West (WSTC) 8-K West Corporation Reports Fourth Quarter and Full Year 2016 Results

Exhibit 99.1

West Corporation Reports Fourth Quarter and Full Year 2016 Results

and Provides 2017 Guidance

Company Posts Record Cash Flows from Operations

OMAHA, NE, February 1, 2017 –West Corporation (Nasdaq:WSTC), a global provider of communication and network infrastructure services, today announced its fourth quarter and full year 2016 results.

Select Financial Information

Unaudited, in millions except per share amounts	Three Months Ended Dec. 31,									Year Ended Dec. 31,
	2016			2015			% Change			2016			2015			% Change
Revenue	$	567.4		$	568.4			-0.2	%	$	2,292.0		$	2,280.3			0.5	%
Operating Income		102.7			105.0			-2.2	%		444.2			456.5			-2.7	%
Income from Continuing Operations		68.3			42.3			61.4	%		193.4			190.9			1.3	%
Earnings per Share from Continuing Operations - Diluted		0.80			0.50			60.0	%		2.29			2.24			2.2	%
Cash Flows from Continuing Operating Activities		126.7			127.5			-0.7	%		428.3			410.8			4.3	%
Cash Flows used in Continuing Investing Activities		(41.2	)		(118.7	)		-65.3	%		(108.3	)		(232.4	)		-53.4	%
Cash Flows used in Continuing Financing Activities		(88.4	)		(23.5	)		276.8	%		(311.9	)		(388.2	)		-19.7	%

SelectNon-GAAP Financial Information¹

Unaudited, in millions except per share amounts	Three Months Ended Dec. 31,							Year Ended Dec. 31,
	2016		2015		% Change			2016		2015		% Change
EBITDA from Continuing Operations	$	151.8	$	158.0		-4.0	%	$	640.7	$	649.3		-1.3	%
Adjusted EBITDA from Continuing Operations		164.9		165.1		-0.1	%		664.1		676.1		-1.8	%
Adjusted Operating Income		132.3		131.0		1.0	%		534.2		551.8		-3.2	%
Adjusted Income from Continuing Operations		64.5		63.7		1.4	%		256.9		265.9		-3.4	%
Adjusted Earnings per Share from Continuing Operations - Diluted		0.76		0.75		1.3	%		3.04		3.11		-2.3	%
Free Cash Flow from Continuing Operating Activities2		99.4		86.9		14.4	%		301.7		274.0		10.1	%

Dividend

The Company today also announced a $0.225 per common share dividend. The dividend is payable on March 2, 2017 to shareholders of record as of the close of business on February 21, 2017.

Fourth Quarter Operating Results

For the fourth quarter of 2016, revenue was $567.4 million, a decrease of 0.2 percent. Adjusted organic revenue growth⁵ slowed in the fourth quarter to 0.7 percent, primarily due to a decline in conferencing revenue.

Fourth quarter operating income was $102.7 million, a decrease of 2.2 percent. EBITDA¹ declined 4.0 percent to $151.8 million. Operating income and EBITDA were negatively impacted by an $8.4 million restructuring charge due to a workforce reduction plan implemented in the quarter as part of strategic and cost savings initiatives. Adjusted operating income¹ increased 1.0 percent to $132.2 million and Adjusted EBITDA¹ was nearly flat at $164.9 million.

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Income from continuing operations increased 61.4 percent to $68.3 million, primarily due to a decrease in the fourth quarter effective tax rate to negative 1.8 percent. This change resulted from a fourth quarter restructuring of foreign legal entities that lowered income tax expense (primarily deferred) on unremitted foreign earnings. Adjusted income from continuing operations¹ was $64.5 million, an increase of 1.4 percent.

“West Corporation finished the year with a fourth quarter that was stronger than we expected,” said Tom Barker, chairman and chief executive officer. “Our consolidated revenue was down slightly primarily due to a decline in conferencing revenue. However, our four growth businesses (UCaaS, Safety Services, Interactive Services and Specialized Agent Services) grew 5.5 percent on an organic basis in the fourth quarter. Additionally, we had double-digit growth in free cash flow in the fourth quarter and full year. During the fourth quarter we also made changes to our cost structure that we expect to positively impact our results in 2017 and further strengthen West for the future.”

Fourth quarter results by segment were as follows:

• Unified Communications Services revenue decreased 5 percent; adjusted organic growth⁵ was negative 2.8 percent due to price compression and fewer minutes in conferencing, partially offset by low double-digit growth in the UCaaS business. Operating income decreased 20.7 percent due to the revenue decline and a restructuring charge incurred to better align expenses with expected revenue. Adjusted operating income¹ decreased 14.5 percent.

• Safety Services revenue increased 3.9 percent; excluding acquisitions, revenue increased 3.5 percent, primarily due to growth from clients adopting new technologies, partially offset by lower equipment sales in the quarter. Operating income increased $11.0 million to $16.7 million due to revenue growth and cost savings initiatives, partially offset by a restructuring charge incurred as part of a strategic realignment of resources around growth initiatives. Adjusted operating income¹ increased $11.6 million to $23.7 million.

• Interactive Services revenue increased 11.2 percent; excluding acquisitions, revenue increased 8.0 percent due to increased volumes from new and existing clients. Operating income increased 37.0 percent to $9.1 million and adjusted operating income¹ increased 21.2 percent to $15.0 million primarily due to revenue growth.

¹ See Reconciliation ofNon-GAAP Financial Measures below.

²  Free cash flow is calculated as cash flows from operating activities less cash capital expenditures.

³  Revenue growth attributable to acquired entities for the fourth quarter of 2016 includes Magnetic North, ClientTell, Synrevoice and 911 ETC. Revenue growth attributable to acquired entities for the full year 2016 includes SharpSchool, Magnetic North, ClientTell, Synrevoice and 911 ETC.

⁴  Based on loan covenants. Covenant loan ratio is debt net of cash and excludes accounts receivable securitization debt.

⁵  Adjusted organic growth, anon-GAAP metric, is provided on the Selected Financial Data tables and excludes revenue from acquired entities, revenue from previously disclosed lost clients and the estimated impact of foreign currency exchange rates. The Company believes adjusted organic growth provides a useful measure of growth in its ongoing business. Details of the Company’s revenue growth are presented in the Selected Financial Data table.

