Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Spok Reports 2021 Second Quarter Results


Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the second quarter ended June 30, 2021. In addition, the Company's Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on September 10, 2021, to stockholders of record on August 17, 2021.

Key Second Quarter 2021 Operating Highlights:

Management Commentary:

"We made progress in several key performance areas with software revenue up more than 8% from prior year levels, continued improvement in wireless trends, and continued expense management that resulted in declines in many expense categories," said Vincent D. Kelly, president and chief executive officer. "However, our second quarter results demonstrate the continuation of the very challenging selling environment we are operating in as a result of the COVID-19 pandemic and the related impact on our customers budgets and their ability to focus on new projects. While we were not satisfied with the level of software revenue bookings in the second quarter, given the slow recovery in the healthcare industry, we believe that seasonality and timing had a large impact on performance. We remain encouraged by the size and quality of the pipeline of software deals for the second half of 2021 and believe that we will exit the year on very firm footing.

"We launched Spok Go, our software-as-a-service, cloud-native platform just over a year ago, at the onset of the pandemic. In the second quarter, we added two more Spok Go wins, bringing the aggregate contract value for that product to $3.1 million. Spok is a company with a strong operational foundation built on three pillars. First is our paging network, the largest in the United States, generating strong margins. Next is our Spok Care Connect® suite of products with a valuable maintenance revenue stream that contributed $38.6 million in 2020. Last is our new subscription-based, cloud-native Spok Go platform that we believe has strong potential.

"Finally, Spok continues to demonstrate its stable revenue base, with over 82 percent of second quarter 2021 revenues recurring in nature, coming from either our legacy wireless business or software maintenance contracts. This, combined with disciplined expense control, gives us confidence as we enter the second half of the year. Spok Go provides a critical function that we believe will become even more important in this environment. Our clinical communications platform provides hospitals with a system of action, not just of record, delivering reliable communications and clinical information, including clinical test results, to care teams when and where it matters most to improve patient outcomes," concluded Kelly.

2021 Second Quarter and Year-to-Date Results:

Consolidated revenue for the second quarter of 2021 under Generally Accepted Accounting Principles ("GAAP") was $35.7 million, compared to $35.7 million in the second quarter of 2020. For the first six months of 2021, consolidated revenue totaled $71.8 million, compared to $73.0 million in the prior year period.

 

 

For the three months ended

 

For the six months ended

(Dollars in thousands)

 

June 30, 2021

 

June 30, 2020

 

Change (%)

 

June 30, 2021

 

June 30, 2020

 

Change (%)

Wireless revenue

 

 

 

 

 

 

 

 

 

 

 

 

Paging revenue

 

$

19,135

 

$

19,990

 

(4.3

)%

 

$

38,488

 

$

40,441

 

(4.8

)%

Product and other revenue

 

 

724

 

 

1,088

 

(33.5

)%

 

 

1,491

 

 

2,024

 

(26.3

)%

Total wireless revenue

 

$

19,859

 

$

21,078

 

(5.8

)%

 

$

39,979

 

$

42,465

 

(5.9

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

Software revenue

 

 

 

 

 

 

 

 

 

 

 

 

License

 

$

818

 

$

749

 

9.2

%

 

$

2,325

 

$

1,704

 

36.4

%

Services

 

$

4,865

 

$

3,812

 

27.6

%

 

$

9,219

 

$

8,359

 

10.3

%

Equipment

 

$

482

 

$

601

 

(19.8

)%

 

$

1,098

 

$

1,327

 

(17.3

)%

Subscription

 

$

90

 

$

?

 

?

%

 

$

135

 

$

?

 

?

%

Maintenance

 

 

9,609

 

 

9,499

 

1.2

%

 

 

19,003

 

 

19,151

 

(0.8

)%

Total software revenue

 

 

15,864

 

 

14,661

 

8.2

%

 

 

31,780

 

 

30,541

 

4.1

%

Total revenue

 

$

35,723

 

$

35,739

 

?

%

 

$

71,759

 

$

73,006

 

(1.7

)%

GAAP net loss for the second quarter of 2021 was $0.7 million, or a loss of $0.04 per diluted share, compared to a net income of $3.8 million, or $0.20 per basic and diluted share, in the second quarter of 2020. GAAP net loss for the first six months of 2021 was $3.0 million, or a loss of $0.16 per diluted share, compared to a net loss of $0.8 million, or $0.04 per diluted share, in the prior year period.

In the second quarter of 2021, adjusted EBITDA loss totaled $0.1 million compared to adjusted EBITDA of $3.0 million in the second quarter of 2020. In the first six months of 2021, the Company generated $0.2 million of adjusted EBITDA, compared to adjusted EBITDA of $0.5 million in the prior year period.

