OMAHA, Neb., Feb. 5 -- West Corporation (Nasdaq: WSTC - news) or "West", a leading provider of integrated customer contact solutions, today announced its fourth quarter and full-year 2001 results.
"In the midst of a challenging market environment, we delivered another year of profitable growth," said Thomas B. Barker, President and Chief Executive Officer of West Corporation. "We believe we are well positioned to improve on our performance in the coming year and the recent acquisitions of Tel Mark Sales and Dakotah Direct will help drive our expansion into several key vertical markets. Our ability to help premium-brand companies acquire, retain and grow profitable customer relationships has never been stronger."
For the quarter ended December 31, 2001, revenues were $203.1 million, an increase of 5.0% over fourth quarter 2000 revenues of $193.4 million. Fourth quarter operating income was $31.0 million compared to $30.3 million in the same period last year, an increase of 2.4%. Net income was up 3.0% to $19.7 million, compared to $19.2 million in the prior year comparable period. Fully diluted earnings per share were 29 cents versus 28 cents in the same period of 2000. EBITDA (earnings before interest, taxes, depreciation and amortization) was $44.4 million, up 5.9% from $42.0 million in the fourth quarter 2000.
For the fiscal year 2001, revenues were $780.2 million, an increase of 7.7% compared to the prior year's revenues of $724.5 million. Operating income was $120.8 million compared to $109.4 million for the full year 2000, an increase of 10.5%. Net income rose 7.9% to $75.8 million compared to $70.3 million last year. EBITDA increased by 9.6% to $169.6 million from $154.8 million in 2000. For the full year 2001, the company earned $1.11 per fully diluted share compared to $1.03 in 2000.
"During 2001, the company continued its focus on expanding client relationships while managing costs and maintaining our margins," said Michael Micek, Chief Financial Officer of West Corporation. "During the past year, we added over fifteen-hundred workstations, which were mainly related to the opening of contact centers in Beaumont, Texas, Pensacola, Florida and Harlingen, Texas."
Fourth quarter 2001 operating margins were approximately 15.3%, compared to 15.7% in the comparable period of 2000. For the twelve months ended December 31, 2001, operating margins increased by 0.4% to 15.5%, versus 15.1% in fiscal 2000. As a percentage of revenues, SG&A expense continued to decline in the fourth quarter from 33.9% in 2000 to 33.7% in 2001. For the twelve months ended December 31, 2001, SG&A expense as percentage of revenue decreased 0.2% to 33.4% from 33.6% in the previous fiscal year.
At December 31, 2001, West Corporation had cash and short-term investments totaling $151.5 million, an increase of 40.1% compared to the last day of 2000. Over the past year, the company's current ratio has improved from 2.1 to 1 at the end of 2000 to 3.5-to-1 on December 31, 2001. West Corporation continues to maintain its strong financial position and there are no outstanding borrowings under the company's lines of credit.
The company will hold a conference call to discuss earnings on February 6th at 10:00 AM Central Time. Investors may access the call by visiting the Investor Relations section of the West Corporation website at www.west.com and clicking on the Live Webcast icon. If you are unable to participate during the live webcast, a replay of the call will also be available on the website.
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 24,000 employees, including an IT staff of approximately 790, occupying 32 state-of-the-art contact centers and eight automated 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").