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Spok Reports 2021 First Quarter Results

ALEXANDRIA, Va.–(BUSINESS WIRE)–Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the first quarter ended March 31, 2021. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on June 24, 2021, to stockholders of record on May 25, 2021.

Key First Quarter 2021 Operating Highlights:

  • First quarter 2021 software revenue of $15.9 million included $9.4 million of maintenance revenue and $6.5 million of operations revenue. This was consistent with first quarter 2020 software revenue of $15.9 million, which included $9.7 million of maintenance revenue and $6.2 million of operations revenue.
  • Software bookings in the first quarter of 2021 totaled $14.6 million, compared to $15.6 million in the prior year quarter. First quarter software bookings included Spok Go® deals with an aggregate total contract value of approximately $0.7 million. First quarter software bookings also included $5.9 million of legacy operations bookings and $8.0 million of maintenance renewals. As of March 31, 2021, the software revenue backlog totaled $48.8 million, compared to the backlog of $49.1 million at March 31, 2020.
  • The quarterly rate of paging unit erosion was 1.2% in the first quarter of 2021, compared to paging unit erosion of 1.3% in the first quarter of 2020. Gross disconnects were down on a year-over-year basis.
  • Total paging ARPU (average revenue per unit) in the first quarter of 2021 totaled $7.34, up from ARPU of $7.31 in the first quarter of 2020, primarily due to the recovery of Telecommunications Service Charges (TRS) that began in early 2021, and general increases of Universal Service Fees (USF). USF and TRS fees are effectively pass-through items that have corresponding costs associated with them. Excluding these pass-through items, ARPU would have declined in-line with historical trends.
  • Operating expenses in the first quarter of 2021 totaled $37.8 million, down from $41.4 million in the first quarter of 2020. Adjusted operating expenses (which excludes depreciation, amortization and accretion charges, and includes capitalized software development costs) totaled $38.0 million in the first quarter of 2021, down more than 7% from adjusted operating expenses of $40.9 million in the first quarter of 2020.
  • Capital expenses were $0.7 million in the first quarter of 2021, compared to $1.0 million in the first quarter of 2020.
  • The number of full-time equivalent employees as of March 31, 2021 totaled 603, compared to 620 at March 31, 2020.
  • Capital paid to stockholders in the first quarter of 2021 aggregated $2.7 million. This came in the form of the Company’s regular quarterly dividend.
  • The Company’s cash, cash equivalents and short-term investments balance as of March 31, 2021, was $71.6 million, compared to $78.7 million at December 31, 2020.

2021 First Quarter Results:

Consolidated revenue for the first quarter of 2021 under Generally Accepted Accounting Principles (“GAAP”) was $36.0 million, compared to $37.3 million in the first quarter of 2020.

 

For the three months ended

(Dollars in thousands)

March 31, 2021

 

March 31, 2020

 

Change(%)

Wireless revenue

 

 

 

 

 

Paging revenue

$

19,353

 

 

$

20,451

 

 

(5.4)

%

Product and other revenue

767

 

 

935

 

 

(18.0)

%

Total wireless revenue

$

20,120

 

 

$

21,386

 

 

(5.9)

%

 

 

 

 

 

 

Software revenue

 

 

 

 

 

License

$

1,507

 

 

$

955

 

 

57.8

%

Services

$

4,354

 

 

$

4,549

 

 

(4.3)

%

Equipment

$

616

 

 

$

725

 

 

(15.0)

%

Subscription

$

45

 

 

$

 

 

%

Maintenance

9,394

 

 

9,652

 

 

(2.7)

%

Total software revenue

15,916

 

 

15,881

 

 

0.2

%

Total revenue

$

36,036

 

 

$

37,267

 

 

(3.3)

%

GAAP net loss for the first quarter of 2021 was $2.3 million, or a loss of $0.12 per basic and diluted share, compared to a net loss of $4.5 million, or a loss of $0.24 per basic and diluted share, in the first quarter of 2020. In the first quarter of 2021, adjusted EBITDA totaled $0.3 million compared to an adjusted EBITDA loss of $2.5 million in the first quarter of 2020.

