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Woohoo! 12% pay-off. Took a few weeks longer than I was expecting, but worth it in the end. Looking to buy in again in the next dip, hoping there is one.
Thank you and good night!
(EDIT)
Heh, I just looked at my previous post and realized that it was almost a month and a half more than I expected, but hey, I'm still happy with the results, my long-term holdings in CIM haven't paid off nearly as well in the long-run.
Holly cow, the price just dropped over $2. I love this stock, it's just so extremely volatile, if you get in at the right price you could trade up in less than a week.
I'll just say this, I bought in heavy again at 11.25 and guess what? the ex div date announcement should be coming out in the next 1-3 weeks.
I'll just be placing my sell order high now and see what happens.
Good luck everyone!
~ Wednesday! $USMO ~ Earnings posted, pending or coming soon! In Charts and Links Below!
~ $USMO ~ Earnings expected on Wednesday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.
http://stockcharts.com/h-sc/ui?s=USMO&p=D&b=3&g=0&id=p88783918276&a=237480049
http://stockcharts.com/h-sc/ui?s=USMO&p=W&b=3&g=0&id=p54550695994
~ Google Finance: http://www.google.com/finance?q=USMO
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=USMO#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=USMO+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=USMO
Finviz: http://finviz.com/quote.ashx?t=USMO
~ BusyStock: http://busystock.com/i.php?s=USMO&v=2
<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=USMO >>>>>>
http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916
*If the earnings date is in error please ignore error. I do my best.
still strong.. oer $15 now.. thinking to sell some but getting greedy since no additional insider been selling recently..
Nice Q2 earning, nice cash balance, nice dividend, nice cost control, nice/tighter guidance, Congrats USMO management!
========================
SPRINGFIELD, Va.--(BUSINESS WIRE)--USA Mobility, Inc. (Nasdaq: USMO - News), a leading provider of wireless messaging and communications services, today announced operating results for the second quarter ended June 30, 2010.
In addition, the Company’s Board of Directors declared a regular quarterly cash distribution of $0.25 per share, payable on September 10, 2010 to stockholders of record on August 19, 2010. Of the $0.25 cash distribution, the Company expects $0.23 will be a return of capital and $0.02 will be a dividend distribution.
Total revenue for the second quarter was $59.1 million, compared to $62.8 million in the first quarter of 2010 and $75.1 million in the year-earlier quarter. Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $20.4 million, compared to $22.0 million in the first quarter and $24.0 million in the second quarter of 2009.
Net income for the second quarter was $13.1 million, or $0.58 per fully diluted share, compared to $8.9 million, or $0.39 per fully diluted share, in the first quarter, and $44.7 million, or $1.93 per fully diluted share, in the year-earlier quarter. The second quarter of 2009 net income included a one-time income tax benefit of $37.0 million due to the settlement of uncertain tax positions and tax refund claims and a litigation settlement expense of $4.0 million. Excluding those two items, net income in the year-earlier quarter would have been $10.1 million, or $0.43 per fully diluted share. In the second quarter of 2010, the Company reassessed the expected level of the Company’s 2010 taxable income, which allowed the Company to reduce the deferred tax asset valuation allowance by $4.7 million with a corresponding reduction in income tax expense. Absent the reduction in income tax expense, net income would have been $8.4 million or $0.37 per fully diluted share.
Second quarter results included:
Net unit loss was 72,000 in the second quarter, compared to 83,000 in the prior quarter and 158,000 in the second quarter of 2009. Units in service totaled 2,027,000 at June 30, 2010, compared to 2,449,000 a year earlier.
The quarterly rate of subscriber loss improved to 3.5 percent, compared to 3.8 percent in the first quarter and 6.0 percent in the second quarter of 2009. The annual rate of subscriber erosion also improved to 17.2 percent in the second quarter from 19.5 percent in the first quarter and 22.9 percent in the year-earlier quarter.
Total paging ARPU (average revenue per unit) was $8.87 in the second quarter, compared to $9.00 in the first quarter and $8.96 in the year-earlier quarter.
The quarterly rate of revenue erosion was 5.8 percent, compared to 4.0 percent in the prior quarter and 5.7 percent in the second quarter of 2009. The annual rate of revenue erosion was 21.3 percent, compared to 21.2 percent in the first quarter and 18.4 percent in the year-earlier quarter.
Operating expenses (excluding depreciation, amortization and accretion) totaled $38.7 million in the second quarter, a reduction of $12.5 million, or 24.4 percent, from $51.2 million in the second quarter of 2009. Operating expenses declined 5.3 percent from the prior quarter.