NM: Not Meaningful

2

• Specialized Agent Services revenue increased 3.1 percent primarily due to growth in healthcare advocacy services partially offset by slower than historical recoveries in cost management services. Operating income declined $1.6 million to $4.6 million and adjusted operating income¹ declined $2.1 million primarily due to revenue mix and higher labor costs.

Full Year Operating Result Highlights

For the year ended December 31, 2016, revenue was $2,292.0 million, an increase of 0.5 percent. Adjusted organic revenue growth⁵ for 2016 was 2.3 percent.

Operating income in 2016 was $444.2 million, a decrease of 2.7 percent. EBITDA¹ was $640.7 million, a decrease of 1.3 percent. Adjusted operating income¹ was $534.2 million, a decrease of 3.2 percent.

Full year 2016 revenue results by segment were as follows:

• Unified Communications Services revenue decreased 2.9 percent; adjusted organic growth⁵ was 1.0 percent.

• Safety Services revenue increased 5.3 percent; excluding acquisitions, revenue increase 5.2 percent.

• Interactive Services revenue increased 13.2 percent; excluding acquisitions, revenue increased 6.9 percent.

• Specialized Agent Services revenue increased 1.6 percent.

Balance Sheet, Cash Flow and Liquidity – 2016 Highlights

• Cash flow from operations were $428.3 million, an increase of 4.3 percent, primarily due to lower cash tax payments.

• Free cash flow^1,2 increased 10.1 percent to $301.7 million due to the increase in cash flows from operations and lower capital expenditures. The Company invested $126.6 million, or 5.5 percent of revenue, in capital expenditures.

• 4.45x net leverage (net debt to pro forma adjusted EBITDA ratio, as calculated pursuant to the Company’s senior secured term debt facilities⁴) down from 4.68x at December 31, 2015.

• Repaid $191.1 million in debt; cash balance of $183.1 million at December 31, 2016.

“In 2016, West generated record operating cash flow. We deployed this cash toward repaying $191 million of our long-term debt, making two acquisitions for approximately $20 million and returning nearly $100 million to our shareholders in the form of dividends and stock repurchases,” said Jan Madsen, chief financial officer. “We also took steps to refinance our debt, ending the year with a more attractive maturity profile and decreased leverage ratio. We believe each of these steps is consistent with our focus on driving shareholder value and enhancing West’s financial flexibility.”

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2017 Guidance

For 2017, the Company expects the results presented in the table below. This guidance assumes no acquisitions or changes in the current operating environment, capital structure or exchange rates. The two most significant exchange rates used for 2017 guidance are the British Pound Sterling at 1.25 and the Euro at 1.06. These foreign currency exchange rates, reflected in the guidance below, would negatively impact 2017 revenue by approximately $14 million and 2017 adjusted diluted earnings per share by $0.02 compared to 2016 rates.

In millions except per share amounts and leverage ratio
	2016 Actual		2017 Guidance
Revenue	$	2,292.0		$2,286 - $2,362
Operating Income		444.2		$413 - $446
Net Income		193.4		$175 - $196
Earnings per Share - Diluted		2.29		$2.07 - $2.31
Cash Flows from Operating Activities		428.3		$380 - $420
Capital Expenditures		126.6		$100 - $130
Non-GAAP Metrics1
In millions except per share amounts
	2016 Actual		2017 Guidance
Adjusted EBITDA	$	664.1		$639 - $672
Adjusted Operating Income		534.2		$500 - $532
Adjusted Net Income		256.9		$234 - $255
Adjusted Earnings per Share - Diluted		3.04		$2.76 - $3.00

“For 2017, including the negative impact of foreign currency exchange rates, we expect revenue in our conferencing and collaboration business to decrease3-5 percent and revenue in ournon-conferencing businesses to havemid- to high–single-digit growth. We expect double-digit growth in our UCaaS business; high-single-digit growth in Safety Services and Telecom Services; andmid- to high-single-digit growth in Interactive Services and Specialized Agent Services. Included across segments, we expect our healthcare practice to have high-single-digit growth,” said Tom Barker.

Conference Call

The Company will hold a conference call to discuss these topics on February 2, 2017 at 11:00 AM Eastern Time (10:00 AM Central Time). Investors may access the call by visiting the Financials section of the West Corporation website at www.west.com and clicking on the Webcast link. A replay of the call will be available on the Company’s website at www.west.com.

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About West Corporation

West Corporation (Nasdaq:WSTC) is a global provider of communication and network infrastructure services. West helps its clients more effectively communicate, collaborate and connect with their audiences through a diverse portfolio of solutions that include unified communications services, safety services, interactive services such as automated notifications, telecom services and specialized agent services.

For 30 years, West has provided reliable, high-quality voice and data services. West has sales and operations in the United States, Canada, Europe, the Middle East, Asia Pacific and Latin America. For more information, please call1-800-841-9000 or visitwww.west.com.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “continue” or similar terminology. These statements reflect only West’s current expectations and are not guarantees of future performance or results. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include, but are not limited to, the strategic alternatives available to the Company and the ability to execute on strategic alternatives; competition in West’s highly competitive markets; increases in the cost of voice and data services or significant interruptions in these services; West’s ability to keep pace with its clients’ needs for rapid technological change and systems availability; the continued deployment and adoption of emerging technologies; the loss, financial difficulties or bankruptcy of any key clients; security and privacy breaches of the systems West uses to protect personal data; the effects of global economic trends on the businesses of West’s clients; thenon-exclusive nature of West’s client contracts and the absence of revenue commitments; the cost of pending and future litigation; the cost of defending against intellectual property infringement claims; the effects of extensive regulation affecting many of West’s businesses; West’s ability to protect its proprietary information or technology; service interruptions to West’s data and operation centers; West’s ability to retain key personnel and attract a sufficient number of qualified employees; increases in labor costs and turnover rates; the political, economic and other conditions in the countries where West operates; changes in foreign exchange rates; West’s ability to complete future acquisitions, integrate or achieve the objectives of its recent and future acquisitions; and future impairments of our substantial goodwill, intangible assets, or other long-lived assets. In addition, West is subject to risks related to its level of indebtedness. Such risks include West’s ability to generate sufficient cash to service its indebtedness and fund its other liquidity needs; West’s ability to comply with covenants contained in its debt instruments; West’s ability to obtain additional financing; the incurrence of significant additional indebtedness by West and its subsidiaries; and the ability of West’s lenders to fulfill their lending commitments. West is also subject to other risk factors described in documents filed by the Company with the United States Securities and Exchange Commission.

