| [July 25, 2018] |
 |
Spok Reports 2018 Second Quarter Operating Results; First Half Software Revenue up 11 Percent from Prior Year, Company Maintains Full Year Guidance Levels
Spok
Holdings, Inc. (NASDAQ: SPOK), the global
leader in healthcare communications, today announced operating
results for the second quarter and year-to-date period ended June 30,
2018. In addition, the Company's Board of Directors declared a regular
quarterly dividend of $0.125 per share, payable on September 10, 2018 to
stockholders of record on August 17, 2018.
2018 Second-Quarter Results:
Consolidated revenue for the second quarter of 2018 under Generally
Accepted Accounting Principles ("GAAP") was $40.6 million compared to
$42.3 million in the second 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. As
such, adjusted to exclude the adoption of ASC 606, consolidated revenue
for the second quarter of 2018 was $41.8 million compared to the $42.3
million in the second quarter of 2017.
|
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|
|
|
|
|
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|
Three months ended
|
|
(Dollars in thousands)
|
|
|
June 30,
2018
|
|
|
June 30,
2018(1)
|
|
|
June 30,
2017
|
|
|
Change(2)
(%)
|
|
Wireless revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paging revenue
|
|
|
$
|
22,824
|
|
|
$
|
22,824
|
|
|
$
|
24,572
|
|
|
(7.1
|
) %
|
|
Product and other revenue
|
|
|
|
834
|
|
|
|
834
|
|
|
|
1,067
|
|
|
(21.8
|
) %
|
|
Total wireless revenue
|
|
|
$
|
23,658
|
|
|
$
|
23,658
|
|
|
$
|
25,639
|
|
|
(7.7
|
) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations revenue
|
|
|
$
|
7,463
|
|
|
$
|
8,021
|
|
|
$
|
7,041
|
|
|
13.9
|
%
|
|
Maintenance revenue
|
|
|
|
9,507
|
|
|
|
10,115
|
|
|
|
9,645
|
|
|
4.9
|
%
|
|
Total software revenue
|
|
|
|
16,970
|
|
|
|
18,136
|
|
|
|
16,686
|
|
|
8.7
|
%
|
|
Total revenue
|
|
|
$
|
40,628
|
|
|
$
|
41,794
|
|
|
$
|
42,325
|
|
|
(1.3
|
) %
|
|
(1) Adjusted to exclude the adoption of ASC 606.
|
|
(2) As compared against results adjusted to exclude the
adoption of ASC 606.
|
|
|
GAAP net loss for the second quarter of 2018 was $1.0 million, or $0.05
per share, compared to net income of $1.5 million, or $0.07 per share,
in the second quarter of 2017.
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|
|
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Three months ended
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(Dollars in thousands)
|
|
|
June 30,
2018
|
|
|
June 30,
2018(1)
|
|
|
June 30,
2017
|
|
Net (loss) income
|
|
|
$
|
(976
|
)
|
|
|
$
|
36
|
|
|
$
|
1,498
|
|
Diluted net (loss) income per share
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
0.00
|
|
|
$
|
0.07
|
|
EBITDA
|
|
|
$
|
519
|
|
|
|
$
|
1,559
|
|
|
$
|
5,261
|
|
(1) Adjusted to exclude the adoption of ASC 606.
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Other key results and highlights for the second quarter included:
-
Net paging unit losses were approximately 6,000 in the second quarter
of 2018, down from approximately 19,000 in the first quarter of 2018
and consistent with second quarter 2017 levels.
-
The quarterly rate of wireless revenue erosion was 2.5 percent in the
second quarter of 2018 versus 1.3 percent in the first quarter of 2018.
-
Total paging ARPU (average revenue per unit) was $7.41 in the second
quarter of 2018, compared to $7.47 in the first quarter of 2018.
-
Software bookings for the 2018 second quarter were $18.5 million, an
increase of 2.0 percent from the first quarter of 2018. Second quarter
bookings included $9.4 million of operations bookings and $9.1 million
of maintenance renewals.
-
Software backlog totaled $36.3 million at June 30, 2018, compared to
$35.9 million in the first quarter of 2018.
-
The revenue renewal rate for software maintenance in the second
quarter of 2018 continued at greater than 99 percent.
-
Consolidated operating expenses (excluding depreciation, amortization
and accretion) totaled $40.1 million in the second quarter of 2018, up
slightly from $39.7 million in the first quarter of 2018.
-
Capital expenses were $2.3 million in the second quarter of 2018,
compared to $1.2 million in the first quarter of 2018.
-
The number of full-time equivalent employees at June 30, 2018 totaled
607, compared to 604 at June 30, 2017.
-
Capital returned to stockholders in the second quarter of 2018 totaled
$10.0 million, in the form of $2.5 million from dividends and $7.5
million from share repurchases.
-
The Company's cash balance at June 30, 2018 was $94.1 million, down
from $107.2 million at December 31, 2017.
2018 Year-To-Date Results:
Consolidated revenue for the first six months of 2018 was $83.7 million
compared to $83.8 million in the first six months of 2017. As discussed
above, 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. As
such, adjusted to exclude the adoption of ASC 606, consolidated revenue
for the first six months of 2018 was $84.3 million compared to the $83.8
million in the first six months of 2017.
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Six months ended
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(Dollars in thousands)
|
|
|
June 30,
2018
|
|
|
June 30,
2018(1)
|
|
|
June 30,
2017
|
|
|
Change(2)
(%)
|
|
Wireless revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paging revenue
|
|
|
$
|
46,132
|
|
|
$
|
46,132
|
|
|
$
|
49,544
|
|
|
(6.9
|
) %
|
|
Product and other revenue
|
|
|
|
1,795
|
|
|
|
1,795
|
|
|
|
1,955
|
|
|
(8.2
|
) %
|
|
Total wireless revenue
|
|
|
$
|
47,927
|
|
|
$
|
47,927
|
|
|
$
|
51,499
|
|
|
(6.9
|
) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations revenue
|
|
|
$
|
16,934
|
|
|
$
|
16,210
|
|
|
$
|
13,082
|
|
|
23.9
|
%
|
|
Maintenance revenue
|
|
|
|
18,881
|
|
|
|
20,114
|
|
|
|
19,188
|
|
|
4.8
|
%
|
|
Total software revenue
|
|
|
|
35,815
|
|
|
|
36,324
|
|
|
|
32,270
|
|
|
12.6
|
%
|
|
Total revenue
|
|
|
$
|
83,742
|
|
|
$
|
84,251
|
|
|
$
|
83,769
|
|
|
0.6
|
%
|
|
(1) Adjusted to exclude the adoption of ASC 606.
