OMAHA, Neb., July 23 /PRNewswire-FirstCall/ --
West Corporation (Nasdaq: WSTC - News), 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
quarter ended June 30, 2002.
Financial Summary (unaudited) (In thousands, except per share amounts and percentages) Three Months Ended Six Months Ended June 30 June 30 2002 2001 Percent 2002 2001 Percent Change Change Total Revenue $195,076 $193,006 1.1% $405,624 $396,048 2.4% Operating income $31,123 $30,404 2.4% $65,986 $64,321 2.6% Net income $20,285 $19,485 4.1% $42,877 $41,322 3.8% Net Income per share (basic) $0.31 $0.30 0.65 $0.64 Net Income per diluted share $0.30 $0.28 $0.63 $0.60
"West has remained focused on meeting and exceeding the needs of our clients, plus controlling our costs during a difficult economic environment," stated Thomas B. Barker, President and Chief Executive Officer.
For the second quarter of 2002, the company reported revenues of $195.1 million compared to revenues of $193.0 million in the same quarter last year. Operating income increased from $30.4 million in second quarter 2001 to $31.1 million this quarter, a 2.4% change. Net income also increased to $20.3 million from $19.5 million in last years second quarter, a 4.1% increase. Diluted earnings per share were $0.30 for the quarter compared to $0.28 in second quarter 2001. EBITDA (earnings before interest, taxes, depreciation and amortization) rose 6.9% to $46.3 million during the second quarter 2002 from $43.4 million in the same period last year.
Revenues grew 2.4% for the six months ended on June 30, 2002, up from $396.0 million to $405.6 million. Operating income improved 2.6% to $66.0 million from $64.3 million in the comparable 2001 period. In the first six months of 2002, Net income expanded 3.8% to $42.9 million from $41.3 million and EBITDA rose 7.3% to $95.9 million from $89.4 million.
As a percentage of revenue, operating income increased to 16.0% in the second quarter of 2002 from 15.8% in the second quarter of 2001. During the first six months of 2002, operating income as a percentage of revenues increased to 16.3% from 16.2% for the six months ended June 2001. In the second quarter of 2002, SG&A as a percentage of revenues increased to 36.5% from 33.2% in last year's second quarter. For the first six months of 2002, SG&A as a percentage of revenues rose to 35.6% from 32.9% in the comparable period of last year. The increase can be attributed to the additional overhead brought about by the acquisitions of Tel Mark Sales, Inc. and Dakotah Direct plus an increase in the allowance for bad debt.
At June 30, 2002, West Corporation had a current ratio of 4.4 to 1, higher than the current ratio of 3.5 to 1 at December 31, 2001. This significant improvement can be attributed to a decrease in current liabilities, dropping 23.2% from $93.6 million at the end of 2001 to $71.9 million, at June 30, 2002.
West Corporation also announced that it has entered into an agreement with Teleservices Jamaica Ltd, for the operation of contact centers in Montego Bay and Portmore, Jamaica. TJL has approximately 500 seats currently available and can expand to 1000 seats in the future if necessary. West will begin performing outbound transactions at these centers in late August or early September.
The agreement will allow West's clients to take advantage of the highly skilled and motivated workforce in Jamaica at a lower cost. West's technical infrastructure will be utilized allowing all scripting, reporting, call monitoring and call verification to be controlled by West's San Antonio facility.
"The integration of Tel Mark Sales and Dakotah Direct are progressing well and both divisions met our internal targets this quarter," said Mike Micek, Chief Financial Officer of West Corporation. "During the second quarter, we invested $19.1 million in capital expenditures primarily for contact center upgrades. Also, we were able to reduce our Days Sales Outstanding (DSO's) to 54 days from 60 days at the end of 2001."
The company will hold a conference call to discuss earnings on July 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, 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-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").
WEST CORPORATION CONDENSED STATEMENTS OF OPERATIONS Unaudited ($ in thousands except per share amounts and selected operating data) Three Months Ended June 30, 2002 2001 % change Revenue $195,076 $193,006 1.1% Cost of services 92,787 98,431 -5.7% Selling, general and administrative expense 71,166 64,171 10.9% Operating Income 31,123 30,404 2.4% Other Income 431 994 -56.6% Income before tax 31,554 31,398 0.5% Income tax expense 11,220 11,704 -4.1% Minority Interest 49 209 -76.6% Net income $20,285 $19,485 4.1% Earnings per common share Basic $0.31 $0.30 Diluted $0.30 $0.28 Weighted average number of shares outstanding: Basic common shares 65,659 64,804 Diluted common share 68,491 68,485 Selected operating data: Operating margin 15.95% 15.75% Number of workstations (end of period) 13,357 11,055 Number of ports 128,187 56,167 (end of period) WEST CORPORATION CONDENSED STATEMENTS OF OPERATIONS Unaudited ($ in thousands except per share amounts and selected operating data) Six Months Ended June 30, 2002 2001 % change Revenue $405,624 $396,048 2.4% Cost of services 195,106 201,465 -3.2% Selling, general and administrative expense 144,532 130,262 11.0% Operating Income 65,986 64,321 2.6% Other Income 1,142 1,648 -30.7% Income before tax 67,128 65,969 1.8% Income tax expense 24,096 24,365 -1.1% Minority Interest 155 282 -45.0% Net income $42,877 $41,322 3.8% Earnings per common share Basic $0.65 $0.64 Diluted $0.63 $0.60 Weighted average number of shares outstanding: Basic common shares 65,506 64,692 Diluted common share 68,530 68,457 Selected operating data: Operating margin 16.27% 16.24% Number of workstations (end of period) 13,857 11,055 Number of ports 128,187 56,167 (end of period) June 30, December 31, Current assets: 2002 2001 % change Cash and short-term investments $139,301 $151,520 -8.1% Trade accounts receivable, net 118,045 131,316 -10.1% Other current assets 55,638 45,936 21.1% Total current assets 312,984 328,772 -4.8% Net property and equipment 216,767 202,671 7.0% Goodwill 68,069 41,942 62.3% Other assets 25,805 18,050 43.0% Total assets $623,625 $591,435 5.4% Current liabilities $71,880 $93,592 -23.2% Other liabilities & minority interest 32,228 29,684 8.6% Stockholders' equity 519,517 468,159 11.0% Total liabilities and stockholders' equity $623,625 $591,435 5.4%