株探米国株
日本語 英語
エドガーで原本を確認する
false000128994500012899452024-02-212024-02-21

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 21, 2024
 
SPOK HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
 
 
Delaware   001-32358   16-1694797
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)
 
5911 Kingstowne Village Pkwy, 6th Floor 22315
Alexandria, Virginia
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: (800) 611-8488
Not Applicable
Former name or former address, if changed since last report
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading symbol Name of each exchange on which registered
Common Stock, par value $0.0001 per share SPOK NASDAQ



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On February 21, 2024, Spok Holdings, Inc. (the “Company”) issued a press release announcing financial results for the fourth quarter and full year ending December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report.
Item 8.01 Other Events.
On February 21, 2024, the Board declared a regular quarterly dividend of $0.3125 per share of the Company's common stock payable on March 29, 2024, to stockholders of record on March 15, 2024.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
Exhibit
No. Description
99.1





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   
Spok Holdings, Inc.
Date: February 21, 2024   By: /s/ Calvin C. Rice
    Name: Calvin C. Rice
    Title: Chief Financial Officer





EX-99.1 2 ex991earningspressrelease4.htm EX-99.1 Document
Exhibit 99.1
NEWS RELEASE
spok_horxflatx4ca.jpg

CONTACT:
Al Galgano            
952-224-6096        
al.galgano@spok.com    

Spok Reports Fourth Quarter And Full Year 2023 Results
Total annual revenue growth for the first time in the Company's history, with year-over-year growth in both Software and Wireless revenue
2023 Software operations bookings, up 22% from the prior year
Company provides earnings guidance for 2024

Alexandria, Va. (February 21, 2024) - Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the fourth quarter and full year ended December 31, 2023. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on March 29, 2024, to stockholders of record on March 15, 2024.
Recent Highlights:
•Generated net income of $3.4 million, or $0.17 per diluted share, in the fourth quarter, compared to net income of $24.2 million, or $1.21 per diluted share, in the prior year, or $2.3 million and $0.12 per diluted share, when excluding the $21.9 million non-cash tax benefit related to the release of the previously established valuation allowance
•Generated $6.5 million of adjusted EBITDA in the fourth quarter, compared to $5.6 million in the fourth quarter of 2022
•Software operations bookings totaled $4.1 million in the fourth quarter
•2023 Software operations bookings are up more than 22% from 2022
•Fourth quarter 2023 Software operations bookings included 14 six-figure customer contracts
•Fourth quarter 2023 Software revenue totaled $14.9 million, up 4% from the prior year period
•Fourth quarter 2023 Wireless average revenue per unit (ARPU) was $7.84, up on a year-over-year basis, with units in service down 2.5% from the prior quarter and 6.4% on a trailing-twelve-month basis
•Fourth quarter 2023 Wireless revenue of $19.1 million, compared to revenue of $19.0 million in the same period in 2022
Spok.com
spoktweeta08a.jpg
1

Exhibit 99.1
NEWS RELEASE
spok_horxflatx4ca.jpg
•Capital returned to stockholders in 2023 totaled $25.6 million in the form of the Company’s regular quarterly dividend
•Cash and cash equivalents balance of $32.0 million on December 31, 2023, and no debt

"I am so proud of the very strong performance our team was able to deliver in 2023, and their continued dedication to Spok's mission to grow revenue, generate cash flow and return capital to stockholders,” said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. “Last year we achieved numerous operational and financial milestones as a 3.3% year-over-year increase in total revenue, the first in the Company's history, was coupled with a more than 12% decline in operating expenses. In addition, we strengthened our sales team and made tremendous progress in executing our product roadmap and building a robust product pipeline, both in terms of size and quality. We exited last year with record Software backlog levels, which were up nearly 28% from 2022. Software operations bookings for the year totaled $30.1 million and were up 22% from an already strong level of bookings in 2022. Included in this performance were 67 six-figure customer contracts, which exceeded prior year levels. Software operations bookings included the largest customer contract ever signed in the Company's history and we saw a doubling of our average new contract size. Most importantly, last year's performance included 30 multi-year engagements, up approximately 60% from the level generated in 2022. Lastly, we were able to generate this growth, while increasing customer satisfaction scores and retention.

"In short, I believe Spok has done an excellent job of balancing the necessary investments we needed to make in our products and infrastructure in order to fuel future growth, while continuing to create stockholder value and return capital to our stockholders," continued Kelly. "In 2023, we generated nearly $16 million of net income and more than $30 million of adjusted EBITDA, which more than covered the $25.6 million we returned to our stockholders. However, at the same time, we invested more than $10.5 million in our products and services. We remain committed to this approach and believe our extensive experience operating our established and well-regarded communication solutions will create significant value going forward.

