Spok Reports Second Quarter 2024 Results
Spok Holdings (NASDAQ: SPOK) reported their Q2 2024 financial results. Key highlights include software operations bookings rising 10.3% from Q1 2024 to $8.7 million. The software backlog reached $55 million, a 4% increase year-over-year. Wireless ARPU increased to $7.84. However, total revenue decreased by 6.8% to $33.98 million. Net income declined to $3.43 million, a 27.6% drop from the previous year. Adjusted EBITDA fell 17.2% to $7.05 million. The company reaffirmed its FY 2024 guidance, projecting total revenue between $136 million and $144 million and adjusted EBITDA between $27.5 million and $32.5 million. A quarterly dividend of $0.3125 per share was declared, payable on September 9, 2024.
Spok Holdings (NASDAQ: SPOK) ha riportato i risultati finanziari del secondo trimestre 2024. Tra i punti salienti, gli ordini delle operazioni software sono aumentati del 10,3% rispetto al primo trimestre 2024, raggiungendo i 8,7 milioni di dollari. L'arretrato del software ha raggiunto i 55 milioni di dollari, con un incremento del 4% rispetto all'anno precedente. L'ARPU wireless è aumentato a 7,84 dollari. Tuttavia, il fatturato totale è diminuito del 6,8%, scendendo a 33,98 milioni di dollari. Il reddito netto è calato a 3,43 milioni di dollari, con un abbassamento del 27,6% rispetto all'anno scorso. L'EBITDA rettificato è sceso del 17,2%, arrivando a 7,05 milioni di dollari. L'azienda ha confermato le previsioni per l'anno fiscale 2024, prevedendo un fatturato totale tra i 136 milioni e i 144 milioni di dollari e un EBITDA rettificato tra i 27,5 milioni e i 32,5 milioni di dollari. Un dividendo trimestrale di 0,3125 dollari per azione è stato dichiarato, pagabile il 9 settembre 2024.
Spok Holdings (NASDAQ: SPOK) informó sobre sus resultados financieros del segundo trimestre de 2024. Los aspectos más destacados incluyen un aumento del 10,3% en las reservas de operaciones de software desde el primer trimestre de 2024, alcanzando los 8,7 millones de dólares. El backlog de software llegó a 55 millones de dólares, un incremento del 4% interanual. El ARPU inalámbrico aumentó a 7,84 dólares. Sin embargo, los ingresos totales disminuyeron un 6,8%, alcanzando los 33,98 millones de dólares. La utilidad neta cayó a 3,43 millones de dólares, una caída del 27,6% en comparación con el año anterior. El EBITDA ajustado disminuyó un 17,2% a 7,05 millones de dólares. La compañía reafirmó su guía para el año fiscal 2024, proyectando ingresos totales entre 136 millones y 144 millones de dólares y un EBITDA ajustado entre 27,5 millones y 32,5 millones de dólares. Se declaró un dividendo trimestral de 0,3125 dólares por acción, que se pagará el 9 de septiembre de 2024.
스포크 홀딩스( NASDAQ: SPOK )가 2024년 2분기 재무 결과를 발표했습니다. 주요 하이라이트에는 소프트웨어 운영 주문이 2024년 1분기 대비 10.3% 증가하여 870만 달러에 이르렀습니다. 소프트웨어 백로그는 5500만 달러에 도달하여 전년 대비 4% 증가했습니다. 무선 ARPU는 7.84달러로 증가했습니다. 그러나 전체 수익은 6.8% 감소하여 3,398만 달러로 줄었습니다. 순이익은 343만 달러로 감소했으며, 이는 지난해보다 27.6% 줄어든 수치입니다. 조정된 EBITDA는 17.2% 감소하여 705만 달러에 이르렀습니다. 회사는 2024 회계연도 가이던스를 재확인하며, 총 수익이 1억 3,600만 달러에서 1억 4,400만 달러 사이, 조정된 EBITDA가 2,750만 달러에서 3,250만 달러 사이에 이를 것으로 예상하고 있습니다. 주당 0.3125달러의 분기 배당금이 선언 되었으며, 2024년 9월 9일에 지급될 예정입니다.
