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DIAL PAGE INC. CONTINUES STRONG GROWTH PERFORMANCE IN SECOND QUARTER

 GREENVILLE, S.C., July 21 /PRNewswire/ -- Dial Page, Inc. (NASDAQ-NMS: DPGE) today reported second-quarter revenues of $14.7 million, a 13.3 percent increase from $13.0 million for the same period a year ago. The number of pagers in service grew more than 20 percent from a year earlier, while the net loss narrowed to eight cents a share from 45 cents.
 For the quarter ended June 30, 1993, operating cash flow -- or earnings before depreciation, amortization, interest and taxes -- the key performance measure in the paging industry -- rose 11.5 percent to $5.3 million from $4.8 million in the year-earlier period.
 "The continued growth in revenue and operating cash flow reflects the significant ongoing expansion of our customer base," said Jeffrey R. Hultman, Dial Page President and Chief Executive Officer. "We see this trend continuing in the current quarter."
 After interest expense, taxes, depreciation and amortization, the second- quarter net loss totaled $566,000, or eight cents a share. In the year-earlier quarter, Dial Page lost $2.2 million, or 45 cents a share. During the latest quarter, Dial Page reversed $850,000 of the $1.7 million that previously had been recorded as a loss contingency. The loss contingency was related to an Internal Revenue Service examination and disallowance of deductions for the amortization of customer lists and non-compete agreements and related payments to retiring partners. The reversal was a result of the U.S. Supreme Court decision in the Newark Morning Ledger Co. case.
 During the quarter, Dial Page management implemented a strategy to sell pagers through a retail distribution network. "This strategy, which is a supplement to our traditional direct sales approach, represents an excellent opportunity to build revenues and unit volume by expanding our market reach," Mr. Hultman said. "Retail distribution is characterized by high up- front sales and marketing costs, which initially slow operating cash flow growth. These are one-time costs, however, and the monthly revenues generated by these products quickly exceed expenses. We expect this retail program to contribute to operating cash flow growth within a year."
 Primarily because of costs related to the retail strategy, the second-quarter pace of operating cash flow growth slowed from the 16.6 percent rate experienced during the first quarter, while operating expenses increased approximately 14.3 percent to $9.4 million from $8.2 million a year ago.
 Retail distribution contributed 6,529, or 22 percent, of the total 29,086 net gain in units in service for the first six months of 1993.
 Pagers in service totaled 233,672 as of June 30, a 22.1 percent gain from 191,452 a year earlier and a 14.2 percent increase from 204,586 at the end of 1992. This represents about a 25 percent cumulative annual growth rate for the year to date and a 30 percent rate for the second quarter.
 Market penetration of the Dial Page MessageWriter(R) alphanumeric pagers -- paging devices that store and deliver text messages on a liquid crystal display -- grew by 4,226 units during the quarter, bringing the total to 34,889, or 14.9 percent of all Dial Page units in service. This compares with 23,252 alphanumeric pagers accounting for 12.2 percent of total pagers in service at June 30, 1992, and 27,964 alphanumerics representing 13.7 percent of total pagers in service at year-end 1992.
 "This is a high-margin, enhanced-value product that offers increased functionality to the customer while generating increased per-unit revenue and, in turn, greater operating cash flow for Dial Page," Mr. Hultman said. "It represents a good example of our successful enhanced- services strategy, which makes us an industry leader in implementing these services and distinguishes us from the competition."
 Average monthly revenues per unit (ARPU) totaled $21.81 at June 30, well above the industry average, but down from $22.85 at year-end 1992 and $22.00 at the end of the first quarter. This was a result of the retail program, which has a lower ARPU because the customer is buying the unit rather than renting it, the impact of acquired units, continued emphasis on long-term contracts and ongoing industry-wide pricing competition.
 For the first six months, operating cash flow increased 14 percent to $10.6 million from $9.3 million in the year-earlier period. Revenues advanced 13.2 percent to $28.7 million from $25.3 million, and the net loss narrowed to $3.6 million, or 53 cents a share, from $5.9 million, or $1.17 a share, in the year- ago period. The six-month loss included a first-quarter extraordinary charge of $1.58 million, or 23 cents a share, for costs associated with early repayment of debt.
 Based in Greenville, S.C., Dial Page provides paging and messaging services in the Southeast and has announced plans to build an enhanced Specialized Mobile Radio Network in the region.
 DIAL PAGE FINANCIAL HIGHLIGHTS
 (unaudited)
 dollars in thousands, except per-share data
 Three Months Ended Six Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Revenues $ 14,709 $ 12,985 $ 28,672 $ 25,318
 Operating Expenses $ 9,368 $ 8,197 $ 18,094 $ 16,038
 Operating Cash
 Flow $ 5,341 $ 4,788 $ 10,578 $ 9,280
 Depreciation &
 Amortization $ 3,918 $ 4,459 $ 8,136 $ 8,830
 Operating Income $ 1,423 $ 329 $ 2,442 $ 450
 Interest Expense $ 2,761 $ 2,495 $ 5,105 $ 5,239
 Other Income
 (Expenses) $ 772 $ (75) $ 612 $ (1,070)
 Net Loss $ 566 $ 2,241 $ 3,628 (A) $ 5,859
 Net Loss Per Share $ 0.08 $ 0.45 $ 0.53 (A) $ 1.17
 Weighted Average
 Number of Shares
 Outstanding 6,771 5,000 6,771 5,000
 (A) Includes extraordinary charge of $1,577,000, or 23 cents a share, to write off loan-origination fees associated with the company's prior credit agreements for its senior bank debt. This charge was a result of repaying such indebtedness from the proceeds of the sale of the company's $85 million 12.25 percent senior notes.
 OTHER HIGHLIGHTS
 For Six Months Ended June 30, 1993 1992
 Pagers In Service 233,452 191,452
 Alphanumeric pagers as percent
 of Total Pagers In Service 14.9 12.2
 Monthly Cash Flow Per Pager $ 8.05 $ 8.35
 Operating Cash Flow Margin 36.9pct. 36.7pct.
 Average Monthly Rev. Per Pager $ 21.81 $ 22.78
 CONSOLIDATED BALANCE SHEETS
 (1992 balance sheet has been audited)
 In thousands June 30, 1993 December 31, 1992
 Current Assets $ 8,138 $11,696
 Property And Equipment, Net 29,287 25,324
 Other Assets, Net 37,606 36,848
 Total Assets $75,031 $73,868
 Current Liabilities $11,607 $10,849
 Long-term Debt 89,833 85,887
 Stockholder's Deficit (26,409) (22,868)
 Total Liabilities and
 Stockholder's Deficit $75,031 $73,868
 -0- 7/21/93
 /CONTACT: Thomas A. Grina, Chief Financial Officer, Dial Page Inc., 803-242-0234/
 (DPGE)


CO: Dial Page, Inc. ST: South Carolina IN: TLS SU: ERN

SB -- CH014 -- 3979 07/21/93 13:19 EDT
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Date:Jul 21, 1993
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