"Based on our performance in 2023, and the numerous financial and operational milestones we achieved during the year, we are providing guidance estimates for revenue and adjusted EBITDA generation for this year. This guidance reflects the team's confidence in being able to outpace our 2023 performance. At the midpoint of the guidance range, we believe we are on track to again grow consolidated revenue in 2024, on a year-over-year basis, with slight declines in wireless revenue being more than offset by continued growth in software revenue. We also anticipate that the midpoint of our adjusted EBITDA guidance will be consistent with last year, with additional growth potential at the high-end of the guidance range. Of course, we will continue to update you on our outlook each quarter when we report our results," concluded Kelly.
Spok.com
spoktweeta08a.jpg
2

Exhibit 99.1
NEWS RELEASE
spok_horxflatx4ca.jpg
Financial Highlights:
For the three months ended December 31, For the twelve months ended December 31,
(Dollars in thousands) 2023 2022 Change (%) 2023 2022 Change (%)
Revenue
Wireless revenue
Paging revenue $ 18,220  $ 18,450  (1.2) % $ 73,135  $ 73,323  (0.3) %
Product and other revenue 871  571  52.5  % 2,833  2,299  23.2  %
Total wireless revenue $ 19,091  $ 19,021  0.4  % $ 75,968  $ 75,622  0.5  %
Software revenue
License $ 998  $ 1,269  (21.4) % $ 8,721  $ 7,202  21.1  %
Professional services 3,785  3,063  23.6  % 14,694  12,565  16.9  %
Hardware 587  585  0.3  % 2,675  2,211  21.0  %
Maintenance 9,492  9,317  1.9  % 36,967  36,934  0.1  %
Total software revenue 14,862  14,234  4.4  % 63,057  58,912  7.0  %
Total revenue $ 33,953  $ 33,255  2.1  % $ 139,025  $ 134,534  3.3  %
For the three months ended December 31, For the twelve months ended December 31,
(Dollars in thousands) 2023 2022
Change (%)
2023 2022
Change (%)
GAAP
Operating expenses $ 29,871  $ 30,300  (1.4) % $ 117,797  $ 134,296  (12.3) %
Net income
(1)
$ 3,365  $ 24,226  (86.1) % $ 15,666  $ 21,856  (28.3) %
Cash, cash equivalents, and short-term investments (as of period end) $ 31,989  $ 35,754  (10.5) % $ 31,989  $ 35,754  (10.5) %
Capital returned to stockholders $ 6,238  $ 6,162  1.2  % $ 25,642  $ 25,011  2.5  %
Non-GAAP
Adjusted operating expenses $ 28,765  $ 28,481  1.0  % $ 112,728  $ 123,396  (8.6) %
Adjusted EBITDA $ 6,509  $ 5,647  15.3  % $ 30,342  $ 14,965  102.8  %
(1) For the three months and year ended December 31, 2022 Net income includes a non-cash benefit of $21.9 million related to the release of a previously established valuation allowance in alignment with our projections of future taxable income.
Spok.com
spoktweeta08a.jpg
3

Exhibit 99.1
NEWS RELEASE
spok_horxflatx4ca.jpg
For the three months ended December 31, For the twelve months ended December 31,
(Dollars in thousands, excluding units and service and ARPU) 2023 2022
Change (%)
2023 2022
Change (%)
Key Statistics
Wireless units in service 765  817  (6.4) % 765  817  (6.4) %
Wireless average revenue per unit (ARPU) $ 7.84  $ 7.50  4.5  % $ 7.71  $ 7.34  5.0  %
Software operations bookings(1)
$ 4,112  $ 5,863  (29.9) % $ 30,113  $ 24,692  22.0  %
Software backlog (as of period end) $ 56,231  $ 43,966  27.9  % $ 56,231  $ 43,966  27.9  %
(1) Software operations bookings includes net new (i.e., new customers or incremental add-on sales to existing customers) sales of license, professional services, equipment, and first-year maintenance.
Financial Outlook:
Regarding financial guidance, the Company expects the following for the full year 2024:
(Unaudited and in millions)
Current Guidance
Full Year 2024
From To
Revenue
Wireless $ 72.0  $ 75.0 
Software $ 64.0  $ 69.0 
Total Revenue $ 136.0  $ 144.0 
Adjusted EBITDA $ 27.5  $ 32.5 
2023 Fourth Quarter Call:
Management will host a conference call and webcast to discuss these financial results on Wednesday, February 21, 2024, at 5:00 p.m. Eastern Time. The presentation is open to all interested parties and may include forward-looking information.
Conference Call Details
Date/Time:
Wednesday, February 21, 2024, at 5:00 p.m. ET
Webcast:
https://www.webcast-eqs.com/register/spok_q42023_en/en
U.S. Toll-Free Dial In:
877-407-0890
International Dial In:
1-201-389-0918
Spok.com
spoktweeta08a.jpg
4

