Slide 1: Investor Presentation May 18, 2011
Investor Presentation May 18, 2011 "Creating shareholder value through long-term free cash flow"
Slide 2: Forward-looking statements
2 This presentation may include forward-looking statements that are subject to risks and uncertainties relating to USA Mobility Inc.'s future financial and business performance. Such statements may include estimates of revenue, expenses, and income, as well as other predictive statements or plans wh
Slide 3: Our Strategy
Our Strategy Simple and straight forward: Create long-term shareholder value through free cash flow and return capital to shareholders Regular quarterly cash dividends Special cash dividends Stock repurchases Strategic M&A USA Mobility executes a Free Cash Flow based operating strategy supported by
Slide 4: Single Source Provider - Wireless & Software
4 Single Source Provider - Wireless & Software Market Segment Focus: Healthcare, Government, Large Enterprise USA Mobility Wireless operates largest 1-way and advanced 2-way paging networks in the U.S. Amcom develops, sells and supports enterprise-wide systems for organizations needing to automate,
Slide 5: USA Mobility Wireless
USA Mobility Wireless The leading provider of paging and other wireless communication services to the Healthcare, Government, Large Enterprise and Emergency Response sectors Headquartered in Springfield, VA Major Operations Hub in Plano, TX Own, operate and maintain the nation's largest 1-way and ad
Slide 6: Sales - Our Products & Services
Sales - Our Products & Services We solve customers' wireless communications needs with proven technology, software applications and devices Sales assets deployed to maximize return and retain relationship 6 Wide-area Critical Messaging & Paging Infrastructure Wireless Voice & Data Services Choice of
Slide 7: Sales - Core Market Segments
Sales - Core Market Segments Our "core" users and how they use our products and services 7 We target those users who benefit the most from the principal benefits of USA Mobility's products & services
Slide 8: Sales - Our Core Customer Base
Sales - Our Core Customer Base Healthcare customers account for 59% of our total base and exhibit relative stability Government & Large Enterprise customers comprise 13% & 10%, respectively, of our total base We expect Healthcare customers to continue to represent an increasing majority of our custo
Slide 9: Service - Reliability & Value
Service - Reliability & Value Paging's solid reputation has been particularly well earned -- and documented -- within the Healthcare and Emergency Response sectors 9/11, Hurricane Katrina, Minnesota bridge collapse, So Cal earthquake Unique architecture of a paging network delivers high reliability
Slide 10: Service Focus - Technical Reliability
Service Focus - Technical Reliability Carrier Grade Technology Operations 99.9% wireless network availability Technology Operations Centers (TOC) in Plano, TX with back up location in N. CA 24/7/365 Network Monitoring Engineering Local network engineering technicians Regional engineering management
Slide 11: Cost Efficiency
Cost Efficiency Since we created USA Mobility in late 2004 through the merger of the #1 and #2 independent national paging companies, our margins and efficiency have continued to improve For 2010, 31 cents of each dollar of revenue generated turned into cash profit 11 Note: OCF Margin excludes Depre
Slide 12: Our Strategy Has Worked
Our Strategy Has Worked Faced with declining subscribers and revenue, we have met enormous challenges with respect to managing the business, integrating and extracting costs For the past five years annual operating expenses have been reduced at a higher rate than the rate of annual revenue decline W
Slide 13: Past Results & Outlook
Past Results & Outlook The acquisition of Amcom Software presents significant upside opportunities for our stockholders and customers 13 *Actual cash invested exclusive of debt. Over the past six years it has become clear that paging revenues will continue to decline, pressuring future margins and o
Slide 14: Amcom Transaction Rationale
Amcom Transaction Rationale Identical Market Segment Focus - Healthcare, Government, Large Enterprise Complimentary products, services and cross-selling opportunities "Sticky" systems solutions with high maintenance renewal rates Strong growth profile combined with high margins Immediately accretive
Slide 15: Amcom Software
Amcom Software The market leader and first mover in Unified Healthcare Communications Improve Quality of Care and Patient Safety Significant Addressable Vertical Market beyond Healthcare Teamed with USMO - we ensure the right people get the right information on the right device at the right time! Me
