Slide 1: USA Mobility Investor Presentation
USA’ MOBILITY INVESTOR PRESENTATION
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may include forward-looking statements that are subject to risks and uncertainties relating to USA Mobility’s future financial and business performance. Such statements may include estimates of revenue, expenses, and income, as well as other predictive stateme
Slide 3: 2011 Strategic Assessment
2011 Strategic Assessment Wireless - business is extremely profitable, but continues to decline as paging users migrate to newer technologies – Cash flow margin once again expanded in 2011 – However, paging subscribers, revenue and cash flow declined – The rate of decline slowed, but the trajectory
Slide 4: Managing Our Wireless Business
Managing Our Wireless Business (Millions) Operating Cash Flow* Revenue Revenue Reduction Operating Expense** Reduction *Operating CashFlow(OCF)excludesDepreciation,Amortization & Accretion;GoodwillImpairment;includes CapitalExpenseand transaction costs. **Operating Expense excludes Depreciation, Amo
Slide 5: Driving Solid Performance – 2011 Highlights
Driving Solid Performance – 2011 Highlights Guidance Range 2011 (Millions) From To Results Revenues* Software $ 42.0 $ 48.0 $ 43.2 Wireless 193.0 200.0 199.7 Total $ 235.0 $ 248.0 $ 242.9 Operating Expenses** Software $ 40.0 $ 35.0 $ 38.6 Wireless 134.0 127.0 125.3 Total $ 174.0 $ 162.0 $ 163.9 Capi
Slide 6: Driving Solid Performance – 2011 Highlights
Driving Solid Performance – 2011 Highlights Wireless – Annual subscriber churn rate improved for second year in a row from 22.5% for 2009 to 13.4% for 2010 and 11.7% for 2011 – lowest in Company’s history – Year-over-year rate of revenue decline was 14.4% in 2011 compared to 19.5% in 2010 Software –
Slide 7: Driving Solid Performance – 2011 Highlights
Driving Solid Performance – 2011 Highlights On a consolidated basis, 29 cents of every dollar of revenue generated in 2011 turned into profit generating sufficient cash flow to: Return $22.1 million in capital to stockholders in the form of dividends; $1.00/share for the year Repay $23.7 million of
Slide 8: Repositioning for Future Growth
Repositioning for Future Growth Amcom Software Acquisition in March 2011 Capitalizes on our valuable franchise in core markets – Healthcare, Government, and Large Enterprise – Demonstrates our long-term commitment to new and existing customers – Provides a long-term revenue and cash flow stream for
Slide 9: Achieving Solid Long-Term Performance
Achieving Solid Long-Term Performance Create long-term value & return • We delivered on our plan through (Millions) excess capital to shareholders 2011 • We have started the process to capitalize on our strengths to reposition for long-term growth with the Amcom acquisition • We will continue that p
Slide 10: Long-Term Growth Strategy
Long-Term Growth Strategy Pursue Highly Targeted Acquisitions Expand International Presence Further Penetrate Existing Markets with New Product Development Cross sell + expand S&M resources Market Expansion 10
Slide 11: Our Changing Marketplace and Approach
Our Changing Marketplace and Approach Impact • Achieves Results • Increase new logo business • Retain and grow base business • Keep revenue “All in the Family” • Path to Company growth and Long Term Shareholder Value Cross-selling opportunitiesandcollaborationcreatevaluefor all stakeholders– Custome
Slide 12: Driving Wireless Customers to Amcom
Collaboration Driving Wireless Customers to Amcom Leads Sales Referrals, Key Account Manager Referrals, Webinar Registrants Collaboration among Sales orgs “At-bats” into sales pipeline 12
Slide 13: Virtual Cross Selling
Virtual Cross Selling Web Sites Direct Visitors Accordingly • Includes tracking leads and passing to appropriate sales representatives 13
Slide 14: Hospitals Today: Communications Challenged
Hospitals Today: Communications Challenged 14
Slide 15: Hospitals Need Solutions to Improve Quality of Care and Patient Safety
Hospitals Need Solutions to Improve Quality of Care and Patient Safety • Inadequate communication is the main Communications cause of sentinel events in hospitals(1) Patient Assessment • Amcom customer experiences Leadership illustrate need for rapid, more Procedural Compliance automated communicati
Slide 16: Amcom Solutions Solve Critical Communications Challenges
Amcom Solutions Solve Critical Communications Challenges Console Web Portal Amcom Mobile e.Notify Amcom Connect Messenger Operator Console Web Directory, Smartphone & Emergency Mobile Event On Call, Hours Tracking Tablet Messaging Notification Notification Speech Amcom Call Eclipse Enhanced 911 Amco
Slide 17: Care Connect
Care Connect Giving physicians control over their communication process Time of day What is the priority of What is my Who wants to connect? What is my status? Day of week the message? Preferred device? Why do they want to connect? Who:Dr. Elray TOD/ DOW:8:50 Priority:Urgent Preferred For:Urgent Sta
Slide 18: Expand International Presence
Expand International Presence • Offices in Australia, UK, Netherlands and Dubai (soon) • 16% of Software revenue in 2012 comes from outside of the U.S. – Strong presence in Australia – Growing presence in the Middle East, Europe and Asia • Pursuing international opportunities where they make sense g
Slide 19: M&A Strategy Approach
M&A Strategy Approach • Disciplined approach that focuses on targeted applications areas • We investigate potential acquisition targets where we believe that a buy is advantageous versus an internal build effort – Time to market – Reasonable valuation expectations – Domain and technology expertise •
Slide 20: IMCO Acquisition = Amcom Critical Test Results
IMCO Acquisition = Amcom Critical Test Results • Acquisition allows faster time to market for vital clinical customer need at cost efficient investment • • Helps to address Joint Commission's National Patient Safety Goal Requirements regarding timely delivery of critical test results – This is the #
Slide 21: Strategy Implementation – Capital Allocation
Strategy Implementation – Capital Allocation Reviewing capital allocation based upon: – The realities of cash flow from our Wireless business – The need for strategic capital to grow our Software business – The ability to unlock further value from our DTAs Considerations: – Maintain a significant cu
Slide 22: USA Mobility
USA MOBILITY INVESTOR PRESENTATION May 16, 2012 USAMOBILITY’ | ONE SOURCE FOR WIRELESS SOFTWARE