 

 

For the three months ended

 

For the six months ended

(Dollars in thousands)

 

June 30, 2021

 

June 30, 2020

 

Change (%)

 

June 30, 2021

 

June 30, 2020

 

Change (%)

Net (loss) income

 

$

(719

)

 

$

3,759

 

119.1

%

 

$

(3,016

)

 

$

(780

)

 

(286.7

)%

Basic and diluted net (loss) income per common share

 

$

(0.04

)

 

$

0.20

 

120.0

%

 

$

(0.16

)

 

$

(0.04

)

 

(300.0

)%

Adjusted EBITDA

 

$

(69

)

 

$

2,997

 

102.3

%

 

$

237

 

 

$

514

 

 

53.9

%

Financial Outlook:

The Company is reiterating the guidance for fiscal 2021 as provided when it reported its first quarter 2021 results as follows:

(Unaudited and in millions)

 

Current Guidance

Full Year 2021

Revenue

 

 

 

 

Wireless

 

$

77.0

 

to

$

81.0

 

Software

 

$

61.0

 

 

$

70.0

 

Total Revenue

 

$

138.0

 

 

$

151.0

 

 

 

 

 

 

Adjusted Operating Expenses

 

$

151.0

 

 

$

157.0

 

 

 

 

 

 

Capital Expenditures

 

$

3.5

 

 

$

5.5

 

"We are confident in our performance for the second half of 2021, which is reinforced by the fact that we are reiterating the guidance we provided last quarter," said Michael W. Wallace, chief operating officer and chief financial officer. "Disciplined expense management continues to be a key focus, as we further align expense levels with market demand for our products. In the second quarter of 2021, both operating expenses and adjusted operating expenses were down sequentially, with improvements in many expense categories over that period. Spok's balance sheet remains strong, as the cash, cash equivalents and short-term investments balance was $68.1 million at June 30, 2021, and we are still operating with no debt."

2021 Annual Stockholders Meeting:

The Company had previously announced the results of its 2021 Annual Meeting of Stockholders. At that meeting, each of the 10 nominees to the Company's board of directors were elected for one-year terms, and the stockholders ratified the appointment of Grant Thornton LLP as the Company's independent auditor for the year ending December 31, 2021 and approved, in an advisory vote, the compensation of Spok's named executive officers, as described in the 2021 proxy statement.

Final voting results are disclosed in a current report on Form 8-K filed with the SEC.

2021 Investor Day Program:

As previously disclosed, Spok also announced that it plans to host an investor day on October 11, 2021. The investor day program will feature presentations by management and will be run concurrently with Spok's annual user conference, Connect 21. Due to the recent uptick in COVID-19 cases across the nation related to the Delta variant, this year's investor day and Connect 21 conference will be held virtually. The Company will provide more details in the future.

2021 Second Quarter Call and Replay:

Spok plans to host a conference call for investors to discuss its 2021 second quarter results on Thursday, July 29, 2021 at 10:00 a.m. ET. Dial-in numbers for the call are 1 334-323-0501 or 800-353-6461. The confirmation code for the call is 1286071. A replay of the call will be available from 1:00 p.m. ET on July 29, 2021 until 1:00 p.m. ET on Thursday, August 12, 2021. To listen to the replay, please register at http://tinyurl.com/Spok2021Q2earningsreplay. Please cut and paste this address into your browser, enter the registration information, and you will be given access to the replay.

About Spok

Spok, Inc., a wholly owned subsidiary of Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in Alexandria, Virginia, is proud to be a global leader in healthcare communications. We deliver clinical information to care teams when and where it matters most to improve patient outcomes. Top hospitals rely on the Spok Go® and Spok Care Connect® platforms to enhance workflows for clinicians and support administrative compliance. Our customers send over 100 million messages each month through their Spok® solutions. When seconds count and patients' lives are at stake, Spok enables smarter, faster clinical communication. For more information, visit spok.com or follow @spoktweets on Twitter.

Spok is a trademark of Spok Holdings, Inc. Spok Go and Spok Care Connect are trademarks of Spok, Inc.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: adjusted operating expenses and adjusted EBITDA. Adjusted operating expenses excludes depreciation, amortization and accretion and includes capitalized software development costs. Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax expense/benefit, depreciation, amortization and accretion expense and stock-based compensation expense, and includes capitalized software development costs.

We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Spok's financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures permit us to more thoroughly analyze key financial metrics used to make operational decisions and allow us to assess our core operating results. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies who present similar non-GAAP financial measures. We adjust for certain items because we do not regard these costs as reflective of normal costs related to the ongoing operation of the business in the ordinary course. In general, these items possess one or more of the following characteristics; non-cash expenses, factors outside of our control, items that are non-operational in nature, and unusual items not expected to occur in the normal course of business.

We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.

Safe Harbor Statement under the Private Securities Litigation Reform Act

Statements contained herein or in prior press releases which are not historical fact, such as statements regarding Spok's future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause Spok's actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, risks related to the COVID-19 pandemic and its effect on our business and the economy, other economic conditions such as recessionary economic cycles, higher interest rates, inflation and higher levels of unemployment, our ability to effectively develop, introduce and deploy our integrated communications platform and collaboration platform, Spok Go, declining demand for paging products and services, continued demand for our software products and services, our dependence on the U.S. healthcare industry, our ability to develop additional software solutions for our customers and manage our development as a global organization, the ability to manage operating expenses, particularly third-party consulting services and research and development costs, future capital needs, competitive pricing pressures, competition from traditional paging services, other wireless communications services and other software providers, many of which are substantially larger and have much greater financial and human capital resources, changes in customer purchasing priorities or capital expenditures, government regulation of our products and services and the healthcare and health insurance industries, reliance upon third-party providers for certain equipment and services, unauthorized breaches or failures in cybersecurity measures adopted by us and/or included in our products and services, the effects of changes in accounting policies or practices, our ability to realize the benefits associated with our deferred tax assets, and future impairments of our long-lived assets, amortizable intangible assets and goodwill, as well as other risks described from time to time in our periodic reports and other filings with the Securities and Exchange Commission. Although Spok believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Spok disclaims any intent or obligation to update any forward-looking statements.

