USA Mobility, Inc.
(Nasdaq: USMO), a leading provider of
mobile voice and data
unified communications solutions
, today announced selected operating results for the fourth quarter and year-ended December 31, 2012. The Company will report full fourth quarter and 2012 results after completing a restatement of its 2011 financial statements in connection with the previously announced material weakness in the design of internal control over financial reporting relating to software revenue recognition processes (see additional details below). The Company believes there is no material impact to the previously reported interim periods of 2012.
Key results and selected highlights for the fourth quarter and 2012 are shown below. These selected 2012 results are preliminary, unaudited and subject to change.
Software (Selected Information)
- Fourth quarter revenue for Wireless was $39.9 million, compared to $46.5 million in the fourth quarter of 2011 and $41.4 million in the third quarter of 2012. For 2012, Wireless revenue was $168.4 million, compared to $199.7 million in 2011.
- Fourth quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) for Wireless was $14.0 million, or 35.0 percent of revenue, compared to $17.1 million, or 36.7 percent of revenue, in the fourth quarter of 2011 and $16.3 million, or 39.3 percent or revenue, in the third quarter of 2012. Excluding severance expenses, fourth quarter EBITDA margin would have been 37.9 percent, compared to 39.3 percent in the year earlier quarter. For 2012, EBITDA margin increased to an all-time high of 38.3 percent, compared to 37.2 percent in 2011.
- Net unit losses were 31,000 in the fourth quarter, compared to 37,000 in the third quarter and 53,000 in the year-earlier quarter, while the quarterly rate of unit erosion improved to a historic low of 2.0 percent from 2.3 percent in the third quarter and 3.1 percent in the fourth quarter of 2011. The annual rate of unit erosion improved to 9.2 percent in the fourth quarter, also a record low, from 11.7 percent in the year-ago quarter. Units in service at December 31, 2012 totaled 1,515,000 compared to 1,668,000 at December 31, 2011.
- The rate of Wireless revenue erosion in the fourth quarter was 3.7 percent, compared to 3.1 percent in the third quarter and 4.1 percent in the year-earlier quarter. The annual rate of total revenue erosion was 14.2 percent in the fourth quarter, compared to 14.6 percent in the third quarter and 14.8 percent in the year-earlier quarter. The year-over-year rate of paging revenue erosion improved to a record low 13.3 percent in 2012 from 14.6 percent in 2011.
- Total ARPU (average revenue per unit) was $8.29 in the fourth quarter, compared to $8.36 in the third quarter and $8.51 in the fourth quarter of 2011. For the year, ARPU totaled $8.37, compared to $8.64 in 2011.
Total Company (Selected Information)
- Bookings for the fourth quarter increased to a record $18.1 million, compared to $15.7 million in the third quarter and $15.2 million in the year-earlier quarter. Bookings for the second half of the year increased to $33.8 million, compared to $27.5 million for the first half of 2012 representing an increase of 22.9%.
- Backlog increased to an all-time high of $40.6 million at December 31, 2012, compared to $36.2 million at September 30, 2012, and $32.9 million at year-end 2011.
- The renewal rate for maintenance in the fourth quarter was 99.0 percent.
- Financial results for Software have not yet been finalized.
- Dividends paid to stockholders totaled $16.5 million in 2012.
- The Company’s cash balance was $61.0 million at December 31, 2012.
- The number of full-time equivalent employees at December 31, 2012 totaled 665, including 378 for Wireless and 287 for Software, compared to a total of 683 at year-end 2011, including 434 for Wireless and 249 for Software.
“We were very pleased with our operating performance in the fourth quarter and full-year 2012,” said Vincent D. Kelly, president and chief executive officer. “Operating results once again either met or exceeded our key performance targets and both our Wireless and Software businesses achieved record results for the fourth quarter in several key operating categories. Overall, we continued to operate the Company profitably, maintain high operating margins in our Wireless business, reduce expenses, enhance our products and services, and expand our Software business into new markets. We also generated sufficient cash to again return capital to stockholders in the form of dividends and share repurchases.”