 

For the three months ended

(Dollars in thousands)

March 31, 2021

 

March 31, 2020

 

Change(%)

Net loss

$

(2,297)

 

 

$

(4,539)

 

 

49.4

%

Basic and diluted net loss per common share

$

(0.12)

 

 

$

(0.24)

 

 

50.0

%

Adjusted EBITDA

$

306

 

 

$

(2,485)

 

 

112.3

%

Management Commentary:

“We are encouraged by our performance in the first quarter and believe it sets a solid foundation for the remainder of 2021, as we continue our transition from a traditional communications company to an integrated clinical software-based business,” said Vincent D. Kelly, president and chief executive officer. “While we are still operating in a very challenging environment, we are making tangible progress executing against our strategy, and we are beginning to see benefits to our business as a result of the increasing prevalence of COVID-19 vaccines. Notably, our sales and services teams are resuming more normalized travel schedules and visiting customer sites in-person that they had been prevented from visiting since early last year.

“We launched Spok Go, our software-as-a-service, cloud-native platform just over a year ago, at the onset of the pandemic. Despite unprecedented challenges, our team was able to generate initial sales of this platform in the second half of last year, and that momentum has carried into 2021. In the first quarter, we announced the international expansion of the Spok Go platform in Canada and Australia, with localized capabilities to meet compliance and language requirements. We also added two more Spok Go wins in these markets. We also made significant progress in clinical innovation partner development, collaborating with both Mayo Clinic and St. Joseph’s Healthcare Hamilton to enhance the clinical optimization of the Spok Go platform. These partnerships are very valuable to us, as they are further evidence of the broad acceptance that our Spok Go platform is receiving and provide us insights from best-in-class organizations to enhance the capabilities of Spok Go.

“In the first quarter, we slightly grew software revenue, and our backlog was consistent with prior year levels. We believe these are significant milestones in our recovery to pre-pandemic operating performance, as it shows a comparison to the last quarter that was not materially impacted by COVID-19. Additionally, in the first quarter, we saw continued solid trends in our wireless business. We are focused on maintaining our cash, cash equivalents and short-term investments balances, and in the first quarter, we generated slightly positive cash flow from operations. We achieved these results while continuing to support our Spok Care Connect® platform and investing in Spok Go. Last year we implemented a furlough program designed to conserve cash, prevent layoffs and continue our investment while our healthcare customers struggled with the pandemic. We continued that plan into 2021 with across-the-board furloughs of one week in each of the 1st and 2nd quarters. We are ending furloughs after the second quarter and have no plans to continue them going forward,” concluded Kelly.

Business Outlook:

Michael W. Wallace, chief operating officer and chief financial officer, said, “Disciplined expense management continues to be a key focus, as we further align expense levels with market demand for our products. During the first quarter, operating expenses were down nearly 9% and adjusted operating expenses were down more than 7% from prior year levels, with improvements in most expense categories over that period. Spok’s balance sheet remains strong, as the cash, cash equivalents and short-term investments balance was $71.6 million at March 31, 2021 and we are still operating with no debt.”

Regarding financial guidance for 2021, based on the increased visibility the Company has into the operating environment through the end of the year, and the discontinuance of the furlough program after the second quarter, Spok revised its 2021 financial guidance ranges. Spok’s revised expectations are summarized in the following table:

(Unaudited and in millions)

Previous Guidance

Full Year 2021

 

Current Guidance

Full Year 2021

Revenue

 

 

 

 

 

 

 

Wireless

$

74.0

 

to

$

80.0

 

 

$

77.0

 

to

$

81.0

 

Software

$

58.2

 

 

$

67.2

 

 

$

61.0

 

 

$

70.0

 

Total Revenue

$

132.2

 

 

$

147.2

 

 

$

138.0

 

 

$

151.0

 

 

 

 

 

 

 

 

 

Adjusted Operating Expenses

$

142.7

 

 

$

150.7

 

 

$

151.0

 

 

$

157.0

 

 

 

 

 

 

 

 

 

Capital Expenditures

$

2.7

 

 

$

6.7

 

 

$

3.5

 

 

$

5.5

 

On April 14, 2021, in support of the Company’s Board of Directors’ ongoing annual refreshment process, Brian O’Reilly informed the Company that he will not stand for re-election to the Board at the Company’s 2021 annual meeting of stockholders. Mr. O’Reilly will remain a director and maintain his committee memberships through the 2021 annual meeting. Royce Yudkoff, chairman of the board of directors, said, “On behalf of my fellow directors, I would like to thank Brian for his many years of leadership on the Board and the significant contributions he has made to the Company.”

In addition, on June 1, 2021, the Company will publish its inaugural Environmental, Social, and Governance (ESG) Report, reflecting a continued commitment to advancing the Company’s ESG goals and sustainable business practices.