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)

(Unaudited and in thousands except share, per share amounts and ARPU)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the six months ended

 

 

6/30/2021

 

6/30/2020

 

6/30/2021

 

6/30/2020

Revenue:

 

 

 

 

 

 

 

 

Wireless

 

$

19,859

 

 

$

21,078

 

 

$

39,979

 

 

$

42,465

 

Software

 

 

15,864

 

 

 

14,661

 

 

 

31,780

 

 

 

30,541

 

Total revenue

 

 

35,723

 

 

 

35,739

 

 

 

71,759

 

 

 

73,006

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenue

 

 

6,973

 

 

 

5,901

 

 

 

14,214

 

 

 

14,165

 

Research and development

 

 

4,278

 

 

 

2,754

 

 

 

8,784

 

 

 

8,203

 

Technology operations

 

 

7,087

 

 

 

7,212

 

 

 

14,339

 

 

 

15,115

 

Selling and marketing

 

 

4,980

 

 

 

3,831

 

 

 

9,880

 

 

 

10,192

 

General and administrative

 

 

11,557

 

 

 

10,810

 

 

 

22,707

 

 

 

22,061

 

Depreciation, amortization and accretion

 

 

2,457

 

 

 

2,072

 

 

 

5,184

 

 

 

4,218

 

Total operating expenses

 

 

37,332

 

 

 

32,580

 

 

 

75,108

 

 

 

73,954

 

% of total revenue

 

 

104.5

%

 

 

91.2

%

 

 

104.7

%

 

 

101.3

%

Operating (loss) income

 

 

(1,609

)

 

 

3,159

 

 

 

(3,349

)

 

 

(948

)

% of total revenue

 

 

(4.5

)%

 

 

8.8

%

 

 

(4.7

)%

 

 

(1.3

)%

Interest income

 

 

61

 

 

 

146

 

 

 

122

 

 

 

509

 

Other income (expense)

 

 

29

 

 

 

101

 

 

 

2

 

 

 

(37

)

(Loss) income before income taxes

 

 

(1,519

)

 

 

3,406

 

 

 

(3,225

)

 

 

(476

)

Benefit from (provision for) income taxes

 

 

800

 

 

 

353

 

 

 

209

 

 

 

(304

)

Net (loss) income

 

$

(719

)

 

$

3,759

 

 

$

(3,016

)

 

$

(780

)

Basic and diluted net (loss) income per common share

 

$

(0.04

)

 

$

0.20

 

 

$

(0.16

)

 

$

(0.04

)

Basic weighted average common shares outstanding

 

 

19,395,364

 

 

 

19,016,853

 

 

 

19,335,081

 

 

 

18,987,469

 

Diluted weighted average common shares outstanding

 

 

19,395,364

 

 

 

19,115,148

 

 

 

19,335,081

 

 

 

18,987,469

 

Cash dividends declared per common share

 

 

0.125

 

 

 

0.125

 

 

 

0.25

 

 

 

0.25

 

Key statistics:

 

 

 

 

 

 

 

 

Units in service

 

 

869

 

 

 

915

 

 

 

869

 

 

 

915

 

Average revenue per unit (ARPU)

 

$

7.32

 

 

$

7.24

 

 

$

7.31

 

 

$

7.27

 

Bookings

 

$

13,037

 

 

$

15,411

 

 

$

27,634

 

 

$

31,050

 

Backlog

 

$

45,632

 

 

$

48,441

 

 

$

45,632

 

 

$

48,441

 

 

 

 

 

 

 

 

 

 

(a) Slight variations in totals are due to rounding.

 

 

 

 

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)

(Unaudited and in thousands except share, per share amounts and ARPU)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

6/30/2021

 

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless

 

$

19,859

 

 

$

20,120

 

 

$

20,300

 

 

$

20,828

 

 

$

21,078

 

 

$

21,386

 

 

$

21,615

 

 

$

21,814

 

Software

 

 

15,864

 

 

 

15,916

 

 

 

17,180

 

 

 

16,865

 

 

 

14,661

 

 

 

15,881

 

 

 

17,933

 

 

 

17,639

 

Total revenue

 

 

35,723

 

 

 

36,036

 

 

 

37,480

 

 

 

37,693

 

 

 

35,739

 

 

 

37,267

 

 

 

39,548

 

 

 

39,453

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

6,973

 

 

 

7,241

 

 

 

7,833

 

 

 

6,544

 

 

 

5,901

 

 

 

8,264

 

 

 

8,051

 

 

 

7,190

 

Research and development

 

 

4,278

 

 

 

4,506

 

 

 

4,166

 

 

 

3,459

 

 

 

2,754

 

 

 

5,449

 

 

 

7,132

 

 

 

7,437

 

Technology operations

 

 

7,087

 

 

 

7,252

 

 

 

7,371

 

 

 

7,357

 

 

 

7,212

 

 

 

7,904

 

 

 

8,083

 

 

 

7,805

 

Selling and marketing

 

 

4,980

 

 

 

4,900

 

 

 

5,004

 

 

 

4,272

 

 

 

3,831

 

 

 

6,361

 

 

 

5,891

 

 

 

5,595

 

General and administrative

 

 

11,557

 

 

 

11,150

 

 

 

10,046

 

 

 

10,994

 

 

 

10,810

 

 

 

11,251

 

 

 

11,531

 

 

 

11,813

 

Depreciation, amortization and accretion

 

 

2,457

 

 

 

2,727

 

 

 

2,503

 

 

 

2,335

 

 

 

2,072

 

 

 

2,146

 

 

 

2,250

 

 

 

2,305

 

Goodwill impairment

 

 

?