|
|
(2) As compared against results adjusted to exclude the
adoption of ASC 606.
|
|
|
GAAP net loss for the first six months of 2018 was $0.5 million, or
$0.02 per share, compared to net income of $2.4 million, or $0.11 per
share, in the first six months of 2017.
|
|
|
|
|
|
|
|
|
Six months ended
|
|
(Dollars in thousands)
|
|
|
June 30,
2018
|
|
|
June 30,
2018(1)
|
|
|
June 30,
2017
|
|
Net (loss) income
|
|
|
$
|
(465
|
)
|
|
|
$
|
368
|
|
|
$
|
2,352
|
|
Diluted net (loss) income per share
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
0.02
|
|
|
$
|
0.11
|
|
EBITDA
|
|
|
$
|
3,983
|
|
|
|
$
|
4,831
|
|
|
$
|
9,866
|
|
(1) Adjusted to exclude the adoption of ASC 606.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management Commentary:
"Our performance in the second quarter of 2018 was in line with our
seasonal expectations. We believe our year-to-date results provide a
solid base as we enter the typically more robust second half of the
year" said Vincent D. Kelly, president and chief executive officer. "We
saw strong performance in a number of key operating measures and
sequential improvements in subscriber retention, sales bookings, backlog
levels, and operating expense management. These improvements allowed us
to return $10.0 million of capital to our stockholders in the form of
dividends and share repurchases and enhance our product offerings
through our continued investments in our integrated communication
platform, Spok Care Connect®."
Kelly also noted that in addition to the Company's quarterly financial
performance, Spok made progress in several other areas, including
product development, sales strategy and key strategic partnership
agreements. "During the quarter, we announced partnerships with
industry-leading organizations, including Bernoulli® Health, to enhance
our clinical alarm management offering, and our participation in Zebra
Technologies' PartnerConnect channel partner program, to offer Zebra's
enterprise-class mobile devices to hospitals and health systems
throughout North America. Last month, we strengthened our position as an
industry thought leader with the release of the results of our eighth
consecutive survey of mobile strategies in healthcare. Also, during the
quarter we started working with 13 new customers. Finally, we continue
to make significant progress in enhancing our Care Connect platform
offering, adding experienced product and development leadership, staff
and consulting resources."
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 helped Spok to partially offset the
additional expenses related to our investments in our sales and product
platforms."
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 Second-Quarter Call and Replay:
Spok plans to host a conference call for investors to discuss its 2018
second quarter results at 10:00 a.m. ET on Thursday, July 26, 2018.
Dial-in numbers for the call are 334-323-0522 or 877-260-1479. The pass
code for the call is 8594119. A replay of the call will be available
from 1:00 p.m. ET on July 26, 2018 until 1:00 p.m. ET on Thursday,
August 9, 2018. To listen to the replay, please register at http://tinyurl.com/Spok2018Q2earningsreplay.
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.
|
|
|
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
|
|
|
|
|
6/30/2018
|
|
|
6/30/2017
|
|
|
6/30/2018
|
|
|
6/30/2017
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
$
|
23,658
|
|
|
|
$
|
25,639
|
|
|
|
$
|
47,927
|
|
|
|
$
|
51,499
|
|
|
Software
|
|
|
|
16,970
|
|
|
|
|
16,686
|
|
|
|
|
35,815
|
|
|
|
|
32,270
|
|
|
Total revenue
|
|
|
|
40,628
|
|
|
|
|
42,325
|
|
|
|
|
83,742
|
|
|
|
|
83,769
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
7,400
|
|
|
|
|
7,190
|
|
|
|
|
15,133
|
|
|
|
|
14,226
|
|
|
Research and development
|
|
|
|
6,177
|
|
|
|
|
4,662
|
|
|
|
|
11,912
|
|
|
|
|
8,767
|
|
|
Service, rental and maintenance
|
|
|
|
7,698
|
|
|
|
|
7,944
|
|
|
|
|
15,448
|
|
|
|
|
16,010
|
|
|
Selling and marketing
|
|
|
|
6,093
|
|
|
|
|
5,329
|
|
|
|
|
12,562
|
|
|
|
|
11,251
|
|
|
General and administrative
|
|
|
|
12,741
