West Corporation
Apr 19, 2006

West Corporation Reports Record First Quarter 2006 Revenue

Company Produces Revenue Growth Across All Segments

OMAHA, Neb., April 19, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- West Corporation (Nasdaq: WSTC), a leading provider of outsourced communication solutions, today announced its first quarter 2006 results.

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

                                                Three Months Ended
                                                     March 31,
                                       2006            2005    Percent Change
     Revenue                          $424.7          $359.6         18.1%
     Operating income                  $71.4           $59.1         20.8%
     Net income                        $41.1           $33.5         22.4%
     Earnings per share (basic)        $0.59           $0.49
     Earnings per share (diluted)      $0.57           $0.47

"We are pleased to report strong overall growth in revenue and operating income for the quarter," said Thomas B. Barker, Chief Executive Officer of West Corporation. "We continue to focus on the integration of the recently completed Raindance and Intrado acquisitions and the execution of our growth and profitability strategy."

Consolidated Operating Results

For the first quarter ended March 31, 2006, revenues were $424.7 million compared to $359.6 million for the same quarter last year, an increase of 18.1%. Revenue from acquired entities(1) accounted for $30.3 million of this increase. Operating income for the first quarter was $71.4 million, an increase of 20.8%, versus $59.1 million in the first quarter of 2005. Net income was $41.1 million, up 22.4% compared to $33.5 million in the same quarter last year. Diluted earnings per share were $0.57 versus $0.47 in the same period of 2005.


The company reported consolidated operating margin of 16.8% in the first quarter of 2006, up from 16.4% in the comparable quarter last year. The improvement for the quarter is primarily the result of increased revenues and operating income in the Conferencing segment.

Balance Sheet

At March 31, 2006, West Corporation had cash and cash equivalents totaling $25.3 million and working capital of $108.3 million. Net cash flows from operating activities were $63.6 million for the first quarter.

At March 31, 2006, borrowings under the revolving credit facility totaled $161.0 million. As disclosed on April 6, West expanded its revolving credit facility to $800 million from $400 million. The Company borrowed approximately $619 million against its credit facility and currently has a total of approximately $780 million outstanding after funding acquisition costs. The current variable interest rate on the credit facility is 5.5 percent.

"During the quarter, we invested $22 million, or 5.2% of revenues, in capital expenditures to upgrade equipment and infrastructure, as well as expand facilities in three new domestic sites," commented Paul Mendlik, Chief Financial Officer of West Corporation. "During the first quarter, we added 1,100 workstations, bringing our capacity to approximately 19,300 workstations."

Conference Call

The company will hold a conference call to discuss earnings on Thursday, April 20, 2006 at 11:00 AM Eastern Time (10:00 AM 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, organizations and government agencies. West helps its clients communicate effectively, maximize the value of their customer relationships and drive greater profitability from every interaction. The company's integrated suite of customized solutions includes customer acquisition, customer care, automated voice services, emergency communications, conferencing and accounts receivable management services.

Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of 29,000 employees based in North America, Europe and Asia. For more information, please visit http://www.west.com .

This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue" or similar terminology. These statements reflect only West's current expectations and are not guarantees of future performance or results. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contained in the forward- looking statements. These risks and uncertainties include West's ability to integrate or achieve the objectives of the recently completed Intrado and Raindance acquisitions, West's ability to complete future acquisitions, competition in West's highly competitive industries, extensive regulation in many of West's markets, West's ability to recover on its charged-off consumer receivables, capacity utilization of West's contact centers, the cost and reliability of voice and data services, availability of key personnel and employees, the cost of labor and turnover rates, the political, economic and other conditions in countries where West operates, the loss of any key clients, West's ability to purchase charged-off receivable portfolios on acceptable terms and in sufficient amounts, the nature of West's forward flow contracts, the non-exclusive nature of West's client contracts and the absence of any revenue commitments, the possibility of an emergency interruption to West's data and contact centers, acts of terrorism or war, security or privacy breaches of West's systems and databases, West's ability to protect proprietary information or technology, West's ability to continue to keep pace with technological developments, the cost of pending and future litigation and other risk factors described in documents filed by the company with the United States Securities and Exchange Commissions including West's annual report on Form 10-K for the year ended December 31, 2005. These forward-looking statements speak only as of the date on which the statements were made. West undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

(1) Acquired entities include Sprint Corporation's conferencing assets
        (acquired in June 2005) in the Conferencing segment.

                                 WEST CORPORATION
      (Unaudited, in thousands except per share and selected operating data)

                                         Three Months Ended March 31,      %
                                               2006         2005        Change
    Revenue                                  $424,738     $359,557      18.1%
    Cost of services                          197,291      165,937      18.9%
    Selling, general and administrative
     expenses                                 156,058      134,541      16.0%
    Operating income                           71,389       59,079      20.8%
    Other income (expense), net                (3,665)      (2,362)     55.2%
    Income before tax                          67,724       56,717      19.4%
    Income tax expense                         24,084       19,480      23.6%
    Minority Interest                           2,576        3,697     -30.3%
    Net income                                $41,064      $33,540      22.4%

    Earnings per share:
      Basic                                     $0.59        $0.49      20.4%
      Diluted                                   $0.57        $0.47      21.3%
    Weighted average common shares
      Basic                                    70,017       68,414
      Diluted                                  72,375       70,805

         Communication Services              $229,429     $218,446       5.0%
         Conferencing                         136,864       88,192      55.2%
         Receivables Management                60,156       54,006      11.4%
         Inter segment eliminations            (1,711)      (1,087)     57.4%
         Total                               $424,738     $359,557      18.1%

    Operating Income:
         Communication Services               $29,125      $30,565      -4.7%
         Conferencing                          31,037       18,147      71.0%
         Receivables Management                11,227       10,367       8.3%
         Total                                $71,389      $59,079      20.8%

    Operating Margin:
         Communication Services                 12.7%        14.0%      -9.3%
         Conferencing                           22.7%        20.6%      10.2%
         Receivables Management                 18.7%        19.2%      -2.6%
         Total                                  16.8%        16.4%       2.4%

    Number of workstations
    (end of period)                            19,307       16,269      18.7%
    Number of Communication Services ports
    (end of period)                           120,911      133,684      -9.6%

                            CONDENSED BALANCE SHEET
                           (Unaudited, in thousands)

                                             March 31,  December 31,    %
                                                2006         2005     Change
    Current assets:
       Cash and cash equivalents              $25,297      $30,835   -18.0%
       Trust cash                               7,716        3,727   107.0%
       Accounts receivable, net               248,756      217,806    14.2%
       Portfolio receivables, current          36,280       35,407     2.5%
       Other current assets                    33,611       28,567    17.7%
         Total current assets                 351,660      316,342    11.2%
    Net property and equipment                235,964      234,871     0.5%
    Portfolio receivables, net                 60,443       59,043     2.4%
    Goodwill                                  717,627      717,624     0.0%
    Other assets                              167,601      170,782    -1.9%
         Total assets                      $1,533,295   $1,498,662     2.3%
    Current liabilities                      $243,394     $206,295    18.0%
    Long Term Obligations                     175,758      233,245   -24.6%
    Other liabilities & minority interest      82,472       87,254    -5.5%
    Stockholders' equity                    1,031,671      971,868     6.2%
       Total liabilities and stockholders
        equity                             $1,533,295   $1,498,662     2.3%

SOURCE West Corporation

David Pleiss, Investor Relations of West Corporation, +1-402-963-1500,

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