 

 

 

?

 

 

 

25,007

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

8,849

 

 

 

?

 

Total operating expenses

 

 

37,332

 

 

 

37,776

 

 

 

61,930

 

 

 

34,961

 

 

 

32,580

 

 

 

41,375

 

 

 

51,787

 

 

 

42,145

 

% of total revenue

 

 

104.5

%

 

 

104.8

%

 

 

165.2

%

 

 

92.8

%

 

 

91.2

%

 

 

111.0

%

 

 

130.9

%

 

 

106.8

%

Operating (loss) income

 

 

(1,609

)

 

 

(1,740

)

 

 

(24,450

)

 

 

2,732

 

 

 

3,159

 

 

 

(4,108

)

 

 

(12,239

)

 

 

(2,692

)

% of total revenue

 

 

(4.5

)%

 

 

(4.8

)%

 

 

(65.2

)%

 

 

7.2

%

 

 

8.8

%

 

 

(11.0

)%

 

 

(30.9

)%

 

 

(6.8

)%

Interest income

 

 

61

 

 

 

61

 

 

 

51

 

 

 

127

 

 

 

146

 

 

 

363

 

 

 

350

 

 

 

399

 

Other income (expense)

 

 

29

 

 

 

(27

)

 

 

95

 

 

 

151

 

 

 

101

 

 

 

(137

)

 

 

206

 

 

 

163

 

(Loss) income before income taxes

 

 

(1,519

)

 

 

(1,706

)

 

 

(24,304

)

 

 

3,010

 

 

 

3,406

 

 

 

(3,882

)

 

 

(11,683

)

 

 

(2,130

)

Benefit from (provision for) income taxes

 

 

800

 

 

 

(591

)

 

 

(22,306

)

 

 

155

 

 

 

353

 

 

 

(657

)

 

 

2,172

 

 

 

804

 

Net (loss) income

 

$

(719

)

 

$

(2,297

)

 

$

(46,610

)

 

$

3,165

 

 

$

3,759

 

 

$

(4,539

)

 

$

(9,511

)

 

$

(1,326

)

Basic net (loss) income per common share

 

$

(0.04

)

 

$

(0.12

)

 

$

(2.44

)

 

$

0.17

 

 

$

0.20

 

 

$

(0.24

)

 

$

(0.50

)

 

$

(0.07

)

Diluted net (loss) income per common share

 

 

(0.04

)

 

 

(0.12

)

 

 

(2.44

)

 

 

0.16

 

 

 

0.20

 

 

 

(0.24

)

 

 

(0.50

)

 

 

(0.07

)

Basic weighted average common shares outstanding

 

 

19,395,364

 

 

 

19,272,786

 

 

 

19,088,329

 

 

 

19,051,502

 

 

 

19,016,853

 

 

 

18,958,716

 

 

 

18,860,020

 

 

 

19,086,811

 

Diluted weighted average common shares outstanding

 

 

19,395,364

 

 

 

19,272,786

 

 

 

19,088,329

 

 

 

19,208,452

 

 

 

19,115,148

 

 

 

18,958,716

 

 

 

18,860,020

 

 

 

19,086,811

 

Key statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units in service

 

 

869

 

 

 

874

 

 

 

885

 

 

 

898

 

 

 

915

 

 

 

926

 

 

 

938

 

 

 

955

 

Average revenue per unit (ARPU)

 

$

7.32

 

 

$

7.34

 

 

$

7.30

 

 

$

7.34

 

 

$

7.24

 

 

$

7.31

 

 

$

7.33

 

 

$

7.32

 

Bookings

 

$

13,037

 

 

$

14,597

 

 

$

16,528

 

 

$

21,414

 

 

$

15,411

 

 

$

15,639

 

 

$

21,932

 

 

$

20,421

 

Backlog

 

$

45,632

 

 

$

48,849

 

 

$

50,504

 

 

$

51,708

 

 

$

48,441

 

 

$

49,052

 

 

$

50,553

 

 

$

42,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Slight variations in totals are due to rounding.

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (a)

(In thousands)

 

 

 

 

 

 

 

6/30/2021

 

12/31/2020

 

 

 

 

 

ASSETS

 

Unaudited

 

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

38,127

 

 

$

48,729

 

Short term investments

 

 

29,998

 

 

 

29,995

 

Accounts receivable, net

 

 

27,483

 

 

 

29,934

 

Prepaid expenses

 

 

8,369

 

 

 

8,958

 

Other current assets

 

 

1,197

 

 

 

1,269

 

Total current assets

 

 

105,174

 

 

 

118,885

 

Non-current assets:

 

 

 

 

Property and equipment, net

 

 

7,861

 

 

 

7,815

 

Operating lease right-of-use assets

 

 

16,769

 

 

 

14,016

 

Capitalized software development, net

 

 

13,499

 

 

 

10,179

 

Goodwill

 

 

99,175

 

 

 

99,175

 

Intangible assets, net

 

 

?