Spok Holdings (NASDAQ: SPOK) a annoncé ses résultats financiers pour le deuxième trimestre 2024. Parmi les principaux points, les réservations des opérations logicielles ont augmenté de 10,3 % par rapport au premier trimestre 2024, atteignant 8,7 millions de dollars. Le carnet de commandes des logiciels a atteint 55 millions de dollars, soit une augmentation de 4 % par rapport à l'année précédente. L'ARPU sans fil a augmenté à 7,84 dollars. Cependant, le chiffre d'affaires total a diminué de 6,8 % pour atteindre 33,98 millions de dollars. Le bénéfice net a chuté à 3,43 millions de dollars, une baisse de 27,6 % par rapport à l'année dernière. L'EBITDA ajusté a baissé de 17,2 % pour atteindre 7,05 millions de dollars. L'entreprise a réaffirmé ses prévisions pour l'exercice 2024, prévoyant un chiffre d'affaires total compris entre 136 millions et 144 millions de dollars et un EBITDA ajusté compris entre 27,5 millions et 32,5 millions de dollars. Un dividende trimestriel de 0,3125 dollar par action a été déclaré, payable le 9 septembre 2024.
Spok Holdings (NASDAQ: SPOK) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Zu den wichtigsten Punkten gehört ein Anstieg der Softwarebetriebsbuchungen um 10,3% gegenüber dem ersten Quartal 2024 auf 8,7 Millionen Dollar. Der Software-Rückstand erreichte 55 Millionen Dollar, ein Anstieg von 4% im Jahresvergleich. Der kabellose ARPU stieg auf 7,84 Dollar. Allerdings sank der Gesamterlös um 6,8% auf 33,98 Millionen Dollar. Der Nettogewinn fiel auf 3,43 Millionen Dollar, was einem Rückgang von 27,6% im Vergleich zum Vorjahr entspricht. Das bereinigte EBITDA fiel um 17,2% auf 7,05 Millionen Dollar. Das Unternehmen bestätigte seine Prognose für das Geschäftsjahr 2024 und geht von einem Gesamterlös zwischen 136 Millionen und 144 Millionen Dollar sowie einem bereinigten EBITDA zwischen 27,5 Millionen und 32,5 Millionen Dollar aus. Eine vierteljährliche Dividende von 0,3125 Dollar pro Aktie wurde erklärt, zahlbar am 9. September 2024.
- Software operations bookings up 10.3% from Q1 2024 to $8.7 million.
- Software backlog increased by 4% year-over-year to $55 million.
- Wireless ARPU increased to $7.84.
- Quarterly dividend of $0.3125 per share declared.
- Total revenue decreased by 6.8% to $33.98 million.
- Net income declined by 27.6% to $3.43 million.
- Adjusted EBITDA fell by 17.2% to $7.05 million.
- Cash and cash equivalents decreased by 22.6% to $23.88 million.
Insights
Spok's Q2 2024 results present a mixed picture. While software operations bookings increased 10.3% quarter-over-quarter to
The company's focus on maintaining cash flow and returning capital to shareholders is evident, with
Positively, the software backlog grew
Management's reiterated guidance for 2024, projecting total revenue between
Spok's Q2 results highlight the ongoing transition in the healthcare communications sector. The
The company's investment in R&D, totaling
The decline in hardware revenue (
While the wireless segment continues to decline, its slower pace of attrition (0.8% quarterly net unit churn) and increasing ARPU suggest effective management of this legacy business. This could provide a stable cash flow to fund innovation in the software segment.
