February 2, 2005

West Corporation Reports Record Fourth Quarter & Full Year 2004 Earnings

Produces Full Year Revenue of $1.2 Billion, Net Income of $113 Million, and Diluted EPS of $1.63

OMAHA, Neb., Feb 02, 2005 /PRNewswire-FirstCall via COMTEX/ -- West Corporation (Nasdaq: WSTC), a leading provider of outsourced communication solutions, today announced record fourth quarter and full-year 2004 results.

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

                           Three Months Ended        Twelve Months Ended
                                Dec 31                    Dec 31

                         2004    2003     Percent    2004      2003    Percent
                                          Change                       Change
     Total Revenue     $336.7    $271.0    24.2%   $1,217.4    $988.3   23.2%
     Operating Income   $52.5     $37.3    40.7%     $187.9    $143.1   31.3%
     Net Income         $30.5     $22.6    35.1%     $113.2     $87.9   28.8%
     Earnings per
      share (basic)     $0.45     $0.34    32.4%      $1.67    $1.32    26.5%
     Earnings per
      share (diluted)   $0.43     $0.33    30.3%      $1.63    $1.28    27.3%

"We achieved significant revenue growth in all of our business segments, both during the fourth quarter and over the past year," said Thomas B. Barker, Chief Executive Officer of West Corporation. "The acquisitions of Worldwide and ECI, combined with the strengths in our existing businesses, have positioned us well for 2005."

Consolidated Operating Results

For the fourth quarter ended December 31, 2004, revenues were $336.7 million compared to $271.0 million for the same quarter last year, an increase of 24.2%. Revenue from acquired entities accounted for $36.4 million of this increase. Operating income for the fourth quarter was $52.5 million, an increase of 40.7% compared to $37.3 million for the fourth quarter of 2003. Net income was $30.5 million, up 35.2% compared to $22.6 million in the same quarter last year. Diluted earnings per share were $0.43 versus $0.33 in the same period of 2003.

For the fiscal year 2004, revenues were $1,217.4 million, a 23.2% increase compared to 2003 revenues of $988.3 million. Revenue from acquired entities accounted for $165.3 million of this increase. Operating income was $187.9 million, up 31.3% compared to $143.1 million in the prior year. Net income increased 28.8% to $113.2 million, versus $87.9 million in 2003. The company earned $1.63 per diluted share in 2004, compared to $1.28 in 2003.

Margins

The company reported consolidated operating income as a percentage of revenue of 15.6% in the fourth quarter of 2004, up from 13.8% in the comparable quarter last year. For the twelve months ended December 31, 2004, operating income as a percentage of revenues was 15.4%, compared to 14.5% in fiscal 2003. The operating margin improvements for the year reflect management's control of SG&A expense and the impact of the acquisition of Worldwide Asset Management on August 1, 2004.

Balance Sheet

At December 31, 2004, West Corporation had cash and short-term investments totaling $32.6 million and a current ratio of 1.8 to 1. Net cash flows from operating activities were $222.5 million for the year, an increase of $26.3 million over 2003.

"During the fourth quarter, we invested $21.6 million in capital expenditures to open a new contact center in Ohio, as well as expand six domestic and three international centers to support new business opportunities. We also redeployed one Outbound contact center to the Receivables Management segment and converted two additional Outbound centers for Inbound dedicated agent business," commented Paul Mendlik, Chief Financial Officer of West. "During 2004, we added 2,500 workstations, including 1,300 international workstations, and our 'West at Home' program has continued to expand, now utilizing over 5,500 agents."

West amended its existing revolving credit facility in the fourth quarter of 2004. The amended facility increases the borrowing capacity to $400 million, provides greater financial flexibility, reduces the Company's interest rate, and relaxes certain debt covenants. West utilized $230 million of this credit facility at December 31, 2004 and had an effective interest rate of 3.3% in the fourth quarter. This facility was used to fund the ECI acquisition.

Conference Call

The company will hold a conference call to discuss earnings on February 3rd at 10:00 AM Central Time. Investors may access the call by visiting the Investor Relations section of the West Corporation website at http://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, and conferencing and accounts receivable management services.

Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 28,000 employees based in North America, Europe and Asia.

For more information, please visit http://www.west.com .

This news release contains forward looking statements within the meaning of the Federal securities laws. You can identify forward looking statements by the use of such words as "will," "expect," "plans," "believes," "estimates," "intend," "continue," or the negative of such terms, or other comparable terminology. Forward looking statements also include the assumptions underlying or relating to any of the foregoing statements. For example, the statement regarding our 2005 positioning is a forward looking statement.

Our results could differ materially from the expectations expressed in
these statements.  Further information regarding the factors that could cause
actual results to differ from expected projected results can be found in
documents filed by the company with the United States Securities and Exchange
Commissions (the "SEC") including our annual report on Form 10-K for the year
ended December 31, 2003, and subsequently filed quarterly reports on Form 10-
Q.  We assume no obligation to update these forward looking statements.



