West (WSTC) 8-K West Corporation Reports Fourth Quarter & Full Year 2003 Earnings

Exhibit 99.1

West Corporation	AT THE COMPANY:
11808 Miracle Hills Drive	Carol Padon
Omaha, NE 68154	Investor Relations
	(402) 963-1500

West Corporation Reports Fourth Quarter & Full Year 2003 Earnings

Record Full Year Results — Revenue of $988.3 Million, Net Income of $87.9 Million and Diluted EPS of $1.28

OMAHA, NE, February 4th, 2004– West Corporation (NASDAQ: WSTC), a leading provider of outsourced communication solutions, today announced its fourth quarter and full-year 2003 results.

Financial Summary (unaudited)

(In millions, except per share amounts and percentages)

	Three Months Ended							Twelve Months Ended
	Dec 31							Dec 31
					Percent							Percent
	2003		2002		Change			2003		2002		Change
Total Revenue	$	271.0	$	215.7		25.7	%	$	988.3	$	820.7		20.4	%
Operating Income	$	37.3	$	19.6		90.3	%	$	143.1	$	106.5		34.4	%
Net Income	$	22.6	$	12.2		85.5	%	$	87.9	$	68.6		28.0	%
Earnings per share (basic)	$	0.34	$	0.18				$	1.32	$	1.04
Earnings per share (diluted)	$	0.33	$	0.18				$	1.28	$	1.01

“Our consolidated year-over-year comparisons were enhanced by the acquisitions of InterCall and ConferenceCall.com,” said Thomas B. Barker, Chief Executive Officer of West Corporation. “Despite a slight year-over-year revenue decrease during the fourth quarter in our Communications Services segment and a $2.1 million write off associated

with a reduction in outbound capacity, we were able to meet our consolidated revenue and net income targets for the year.”

Consolidated Operating Results

For the fourth quarter ended December 31, 2003, revenues were $271.0 million compared to $215.7 million for the same quarter last year, an increase of 25.7%. Operating income for the fourth quarter was $37.3 million, an increase of 90.3% compared to $19.6 million for the fourth quarter of 2002. Net income was $22.6 million, up 85.5% compared to $12.2 million in the same quarter last year. Diluted earnings per share were 33 cents versus 18 cents in the same period of 2002.

For the fiscal year 2003, revenues were $988.3 million, a 20.4% increase compared to 2002 revenues of $820.7 million. Operating income was $143.1 million, up 34.4% compared to $106.5 million in the prior year. Net income increased 28.0% to $87.9 million, versus $68.6 million in 2002. The company earned $1.28 per diluted share in 2003, compared to $1.01 in 2002.

Margins

The company reported consolidated operating margins of approximately 13.8% in the fourth quarter of 2003, a 470 basis point increase over consolidated operating margins of 9.1% in the comparable period of 2002. For the twelve months ended December 31, 2003, consolidated operating margins were 14.5%, a 150 basis point increase over consolidated operating margins of 13.0% in fiscal 2002. The addition of the Conferencing segment, which historically has higher margins than the Communication Services segment, significantly improved the company’s consolidated operating margin. The Communications Services segment’s fourth quarter 2003 operating margin improved to 11.8% from 9.1% in the comparable period in 2002. For the year ended December 31, 2003, the Communication Services segment’s operating margin was 13.3% compared to 13.0% in the comparable period of 2002.

As a percentage of revenue, consolidated SG&A expense increased from 41.7% in the fourth quarter of 2002 to 42.7% in the fourth quarter of 2003. The fourth quarter SG&A was impacted by a charge of $2.1 million related to the sale and closing of outbound contact centers. This compares to a $2.5 million charge in the fourth quarter 2002, also related to closing outbound contact centers. For the twelve months ended December 31, 2003, consolidated SG&A expense as percentage of revenue increased to 41.0% from 38.4% in the previous year. The SG&A percentage of revenue increased 180 basis points in both the fourth quarter and annual periods due to the acquisitions of InterCall and ConferenceCall.com, which have a greater percentage of SG&A to revenue than our Communication Services segment.