|
|
|
|
|
11,939
|
|
|
|
|
24,704
|
|
|
|
|
23,649
|
|
|
Depreciation, amortization and accretion
|
|
|
|
2,669
|
|
|
|
|
2,851
|
|
|
|
|
5,382
|
|
|
|
|
6,074
|
|
|
Total operating expenses
|
|
|
|
42,778
|
|
|
|
|
39,915
|
|
|
|
|
85,141
|
|
|
|
|
79,977
|
|
|
% of total revenue
|
|
|
|
105.3
|
%
|
|
|
|
94.3
|
%
|
|
|
|
101.7
|
%
|
|
|
|
95.5
|
%
|
|
Operating (loss) income
|
|
|
|
(2,150
|
)
|
|
|
|
2,410
|
|
|
|
|
(1,399
|
)
|
|
|
|
3,792
|
|
|
% of total revenue
|
|
|
|
(5.3
|
)%
|
|
|
|
5.7
|
%
|
|
|
|
(1.7
|
)%
|
|
|
|
4.5
|
%
|
|
Interest income
|
|
|
|
342
|
|
|
|
|
154
|
|
|
|
|
625
|
|
|
|
|
276
|
|
|
Other income
|
|
|
|
102
|
|
|
|
|
89
|
|
|
|
|
54
|
|
|
|
|
58
|
|
|
(Loss) income before income taxes
|
|
|
|
(1,706
|
)
|
|
|
|
2,653
|
|
|
|
|
(720
|
)
|
|
|
|
4,126
|
|
|
Benefit from (provision for) income taxes
|
|
|
|
730
|
|
|
|
|
(1,155
|
)
|
|
|
|
255
|
|
|
|
|
(1,774
|
)
|
|
Net (loss) income
|
|
|
$
|
(976
|
)
|
|
|
$
|
1,498
|
|
|
|
$
|
(465
|
)
|
|
|
$
|
2,352
|
|
|
Basic net (loss) income per common share
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
0.07
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
0.12
|
|
|
Diluted net (loss) income per common share
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
0.07
|
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
0.11
|
|
|
Basic weighted average common shares outstanding
|
|
|
|
19,750,941
|
|
|
|
|
20,353,801
|
|
|
|
|
19,888,606
|
|
|
|
|
20,441,781
|
|
|
Diluted weighted average common shares outstanding
|
|
|
|
19,750,941
|
|
|
|
|
20,366,102
|
|
|
|
|
19,888,606
|
|
|
|
|
20,508,473
|
|
|
Cash dividends declared per common share
|
|
|
$
|
0.125
|
|
|
|
$
|
0.125
|
|
|
|
$
|
0.250
|
|
|
|
$
|
0.250
|
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
|
1,024
|
|
|
|
|
1,086
|
|
|
|
|
1,024
|
|
|
|
|
1,086
|
|
|
Average revenue per unit (ARPU)
|
|
|
$
|
7.41
|
|
|
|
$
|
7.52
|
|
|
|
$
|
7.42
|
|
|
|
$
|
7.58
|
|
|
Bookings
|
|
|
$
|
18,488
|
|
|
|
$
|
20,405
|
|
|
|
$
|
36,612
|
|
|
|
$
|
40,193
|
|
|
Backlog
|
|
|
$
|
36,295
|
|
|
|
$
|
43,455
|
|
|
|
$
|
36,295
|
|
|
|
$
|
43,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
6/30/2018
|
|
|
3/31/2018
|
|
|
12/31/2017
|
|
|
9/30/2017
|
|
|
6/30/2017
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless
|
|
|
$
|
23,658
|
|
|
|
$
|
24,269
|
|
|
|
$
|
24,579
|
|
|
|
$
|
25,110
|
|
|
|
$
|
25,639
|
|
|
|
$
|
25,860
|
|
|
|
$
|
26,535
|
|
|
|
$
|
27,024
|
|
|
Software
|
|
|
|
16,970
|
|
|
|
|
18,845
|
|
|
|
|
19,191
|
|
|
|
|
18,526
|
|
|
|
|
16,686
|
|
|
|
|
15,584
|
|
|
|
|
17,649
|
|
|
|
|
18,331
|
|
|
Total revenue
|
|
|
|
40,628
|
|
|
|
|
43,114
|
|
|
|
|
43,770
|
|
|
|
|
43,636
|
|
|
|
|
42,325
|
|
|
|
|
41,444
|
|
|
|
|
44,184
|
|
|
|
|
45,355
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue
|
|
|
|
7,400
|
|
|
|
|
7,712
|
|
|
|
|
7,122
|
|
|
|
|
7,069
|
|
|
|
|
7,190
|
|
|
|
|
7,036
|
|
|
|
|
7,482
|
|
|
|
|
7,639
|
|
|
Research and development
|
|
|
|
6,177
|
|
|
|
|
5,735
|
|
|
|
|
4,934
|
|
|
|
|
5,001
|
|
|
|
|
4,662
|
|
|
|
|
4,105
|
|
|
|
|
3,702
|
|
|
|
|
3,645
|
|
|
Service, rental and maintenance
|
|
|
|
7,698
|
|
|
|
|
7,750
|
|
|
|
|
7,617
|
|
|
|
|
7,875
|
|
|
|
|
7,944
|
|
|
|
|
8,066
|
|
|
|
|
7,989
|
|
|
|
|
8,253
|
|
|
Selling and marketing
|
|
|
|
6,093
|
|
|
|
|
6,490
|
|
|
|
|
6,039
|
|
|
|
|
5,533
|
|
|
|
|
5,329
|
|
|
|
|
5,922
|
|
|
|
|
5,855
|
|
|
|
|
5,955
|
|
|
General and administrative
|
|
|
|
12,741
|
|
|
|
|
11,964
|
|
|
|
|
11,695
|
|
|
|
|
12,058
|
|
|
|
|
11,939
|
|
|
|
|
11,710
|
|
|
|
|
11,277
|
|
|
|
|
10,605
|
|
|
Depreciation, amortization and accretion
|
|
|
|
2,669
|
|
|
|
|
2,713
|
|
|
|
|
2,774
|
|
|
|
|
2,775
|
|
|
|
|
2,851
|
|
|
|
|
3,223
|
|
|
|
|
3,176
|
|
|
|
|
3,229
|
|
|
Total operating expenses
|
|
|
|
42,778
|
|
|
|
|
42,364
|
|
|
|
|
40,181
|
|
|
|
|
40,311
|
|
|
|
|
39,915
|
|
|
|
|
40,062
|
|
|
|
|
39,481
|
|
|
|
|
39,326
|
|
|
% of total revenue
|
|
|
|
105.3
|
%
|
|
|
|
98.3
|
%
|
|
|
|
91.8
|
%
|
|
|
|
92.4
|
%
|
|
|
|
94.3
|
%
|
|
|
|
96.7
|
%
|
|
|
|
89.4
|
%
|
|
|
|
86.7
|
%
|
|
Operating (loss) income