These forward-looking statements speak only as of the date on which the statements were made. West undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

5

WEST CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, in thousands except per share data)

	Three Months Ended Dec. 31,
	2016			2015			% Change
Revenue	$	567,380		$	568,430			-0.2	%
Cost of services		243,533			239,389			1.7	%
Selling, general and administrative expenses		221,157			224,071			-1.3	%
Operating income		102,690			104,970			-2.2	%
Interest expense, net		35,290			38,411			-8.1	%
Accelerated amortization of deferred financing costs		63			2,304			NM
Other expense (income), net		210			(1,178	)		NM
Income from continuing operations before tax		67,127			65,433			2.6	%
Income tax (benefit) expense attributed to continuing operations		(1,193	)		23,093			NM
Income from continuing operations		68,320			42,340			61.4	%
Income from discontinued operations, net of income taxes		—			19,935			NM
Net income	$	68,320		$	62,275			9.7	%
Weighted average shares outstanding:
Basic		83,254			83,243
Diluted		84,967			84,809
Earnings per share - Basic:
Continuing operations	$	0.82		$	0.51			60.8	%
Discontinued operations		—			0.24			NM
Total Earnings Per Share - Basic	$	0.82		$	0.75			9.3	%
Earnings per share - Diluted:
Continuing operations	$	0.80		$	0.50			60.0	%
Discontinued operations		—			0.24			NM
Total Earnings Per Share - Diluted	$	0.80		$	0.74			8.1	%

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SELECTED SEGMENT FINANCIAL DATA:

	Three Months Ended Dec. 31,
	2016			2015			% Change
Revenue:
Unified Communications Services	$	340,033		$	357,780			-5.0	%
Safety Services		75,672			72,863			3.9	%
Interactive Services		79,339			71,332			11.2	%
Specialized Agent Services		75,414			73,143			3.1	%
Intersegment eliminations		(3,078	)		(6,688	)		NM
Total	$	567,380		$	568,430			-0.2	%
Depreciation:
Unified Communications Services	$	17,128		$	17,713			-3.3	%
Safety Services		4,424			5,027			-12.0	%
Interactive Services		4,360			3,978			9.6	%
Specialized Agent Services		3,222			2,566			25.6	%
Total	$	29,134		$	29,284			-0.5	%
Amortization:
Unified Communications Services - SG&A	$	2,910		$	3,618			-19.6	%
Safety Services - SG&A		3,625			5,436			-33.3	%
Safety Services - COS		3,365			3,088			9.0	%
Interactive Services - SG&A		5,306			4,512			17.6	%
Specialized Agent Services - SG&A		4,605			5,411			-14.9	%
Deferred financing costs		1,834			6,928			-73.5	%
Total	$	21,645		$	28,993			-25.3	%
Share-based compensation:
Unified Communications Services	$	3,074		$	3,399			-9.6	%
Safety Services		865			973			-11.1	%
Interactive Services		538			611			-11.9	%
Specialized Agent Services		982			1,157			-15.1	%
Total	$	5,459		$	6,140			-11.1	%
Cost of services:
Unified Communications Services	$	162,720		$	163,296			-0.4	%
Safety Services		24,379			27,441			-11.2	%
Interactive Services		18,440			15,926			15.8	%
Specialized Agent Services		39,603			37,400			5.9	%
Intersegment eliminations		(1,609	)		(4,674	)		NM
Total	$	243,533		$	239,389			1.7	%
Selling, general and administrative expenses:
Unified Communications Services	$	107,354		$	106,302			1.0	%
Safety Services		34,582			39,718			-12.9	%
Interactive Services		51,831			48,786			6.2	%
Specialized Agent Services		31,169			29,544			5.5	%
Corporate Other		(2,310	)		1,735			NM
Intersegment eliminations		(1,469	)		(2,014	)		NM
Total	$	221,157		$	224,071			-1.3	%
Operating income:
Unified Communications Services	$	69,959		$	88,182			-20.7	%
Safety Services		16,711			5,704			193.0	%
Interactive Services		9,068			6,620			37.0	%
Specialized Agent Services		4,642			6,199			-25.1	%
Corporate Other		2,310			(1,735	)		NM
Total	$	102,690		$	104,970			-2.2	%
Operating margin:
Unified Communications Services		20.6	%		24.6	%
Safety Services		22.1	%		7.8	%
Interactive Services		11.4	%		9.3	%
Specialized Agent Services		6.2	%		8.5	%
Total		18.1	%		18.5	%

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SELECTED FINANCIAL DATA:

				Contribution
				to Rev. Growth
Changes in Revenue - 4Q16 compared to 4Q15:
Revenue for the three months ended Dec. 31, 2015	$	568,430
Revenue from acquired entities3		3,244			0.6	%
Revenue from previously disclosed lost client		(1,200	)		-0.2	%
Estimated impact of foreign currency exchange rates		(7,122	)		-1.3	%
Adjusted organic growth5		4,028			0.7	%
Revenue for the three months ended Dec. 31, 2016	$	567,380			-0.2	%

8

WEST CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, in thousands except per share data)

	Year Ended Dec. 31,
	2016			2015		% Change
Revenue	$	2,291,963		$	2,280,259		0.5	%
Cost of services		981,788			970,693		1.1	%
Selling, general and administrative expenses		865,961			853,116		1.5	%
Operating income		444,214			456,450		-2.7	%
Interest expense, net		148,279			154,068		-3.8	%
Accelerated amortization of deferred financing costs		36,532			2,304		NM
Other expense (income), net		(409	)		1,405		NM
Income from continuing operations before tax		259,812			298,673		-13.0	%
Income tax expense attributed to continuing operations		66,423			107,757		-38.4	%
Income from continuing operations		193,389			190,916		1.3	%
Income from discontinued operations, net of income taxes		—			50,924		NM
Net income	$	193,389		$	241,840		-20.0	%
Weighted average shares outstanding:
Basic		82,969			83,420
Diluted		84,599			85,394
Earnings per share - Basic:
Continuing operations	$	2.33		$	2.29		1.7	%
Discontinued operations		—			0.61		NM
Total Earnings Per Share - Basic	$	2.33		$	2.90		-19.7	%
Earnings per share - Diluted:
Continuing operations	$	2.29		$	2.24		2.2	%
Discontinued operations		—			0.59		NM
Total Earnings Per Share - Diluted	$	2.29		$	2.83		-19.1	%

