Spok Holdings, Inc. (NASDAQ:SPOK)

Spok Holdings, Inc. (NASDAQ:SPOK) ($15.72; $316.5M market cap) announced its Q1 2024 results:

• Q1 sales of $34.9 million vs $33.1 million in the prior year; in line with analyst estimates of $34.8 million
• Non-GAAP EPS of $0.26 vs $0.20 in the prior year and in line with analyst estimates of $0.26

"We were very pleased with our performance in the first quarter and believe that it provides a solid springboard for 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," 

Maintained full year 2024 guidance:

• Total sales to be between $136 to $144 million, in line with analyst estimates of $139.8 million
• Adjusted EBITDA guidance to be $27.5 to $32.5 million, in line with analyst estimates of $30.0 million

SPOK is a comprehensive provider of wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors. 

Spok Holdings, Inc. (NASDAQ:SPOK) ($15.01; $302.2M market cap) - As we go through our conference call reviews ahead of Q1 reports, we wanted to share a  quote from SPOK that indicates Q1 should be strong and could lead to them to raise guidance which they have done a number of times last year. 

“For example, some of the contracts we anticipated to close in the fourth quarter of 2023 were postponed to the beginning of the year and consequently 2024 has started out extremely strong. In fact, January was a company record and February has been strong as well. So we did not spend a great deal of time analyzing the sales performance of an individual month or quarter as opposed to viewing bookings in the broader context of our pipeline execution and anticipated annual results. We expect 2024 operations bookings to grow well above our 2023 levels.”

Management also stated:

“Of course, like last year, we will review guidance with you on a quarterly basis and make adjustments as appropriate”.

You can see our Q4 earnings release here. 

Third Quarter 2011 Results

• Total revenue for the third quarter was $61.5 million. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $48.6 million, compared to $52.1 million in the second quarter and $56.7 million in the third quarter of 2010. Revenue from the Software business (Amcom Software) was $12.9 million, compared to $13.1 million in the second quarter. Software maintenance revenue was reduced by $1.5 million for purchase accounting adjustments in the third quarter, compared to a reduction of $2.6 million in the second quarter.
• Excluding the purchase accounting adjustments and one-time items, net income for the third quarter of 2011 would have been $11.6 million, or $0.51 per fully diluted share, compared to $14.9 million, or $0.66 per fully diluted share, for the second quarter of 2011 and $13.2 million, or $0.59 per fully diluted share, for the third quarter of 2010.

“Despite a still challenging economy, we again made excellent progress during the quarter in both our Wireless and Software businesses,” said Vincent D. Kelly, president and chief executive officer. “Results either met or exceeded our key performance targets and were consistent with the adjusted financial guidance we revised last quarter. On the Wireless side, we were pleased to see continued improvement in the annual rate of paging subscriber and revenue erosion, while posting record margins. This will be the seventh consecutive year since our formation in late 2004 where we have expanded our operating margins. Additionally, our Software subsidiary, Amcom Software, recorded a strong quarter in a tough economic environment with solid bookings and a growing backlog. In addition, we continued to maintain high operating margins, reduce expenses, pay down debt incurred with the Amcom acquisition, and generate sufficient cash flow to again return capital to stockholders in the form of dividend distributions.”

Regarding financial guidance for 2011, Endsley said the Company is maintaining its prior guidance based on current trends. The Company provides financial guidance (schedule attached) for both the full-year, assuming the acquisition of Amcom Software had occurred on January 1, 2011, and with an adjusted guidance range, which reflects Software’s results from March 3, 2011 (the date of the acquisition) along with the required purchase accounting adjustments to maintenance revenue. As such, Endsley said the Company expects total revenues for 2011 to range from $235 million to $248 million, with Wireless between $193 million and $200 million and Software between $42 million and $48 million; operating expenses (excluding depreciation, amortization and accretion) to range from $162 million to $174 million, with Wireless between $127 million and $134 million and Software between $35 million and $40 million; and capital expenses to range from $6.5 million to $9 million, with Wireless between $6 million and $8 and Software between $0.5 million and $1 million.