|
|
|
|
(2,150
|
)
|
|
|
|
750
|
|
|
|
|
3,589
|
|
|
|
|
3,325
|
|
|
|
|
2,410
|
|
|
|
|
1,382
|
|
|
|
|
4,703
|
|
|
|
|
6,029
|
|
|
% of total revenue
|
|
|
|
(5.3
|
)%
|
|
|
|
1.7
|
%
|
|
|
|
8.2
|
%
|
|
|
|
7.6
|
%
|
|
|
|
5.7
|
%
|
|
|
|
3.3
|
%
|
|
|
|
10.6
|
%
|
|
|
|
13.3
|
%
|
|
Interest income
|
|
|
|
342
|
|
|
|
|
283
|
|
|
|
|
229
|
|
|
|
|
214
|
|
|
|
|
154
|
|
|
|
|
122
|
|
|
|
|
99
|
|
|
|
|
67
|
|
|
Other income (expense)
|
|
|
|
102
|
|
|
|
|
(47
|
)
|
|
|
|
(282
|
)
|
|
|
|
359
|
|
|
|
|
89
|
|
|
|
|
(30
|
)
|
|
|
|
100
|
|
|
|
|
85
|
|
|
(Loss) income before income taxes
|
|
|
|
(1,706
|
)
|
|
|
|
986
|
|
|
|
|
3,536
|
|
|
|
|
3,898
|
|
|
|
|
2,653
|
|
|
|
|
1,474
|
|
|
|
|
4,902
|
|
|
|
|
6,181
|
|
|
Benefit from (provision for) income taxes
|
|
|
|
730
|
|
|
|
|
(475
|
)
|
|
|
|
(24,920
|
)
|
|
|
|
(171
|
)
|
|
|
|
(1,155
|
)
|
|
|
|
(620
|
)
|
|
|
|
(1,876
|
)
|
|
|
|
(2,123
|
)
|
|
Net (loss) income
|
|
|
$
|
(976
|
)
|
|
|
$
|
511
|
|
|
|
$
|
(21,384
|
)
|
|
|
$
|
3,727
|
|
|
|
$
|
1,498
|
|
|
|
$
|
854
|
|
|
|
$
|
3,026
|
|
|
|
$
|
4,058
|
|
|
Basic and diluted net (loss) income per common share
|
|
|
$
|
(0.05
|
)
|
|
|
$
|
0.03
|
|
|
|
$
|
(1.07
|
)
|
|
|
$
|
0.19
|
|
|
|
$
|
0.07
|
|
|
|
$
|
0.04
|
|
|
|
$
|
0.15
|
|
|
|
$
|
0.20
|
|
|
Basic weighted average common shares outstanding
|
|
|
|
19,750,941
|
|
|
|
|
20,027,800
|
|
|
|
|
19,987,763
|
|
|
|
|
19,977,263
|
|
|
|
|
20,353,801
|
|
|
|
|
20,530,739
|
|
|
|
|
20,529,958
|
|
|
|
|
20,541,275
|
|
|
Diluted weighted average common shares outstanding
|
|
|
|
19,750,941
|
|
|
|
|
20,153,291
|
|
|
|
|
19,987,763
|
|
|
|
|
20,008,321
|
|
|
|
|
20,366,102
|
|
|
|
|
20,585,542
|
|
|
|
|
20,529,958
|
|
|
|
|
20,541,275
|
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units in service
|
|
|
|
1,024
|
|
|
|
|
1,030
|
|
|
|
|
1,049
|
|
|
|
|
1,063
|
|
|
|
|
1,086
|
|
|
|
|
1,091
|
|
|
|
|
1,111
|
|
|
|
|
1,124
|
|
|
Average revenue per unit (ARPU)
|
|
|
$
|
7.41
|
|
|
|
$
|
7.47
|
|
|
|
$
|
7.46
|
|
|
|
$
|
7.48
|
|
|
|
$
|
7.52
|
|
|
|
$
|
7.56
|
|
|
|
$
|
7.59
|
|
|
|
$
|
7.63
|
|
|
Bookings
|
|
|
$
|
18,488
|
|
|
|
$
|
18,124
|
|
|
|
$
|
19,190
|
|
|
|
$
|
18,327
|
|
|
|
$
|
20,405
|
|
|
|
$
|
19,788
|
|
|
|
$
|
20,025
|
|
|
|
$
|
18,659
|
|
|
Backlog
|
|
|
$
|
36,295
|
|
|
|
$
|
35,930
|
|
|
|
$
|
42,305
|
|
|
|
$
|
46,900
|
|
|
|
$
|
43,455
|
|
|
|
$
|
40,555
|
|
|
|
$
|
38,295
|
|
|
|
$
|
38,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Slight variations in totals are due to rounding.
|
|
|
|
|
|
SPOK HOLDINGS, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2018
|
|
|
12/31/2017
|
|
|
|
|
(Unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
94,068
|
|
|
|
$
|
107,157
|
|
|
Accounts receivable, net
|
|
|
|
35,574
|
|
|
|
|
32,279
|
|
|
Prepaid expenses and other
|
|
|
|
7,050
|
|
|
|
|
5,752
|
|
|
Inventory
|
|
|
|
1,505
|
|
|
|
|
1,672
|
|
|
Total current assets
|
|
|
|
138,197
|
|
|
|
|
146,860
|
|
|
Non-current assets:
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
13,035
|
|
|
|
|
13,399
|
|
|
Goodwill
|
|
|
|
133,031
|
|
|
|
|
133,031
|
|
|
Intangible assets, net
|
|
|
|
6,667
|
|
|
|
|
7,917
|
|
|
Deferred income tax assets
|
|
|
|
46,344
|
|
|
|
|
47,679
|
|
|
Other non-current assets
|
|
|
|
1,431
|
|
|
|
|
1,675
|
|
|
Total non-current assets
|
|
|
|
200,508
|
|
|
|
|
203,701
|
|
|
Total assets
|
|
|
$
|
338,705
|
|
|
|
$
|
350,561
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
310
|
|
|
|
|
1,305
|
|
|
Accrued compensation and benefits
|
|
|
|
9,261
|
|
|
|
|
11,018
|
|
|
Accrued taxes
|
|
|
|
2,055
|
|
|
|
|
2,547
|
|
|
Deferred revenue
|
|
|
|
32,449
|
|
|
|
|
31,414
|
|
|
Other current liabilities
|
|
|
|
4,010
|
|
|
|
|
4,610
|
|
|
Total current liabilities
|
|
|
|
48,085
|
|
|
|
|
50,894
|
|
|
Non-current liabilities:
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
|
961
|
|
|
|
|
1,063
|
|
|
Other long-term liabilities
|
|
|
|
8,393
|
|
|
|
|
8,075
|
|
|
Total non-current liabilities
|
|
|
|
9,354
|
|
|
|
|
9,138
|
|
|
Total liabilities
|
|
|
|
57,439
|
|
|
|
|
60,032