EBITDA margin (or EBITDA as a percentage of revenue) was 34.6 percent, compared to 31.9 percent in the second quarter of 2009.
Capital expenses were $0.6 million in the quarter, compared to $4.4 million in the year-earlier quarter, due to fewer paging device purchases.
The Company repurchased 176,839 shares of common stock during the quarter under its buy back program, and approximately $18.1 million remains available for purchases under the currently approved plan.
The Company’s cash balance at June 30, 2010 was $129.1 million.
Vincent D. Kelly, president and chief executive officer, said: “USA Mobility reported another quarter of solid operating results, meeting or exceeding the majority of our key performance objectives. We were particularly pleased to see continued improvement in the pace of subscriber erosion, which slowed for the third consecutive quarter. At the same time, revenue, ARPU, and operating margins remained at high levels while our expense reduction efforts continued on track, all consistent with the financial guidance we provided earlier this year. In addition, we again generated sufficient cash flow during the quarter to return significant capital to stockholders in the form of cash distributions and share repurchases.”
Thomas L. Schilling, chief operating officer and chief financial officer, said the Company continued to pursue various cost reduction initiatives during the quarter. “Operating expenses (excluding depreciation, amortization and accretion) decreased 5.3 percent from the first quarter and 24.4 percent over the past 12 months,” Schilling noted, “including significant reductions in payroll expense and site rent expense. Operating expense as a percentage of revenue was 65.4 percent in the quarter, compared to 68.1 percent in the year-earlier quarter, with the lower expenses contributing to an EBITDA margin of 34.6 percent versus 31.9 percent in the same quarter of 2009.”
Based on current trends, the Company is revising its financial guidance for 2010. Revenues are now expected to be between $230 million to $235 million, operating expenses (excluding depreciation, amortization and accretion) between $156 million to $159 million, and capital expenses between $7 million to $9 million.
yup.. and the dividend is sweet too ($2 last year, and $1 this year, and the giong rate is $1 per year).
I just hope they can continue to produce this kind of result. it will be tough though. earning this wednesday. will be critical to see if they can get any traction inslowing down the business decline.
if they can they will stay here , if not I see the stock going down to probably $10-$12 range post earning..
Man, this stock has been trending up nicely for over 2 years now. Nice feturn on investment for many, I'm sure.
I have no idea regarding future movement, hope it keeps truckin' for ya.
Anyone bought this stock recently (at $13+). any thoughts.. seems that analyst are targetting the stock only worth $7
are you considering buying USMO..
I wonder what will happen to USMO business 2-3 years from now..
I see.. I'm not sure where it will go from here.. I don't think it will go up much further.. I think it will probably stay or actually go down from here since revenue is shrinking and the fact that they keep paying fat dividend (I know this is kind of non-intuitive, but they pay high dividend now but later they migh tnot be able to pay this much and also they are paying out most of what they earn signalling that they have no other better use of cash for growth for example. just my opinion)
I'm actually thinking several times to sell (and just book the profit) but I'm still in, as the dividend is very tempting.
I got in most of my shares at $6-$7 range more than a year ago, and have been getting dividend for more than $2 per share since then.. in fact , this is one of my best performer this past 12 months (including the dividend return)..
Thanks,
Stan
I'm not in USMO, but saw this news and
thought I'd post in this board, since noone had done so yet.
Hope you do well with it.
USA Mobility Reports Second Quarter Operating Results; Board Declares Quarterly Cash Distribution
Average Revenue Per Unit, Recurring Cash Flow Margins Reach New Highs; Company Continues to Reduce Operating Expenses
* Press Release
* Source: USA Mobility, Inc.
* On Wednesday July 29, 2009, 4:30 pm EDT
ALEXANDRIA, Va.--(BUSINESS WIRE)--USA Mobility, Inc. (Nasdaq: USMO - News), a leading provider of wireless messaging and communications services, today announced operating results for the second quarter ended June 30, 2009.
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Symbol Price Change
USMO 13.40 +0.30
Chart for USA Mobility, Inc.
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In addition, the Company’s Board of Directors declared a regular quarterly cash distribution of $0.25 per share, payable on September 10, 2009 to stockholders of record on August 14, 2009. The Company expects the entire distribution to be paid as a return of capital.