Second quarter ended June 30, 2011

Total revenue for the second quarter was $65.2 million, including $52.1 million from the Company’s Wireless business (USA Mobility Wireless) and $13.1 million from its Software business (Amcom Software). Software maintenance revenue was reduced by $2.6 million for purchase accounting adjustments. Wireless revenue was $52.1 million compared to $52.5 million in the first quarter and $59.1 million in the second quarter of 2010. Software revenue was $13.1 million compared to $4.8 million in the first quarter, which included results for only the 29-day period from March 3, 2011 to March 31, 2011 and purchase accounting adjustments of $0.9 million.

Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $21.4 million, including $20.4 million from Wireless and $1.0 million from Software. EBITDA from Wireless was $20.4 million compared to $17.0 million in the prior quarter and $20.4 million in the year-earlier quarter. EBITDA from Software was $1.0 million compared to $0.9 million in the first quarter, which reflected results for only the 29-day period ended March 31, 2011. Excluding the purchase accounting adjustments, second quarter EBITDA would have been $24.1 million or 35.5 percent of revenue.

Net income for the second quarter was $18.6 million, or $0.82 per fully diluted share, compared to $13.1 million, or $0.58 per fully diluted share, in the year-earlier quarter. Excluding the purchase accounting adjustments, net income for the second quarter would have been $20.6 million or $0.91 per fully diluted share.

GuidanceCompany expects total revenues for 2011 to range from $235 million to $248 million (versus earlier guidance of $224 million to $240 million)

• Total revenue for the second quarter was $65.2 million, including $52.1 million from the Company’s Wireless business (USA Mobility Wireless) and $13.1 million from its Software business (Amcom Software). Software maintenance revenue was reduced by $2.6 million for purchase accounting adjustments. Wireless revenue was $52.1 million compared to $52.5 million in the first quarter and $59.1 million in the second quarter of 2010. Software revenue was $13.1 million compared to $4.8 million in the first quarter, which included results for only the 29-day period from March 3, 2011 to March 31, 2011 and purchase accounting adjustments of $0.9 million.

• Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $21.4 million, including $20.4 million from Wireless and $1.0 million from Software. EBITDA from Wireless was $20.4 million compared to $17.0 million in the prior quarter and $20.4 million in the year-earlier quarter. EBITDA from Software was $1.0 million compared to $0.9 million in the first quarter, which reflected results for only the 29-day period ended March 31, 2011. Excluding the purchase accounting adjustments, second quarter EBITDA would have been $24.1 million or 35.5 percent of revenue.

• Net income for the second quarter was $18.6 million, or $0.82 per fully diluted share, compared to $13.1 million, or $0.58 per fully diluted share, in the year-earlier quarter. Excluding the purchase accounting adjustments, net income for the second quarter would have been $20.6 million or $0.91 per fully diluted share

Regarding financial guidance for 2011, Endsley said the Company revised and improved its prior guidance for the full year based primarily on the strong performance of its Wireless business. In schedules attached to this press release, the full-year adjusted guidance reflects Software’s results for the partial year (March 3 to December 31) as well as the required purchase accounting adjustments for deferred revenue. As such, Endsley said the Company expects

• total revenues for 2011 to range from $235 million to $248 million (versus earlier guidance of $224 million to $240 million), with Wireless between $193 million and $200 million (up from $182 million and $192 million) and Software between $42 million and $48 million;

• operating expenses (excluding depreciation, amortization and accretion) to range from $162 million to $174 million (versus earlier guidance of $167 million to $176 million), with Wireless between $127 million and $134 million (versus $132 million and $136 million) and Software between $35 million and $40 million;

• capital expenses to range from $6.5 million to $9 million (versus prior guidance of $6 million to $9 million), with Wireless between $6 million and $8 million (versus $5 million and $7 million) and Software between $0.5 million and $1 million (versus $1 million and $2 million).