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OMAHA, Neb., Jul 22, 2003 /PRNewswire-FirstCall via COMTEX/ --
West Corporation (Nasdaq: WSTC), a leading provider of outsourced communication solutions, today announced results for the quarter ended June 30, 2003.
Financial Summary (unaudited)
(In thousands, except per share amounts and percentages)
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 Percent 2003 2002 Percent
Change Change
Revenue $237,559 $195,076 21.8% $453,745 $405,624 11.9%
Operating income $33,490 $31,123 7.6% $65,397 $65,986 -0.9%
Net income $20,861 $20,285 2.8% $40,956 $42,877 -4.5%
Earnings per
share (basic) $0.31 $0.31 $0.62 $0.65
Earnings per
share (diluted) $0.30 $0.30 $0.60 $0.63
"We were pleased to complete the acquisition of InterCall in May," noted Thomas B. Barker, President and Chief Executive Officer. "The acquisition helped grow our revenue and earnings as expected during the quarter. We remain focused on completing the integration process as smoothly and quickly as possible."
Operating Results
Revenue grew 21.8% in the second quarter of 2003 to $237.6 million compared to revenues of $195.1 million in the same quarter last year. The acquisition of InterCall generated $33.8 million of revenue in the second quarter of 2003. The company reported operating income of $33.5 million for the quarter, up 7.6% from $31.1 million in the second quarter of 2002. Included in operating income was $7.4 million from InterCall operations. Net income also increased to $20.9 million from $20.3 million in last year's second quarter, a 2.8% increase. Diluted earnings per share were $0.30 in the second quarter of 2003, matching $0.30 earned in the same period last year.
Revenues grew 11.9% for the six months ended on June 30, 2003, up from $405.6 million to $453.7 million. During the same six-month period, the company reported operating income of $65.4 million compared to $66.0 million in the comparable period of 2002. In the first six months of 2003, net income was $41.0 million compared to $42.9 million in the comparable period of 2002.
Margins
As a percentage of revenue, operating income was 14.1% in the second quarter of 2003, compared to 16.0% in the comparable quarter of 2002. During the first six months of 2003, operating income as a percentage of revenues was 14.4%, down from 16.3% for the six months ended June 2002.
In the second quarter of 2003, SG&A as a percentage of revenues increased to 41.2% from 36.5% in last year's second quarter. For the first six months of 2003, SG&A as a percentage of revenues rose to 39.4% from 35.6% in the comparable period of last year. These increases can be primarily attributed to increases in depreciation, amorti down from $137.9 at the end of 2002. Approximately $125.6 million was utilized in the acquisition of InterCall, Inc. The company also incurred $250 million of debt in the acquisition.
"InterCall's performance in the second quarter bodes well for the future," said Paul Mendlik, Chief Financial Officer of West Corporation. "The acquisition added approximately 39,000 conferencing ports to our capacity. We also utilize an additional 150,000 ports in our interactive call handling operations."
Conference Call
The company will hold a conference call to discuss earnings on July 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 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, conferencing and accounts receivable management services.
Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 25,000 employees based in North America, Europe and Asia.
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 amounts and selected operating data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 % change 2003 2002 % change
Revenue $237,559 $195,076 21.8% $453,745 $405,624 11.9%
Cost of services 106,224 92,787 14.5% 209,486 195,106 7.4%
Selling, general and
administrative
expenses 97,845 71,166 37.5% 178,862 144,532 23.8%
Operating Income 33,490 31,123 7.6% 65,397 65,986 -0.9%
Other income
(expense) (662) 431 -253.6% (206) 1,142 -118.0%
Income before tax 32,828 31,554 4.0% 65,191 67,128 -2.9%
Income tax expense 11,967 11,220 6.7% 24,070 24,096 -0.1%
Minority Interest 49 165 155 6.5%
Net income $20,861 $20,285 2.8% $40,956 $42,877 -4.5%
Earnings per
common share
Basic $0.31 $0.31 $0.62 $0.65
Diluted $0.30 $0.30 $0.60 $0.63
Weighted average
number of shares
outstanding:
Basic common
shares 66,569 65,659 66,431 65,506
Diluted common
shares 69,097 68,491 68,317 68,530
Selected Operating Data
Revenue:
Communication
Services* $203,721 $195,076 $419,907 $405,624
Conferencing 33,838 n/a 33,838 n/a
Total $237,559 $195,076 $453,745 $405,624
Operating Income:
Communication
Services $26,132 $31,123 $58,039 $65,986
Conferencing 7,358 n/a 7,358 n/a
Total $33,490 $31,123 $65,397 $65,986
Operating Margin:
Communication
Services 12.8% 16.0% 13.8% 16.3%
Conferencing 21.7% n/a 21.7% n/a
Combined 14.1% 16.0% 14.4% 16.3%
Number of
Communication
Services
workstations
(end of period) 14,161 13,357 14,161 13,857
Number of
Communications
Services ports
(end of period) 150,908 128,187 150,908 128,187
Condensed Balance Sheet
June 30, December 31,
Current assets: 2003 2002 % change
Cash and cash equivalents $54,386 $137,927 -60.6%
Accounts receivable, net 147,305 121,868 20.9%
Other current assets 33,587 29,790 12.7%
Total current assets 235,278 289,585 -18.8%
Net property and equipment 254,039 213,641 18.9%
Goodwill 385,911 114,146 238.1%
Other assets 143,551 53,450 168.6%
Total assets $1,018,779 $670,822 51.9%
Current liabilities $121,489 $66,322 83.2%
Other liabilities &
minority interest 293,271 54,908 434.1%
Stockholders' equity 604,019 549,592 9.9%
Total liabilities and
stockholders' equity $1,018,779 $670,822 51.9%
* Communication Services = includes all West Corporation services apart
from InterCall conferencing
SOURCE West Corporation
Investor Relations, Carol Padon of West Corporation, +1-402-963-1500
http://www.west.com
Copyright (C) 2003 PR Newswire. All rights reserved.
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