2021 Investor Day Program:

The Company also announced that it plans to host an investor day during the week of October 11th. The investor day program will feature presentations by management. The investor day will be run concurrently with Spok’s Connect ’21 customer conference in Dallas. Investors will be invited to attend the Connect ’21 keynote address and opening sessions on the first day of the conference. Investors would then be invited to a breakout session for the management presentations. The investor day will conclude at the end of the first day of the Connect ’21 conference. The Company will provide more details in future press releases.

2021 First Quarter Call and Replay:

Spok plans to host a conference call for investors to discuss its 2021 first quarter results at 10:00 a.m. ET on Thursday, April 29, 2021. Dial-in numbers for the call are 1 334-323-0501 or 800-353-6461. The confirmation code for the call is 4773192. A replay of the call will be available from 1:00 p.m. ET on April 29, 2021 until 1:00 p.m. ET on Thursday, May 13, 2021. To listen to the replay, please register at http://tinyurl.com/Spok2021Q1earningsreplay. 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, 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

 

 

3/31/2021

 

3/31/2020

Revenue:

 

 

 

 

Wireless

 

$

20,120

 

 

$

21,386

 

Software

 

 

15,916

 

 

 

15,881

 

Total revenue

 

 

36,036

 

 

 

37,267

 

Operating expenses:

 

 

 

 

Cost of revenue

 

 

7,241

 

 

 

8,264

 

Research and development

 

 

4,506

 

 

 

5,449

 

Technology operations

 

 

7,252

 

 

 

7,904

 

Selling and marketing

 

 

4,900

 

 

 

6,361

 

General and administrative

 

 

11,150

 

 

 

11,251

 

Depreciation, amortization and accretion

 

 

2,727

 

 

 

2,146

 

Total operating expenses

 

 

37,776

 

 

 

41,375

 

% of total revenue

 

 

104.8

%

 

 

111.0

%

Operating loss

 

 

(1,740

)

 

 

(4,108

)

% of total revenue

 

 

(4.8

)%

 

 

(11.0

)%

Interest income

 

 

61

 

 

 

363

 

Other expense

 

 

(27

)

 

 

(137

)

Loss before income taxes

 

 

(1,706

)

 

 

(3,882

)

Provision for income taxes

 

 

(591

)

 

 

(657

)

Net loss

 

$

(2,297

)

 

$

(4,539

)

Basic and diluted net loss per common share

 

$

(0.12

)

 

$

(0.24

)

Basic and diluted weighted average common shares outstanding

 

 

19,272,786

 

 

 

18,958,716

 

Cash dividends declared per common share

 

 

0.125

 

 

 

0.125

 

 

Key statistics:

 

 

 

 

Units in service

 

 

874

 

 

 

926

 

Average revenue per unit (ARPU)

 

$

7.34

 

 

$

7.31

 

Bookings

 

$

14,597

 

 

$

15,639

 

Backlog

 

$

48,849

 

 

$

49,052

 

 

 

 

 

 

(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

 

 

3/31/2021

 

12/31/2020

 

9/30/2020

 

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

 

6/30/2019

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless

 

$

20,120

 

 

$

20,300

 

 

$

20,828

 

 

$

21,078

 

 

$

21,386

 

 

$

21,615

 

 

$

21,814

 

 

$

22,127

 

Software

 

 

15,916

 

 

 

17,180

 

 

 

16,865

 

 

 

14,661

 

 

 

15,881

 

 

 

17,933

 

 

 

17,639

 

 

 

17,398

 

Total revenue

 

 

36,036

 

 

 

37,480

 

 

 

37,693

 

 

 

35,739

 

 

 

37,267

 

 

 

39,548

 

 

 

39,453

 

 

 

39,525

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

7,241

 

 

 

7,833

 

 

 

6,544

 

 

 

5,901

 

 

 

8,264

 

 

 

8,051

 

 

 

7,190

 

 

 

7,239

 

Research and development

 

 

4,506

 

 

 

4,166

 

 

 

3,459

 

 

 

2,754

 

 

 

5,449

 

 

 

7,132

 

 

 

7,437

 

 

 

6,807

 

Technology operations

 

 

7,252

 

 

 

7,371

 

 

 

7,357

 

 

 

7,212

 

 

 

7,904

 

 

 

8,083

 

 

 

7,805

 

 

 

7,866

 

Selling and marketing

 

 

4,900

 

 

 

5,004

 

 

 

4,272

 

 

 

3,831

 

 

 

6,361

 

 

 

5,891

 

 

 

5,595

 

 

 

5,574

 

General and administrative

 

 

11,150

 

 

 