Total revenue was $75.1 million for the second quarter, compared to $79.7 million in the first quarter and $92.1 million in the second quarter of 2008. Operating income was $12.8 million for the second quarter, while EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $24.0 million, compared to $28.6 million in the first quarter and $30.6 million in the year-earlier quarter. Second quarter results were negatively impacted by a one-time settlement expense of $4.0 million in connection with patent litigation. Absent the one-time litigation settlement expense, operating income would have been $16.8 million and EBITDA $28.0 million.
Net income for the second quarter was $44.7 million, or $1.93 per fully diluted share, compared to net income of $10.3 million, or $0.37 per fully diluted share, in the second quarter of 2008. The significant increase in net income in the second quarter was largely the result of a one-time income tax benefit of $37.0 million due to the effective settlement of uncertain tax positions, and tax refund claims. Excluding the one-time tax adjustment and $4.0 million litigation settlement expense, net income in the second quarter would have been $10.1 million, or $0.43 per fully diluted share.
Second quarter results included:
* Total paging ARPU (average revenue per unit) increased to $8.96 in the second quarter, its highest level since the third quarter of 2005, from $8.86 in the first quarter and $8.54 in the year-earlier quarter.
* The quarterly rate of revenue erosion was 5.7 percent, compared to 5.4 percent in the first quarter and 2.8 percent in the second quarter of 2008. The annual rate of revenue erosion was 18.4 percent, compared to 15.9 percent in the first quarter and 14.3 percent in the year-earlier quarter.
* Net unit loss in the second quarter was 158,000, compared to 208,000 in the first quarter and 157,000 in the second quarter of 2008. Total units in service were 2,449,000 at June 30, 2009, compared to 2,607,000 at March 31, 2009.
* The quarterly rate of subscriber loss was 6.0 percent in the second quarter, compared to 7.4 percent in the first quarter and 4.7 percent in the second quarter of 2008. The annual rate of subscriber erosion was 22.9 percent in the second quarter, compared to 21.8 percent in the first quarter and 15.5 percent in the year-earlier quarter.
* Operating expenses (excluding depreciation, amortization and accretion) totaled $51.2 million, compared to $51.1 million in the first quarter of 2009. Absent the one-time litigation settlement expense of $4.0 million, operating expenses in the second quarter would have been $47.2 million, a reduction of $14.3 million, or 23.3 percent, from $61.5 million in the second quarter of 2008.
* EBITDA margin (or EBITDA as a percentage of revenue) was 31.9 percent, compared to 35.9 percent in the first quarter and 33.2 percent in the year-earlier quarter. Excluding the one-time litigation settlement expense of $4.0 million, EBITDA margin in the second quarter would have been 37.2 percent, the highest level since the Company’s merger in 2004.
* Based on the completion of the IRS income tax audits for 2005 and 2006 and certain refund claims, the Company recorded a $37.0 million reduction to income tax expense in the quarter.
* Capital expenses were $4.4 million, compared to $6.1 million in the first quarter of 2009.
* The Company’s cash balance at June 30, 2009 was $79.6 million.
“We continued to make excellent progress during the second quarter,” said Vincent D. Kelly, president and chief executive officer, “as operating results met or exceeded the majority of our performance objectives and were consistent with the financial guidance we provided earlier this year. ARPU and recurring cash flow margins rose to their highest levels in years, recurring operating expenses were further reduced, and we continued to provide cost effective and reliable wireless communications services to our customers on a profitable basis.” Kelly added: “While subscriber cancellations were higher than anticipated, due in large part to a weak economy nationwide, we continued to see lower net unit losses in our Healthcare market segment, which now represents approximately 50 percent of our customer base.”
Kelly said USA Mobility again returned capital to stockholders in the second quarter in the form of cash distributions, consistent with its goal of generating sufficient free cash flow to regularly return capital to stockholders. “We produced $25.3 million in cash from operations in the quarter, allowing us to pay a regular quarterly cash distribution of $0.25 per share on June 18, 2009, representing a return of capital to our stockholders of approximately $5.7 million. Including the second quarter distribution, we have now returned $311.1 million to stockholders over the past four years.”
Thomas L. Schilling, chief operating officer and chief financial officer, said the Company continued to reduce operating expenses during the second quarter through a combination of internal consolidations and company-wide cost control initiatives. “Absent the one-time litigation settlement expense of $4.0 million, operating expenses (excluding depreciation, amortization and accretion) decreased 23.3 percent from the year-earlier quarter, once again outpacing the year-over-year decline in revenue of 18.4 percent. In addition,” Schilling noted, “excluding the one-time litigation settlement expense, second quarter operating expenses as a percentage of revenue were at their lowest level in more than four years.”