Exhibit 99.1
NEWS RELEASE
spok_horxflatx4ca.jpg
To access the call, please dial in approximately ten minutes before the start of the call. For those unable to join the live call, an OnDemand version of the webcast will be available following the call under the URL link and on the investor relations website.




* * * * * * * * *
About Spok
Spok, Inc., a wholly owned subsidiary of Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in Alexandria, Virginia, is proud to be a global leader in healthcare communications. We deliver clinical information to care teams when and where it matters most to improve patient outcomes. Top hospitals rely on the Spok Care Connect® platform to enhance workflows for clinicians and support administrative compliance. Our customers send over 100 million messages each month through their Spok® solutions. Spok enables smarter, faster clinical communication. For more information, visit spok.com or follow @spoktweets on Twitter.
Spok is a trademark of Spok Holdings, Inc. Spok Care Connect and Spok Mobile are trademarks of Spok, Inc.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: adjusted operating expenses and adjusted EBITDA. Adjusted operating expenses excludes depreciation, amortization and accretion expense, impairment of intangible assets and severance and restructuring costs. Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax benefit/expense, depreciation, amortization and accretion expense, stock-based compensation expense, impairment of intangible assets and severance and restructuring. With respect to our expectations under "Financial Guidance" above, reconciliation of adjusted EBITDA to net income is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and uncertainty with respect to certain items included in net income that are excluded from adjusted EBITDA, in particular, income tax benefit / expense, stock-based compensation expenses, impairment of intangible assets, severance and restructuring and other non-recurring expenses. These items can have unpredictable fluctuations based on unforeseen activity that is out of our control and /or cannot be reasonably predicted.
We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Spok's financial condition and results of operations. We use these non-GAAP measures for financial, operational, and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends,
Spok.com
spoktweeta08a.jpg
5

Exhibit 99.1
NEWS RELEASE
spok_horxflatx4ca.jpg
and to generate future operating plans. We believe that these non-GAAP financial measures permit us to more thoroughly analyze key financial metrics used to make operational decisions and allow us to assess our core operating results. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies who present similar non-GAAP financial measures. We adjust for certain items because we do not regard these costs as reflective of normal costs related to the ongoing operation of the business in the ordinary course. In general, these items possess one or more of the following characteristics: non-cash expenses, factors outside of our control, items that are non-operational in nature, and unusual items not expected to occur in the normal course of business. We believe it is important to exclude these costs, given that they do not represent future operational costs under this strategic business plan. This allows us to assess the underlying performance of our core business under this new strategic business plan.
We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principle of these non-GAAP financial measures is that they exclude significant amounts that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.
Safe Harbor Statement under the Private Securities Litigation Reform Act
Statements contained herein or in prior press releases which are not historical fact, such as statements regarding our future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause our actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, our ability to manage wireless network rationalization to lower our costs without causing disruption of service to our customers; our ability to retain key management personnel and to attract and retain talent within the organization; the productivity of our sales organization and our ability to deliver effective customer support; economic conditions such as recessionary economic cycles, higher interest rates, inflation and higher levels of unemployment; risks related to our overall business strategy, including maximizing revenue and cash generation from our established businesses and returning capital to stockholders through dividends and repurchases of shares of our common stock; competition for our services and products from new technologies or those offered and/or developed from firms that are substantially larger and have much greater financial and human capital resources; continuing decline in the number of paging units we have in service with customers, commensurate with a continuing decline in our wireless revenue; our ability to address changing market conditions with new or revised software solutions; undetected defects,
Spok.com
spoktweeta08a.jpg
6

