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PAGING NETWORK ANNOUNCES CONTINUED GROWTH

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


today reported record-setting growth in net revenues, operating cash flow and subscribers for the second quarter, ended June 30, 1992.
 Net revenues (revenues from services, rent and maintenance plus product sales less cost of products sold) for the second quarter of 1992 were $52.8 million, a 46.6 percent increase over the $36 million reported for the second quarter of 1991. On a comparable basis, that is operations open at least a year, net revenues were $52.7 million, a 46.5 percent increase over the second quarter of 1991.
 Operating cash flow (earnings before interest, taxes, depreciation and amortization), which is the key performance measure in the paging industry, totaled $18.6 million for the second quarter of 1992, a 41.1 percent increase over the $13.2 million for the corresponding quarter of 1991. Operating cash flow margins for the second quarter of 1992 were 35.3 percent, compared to 36.7 percent for the prior-year second quarter. On a comparable basis, operating cash flow was $19.5 million, a 47.5 percent increase over the second quarter 1991. Operating cash flow margins on a comparable basis were 36.9 percent for the second quarter 1992.
 At June 30, 1992, Paging Network had 1,632,834 pagers in service with subscribers, a 57.6 percent increase over the 1,036,166 pagers in service at June 30, 1991, and a 13.5 percent increase over the 1,438,983 pagers in service at March 31, 1992. On a comparable basis, subscribers in service totaled 1,627,341, a 57.1 percent increase over the corresponding quarter of 1991 and 13.1 percent over March 31, 1992.
 "These financial results illustrate the fundamental strengths of Paging Network," said Terry L. Scott, senior vice president-finance and administration and chief financial officer. "Our operations are continuing to experience significant growth from both traditional pager users and subscribers new to paging. At the same time, we are aggressively opening new markets following our proven strategy of providing low-cost, high-quality paging service. By following this strategy, we believe our new operations will repeat the successes of our other operations and gain significant market share and operating cash flow margins."
 Paging Network has opened five new sales and service subsidiaries in 1992. Those new operations -- Dallas/Fort Worth; Atlanta; Sacramento, Calif.; and Cincinnati/Dayton and Columbus, Ohio -- were opened in the second quarter. The company opened the Cleveland operation in July and, as previously announced, will open Pittsburgh; Tampa/St. Petersburg, Fla.; Las Vegas, Nev.; and Norfolk/Richmond, Va., later this year.
 Because of the success of the newly opened operations, the company said in 1992, it also expects to open sales and service subsidiaries in Orlando/Jacksonville, Fla.; Denver; and San Antonio/Austin, Texas. As a result of these new operations and the accelerating growth rate of existing operations, capital expenditures for 1992 are expected to be approximately 25 percent higher than previously expected.
 "We have been pleased with the results of the operations opened thus far in 1992," said Scott. "Because of their success and the opportunities available in other new markets, we elected to accelerate our planned expansion program."
 Net loss for the second quarter was $15.5 million, or 46 cents per share. The loss includes a previously announced extraordinary charge of $14.9 million, or 44 cents per share, to terminate certain interest rate swaps and to write-off loan origination fees associated with the company's credit agreement for the senior bank debt. These charges were a result of repaying indebtedness under the then-outstanding credit agreement with proceeds from the sale of the company's $200 million 11.75 percent senior subordinated notes. Net loss before extraordinary item for the second quarter was $0.6 million, or 2 cents per share, an 83.2 percent increase over the $3.5 million net loss before extraordinary item for the corresponding quarter of 1991.
 For the six months ended June 30, 1992, net revenues were $100.1 million, a 44 percent increase over the $69.5 million for the first six months of 1991. Net revenues from start-up operations were negligible.
 Operating cash flow for the six months of 1992 was $36.4 million, a 43.9 percent increase over the $25.3 million reported for the first six months of 1991. Operating cash flow on a comparable basis was $37.3 million, a 47.2 percent increase over the first six months of 1991. Operating cash flow margins for the six-month period of 1992 and 1991 were 36.4 percent. On a comparable basis, operating cash flow margins were 37.2 percent for the first six months of 1992.
 Net loss for the six months was $14.6 million, including the extraordinary charge in the second quarter. The company recognized income before extraordinary item of $0.3 million for the six months ended 1992 compared to a loss before extraordinary item of $7.3 million for the first six months of 1991.
 Paging Network is the largest and fastest growing provider of paging services in the United States. The company's local, regional and nationwide paging service is available in 22 states and the District of Columbia.
 PAGING NETWORK, INC.
 Consolidated Statements of Operations
 (Unaudited; in thousands, except per
 share and pagers in service information)
 Periods ended Three Months Six Months
 June 30 1992 1991 1992 1991
 Services, rent
 & maintenance
 revenues $48,724 $34,711 $92,933 $66,953
 Product sales 11,841 3,629 21,458 6,684
 Cost of
 products sold (7,787) (2,348) (14,271) (4,103)
 Total 52,778 35,992 100,120 69,534
 Operating expenses:
 Services, rent
 & maintenance 9,290 5,915 16,910 11,651
 Selling 7,840 5,071 14,289 9,670
 General
 & administrative 17,030 11,808 32,513 22,910
 Depreciation and
 amortization 13,555 9,927 26,058 19,092
 Total operating
 expenses 47,715 32,721 89,770 63,323
 Operating income 5,063 3,271 10,350 6,211
 Interest expense 5,646 6,737 10,080 13,528
 Income (loss)
 before extra-
 ordinary item (583) (3,466) 270 (7,317)
 Extraordinary
 item (14,884) -- (14,884) --
 Net loss (15,467) (3,466) (14,614) (7,317)
 Income (loss)
 before extraordinary
 item per share $(0.02) $(0.13) $0.01 $(0.27)
 Extraordinary
 item per share (0.44) -- (0.44) --
 Net loss per
 share (0.46) (0.13) (0.43) (0.27)
 Operating cash
 flow 18,618 13,198 36,408 25,303
 Long-term debt 200,000 244,500 200,000 244,500
 Pagers in
 service 1,632,834 1,036,166 1,632,834 1,036,166
 Number of
 shares
 outstanding 33,495,954 26,517,940 33,495,954 26,517,940
 Summary of Selected Data
 (Unaudited; in thousands, except percent and
 pagers in service information)
 Three months ended All Operations Comparable Data(A)
 June 30 1992 1991 1992 Pct. Change
 Net revenues (services,
 rent and maintenance plus
 product sales less cost
 of products sold) $52,778 $35,992 $52,742 46.5
 Operating cash flow
 (earnings before
 interest, taxes,
 depreciation and
 amortization) 18,618 13,198 19,468 47.5
 Pagers in service 1,632,834 1,036,166 1,627,341 57.1
 Six months ended All Operations Comparable Data(A)
 June 30 1992 1991 1992 Pct. Change
 Net revenues $100,120 $69,534 $100,084 44.0
 Operating cash flow 36,408 25,303 37,258 47.2
 Pagers in service 1,632,834 1,036,166 1,627,341 57.1
 (A) -- Operations open at least a year. Percent change calculated as 1992 comparable data compared to 1991 data.
 -0- 7/27/92
 /CONTACT: Jenny Haynes of Paging Network, 214-985-6986/
 (PAGE) CO: Paging Network Inc. ST: Texas IN: TLS SU: ERN


CK -- NY056 -- 3480 07/27/92 11:33 EDT
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