10,046

 

 

 

10,994

 

 

 

10,810

 

 

 

11,251

 

 

 

11,531

 

 

 

11,813

 

 

 

11,696

 

Depreciation, amortization and accretion

 

 

2,727

 

 

 

2,503

 

 

 

2,335

 

 

 

2,072

 

 

 

2,146

 

 

 

2,250

 

 

 

2,305

 

 

 

2,335

 

Goodwill impairment

 

 

 

 

 

25,007

 

 

 

 

 

 

 

 

 

 

 

 

8,849

 

 

 

 

 

 

 

Total operating expenses

 

 

37,776

 

 

 

61,930

 

 

 

34,961

 

 

 

32,580

 

 

 

41,375

 

 

 

51,787

 

 

 

42,145

 

 

 

41,517

 

% of total revenue

 

 

104.8

%

 

 

165.2

%

 

 

92.8

%

 

 

91.2

%

 

 

111.0

%

 

 

130.9

%

 

 

106.8

%

 

 

105.0

%

Operating (loss) income

 

 

(1,740

)

 

 

(24,450

)

 

 

2,732

 

 

 

3,159

 

 

 

(4,108

)

 

 

(12,239

)

 

 

(2,692

)

 

 

(1,992

)

% of total revenue

 

 

(4.8

)%

 

 

(65.2

)%

 

 

7.2

%

 

 

8.8

%

 

 

(11.0

)%

 

 

(30.9

)%

 

 

(6.8

)%

 

 

(5.0

)%

Interest income

 

 

61

 

 

 

51

 

 

 

127

 

 

 

146

 

 

 

363

 

 

 

350

 

 

 

399

 

 

 

452

 

Other (expense) income

 

 

(27

)

 

 

95

 

 

 

151

 

 

 

101

 

 

 

(137

)

 

 

206

 

 

 

163

 

 

 

602

 

(Loss) income before income taxes

 

 

(1,706

)

 

 

(24,304

)

 

 

3,010

 

 

 

3,406

 

 

 

(3,882

)

 

 

(11,683

)

 

 

(2,130

)

 

 

(938

)

(Provision for) benefit from income taxes

 

 

(591

)

 

 

(22,306

)

 

 

155

 

 

 

353

 

 

 

(657

)

 

 

2,172

 

 

 

804

 

 

 

268

 

Net (loss) income

 

$

(2,297

)

 

$

(46,610

)

 

$

3,165

 

 

$

3,759

 

 

$

(4,539

)

 

$

(9,511

)

 

$

(1,326

)

 

$

(670

)

Basic net (loss) income per common share

 

$

(0.12

)

 

$

(2.44

)

 

$

0.17

 

 

$

0.20

 

 

$

(0.24

)

 

$

(0.50

)

 

$

(0.07

)

 

$

(0.03

)

Diluted net (loss) income per common share

 

 

(0.12

)

 

 

(2.44

)

 

 

0.16

 

 

 

0.20

 

 

 

(0.24

)

 

 

(0.50

)

 

 

(0.07

)

 

 

(0.03

)

Basic weighted average common shares outstanding

 

 

19,272,786

 

 

 

19,088,329

 

 

 

19,051,502

 

 

 

19,016,853

 

 

 

18,958,716

 

 

 

18,860,020

 

 

 

19,086,811

 

 

 

19,217,866

 

Diluted weighted average common shares outstanding

 

 

19,272,786

 

 

 

19,088,329

 

 

 

19,208,452

 

 

 

19,115,148

 

 

 

18,958,716

 

 

 

18,860,020

 

 

 

19,086,811

 

 

 

19,217,866

 

 

Key statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Units in service

 

 

874

 

 

 

885

 

 

 

898

 

 

 

915

 

 

 

926

 

 

 

938

 

 

 

955

 

 

 

977

 

Average revenue per unit (ARPU)

 

$

7.34

 

 

$

7.30

 

 

$

7.34

 

 

$

7.24

 

 

$

7.31

 

 

$

7.33

 

 

$

7.32

 

 

$

7.26

 

Bookings

 

$

14,597

 

 

$

16,528

 

 

$

21,414

 

 

$

15,411

 

 

$

15,639

 

 

$

21,932

 

 

$

20,421

 

 

$

21,334

 

Backlog

 

$

48,849

 

 

$

50,504

 

 

$

51,708

 

 

$

48,441

 

 

$

49,052

 

 

$

50,553

 

 

$

42,604

 

 

$

39,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (a)

(In thousands)

 

 

 

 

