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PAGING NETWORK REPORTS CONTINUED STRONG PERFORMANCE IN THIRD QUARTER

 DALLAS, Oct. 29 /PRNewswire/ -- Paging Network, Inc. (NASDAQ-NMS: PAGE), today reported continued strong performance in net revenues, operating cash flow and pagers in service for the third quarter, ended Sept. 30, 1993.
 Net revenues (revenues from services, rent and maintenance plus product sales less cost of products sold) for the third quarter of 1993 were $81,757,000, a 39.7 percent increase over the $58,506,000 reported for the third quarter of 1992. On a comparable basis (operations open more than a year, that is operations opened through the third quarter of 1992) net revenues were $79,384,000, a 35.7 percent increase over the third quarter of 1992.
 Operating cash flow (earnings before interest, income taxes, depreciation and amortization), which is the key performance measure in the paging industry, totaled $27,303,000 for the third quarter of 1993, a 43.5 percent increase over the $19,026,000 for the corresponding quarter of 1992. On a comparable basis, operating cash flow was $29,991,000, a 57.6 percent increase over the third quarter of 1992.
 Operating cash flow margins for the 1993 third quarter were 33.4 percent, compared to 32.5 percent for the prior year third quarter. Operating cash flow margins on a comparable basis were 37.8 percent for the third quarter of 1993.
 During the quarter, the company added 236,360 pagers to service for a total of 2,830,019 at Sept. 30, 1993, a 52.7 percent increase over the 1,853,915 pagers in service at Sept. 30, 1992 and a 9.1 percent increase over the 2,593,659 pagers in service at June 30, 1993. On a comparable basis, pagers in service totaled 2,742,641, a 47.9 percent increase over the corresponding quarter of 1992 and a 5.7 percent increase over June 30, 1993.
 "We continue to make outstanding progress in reaching another record year," said Terry L. Scott, president of the company. "Our operating cash flow and margin performance were strong, especially given the pace of our geographic expansion. We've opened 18 new sales and service operations since May 1992, half of which have been opened less than a year. These new operations are following the financial performance pattern of our more mature operations, each of which has achieved positive cash flow during their second year of operation and reached what we consider mature operating cash flow margins in the mid-40 percent range by the fourth year."
 The company also noted the 236,360 net new subscribers added during the quarter was impacted by its decision earlier this year to discontinue marketing through national and regional retailers, a distribution channel which had proven financially unattractive due to low margins and high customer
cancellation rate. "The total net new subscribers for the quarter has suffered from this decision," said Scott, "but, more importantly, our cash flow and cash flow margins have improved. In addition, the direct sales channel continues its strong performance."
 Net loss for the third quarter was $4,598,000, or $0.09 per share, compared to a net loss of $2,830,000, or a loss of $0.06 per share, in the third quarter of 1992. All per share information reflects a three for two split of the company's common stock. Record date for the split was Oct. 1, 1993.
 For the nine months ended Sept. 30, 1993, net revenues were $225,872,000, a 42.4 percent increase over the $158,626,000 reported for the first nine months of 1992. Net revenues on a comparable basis were $220,738,000, a 39.2 percent increase over the first nine months of 1992.
 Operating cash flow for the first nine months of 1993 was $70,976,000, a 28.0 percent increase over the $55,434,000 reported for the first nine months of 1992. Operating cash flow on a comparable basis was $78,752,000, a 42.1 percent increase over the first nine months of 1992.
 Operating cash flow margins for the first nine-month period of 1993 were 31.4 percent, compared to 34.9 percent for the corresponding period of 1992. On a comparable basis, operating cash flow margins were 35.7 percent for the first nine months of 1993.
 Net loss for the nine months of 1993 was $15,331,000, or a loss of $0.30 per share, compared to a net loss of $17,444,000, or a loss of $0.35 per share, for the corresponding period of 1992. The 1992 period included an extraordinary charge $14,884,000 as 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 $2,560,000, or a loss of $0.05 per share, in the nine-month period of 1992.
 Paging Network is the largest and fastest growing provider of paging services in the United States. The company provides local, regional and nationwide paging service.
 PAGING NETWORK, INC.
 Consolidated Statements of Operations
 (Unaudited, in thousands, except share, per share
 and pagers in service information)
 Period ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 Services, rent
 and maintenance
 revenues $ 77,607 $ 54,079 $213,370 $147,012
 Product sales 20,128 14,142 59,778 35,600
 Cost of products
 sold (15,978) (9,715) (47,276) (23,986)
 Total 81,757 58,506 225,872 158,626
 Operating expenses:
 Services, rent
 and maintenance 15,208 10,406 41,877 27,316
 Selling 11,573 9,384 33,100 23,673
 General and
 administrative 27,673 19,690 79,919 52,203
 Depreciation and
 amortization 23,327 15,349 62,105 41,407
 Total operating
 expenses 77,781 54,829 217,001 144,599
 Operating income 3,976 3,677 8,871 14,027
 Interest expense (8,574) (6,507) (24,202) (16,587)
 Loss before extra-
 ordinary item (4,598) (2,830) (15,331) (2,560)
 Extraordinary item --- --- --- (14,884)
 Net loss $ (4,598) $ (2,830) $(15,331) $(17,444)
 Loss before extra-
 ordinary item
 per share $ (0.09) $ (0.06) $ (0.30) $ (0.05)
 Extraordinary item
 per share --- --- --- (0.30)
 Net loss per
 share $ (0.09) $ (0.06) $ (0.30) $ (0.35)
 Operating cash
 flow $ 27,303 $ 19,026 $ 70,976 $ 55,434
 Long-term debt $313,500 $216,500 $313,500 $216,500
 Pagers in
 service 2,830,019 1,853,915 2,830,019 1,853,915
 Number of shares
 outstanding 50,482,189 50,265,406 50,482,189 50,265,406
 Summary of Selected Data
 (Unaudited, in thousands, except percent
 and pagers in service information)
 Three Months Ended Percent
 Sept. 30, 1993 1992 1993 Change
 All Operations Comparable data (A)
 Net revenues
 (services, rent and
 maintenance plus
 product sales less
 cost of products
 sold) $ 81,757 $ 58,506 $ 79,384 35.7
 Operating cash flow
 (earnings before
 interest, income
 taxes, depreciation
 and amortization) $ 27,303 $ 19,026 $ 29,991 57.6
 Operating cash flow
 margins 33.4 pct. 32.5 pct. 37.8 pct. ---
 Pagers in service 2,830,019 1,853,915 2,742,641 47.9
 Nine Months Ended Percent
 Sept. 30, 1993 1992 1993 Change
 All Operations Comparable Data (A)
 Net revenues $225,872 $158,626 $220,738 39.2
 Operating cash flow $ 70,976 $ 55,434 $ 78,752 42.1
 Operating cash flow
 margins 31.4 pct. 34.9 pct. 35.7 pct. ---
 Pagers in service 2,830,019 1,853,915 2,742,641 47.9
 (A) Comparable operations are those open at least a year. For the third quarter of 1993, comparable data includes operations opened prior to Sept. 30, 1992. Percent change is calculated as 1993 comparable data compared to 1992 data.
 -0- 10/28/93
 /CONTACT: Jenny Haynes of Paging Network, 214-985-6749/
 (PAGE)


CO: Paging Network, Inc. ST: Texas IN: TLS SU: ERN

MP -- NY013 -- 8365 10/29/93 09:09 EDT
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Date:Oct 29, 1993
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