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SELECTED SEGMENT FINANCIAL DATA:

	Year Ended Dec. 31,
	2016			2015			% Change
Revenue:
Unified Communications Services	$	1,425,281		$	1,467,711			-2.9	%
Safety Services		296,320			281,391			5.3	%
Interactive Services		300,739			265,664			13.2	%
Specialized Agent Services		281,542			276,983			1.6	%
Intersegment eliminations		(11,919	)		(11,490	)		NM
Total	$	2,291,963		$	2,280,259			0.5	%
Depreciation:
Unified Communications Services	$	69,371		$	69,769			-0.6	%
Safety Services		17,481			18,847			-7.2	%
Interactive Services		16,390			14,385			13.9	%
Specialized Agent Services		11,861			8,213			44.4	%
Total	$	115,103		$	111,214			3.5	%
Amortization:
Unified Communications Services - SG&A	$	13,000		$	13,414			-3.1	%
Safety Services - SG&A		14,139			19,055			-25.8	%
Safety Services - COS		13,048			12,592			3.6	%
Interactive Services - SG&A		21,005			16,210			29.6	%
Specialized Agent Services - SG&A		18,387			19,779			-7.0	%
Deferred financing costs		48,342			21,945			120.3	%
Total	$	127,921		$	102,995			24.2	%
Share-based compensation:
Unified Communications Services	$	14,330		$	13,119			9.2	%
Safety Services		4,061			3,697			9.8	%
Interactive Services		2,533			2,328			8.8	%
Specialized Agent Services		4,464			3,781			18.1	%
Total	$	25,388		$	22,925			10.7	%
Cost of services:
Unified Communications Services	$	673,735		$	673,475			0.0	%
Safety Services		103,304			108,742			-5.0	%
Interactive Services		68,348			59,125			15.6	%
Specialized Agent Services		142,880			135,672			5.3	%
Intersegment eliminations		(6,479	)		(6,321	)		NM
Total	$	981,788		$	970,693			1.1	%
Selling, general and administrative expenses:
Unified Communications Services	$	424,351		$	416,386			1.9	%
Safety Services		138,313			150,241			-7.9	%
Interactive Services		201,760			181,495			11.2	%
Specialized Agent Services		122,224			110,843			10.3	%
Corporate Other		(15,247	)		(680	)		NM
Intersegment eliminations		(5,440	)		(5,169	)		NM
Total	$	865,961		$	853,116			1.5	%
Operating income:
Unified Communications Services	$	327,195		$	377,850			-13.4	%
Safety Services		54,703			22,408			144.1	%
Interactive Services		30,631			25,044			22.3	%
Specialized Agent Services		16,438			30,468			-46.0	%
Corporate Other		15,247			680			NM
Total	$	444,214		$	456,450			-2.7	%
Operating margin:
Unified Communications Services		23.0	%		25.7	%
Safety Services		18.5	%		8.0	%
Interactive Services		10.2	%		9.4	%
Specialized Agent Services		5.8	%		11.0	%
Total		19.4	%		20.0	%

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SELECTED FINANCIAL DATA:

				Contribution
				to Rev. Growth
Changes in Revenue - 2016 compared to 2015:
Revenue for the year 2015	$	2,280,259
Revenue from acquired entities3		24,194			1.1	%
Revenue from two previously disclosed lost clients		(45,700	)		-2.0	%
Estimated impact of foreign currency exchange rates		(18,546	)		-0.8	%
Adjusted organic growth5		51,756			2.3	%
Revenue for the year 2016	$	2,291,963			0.5	%

11

WEST CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	December 31,			December 31,			%
	2016			2015			Change
Assets:
Current assets:
Cash and cash equivalents	$	183,059		$	182,338			0.4	%
Trust and restricted cash		20,141			19,829			1.6	%
Accounts receivable, net		369,068			373,087			-1.1	%
Income taxes receivable		4,366			19,332			-77.4	%
Prepaid assets		40,886			43,093			-5.1	%
Deferred expenses		44,886			65,781			-31.8	%
Other current assets		31,889			22,040			44.7	%
Assets held for sale		—			17,672			NM
Total current assets		694,295			743,172			-6.6	%
Property and Equipment:
Property and equipment		1,088,205			1,053,678			3.3	%
Accumulated depreciation and amortization		(755,754	)		(718,834	)		5.1	%
Net property and equipment		332,451			334,844			-0.7	%
Goodwill		1,916,192			1,915,690			0.0	%
Intangible assets, net		315,474			370,021			-14.7	%
Other assets		182,426			191,490			-4.7	%
Total assets	$	3,440,838		$	3,555,217			-3.2	%
Liabilities and Stockholders’ Deficit:
Current Liabilities:
Accounts payable	$	78,881		$	92,935			-15.1	%
Deferred revenue		151,148			161,828			-6.6	%
Accrued expenses		224,871			219,234			2.6	%
Current maturities of long-term debt		39,709			24,375			62.9	%
Total current liabilities		494,609			498,372			-0.8	%
Long-term obligations		3,129,963			3,318,688			-5.7	%
Deferred income taxes		88,864			104,222			-14.7	%
Other long-term liabilities		169,251			186,073			-9.0	%
Total liabilities		3,882,687			4,107,355			-5.5	%
Stockholders’ Deficit:
Common stock		86			85			1.2	%
Additionalpaid-in capital		2,223,379			2,193,193			1.4	%
Retained deficit		(2,490,455	)		(2,607,415	)		-4.5	%
Accumulated other comprehensive loss		(87,633	)		(72,736	)		20.5	%
Treasury stock at cost		(87,226	)		(65,265	)		33.6	%
Total stockholders’ deficit		(441,849	)		(552,138	)		-20.0	%
Total liabilities and stockholders’ deficit	$	3,440,838		$	3,555,217			-3.2	%

12

Reconciliation ofNon-GAAP Financial Measures

Adjusted Operating Income Reconciliation

Adjusted operating income is not a measure of financial performance under generally accepted accounting principles (“GAAP”). The Company believes adjusted operating income provides a relevant measure of operating profitability and a useful basis for evaluating the ongoing operations of the Company. Adjusted operating income is used by the Company to assess operating income before the impact of acquisitions and acquisition-related costs and certainnon-cash items. Adjusted operating income is used by the Company as a benchmark for performance and compensation by certain executives. Adjusted operating income should not be considered in isolation or as a substitute for operating income or other profitability data prepared in accordance with GAAP. Adjusted operating income, as presented, may not be comparable to similarly titled measures of other companies. Set forth below is a reconciliation of adjusted operating income from operating income.

