Spok Holdings, Inc. · NASDAQ:SPOK
Spok — USA Mobility — Shareholder Meeting (May 2008)
14 slides from Spok's shareholder meeting presentation, May 14, 2008
Slide 1: USA Mobility, Inc. Annual Meeting of Stockholders
USA Mobility, Inc. Annual Meeting of Stockholders May 14, 2008
Slide 2: Background - USA Mobility
We served 3.3 million subscribers on a national basis as of March 31, 2008 We are a profitable, cash flow positive, debt-free company We have returned a total of approximately $255.6 million or $9.40 per share to our stockholders since the November 2004 merger Background - USA Mobility Nationwide wi
Slide 3: Our Products and Services
We focus on providing wireless products and solutions to Healthcare, Government and Large Enterprise organizations Our customer relationships and distribution capabilities allow us to Solve customers' wireless communications needs Combining expertise with proven technology, applications & wireless d
Slide 4: Core Market Vertical Sales Focus
Core Market Vertical Sales Focus Focus on Revenue . . . Revenue Per Unit and Units in Service Solutions based sales - stressing the value of Paging One source for wireless solutions suite Sales assets deployed to maximize return High probability, targeted segments and new business opportunity Cross-
Slide 5: Our Customers
Our Customers Direct subscribers represent 88% of our total customer base Healthcare customers account for 43% of our direct base and exhibit a relatively stable base Government & Large Enterprise customers comprise 20% & 15%, respectively, of our direct base and have better subscriber retention cha
Slide 6: Operating Strategy
USA Mobility executes a Free Cash Flow "FCF" based operating strategy supported by three primary efforts: 1) high service levels to existing customers; 2) focus on selling and marketing; 3) cost efficiencies We have focused our sales and service efforts around our "core" users We have targeted those
Slide 7: Our Strategy Has Worked To Date!
Our Strategy Has Worked To Date! *Quarterly cash flow depicted is calculated as the difference between the Company's beginning and ending cash balance for the quarter adjusted to exclude debt repayment and cash distributions to shareholders. cash balance for the quarter adjusted to exclude debt repa
Slide 8: Revenue Efficiency Has Improved Each Year Despite Revenue Decline
Revenue Efficiency Has Improved Each Year Despite Revenue Decline Despite Revenue Decline Despite Revenue Decline
Slide 9: Cash Flow Efficiency Has Improved As Well
Cash Flow Efficiency Has Improved As Well Note: EBITDA (Earnings before Interest, Taxes, Depreciation, Amortization and Accretion) is defined as Operating Income, plus the add back of Depreciation, Amortization and Accretion. as Operating Income, plus the add back of Depreciation, Amortization and A
Slide 10: We Continue "Managing Between the Lines"
We Continue "Managing Between the Lines" Note: Assumes Arch and Metrocall combined as of January 1, 2004. *Total Operating Expenses excludes Stock Based Compensation, Depreciation, Amortization & Accretion, and Goodwill Impairment. Accretion, and Goodwill Impairment. Accretion, and Goodwill Impairme
Slide 11: Our Risks: Revenue and subscriber erosion
Our Risks Revenue and subscriber erosion Units in Service combined with the related Average Revenue Per Unit (ARPU) is what drives our revenue and thus our revenue erosion rate Subscriber erosion rates did improve in 2007 and in the first quarter of 2008, however there is no guarantee that we will b
Slide 12: Our Risks: FCC Back-Up Power Order
Our Risks The Federal Communications Commission (FCC) Back-Up Power Order (Order) Last October the FCC issued an Order requiring among other things that large commercial mobile radio service (CMRS) providers, including USA Mobility, have at least eight hours of back-up power at each transmission sit
Slide 13: Our Risks: Costs and Competition
Our Risks Costs It has become increasingly difficult to reduce our operating costs at a pace in line with our declining revenue base in order to maintain cash flow margins Our ability to continue to generate incremental savings has become a major challenge as we have harvested much of the low hangin
Slide 14: The Future
The Future USA Mobility will continue to offer cost effective, mission critical wireless communications services to our valuable customer base We will continue to operate efficiently and focus on profitability and Free Cash Flow We will return our earnings to stockholders through cash distributions