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Common stock
|
|
|
|
2
|
|
|
|
|
2
|
|
|
Additional paid-in capital
|
|
|
|
92,102
|
|
|
|
|
99,819
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(1,850
|
)
|
|
|
|
(1,088
|
)
|
|
Retained earnings
|
|
|
|
191,012
|
|
|
|
|
191,796
|
|
|
Total stockholders' equity
|
|
|
|
281,266
|
|
|
|
|
290,529
|
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
338,705
|
|
|
|
$
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
|
|
|
|
|
6/30/2018
|
|
|
6/30/2017
|
|
Cash flows provided by operating activities:
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(465
|
)
|
|
|
$
|
2,352
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Depreciation, amortization and accretion
|
|
|
|
5,382
|
|
|
|
|
6,074
|
|
|
Deferred income tax (benefit) expense
|
|
|
|
(472
|
)
|
|
|
|
1,069
|
|
|
Stock based compensation
|
|
|
|
2,501
|
|
|
|
|
1,953
|
|
|
Provisions for doubtful accounts, service credits and other
|
|
|
|
1,016
|
|
|
|
|
458
|
|
|
Adjustments of non-cash transaction taxes
|
|
|
|
(104
|
)
|
|
|
|
(700
|
)
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(2,986
|
)
|
|
|
|
(1,242
|
)
|
|
Prepaid expenses, inventory and other assets
|
|
|
|
(277
|
)
|
|
|
|
(2,684
|
)
|
|
Accounts payable, accrued liabilities and other
|
|
|
|
(3,394
|
)
|
|
|
|
(3,261
|
)
|
|
Deferred revenue
|
|
|
|
5,191
|
|
|
|
|
2,561
|
|
|
Net cash provided by operating activities
|
|
|
|
6,392
|
|
|
|
|
6,580
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(3,464
|
)
|
|
|
|
(5,198
|
)
|
|
Net cash used in investing activities
|
|
|
|
(3,464
|
)
|
|
|
|
(5,198
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Cash distributions to stockholders
|
|
|
|
(5,201
|
)
|
|
|
|
(10,239
|
)
|
|
Purchase of common stock for tax withholding on vested equity awards
|
|
|
|
(894
|
)
|
|
|
|
-
|
|
|
Purchase of common stock (including commissions)
|
|
|
|
(9,467
|
)
|
|
|
|
(10,024
|
)
|
|
Proceeds from issuance of common stock under the Employee Stock
Purchase Plan
|
|
|
|
143
|
|
|
|
|
130
|
|
|
Net cash used in financing activities
|
|
|
|
(15,419
|
)
|
|
|
|
(20,133
|
)
|
|
Effect of exchange rate on cash
|
|
|
|
(598
|
)
|
|
|
|
86
|
|
|
Net decrease in cash and cash equivalents
|
|
|
|
(13,089
|
)
|
|
|
|
(18,665
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
107,157
|
|
|
|
|
125,816
|
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
94,068
|
|
|
|
$
|
107,151
|
|
|
Supplemental disclosure:
|
|
|
|
|
|
|
|
Income taxes paid
|
|
|
$
|
457
|
|
|
|
$
|
1,964
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
6/30/2018
|
|
|
3/31/2018
|
|
|
12/31/2017
|
|
|
9/30/2017
|
|
|
6/30/2017
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paging
|
|
|
$
|
22,824
|
|
|
$
|
23,308
|
|
|
$
|
23,624
|
|
|
$
|
24,128
|
|
|
$
|
24,572
|
|
|
$
|
24,972
|
|
|
$
|
25,441
|
|
|
$
|
25,944
|
|
Non-paging
|
|
|
|
834
|
|
|
|
961
|
|
|
|
955
|
|
|
|
982
|
|
|
|
1,067
|
|
|
|
888
|
|
|
|
1,094
|
|
|
|
1,080
|
|
Total wireless revenue
|
|
|
$
|
23,658
|
|
|
$
|
24,269
|
|
|
$
|
24,579
|
|
|
$
|
25,110
|
|
|
$
|
25,639
|
|
|
$
|
25,860
|
|
|
$
|
26,535
|
|
|
$
|
27,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription
|
|
|
|
441
|
|
|
|
420
|
|
|
|
559
|
|
|
|
577
|
|
|
|
623
|
|
|
|
543
|
|
|
|
551
|
|
|
|
560
|
|
License
|
|
|
|
1,552
|
|
|
|
3,956
|
|
|
|
2,431
|
|
|
|
1,995
|
|
|
|
1,641
|
|
|
|
1,171
|
|
|
|
1,594
|
|
|
|
1,842
|
|
Services
|
|
|
|
4,363
|
|
|
|
4,071
|
|
|
|
5,437
|
|
|
|
5,189
|
|
|
|
3,650
|
|
|
|
3,354
|
|
|
|
4,500
|
|
|
|
5,578
|
|
Equipment
|
|
|
|
1,107
|
|
|
|
1,024
|
|
|
|
945
|
|
|
|
1,102
|
|
|
|
1,127
|
|
|
|
973
|
|
|
|
1,402
|
|
|
|
1,091
|
|
Operations revenue
|
|
|
$
|
7,463
|
|
|
$
|
9,471
|
|
|
$
|
9,372
|
|
|
$
|
8,863
|
|
|
$
|
7,041
|
|
|
$
|
6,041
|
|
|
$
|
8,047
|
|
|
$
|
9,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance revenue
|
|
|
$
|
9,507
|
|
|
$
|
9,374
|
|
|
$
|
9,819
|
|
|
$
|
9,663
|
|
|
$
|
9,645
|
|
|
$
|
9,543
|
|
|
$
|
9,602
|
|
|
$
|
9,260
|
|
Total software revenue
|
|
|
$
|
16,970
|
|
|
$
|
18,845
|
|
|
$
|
19,191
|
|
|
$
|
18,526
|
|
|
$
|
16,686
|
|
|