Exhibit 99.1
NEWS RELEASE
spok_horxflatx4ca.jpg
bugs, or security vulnerabilities in our products; our dependence on the U.S. healthcare industry; the sales cycle of our software solutions and services can run from six to eighteen months, making it difficult to plan for and meet our sales objectives and bookings on a steady basis quarter-to-quarter and year-to-year; our reliance on third-party vendors to supply us with wireless paging equipment; our ability to maintain successful relationships with our channel partners; our ability to protect our rights in intellectual property that we own and develop and the potential for litigation claiming intellectual property infringement by us; our use of open source software, third-party software and other intellectual property; the reliability of our networks and servers and our ability to prevent cyber-attacks and other security issues and disruptions; our reliance on data centers and other systems and technologies provided by third parties, and technology systems and electronic networks supplied and managed by third parties; cyberattacks, data breaches or other compromises to our or our critical third parties' systems, data, products or services; our ability to realize the benefits associated with our deferred income tax assets; future impairments of our long-lived assets or goodwill; risks related to data privacy and protection-related laws and regulation; and our ability to manage changes related to regulation, including laws and regulations affecting hospitals and the healthcare industry generally, as well as other risks described from time to time in our periodic reports and other filings with the Securities and Exchange Commission. Although Spok believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Spok disclaims any intent or obligation to update any forward-looking statements.


Tables to Follow
Spok.com
spoktweeta08a.jpg
7



SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited and in thousands except share, per share amounts and ARPU)
For the three months ended For the year ended
12/31/2023 12/31/2022 12/31/2023 12/31/2022
Revenue:
Wireless $ 19,091  $ 19,021  $ 75,968  $ 75,622 
Software 14,862  14,234  63,057  58,912 
Total revenue 33,953  33,255  139,025  134,534 
Operating expenses:
Cost of revenue (exclusive of items shown separately below) 6,933  6,859  26,818  28,267 
Research and development 2,642  2,281  10,549  13,625 
Technology operations 6,399  6,800  25,843  27,412 
Selling and marketing 4,028  3,667  16,350  16,296 
General and administrative 8,763  8,874  33,168  37,796 
Depreciation and accretion
728  938  4,496  3,571 
Severance and restructuring 378  881  573  7,329 
Total operating expenses 29,871  30,300  117,797  134,296 
% of total revenue 88.0  % 91.1  % 84.7  % 99.8  %
Operating income 4,082  2,955  21,228  238 
% of total revenue 12.0  % 8.9  % 15.3  % 0.2  %
Interest income 233  226  1,099  592 
Other income (expense) 43  57  (2) 167 
Income before income taxes 4,358  3,238  22,325  997 
(Provision for) benefit from income taxes (993) 20,988  (6,659) 20,859 
Net income (1) $ 3,365  $ 24,226  $ 15,666  $ 21,856 
Basic net income per common share (1) $ 0.17  $ 1.23  $ 0.79  $ 1.11 
Diluted net income per common share (1) $ 0.17  $ 1.21  $ 0.77  $ 1.09 
Basic weighted average common shares outstanding 19,987,640  19,703,802  19,953,747  19,672,423 
Diluted weighted average common shares outstanding 20,367,248  20,009,234  20,343,912  19,991,202 
Cash dividends declared per common share 0.3125  0.3125  1.2500  1.2500 

(1) For the three months and year ended December 31, 2022 Net income, basic net income per common share, and diluted net income per common share includes a non-cash benefit of $21.9 million related to the release of a previously established valuation allowance in alignment with our projections of future taxable income.



SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
12/31/2023 12/31/2022
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 31,989  $ 35,754 
Accounts receivable, net 23,314  26,861 
Prepaid expenses 7,885  6,849 
Other current assets 704  587 
Total current assets 63,892  70,051 
Non-current assets:
Property and equipment, net 7,321  8,223 
Operating lease right-of-use assets 10,526  13,876 
Goodwill 99,175  99,175 
Deferred income tax assets, net 46,260  52,398 
Other non-current assets 510  754 
Total non-current assets 163,792  174,426 
Total assets $ 227,684  $ 244,477 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 5,969  $ 5,880 
Accrued compensation and benefits 7,284  11,628 
Deferred revenue 26,298  27,255 
Operating lease liabilities 4,184  5,096 
Other current liabilities 4,273  4,573 
Total current liabilities 48,008  54,432 
Non-current liabilities:
Asset retirement obligations 7,191  7,237 
Operating lease liabilities 6,902  10,604 
Other non-current liabilities 1,812  1,107 
Total non-current liabilities 15,905  18,948 
Total liabilities 63,913  73,380 
Commitments and contingencies
Stockholders' equity:
Preferred stock $ —  $ — 
Common stock
Additional paid-in capital 102,936  99,908 
Accumulated other comprehensive loss (1,764) (1,909)
Retained earnings 62,597  73,096 
Total stockholders' equity 163,771  171,097 
Total liabilities and stockholders' equity $ 227,684  $ 244,477 




SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and in thousands)
For the year ended
12/31/2023 12/31/2022
Operating activities:
Net income $ 15,666  $ 21,856 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion 4,496  3,571 
Valuation allowance —  (21,850)
Deferred income tax expense 6,378  903 
Stock-based compensation 4,063  3,827 
Provisions for credit losses, service credits and other 950  1,777 
Changes in assets and liabilities:
Accounts receivable 2,580  (1,757)
Prepaid expenses and other assets (909) (88)
Net operating lease liabilities (1,264) 357 
Accounts payable, accrued liabilities and other (5,217) (2,258)
Deferred revenue (559) 118 
Net cash provided by operating activities 26,184  6,456 
Investing activities:
Purchases of property and equipment (3,417) (3,776)
Purchase of short-term investments —  (14,967)
Maturity of short-term investments —  30,000 
Net cash (used in) provided by investing activities (3,417) 11,257 
Financing activities:
Cash distributions to stockholders (25,642) (25,011)
Proceeds from issuance of common stock under the Employee Stock Purchase Plan 210  — 
Purchase of common stock for tax withholding on vested equity awards (1,245) (1,210)
Net cash used in financing activities (26,677) (26,221)
Effect of exchange rate on cash and cash equivalents 145  (321)
Net decrease in cash and cash equivalents (3,765) (8,829)
Cash and cash equivalents, beginning of period 35,754  44,583 
Cash and cash equivalents, end of period $ 31,989  $ 35,754 
Supplemental disclosure:
Income taxes paid $ 179  $ 223 




SPOK HOLDINGS, INC.
UNITS IN SERVICE, MARKET SEGMENTS,
AND AVERAGE REVENUE PER UNIT (ARPU)
(Unaudited and in thousands)
For the three months ended
12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Account size ending units in service (000's)
1 to 100 units 44  46  48  48  50  51  53  54 
101 to 1,000 units 142  143  144  149  147  147  149  150 
>1,000 units 579  596  614  614  620  626  633  634 
Total 765  785  806  811  817  824  835  838 
Market segment as a percent of total ending units in service
Healthcare 85.9  % 86.0  % 86.1  % 85.7  % 85.4  % 85.0  % 85.0  % 84.7  %
Government 4.2  % 4.2  % 4.2  % 4.3  % 4.4  % 4.1  % 4.2  % 4.7  %
Large enterprise 4.1  % 4.1  % 4.0  % 4.1  % 4.0  % 3.9  % 4.0  % 3.9  %
Other(1)
5.8  % 5.7  % 5.7  % 5.9  % 6.2  % 7.0  % 6.8  % 6.7  %
Total 100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Account size ARPU
1 to 100 units $ 12.57  $ 12.02  $ 11.91  $ 12.03  $ 11.95  $ 11.80  $ 11.41  $ 11.52 
101 to 1,000 units 9.16  8.75  8.56  8.75  8.66  8.44  8.27  8.24 
>1,000 units 7.15  6.97  6.94  6.95  6.86  6.69  6.63  6.64 
Total $ 7.84  $ 7.59  $ 7.53  $ 7.59  $ 7.50  $ 7.40  $ 7.23  $ 7.24 
(1) Other includes hospitality, resort and indirect units





RECONCILIATION OF ADJUSTED OPERATING EXPENSES
(Unaudited and in thousands)
For the three months ended For the year ended
12/31/2023 12/31/2022 12/31/2023 12/31/2022
Operating expenses $ 29,871  $ 30,300  $ 117,797  $ 134,296 
Add back:
Depreciation, amortization and accretion (728) (938) (4,496) (3,571)
Severance and restructuring (378) (881) (573) (7,329)
Adjusted operating expenses $ 28,765  $ 28,481  $ 112,728  $ 123,396 

RECONCILIATION OF ADJUSTED EBITDA
(Unaudited and in thousands)
For the three months ended For the year ended
12/31/2023 12/31/2022 12/31/2023 12/31/2022
Net income (1) $ 3,365  $ 24,226  $ 15,666  $ 21,856 
Add back:
Provision for (benefit from) income taxes 993  (20,988) 6,659  (20,859)
(Other income) expense (43) (57) (167)
Interest income (233) (226) (1,099) (592)
Depreciation and accretion
728  938  4,496  3,571 
EBITDA $ 4,810  $ 3,893  $ 25,724  $ 3,809 
Adjustments:
Stock-based compensation 1,321  873  4,045  3,827 
Severance and restructuring 378  881  573  7,329 
Adjusted EBITDA $ 6,509  $ 5,647  $ 30,342  $ 14,965 

(1) For the three months and year ended December 31, 2022 Net income includes a non-cash benefit of $21.9 million related to the release of a previously established valuation allowance in alignment with our projections of future taxable income.