 

 

 

417

 

Deferred income tax assets, net

 

 

25,969

 

 

 

25,826

 

Other non-current assets

 

 

792

 

 

 

978

 

Total non-current assets

 

 

164,065

 

 

 

158,406

 

Total assets

 

$

269,239

 

 

$

277,291

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

4,166

 

 

$

6,685

 

Accrued compensation and benefits

 

 

12,621

 

 

 

14,103

 

Deferred revenue

 

 

25,598

 

 

 

27,686

 

Operating lease liabilities

 

 

5,825

 

 

 

5,264

 

Other current liabilities

 

 

4,305

 

 

 

3,702

 

Total current liabilities

 

 

52,515

 

 

 

57,440

 

Non-current liabilities:

 

 

 

 

Asset retirement obligations

 

 

7,465

 

 

 

7,289

 

Operating lease liabilities

 

 

12,211

 

 

 

9,456

 

Other non-current liabilities

 

 

2,044

 

 

 

2,493

 

Total non-current liabilities

 

 

21,720

 

 

 

19,238

 

Total liabilities

 

 

74,235

 

 

 

76,678

 

Commitments and contingencies

 

 

 

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

$

?

 

 

$

?

 

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

94,276

 

 

 

91,780

 

Accumulated other comprehensive loss

 

 

(1,435

)

 

 

(1,452

)

Retained earnings

 

 

102,161

 

 

 

110,283

 

Total stockholders' equity

 

 

195,004

 

 

 

200,613

 

Total liabilities and stockholders' equity

 

$

269,239

 

 

$

277,291

 

 

 

 

 

 

(a) Slight variations in totals are due to rounding.

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)

(Unaudited and in thousands)

 

 

 

 

 

 

 

For the six months ended

 

 

6/30/2021

 

6/30/2020

Operating activities:

 

 

 

 

Net loss

 

$

(3,016

)

 

$

(780

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

Depreciation, amortization and accretion

 

 

5,184

 

 

 

4,218

 

Deferred income tax (benefit) expense

 

 

(291

)

 

 

290

 

Stock-based compensation

 

 

4,020

 

 

 

2,544

 

Provisions for doubtful accounts, service credits and other

 

 

657

 

 

 

673

 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

1,775

 

 

 

(670

)

Prepaid expenses and other assets

 

 

994

 

 

 

475

 

Net operating lease liabilities

 

 

563

 

 

 

(60

)

Accounts payable, accrued liabilities and other

 

 

(3,538

)

 

 

1,142

 

Deferred revenue

 

 

(2,482

)

 

 

(1,373

)

Net cash provided by operating activities

 

 

3,866

 

 

 

6,459

 

Investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(2,198

)

 

 

(1,895

)

Capitalized software development

 

 

(5,618

)

 

 

(5,300

)

Purchase of short-term investments

 

 

(29,993

)

 

 

(29,877

)

Maturity of short-term investments

 

 

30,000

 

 

 

30,000

 

Net cash used in investing activities

 

 

(7,809

)

 

 

(7,072

)

Financing activities:

 

 

 

 

Cash distributions to stockholders

 

 

(5,152

)

 

 

(5,008

)

Proceeds from issuance of common stock under the Employee Stock Purchase Plan

 

 

132

 

 

 

166

 

Purchase of common stock for tax withholding on vested equity awards

 

 

(1,656

)

 

 

(903

)

Net cash used in financing activities

 

 

(6,676

)

 

 

(5,745

)

Effect of exchange rate on cash

 

 

17

 

 

 

(117

)

Net decrease in cash and cash equivalents

 

 

(10,602

)

 

 

(6,475

)

Cash and cash equivalents, beginning of period

 

 

48,729

 

 

 

47,361

 

Cash and cash equivalents, end of period

 

$

38,127

 

 

$

40,886

 

Supplemental disclosure:

 

 

 

 

Income taxes (refunds received) paid

 

$

(42

)

 

$

148

 

 

 

 

 

 

(a) Slight variations in totals are due to rounding.

SPOK HOLDINGS, INC.

CONSOLIDATED REVENUE

SUPPLEMENTAL INFORMATION (a)

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

6/30/2021

 

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paging

 

$

19,135

 

 

$

19,353

 

 

$

19,513

 

 

$

19,961

 

 

$

19,990

 

 

$

20,451

 

 

$

20,826

 

 

$

21,212

 

Non-paging

 

$

724

 

 

$

767

 

 

$

787

 

 

$

867

 

 

$

1,088

 

 

$

935

 

 

$

789

 

 

$

602

 

Total wireless revenue

 

$

19,859

 

 

$

20,120

 

 

$

20,300

 

 

$

20,828

 

 

$

21,078

 

 

$

21,386

 

 

$

21,615

 

 

$

21,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

License

 

$

818

 

 

$

1,507

 

 

$

1,486

 

 

$

1,988

 

 

$

749

 

 

$

955

 

 

$

1,711

 

 

$

2,723

 

Services

 

$

4,865

 

 

$

4,354

 

 

$

4,778

 

 

$

4,772

 

 

$

3,812

 

 

$

4,549

 

 

$

4,947

 

 

$

4,202

 

Equipment

 

$

482

 

 

$

616

 

 

$

961

 

 

$

554

 

 

$

601

 

 

$

725

 

 

$

1,125

 

 

$

689

 

Subscription

 

$

90

 

 

$

45

 

 

$

42

 

 

$

24

 

 

$

?

 

 

$

?

 

 

$

?

 

 

$

?