 

 

 

3/31/2021

 

12/31/2020

 

 

 

 

 

ASSETS

 

Unaudited

 

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

41,646

 

 

$

48,729

 

Short term investments

 

 

29,996

 

 

 

29,995

 

Accounts receivable, net

 

 

28,675

 

 

 

29,934

 

Prepaid expenses

 

 

8,284

 

 

 

8,958

 

Other current assets

 

 

1,681

 

 

 

1,269

 

Total current assets

 

 

110,282

 

 

 

118,885

 

Non-current assets:

 

 

 

 

Property and equipment, net

 

 

7,421

 

 

 

7,815

 

Operating lease right-of-use assets

 

 

17,636

 

 

 

14,016

 

Capitalized software development, net

 

 

12,064

 

 

 

10,179

 

Goodwill

 

 

99,175

 

 

 

99,175

 

Intangible assets, net

 

 

 

 

 

417

 

Deferred income tax assets, net

 

 

25,223

 

 

 

25,826

 

Other non-current assets

 

 

875

 

 

 

978

 

Total non-current assets

 

 

162,394

 

 

 

158,406

 

Total assets

 

$

272,676

 

 

$

277,291

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

4,451

 

 

$

6,685

 

Accrued compensation and benefits

 

 

13,084

 

 

 

14,103

 

Deferred revenue

 

 

26,743

 

 

 

27,686

 

Operating lease liabilities

 

 

6,037

 

 

 

5,264

 

Other current liabilities

 

 

3,923

 

 

 

3,702

 

Total current liabilities

 

 

54,238

 

 

 

57,440

 

Non-current liabilities:

 

 

 

 

Asset retirement obligations

 

 

7,402

 

 

 

7,289

 

Operating lease liabilities

 

 

12,640

 

 

 

9,456

 

Other non-current liabilities

 

 

1,824

 

 

 

2,493

 

Total non-current liabilities

 

 

21,866

 

 

 

19,238

 

Total liabilities

 

 

76,104

 

 

 

76,678

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock

 

$

 

 

$

 

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

92,575

 

 

 

91,780

 

Accumulated other comprehensive loss

 

 

(1,438

)

 

 

(1,452

)

Retained earnings

 

 

105,433

 

 

 

110,283

 

Total stockholders’ equity

 

 

196,572

 

 

 

200,613

 

Total liabilities and stockholders’ equity

 

$

272,676

 

 

$

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 three months ended

 

3/31/2021

 

3/31/2020

Operating activities:

 

 

 

Net loss

$

(2,297

)

 

$

(4,539

)

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

 

 

 

Depreciation, amortization and accretion

 

2,727

 

 

 

2,146

 

Deferred income tax expense

 

510

 

 

 

790

 

Stock-based compensation

 

2,239

 

 

 

1,182

 

Provisions for doubtful accounts, service credits and other

 

215

 

 

 

18

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

 

1,039

 

 

 

2,441

 

Prepaid expenses and other assets

 

457

 

 

 

238

 

Net operating lease liabilities

 

338

 

 

 

(77

)

Accounts payable, accrued liabilities and other

 

(3,038

)

 

 

(340

)

Deferred revenue

 

(1,471

)

 

 

(542

)

Net cash provided by operating activities

 

719

 

 

 

1,317

 

Investing activities:

 

 

 

Purchases of property and equipment

 

(727

)

 

 

(1,049

)

Capitalized software development

 

(2,920

)

 

 

(1,705

)

Purchase of short-term investments

 

(14,995

)

 

 

(14,888

)

Maturity of short-term investments

 

15,000

 

 

 

15,000

 

Net cash used in investing activities

 

(3,642

)

 

 

(2,642

)

Financing activities:

 

 

 

Cash distributions to stockholders

 

(2,730

)

 

 

(2,629

)

Purchase of common stock for tax withholding on vested equity awards

 

(1,444

)

 

 

(903

)

Net cash used in financing activities

 

(4,174

)

 

 

(3,532

)

Effect of exchange rate on cash

 

14

 

 

 

(220

)

Net decrease in cash and cash equivalents

 

(7,083

)

 

 

(5,077

)

Cash and cash equivalents, beginning of period

 

48,729

 

 

 

47,361

 

Cash and cash equivalents, end of period

$

41,646

 

 

$

42,284

 

Supplemental disclosure:

 

 

 

Income taxes paid

$

(118

)

 

$

 

 

 

 

 

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

Contacts

Al Galgano

952-567-0295

Al.Galgano@spok.com

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