Software Operations Bookings Up
Year-Over-Year Software Revenue Performance Driven by Growth in Maintenance and Services
Recent Highlights:
-
Software operations bookings totaled
$8.7 million 10.3% from the first quarter of 2024 - Second quarter software operations bookings included 18 six-figure customer contracts and one seven-figure customer contract
-
Software backlog totaled
$55.0 million 4% from the prior year -
Second quarter 2024 Wireless average revenue per unit (ARPU) was
$7.84 -
Improvement in quarterly net unit churn at
0.8% in the second quarter, down from1.6% in the prior quarter -
Capital returned to stockholders in the second quarter of 2024 totaled
$6.3 million -
Research and development costs total
$6.1 million
"Our goal has been and continues to be to reliably and consistently forecast and generate cash flow in order to return capital to our loyal stockholders over the long-term. We are achieving that goal," said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. "I am proud of the performance our team was able to deliver in the second quarter as we continue to serve our customers at a high level, while returning capital to stockholders. I am particularly pleased with our performance in generating software operations bookings of
"I believe Spok is doing an excellent job of balancing the necessary investments in our products and infrastructure in order to fuel future growth and continuing to return capital to our stockholders," continued Kelly. "Through the first six months of this year, Spok has generated nearly
"We were very pleased with our performance in the second quarter and believe that our results in the first half of the year provide a solid springboard for the second half of 2024. As a result, we are reiterating our guidance estimates for revenue and adjusted EBITDA generation for this year. At the midpoint of that guidance range, we believe we are on track to again grow consolidated revenue in 2024, on a year-over-year basis, with slight declines in wireless revenue being more than offset by continued growth in software revenue. We also anticipate that the midpoint of our adjusted EBITDA guidance will be consistent with 2023, with additional growth potential at the high-end of the guidance range. Of course, we will continue to update you on our outlook each quarter when we report our results," concluded Kelly.
Financial Highlights:
|
For the three months ended June 30, |
|
For the six months ended June 30, |
||||||||||||||
(Dollars in thousands) |
2024 |
|
2023 |
|
Change (%) |
|
2024 |
|
2023 |
|
Change (%) |
||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||
Wireless revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||
Paging revenue |
$ |
17,633 |
|
$ |
18,271 |
|
(3.5 |
)% |
|
$ |
35,603 |
|
$ |
36,796 |
|
(3.2 |
)% |
Product and other revenue |
|
664 |
|
|
606 |
|
9.6 |
% |
|
|
1,289 |
|
|
1,109 |
|
16.2 |
% |
Total wireless revenue |
$ |
18,297 |
|
$ |
18,877 |
|
(3.1 |
)% |
|
$ |
36,892 |
|
$ |
37,905 |
|
(2.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Software revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||
License |
$ |
1,697 |
|
$ |
3,692 |
|
(54.0 |
)% |
|
$ |
4,323 |
|
$ |
5,310 |
|
(18.6 |
)% |
Professional services |
|
4,286 |
|
|
3,837 |
|
11.7 |
% |
|
|
8,311 |
|
|
7,076 |
|
17.5 |
% |
Hardware |
|
334 |
|
|
933 |
|
(64.2 |
)% |
|
|
718 |
|
|
1,289 |
|
(44.3 |
)% |
Maintenance |
|
9,368 |
|
|
9,124 |
|
2.7 |
% |
|
|
18,647 |
|
|
18,063 |
|
3.2 |
% |
Total software revenue |
|
15,685 |
|
|
17,586 |
|
(10.8 |
)% |
|
|
31,999 |
|
|
31,738 |
|
0.8 |
% |
Total revenue |
$ |
33,982 |
|
$ |
36,463 |
|
(6.8 |
)% |
|
$ |
68,891 |
|
$ |
69,643 |
|
(1.1 |
)% |
|
For the three months ended June 30, |
|
For the six months ended June 30, |
||||||||||||||
(Dollars in thousands) |
2024 |
|
2023 |
|
Change (%) |
|
2024 |
|
2023 |
|
Change (%) |
||||||
GAAP |
