Prison-Phone Firm ViaPath’s Quarterly Earnings Lag Projections

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American Securities-backed ViaPath Technologies, a prison phone and tablet company, reported an improvement in earnings and revenue during its most recent quarter, according to a lender presentation reviewed by Bloomberg.

The company, formerly known as Global Tel*Link, posted adjusted earnings before interest, taxes, depreciation and amortization of $75.7 million for the quarter ended June 30, a 4% year-over-year increase. Its total revenue clocked in at $157.8 million, a 7.7% increase from the same period last year.

The quarterly results were driven by continued growth in the company’s tablets, according to the presentation. New tablet installations are scheduled for 2023 with a “robust” pipeline of opportunities over the next twelve months and beyond, the presentation said. But the results missed projections because of lighter revenue from the firm’s wall phones as well as delayed installations.

ViaPath and its rivals are awaiting new regulations from the Federal Communications Commission, which could come as soon as next July. The FCC recently gained the power to institute a limit on prices of in-state calls made from jails and prisons. This came years after a federal court ruled in a countersuit that the FCC lacked the authority to limit in-state rates.

 

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