October 19, 2005

West Corporation Reports Record Third Quarter Results

Net Income Increases 33% on Expanded Revenue Quarterly Revenue, Operating Income and Net Income Highest in Company History

OMAHA, Neb., Oct 19, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- West Corporation (Nasdaq: WSTC), a leading provider of outsourced communication solutions, today announced its third quarter 2005 results.

Financial Summary (unaudited)
     (In millions, except per share amounts and percentages)

                          Three Months Ended          Nine Months Ended
                             September 30,              September 30,
                                         Percent                     Percent
                       2005      2004    Change    2005      2004    Change

         Revenue      $389.8    $307.6   26.7%  $1,119.2    $880.7   27.1%

        Operating
         income        $68.7     $47.7   44.0%    $193.8    $135.4   43.1%

       Net income      $37.8     $28.5   32.7%    $108.8     $82.7   31.6%

      Earnings per
      share (basic)    $0.55     $0.42             $1.58     $1.23

      Earnings per
     share (diluted)   $0.53     $0.41             $1.53     $1.19

"During the quarter, the benefits of our diversified business model combined with continued growth across all three business segments resulted in record revenue and profitability," said Thomas B. Barker, Chief Executive Officer of West Corporation. "Our Communication Services segment benefited from a short-term customer engagement that contributed $8.4 million of revenue in the third quarter."

Consolidated Operating Results

For the third quarter ended September 30, 2005, revenues were $389.8 million compared to $307.6 million for the same quarter last year, an increase of 26.7%. Revenue from acquired entities* accounted for $50.3 million of this increase. Operating income for the third quarter was $68.7 million, an increase of 44.0% versus $47.7 million in the third quarter of 2004. Net income was $37.8 million, up 32.7% compared to $28.5 million in the same quarter last year. Diluted earnings per share were $0.53 versus $0.41 in the same period of 2004.

Margins

The company reported consolidated operating margin of 17.6% in the third quarter of 2005, up from 15.5% in the comparable quarter last year. The improvement for the quarter is the result of increased revenues in the traditionally higher margin Conferencing segment and from a short-term customer engagement in the Communications Services segment.

Balance Sheet

At September 30, 2005, West Corporation had cash and short-term investments totaling $9.7 million and a current ratio of 1.6 to 1. Net cash flows from operating activities were $50.3 million for the third quarter and $186.3 million for the nine months ended September 30, 2005. As of September 30, 2005, the company had $118 million of capacity available on its bank line of credit.

"During the quarter, we continued to invest in our business, spending approximately five percent of revenues on capital expenditures to upgrade equipment and infrastructure, as well as expand facilities in three U.S. locations," commented Paul Mendlik, Chief Financial Officer of West Corporation. "We continue to increase our capacity to meet growing demand, adding both U.S. based and international workstations during the quarter, and bringing our total capacity to approximately 18,200 workstations. In addition, our At Home Agent business continues to gain traction with clients and we now have approximately 7,300 trained agents."

Conference Call

The company will hold a conference call to discuss earnings on October 20th at 10:00 a.m. Central Time. Investors may access the call by visiting the Investor section of the West Corporation website at http://www.west.com and clicking on the Webcast link. A replay of the call will also be available on the website.

About West Corporation

West Corporation is a leading provider of outsourced communication solutions to many of the world's largest companies. The company helps its clients communicate effectively, maximize the value of their customer relationships and drive greater revenue from each transaction. West's integrated suite of customized solutions includes customer acquisition, customer care and retention services, interactive voice response services, and conferencing and accounts receivable management services.

Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 27,000 employees based in North America, Europe and Asia.

For more information, please visit http://www.west.com .

This news release contains forward looking statements within the meaning of the Federal securities laws. You can identify forward looking statements by the use of such words as "will," "expect," "plans," "believes," "estimates," "intend," "continue," or the negative of such terms, or other comparable terminology. Forward looking statements also include the assumptions underlying or relating to any of the foregoing statements.

Our results could differ materially from the expectations expressed in these statements. Further information regarding the factors that could cause actual results to differ from expected projected results can be found in documents filed by the company with the United States Securities and Exchange Commissions (the "SEC") including our annual report on Form 10-K for the year ended December 31, 2004 and subsequently filed quarterly reports on Form 10-Q and the prospectus supplement related to our secondary offering dated October 6, 2005. We assume no obligation to update these forward looking statements.

* Acquired entities include Sprint Corporation's conferencing assets (acquired in June 2005) and ECI Conference Call Services LLC (acquired in December 2004) in the Conferencing segment and Worldwide Asset Management, Inc. and its related entities (acquired in August 2004) in the Receivables Management segment.

WEST CORPORATION
                      CONDENSED STATEMENTS OF OPERATIONS
    (Unaudited, in thousands except per share and selected operating data)

                    Three Months Ended           Nine Months Ended
                         Sept. 30,        %          Sept. 30,        %
                      2005      2004    Change     2005     2004    Change
    Revenue         $389,814  $307,613   26.7% $1,119,159 $880,665   27.1%
    Cost of
     services        174,239   137,858   26.4%    505,473  387,342   30.5%
    Selling, general
     and
     administrative
     expenses        146,911   122,059   20.4%    419,838  357,890   17.3%
    Operating income  68,664    47,696   44.0%    193,848  135,433   43.1%
    Other expense,
     net               4,293     2,687   59.8%      9,333    4,596  103.1%
    Income before
     tax              64,371    45,009   43.0%    184,515  130,837   41.0%
    Income tax
     expense          22,344    16,498   35.4%     63,656   48,144   32.2%
    Minority Interest  4,202         -             12,036        -
    Net income       $37,825   $28,511   32.7%   $108,823  $82,693   31.6%

    Earnings per share:
      Basic            $0.55     $0.42   31.0%      $1.58    $1.23   28.5%
      Diluted          $0.53     $0.41   29.3%      $1.53    $1.19   28.6%
    Weighted average
     common shares
     outstanding:
      Basic           69,089    67,621             68,752   67,459
      Diluted         71,586    69,488             71,185   69,310

    SELECTED OPERATING
     DATA:
    Revenue:
        Communication
         Services   $213,476  $197,769    7.9%   $644,002 $598,633    7.6%
        Conferencing 123,068    75,353   63.3%    315,192  227,442   38.6%
        Receivables
         Management   54,453    34,775   56.6%    163,413   55,388  195.0%
        Inter segment
         eliminations (1,183)     (284) 316.5%     (3,448)    (798) 332.1%
        Total       $389,814  $307,613   26.7% $1,119,159 $880,665   27.1%

    Operating Income:
        Communication
         Services    $28,461   $22,187   28.3%    $88,518  $74,030   19.6%
        Conferencing  30,692    18,232   68.3%     75,605   53,447   41.5%
        Receivables
         Management    9,511     7,277   30.7%     29,725    7,956  273.6%
        Total        $68,664   $47,696   44.0%   $193,848 $135,433   43.1%

    Operating Margin:
        Communication
         Services      13.3%     11.2%   18.8%      13.7%    12.4%   10.5%
        Conferencing   24.9%     24.2%    2.9%      24.0%    23.5%    2.1%
        Receivables
         Management    17.5%     20.9%  -16.3%      18.2%    14.4%   26.4%
        Total          17.6%     15.5%   13.5%      17.3%    15.4%   12.3%

    Number of
     workstations
     (end of period)  18,188    14,765   23.2%
    Number of
     Communication
     Services ports
     (end of period) 119,158   135,822  -12.3%



           Condensed Balance Sheet
          (Unaudited, in thousands)

                    September  December
                       30,        31,     %
                      2005       2004   Change
    Current assets:
      Cash and cash
       equivalents    $9,742    $21,939 -55.6%
      Trust cash      11,893     10,633  11.8%
    Accounts and
     notes
     receivable,
     net             219,145    195,598  12.0%
      Portfolio
       receivables,
       current        34,749     26,646  30.4%
      Other current
       assets         26,022     27,244  -4.5%
        Total current
         assets      301,551    282,060   6.9%
    Net property and
     equipment       227,493    223,110   2.0%
    Portfolio
     receivables,
     net              54,610     56,897  -4.0%
    Goodwill         709,249    573,885  23.6%
    Other assets     186,914    135,254  38.2%
        Total
         assets   $1,479,817 $1,271,206  16.4%

    Current
     liabilities    $186,335   $160,755  15.9%
    Long Term
     Obligations     292,421    238,354  22.7%
    Other liabilities
     & minority
     interest         77,161     82,642  -6.6%
    Stockholders'
     equity          923,900    789,455  17.0%
      Total
       liabilities
       and
       stockholders'
       equity     $1,479,817 $1,271,206  16.4%

SOURCE West Corporation

David Pleiss, Investor Relations, of West Corporation, +1-402-963-1500
http://www.prnewswire.com

Copyright (C) 2005 PR Newswire. All rights reserved.

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