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating expenses |
$ |
29,508 |
|
$ |
30,248 |
|
(2.4 |
)% |
|
$ |
59,526 |
|
$ |
58,711 |
|
1.4 |
% |
Net income |
$ |
3,425 |
|
$ |
4,733 |
|
(27.6 |
)% |
|
$ |
7,661 |
|
$ |
7,850 |
|
(2.4 |
)% |
Cash and cash equivalents (as of period end) |
$ |
23,875 |
|
$ |
30,866 |
|
(22.6 |
)% |
|
$ |
23,875 |
|
$ |
30,866 |
|
(22.6 |
)% |
Capital returned to stockholders |
$ |
6,329 |
|
$ |
6,230 |
|
1.6 |
% |
|
$ |
13,715 |
|
$ |
13,163 |
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted operating expenses |
$ |
28,093 |
|
$ |
28,875 |
|
(2.7 |
)% |
|
$ |
56,615 |
|
$ |
56,092 |
|
0.9 |
% |
Adjusted EBITDA |
$ |
7,048 |
|
$ |
8,511 |
|
(17.2 |
)% |
|
$ |
14,583 |
|
$ |
15,410 |
|
(5.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
For the three months ended June 30, |
|
For the six months ended June 30, |
||||||||||||||
(Dollars in thousands, excluding units in service and ARPU) |
2024 |
|
2023 |
|
Change (%) |
|
2024 |
|
2023 |
|
Change (%) |
||||||
Key Statistics |
|
|
|
|
|
|
|
|
|
|
|
||||||
Wireless units in service (000's) |
|
747 |
|
|
806 |
|
(7.3 |
)% |
|
|
747 |
|
|
806 |
|
(7.3 |
)% |
Wireless average revenue per unit (ARPU) |
$ |
7.84 |
|
$ |
7.53 |
|
4.1 |
% |
|
$ |
7.85 |
|
$ |
7.56 |
|
3.8 |
% |
Software operations bookings(1) |
$ |
8,695 |
|
$ |
14,010 |
|
(37.9 |
)% |
|
$ |
16,580 |
|
$ |
19,688 |
|
(15.8 |
)% |
Software backlog (as of period end)(2) |
$ |
55,006 |
|
$ |
53,075 |
|
3.6 |
% |
|
$ |
55,006 |
|
$ |
53,075 |
|
3.6 |
% |
(1) Software operations bookings includes net new (i.e., new customers or incremental add-on sales to existing customers) sales of license, professional services, equipment, and first-year maintenance. |
(2) Software backlog excludes |
Financial Outlook:
Regarding financial guidance, the Company reiterated the following expectations for the full year 2024:
(Unaudited and in millions) |
|
Current Guidance Full Year 2024 |
||||
|
|
From |
|
To |
||
Revenue |
|
|
|
|
||
Wireless |
|
$ |
72.0 |
|
$ |
75.0 |
Software |
|
$ |
64.0 |
|
$ |
69.0 |
Total Revenue |
|
$ |
136.0 |
|
$ |
144.0 |
|
|
|
|
|
||
Adjusted EBITDA |
|
$ |
27.5 |
|
$ |
32.5 |
2024 Second Quarter Call:
Management will host a conference call and webcast to discuss these financial results on Wednesday, July 24, 2024, at 5:00 p.m. Eastern Time. The presentation is open to all interested parties and may include forward-looking information.
Conference Call Details
Date/Time: |
Wednesday, July 24, 2024, at 5:00 p.m. ET |
|
Webcast: |
||
|
877-407-0890 |
|
International Dial In: |
1-201-389-0918 |
To access the call, please dial in approximately ten minutes before the start of the call. For those unable to join the live call, an OnDemand version of the webcast will be available following the call under the URL link and on the investor relations website.
About Spok
Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in
Spok is a trademark of Spok Holdings, Inc. Spok Care Connect and Spok Mobile 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 and accretion expense, impairment of intangible assets and severance and restructuring costs. Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax benefit/expense, depreciation and accretion expense, stock-based compensation expense, impairment of intangible assets and severance and restructuring. With respect to our expectations under "Financial Guidance" above, reconciliation of adjusted EBITDA to net income is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and uncertainty with respect to certain items included in net income that are excluded from adjusted EBITDA, in particular, income tax benefit/expense, stock-based compensation expenses, impairment of intangible assets, severance and restructuring and other non-recurring expenses. These items can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot be reasonably predicted.