Commenting on the Company’s financial expectations for the balance of the year, Schilling said, “Based on our performance through the first half of the year, we are revising our financial guidance for 2009 to revenue between $286 million to $291 million, operating expenses (excluding depreciation, amortization and accretion) between $194 million to $197 million, and capital expenses between $16 million to $18 million.
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its second quarter results at 10:00 a.m. Eastern Time on Thursday, July 30, 2009. The dial-in number for the call is 888-801-6494 (toll-free) or 913-312-0970 (toll). The pass code for the call is 8045078. A replay of the call will be available from 3:00 p.m. ET on July 30 until 11:59 p.m. on Thursday, August 13. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 8045078.
TycoonSoon, I'm still in..
what part of the news that you like today?
What do you think the long term prospect for USMO (like 3-4 years down the road)?
I'm asking this information above because I'm a long term investor (not looking just for a quick trade)
USMO has been a nice mover...anyone still in?
Great news after hours as well today
$1.25 special Cash Distribution.
Just wonder if it worth to buy some share to pick up $1.25 a share special cash tomorrow.
The announcement is on Yahoo.
http://finance.yahoo.com/news/USA-Mobility-Reports-Fourth-bw-14532142.html
anyone have any new thoughts on the paging business? and whether they will have a future ? are paging for here to stay?
slowly crawling up.. not sure if USMO really worth $11+ but I'm not complaining... thoughts? sell? hold?
Nice to see USMO continue to go up...
not sure why but I'm enjoying it.. too bad the next dividend will give me less shares (as I'm doing the DRIP option)
Stan
Thank you USMO... great Q2 result...
the only issue is.. when will the erosion of subscriber will stop (or even start to increase.. hopefully someday..)... and the core long term user stays subscribing..
the decrease seems to stabilize a bit now..
other than erosion issue, everything else seems great (especially if you compare to SIRI or XMSR result)
I'm strong on this one and sort of long (not sure how long since the erosion is still there but I like what I see)
the dividend and the buyback are definitely nice.. how many of you dare/plan to continue to add/accumulate... I'm still thinking about adding at the current price...
congrats all longs (especially those who bought at the current price or lower).. tomorrow conference call should be intereting.. hope the institution will not dump this stock.. one contrarian mutual/hedge fund pick up a lot of USMO shares last quarter and I guess so far they made the right call...
Stan
'Be long where the market is setting the hurdle very low'
David Trainer, president of New Constructs, an independent research firm in Nashville, Tenn., says that investors should worry less about big-picture market issues and focus on the numbers in order to decide what's a bargain and what's a problem. In a radio interview, Trainer noted, for example, that some real estate investment trusts are improperly valued, and are obvious sells before ever factoring in the property market and how that makes the situation worse; on the flip side, he noted that some stocks - particularly some financials - have dropped to where they are compelling buys because they have little work to do to make gains "because the market has overreacted."
Audio at this link!
http://www.marketwatch.com/tvradio/player.asp?siteid=yhoof&guid=%7B35C6338F%2DCF6C%2D4E68%2DB932%2DBF7D025DA720%7D
LOL I was just messing with you, I know u were listening to the cc
weeeeeeeeeeeeeeee
sure sure, likely story!
Listened to the conference call live as well
lol..Already read it!
now youve got some stuff to rea through buddy!
Form 10-Q for USA MOBILITY, INC
9-May-2008
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
This quarterly report contains forward-looking statements and information relating to USA Mobility, Inc. and its subsidiaries ("USA Mobility" or the "Company") that are based on management's beliefs as well as assumptions made by and information currently available to management. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "anticipate", "believe", "estimate", "expect", "intend" and similar expressions, as they relate to USA Mobility and its subsidiaries or its management are forward-looking statements. Although these statements are based upon assumptions management considers reasonable, they are subject to certain risks, uncertainties and assumptions, including but not limited to those factors set forth below and under the captions "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")," and "Part I - Item 1A - Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission (the "SEC") on March 13, 2008 (the "Annual Report"). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as anticipated, believed, estimated, expected or intended. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their respective dates. The Company undertakes no obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to USA Mobility, Inc. and its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by the discussion under "Item 1A. Risk Factors" section.
Overview
In preparing the discussion and analysis contained in this Item 2, the Company presumes that readers have read or have access to the discussion and analysis contained in the Annual Report. In addition, the following discussion and analysis should be read in conjunction with USA Mobility's condensed consolidated financial statements and related notes and "Part I - Item 1A - Risk Factors", which describe key risks associated with the Company's operations and industry, and "Part II - Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations" section of the Annual Report.