Slide 16: Amcom's Unified Communications Solutions
Amcom's Unified Communications Solutions 16 Infant Protection Lab Results Nurse call Security System Location Tracking IT System Monitoring Enterprise-wide directory, presence, preference and escalation rules Delivery to right endpoint Universal connectivity to data sources
Slide 17: Amcom and Our Alliance Community
Amcom and Our Alliance Community Strong history of working with alliances in key industries 17
Slide 18: Hospitals Need Solutions
Hospitals Need Solutions 18 Inadequate communication is the main cause of sentinel events in hospitals(1) Amcom customer experiences illustrate need for rapid, more automated communications Lack of coordinated response to patients in distress Difficulty reaching the appropriate clinician Inaccurate
Slide 19: Hospitals Need Increased Productivity and Reduced Costs
Hospitals Need Increased Productivity and Reduced Costs Improving productivity and reducing costs are imperatives Amcom customer experiences illustrate need for reduced costs and increased productivity Simple, mundane calls consume operator bandwidth Dispersed call centers have heavy staffing overhe
Slide 20: Smartphone Data
Smartphone Data 20 What will they do with these? Physician reference Receive clinical information EKG Images Communicate Pager replacement Direct connect Dictate Administration 70% of hospitals that Amcom surveyed (customers & prospects) plan to move from some pagers to smartphones Source: Jupiter R
Slide 21: Smartphone Messaging: Amcom Mobile Connect
Separates critical messages from less important emails and SMS messages Full audit trail of delivery and read receipts Active acknowledgement of message and free-form text response Huge interest from installed base and prospects 21 Smartphone Messaging: Amcom Mobile Connect
Slide 22: Amcom: Growth History and Potential
Amcom: Growth History and Potential The strategic acquisition of Amcom Software establishes a strong foundation for long-term revenue growth Large installed base provides significant re-selling opportunities Software releases and superior support result in 99% maintenance renewal rates Relentless pu
Slide 23: Critical Wireless Messaging is Evolving
Critical Wireless Messaging is Evolving 23
Slide 24: Life Used to Be Simple
Life Used to Be Simple usAMOBILITY Amcem . Ce Ea hr
Slide 25: Sources of Data Are Exploding
Sources of Data Are Exploding 25 Bed Management
Slide 26: Ways to Communicate Are Exploding
Ways to Communicate Are Exploding 26 Vocera Badges Speech Recognition Bed Management Tablet
Slide 27: Many Inputs, Many Outputs
Many Inputs, Many Outputs 27 iPhone Vocera Badges Bed Management Nurse Call Tablet Speech Recognition
Slide 28: One Company at the Forefront of Mission-Critical Communications
One Company at the Forefront of Mission-Critical Communications End-to-end solutions today and tomorrow Right people get the right information at the right time on the right device 28
Slide 29: A Powerful Combination
A Powerful Combination Paging's value remains high for critical messaging Cost/reliability quotient still a factor Paging's survivable architecture provides advantages over broadband, especially in crisis and disaster scenarios Role based wireless device needs - not everyone needs a smartphone USA M
Slide 30: Focus on Healthcare
Focus on Healthcare 30 New Sales opportunities Strong market share provides target rich cross-selling & re-selling opportunities Combined 73% of AHA* 200+ bed hospitals *American Hospital Association.
Slide 31: Our Combined Strengths are Clear
Our Combined Strengths are Clear 31 Mission-Critical Communications Software Proven Infrastructure & Wireless Devices Long-Term, Trusted Customer Relationships Tenured, Professional Sales, Service & Technical Expertise Sales & Marketing Service Cost Efficiency Reliability/cost in our wireless networ
Slide 32: Business Outlook
Business Outlook Our focus on Free Cash Flow and returning capital to shareholders will continue and be enhanced over the long run with our Amcom solutions We will quickly pay down our bank debt Expect to be debt free net of cash by year end Expect to aggressively pay-off all of our bank debt Will c
Slide 33: 2011 Adjusted Guidance
2011 Adjusted Guidance 33 Revenues Revenues Wireless Software Combined Combined Operating Expenses (4) Operating Expenses (4) Operating Expenses (4) Wireless Software Combined Combined Capital Expenses Capital Expenses Wireless Software Combined Combined (1) The full year guidance assumes that the A