 

Operations revenue

 

$

6,255

 

 

$

6,522

 

 

$

7,267

 

 

$

7,338

 

 

$

5,162

 

 

$

6,229

 

 

$

7,783

 

 

$

7,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maintenance revenue

 

$

9,609

 

 

$

9,394

 

 

$

9,913

 

 

$

9,527

 

 

$

9,499

 

 

$

9,652

 

 

$

10,150

 

 

$

10,025

 

Total software revenue

 

$

15,864

 

 

$

15,916

 

 

$

17,180

 

 

$

16,865

 

 

$

14,661

 

 

$

15,881

 

 

$

17,933

 

 

$

17,639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

35,723

 

 

$

36,036

 

 

$

37,480

 

 

$

37,693

 

 

$

35,739

 

 

$

37,267

 

 

$

39,548

 

 

$

39,453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Slight variations in totals are due to rounding.

SPOK HOLDINGS, INC.

CONSOLIDATED OPERATING EXPENSES

SUPPLEMENTAL INFORMATION (a)

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

6/30/2021

 

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll and related

 

$

4,920

 

 

$

5,369

 

 

$

5,447

 

 

$

4,941

 

 

$

4,350

 

 

$

5,785

 

 

$

5,222

 

$

5,099

Cost of sales

 

 

1,427

 

 

 

1,251

 

 

 

1,740

 

 

 

1,064

 

 

 

1,098

 

 

 

1,940

 

 

 

2,278

 

 

1,567

Stock-based compensation

 

 

285

 

 

 

322

 

 

 

136

 

 

 

148

 

 

 

134

 

 

 

119

 

 

 

42

 

 

21

Other

 

 

341

 

 

 

299

 

 

 

510

 

 

 

391

 

 

 

319

 

 

 

420

 

 

 

509

 

 

503

Total cost of revenue

 

 

6,973

 

 

 

7,241

 

 

 

7,833

 

 

 

6,544

 

 

 

5,901

 

 

 

8,264

 

 

 

8,051

 

 

7,190

Research and development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll and related

 

 

4,333

 

 

 

4,475

 

 

 

4,358

 

 

 

4,147

 

 

 

4,115

 

 

 

4,761

 

 

 

5,056

 

 

5,083

Outside services

 

 

2,060

 

 

 

2,277

 

 

 

2,358

 

 

 

2,113

 

 

 

1,803

 

 

 

1,584

 

 

 

1,742

 

 

2,027

Capitalized software development

 

 

(2,698

)

 

 

(2,920

)

 

 

(3,046

)

 

 

(2,906

)

 

 

(3,596

)

 

 

(1,705

)

 

 

?

 

 

?

Stock-based compensation

 

 

305

 

 

 

475

 

 

 

246

 

 

 

240

 

 

 

243

 

 

 

236

 

 

 

113

 

 

102

Other

 

 

278

 

 

 

199

 

 

 

250

 

 

 

(135

)

 

 

189

 

 

 

573

 

 

 

221

 

 

225

Total research and development

 

 

4,278

 

 

 

4,506

 

 

 

4,166

 

 

 

3,459

 

 

 

2,754

 

 

 

5,449

 

 

 

7,132

 

 

7,437

Technology operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll and related

 

 

2,323

 

 

 

2,467

 

 

 

2,467

 

 

 

2,246

 

 

 

2,213

 

 

 

2,712

 

 

 

2,656

 

 

2,823

Site rent

 

 

3,143

 

 

 

3,196

 

 

 

3,313

 

 

 

3,467

 

 

 

3,399

 

 

 

3,398

 

 

 

3,669

 

 

3,269

Telecommunications

 

 

825

 

 

 

837

 

 

 

857

 

 

 

949

 

 

 

961

 

 

 

1,001

 

 

 

1,026

 

 

1,016

Stock-based compensation

 

 

131

 

 

 

137

 

 

 

48

 

 

 

52

 

 

 

47

 

 

 

43

 

 

 

32

 

 

30

Other

 

 

665

 

 

 

615

 

 

 

686

 

 

 

643

 

 

 

592

 

 

 

750

 

 

 

700

 

 

667

Total technology operations

 

 

7,087

 

 

 

7,252

 

 

 

7,371

 

 

 

7,357

 

 

 

7,212

 

 

 

7,904

 

 

 

8,083

 

 

7,805

Selling and marketing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll and related

 

 

3,161

 

 

 

3,135

 

 

 

2,912

 

 

 

2,773

 

 

 

2,538

 

 

 

3,583

 

 

 

3,382

 

 

3,524

Commissions

 

 

1,244

 

 

 

1,105

 

 

 

1,178

 

 

 

1,059

 

 

 

852

 

 

 

1,212

 

 

 

1,158

 

 

1,114

Stock-based compensation

 

 

254

 

 

 

319

 

 

 

192

 

 

 

208

 

 

 

194

 

 

 

172

 

 

 

164

 

 

137

Advertising and events

 

 

247

 

 

 

161

 

 

 

539

 

 

 

151

 

 

 

160

 

 

 

784

 

 

 

1,034

 

 

703

Other

 

 

74

 

 

 

180

 

 

 

183

 

 

 

81

 

 

 

87

 

 

 

610

 

 

 

153

 

 

117

Total selling and marketing

 

 

4,980

 

 

 

4,900

 

 

 

5,004

 

 

 

4,272

 

 

 

3,831

 

 

 

6,361

 

 

 

5,891

 

 

5,595

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payroll and related

 

 

3,564

 

 

 

3,818

 

 

 

3,373

 

 

 

3,476

 

 

 

3,355

 

 

 

4,134

 

 

 

3,974

 

 

4,220

Stock-based compensation

 

 

806

 

 

 

986

 

 

 

726

 

 

 

968

 

 

 

744

 

 

 

612

 

 

 

770

 

 

674

Facility rent, office, and technology costs

 