Sales and Marketing
USA Mobility markets and distributes its services through a direct sales force and a small indirect sales force.
Direct. The direct sales force rents or sells products and messaging services directly to customers ranging from small and medium-sized businesses to companies in the Fortune 1000, healthcare and related businesses and Federal, state and local government agencies. USA Mobility intends to continue to market to commercial enterprises utilizing its direct sales force as these commercial enterprises have typically disconnected service at a lower rate than individual consumers. As of March 31, 2008, USA Mobility sales personnel were located in approximately 58 offices in 30 states throughout the United States. In addition, the Company maintains several corporate sales groups focused on medical sales; Federal government accounts; large enterprises; advanced wireless services; systems sales applications; emergency/mass notification services and other product offerings.
Indirect. Within the indirect channel the Company contracts with and invoices an intermediary for airtime services (which includes telemetry services). The intermediary or "reseller" in turn markets, sells, and provides customer service to the end user. Generally, there is no contractual relationship that exists between USA Mobility and the end subscriber. Therefore, operating costs per unit to provide these services are lower than those required in the direct distribution channel. Indirect units in service typically have lower average revenue per unit than direct units in service. The rate at which subscribers disconnect service in the indirect distribution channel has generally been higher than the rate experienced with direct customers, and USA Mobility expects this to continue in the foreseeable future.
The following table summarizes the breakdown of the Company's direct and indirect units in service at specified dates:
As of As of As of
March 31, December 31, March 31,
2007 2007 2008
Distribution Channel Units % of Total Units % of Total Units % of Total
(Units in thousands)
Direct 3,442 88.0 % 3,075 88.2 % 2,939 88.2 %
Indirect 470 12.0 % 410 11.8 % 394 11.8 %
Total 3,912 100.0 % 3,485 100.0 % 3,333 100.0 %
Change in Units
For the Three Months Ended March 31, Between
2007 % of Total 2008 % of Total 2007 and 2008
(Units in thousands)
1 to 3 Units 251 7.2 % 184 6.2 % (67 )
4 to 10 Units 150 4.4 % 112 3.8 % (38 )
11 to 50 Units 368 10.7 % 276 9.4 % (92 )
51 to 100 Units 215 6.2 % 164 5.6 % (51 )
101 to 1000 Units 924 26.9 % 784 26.7 % (140 )
> 1000 Units 1,534 44.6 % 1,419 48.3 % (115 )
Total direct units in service 3,442 100.0 % 2,939 100.0 % (503 )
As of As of As of
March 31, December 31, March 31,
2007 2007 2008
Service Type Units % of Total Units % of Total Units % of Total
(Units in thousands)
One-way messaging 3,557 90.9 % 3,166 90.8 % 3,017 90.5 %
Two-way messaging 355 9.1 % 319 9.2 % 316 9.5 %
Total 3,912 100.0 % 3,485 100.0 % 3,333 100.0 %
As of As of As of
March 31, December 31, March 31,
2007 2007 2008
Ownership Units % of Total Units % of Total Units % of Total
(Units in thousands)
Owned by the Company and leased to
subscribers 3,183 81.4 % 2,864 82.2 % 2,746 82.4 %
Owned by subscribers 259 6.6 % 211 6.0 % 193 5.8 %
Owned by indirect customers or
their subscribers 470 12.0 % 410 11.8 % 394 11.8 %
Total 3,912 100.0 % 3,485 100.0 % 3,333 100.0 %
For the Three Months Ended
March 31, 2007 December 31, 2007 March 31, 2008
Gross Gross Gross
Distribution Channel Placements Disconnects Placements Disconnects Placements Disconnects
(Units in thousands)
Direct 103 259 91 209 85 221
Indirect 27 64 36 53 33 49
Total 130 323 127 262 118 270
For the
Three Months Ended March 31, Favorable/
2007 2008 (Unfavorable)
1 to 3 Units (9.0 %) (7.8 %) 1.2 %
4 to 10 Units (7.9 %) (6.5 %) 1.4 %
11 to 50 Units (7.5 %) (7.6 %) (0.1 %)
51 to 100 Units (4.9 %) (6.9 %) (2.0 %)
101 to 1000 Units (4.4 %) (5.2 %) (0.8 %)
> 1000 Units (2.2 %) (2.4 %) (0.2 %)
Total direct net unit loss% (4.3 %) (4.4 %) (0.1 %)
ARPU For the Three Months Ended
March 31, December 31, March 31,