Balance Sheet

At December 31, 2003, West Corporation had cash and short-term investments totaling $25.6 million and a current ratio of 1.66-to-1. On January 22, 2004, the company increased its line of credit by $125.0 million, which increased the unused and available portion of the revolving credit facility from $93.0 million at December 31, 2003 to $218.0 million currently.

“This has been an important and productive year in the development of our company,” said Paul Mendlik, Chief Financial Officer of West Corporation. “Not only did we successfully acquire and finance InterCall and ConferenceCall.com, but we also adapted to changing market conditions by rightsizing our workstation capacity. Part of this process included transferring some workstations from outbound teleservices to other Communication Services units.”

Conference Call

The company will hold a conference call to discuss earnings on February 5th 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, and conferencing and accounts receivable management services.

Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 24,000 employees based in North America, Europe and Asia.

For more information, please visit www.west.com.

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

			Three Months Ended December 31,						%			Twelve Months Ended December 31,						%
			2003			2002			Change			2003			2002			Change
Revenue			$	271,045		$	215,687			25.7	%	$	988,341		$	820,665			20.4	%
Cost of services				117,970			106,066			11.2	%		440,260			399,276			10.3	%
Selling, general and administrative expenses				115,801			90,035			28.6	%		404,972			314,886			28.6	%
Operating income				37,274			19,586			90.3	%		143,109			106,503			34.4	%
Other income (expense), net				(1,674	)		597			-380.4	%		(3,289	)		2,145			-253.3	%
Income before tax				35,600			20,183			76.4	%		139,820			108,648			28.7	%
Income tax expense				13,049			7,928			64.6	%		51,779			39,706			30.4	%
Minority Interest				—			97			-100.0	%		165			300			-45.0	%
Net income			$	22,551		$	12,158			85.5	%	$	87,876		$	68,642			28.0	%
Earnings per share:
	Basic		$	0.34		$	0.18					$	1.32		$	1.04
	Diluted		$	0.33		$	0.18					$	1.28		$	1.01
Weighted average common shares outstanding:
	Basic			66,745			65,987						66,495			65,823
	Diluted			68,898			67,329						68,617			68,129
SELECTED OPERATING DATA:
Revenue:
		Communication Services *	$	205,607		$	215,687					$	827,585		$	820,665
		Conferencing		65,438			—						160,756			—
		Total	$	271,045		$	215,687					$	988,341		$	820,665
Operating Income:
		Communication Services	$	24,222		$	19,586					$	109,969		$	106,503
		Conferencing		13,052			—						33,140			—
		Total	$	37,274		$	19,586					$	143,109		$	106,503
Operating Margin:
		Communication Services		11.8	%		9.1	%					13.3	%		13.0	%
		Conferencing		19.9	%		—						20.6	%		—
		Total		13.8	%		9.1	%					14.5	%		13.0	%
Number of Communication Services workstations (end of period)				13,231			14,230						13,231			14,230
Number of Communication Services ports (end of period)				143,148			151,759						143,148			151,759

* Communication Services = includes all West Corporation services apart from InterCall conferencing.

			Condensed Balance Sheet
			December 31,		December 31,		%
			2003		2002		Change
Current assets:
	Cash and short-term investments		$	25,563	$	137,927		-81.5	%
	Trade accounts receivable, net			153,428		121,868		25.9	%
	Other current assets			23,423		29,790		-21.4	%
		Total current assets		202,414		289,585		-30.1	%
Net property and equipment				234,650		213,641		9.8	%
Goodwill				452,848		114,146		296.7	%
Other assets				125,951		53,450		135.6	%
		Total assets	$	1,015,863	$	670,822		51.4	%
Current liabilities			$	121,621	$	66,322		83.4	%
Long Term Obligations				169,500		17,155		888.1	%
Other liabilities & minority interest				68,504		37,753		81.5	%
Stockholders’ equity				656,238		549,592		19.4	%
		Total liabilities and stockholders equity	$	1,015,863	$	670,822		51.4	%