 

2,484

 

 

 

2,480

 

 

 

2,412

 

 

 

178

 

 

 

628

 

 

 

43

 

 

 

56

 

 

402

Outside services

 

 

2,219

 

 

 

1,825

 

 

 

1,584

 

 

 

2,259

 

 

 

2,276

 

 

 

2,068

 

 

 

1,952

 

 

2,369

Taxes, licenses and permits

 

 

1,117

 

 

 

1,081

 

 

 

484

 

 

 

2,148

 

 

 

2,043

 

 

 

2,036

 

 

 

2,350

 

 

2,004

Bad debt

 

 

328

 

 

 

106

 

 

 

202

 

 

 

994

 

 

 

804

 

 

 

859

 

 

 

1,000

 

 

888

Other

 

 

1,039

 

 

 

854

 

 

 

1,265

 

 

 

971

 

 

 

960

 

 

 

1,499

 

 

 

1,429

 

 

1,256

Total general and administrative

 

 

11,557

 

 

 

11,150

 

 

 

10,046

 

 

 

10,994

 

 

 

10,810

 

 

 

11,251

 

 

 

11,531

 

 

11,813

Depreciation, amortization and accretion

 

 

2,457

 

 

 

2,727

 

 

 

2,503

 

 

 

2,335

 

 

 

2,072

 

 

 

2,146

 

 

 

2,250

 

 

2,305

Goodwill impairment

 

 

?

 

 

 

?

 

 

 

25,007

 

 

 

?

 

 

 

?

 

 

 

?

 

 

 

8,849

 

 

?

Operating expenses

 

$

37,332

 

 

$

37,776

 

 

$

61,930

 

 

$

34,961

 

 

$

32,580

 

 

$

41,375

 

 

$

51,787

 

$

42,145

Capital expenditures

 

$

1,480

 

 

$

727

 

 

$

638

 

 

$

934

 

 

$

846

 

 

$

1,063

 

 

$

679

 

$

1,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Slight variations in totals are due to rounding.

SPOK HOLDINGS, INC.

UNITS IN SERVICE ACTIVITY, MARKET SEGMENT, CHURN

AND AVERAGE REVENUE PER UNIT (ARPU) (a)

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

6/30/2021

 

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

Paging units in service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning units in service (000's)

 

 

874

 

 

 

885

 

 

 

898

 

 

 

915

 

 

 

926

 

 

 

938

 

 

 

955

 

 

 

977

 

Gross placements

 

 

31

 

 

 

20

 

 

 

20

 

 

 

25

 

 

 

35

 

 

 

24

 

 

 

22

 

 

 

28

 

Gross disconnects

 

 

(36

)

 

 

(31

)

 

 

(33

)

 

 

(42

)

 

 

(46

)

 

 

(36

)

 

 

(39

)

 

 

(50

)

Net change

 

 

(5

)

 

 

(11

)

 

 

(13

)

 

 

(17

)

 

 

(11

)

 

 

(12

)

 

 

(17

)

 

 

(22

)

Ending units in service

 

 

869

 

 

 

874

 

 

 

885

 

 

 

898

 

 

 

915

 

 

 

926

 

 

 

938

 

 

 

955

 

End of period units in service % of total (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare

 

 

84.5

%

 

 

84.1

%

 

 

83.6

%

 

 

83.7

%

 

 

83.6

%

 

 

82.6

%

 

 

82.4

%

 

 

81.7

%

Government

 

 

4.9

%

 

 

4.8

%

 

 

5.3

%

 

 

5.3

%

 

 

5.5

%

 

 

5.4

%

 

 

5.4

%

 

 

5.5

%

Large enterprise

 

 

4.1

%

 

 

4.3

%

 

 

4.3

%

 

 

4.3

%

 

 

4.4

%

 

 

5.5

%

 

 

5.5

%

 

 

6.1

%

Other(b)

 

 

6.4

%

 

 

6.8

%

 

 

6.8

%

 

 

6.6

%

 

 

6.6

%

 

 

6.5

%

 

 

6.6

%

 

 

6.7

%

Total

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

Account size ending units in service (000's)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

 

58

 

 

 

59

 

 

 

61

 

 

 

63

 

 

 

65

 

 

 

67

 

 

 

69

 

 

 

72

 

101 to 1,000 units

 

 

155

 

 

 

163

 

 

 

167

 

 

 

167

 

 

 

165

 

 

 

171

 

 

 

173

 

 

 

175

 

>1,000 units

 

 

656

 

 

 

652

 

 

 

657

 

 

 

668

 

 

 

685

 

 

 

688

 

 

 

696

 

 

 

708

 

Total

 

 

869

 

 

 

874

 

 

 

885

 

 

 

898

 

 

 

915

 

 

 

926

 

 

 

938

 

 

 

955

 

Account size net loss rate(c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

 

(1.7

)%

 

 

(3.3

)%

 

 

(3.2

)%

 

 

(2.9

)%

 

 

(3.1

)%

 

 

(3.0

)%

 

 

(3.8

)%

 

 

(2.1

)%

101 to 1,000 units

 

 

(4.9

)%

 

 

(2.4

)%

 

 

?

