Spok Announces New Strategic Business Plan

Strategy Prioritizes Maximizing Absolutely free Hard cash Move and Returning Cash to Shareholders

Improves Dividend by 150%, from $.125 for every quarter to $.3125 for every quarter

Authorizes Share Repurchase System of up to $10 million

Strategic Evaluate Procedure Continues to be Ongoing Board Is Open up to All Prospective Choices to Optimize Worth

ALEXANDRIA, Va., February 17, 2022–(Company WIRE)–The Board of Administrators (the “Board”) of Spok Holdings, Inc. (NASDAQ: SPOK) (“Spok” or the “Corporation”), a world wide chief in health care communications, nowadays declared a new strategic enterprise system prioritizing maximizing cost-free cash stream and returning money to shareholders.

Highlights of New Strategic Business enterprise Strategy:

  • Spok will improve revenue and cash technology from its recognized strains of business: the Spok Treatment Connect Suite which include Spok Cell, and Wireless products and services. The Firm has an great keep track of document of driving earnings from these enterprise traces and enjoys a important sector management placement. Spok options to commit in a targeted manner in these crucial and valuable franchises to continue its extensive-standing associations with the nation’s leading health care suppliers.

  • Spok will broaden upon its previously-disciplined price management by streamlining its management framework, rationalizing externals expenses, reducing cash expenses (Capex) and consolidating places of work.

Prioritizing Returning Capital to Shareholders:

  • Efficient instantly, Spok is increasing its common quarterly dividend by 150%, from $.125 for each share to $.3125 per share, and intends to continue on this dividend for the foreseeable upcoming, ensuing in an mixture annual dividend of $1.25 per share. The Company will continuously appraise its money allocation tactic and may perhaps look at rising its quarterly dividend in the potential.

  • The Board also approved a share repurchase program of up to $10 million of the Company’s common stock. This authorization allows the Corporation to return more funds to shareholders by opportunistically repurchasing the Company’s shares. Spok will proceed to examine this as it transitions via its strategic pivot during 2022.

“Right after in depth examination by our Board, management workforce and advisors, we are confident that this strategic change will make sizeable benefit for shareholders while allowing for Spok to carry on to present vital communications expert services to healthcare clients,” stated Vincent D. Kelly, president and main executive officer of Spok Holdings, Inc. “While discontinuing Spok Go was a tricky choice, finally the ongoing challenge of the COVID-19 pandemic has made it untenable for the platform to get enough traction with prospects or for our organization to go on running with our recent amount of costs and staff. Importantly, we have extensive experience running our founded conversation remedies and maximizing earnings and funds generation from them. We think this is the finest route forward for Spok at this time.”

Strategic Critique Update

Spok’s previously declared evaluation of strategic alternatives stays ongoing. While this method has not however resulted in a transaction, the Board stays open up to all likely options to increase worth. The Board and its advisors keep on to have interaction with probable acquirers relating to a sale of the Organization, which includes Acacia Analysis Corporation relating to its offer you to purchase the Business. There can be no assurance that the strategic alternate options evaluation process will guide to a transaction or the sale of all or element of the Business.

“Spok’s Board is focused to maximizing value for all our shareholders,” stated Royce Yudkoff, Chairman of the Spok Board. “As we made apparent when launching our alternatives evaluation, our aim is to make sure that we have a thorough course of action to permit all intrigued parties to participate fully and quite and enable the Board to make an informed determination with regards to actionable transactions. We stay targeted on attaining an final result that is in the greatest passions of all Spok shareholders.”

Dividend and Share Repurchase Method

On February 16, 2022, the Board declared a $.3125 for each share dividend payable on March 30, 2022 to shareholders of document on March 16, 2022. If declared and paid as intended, the annual combination dividend in 2022 would be $1.25 for every share. The declaration and payment of long run dividends is issue to the Board’s discretion and will rely on fiscal and lawful demands and other issues.

Underneath the $10 million repurchase application, repurchases can be created from time to time working with a variety of strategies, which may possibly incorporate open up industry purchases, privately negotiated transactions or normally, all in accordance with the principles of the Securities and Trade Fee and other applicable authorized needs. The particular timing, price and size of purchases will count on prevailing stock rates, normal financial and industry situations, lawful demands and other factors. The repurchase system does not obligate Spok to purchase any distinct amount of money of typical inventory, and the repurchase plan may possibly be suspended or discontinued at any time at Spok’s discretion.

RBC Funds Markets is serving as fiscal advisor and Latham & Watkins LLP is serving as authorized advisor to Spok.

A meeting connect with will be held right now, February 17, 2022, at 8:30 a.m. Japanese Time to explore Spok’s new strategic business enterprise system as very well as fourth quarter and entire calendar year 2021 final results.

Telephone Convention Dial-Ins

Participant / Guest (Toll-Free of charge):

877-407-0890

Participant / Visitor (International):

201-389-0918

Webcast Back links:

Stay-Hyperlink (immediately after the celebration the OnDemand edition will be accessible under this URL as properly):
https://www.webcast-eqs.com/spok02172022_en/en

About Spok

Spok, Inc., a wholly owned subsidiary of Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in Alexandria, Virginia, is proud to be a world chief in health care communications. We provide scientific information and facts to treatment teams when and the place it matters most to enhance affected individual outcomes. Leading hospitals rely on Spok Treatment Connect® platforms to improve workflows for clinicians and help administrative compliance. Our shoppers ship over 100 million messages every thirty day period through their Spok® solutions. When seconds rely and patients’ lives are at stake, Spok permits smarter, more rapidly medical communication. For extra information and facts, go to spok.com or comply with @spoktweets on Twitter.

Spok is a trademark of Spok Holdings, Inc. Spok Go and Spok Care Join are trademarks of Spok, Inc.

Risk-free Harbor Assertion underneath the Non-public Securities Litigation Reform Act:

Statements contained herein or in prior push releases which are not historic actuality, these as statements with regards to Spok’s potential working and monetary performance, future dividend payments and the final result of the Company’s strategic choices evaluation, are ahead-searching statements for uses of the safe and sound harbor provisions below the Non-public Securities Litigation Reform Act of 1995. These ahead-on the lookout statements include pitfalls and uncertainties that may perhaps cause Spok’s real success to be materially unique from the potential benefits expressed or implied by these kinds of ahead-wanting statements. Things that could trigger actual results to differ materially from all those anticipations contain, but are not limited to, challenges similar to Spok’s new strategic business program, including its skill to improve revenue and dollars generation from its recognized organizations and return funds to shareholders, hazards similar to the COVID-19 pandemic and its impact on our small business and the economic system, other financial problems these types of as recessionary financial cycles, bigger interest prices, inflation and greater concentrations of unemployment, declining demand from customers for paging items and expert services, ongoing demand from customers for our software program merchandise and companies, our dependence on the U.S. health care market, our capacity to acquire further application methods for our customers and take care of our development as a world-wide business, the ability to handle functioning fees, especially third-celebration consulting expert services and investigate and advancement costs, long run money requires, competitive pricing pressures, competition from standard paging products and services, other wireless communications services and other computer software companies, many of which are considerably greater and have much better economical and human cash means, alterations in shopper buying priorities or cash expenditures, authorities regulation of our products and solutions and companies and the health care and well being insurance coverage industries, reliance upon 3rd-party suppliers for selected machines and providers, unauthorized breaches or failures in cybersecurity actions adopted by us and/or bundled in our goods and solutions, the results of variations in accounting procedures or tactics, our skill to understand the benefits involved with our deferred tax property, potential impairments of our long-lived assets, amortizable intangible assets and goodwill, the consequences of our minimal-duration shareholder legal rights strategy, and the consequence of Spok’s strategic choices critique, as nicely as other pitfalls described from time to time in our periodic reviews and other filings with the Securities and Trade Commission. Despite the fact that Spok believes the expectations reflected in the ahead-looking statements are based on fair assumptions, it can give no assurance that its anticipations will be attained. Spok disclaims any intent or obligation to update any ahead-wanting statements.

See resource version on businesswire.com: https://www.businesswire.com/news/residence/20220217005200/en/

Contacts

Lisa Fortuna or Mike Cummings
+1 (312) 445-2866
[email protected]

Maria Flores

Next Post

Global Compressors Market Outlook 2022 - Real-time Monitoring for Increased Transparency in Operations Presents Opportunities - ResearchAndMarkets.com

Fri Feb 18 , 2022
DUBLIN–(Small business WIRE)–The “Global Compressors Outlook 2022” report has been included to ResearchAndMarkets.com’s presenting. This outlook on compressors supplies facts on the full earnings produced in the compressors current market. It discusses the impact of the coronavirus on essential industries that deploy compressors, apart from providing predictions for 2022. The […]