Dec 17, 2001
West Corporation Announces 2002 Financial Outlook and Acquisition of Tel Mark Sales, Inc.
OMAHA, Neb., Dec. 17 -- West Corporation (Nasdaq: WSTC - news) or "West", a leading provider of integrated customer contact solutions, today announced its financial guidance for 2002. West expects to report revenues in the range of approximately $875 - $890 million, yielding pre-tax operating margins of 15% and net income in the range of $83.5 - $86 million for the fiscal year ending December 31, 2002. West's continued growth is driven by expanding market opportunities, its ability to scale its operations and the needs of its clients to outsource more of their customer interaction requirements.
"We expect to continue the successful and profitable long-term growth of our company through 2002 and beyond," said Tom Barker, President & CEO of West Corporation. "At West, we constantly strive to improve revenue per workstation and focus on the utilization of assets across divisions. While we are expanding our service offerings through internal and external growth in line with the needs of our clients, we remain focused on our core competencies aimed at helping clients maintain and grow their customer base."
"Our integrated suite of service offerings and strong track record of sound financial management will enable us to capitalize on new opportunities both within and outside of our existing client base," said Mike Micek, Chief Financial Officer of West Corporation. "Through our stringent cost management programs and ability to scale our offerings, we are well positioned to achieve even greater efficiencies and maintain our industry leading margins."
Acquisition of Tel Mark Sales, Inc
The company also announced that it has purchased all of the stock of Tel Mark Sales Inc, a privately held company based in Appleton, Wisconsin that employs approximately 500 people in two facilities.
Tel Mark Sales is a business-to-business marketing services company focused on the retail, consumer packaged goods and healthcare industries. The company uses its proven sales model and proprietary databases to enhance product distribution for its Fortune 500 clients. Tel Mark Sale's clients rely on the company's expertise to support their ongoing sales and marketing efforts.
West will leverage its state of the art technology, infrastructure and industry leading contact center experience to accelerate Tel Mark Sales' considerable growth. With Tel Mark Sales' roster of consumer packaged goods and healthcare clients, both companies possess excellent opportunities to cross-sell their services and drive higher value transactions across workstations.
"We are excited about the addition of Tel Mark Sales to the West Corporation family," said Barker. "This addition is a perfect strategic fit for West, enhancing our presence in the B2B marketing services space and increasing our commitment to this growing market. We are pleased to add a business of this quality that is a highly complimentary fit in terms of its operating and financial models."
"We have always stated that we opportunistically look to acquire businesses that provide future growth potential and fit within the parameters of our long-term strategy," stated Nancee Berger, Chief Operating Officer of West Corporation. "Tel Mark Sales' growth levels are in line with our overall goals and we expect the firm to contribute approximately $25 - $30 million in revenue in 2002."
About West Corporation
West Corporation is a leading provider of innovative, full-service customer care solutions that help Fortune 500 companies acquire, retain and grow profitable customer relationships. West's customer relationship management solutions incorporate agent and automated services using the latest in voice and Internet technology.
Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 25,000 employees, including an IT staff of approximately 780, occupying 31 state-of-the-art contact centers and seven interactive automated voice and data processing centers across North America and India.
Statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. Such risks and uncertainties include, but are not limited to: planned expansion of operating facilities; labor market conditions; mergers, acquisitions, or joint ventures, including their execution; customer concentrations; technological innovation; and general economic conditions. Further information regarding the factors that could cause actual results to differ from expected or projected results can be found in documents filed by the Company with the United States Securities and Exchange Commission (the "SEC").