$
|
15,584
|
|
|
$
|
17,649
|
|
|
$
|
18,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
40,628
|
|
|
$
|
43,114
|
|
|
$
|
43,770
|
|
|
$
|
43,636
|
|
|
$
|
42,325
|
|
|
$
|
41,444
|
|
|
$
|
44,184
|
|
|
$
|
45,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
6/30/2018
|
|
|
3/31/2018
|
|
|
12/31/2017
|
|
|
9/30/2017
|
|
|
6/30/2017
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
$
|
4,853
|
|
|
$
|
4,874
|
|
|
$
|
4,374
|
|
|
|
$
|
4,330
|
|
|
$
|
4,613
|
|
|
$
|
4,490
|
|
|
$
|
4,611
|
|
|
|
$
|
4,469
|
|
Cost of sales
|
|
|
|
1,923
|
|
|
|
2,309
|
|
|
|
1,990
|
|
|
|
|
2,228
|
|
|
|
1,904
|
|
|
|
1,995
|
|
|
|
2,415
|
|
|
|
|
2,587
|
|
Stock based compensation
|
|
|
|
75
|
|
|
|
55
|
|
|
|
58
|
|
|
|
|
4
|
|
|
|
60
|
|
|
|
58
|
|
|
|
(108
|
)
|
|
|
|
57
|
|
Other
|
|
|
|
549
|
|
|
|
474
|
|
|
|
700
|
|
|
|
|
507
|
|
|
|
613
|
|
|
|
493
|
|
|
|
564
|
|
|
|
|
526
|
|
Total cost of revenue
|
|
|
|
7,400
|
|
|
|
7,712
|
|
|
|
7,122
|
|
|
|
|
7,069
|
|
|
|
7,190
|
|
|
|
7,036
|
|
|
|
7,482
|
|
|
|
|
7,639
|
|
Research and development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
4,506
|
|
|
|
4,002
|
|
|
|
3,521
|
|
|
|
|
4,005
|
|
|
|
3,807
|
|
|
|
3,405
|
|
|
|
3,195
|
|
|
|
|
2,939
|
|
Outside services
|
|
|
|
1,481
|
|
|
|
1,513
|
|
|
|
1,361
|
|
|
|
|
849
|
|
|
|
659
|
|
|
|
516
|
|
|
|
511
|
|
|
|
|
569
|
|
Stock based compensation
|
|
|
|
90
|
|
|
|
71
|
|
|
|
(71
|
)
|
|
|
|
43
|
|
|
|
65
|
|
|
|
55
|
|
|
|
(82
|
)
|
|
|
|
46
|
|
Other
|
|
|
|
100
|
|
|
|
149
|
|
|
|
123
|
|
|
|
|
104
|
|
|
|
131
|
|
|
|
129
|
|
|
|
78
|
|
|
|
|
91
|
|
Total research and development
|
|
|
|
6,177
|
|
|
|
5,735
|
|
|
|
4,934
|
|
|
|
|
5,001
|
|
|
|
4,662
|
|
|
|
4,105
|
|
|
|
3,702
|
|
|
|
|
3,645
|
|
Service, rental and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
2,618
|
|
|
|
2,693
|
|
|
|
2,413
|
|
|
|
|
2,582
|
|
|
|
2,607
|
|
|
|
2,665
|
|
|
|
2,687
|
|
|
|
|
2,638
|
|
Site rent
|
|
|
|
3,538
|
|
|
|
3,496
|
|
|
|
3,471
|
|
|
|
|
3,534
|
|
|
|
3,604
|
|
|
|
3,620
|
|
|
|
3,618
|
|
|
|
|
3,626
|
|
Telecommunications
|
|
|
|
935
|
|
|
|
898
|
|
|
|
979
|
|
|
|
|
1,060
|
|
|
|
1,001
|
|
|
|
1,081
|
|
|
|
1,096
|
|
|
|
|
1,162
|
|
Stock based compensation
|
|
|
|
24
|
|
|
|
24
|
|
|
|
20
|
|
|
|
|
20
|
|
|
|
20
|
|
|
|
20
|
|
|
|
(29
|
)
|
|
|
|
15
|
|
Other
|
|
|
|
583
|
|
|
|
639
|
|
|
|
734
|
|
|
|
|
679
|
|
|
|
712
|
|
|
|
680
|
|
|
|
617
|
|
|
|
|
812
|
|
Total service, rental and maintenance
|
|
|
|
7,698
|
|
|
|
7,750
|
|
|
|
7,617
|
|
|
|
|
7,875
|
|
|
|
7,944
|
|
|
|
8,066
|
|
|
|
7,989
|
|
|
|
|
8,253
|
|
Selling and marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
3,311
|
|
|
|
3,294
|
|
|
|
2,573
|
|
|
|
|
3,113
|
|
|
|
3,039
|
|
|
|
3,071
|
|
|
|
3,556
|
|
|
|
|
3,467
|
|
Commissions
|
|
|
|
1,397
|
|
|
|
1,774
|
|
|
|
1,634
|
|
|
|
|
1,234
|
|
|
|
1,121
|
|
|
|
1,202
|
|
|
|
1,248
|
|
|
|
|
1,317
|
|
Stock based compensation
|
|
|
|
135
|
|
|
|
135
|
|
|
|
93
|
|
|
|
|
84
|
|
|
|
99
|
|
|
|
101
|
|
|
|
(131
|
)
|
|
|
|
75
|
|
Advertising and events
|
|
|
|
996
|
|
|
|
1,158
|
|
|
|
1,481
|
|
|
|
|
952
|
|
|
|
840
|
|
|
|
1,281
|
|
|
|
889
|
|
|
|
|
866
|
|
Other
|
|
|
|
254
|
|
|
|
129
|
|
|
|
258
|
|
|
|
|
150
|
|
|
|
230
|
|
|
|
267
|
|
|
|
293
|
|
|
|
|
230
|
|
Total selling and marketing
|
|
|
|
6,093
|
|
|
|
6,490
|
|
|
|
6,039
|
|
|
|
|
5,533
|
|
|
|
5,329
|
|
|
|
5,922
|
|
|
|
5,855
|
|
|
|
|
5,955
|
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payroll and related
|
|
|
|
4,340
|
|
|
|
4,416
|
|
|
|
3,649
|
|
|
|
|
4,569
|
|
|
|
4,420
|
|
|
|
4,439
|
|
|
|
4,426
|
|
|
|
|
4,076
|
|
Stock based compensation
|
|
|
|
943
|
|
|
|
949
|
|
|
|
774
|
|
|
|
|
711
|
|
|
|
755
|
|
|
|
722
|
|
|
|
(863
|
)
|
|
|
|
507
|
|
Bad debt
|
|
|
|
279
|
|
|
|
528
|
|
|
|
143
|
|
|
|
|
184
|
|
|
|
107
|
|
|
|
94
|
|
|
|
137
|
|
|
|
|
97
|
|
Facility rent and related costs
|
|
|
|
1,743
|
|
|
|
1,941
|
|
|
|
1,865
|
|
|
|
|
2,013
|
|
|
|
1,995
|
|
|
|
1,838
|
|
|
|
1,694
|
|
|
|
|
1,673
|
|
Outside services
|
|
|
|
3,023
|
|
|
|
2,122
|
|
|
|
2,924
|
|
|
|
|
2,351
|
|
|
|
2,507
|
|
|
|
2,627
|
|