%

 

 

1.5

%

 

 

(4.2

)%

 

 

(1.0

)%

 

 

(1.0

)%

 

 

(2.4

)%

>1,000 units

 

 

0.6

%

 

 

(0.8

)%

 

 

(1.6

)%

 

 

(2.5

)%

 

 

(0.4

)%

 

 

(1.2

)%

 

 

(1.8

)%

 

 

(2.2

)%

Total

 

 

(0.6

)%

 

 

(1.2

)%

 

 

(1.4

)%

 

 

(1.9

)%

 

 

(1.3

)%

 

 

(1.3

)%

 

 

(1.8

)%

 

 

(2.2

)%

Account size ARPU

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

$

11.69

 

 

$

11.72

 

 

$

11.62

 

 

$

11.80

 

 

$

11.65

 

 

$

12.01

 

 

$

11.99

 

 

$

11.84

 

101 to 1,000 units

 

 

8.35

 

 

 

8.33

 

 

 

8.35

 

 

 

8.37

 

 

 

8.24

 

 

 

8.34

 

 

 

8.31

 

 

 

8.41

 

>1,000 units

 

 

6.68

 

 

 

6.68

 

 

 

6.62

 

 

 

6.67

 

 

 

6.57

 

 

 

6.59

 

 

 

6.62

 

 

 

6.59

 

Total

 

$

7.32

 

 

$

7.34

 

 

$

7.30

 

 

$

7.34

 

 

$

7.24

 

 

$

7.31

 

 

$

7.33

 

 

$

7.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Slight variations in totals are due to rounding.

(b) Other includes hospitality, resort and indirect units

(c) Net loss rate is net current period placements and disconnected units in service divided by prior period ending units in service.

SPOK HOLDINGS, INC.

RECONCILIATION OF NET (LOSS) INCOME TO EBITDA (a)

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the six months ended

 

 

6/30/2021

 

6/30/2020

 

6/30/2021

 

6/30/2020

Net (loss) income

 

$

(719

)

 

$

3,759

 

 

$

(3,016

)

 

$

(780

)

Add back:

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

 

(800

)

 

 

(353

)

 

 

(209

)

 

 

304

 

Other (income) expenses

 

 

(29

)

 

 

(101

)

 

 

(2

)

 

 

37

 

Interest income

 

 

(61

)

 

 

(146

)

 

 

(122

)

 

 

(509

)

Operating (loss) income

 

 

(1,609

)

 

 

3,159

 

 

 

(3,349

)

 

 

(948

)

Depreciation, amortization and accretion

 

 

2,457

 

 

 

2,072

 

 

 

5,184

 

 

 

4,218

 

EBITDA

 

$

848

 

 

$

5,231

 

 

$

1,835

 

 

$

3,270

 

Capitalized software development costs

 

 

(2,698

)

 

 

(3,596

)

 

 

(5,618

)

 

 

(5,300

)

Stock-based compensation

 

 

1,781

 

 

 

1,362

 

 

 

4,020

 

 

 

2,544

 

Adjusted EBITDA

 

$

(69

)

 

$

2,997

 

 

$

237

 

 

$

514

 

 

(a) Slight variations in totals are due to rounding.

RECONCILIATION OF OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES (a)

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the six months ended

 

 

6/30/2021

 

6/30/2020

 

6/30/2021

 

6/30/2020

Operating expenses

 

$

37,332

 

 

$

32,580

 

 

$

75,108

 

 

$

73,954

 

Add back:

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion

 

 

(2,457

)

 

 

(2,072

)

 

 

(5,184

)

 

 

(4,218

)

Capitalized software development costs

 

 

2,698

 

 

 

3,596

 

 

 

5,618

 

 

 

5,300

 

Adjusted operating expenses

 

$

37,573

 

 

$

34,104

 

 

$

75,542

 

 

$

75,036

 

 

(a) Slight variations in totals are due to rounding.

(Unaudited and in millions)

 

 

 

 

 

 

 

 

 

Current Guidance

 

 

 

Full Year 2021

Operating expenses

 

 

$

149.7

 

to

$

155.7

 

Add back:

 

 

 

 

 

Depreciation, amortization and accretion

 

 

 

(10.2

)

 

 

(10.2

)

Capitalized software development costs

 

 

 

11.5

 

 

 

11.5

 

Adjusted operating expenses

 

 

$

151.0

 

 

$

157.0

 

 


These press releases may also interest you

at 00:30
Frost & Sullivan recently researched the data center colocation services industry and, based on its findings, recognizes STT GDC India with the 2023 Indian Company of the Year Award. STT GDC India is a pioneer data center solutions provider that...

at 00:25
Shanghai Junshi Biosciences Co., Ltd ("Junshi Biosciences," HKEX: 1877; SSE: 688180), a leading innovation-driven biopharmaceutical company dedicated to the discovery, development, and commercialization of novel therapies, announced its financial...

at 00:24
In the news release, Roborock Reports 2023 Full Year Financial Results, issued 28-Mar-2024 by Roborock over PR Newswire, we are advised by the company that in the first bullet point of "Growth across Product Categories", the USD amount should read...

28 mar 2024
The opening ceremony of the Boao Forum for Asia (BFA) Annual Conference 2024 was held in Boao, south China's Hainan Province on Thursday, with China's top legislator Zhao Leji stressing China's economic potential, appealing to international investors...

28 mar 2024
OKX Ventures, the investment arm of leading Web3 technology company OKX, has issued updates for March 29, 2024. OKX Ventures...

28 mar 2024
Curio Legacy Ventures (Curio), a frontrunner in nuclear technology innovation, proudly announces a strategic partnership with Navarro Research and Engineering, Inc. (Navarro). This collaboration signals a significant step forward in advancing nuclear...



News published on and distributed by: