USA Mobility Inc. (USMO, Financial) filed Annual Report for the period ended 2011-12-31.
Usa Mobility has a market cap of $327 million; its shares were traded at around $14.09 with a P/E ratio of 6.2 and P/S ratio of 1.1. The dividend yield of Usa Mobility stocks is 6.8%.
Commission expenses increased by $1.6 million and as a percentage of revenue for the year ended December 31, 2011 compared to the same period in 2010 due primarily to commission expenses for software operations, partially offset by lower commission expenses in our wireless operations in line with the revenue and subscriber erosion. The increase of $2.4 million in other expenses and as a percentage of revenue was due to increases in outside service expenses of $0.1 million, rewards and recognition expenses of $0.2 million for wireless operations, and $2.1 million in costs for software operations. The $2.1 million in costs for software operations consisted of $0.7 million in travel and entertainment, $0.7 million in advertising expenses and $0.7 million in other miscellaneous expenses.
Outside services Outside service expenses consisted primarily of costs associated with printing and mailing invoices, outsourced customer service, temporary help, and various professional fees. The increase of $1.0 million in outside service expenses and as a percentage of revenue was due primarily to transaction and integration costs related to the acquisition of Amcom of $2.7 million for the year ended December 31, 2011 compared to $0.6 million in outside accounting and legal service expenses related to acquisition due diligence in 2010. This net increase was partially offset by reductions in legal fees of $0.7 million and audit-related and tax service fees of $0.4 million.
While commission expenses decreased by $0.4 million for the year ended December 31, 2010 compared to the same period in 2009, commission expenses as a percentage of revenue increased during the period due to higher average commissions paid per commissioned FTEs, reflecting our continued focus on maintaining gross placements. Stock based compensation expenses decreased by $0.1 million for the year ended December 31, 2010 compared to the same period in 2009 due to no compensation expense associated with the Additional Target Award under the 2006 LTIP during the period since the Additional Target Award was awarded and expensed in the first quarter of 2009, and due to lower amortization of compensation expense associated with the 2009 LTIP. The decrease of $1.0 million in other expenses was primarily due to reductions in rewards and recognition expenses of $0.4 million, reduction in other expenses of $0.2 million due to lower one-time expenses
Net cash provided by operating activities increased $3.0 million for the year ended December 31, 2011 compared to the same period in 2010 and reflects our software operations from March 3, 2011. Cash received from customers increased $9.4 million, or 4.0%, for the year ended December 31, 2011 from the same period in 2010. Cash received from customers consisted of revenues and direct taxes billed to customers adjusted for changes in accounts receivable, deferred revenue and tax withholding amounts. The increase was due to higher deferred revenue of $4.0 million and higher revenue of $9.7 million mainly due to our software operations, partially offset by lower accounts receivable of $4.3 million.
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Usa Mobility has a market cap of $327 million; its shares were traded at around $14.09 with a P/E ratio of 6.2 and P/S ratio of 1.1. The dividend yield of Usa Mobility stocks is 6.8%.
Highlight of Business Operations:
As indicated in the table above, selling and marketing expenses for the year ended December 31, 2011 increased by $6.4 million, or 37.6%, and as a percentage of revenue from the same period in 2010. Selling and marketing expenses consisted primarily of payroll and related expenses, which increased $2.3 million or 20.8% and as a percentage of revenue for the year ended December 31, 2011 compared to the same period in 2010. As stated above, the increase in payroll and related expenses is primarily due to the payroll and related costs for 49 FTEs for software operations, partially offset by lower costs for wireless operations. The sales and marketing staff are all involved in selling our paging and software products and services domestically and internationally, as well as reselling other wireless products and services, such as cellular phones and e-mail devices under authorized agent agreements. These expenses support our efforts to maintain gross placements of units in service, which mitigated the impact of disconnects on our revenue base for wireless operations, and to identify business opportunities for additional or future software sales. We have a centralized marketing function that is focused on supporting our software products and vertical sales efforts by strengthening our brand, generating sales leads, and facilitating the sales process. These marketing functions are accomplished through targeted email campaigns, webinars, regional and national user conferences, monthly newsletters, and participation at industry trade shows. We sell our software products through a direct and channel sales force that consists of a dedicated team of managers. We have reduced the overall cost of our selling and marketing activities on the wireless operations by focusing on the most productive sales and marketing employees. Total FTEs declined by 32 FTEs to 96 FTEs at December 31, 2011 from 128 FTEs at December 31, 2010 for wireless operations.Commission expenses increased by $1.6 million and as a percentage of revenue for the year ended December 31, 2011 compared to the same period in 2010 due primarily to commission expenses for software operations, partially offset by lower commission expenses in our wireless operations in line with the revenue and subscriber erosion. The increase of $2.4 million in other expenses and as a percentage of revenue was due to increases in outside service expenses of $0.1 million, rewards and recognition expenses of $0.2 million for wireless operations, and $2.1 million in costs for software operations. The $2.1 million in costs for software operations consisted of $0.7 million in travel and entertainment, $0.7 million in advertising expenses and $0.7 million in other miscellaneous expenses.
Outside services Outside service expenses consisted primarily of costs associated with printing and mailing invoices, outsourced customer service, temporary help, and various professional fees. The increase of $1.0 million in outside service expenses and as a percentage of revenue was due primarily to transaction and integration costs related to the acquisition of Amcom of $2.7 million for the year ended December 31, 2011 compared to $0.6 million in outside accounting and legal service expenses related to acquisition due diligence in 2010. This net increase was partially offset by reductions in legal fees of $0.7 million and audit-related and tax service fees of $0.4 million.
While commission expenses decreased by $0.4 million for the year ended December 31, 2010 compared to the same period in 2009, commission expenses as a percentage of revenue increased during the period due to higher average commissions paid per commissioned FTEs, reflecting our continued focus on maintaining gross placements. Stock based compensation expenses decreased by $0.1 million for the year ended December 31, 2010 compared to the same period in 2009 due to no compensation expense associated with the Additional Target Award under the 2006 LTIP during the period since the Additional Target Award was awarded and expensed in the first quarter of 2009, and due to lower amortization of compensation expense associated with the 2009 LTIP. The decrease of $1.0 million in other expenses was primarily due to reductions in rewards and recognition expenses of $0.4 million, reduction in other expenses of $0.2 million due to lower one-time expenses
Net cash provided by operating activities increased $3.0 million for the year ended December 31, 2011 compared to the same period in 2010 and reflects our software operations from March 3, 2011. Cash received from customers increased $9.4 million, or 4.0%, for the year ended December 31, 2011 from the same period in 2010. Cash received from customers consisted of revenues and direct taxes billed to customers adjusted for changes in accounts receivable, deferred revenue and tax withholding amounts. The increase was due to higher deferred revenue of $4.0 million and higher revenue of $9.7 million mainly due to our software operations, partially offset by lower accounts receivable of $4.3 million.
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