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 believe it is important to exclude these costs, given that they do not represent future operational costs under this strategic business plan. This allows us to assess the underlying performance of our core business under this new strategic business plan.
We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principle of these non-GAAP financial measures is that they exclude significant amounts 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 items 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 our 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 our 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, our ability to manage wireless network rationalization to lower our costs without causing disruption of service to our customers; our ability to retain key management personnel and to attract and retain talent within the organization; the productivity of our sales organization and our ability to deliver effective customer support; economic conditions such as recessionary economic cycles, higher interest rates, inflation and higher levels of unemployment; risks related to our overall business strategy, including maximizing revenue and cash generation from our established businesses and returning capital to stockholders through dividends and repurchases of shares of our common stock; competition for our services and products from new technologies or those offered and/or developed from firms that are substantially larger and have much greater financial and human capital resources; continuing decline in the number of paging units we have in service with customers, commensurate with a continuing decline in our wireless revenue; our ability to address changing market conditions with new or revised software solutions; undetected defects, bugs, or security vulnerabilities in our products; our dependence on the
Tables to Follow
SPOK HOLDINGS, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited and in thousands except share, per share amounts and ARPU) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the three months ended |
|
For the six months ended |
||||||||||||
|
|
6/30/2024 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Wireless |
|
$ |
18,297 |
|
|
$ |
18,877 |
|
|
$ |
36,892 |
|
|
$ |
37,905 |
|
Software |
|
|
15,685 |
|
|
|
17,586 |
|
|
|
31,999 |
|
|
|
31,738 |
|
Total revenue |
|
|
33,982 |
|
|
|
36,463 |
|
|
|
68,891 |
|
|
|
69,643 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue (exclusive of items shown separately below) |
|
|
7,163 |
|
|
|
6,727 |
|
|
|
14,302 |
|
|
|
13,263 |
|
Research and development |
|
|
3,176 |
|
|
|
2,853 |
|
|
|
6,127 |
|
|
|
5,346 |
|
Technology operations |
|
|
6,181 |
|
|
|
6,452 |
|
|
|
12,480 |
|
|
|
13,039 |
|
Selling and marketing |
|
|
3,506 |
|
|
|
4,354 |
|
|
|
7,655 |
|
|
|
8,255 |
|
General and administrative |
|
|
8,067 |
|
|
|
8,489 |
|
|
|
16,051 |
|
|
|
16,189 |
|
Depreciation and accretion |
|
|
1,067 |
|
|
|
1,265 |
|
|
|
2,135 |
|
|
|
2,501 |
|
Severance and restructuring |
|
|
348 |
|
|
|
108 |
|
|
|
776 |
|
|
|
118 |
|
Total operating expenses |
|
|
29,508 |
|
|
|
30,248 |
|
|
|
