Exhibit
Access Worldwide Reports First Quarter Financial Results
BOCA RATON, Fla., May 5 /PRNewswire-FirstCall/ -- Access Worldwide
Communications, Inc. (OTC Bulletin Board: AWWC), a leading marketing services
company, today reported financial results for the three months ended March 31,
2004.
Our revenues increased $0.8 million, or 6.6%, to $13.0 million for the
three months ended March 31, 2004, compared to $12.2 million for the three
months ended March 31, 2003. Revenues for the Pharmaceutical Services
("Pharmaceutical") Segment, which includes our medical education and
pharmaceutical marketing businesses, increased $0.4 million, or 6.9%, to $6.2
million for the three months ended March 31, 2004, compared to $5.8 million
for the three months ended March 31, 2003. The improvement was primarily
attributed to an increase in new inbound programs which was offset by a
reduction of medical education revenue. Revenues for the Business Services
("Business") Segment, which includes our multilingual communications business,
increased $0.3 million, or 4.6%, to $6.8 million for the three months ended
March 31, 2004, compared to $6.5 million for the three months ended March 31,
2003. The improvement was primarily attributed to larger teleservices
programs and more production hours performed for an existing client.
We reported operating income of $0.07 million for the quarter ended March
31, 2004, compared to an operating loss of $0.5 million for the quarter ended
March 31, 2003. We reported net loss and diluted loss per share of $(0.3)
million and $(0.03), respectively, for the quarter ended March 31, 2004,
compared to $(0.7) million and $(0.07), respectively, for the first quarter of
2003. The improvement was primarily attributed to an increase in revenues and
an improvement in gross profit margins offset by higher interest expense
primarily attributed to the accretion of Convertible Notes discounts. Total
weighted average diluted shares outstanding for the quarters ended March 31,
2004 and March 31, 2003 were 9,740,501 and 9,740,168, respectively.
"We continue to see improvement in our Pharmaceutical Segment and continue
our efforts to expand capacity for our Business Segment," remarked Shawkat
Raslan, Chairman and Chief Executive Officer of Access Worldwide. "I am
encouraged by our first quarter results."
Founded in 1983, Access Worldwide provides a variety of sales, marketing
and medical education services. Among other things, we reach physicians,
pharmacists and patients on behalf of pharmaceutical clients, educating them
on new drugs, prescribing indications, medical procedures and disease
management programs. Services include product stocking, medical education,
database management, clinical trial recruitment and teleservices. For clients
in the telecommunications, financial services, insurance and consumer products
industries, we reach the established mainstream and growing multicultural
markets with multilingual teleservices. Access Worldwide is headquartered in
Boca Raton, Florida and has over 1,000 employees in offices throughout the
United States. More information is available at www.awwc.com.
This press release contains forward-looking statements including
statements regarding financial results. Such statements involve known or
unknown risks, uncertainties and other factors that may cause the actual
results to differ materially from those expressed or implied by such forward-
looking statements. Factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements,
include, but are not limited to, the following: our ability to continue as a
going concern if we are unable to generate cash flow and income from
continuing operations; our ability to continue to comply with the financial
covenants contained under our debt agreement; competition from other third-
party providers and those clients and prospects who may decide to do work in-
house that we currently do for them; our ability to successfully open and
operate at capacity our new communication center in Maine; consolidation in
the pharmaceutical, medical, telecommunications and consumer products
industries which reduces the number of clients and prospects that are able to
be served; potential consumer saturation reducing the need for services; our
ability and clients' ability to comply with state, federal and industry
regulations; our reliance on a limited number of major clients and the
possible loss of one or more clients; our ability to develop or fund the
operations of new products or service offerings; our reliance on technology;
our reliance on key personnel and labor force; the volatility of our stock
price; and the unpredictability of the outcome of the litigation in which we
are involved. For a more detailed discussion of these risks and others that
could affect results, see our filings with the Securities and Exchange
Commission, including the risk factors section of Access Worldwide's Annual
Report on Form 10-K for the year ended December 31, 2003 filed with the
Securities and Exchange Commission. The Company assumes no duty to update any
forward-looking statements.
Access Worldwide Communications, Inc.
Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2004 2003
ASSETS
Current Assets
Cash and cash equivalents $1,027,309 $472,722
Restricted cash 123,000 123,000
Accounts receivable, net 8,577,670 11,069,284
Unbilled receivables 1,474,629 1,176,797
Taxes receivable 658,666 658,666
Other assets, net 931,943 950,761
Total current assets 12,793,217 14,451,230
Property and equipment, net 3,665,778 3,881,954
Restricted cash 711,000 711,000
Other assets, net 490,958 434,769
Total assets $17,660,953 $19,478,953
LIABILITIES, MANDATORILY REDEEMABLE
PREFERRED STOCK AND
COMMON STOCKHOLDERS' DEFICIT
Current Liabilities
Current portion of indebtedness $3,464,095 $5,098,999
Current portion of indebtedness
-- related parties 352,334 383,334
Accounts payable and accrued
expenses 5,887,537 7,672,764
Accrued salaries, wages and
related benefits 1,428,885 1,347,385
Deferred revenue 4,305,481 2,852,628
Accrued interest and other
related party expenses 33,113 13,304
Total current liabilities 15,471,445 17,368,414
Long-term portion of indebtedness 354,338 97,768
Other long-term liabilities 777,619 775,109
Convertible notes, net 1,080,782 987,336
Mandatorily redeemable preferred
stock, $0.01 par value:
2,000,000 share authorized,
40,000 shares issued and
outstanding 4,000,000 4,000,000
Total liabilities 21,684,184 23,228,627
Commitments and contingencies
Common stockholders' deficit
Common stock, $0.01 par value:
voting 20,000,000 shares
authorized; 9,740,501 shares
issued and outstanding 97,405 97,405
Additional paid-in capital 64,950,294 64,950,294
Accumulated deficit (69,046,180) (68,770,973)
Deferred compensation (24,750) (26,400)
Total common stockholders'
deficit (4,023,231) (3,749,674)
Total liabilities and common
stockholders' deficit $17,660,953 $19,478,953
Access Worldwide Communications, Inc.
Consolidated Statements of Operations (Unaudited)
For the Three Months Ending
March 31,
2004 2003
Revenues $12,980,862 $12,236,508
Cost of revenues 7,928,149 8,284,239
Gross profit 5,052,713 3,952,269
Selling, general & administrative
expenses 4,985,894 4,460,460
Amortization expense - 37,014
Income (loss) from operations 66,819 (545,205)
Interest expense, net (342,026) (153,999)
Net loss $(275,207) $(699,204)
Basic loss per common share:
-- Net loss $(0.03) $(0.07)
Weighted average common shares
outstanding 9,740,501 9,740,168
Diluted loss per common share:
-- Net loss $(0.03) $(0.07)
Weighted average common shares
outstanding 9,740,501 9,740,168
SOURCE Access Worldwide Communications, Inc.
-0- 05/05/2004