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OMAHA, Neb., Oct. 22 /PRNewswire-FirstCall/ -- West Corporation (Nasdaq: WSTC or "West"), a leading provider of integrated customer contact solutions focused on helping Fortune 1000 companies acquire, manage, retain and grow their customer relationships, today announced results for the third quarter ended September 30, 2002.
Financial Summary (unaudited)
(In thousands, except per share amounts and percentages)
Three Months Ended Nine Months Ended
Sep 30 Sep 30
2002 2001 Percent 2002 2001 Percent
Change Change
Revenue $199,354 $180,968 10.2% $604,978 $577,015 4.8%
Operating
Income 20,931 25,519 -18.0% 86,917 89,839 -3.3%
Net Income 13,607 14,741 -7.7% 56,484 56,063 0.8%
Earnings per
share (basic) 0.21 0.23 0.86 0.86
Earnings per
diluted share 0.20 0.22 0.83 0.82
"Our results this quarter were impacted by increased costs related to bad debt and some of our clients changing their plans resulting in reduced call volume," commented Thomas B. Barker, President and Chief Executive Officer. "We believe the fourth quarter and 2003 will lead to continued profitable growth for West."
Third Quarter Operating Results
For the quarter ended September 30, 2002, revenues increased 10.2% to $199.4 million compared to $181.0 million in the third quarter 2001. Operating income for the third quarter was $20.9 million, a decrease of 18.0% compared to $25.5 million in the same period last year. EBITDA (earnings before interest, taxes, depreciation and amortization) for third quarter 2002 increased 4.6% to $37.4 million from $35.8 million in the comparable period in 2001. Net income for the quarter stood at $13.6 million versus $14.7 million in third quarter 2001, a decline of 7.7%. Diluted earnings per share for the third quarter 2002 were 20 cents, versus 22 cents during the same period in 2001.
"During the quarter, we acquired Attention LLC, a leading accounts receivable management company," stated Barker. "We were attracted to the firm because of its experienced management team, premium brand clients and reputation for delivering outstanding results, and so far the firm has met our high expectations. The acquisition of Attention LLC has added 566 workstations to bring our total capacity to 13,827 workstations."
Nine-Month Operating Results
For the nine-months ended September 30 2002, revenues were $605.0 million, an increase of 4.8% compared to $577.0 million for the same period in 2001. Operating income decreased slightly, by 3.3%, to $86.9 million in the first nine months of 2002 compared to $89.8 million last year. Net income was $56.5 million up slightly from $56.1 million in the nine month 2001 period. For the same period, EBITDA increased by 6.5% to $133.3 million from $125.2 million.
Margins
Operating margins for the third quarter 2002 were 10.5%, compared to 14.1% in the same period last year. For the nine months ended September 30, 2002, operating margins were 14.4%, compared to 15.6% in the same period last year.
Balance Sheet
At the end of the third quarter, the company had cash and short-term investments totaling $115.6 million. On September 30, 2002, the company had no outstanding borrowings under its lines of credit and maintained a healthy current ratio of 4.1 to 1. During the third quarter of 2002 the company invested $14.2 million in capital expenditures, primarily related to the addition of IVR ports and construction of a network operations center.
Conference Call
The company will hold a conference call to discuss earnings on October 23rd 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 integrated customer contact solutions focused on helping Fortune 1000 companies acquire, manage, retain and grow their customer relationships.
West's customized solutions include large volume agent based transaction processing, interactive voice response, Web-enabled customer contact solutions and business-to-business marketing services. The company's operational strength and proprietary technology enables it to develop long-term partnerships with its clients and drive greater value from each customer interaction.
Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 24,000 employees, occupying thirty-eight state-of-the-art contact centers and eight interactive automated voice and data processing centers across North America and India.
For more information, please visit www.west.com .
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").
WEST CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share and selected operating
data)
Three Months Ended
September 30, %
2002 2001 Change
Revenue $199,354 $180,968 10.2%
Cost of services 98,103 93,713 4.7%
Selling, general and administrative
expenses 80,320 61,736 30.1%
Operating income 20,931 25,519 -18.0%
Other income (expense), net 406 (2,063) 119.7%
Income before tax 21,337 23,456 -9.0%
Income tax expense 7,682 8,691 -11.6%
Minority Interest 48 24 100.0%
Net income $13,607 $14,741 -7.7%
Earnings per share:
Basic $0.21 $0.23
Diluted $0.20 $0.22
Weighted average common shares
outstanding:
Basic 65,725 64,956
Diluted 67,561 67,844
SELECTED OPERATING DATA:
Operating margin 10.5% 14.1%
Number of workstations (end of
period) 13,827 11,221
Number of ports (end of period) 143,600 78,277
WEST CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except per share and selected operating
data)
Nine Months Ended
September 30, %
2002 2001 Change
Revenue $604,978 $577,015 4.8%
Cost of services 293,210 295,178 -0.7%
Selling, general and administrative
expenses 224,851 191,998 17.1%
Operating income 86,917 89,839 -3.3%
Other income (expense), net 1,548 (415) 473.0%
Income before tax 88,465 89,424 -1.1%
Income tax expense 31,778 33,055 -3.9%
Minority Interest 203 306 -33.7%
Net income $56,484 $56,063 0.8%
Earnings per share:
Basic $0.86 $0.86
Diluted $0.83 $0.82
Weighted average common shares
outstanding:
Basic 65,685 64,876
Diluted 68,313 68,139
SELECTED OPERATING DATA:
Operating margin 14.4% 15.6%
Number of workstations (end of
period) 13,827 11,221
Number of ports (end of period) 143,600 78,277
September 30, December 31, %
2002 2001 Change
Current assets:
Cash and short-term investments $115,546 $151,520 -23.7%
Trade accounts receivable, net 114,406 131,316 -12.9%
Other current assets 59,387 45,936 29.3%
Total current assets 289,339 328,772 -12.0%
Net property and equipment 217,315 202,671 7.2%
Goodwill 111,291 41,942 165.3%
Other assets 44,014 18,050 143.8%
Total assets $661,959 $591,435 11.9%
Current liabilities $69,812 $93,592 -25.4%
Other liabilities & minority interest 38,847 29,684 30.9%
Stockholders' equity 553,300 468,159 18.2%
Total liabilities and stockholders
equity $661,959 $591,435 11.9%
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