59,526 |
|
|
|
58,711 |
|
% of total revenue |
|
|
86.8 |
% |
|
|
83.0 |
% |
|
|
86.4 |
% |
|
|
84.3 |
% |
Operating income |
|
|
4,474 |
|
|
|
6,215 |
|
|
|
9,365 |
|
|
|
10,932 |
|
% of total revenue |
|
|
13.2 |
% |
|
|
17.0 |
% |
|
|
13.6 |
% |
|
|
15.7 |
% |
Interest income |
|
|
391 |
|
|
|
354 |
|
|
|
645 |
|
|
|
626 |
|
Other expense |
|
|
(14 |
) |
|
|
(138 |
) |
|
|
(16 |
) |
|
|
(85 |
) |
Income before income taxes |
|
|
4,851 |
|
|
|
6,431 |
|
|
|
9,994 |
|
|
|
11,473 |
|
Provision for income taxes |
|
|
(1,426 |
) |
|
|
(1,698 |
) |
|
|
(2,333 |
) |
|
|
(3,623 |
) |
Net income |
|
$ |
3,425 |
|
|
$ |
4,733 |
|
|
$ |
7,661 |
|
|
$ |
7,850 |
|
Basic net income per common share |
|
$ |
0.17 |
|
|
$ |
0.24 |
|
|
$ |
0.38 |
|
|
$ |
0.39 |
|
Diluted net income per common share |
|
$ |
0.17 |
|
|
$ |
0.23 |
|
|
$ |
0.37 |
|
|
$ |
0.39 |
|
Basic weighted average common shares outstanding |
|
|
20,252,452 |
|
|
|
19,957,786 |
|
|
|
20,211,500 |
|
|
|
19,927,782 |
|
Diluted weighted average common shares outstanding |
|
|
20,473,751 |
|
|
|
20,255,248 |
|
|
|
20,500,335 |
|
|
|
20,266,914 |
|
Cash dividends declared per common share |
|
|
0.3125 |
|
|
|
0.3125 |
|
|
|
0.6250 |
|
|
|
0.6250 |
|
SPOK HOLDINGS, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands) |
||||||||
|
|
|
|
|
||||
|
|
6/30/2024 |
|
12/31/2023 |
||||
|
|
|
|
|
||||
ASSETS |
|
(Unaudited) |
|
|
||||
|
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
23,875 |
|
|
$ |
31,989 |
|
Accounts receivable, net |
|
|
22,824 |
|
|
|
23,314 |
|
Prepaid expenses |
|
|
8,590 |
|
|
|
7,885 |
|
Other current assets |
|
|
858 |
|
|
|
704 |
|
Total current assets |
|
|
56,147 |
|
|
|
63,892 |
|
Non-current assets: |
|
|
|
|
||||
Property and equipment, net |
|
|
7,056 |
|
|
|
7,321 |
|
Operating lease right-of-use assets |
|
|
9,177 |
|
|
|
10,526 |
|
Goodwill |
|
|
99,175 |
|
|
|
99,175 |
|
Deferred income tax assets, net |
|
|
43,939 |
|
|
|
46,260 |
|
Other non-current assets |
|
|
883 |
|
|
|
510 |
|
Total non-current assets |
|
|
160,230 |
|
|
|
163,792 |
|
Total assets |
|
$ |
216,377 |
|
|
$ |
227,684 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
5,418 |
|
|
$ |
5,969 |
|
Accrued compensation and benefits |
|
|
4,922 |
|
|
|
7,284 |
|
Deferred revenue |
|
|
25,239 |
|
|
|
26,298 |
|
Operating lease liabilities |
|
|
3,352 |
|
|
|
4,184 |
|
Other current liabilities |
|
|
4,425 |
|
|
|
4,273 |
|
Total current liabilities |
|
|
43,356 |
|
|
|
48,008 |
|
Non-current liabilities: |
|
|
|
|
||||
Asset retirement obligations |
|
|
7,197 |
|
|
|
7,191 |
|
Operating lease liabilities |
|
|
6,374 |
|
|
|
6,902 |
|
Other non-current liabilities |
|
|
1,238 |
|
|
|
1,812 |
|
Total non-current liabilities |
|
|
14,809 |
|
|
|
15,905 |
|
Total liabilities |
|
|
58,165 |
|
|
|
63,913 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Preferred stock |
|
$ |
— |
|
|
$ |
— |
|
Common stock |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
102,946 |
|
|
|
102,936 |
|
Accumulated other comprehensive loss |
|
|
(1,770 |
) |
|
|
(1,764 |
) |
Retained earnings |
|
|
57,034 |
|
|
|
62,597 |
|
Total stockholders' equity |
|
|
158,212 |
|
|
|
163,771 |
|