Distribution Channel 2007 2007 2008
Direct $ 9.18 $ 9.09 $ 8.95
Indirect 4.79 5.06 4.97
Consolidated 8.65 8.62 8.49
For the
Three Months
Ended Change in ARPU
March 31, Between
2007 2008 2007 and 2008
1 to 3 Units $ 14.68 $ 14.66 $ (0.02 )
4 to 10 Units 13.41 13.56 0.15
11 to 50 Units 10.95 10.99 0.04
51 to 100 Units 9.44 9.57 0.13
101 to 1000 Units 8.24 8.23 (0.01 )
> 1000 Units 7.93 7.75 (0.18 )
Total direct ARPU $ 9.18 $ 8.95 $ (0.23 )
Comparison of Revenues and Selected Operating Expenses for the Three Months
Ended March 31, 2007 and 2008
For the Three Months Ended March 31,
2007 2008 Change Between
% of % of 2007 and 2008
Amount Revenue Amount Revenue Amount %
(Dollars in thousands)
Revenues:
Service, rental and maintenance, net $ 107,142 96.1 % $ 89,887 94.9 % $ (17,255) (16.1 %)
Product sales, net 4,400 3.9 % 4,871 5.1 % 471 10.7 %
Total $ 111,542 100.0 % $ 94,758 100.0 % $ (16,784) (15.0 %)
Selected operating expenses:
Cost of products sold $ 687 0.6 % $ 1,081 1.1 % $ 394 57.4 %
Service, rental and maintenance 39,033 35.0 % 33,969 35.8 % (5,064) (13.0 %)
Selling and marketing 10,242 9.2 % 7,836 8.3 % (2,406) (23.5 %)
General and administrative 26,448 23.7 % 21,808 23.0 % (4,640) (17.5 %)
Total $ 76,410 68.5 % $ 64,694 68.2 % $ (11,716) (15.3 %)
FTEs 1,183 968 (215) (18.2 %)
For the
Three Months Ended March 31,
2007 2008
(Dollars in thousands)
Service, rental and maintenance revenues, net:
Paging:
Direct:
One-way messaging $ 77,547 $ 65,615
Two-way messaging 19,426 15,167
96,973 80,782
Indirect:
One-way messaging 5,301 3,676
Two-way messaging 1,729 2,315
$ 7,030 $ 5,991
Form 8-K for USA MOBILITY, INC
7-May-2008
Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition.
On May 6, 2008, USA Mobility, Inc. announced operating results for the first quarter ended March 31, 2008. The full text of the press release issued in connection with the announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated into this Item 2.02 by reference. The information in this Item 2.02 of this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing. Item 8.01 Other Events.
On May 2, 2008, USA Mobility, Inc. announced that its Board of Directors has reset the quarterly cash distribution rate to $0.25 per share of common stock from $0.65 per share of common stock. Also on May 2, 2008, the Board of Directors declared a regular quarterly cash distribution of $0.25 per share of common stock. The cash distribution will be paid on June 19, 2008 to stockholders of record on May 19, 2008. The Company expects the entire amount of the cash distribution to be paid as a return of capital.
The information in this Item 8.01 of this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing. Item 9.01 Financial Statements and Exhibit.
(a) Financial statements of business acquired:
Not applicable.
(b) Pro forma financial information:
Not applicable.
(c) Exhibit:
Exhibit 99.1
Description of Exhibit - Press Release dated May 6, 2008 (furnished pursuant to Item 2.02; not "filed" for purposes of Section 18 of the Exchange Act)
yessir! arent you?
well i know you like USMO! and i do too...just wondering whats holding this thing back.....not that 1 little red spot can be a great indicator, i just thought we would see bigger better faster more lol
How can you not like USMO!
some leveling out on some of the indicators......not a whole lot of resistance in the chart though, maybe just a bump of accumulation as money enters back into USMO........thoughts anyone?
Oh yes..Posting some highlights on Trendfinders
Conference call GREAT..You can probably tell by the spike in the PPS
USMO chart, indicators turning down again.......i figured these earnings would be better for them, hrmmm
lol got the drink :D
Welcome to USMO..Can we get you a drink and an appetizer sir?
hellooooooooooooooooooo :)
.25 in june not bad, op expen down looks as we may have another monster in the making good job!Conference call will be interesting.
They hit on earnings and took a goodwill charge of $188M..Paying dividend of 25 cents per share..Waiting now til 10 am for the conference call..
Okay I'm back What happened brother?
