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PAGING NETWORK ANNOUNCES CONTINUED GROWTH

 PAGING NETWORK ANNOUNCES CONTINUED GROWTH
 DALLAS, Oct. 27 /PRNewswire/ -- Paging Network, Inc. (NASDAQ: PAGE)


today reported record-setting growth in net revenues, operating cash flow and subscribers for the third quarter, ended Sept. 30, 1992.
 Net revenues (revenues from services, rent and maintenance plus product sales less cost of products sold) for the third quarter of 1992 were $58.5 million, a 47.0 percent increase over the $39.8 million reported for the third quarter of 1991. On a comparable basis, that is operations open at least a year, net revenues were $58.0 million, a 45.7 percent increase over the third quarter of 1991.
 Operating cash flow (earnings before interest, taxes, depreciation and amortization), which is the key performance measure in the paging industry, totaled $19.0 million for the third quarter of 1992, a 25.6 percent increase over the $15.1 million for the corresponding quarter of 1991. Operating cash flow margins for the third quarter of 1992 were 32.5 percent, compared to 38.1 percent for the prior-year third quarter. On a comparable basis, operating cash flow was $21.4 million, a 41.6 percent increase over the third quarter of 1991. Operating cash flow margins on a comparable basis were 37.0 percent for the third quarter 1992.
 "We are very pleased with the continued strong performance of the company," said Terry L. Scott, senior vice president-finance and administration and chief financial officer. "As expected, operating cash flow margins have been impacted by our expansion into new geographic areas of the country. Comparable operating cash flow margins have also been impacted, primarily because we have not attempted to allocate corporate and regional overhead expenses between start-up and existing operations. All corporate and regional overhead expenses, therefore, are included in comparable data."
 Paging Network added 221,081 pagers to service in the quarter for a total at Sept. 30, 1992 of 1,853,915 pagers in service with subscribers, a 60.8 percent increase over the 1,153,264 pagers in service at Sept. 30, 1991 and a 13.5 percent increase over the 1,632,834 pagers in service at June 30, 1992. On a comparable basis, subscribers in service totaled 1,828,531, a 58.6 percent increase over the corresponding quarter of 1991 and 12.4 percent over June 30, 1992.
 "As expected, the bulk of our increase in pagers in service has come from established, rather than newly opened, operations," said Scott. "Sales through both direct and indirect sales channels remain strong."
 Net loss for the third quarter was $2.8 million, or a loss of $0.09 per share, compared to a net loss of $2.4 million, or a loss of $0.09 per share, for the corresponding quarter of 1991.
 For the nine months ended Sept. 30, 1992, net revenues were $158.6 million, a 45.1 percent increase over the $109.3 million for the first nine months of 1991. On a comparable basis, net revenue was $158.0 million, a 44.6 percent increase over the nine-month period of 1991.
 Operating cash flow for the nine months of 1992 was $55.4 million, a 37.0 percent increase over the $40.4 million reported for the first nine months of 1991. Operating cash flow on a comparable basis was $58.7 million, a 45.1 percent increase over the first nine months of 1991. Operating cash flow margins for the nine-month periods were 34.9 percent in 1992 and 37.0 percent in 1991. On a comparable basis, operating cash flow margins for the nine months of 1992 were 37.1 percent.