                  WEST CORPORATION
           CONDENSED STATEMENTS OF OPERATIONS
        (Unaudited, in thousands except per share and selected operating data)


                        Three Months Ended            Twelve Months Ended
                           December 31,      %           December 31,      %
                           2004     2003    Change    2004      2003    Change
    Revenue             $336,718 $271,045   24.2% $1,217,383 $988,341    23.2%
    Cost of services     154,637  117,970   31.1%    541,979  440,260    23.1%
    Selling, general
     and administrative
     expenses            129,623  115,801   11.9%    487,513  404,972    20.4%
    Operating income      52,458   37,274   40.7%    187,891  143,109    31.3%
    Other income
     (expense), net       (1,772)  (1,674)   5.9%     (6,368)  (3,289)   93.6%
    Income before tax     50,686   35,600   42.4%    181,523  139,820    29.8%
    Income tax expense    17,618   13,048   35.0%     65,762   51,779    27.0%
    Minority Interest      2,590       --              2,590      165  1469.7%
    Net income           $30,478  $22,552   35.1%   $113,171  $87,876    28.8%

    Earnings per share:
     Basic                 $0.45    $0.34   32.4%      $1.67    $1.32    26.5%
     Diluted               $0.43    $0.33   30.3%      $1.63    $1.28    27.3%
    Weighted average common
     shares outstanding:
      Basic               68,075   66,745             67,643   66,495
      Diluted             70,249   68,898             69,469   68,617

    SELECTED OPERATING DATA:
     Revenue:
      Communication
       Services         $219,085 $197,494   10.9%   $817,718 $794,043    3.0%
      Conferencing        75,027   65,470   14.6%    302,469  160,796   88.1%
      Receivables
       Management         44,023    8,324  428.9%     99,411   34,134  191.2%
      Inter Segment
       Eliminations       (1,417)    (243)            (2,215)    (632)
      Total             $336,718 $271,045   24.2%  1,217,383 $988,341   23.2%

    Operating Income
     (Loss):
     Communication
      Services           $31,642  $24,760   27.8%   $105,638 $109,981   -3.9%
     Conferencing         13,767   13,083    5.2%     67,264   33,180  102.7%
      Receivables
       Management          7,049     (569)    --      14,989      (52)    --
         Total           $52,458   37,274   40.7%   $187,891 $143,109   31.3%
                              --       --                 --
    Operating Margin:
     Communication
      Services              14.4%    12.5%   15.2%      12.9%    13.9%  -7.2%
     Conferencing           18.3%    20.0%   -8.5%      22.2%    20.6%   7.8%
     Receivables
      Management            16.0%    -6.8%     --       15.1%    -0.2%    --
     Total                  15.6%    13.8%   13.0%      15.4%    14.5%   6.2%

    Number of workstations
     (end of period)      15,776   13,231    19.2%    15,776   13,231   19.2%
    Number of Communication
     Services ports
     (end of period)     137,176  143,148    -4.2%   137,176  143,148   -4.2%


                                              Condensed Balance Sheet
                                             December 31,  December 31,   %
                                                 2004          2003     Change
    Current assets:
       Cash and short-term investments         $32,572       $25,563    27.4%
       Trade accounts receivable, net          195,598       153,428    27.5%
       Portfolio receivables, current           26,646           -
       Other current assets                     27,244        23,423    16.3%
         Total current assets                  282,060       202,414    39.3%
    Net property and equipment                 223,110       234,650    -4.9%
    Portfolio receivables, net                  56,897           -
    Goodwill                                   573,885       452,848    26.7%
    Other assets                               135,254       125,951     7.4%
         Total assets                       $1,271,206    $1,015,863    25.1%
    Current liabilities                       $160,755      $121,621    32.2%
    Long Term Obligations                      238,354       169,500    40.6%
    Other liabilities & minority interest       82,642        68,504    20.6%
    Stockholders' equity                       789,455       656,238    20.3%
       Total liabilities and stockholders
        equity                              $1,271,206    $1,015,863    25.1%


     (1) The common definition of EBITDA is "Earnings Before Interest, Taxes,
         Depreciation and Amortization." In evaluating financial performance,
         we use earnings before interest, taxes, depreciation and amortization
         and minority interest ("Adjusted EBITDA"). Adjusted EBITDA should be
         used in conjunction with GAAP financial measures and is not presented
         as an alternative to cash flow from operations as a measure of our
         liquidity or as an alternative to net income as an indicator or our
         operating performance.  Adjusted EBITDA, as presented, may not be
         comparable to similarly titled measures of other companies. Adjusted
         EBITDA is presented as we understand certain investors use it as one
         measure of our historical ability to service debt.  Also adjusted
         EBITDA is used in our debt covenants.  The following is a
         reconciliation of adjusted EBITDA to net income.

                  Amounts in thousands
                  Three Months Ended December 31,    2004              2003
                         Net Income                $30,478           $22,551
                         Interest Expense            2,518             1,859
                         Depreciation &
                          Amortization              26,838            24,166
                         Interest Income              (419)              (70)
                         Income Taxes               17,618            13,049
                         EBITDA                     77,033            61,555
                         Minority
                          Interest                   2,590               -
                         Adjusted EBITDA           $79,623           $61,555


                  Twelve Months Ended December 31,   2004              2003
                         Net Income               $113,171           $87,876
                         Interest Expense            8,165             5,503
                         Depreciation &
                          Amortization             100,185            86,466
                         Interest Income              (895)             (721)
                         Income Taxes               65,762            51,779
                         EBITDA                    286,388           230,903
                         Minority
                          Interest                   2,590               165
                                                  $288,978          $231,068

SOURCE West Corporation

Carol Padon, Investor Relations for West Corporation, +1-402-963-1500
http://www.prnewswire.com

Copyright (C) 2005 PR Newswire. All rights reserved.

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