I am happy with it as a shareholder..The goodwill was a very good move IMO...The 25 cent div. is $1.00 a year saying they do not do anything special or increase it after the FCC decision this summer (provided it is in their favor) the yield is over 14% with a $7.00 PPS
excluding write down income is $10.4 million, or $0.38
They are probably trying to clean the house with the big goodwill writedown, which is a good thing I guess. this loss definitely will generate more tax shelter (tax loss carryforward, tax deffered asset)
Not sure how the 188M goodwill is generated in their balance sheet at the first place (if anyone can shed some lights that will be appreciated). is it resulted from the merger of arch wireless and metrocall?
Time warner write down $50B at one point 5 years ago from lowering the value of their AOL acquisition
I'm holding USMO btw. 25 cents is a lot less than .65 but we are kidding ourself if we expect them to maintain .65 quarterly dividend (after the result in Q42008 and the expectation to build a power backup for their network)
I haven't read the earning report in very detail but quite encouraged by the headline and the first two paragraphs
JMHO,
Stan
USA Mobility Reports First Quarter Operating Results, Board Declares Quarterly Cash Distribution
USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced operating results for the first quarter ended March 31, 2008.
Total revenue for the first quarter was $94.8 million, compared to $100.2 in the fourth quarter of 2007 and $111.5 million in the year-earlier quarter. EBITDA (earnings before interest, taxes, depreciation, amortization, accretion and goodwill impairment) in the first quarter totaled $29.9 million, compared to $24.5 million in the fourth quarter of 2007 and $35.1 million in the first quarter of 2007. First quarter net loss was $177.8 million, or $6.48 per fully diluted share, compared to net income of $13.0 million, or $0.47 per fully diluted share, in the first quarter of 2007. The loss resulted from a goodwill impairment for which the Company incurred a $188.2 million non-cash expense to write-off its entire goodwill balance. Absent the goodwill write-down, net income in the first quarter would have been $10.4 million, or $0.38 per fully diluted share.
First quarter results included: EBITDA margin (or EBITDA as a percentage of revenue) increased to 31.6 percent in the first quarter, compared to 24.5 percent in the fourth quarter of 2007. This represents the highest EBITDA margin since the Company was formed in late 2004 by the merger of Arch Wireless, Inc. and subsidiaries and Metrocall Holdings, Inc. and subsidiaries.
The annual rate of subscriber erosion improved to 14.8 percent from 15.1 percent in the fourth quarter of 2007 and 15.6 percent in the year-earlier quarter. The quarterly rate of subscriber loss improved to 4.4 percent in the first quarter, historically the quarter with the highest net churn, compared to 4.7 percent in the first quarter of 2007.
Net unit loss was 152,000 in the first quarter, compared to 193,000 in the first quarter of 2007. Units in service totaled 3,333,000 at March 31, 2008, compared to 3,485,000 at December 31, 2007.
The annual rate of revenue erosion improved to 15.0 percent from 17.3 percent in the first quarter of 2007.
Operating expenses, excluding depreciation, amortization, accretion and goodwill impairment, totaled $64.8 million in the first quarter, a reduction of $10.8 million, or 14.3 percent, from $75.7 million in the fourth quarter of 2007. Quarterly operating expenses declined 15.2 percent from the first quarter 2007, and, in both dollars and as a percentage of revenue, are at their lowest level in nearly four years.
Total paging ARPU (average revenue per unit) decreased to $8.49 in the first quarter from $8.62 in the fourth quarter of 2007 and $8.65 in the year-earlier quarter.
Capital expenses were $4.0 million, compared to $5.2 million in the fourth quarter of 2007.
The Company’s cash balance at March 31, 2008 was $69.0 million.