Total liabilities and stockholders' equity |
|
$ |
216,377 |
|
|
$ |
227,684 |
|
SPOK HOLDINGS, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited and in thousands) |
|||||||
|
|
|
|
||||
|
For the six months ended |
||||||
|
6/30/2024 |
|
6/30/2023 |
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
7,661 |
|
|
$ |
7,850 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and accretion |
|
2,135 |
|
|
|
2,501 |
|
Deferred income tax expense |
|
2,313 |
|
|
|
3,602 |
|
Stock-based compensation |
|
2,307 |
|
|
|
1,859 |
|
Provisions for credit losses, service credits and other |
|
262 |
|
|
|
222 |
|
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
223 |
|
|
|
1,168 |
|
Prepaid expenses and other assets |
|
(1,232 |
) |
|
|
(653 |
) |
Net operating lease liabilities |
|
(11 |
) |
|
|
(324 |
) |
Accounts payable, accrued liabilities and other |
|
(3,046 |
) |
|
|
(1,745 |
) |
Deferred revenue |
|
(1,192 |
) |
|
|
(3,282 |
) |
Net cash provided by operating activities |
|
9,420 |
|
|
|
11,198 |
|
Investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(1,516 |
) |
|
|
(1,815 |
) |
Net cash used in investing activities |
|
(1,516 |
) |
|
|
(1,815 |
) |
Financing activities: |
|
|
|
||||
Cash distributions to stockholders |
|
(13,715 |
) |
|
|
(13,163 |
) |
Proceeds from issuance of common stock under the Employee Stock Purchase Plan |
|
131 |
|
|
|
90 |
|
Purchase of common stock for tax withholding on vested equity awards |
|
(2,428 |
) |
|
|
(1,245 |
) |
Net cash used in financing activities |
|
(16,012 |
) |
|
|
(14,318 |
) |
Effect of exchange rate on cash and cash equivalents |
|
(6 |
) |
|
|
47 |
|
Net decrease in cash and cash equivalents |
|
(8,114 |
) |
|
|
(4,888 |
) |
Cash and cash equivalents, beginning of period |
|
31,989 |
|
|
|
35,754 |
|
Cash and cash equivalents, end of period |
$ |
23,875 |
|
|
$ |
30,866 |
|
Supplemental disclosure: |
|
|
|
||||
Income taxes paid |
$ |
241 |
|
|
$ |
253 |
|
SPOK HOLDINGS, INC. |
||||||||||||||||||||||||||||||||
UNITS IN SERVICE, MARKET SEGMENTS, |
||||||||||||||||||||||||||||||||
AND AVERAGE REVENUE PER UNIT (ARPU) |
||||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||||||||||||||
|
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
|
9/30/2022 |
||||||||||||||||
Account size ending units in service (000's) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1 to 100 units |
|
|
42 |
|
|
|
43 |
|
|
|
44 |
|
|
|
46 |
|
|
|
48 |
|
|
|
48 |
|
|
|
50 |
|
|
|
51 |
|
101 to 1,000 units |
|
|
128 |
|
|
|
135 |
|
|
|
142 |
|
|
|
143 |
|
|
|
144 |
|
|
|
149 |
|
|
|
147 |
|
|
|
147 |
|
>1,000 units |
|
|
577 |
|
|
|
575 |
|
|
|
579 |
|
|
|
596 |
|
|
|
614 |
|
|
|
614 |
|
|
|
620 |
|
|
|
626 |
|
Total |
|
|
747 |
|
|
|
753 |
|
|
|
765 |
|
|
|
785 |
|
|
|
806 |
|
|
|
811 |
|
|
|
817 |
|
|
|
824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Market segment as a percent of total ending units in service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Healthcare |
|
|
85.8 |
% |
|
|
86.1 |
% |
|
|
85.9 |
% |
|
|
86.0 |
% |
|
|
86.1 |
% |
|
|
85.7 |
% |
|
|
85.4 |
% |
|
|
85.0 |
% |
Government |
|
|
4.4 |
% |
|
|
4.1 |
% |
|
|
4.2 |
% |
|
|
4.2 |
% |
|
|
