USA Mobility USMO today announced operating results for the fourth quarter and year ended December 31, 2010.
In addition, the Company's Board of Directors declared a regular quarterly dividend distribution of $0.25 per share. The dividend distribution will be paid on March 31, 2011 to stockholders of record on March 17, 2011.
For the fourth quarter, total revenues were $54.6 million, compared to $56.7 million in the third quarter of 2010 and $65.4 million in the fourth quarter of 2009. EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) was $16.9 million in the fourth quarter of 2010, compared to $21.0 million in the year-earlier quarter. Fourth quarter operating income was $12.7 million, compared to $12.2 million in the fourth quarter of 2009. Fourth quarter results were negatively impacted by a one-time litigation settlement expense of $2.1 million in connection with breach of contract claims and by $1.7 million in severance expenses for planned headcount reductions in 2011. Absent the one-time litigation settlement and severance expenses, operating income would have been $16.5 million and EBITDA $20.7 million.
Net income for the fourth quarter of 2010 was $40.5 million, or $1.82 per fully diluted share, compared to $3.6 million, or $0.16 per fully diluted share, in the year-earlier quarter. The significant increase in net income in the fourth quarter was largely the result of a $32.9 million decrease in the deferred income tax asset valuation allowance, which adjusted the balance of deferred income tax assets to their estimated realizable amounts. This resulted in an offsetting benefit to income tax expense. Excluding the income tax benefit, the one-time litigation settlement and severance expenses, net income in the fourth quarter would have been $10.0 million, or $0.45 per fully diluted share.
For the full-year 2010, revenues totaled $233.3 million, compared to $289.7 million in 2009, while EBITDA was $81.3 million, or 34.9 percent of revenue, compared to $99.3 million, or 34.3 percent of revenue, in the prior year. The Company reported net income for 2010 of $77.9 million, or $3.45 per fully diluted share, compared to a net income of $67.6 million, or $2.90 per fully diluted share, for 2009.
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