Please note: Adjustments were made to third quarter 2016 M&A and acquisition-related costs for the Safety Services and Specialized Agent Services segments. On a consolidated basis, these adjustments totaled $0.1 million. Full year results shown in the tables below reflect these adjustments.

13

Reconciliation of Adjusted Operating Income from Operating Income

Unaudited, in thousands
	Three Months Ended Dec. 31,
	2016			2015			% Change
Consolidated:
Operating income	$	102,690		$	104,970			-2.2	%
Amortization of acquired intangible assets		16,446			18,977			-13.3	%
Share-based compensation		5,459			6,140			-11.1	%
Secondary equity offering expense		—			(186	)		NM
Significant restructuring		8,423			—			NM
Gain on sale of real estate		(1,101	)		—			NM
M&A and acquisition-related costs		375			1,097			-65.8	%
Adjusted operating income	$	132,292		$	130,998			1.0	%
Adjusted operating income margin		23.3	%		23.0	%
Unified Communications Services:
Operating income	$	69,959		$	88,182			-20.7	%
Amortization of acquired intangible assets		2,910			3,618			-19.6	%
Share-based compensation		3,074			3,399			-9.6	%
Secondary equity offering expense		—			(94	)		NM
Significant restructuring		5,482			—			NM
M&A and acquisition-related costs		347			483			-28.2	%
Adjusted operating income	$	81,772		$	95,588			-14.5	%
Adjusted operating income margin		24.0	%		26.7	%
Safety Services:
Operating income	$	16,711		$	5,704			193.0	%
Amortization of acquired intangible assets		3,625			5,436			-33.3	%
Share-based compensation		865			973			-11.1	%
Secondary equity offering expense		—			(59	)		NM
Significant restructuring		2,373			—			NM
M&A and acquisition-related costs		80			—			NM
Adjusted operating income	$	23,654		$	12,054			96.2	%
Adjusted operating income margin		31.3	%		16.5	%
Interactive Services:
Operating income	$	9,068		$	6,620			37.0	%
Amortization of acquired intangible assets		5,306			4,512			17.6	%
Share-based compensation		538			611			-11.9	%
Secondary equity offering expense		—			(13	)		NM
Significant restructuring		97			—			NM
M&A and acquisition-related costs		(52	)		612			NM
Adjusted operating income	$	14,957		$	12,342			21.2	%
Adjusted operating income margin		18.9	%		17.3	%
Specialized Agent Services:
Operating income	$	4,642		$	6,199			-25.1	%
Amortization of acquired intangible assets		4,605			5,411			-14.9	%
Share-based compensation		982			1,157			-15.1	%
Secondary equity offering expense		—			(19	)		NM
Significant restructuring		433			—			NM
Adjusted operating income	$	10,662		$	12,748			-16.4	%
Adjusted operating income margin		14.1	%		17.4	%
Corporate Other:
Operating income (loss)	$	2,310		$	(1,735	)
Secondary equity offering expense		—			(1	)
Gain on sale of real estate		(1,101	)		—
Significant restructuring		38			—
M&A and acquisition-related costs		—			2
Adjusted operating income (loss)	$	1,247		$	(1,734	)

14

Reconciliation of Adjusted Operating Income from Operating Income

Unaudited, in thousands
	Year Ended Dec. 31,
	2016			2015			% Change
Consolidated:
Operating income	$	444,214		$	456,450			-2.7	%
Amortization of acquired intangible assets		66,531			68,458			-2.8	%
Share-based compensation		25,388			22,925			10.7	%
Secondary equity offering expense		—			855			NM
Significant restructuring		8,423			—			NM
Gain on sale of real estate		(14,064	)		—			NM
M&A and acquisition-related costs		3,745			3,074			21.8	%
Adjusted operating income	$	534,237		$	551,762			-3.2	%
Adjusted operating income margin		23.3	%		24.2	%
Unified Communications Services:
Operating income	$	327,195		$	377,850			-13.4	%
Amortization of acquired intangible assets		13,000			13,414			-3.1	%
Share-based compensation		14,330			13,119			9.2	%
Secondary equity offering expense		—			153			NM
Significant restructuring		5,482			—			NM
M&A and acquisition-related costs		1,659			485			NM
Adjusted operating income	$	361,666		$	405,021			-10.7	%
Adjusted operating income margin		25.4	%		27.6	%
Safety Services:
Operating income	$	54,703		$	22,408			144.1	%
Amortization of acquired intangible assets		14,139			19,055			-25.8	%
Share-based compensation		4,061			3,697			9.8	%
Secondary equity offering expense		—			19			NM
Significant restructuring		2,373			—			NM
M&A and acquisition-related costs		3,653			—			NM
Adjusted operating income	$	78,929		$	45,179			74.7	%
Adjusted operating income margin		26.6	%		16.1	%
Interactive Services:
Operating income	$	30,631		$	25,044			22.3	%
Amortization of acquired intangible assets		21,005			16,210			29.6	%
Share-based compensation		2,533			2,328			8.8	%
Secondary equity offering expense		—			22			NM
Significant restructuring		97			—			NM
M&A and acquisition-related costs		2,122			2,353			-9.8	%
Adjusted operating income	$	56,388		$	45,957			22.7	%
Adjusted operating income margin		18.7	%		17.3	%
Specialized Agent Services:
Operating income	$	16,438		$	30,468			-46.0	%
Amortization of acquired intangible assets		18,387			19,779			-7.0	%
Share-based compensation		4,464			3,781			18.1	%
Secondary equity offering expense		—			31			NM
Significant restructuring		433			—			NM
M&A and acquisition-related costs		(3,689	)		150			NM
Adjusted operating income	$	36,033		$	54,209			-33.5	%
Adjusted operating income margin		12.8	%		19.6	%
Corporate Other:
Operating income	$	15,247		$	680
Secondary equity offering expense		—			630
Gain on sale of real estate		(14,064	)		—
Significant restructuring		38			—
M&A and acquisition-related costs		—			86
Adjusted operating income	$	1,221		$	1,396