|
|
2,430
|
|
|
|
|
2,247
|
|
Taxes, licenses and permits
|
|
|
|
1,024
|
|
|
|
1,080
|
|
|
|
1,120
|
|
|
|
|
1,077
|
|
|
|
1,034
|
|
|
|
989
|
|
|
|
976
|
|
|
|
|
1,164
|
|
Other
|
|
|
|
1,389
|
|
|
|
928
|
|
|
|
1,220
|
|
|
|
|
1,153
|
|
|
|
1,121
|
|
|
|
1,001
|
|
|
|
2,477
|
|
|
|
|
841
|
|
Total general and administrative
|
|
|
|
12,741
|
|
|
|
11,964
|
|
|
|
11,695
|
|
|
|
|
12,058
|
|
|
|
11,939
|
|
|
|
11,710
|
|
|
|
11,277
|
|
|
|
|
10,605
|
|
Depreciation, amortization and accretion
|
|
|
|
2,669
|
|
|
|
2,713
|
|
|
|
2,774
|
|
|
|
|
2,775
|
|
|
|
2,851
|
|
|
|
3,223
|
|
|
|
3,176
|
|
|
|
|
3,229
|
|
Operating expenses
|
|
|
$
|
42,778
|
|
|
$
|
42,364
|
|
|
$
|
40,181
|
|
|
|
$
|
40,311
|
|
|
$
|
39,915
|
|
|
$
|
40,062
|
|
|
$
|
39,481
|
|
|
|
$
|
39,326
|
|
Capital expenditures
|
|
|
$
|
2,299
|
|
|
$
|
1,164
|
|
|
$
|
2,179
|
|
|
|
$
|
1,816
|
|
|
$
|
2,353
|
|
|
$
|
2,851
|
|
|
$
|
1,878
|
|
|
|
$
|
1,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
6/30/2018
|
|
|
3/31/2018
|
|
|
12/31/2017
|
|
|
9/30/2017
|
|
|
6/30/2017
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
Paging units in service
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning units in service (000's)
|
|
|
|
1,030
|
|
|
|
|
1,049
|
|
|
|
|
1,063
|
|
|
|
|
1,086
|
|
|
|
|
1,091
|
|
|
|
|
1,111
|
|
|
|
|
1,124
|
|
|
|
|
1,144
|
|
|
Gross placements
|
|
|
|
35
|
|
|
|
|
25
|
|
|
|
|
26
|
|
|
|
|
30
|
|
|
|
|
42
|
|
|
|
|
28
|
|
|
|
|
36
|
|
|
|
|
34
|
|
|
Gross disconnects
|
|
|
|
(41
|
)
|
|
|
|
(44
|
)
|
|
|
|
(40
|
)
|
|
|
|
(53
|
)
|
|
|
|
(47
|
)
|
|
|
|
(48
|
)
|
|
|
|
(49
|
)
|
|
|
|
(54
|
)
|
|
Net change
|
|
|
|
(6
|
)
|
|
|
|
(19
|
)
|
|
|
|
(14
|
)
|
|
|
|
(23
|
)
|
|
|
|
(5
|
)
|
|
|
|
(20
|
)
|
|
|
|
(13
|
)
|
|
|
|
(20
|
)
|
|
Ending units in service
|
|
|
|
1,024
|
|
|
|
|
1,030
|
|
|
|
|
1,049
|
|
|
|
|
1,063
|
|
|
|
|
1,086
|
|
|
|
|
1,091
|
|
|
|
|
1,111
|
|
|
|
|
1,124
|
|
|
End of period units in service % of total (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Healthcare
|
|
|
|
81.5
|
%
|
|
|
|
81.1
|
%
|
|
|
|
80.7
|
%
|
|
|
|
80.4
|
%
|
|
|
|
80.4
|
%
|
|
|
|
79.7
|
%
|
|
|
|
79.3
|
%
|
|
|
|
78.6
|
%
|
|
Government
|
|
|
|
5.7
|
%
|
|
|
|
5.9
|
%
|
|
|
|
6.0
|
%
|
|
|
|
6.1
|
%
|
|
|
|
6.3
|
%
|
|
|
|
6.4
|
%
|
|
|
|
6.5
|
%
|
|
|
|
6.7
|
%
|
|
Large enterprise
|
|
|
|
6.0
|
%
|
|
|
|
6.0
|
%
|
|
|
|
6.0
|
%
|
|
|
|
6.0
|
%
|
|
|
|
6.1
|
%
|
|
|
|
6.1
|
%
|
|
|
|
6.2
|
%
|
|
|
|
6.5
|
%
|
|
Other(b)
|
|
|
|
6.8
|
%
|
|
|
|
7.0
|
%
|
|
|
|
7.2
|
%
|
|
|
|
7.4
|
%
|
|
|
|
7.3
|
%
|
|
|
|
7.7
|
%
|
|
|
|
8.0
|
%
|
|
|
|
8.2
|
%
|
|
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
|
|
|
|
85
|
|
|
|
|
88
|
|
|
|
|
92
|
|
|
|
|
95
|
|
|
|
|
98
|
|
|
|
|
102
|
|
|
|
|
106
|
|
|
|
|
110
|
|
|
101 to 1,000 units
|
|
|
|
197
|
|
|
|
|
198
|
|
|
|
|
198
|
|
|
|
|
201
|
|
|
|
|
204
|
|
|
|
|
214
|
|
|
|
|
217
|
|
|
|
|
222
|
|
|
>1,000 units
|
|
|
|
742
|
|
|
|
|
744
|
|
|
|
|
759
|
|
|
|
|
767
|
|
|
|
|
784
|
|
|
|
|
775
|
|
|
|
|
788
|
|
|
|
|
792
|
|
|
Total
|
|
|
|
1,024
|
|
|
|
|
1,030
|
|
|
|
|
1,049
|
|
|
|
|
1,063
|
|
|
|
|
1,086
|
|
|
|
|
1,091
|
|
|
|
|
1,111
|
|
|
|
|
1,124
|
|
|
Account size net loss rate(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
|
|
(3.8
|
)%
|
|
|
|
(4.7
|
)%
|
|
|
|
(3.6
|
)%
|
|
|
|
(2.8
|
)%
|
|
|
|
(3.7
|
)%
|
|
|
|
(3.4
|
)%
|
|
|
|
(3.9
|
)%
|
|
|
|
(3.5
|
)%
|
|
101 to 1,000 units
|
|
|
|
(0.6
|
)%
|
|
|
|
(10.0
|
)%
|
|
|
|
(1.1
|
)%
|
|
|
|
(1.8
|
)%
|
|
|
|
(4.5
|
)%
|
|
|
|
(1.3
|
)%
|
|
|
|
(2.3
|
)%
|
|
|
|
(2.6
|
)%
|
|
>1,000 units
|
|
|
|
(0.2
|
)%
|
|
|
|
(1.9
|
)%
|
|
|
|
(1.1
|
)%
|
|
|
|
(2.2
|
)%
|
|
|
|
1.1
|
%
|
|
|
|
(1.7
|
)%
|
|
|
|
(0.5
|
)%
|
|
|
|
(1.2
|
)%
|
|
Total
|
|
|
|
(0.6
|
)%
|
|
|
|
(1.8
|
)%
|
|
|
|
(1.3
|
)%
|
|
|
|
(2.2
|
)%
|
|
|
|
(0.4
|
)%
|
|
|
|
(1.8
|
)%
|
|
|
|
(1.2
|
)%
|
|
|
|
(1.7
|
)%
|
|
Account size ARPU
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 to 100 units
|
|
|
$
|
12.04
|
|
|
|
$
|
12.13
|
|
|
|
$
|
12.11
|
|
|
|
$
|
12.23
|
|
|
|
$
|
12.16
|
|
|
|
$
|
12.22
|
|
|
|
$
|
12.25
|
|
|
|
$
|
12.34
|
|
