West (WSTC) 8-K Results of Operations and Financial Condition

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 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, NE, February 2nd, 2005– 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 Change			2004		2003		Percent 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

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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 28,000 employees based in North America, Europe and Asia.

For more information, please visit 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.

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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,						%
	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	%

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(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

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