15

Adjusted Net Income, Adjusted Income from Continuing Operations and Adjusted Earnings per Share Reconciliation

Adjusted net income, adjusted income from continuing operations and adjusted earnings per share (EPS) arenon-GAAP measures. The Company believes these measures provide a useful indication of profitability and basis for assessing the operations of the Company without the impact of bond redemption premiums, acquisitions and acquisition-related costs, significant restructuring costs and certainnon-cash items. Adjusted net income and adjusted income from continuing operations should not be considered in isolation or as a substitute for net income or other profitability metrics prepared in accordance with GAAP. Adjusted net income and adjusted income from continuing operations, as presented, may not be comparable to similarly titled measures of other companies. The Company utilizes thesenon-GAAP measures to make decisions about the use of resources, analyze performance, measure management’s performance with stated objectives and compensate management relative to the achievement of such objectives. Set forth below is a reconciliation of adjusted income from continuing operations from income from continuing operations and adjusted net income from net income.

Please note: Adjustments were made to third quarter 2016 M&A and acquisition-related costs for the Safety Services and Specialized Agent Services segments. On a consolidated basis, these adjustments totaled $0.1 million. Full year results shown in the tables below reflect these adjustments.

16

Reconciliation of Adj. Income from Continuing Ops from Income from Continuing Ops

and Adjusted Net Income from Net Income

Unaudited, in thousands except per share data
CONTINUING OPERATIONS	Three Months Ended Dec. 31,
	2016			2015			% Change
Income from continuing operations	$	68,320		$	42,340			61.4	%
Amortization of acquired intangible assets		16,446			18,977
Amortization of deferred financing costs		1,834			6,928
Interest rate swap ineffectiveness		(1,130	)		—
Share-based compensation		5,459			6,140
Secondary equity offering expense		—			(186	)
Gain on sale of real estate		(1,101	)		—
Significant restructuring		8,423			—
M&A and acquisition-related costs		375			1,097
Pre-tax total		30,306			32,956
Income tax expense on adjustments		11,049			11,630
Foreign entity restructuring tax benefit		(23,046	)		—
Adjusted income from continuing operations	$	64,531		$	63,666			1.4	%
Diluted shares outstanding		84,967			84,809
Adjusted EPS from continuing operations - diluted	$	0.76		$	0.75			1.3	%
DISCONTINUED OPERATIONS	Three Months Ended Dec. 31,
	2016			2015
Income from discontinued operations	$	—		$	19,935
Adjusted income from discontinued operations	$	—		$	19,935
Diluted shares outstanding		84,967			84,809
Adjusted EPS from discontinued operations - diluted	$	—		$	0.24
CONSOLIDATED	Three Months Ended Dec. 31,
	2016			2015			% Change
Net income	$	68,320		$	62,275			9.7	%
Amortization of acquired intangible assets		16,446			18,977
Amortization of deferred financing costs		1,834			6,928
Interest rate swap ineffectiveness		(1,130	)		—
Share-based compensation		5,459			6,140
Secondary equity offering expense		—			(186	)
Gain on sale of real estate		(1,101	)		—
Significant restructuring		8,423			—
M&A and acquisition-related costs		375			1,097
Pre-tax total		30,306			32,956
Income tax expense on adjustments		11,049			11,630
Foreign entity restructuring tax benefit		(23,046	)		—
Adjusted net income	$	64,531		$	83,601			-22.8	%
Diluted shares outstanding		84,967			84,809
Adjusted EPS - diluted	$	0.76		$	0.99			-23.2	%

17

Reconciliation of Adj. Income from Continuing Ops from Income from Continuing Ops

and Adjusted Net Income from Net Income

Unaudited, in thousands except per share data
CONTINUING OPERATIONS	Year Ended Dec. 31,
	2016			2015			% Change
Income from continuing operations	$	193,389		$	190,916			1.3	%
Amortization of acquired intangible assets		66,531			68,458
Amortization of deferred financing costs		48,342			21,945
Interest rate swap ineffectiveness		(1,130	)		—
Share-based compensation		25,388			22,925
Secondary equity offering expense		—			855
Gain on sale of real estate		(14,064	)		—
Significant restructuring		8,423			—
M&A and acquisition-related costs		3,745			3,074
Pre-tax total		137,235			117,257
Income tax expense on adjustments		50,634			42,306
Foreign entity restructuring tax benefit		(23,046	)		—
Adjusted income from continuing operations	$	256,944		$	265,867			-3.4	%
Diluted shares outstanding		84,599			85,394
Adjusted EPS from continuing operations - diluted	$	3.04		$	3.11			-2.3	%
DISCONTINUED OPERATIONS	Year Ended Dec. 31,
	2016			2015
Income from discontinued operations	$	—		$	50,924
Amortization of acquired intangible assets		—			41
Share-based compensation		—			1,576
M&A and acquisition-related costs		—			386
Pre-tax total		—			2,003
Income tax benefit on adjustments		—			(15	)
Adjusted income from discontinued operations	$	—		$	52,942
Diluted shares outstanding		84,599			85,394
Adjusted EPS from discontinued operations - diluted	$	—		$	0.62
CONSOLIDATED	Year Ended Dec. 31,
	2016			2015			% Change
Net income	$	193,389		$	241,840			-20.0	%
Amortization of acquired intangible assets		66,531			68,499
Amortization of deferred financing costs		48,342			21,945
Interest rate swap ineffectiveness		(1,130	)		—
Share-based compensation		25,388			24,501
Secondary equity offering expense		—			855
Gain on sale of real estate		(14,064	)		—
Significant restructuring		8,423			—
M&A and acquisition-related costs		3,745			3,460
Pre-tax total		137,235			119,260
Income tax expense on adjustments		50,634			42,291
Foreign entity restructuring tax benefit		(23,046	)		—
Adjusted net income	$	256,944		$	318,809			-19.4	%
Diluted shares outstanding		84,599			85,394
Adjusted EPS - diluted	$	3.04		$	3.73			-18.5	%

