uncle, I'm taking a beating on USMO.
but reading at the PR seems theya re doing the right thing (on the bad situation)
will listen to the earning call tonight
I haven't decided if I want to add more or not.
the dividend could be cut (and opt for stock buyback)
all the best for both of us.
Stan
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Consistent with its stated strategy, Kelly said USA Mobility generated sufficient cash flow in 2007 to again return capital to stockholders. The Company paid quarterly cash distributions of $0.65 per share and a special distribution of $1.00 per share in the second quarter, returning a total of $98.3 million in capital to stockholders during the year. “In addition,” Kelly noted, “our Board of Directors on February 13, 2008, declared a $0.65 per share quarterly cash distribution for stockholders of record as of February 25th, payable on March 13th. Similar to previous distributions, we expect the entire amount of the March 13th cash distribution to be paid as a return of capital.”
Kelly cautioned investors, however, that the rate at which the Company will continue to return capital to stockholders would depend largely on future operating results as well as various other business factors. “Additionally, in light of the deterioration in our stock price over the last nine months, as well as increased flexibility we have under Section 382, the Board of Directors is evaluating our strategy for returning capital to stockholders which may include periodic recurring cash distributions, special cash distributions, a stock repurchase program or a combination of these alternatives.”
He also pointed out that a regulatory decision made during 2007 eventually could have a significant impact on the Company’s network cost structure and capital allocation strategy. “Last October the Federal Communications Commission (FCC) issued an Order on Reconsideration (Back-Up Power Order) requiring large commercial mobile radio service (CMRS) providers, including USA Mobility, to have at least eight hours of back-up power at each transmission site to minimize communications outages during emergencies. We do not believe the Back-Up Power Order should apply to paging carriers for a variety of reasons, including the unique simulcast and high-power network architecture of paging. Accordingly, along with numerous other wireless providers and trade associations, we appealed the Back-Up Power Order in January to the DC Circuit Court of Appeals. We expect the appeal to be heard around mid-year.”
Thomas L. Schilling, chief operating officer and chief financial officer, said: “We continued to strengthen our financial position in 2007, principally through ongoing cost reduction initiatives including our network rationalization program and efforts to ‘right size’ our organization as demand for paging products remained slow. While subscriber disconnect rates were higher than forecast, however, we continued to generate strong cash flow during the year and are pleased with our overall financial results.”
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