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OMAHA, NE, April 23, 2002 - West Corporation (NASDAQ: WSTC), a leading provider of integrated customer contact solutions focused on helping Fortune 1000 companies acquire, retain and grow their customer relationships, today announced first quarter 2002 revenues of $210.5 million, a 3.7% increase compared to the first quarter 2001 revenues of $203.0 million. Net income for the first quarter rose by 3.5% to $22.6 million, from $21.8 million in the same period last year.
"Although the overall economic recovery is progressing slowly, West Corporation continues to grow," commented Thomas B. Barker, President and Chief Executive Officer. "The addition of Tel Mark Sales and Dakotah Direct will provide profitable new revenue sources for West this year as they become fully integrated into the Company. We look forward to continued profitable growth throughout the rest of the year."
Operating Results
For the quarter ended March 31, 2002, the Company recorded revenues of $210.5 million up 3.7% from $203.0 million in the first quarter 2001. Net income increased 3.5% to $22.6 million from $21.8 million last year. EBITDA (earnings before interest, taxes, depreciation, minority interest and amortization) grew 7.6% to $49.5 million from $46.0 million in the first quarter 2001. Fully diluted earnings per share for the first quarter was 33 cents, versus 32 cents in the prior year comparable period.
"The acquisitions of Tel Mark Sales and Dakotah Direct added over 1,500 integrated workstations to the Company, bringing our total capacity to 13,399 workstations," commented Michael Micek, Chief Financial Officer of West. "The integration process is progressing as planned and we are pleased with the initial results these divisions have achieved."
Margins
As a percentage of revenue, first quarter net operating income decreased to 16.6% from 16.7%in the comparable period of last year. SG&A as a percentage of revenues increased slightly during first quarter, due to depreciation and integration costs related to recent acquisitions from 32.6% to 34.8%.
Balance Sheet
In addition to the acquisitions of Tel Mark Sales Inc and Dakotah Direct, West invested $14.7 million in capital expenditures during the first quarter, which was primarily related to contact center expansion and upgrades. The Company's balance sheet remained strong in light of these investments with cash and cash equivalents totaling $155.3 million. The Company also maintained its positive current ratio of 3.5-to-1.
Conference Call
The company will hold a conference call to discuss earnings on April 24th 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, retain and grow their customer relationships.
West's customized solutions include large volume agent based transaction processing, interactive voice response and Web-enabled customer contact solutions. 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-five 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").
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