18

Free Cash Flow Reconciliation

The Company believes free cash flow provides a relevant measure of liquidity and a useful basis for assessing the Company’s ability to fund its activities, including the financing of acquisitions, debt service, stock repurchases and distribution of earnings to shareholders. Free cash flow is calculated as cash flows from operating activities less cash capital expenditures. Free cash flow is not a measure of financial performance under GAAP. Free cash flow should not be considered in isolation or as a substitute for cash flows from operating activities or other liquidity measures prepared in accordance with GAAP. Free cash flow, as presented, may not be comparable to similarly titled measures of other companies. Set forth below is a reconciliation of free cash flow from cash flows from operating activities.

Reconciliation of Free Cash Flow from Operating Cash Flow

Unaudited, in thousands
CONTINUING OPERATIONS	Three Months Ended Dec. 31,							Year Ended Dec. 31,
	2016		2015		% Change			2016		2015		% Change
Cash flows from operating activities	$	126,673	$	127,547		-0.7	%	$	428,275	$	410,768		4.3	%
Cash capital expenditures		27,278		40,628		-32.9	%		126,581		136,810		-7.5	%
Free cash flow	$	99,395	$	86,919		14.4	%	$	301,694	$	273,958		10.1	%
DISCONTINUED OPERATIONS	Three Months Ended Dec. 31,							Year Ended Dec. 31,
	2016		2015					2016		2015
Cash flows from (used in) operating activities	$	—	$	15,419				$	—	$	7,222
Cash capital expenditures		—		—					—		1,930
Free cash flow	$	—	$	15,419				$	—	$	5,292
CONSOLIDATED	Three Months Ended Dec. 31,							Year Ended Dec. 31,
	2016		2015		% Change			2016		2015		% Change
Cash flows from operating activities	$	126,673	$	142,966		-11.4	%	$	428,275	$	417,990		2.5	%
Cash capital expenditures		27,278		40,628		-32.9	%		126,581		138,740		-8.8	%
Free cash flow	$	99,395	$	102,338		-2.9	%	$	301,694	$	279,250		8.0	%

EBITDA and Adjusted EBITDA Reconciliation

The common definition of EBITDA is “Earnings Before Interest Expense, Taxes, Depreciation and Amortization.” In evaluating liquidity and performance, the Company uses “Adjusted EBITDA.” The Company defines Adjusted EBITDA as earnings before interest expense, share-based compensation, taxes, depreciation and amortization, gain on assets held for sale and transaction costs. EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under GAAP. Although the Company uses Adjusted EBITDA as a measure of its liquidity and performance, the use of Adjusted EBITDA is limited because it does not include certain material costs, such as depreciation, amortization and interest, necessary to operate the business. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for net income, cash flow from operating activities or other income or cash flow data prepared in accordance with GAAP. Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is presented here as the Company understands investors use it as a measure of its historical ability to service debt and compliance with covenants in its senior credit facilities. Further, Adjusted EBITDA is presented here as the Company uses it to measure its performance and to conduct and evaluate its business during its regular review of operating results for the periods presented. Set forth below is a reconciliation of EBITDA and Adjusted EBITDA from cash flow from operating activities and net income.

19

Please note: Adjustments were made to third quarter 2016 M&A and acquisition-related costs for the Safety Services and Specialized Agent Services segments. On a consolidated basis, these adjustments totaled $0.1 million. Full year results shown in the tables below reflect these adjustments.

Reconciliation of EBITDA and Adjusted EBITDA from Operating Cash Flow

Unaudited, in thousands
CONTINUING OPERATIONS	Three Months Ended Dec. 31,						Year Ended Dec. 31,
	2016			2015			2016			2015
Cash flows from operating activities	$	126,673		$	127,547		$	428,275		$	410,768
Income tax expense (benefit)		(1,193	)		23,093			66,423			107,757
Deferred income tax benefit (expense)		14,828			(14,888	)		30,211			(8,930	)
Interest expense and other financing charges		35,685			41,236			186,160			158,356
Provision for share-based compensation		(5,459	)		(6,140	)		(25,388	)		(22,925	)
Amortization of deferred financing costs		(1,834	)		(6,928	)		(48,342	)		(21,945	)
Gain on sale of real estate		1,101			—			14,064			—
Other		(322	)		(448	)		(1,512	)		(672	)
Changes in operating assets and liabilities, net of business acquisitions		(17,722	)		(5,454	)		(9,237	)		26,884
EBITDA		151,757			158,018			640,654			649,293
Provision for share-based compensation		5,459			6,140			25,388			22,925
Secondary equity offering expense		—			(186	)		—			855
Gain on sale of real estate		(1,101	)		—			(14,064	)		—
Significant restructuring		8,423			—			8,423			—
M&A and acquisition-related costs		375			1,097			3,745			3,074
Adjusted EBITDA	$	164,913		$	165,069		$	664,146		$	676,147
Cash flows from operating activities	$	126,673		$	127,547		$	428,275		$	410,768
Cash flows used in investing activities	$	(41,196	)	$	(118,651	)	$	(108,263	)	$	(232,433	)
Cash flows used in financing activities	$	(88,376	)	$	(23,453	)	$	(311,911	)	$	(388,243	)
DISCONTINUED OPERATIONS	Three Months Ended Dec. 31,						Year Ended Dec. 31,
	2016			2015			2016			2015
Cash flows from operating activities	$	—		$	15,419		$	—		$	7,222
Income tax expense		—			(19,717	)		—			(372	)
Deferred income tax expense		—			4,516			—			2,223
Provision for share-based compensation		—			—			—			(1,576	)
Other		—			—			—			29,596
Changes in operating assets and liabilities, net of business acquisitions		—			—			—			13,500
EBITDA		—			218			—			50,593
Provision for share-based compensation		—			—			—			1,576
M&A and acquisition-related costs		—			—			—			386
Gain on sale of business		—			(182	)		—			(46,838	)
Adjusted EBITDA	$	—		$	36		$	—		$	5,717
Cash flows used in operating activities	$	—		$	15,419		$	—		$	7,222
Cash flows from investing activities	$	—		$	—		$	—		$	275,815
Cash flows used in financing activities	$	—		$	—		$	—		$	—

20

Reconciliation of EBITDA and Adjusted EBITDA from Operating Cash Flow, cont.