|
101 to 1,000 units
|
|
|
|
8.34
|
|
|
|
|
8.47
|
|
|
|
|
8.58
|
|
|
|
|
8.62
|
|
|
|
|
8.61
|
|
|
|
|
8.66
|
|
|
|
|
8.63
|
|
|
|
|
8.64
|
|
|
>1,000 units
|
|
|
|
6.62
|
|
|
|
|
6.65
|
|
|
|
|
6.59
|
|
|
|
|
6.59
|
|
|
|
|
6.64
|
|
|
|
|
6.64
|
|
|
|
|
6.67
|
|
|
|
|
6.68
|
|
|
Total
|
|
|
$
|
7.41
|
|
|
|
$
|
7.47
|
|
|
|
$
|
7.46
|
|
|
|
$
|
7.48
|
|
|
|
$
|
7.52
|
|
|
|
$
|
7.56
|
|
|
|
$
|
7.59
|
|
|
|
$
|
7.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 (LOSS) INCOME TO EBITDA (a)
|
|
(Unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
6/30/2018
|
|
|
3/31/2018
|
|
|
12/31/2017
|
|
|
9/30/2017
|
|
|
6/30/2017
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
9/30/2016
|
|
Reconciliation of net (loss) income to EBITDA (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(976
|
)
|
|
|
$
|
511
|
|
|
|
$
|
(21,384
|
)
|
|
|
$
|
3,727
|
|
|
|
$
|
1,498
|
|
|
|
$
|
854
|
|
|
|
$
|
3,026
|
|
|
|
$
|
4,058
|
|
|
Less (plus): Benefit from (provision for) income taxes
|
|
|
|
(730
|
)
|
|
|
|
475
|
|
|
|
|
24,920
|
|
|
|
|
171
|
|
|
|
|
1,155
|
|
|
|
|
620
|
|
|
|
|
1,876
|
|
|
|
|
2,123
|
|
|
Plus (less): Other income (expense)
|
|
|
|
(102
|
)
|
|
|
|
47
|
|
|
|
|
282
|
|
|
|
|
(359
|
)
|
|
|
|
(89
|
)
|
|
|
|
30
|
|
|
|
|
(100
|
)
|
|
|
|
(85
|
)
|
|
Less: Interest income
|
|
|
|
(342
|
)
|
|
|
|
(283
|
)
|
|
|
|
(229
|
)
|
|
|
|
(214
|
)
|
|
|
|
(154
|
)
|
|
|
|
(122
|
)
|
|
|
|
(99
|
)
|
|
|
|
(67
|
)
|
|
Operating (loss) income
|
|
|
|
(2,150
|
)
|
|
|
|
750
|
|
|
|
|
3,589
|
|
|
|
|
3,325
|
|
|
|
|
2,410
|
|
|
|
|
1,382
|
|
|
|
|
4,703
|
|
|
|
|
6,029
|
|
|
Plus: depreciation, amortization and accretion
|
|
|
|
2,669
|
|
|
|
|
2,713
|
|
|
|
|
2,774
|
|
|
|
|
2,775
|
|
|
|
|
2,851
|
|
|
|
|
3,223
|
|
|
|
|
3,176
|
|
|
|
|
3,229
|
|
|
EBITDA (as defined by the Company)
|
|
|
$
|
519
|
|
|
|
$
|
3,463
|
|
|
|
$
|
6,363
|
|
|
|
$
|
6,100
|
|
|
|
$
|
5,261
|
|
|
|
$
|
4,605
|
|
|
|
$
|
7,879
|
|
|
|
$
|
9,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2018
|
|
|
6/30/2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net (loss) income to EBITDA (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(465
|
)
|
|
|
$
|
2,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less (plus): Benefit from (provision for) income taxes
|
|
|
|
(255
|
)
|
|
|
|
1,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Other income
|
|
|
|
(54
|
)
|
|
|
|
(58
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Interest income
|
|
|
|
(625
|
)
|
|
|
|
(276
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
|
(1,399
|
)
|
|
|
|
3,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: depreciation, amortization and accretion
|
|
|
|
5,382
|
|
|
|
|
6,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined by the Company)
|
|
|
$
|
3,983
|
|
|
|
$
|
9,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
For the six months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2018
|
|
|
6/30/2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to EBITDA adjusted to exclude the
adoption of ASC 606 (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (as defined by the Company)
|
|
|
$
|
519
|
|
|
|
$
|
3,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Software revenue
|
|
|
|
1,166
|
|
|
|
|
509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Less) plus: Cost of revenue
|
|
|
|
(21
|
)
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Less) plus: Selling and marketing
|
|
|
|
(105
|
)
|
|
|
|
334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (c)
|
|
|
$
|
1,559
|
|
|
|
$
|
4,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. Management and the Board of Directors
rely on EBITDA for purposes of determining the Company's capital
allocation policies. EBITDA is also the starting point for the
calculation of operating cash flow for purposes of determining
whether management has achieved certain performance objectives in
the Company's short term and long term incentive plans.
|
|
(c) 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/20180725005767/en/
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