4.2 |
% |
|
|
4.3 |
% |
|
|
4.4 |
% |
|
|
4.1 |
% |
Large enterprise |
|
|
4.0 |
% |
|
|
3.9 |
% |
|
|
4.1 |
% |
|
|
4.1 |
% |
|
|
4.0 |
% |
|
|
4.1 |
% |
|
|
4.0 |
% |
|
|
3.9 |
% |
Other(1) |
|
|
5.8 |
% |
|
|
5.9 |
% |
|
|
5.8 |
% |
|
|
5.7 |
% |
|
|
5.7 |
% |
|
|
5.9 |
% |
|
|
6.2 |
% |
|
|
7.0 |
% |
Total |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Account size ARPU |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1 to 100 units |
|
$ |
12.51 |
|
|
$ |
12.66 |
|
|
$ |
12.57 |
|
|
$ |
12.02 |
|
|
$ |
11.91 |
|
|
$ |
12.03 |
|
|
$ |
11.95 |
|
|
$ |
11.80 |
|
101 to 1,000 units |
|
|
9.06 |
|
|
|
9.14 |
|
|
|
9.16 |
|
|
|
8.75 |
|
|
|
8.56 |
|
|
|
8.75 |
|
|
|
8.66 |
|
|
|
8.44 |
|
>1,000 units |
|
|
7.21 |
|
|
|
7.23 |
|
|
|
7.15 |
|
|
|
6.97 |
|
|
|
6.94 |
|
|
|
6.95 |
|
|
|
6.86 |
|
|
|
6.69 |
|
Total |
|
$ |
7.84 |
|
|
$ |
7.89 |
|
|
$ |
7.84 |
|
|
$ |
7.59 |
|
|
$ |
7.53 |
|
|
$ |
7.59 |
|
|
$ |
7.50 |
|
|
$ |
7.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Other includes hospitality, resort and indirect units |
||||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED OPERATING EXPENSES |
||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the three months ended |
|
For the six months ended |
||||||||||||
|
|
6/30/2024 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||
Operating expenses |
|
$ |
29,508 |
|
|
$ |
30,248 |
|
|
$ |
59,526 |
|
|
$ |
58,711 |
|
Add back: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and accretion |
|
|
(1,067 |
) |
|
|
(1,265 |
) |
|
|
(2,135 |
) |
|
|
(2,501 |
) |
Severance and restructuring |
|
|
(348 |
) |
|
|
(108 |
) |
|
|
(776 |
) |
|
|
(118 |
) |
Adjusted operating expenses |
|
$ |
28,093 |
|
|
$ |
28,875 |
|
|
$ |
56,615 |
|
|
$ |
56,092 |
|
RECONCILIATION OF ADJUSTED EBITDA |
||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the three months ended |
|
For the six months ended |
||||||||||||
|
|
6/30/2024 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
||||||||
Net income |
|
$ |
3,425 |
|
|
$ |
4,733 |
|
|
$ |
7,661 |
|
|
$ |
7,850 |
|
Add back: |
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
|
1,426 |
|
|
|
1,698 |
|
|
|
2,333 |
|
|
|
3,623 |
|
Other expense |
|
|
14 |
|
|
|
138 |
|
|
|
16 |
|
|
|
85 |
|
Interest income |
|
|
(391 |
) |
|
|
(354 |
) |
|
|
(645 |
) |
|
|
(626 |
) |
Depreciation and accretion |
|
|
1,067 |
|
|
|
1,265 |
|
|
|
2,135 |
|
|
|
2,501 |
|
EBITDA |
|
$ |
5,541 |
|
|
$ |
7,480 |
|
|
$ |
11,500 |
|
|
$ |
13,433 |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
|
1,159 |
|
|
|
923 |
|
|
|
2,307 |
|
|
|
1,859 |
|
Severance and restructuring |
|
|
348 |
|
|
|
108 |
|
|
|
776 |
|
|
|
118 |
|
Adjusted EBITDA |
|
$ |
7,048 |
|
|
$ |
8,511 |
|
|
$ |
14,583 |
|
|
$ |
15,410 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724013345/en/
Al Galgano
952-224-6096
al.galgano@spok.com
Source: Spok Holdings, Inc.
FAQ
What were Spok Holdings' software operations bookings for Q2 2024?
How much did Spok Holdings' net income decline in Q2 2024?
What is the declared quarterly dividend for Spok Holdings?
What is Spok Holdings' revenue guidance for FY 2024?
What was Spok Holdings' adjusted EBITDA for Q2 2024?
