Monday May 5 9:28 PM EDT
Company Press Release
Source: Metrocall Inc.
Metrocall Reports Record Net Revenue and Cash Flow for
First Quarter
ALEXANDRIA, Va., May 5 /PRNewswire/ -- Metrocall, Inc., (Nasdaq:MCLL) today announced
net revenues were $60.6 million for the quarter ended March 31, 1997, an increase of
approximately 34% over net revenues reported for the quarter ended December 31, 1996 and an
increase of approximately 140% over the quarter ended March 31, 1996. Operating cash flow
(EBITDA) for the quarter ended March 31, 1997 was approximately $16.3 million, an increase of
approximately 32% over operating cash flow reported for the quarter ended December 31, 1996
and an increase of approximately 142% over the quarter ended March 31, 1996. Net revenues and
operating cash flow are key financial measurements for the industry. The Company reported
quarterly net subscriber additions of 85,213, increasing total subscribers to 2,227,564 at March 31,
1997 from 2,142,351 at December 31, 1996. Total subscribers have increased more than 120%
from 1,009,548 at March 31, 1996.
Operating results reflect the results of operations of Parkway Paging since July 17, 1996, Satellite
Paging and Message Network since September 1, 1996, and A+ Network since November 15,
1996. The Company's net revenues and operating cash flow for the first quarter of 1997
represented increases of approximately 6% and 7% respectively over pro forma net revenues and
operating cash flow for the fourth quarter of 1996, assuming the A+ Network merger had been
consummated before the fourth quarter.
William L. Collins III, President and Chief Executive Officer for Metrocall said, ``For the third
quarter in a row, Metrocall has delivered record net revenues and operating cash flow. Coupled
with strong internal subscriber growth, the first quarter results are directly attributable to the
execution of Metrocall's plan to make strategic acquisitions and integrate them to strengthen
Metrocall's position as a top-tier operator in the wireless industry. During the first quarter of 1997,
Metrocall's performance was driven primarily by the sale of units through thirteen of fourteen
channels of distribution which are designed to sell units to the customer. This focus on selling instead
of leasing wireless messaging units is a central part of Metrocall's goal to continue to de-lever the
balance sheet. For the second consecutive quarter Metrocall is among the least levered companies
in the paging industry.''
In addition to the increases in net revenues and operating cash flow, the Company's average
monthly revenue per unit also increased to $8.31 during the quarter, compared to $8.21 reported in
the quarter ended December 31, 1996. Capital expenditures were $14.5 million. Subscriber
additions were 85,213 for the quarter ended March 31, 1997, with 73,313 sold in the following
categories: 3,822 for customer owned and maintained; 38,905 for reseller; 10,248 for retail; 4,349
for company operated stores; and 15,989 for strategic alliances. The remaining net additions of
11,900 pagers were leased.
Collins added, ``As one of the largest paging industry consolidators in 1996, Metrocall has been
able to achieve significant synergies through the execution of a well planned integration process. In
particular, I am pleased to say that our integration of the A+ Network operations is on schedule and
delivering improvements in operations that will continue to translate into increased cash flow
opportunities. During the quarter, Metrocall consolidated nearly all of the back office functions to
our National Operations Center, while keeping customer service and sales decentralized and in the
field, closest to the customer. This approach to integration has allowed Metrocall to minimize churn
concerns, generate enhanced sales opportunities and mitigate employee turnover, while surpassing
expectations.''
Metrocall, Inc., headquartered in Alexandria, Virginia (Metropolitan Washington, DC), is the fifth
largest paging and wireless messaging company with 2.2 million subscribers, offering service
throughout the United States through its Nationwide Wireless Network.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The statements
contained in this release which are not historical facts, such as those concerning future financial
performance and growth, are forward-looking statements that are subject to risks and uncertainties,
including those identified in the Company's Annual Report on Form 10-K and could differ materially
from those set forth in the forward-looking statements.
METROCALL, INC.
Consolidated Statements of Operations
(Dollars in Thousands, Except Per Share and Unit Information)
(Unaudited)
Three Months Ended
March 31,
1997(A) 1996
REVENUES:
Service, rent and maintenance revenues $58,515 $23,750
Product sales 8,238 6,189
Total revenues 66,753 29,939
Net book value of products sold (6,157) (4,650)
Total 60,596 25,289
OPERATING EXPENSES:
Service, rent and maintenance expenses 16,418 8,193
Selling and marketing 11,912 4,593
General and administrative 15,976 5,782
Depreciation and amortization 20,718 11,491
Total 65,024 30,059
Loss from operations (4,428) (4,770)
INTEREST AND OTHER (EXPENSE) INCOME (83) 1,354
INTEREST EXPENSE (8,040) (4,209)
LOSS BEFORE INCOME TAX BENEFIT (PROVISION) (12,551) (7,625)
INCOME TAX BENEFIT (PROVISION) 803 (64)
Net loss (11,748) (7,689)
PREFERRED DIVIDENDS (1,560) --
Loss attributable to common stockholders $(13,308) $(7,689)
Loss per share attributable
to common stockholders $(0.54) $(0.53)
Weighted average common
shares outstanding 24,858,397 14,626,255
OTHER DATA:
Net Revenues (B) $60,596 $25,289
EBITDA (C) 16,290 6,721
EBITDA margin on net revenues (D) 26.9% 26.6%
Pagers In Service (end of period) 2,227,564 1,009,548
(A) Statements of operations for the three months ended March 31, 1997 include the results
of operations of acquired companies from their date of acquisition only.
(B) Total revenues less net book value of products sold.
(C) Earnings before interest, taxes, depreciation and amortization (EBITDA).
(D) Calculated by dividing EBITDA by net revenues.
SOURCE: Metrocall Inc.
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