“USA Mobility reported another solid operating performance in the first quarter,” said Vincent D. Kelly, president and chief executive officer, “meeting or exceeding a majority of the performance objectives contained in our business plan and consistent with the financial guidance we provided earlier this year. Our rate of annual subscriber and revenue erosion showed further improvement during the quarter as we continued to concentrate our sales and marketing efforts on our core market segments of Healthcare, Government and Large Enterprise. In addition, despite ongoing business risks, we continued to generate substantial free cash flow while successfully managing the business profitably with a low-cost operating structure.” Kelly added, “During the quarter we gained sales traction on several new products we launched last year for Healthcare accounts, including ReadyCall, our wide-area network coaster pager that hospitals and doctors use to eliminate congestion in waiting rooms, and our Private Medical Messaging Network, a dedicated paging and communications system that manages messaging traffic within a single hospital or multiple hospital campus network. In addition, we are very enthused about the initial response we have received to our new product PageSync, which allows our paging customers to receive their pages on a BlackBerry® or SMS handset. We believe this product solves a critical need by giving our customers a solution that unifies paging with voice and e-mail in data-centric handsets, like BlackBerrys, providing the unique benefits of both solutions on one device. While our sales force is just beginning to acquaint customers with the benefits of this innovative product, the feedback they have received to date has been very positive.” Kelly said the Company again returned capital to stockholders in the first quarter consistent with its stated goal, paying a regular quarterly cash distribution of $0.65 per share, or an aggregate amount of approximately $17.8 million, on March 13, 2008. In addition, the Board of Directors on May 2, 2008 declared a regular quarterly cash distribution of $0.25 per share, payable on June 19, 2008 to stockholders of record on May 19, 2008. The Company expects the cash distribution, a total of approximately $6.8 million, to be paid as a return of capital. “As previously discussed,” Kelly stated, “the Board of Directors and management set the revised cash distribution rate at a level that is sustainable on a longer term basis over the next several years. The decision to re-set the rate was made to strengthen our financial position while maintaining a respectable yield on our stock, and was not the result of a sudden weakening in our near-term outlook. In fact, our first quarter cash flow performance and record EBITDA margin of 31.6 percent reflect our ability to generate significant cash flow notwithstanding the many challenges we face. Our commitment to return the cash we generate to our stockholders has not changed. Since the merger, which formed USA Mobility, Inc. in late 2004, and prior to today’s announcement, we have already returned $9.40 per share, representing $255.6 million, to our stockholders. Our current cash balance is approximately $2.50 per share and we expect to generate significant cash over the remainder of this year. We are currently awaiting the result of our challenge to the Federal Communications Commission (FCC) on the Back-Up Power Order appeal and we anticipate resolution by the end of the summer, at which point we may be in a position to return additional cash above the level of our recurring quarterly distributions to our stockholders either in the form of a stock repurchase program, special distributions as we have done in the past or a combination of both.” Thomas L. Schilling, chief operating officer and chief financial officer, said the Company’s expenses declined significantly during the first quarter as a result of ongoing cost control initiatives. “Operating expenses (excluding depreciation, amortization, accretion and goodwill impairment) decreased 15.2 percent from the year-earlier quarter,” he said, “outpacing the year-over-year decline in revenue of 15.0 percent. In addition,” Schilling noted, “operating expense as a percentage of revenue was 68.4 percent in the first quarter, the lowest level in almost four years.” Schilling added, “The combination of lower expenses and improving revenue trends contributed to an increase in first quarter EBITDA and EBITDA margin compared to the prior quarter. While we are pleased and encouraged by these financial trends, we are maintaining our previous financial guidance for 2008 of revenues between $345 million to $355 million, operating expenses – excluding depreciation, amortization, accretion and goodwill impairment – between $250 million to $255 million, and capital expenses between $18 million to $20 million.” Commenting on the Company’s decision to write-off goodwill, Schilling said, “The significant change in our market capitalization at March 31, 2008, compared to December 31, 2007, necessitated a goodwill impairment analysis to be performed earlier than our normal annual test. Based on the lower market value and the accounting rules related to goodwill, we recorded a $188.2 million non-cash expense in the first quarter to write-off our entire goodwill balance. This expense has no impact on our underlying operations or cash flows.” USA Mobility plans to host a conference call for investors on its first quarter results at 10:00 a.m. Eastern Time on Wednesday, May 7, 2008. The dial-in number for the call is 877-419-6603 (toll-free) or 719-325-4903 (toll). The pass code for the call is 4055284. A replay of the call will be available from 4:00 p.m. ET on May 7 until 11:59 p.m. on Wednesday, May 21. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 4055284.
USA Mobility’s Annual Meeting of Stockholders will be held at 10:00 a.m. Eastern Time on Wednesday, May 14, 2008 in Alexandria, VA.
USA Mobility Sets Date to Report First Quarter Operating Results
Investor Conference Call Scheduled
USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced it will report operating results for the first quarter ended March 31, 2008 on Tuesday, May 6, 2008 at approximately 4:30 p.m. Eastern Time (ET).
In addition, the Company plans to host a conference call for investors on its first quarter results at 10:00 a.m. ET on Wednesday, May 7, 2008. The dial-in number for the call is 877-419-6603 (toll-free) or 719-325-4903 (toll). The pass code for the call is 4055284. A replay of the call will be available from 4:00 p.m. ET on May 7 until 11:59 p.m. on Wednesday, May 21. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 4055284.
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