CONSOLIDATED	Three Months Ended Dec. 31,						Year Ended Dec. 31,
	2016			2015			2016			2015
Cash flows from operating activities	$	126,673		$	142,966		$	428,275		$	417,990
Income tax expense (benefit)		(1,193	)		3,376			66,423			107,385
Deferred income tax expense		14,828			(10,372	)		30,211			(6,707	)
Interest expense and other financing charges		35,685			41,236			186,160			158,356
Provision for share-based compensation		(5,459	)		(6,140	)		(25,388	)		(24,501	)
Amortization of deferred financing costs		(1,834	)		(6,928	)		(48,342	)		(21,945	)
Gain on sale of real estate		1,101			—			14,064			—
Other		(322	)		(448	)		(1,512	)		28,924
Changes in operating assets and liabilities, net of business acquisitions		(17,722	)		(5,454	)		(9,237	)		40,384
EBITDA		151,757			158,236			640,654			699,886
Provision for share-based compensation		5,459			6,140			25,388			24,501
Secondary equity offering expense		—			(186	)		—			855
Gain on sale of real estate		(1,101	)		—			(14,064	)		—
Significant restructuring		8,423			—			8,423			—
M&A and acquisition-related costs		375			1,097			3,745			3,460
Gain on sale of business		—			(182	)		—			(46,838	)
Adjusted EBITDA	$	164,913		$	165,105		$	664,146		$	681,864
CONSOLIDATED
Cash flows from operating activities	$	126,673		$	142,966		$	428,275		$	417,990
Cash flows from (used in) investing activities	$	(41,196	)	$	(118,651	)	$	(108,263	)	$	43,382
Cash flows used in financing activities	$	(88,376	)	$	(23,453	)	$	(311,911	)	$	(388,243	)

21

Reconciliation of EBITDA and Adjusted EBITDA from Net Income

Unaudited, in thousands
CONTINUING OPERATIONS	Three Months Ended Dec. 31,						Year Ended Dec. 31,
	2016			2015			2016			2015
Income from continuing operations	$	68,320		$	42,340		$	193,389		$	190,916
Interest expense and other financing charges		35,685			41,236			186,160			158,356
Depreciation and amortization		48,945			51,349			194,682			192,264
Income tax expense (benefit)		(1,193	)		23,093			66,423			107,757
EBITDA		151,757			158,018			640,654			649,293
Provision for share-based compensation		5,459			6,140			25,388			22,925
Secondary equity offering expense		—			(186	)		—			855
Gain on sale of real estate		(1,101	)		—			(14,064	)		—
Significant restructuring		8,423			—			8,423			—
M&A and acquisition-related costs		375			1,097			3,745			3,074
Adjusted EBITDA	$	164,913		$	165,069		$	664,146		$	676,147
DISCONTINUED OPERATIONS	Three Months Ended Dec. 31,						Year Ended Dec. 31,
	2016			2015			2016			2015
Income from discontinued operations	$	—		$	19,935		$	—		$	50,924
Depreciation and amortization		—			—			—			41
Income tax expense		—			(19,717	)		—			(372	)
EBITDA		—			218			—			50,593
Provision for share-based compensation		—			—			—			1,576
M&A and acquisition-related costs		—			—			—			386
Gain on sale of business		—			(182	)		—			(46,838	)
Adjusted EBITDA	$	—		$	36		$	—		$	5,717
CONSOLIDATED	Three Months Ended Dec. 31,						Year Ended Dec. 31,
	2016			2015			2016			2015
Net income	$	68,320		$	62,275		$	193,389		$	241,840
Interest expense and other financing charges		35,685			41,236			186,160			158,356
Depreciation and amortization		48,945			51,349			194,682			192,305
Income tax expense (benefit)		(1,193	)		3,376			66,423			107,385
EBITDA		151,757			158,236			640,654			699,886
Provision for share-based compensation		5,459			6,140			25,388			24,501
Secondary equity offering expense		—			(186	)		—			855
Gain on sale of real estate		(1,101	)		—			(14,064	)		—
Significant restructuring		8,423			—			8,423			—
M&A and acquisition-related costs		375			1,097			3,745			3,460
Gain on sale of business		—			(182	)		—			(46,838	)
Adjusted EBITDA	$	164,913		$	165,105		$	664,146		$	681,864

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Non-GAAP Metrics used in 2017 Guidance

Ranges are shown for each line item. Totals may not foot.

In millions except per share amounts
Reconciliation of Adjusted EBITDA from Operating Income
	2017 Guidance
	Min (low)				Max (high)
Operating income	$	413		—	$	446
Depreciation and amortization		195		—		196
Other income		2		—		2
EBITDA	$	610		—	$	644
Provision for share-based compensation		27		—		27
M&A and acquisition-related costs		2		—		2
Adjusted EBITDA	$	639		—	$	672
Reconciliation of Adj. Operating Income from Operating Income
	2017 Guidance
	Min (low)				Max (high)
Operating income	$	413		—	$	446
Amortization of acquired intangible assets		57		—		57
Provision for Share-based compensation		27		—		27
M&A and acquisition-related costs		2		—		2
Adjusted operating income	$	500		—	$	532
Reconciliation of Adj. Net Income and Adj. EPS from Net Income
	2017 Guidance
	Min (low)				Max (high)
Net income	$	175		—	$	196
Amortization of acquired intangible assets		57		—		57
Amortization of deferred financing costs		8		—		8
Provision for Share-based compensation		27		—		27
M&A and acquisition-related costs		2		—		2
Pre-tax total		269		—		290
Income tax expense on adjustments		(35	)	—		(35	)
Adjusted net income	$	234		—	$	255
Adjusted EPS - diluted	$	2.76		—	$	3.00

###

AT THE COMPANY:    

Dave Pleiss

Investor Relations

West Corporation

(402)963-1500

DMPleiss@west.com

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