 Net loss for the nine months of 1992 was $17.4 million, including an extraordinary charge of $14.9 million, or $0.44 per share, in the second quarter to terminate certain interest rate swaps and to write-off loan origination fees associated with the company's prior Credit Agreement for its senior bank debt. These charges were a result of repaying indebtedness under the then outstanding Credit Agreement from the proceeds of the sale of the company's $200 million 11.75 percent Senior Subordinated Notes. The company incurred a loss before extraordinary item of $2.6 million, or a loss of $0.08 per share, for the nine months ended 1992 compared to a loss before extraordinary item of $9.7 million, or a loss of $0.36 per share, for the first nine months of 1991.
 Paging Network had announced it will open 13 new sales and service subsidiaries in 1992. Through the third quarter the company has opened nine operations, in Dallas/Fort Worth, Texas; Atlanta, Ga.; Sacramento, Calif.; Cincinnati/Dayton, Columbus and Cleveland/Akron, Ohio; Pittsburgh, Pa.; Tampa/St. Petersburg, Fla; and Las Vegas, Nev. In the fourth quarter the company has already opened Orlando/Jacksonville, Fla. and Norfolk/Richmond, Va. and will open previously announced sales and service operations in Denver, Colo. and San Antonio/Austin, Texas.
 Paging Network is the largest and fastest growing provider of paging services in the United States, offering local, regional and nationwide paging service. Including the new 1992 operations and operations the company has previously announced it will open in the first quarter of 1993 -- Seattle, Wash.; Portland, Ore.; Charlotte, Greensboro and Raleigh, N.C.; Kansas City, Mo.; and Indianapolis, Ind. -- Paging Network provides service in 26 states and the District of Columbia.
 PAGING NETWORK, INC.
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands, except per share and pagers in service information)
 Three Months Nine Months
 Ended Ended
 September 30, September 30,
 1992 1991 1992 1991
 Services, rent &
 maintenance revenues $ 54,079 $ 37,782 $ 147,012 $ 104,735
 Product sales 14,142 5,929 35,600 12,613
 Cost of products sold (9,715) (3,922) (23,986) (8,025)
 58,506 39,789 158,626 109,323
 Operating expenses:
 Services, rent &
 maintenance 10,406 6,521 27,316 18,172
 Selling 9,384 5,677 23,673 15,347
 General & administrative 19,690 12,445 52,203 35,355
 Depreciation and
 amortization 15,349 10,563 41,407 29,655
 Total operating expenses 54,829 35,206 144,599 98,529
 Operating income 3,677 4,583 14,027 10,794
 Interest expense 6,507 6,941 16,587 20,469
 Loss before extraordinary
 item (2,830) (2,358) (2,560) (9,675)
 Extraordinary item -- -- (14,884) --
 Net loss $ (2,830) $ (2,358) $ (17,444) $ (9,675)
 Loss before extraordinary
 item per share $ (0.09) $ (0.09) $ (0.08) $ (0.36)
 Extraordinary item per
 share -- -- (0.44) --
 Net loss per share $ (0.09) $ (0.09) $ (0.52) $ (0.36)
 Operating cash flow 19,026 15,146 55,434 40,449
 Long-term debt 216,500 250,500 216,500 250,500
 Pagers in service 1,853,915 1,153,264 1,853,915 1,153,264
 Number of shares
 outstanding 33,510,271 26,517,940 33,510,271 26,517,940
 Summary of Selected Data
 (Unaudited)
 (In thousands, except percent and pagers in service information)
 Three Months Ended Sept. 30,
 All Operations Comparable Data (A)
 1992 1991 1992 Pct. change
 Net revenues (services,
 rent and maintenance plus
 product sales less cost
 of products sold) $ 58,506 $ 39,789 $ 57,964 45.7 percent
 Operating cash flow
 (earnings before interest,
 taxes, depreciation and
 amortization) $ 19,026 $ 15,146 $ 21,449 41.6 percent
 Pagers in service 1,853,915 1,153,264 1,828,531 58.6 percent
 Nine Months Ended Sept. 30,
 All Operations Comparable Data (A)
 1992 1991 1992 Pct. change
 Net revenues $ 158,626 $ 109,323 $ 158,048 44.6 percent
 Operating cash flow $ 55,434 $ 40,449 $ 58,707 45.1 percent
 Pagers in service 1,853,915 1,153,264 1,828,531 58.6 percent
 (A) Operations open at least a year. Percent change calculated as 1992 comparable data compared to 1991 data.
 -0- 10/27/92
 /CONTACT: Jenny Haynes of Paging Network, Inc., 214-985-6986/
 (PAGE) CO: Paging Network, Inc. ST: Texas IN: TLS SU:


PS -- NY029 -- 5238 10/27/92 09:33 EST
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