(3.9
|
)%
|
|
|
(4.4
|
)%
|
|
101 to 1,000 units
|
|
|
(4.5
|
)%
|
|
|
(1.3
|
)%
|
|
|
(2.3
|
)%
|
|
|
(2.6
|
)%
|
|
|
(4.0
|
)%
|
|
|
(2.0
|
)%
|
|
|
(2.9
|
)%
|
|
|
(2.4
|
)%
|
|
>1,000 units
|
|
|
1.1
|
%
|
|
|
(1.7
|
)%
|
|
|
(0.5
|
)%
|
|
|
(1.2
|
)%
|
|
|
0.6
|
%
|
|
|
(1.2
|
)%
|
|
|
(0.9
|
)%
|
|
|
(0.8
|
)%
|
|
Total
|
|
|
(0.4
|
)%
|
|
|
(1.8
|
)%
|
|
|
(1.2
|
)%
|
|
|
(1.7
|
)%
|
|
|
(0.8
|
)%
|
|
|
(1.7
|
)%
|
|
|
(1.6
|
)%
|
|
|
(1.5
|
)%
|
|
Account size ARPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
$
|
12.16
|
|
|
$
|
12.22
|
|
|
$
|
12.25
|
|
|
$
|
12.34
|
|
|
$
|
12.48
|
|
|
$
|
12.57
|
|
|
$
|
12.52
|
|
|
$
|
12.49
|
|
|
101 to 1,000 units
|
|
|
8.61
|
|
|
|
8.66
|
|
|
|
8.63
|
|
|
|
8.64
|
|
|
|
8.65
|
|
|
|
8.70
|
|
|
|
8.65
|
|
|
|
8.69
|
|
|
>1,000 units
|
|
|
6.64
|
|
|
|
6.64
|
|
|
|
6.67
|
|
|
|
6.68
|
|
|
|
6.75
|
|
|
|
6.77
|
|
|
|
6.79
|
|
|
|
6.80
|
|
|
Total
|
|
$
|
7.52
|
|
|
$
|
7.56
|
|
|
$
|
7.59
|
|
|
$
|
7.63
|
|
|
$
|
7.71
|
|
|
$
|
7.77
|
|
|
$
|
7.79
|
|
|
$
|
7.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
6/30/2017
|
|
3/31/2017
|
|
12/31/2016
|
|
9/30/2016
|
|
6/30/2016
|
|
3/31/2016
|
|
12/31/2015
|
|
9/30/2015
|
|
Reconciliation of net income to EBITDA (b) (c):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,498
|
|
|
$
|
854
|
|
|
$
|
3,026
|
|
|
$
|
4,058
|
|
|
$
|
3,451
|
|
|
$
|
3,444
|
|
|
$
|
68,732
|
|
|
$
|
4,222
|
|
|
Plus (less): Income tax expense (benefit)
|
|
|
1,155
|
|
|
|
620
|
|
|
|
1,876
|
|
|
|
2,123
|
|
|
|
2,334
|
|
|
|
2,659
|
|
|
|
(62,098
|
)
|
|
|
3,222
|
|
|
Plus (less): Other expense (income)
|
|
|
(89
|
)
|
|
|
30
|
|
|
|
(100
|
)
|
|
|
(85
|
)
|
|
|
(104
|
)
|
|
|
(254
|
)
|
|
|
(71
|
)
|
|
|
(784
|
)
|
|
Less: Interest income
|
|
|
(154
|
)
|
|
|
(122
|
)
|
|
|
(99
|
)
|
|
|
(67
|
)
|
|
|
(61
|
)
|
|
|
(49
|
)
|
|
|
(13
|
)
|
|
|
(1
|
)
|
|
Operating income
|
|
|
2,410
|
|
|
|
1,382
|
|
|
|
4,703
|
|
|
|
6,029
|
|
|
|
5,620
|
|
|
|
5,800
|
|
|
|
6,550
|
|
|
|
6,659
|
|
|
Plus: depreciation, amortization and accretion
|
|
|
2,851
|
|
|
|
3,223
|
|
|
|
3,176
|
|
|
|
3,229
|
|
|
|
3,235
|
|
|
|
3,323
|
|
|
|
3,362
|
|
|
|
3,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined by the Company)
|
|
|
5,261
|
|
|
|
4,605
|
|
|
|
7,879
|
|
|
|
9,258
|
|
|
|
8,855
|
|
|
|
9,123
|
|
|
|
9,912
|
|
|
|
10,072
|
|
|
Less: Purchases of property and equipment
|
|
|
(2,353
|
)
|
|
|
(2,851
|
)
|
|
|
(1,878
|
)
|
|
|
(1,396
|
)
|
|
|
(1,537
|
)
|
|
|
(1,445
|
)
|
|
|
(2,024
|
)
|
|
|
(1,318
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Severance
|
|
|
-
|
|
|
|
-
|
|
|
|
1,438
|
|
|
|
12
|
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
1,056
|
|
|
|
141
|
|
|
Adjusted OCF (as defined by the Company)
|
|
$
|
2,908
|
|
|
$
|
1,754
|
|
|
$
|
7,439
|
|
|
$
|
7,874
|
|
|
$
|
7,318
|
|
|
$
|
7,674
|
|
|
$
|
8,944
|
|
|
$
|
8,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2017
|
|
6/30/2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to EBITDA (b) (c):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,352
|
|
|
$
|
6,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Income tax expense
|
|
|
1,774
|
|
|
|
4,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Other income
|
|
|
(58
|
)
|
|
|
(357
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Interest income
|
|
|
(276
|
)
|
|
|
(109
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
3,792
|
|
|
|
11,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: depreciation, amortization and accretion
|
|
|
6,074
|
|
|
|
6,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined by the Company)
|
|
|
9,866
|
|
|
|
17,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Purchases of property and equipment
|
|
|
(5,204
|
)
|
|
|
(2,982
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Severance
|
|
|
-
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted OCF (as defined by the Company)
|
|
$
|
4,662
|
|
|
$
|
14,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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/20170726005983/en/
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