EXHIBIT 99.2
[LOGO OF TELESERVICES CORP]
West TeleServices Corporation AT THE COMPANY:
11808 Miracle Hills Drive Michael A. Micek Carol Padon
Omaha, NE 68154 Chief Financial Officer Investor Relations
(402) 963-1500 (402) 963-1500
FOR IMMEDIATE RELEASE: Thursday, April 6, 2000
West TeleServices Corp. Reports Record Revenues and
Net Income for First Quarter;
Revenue Increases 23.2% to $170.1 Million
First Quarter 2000 Summary
- --------------------------
. Revenues increased 23.2% to $170.1 million compared to first quarter
1999
. Net Income was $17.0 million for the quarter, up 22.4%
. Operating Income grew 21.0% to $26.4 million from $21.8 million in the
first quarter of 2000
. Annualized return on average equity was 22.5% for the quarter
. EBITDA increased 21.8% to $36.9 million from $30.3 million in the
first quarter 2000
Financial Summary (unaudited)
- -----------------------------
(in thousands, except per share amounts and percentages)
Three Months Ended
March 31
Percent
2000 1999 Change
---- ----
Total Revenue $170,059 $137,992 23.2%
Operating Income 26,371 21,802 21.0%
Net Income 17,028 13,909 22.4%
Net Income per share (Basic) 0.27 0.22
Net Income per diluted share 0.25 0.22
OMAHA, Neb., April 6, 2000 - West TeleServices Corporation (Nasdaq: WTSC or
"West"), a leading provider of innovative full service customer care solutions
using the latest in voice and Internet technology, announced today record
revenues and net income for the quarter ending March 31, 2000. This quarter's
results were primarily driven by sales growth across the three divisions,
specifically in Operator Teleservices, and a decrease in direct expenses.
"We are extremely pleased with this quarter's results," said Thomas B. Barker,
President and Chief Executive Officer. "As a result of the strong performance
across our service offerings and an increase in revenue of 23%, we reported
record results for the quarter. Our revenue mix continues to be well-balanced
with each division contributing significantly to our growth."
Barker continued, "During this quarter, we also unveiled our new iCare platform
for Internet customer care, the first of several strategic initiatives planned
for the year. In addition, we opened a new customer contact center to meet the
increased demand for services from the Operator Teleservices division. We have
a strong sales pipeline, and we will continue to implement our strategic
initiatives."
Operating Results
For the quarter ended March 31, 2000, revenues increased 23.2% to $170.1 million
from $138.0 million during the comparable period last year. Operating income
rose steadily for the first quarter 2000, ending the period up 21.0% to $26.4
million from $21.8 million in the same quarter in the prior year. During the
first quarter 2000, net income expanded 22.4% to $17.0 million up from $13.9
million in the same period of 1999. Diluted earnings per share increased to
$0.25 for the first quarter versus $0.22 for 1999. EBITDA (earnings before
interest, taxes, depreciation and amortization) for the first quarter 2000
represented a 21.8% increase to $36.9 million up from $30.3 million for the
first quarter 1999.
During the first quarter, the composition of revenue continued to be balanced
among the service platforms with Operator Teleservices revenues generating 50.2%
of total revenues. Direct and Interactive Teleservices constituted 30.5% and
19.3% of total revenues for the same period, respectively.
Tom Barker said, "Through our two-pronged approach of aggressive sales marketing
and cost management, we exceeded our internal growth expectations and
accelerated the efficiency per workstation for Operator and Direct Teleservices
to one of the highest in the industry. Revenue per workstation for Operator and
Direct Teleservices for the quarter grew to $15,575 in comparison to $13,915 for
first quarter 1999. As stated last quarter, we expect to see continued momentum
in the Interactive Teleservices division from the increased demand for prepaid
calling cards and other interactive services."
Margins
As a percentage of revenue, operating income remained relatively constant at
15.5% in the first quarter 2000 compared to 15.8% in the first quarter 1999.
Direct costs improved 1.3% to 50.7% of revenue for the first quarter of 2000
compared to 52.0% for the same quarter last year. Quarter over quarter, SG&A
expenses as a percentage of revenue continue to be slightly higher, increasing
1.6% to 33.8% for the first quarter of 2000 from 32.2% for the first quarter of
1999. The increase in SG&A expense is due to depreciation expense accrued for
new contact centers, expenses related to 2000 site development and the change in
operating activity from Interactive to Operator Teleservices.
Balance Sheet
West's balance sheet remained strong with a current ratio of 2.2 to 1 on March
31, 2000, which remains consistent with the current ratio of 2.3 to 1 at year-
end 1999. During the first quarter, West financed $2.8 million of equipment
purchases with capital leases. The remaining $19.7 million of property and
equipment purchases were financed through cash flow from operations.
During the first quarter 2000, West invested $22.5 million in capital
expenditures primarily for contact center expansion and the planned opening of
two additional contact centers in the second quarter. Mike Micek, Chief
Financial Officer, said, "During the first quarter of 2000, we increased the
total number of workstations to 9,251 from 8,364 on December 31, 1999, which is
largely attributed to the two new Operator Teleservices contact centers that
added 444 new workstations. In addition, we created a total of 384 new
workstations at multiple existing locations in order to accommodate the
increased volumes in this division. This quarter, we also utilized 240 Direct
Teleservices workstations in San Antonio to handle the Operator Teleservices
increased demand," Micek continued.
About West TeleServices
- -----------------------
West TeleServices Corporation is a leading provider of innovative, full-service
customer care solutions that help Fortune 500 and E-100 companies acquire,
retain and grow profitable customer relationships. West has the technology and
experience needed to create customized solutions that work for both e-Business
initiatives and traditional business ventures. West's customer contact solutions
incorporate agent and automated services using the latest in voice and Internet
technology. Founded in 1986 and headquartered in Omaha, Nebraska, West has a
team of approximately 22,000 employees, including an IT staff of over 750,
occupying 26 state-of-the-art contact centers and seven interactive automated
voice and data processing centers across North America.
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 TELESERVICES CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
Unaudited
($ in thousands except per share amounts and selected operating data)
Three Months Ended
March 31,
2000 1999 %change
------------ ---------
Total revenue................. $ 170,059 $ 137,992 23.2%
Cost of services.............. 86,198 71,729 20.2%
Selling, general and
administrative expense...... 57,490 44,461 29.3%
------------ ---------
Operating Income.............. 26,371 21,802 21.0%
Other Income expense.......... 529 378 40.0%
Net income before tax......... 26,900 22,180 21.3%
------------ ---------
Income tax expense............ 9,872 8,271 19.4%
------------ ---------
Net income.................... $ 17,028 $ 13,909 22.4%
============ =========
Earnings per common share
Basic...................... $ 0.27 $ 0.22
Diluted.................... $ 0.25 $ 0.22
Weighted average number
of shares outstanding:
Basic common shares........ 63,892 63,330
Diluted common share....... 67,495 63,789
Selected operating data:
EBITDA..................... $36,943 $ 30,253
EBITDA Margin.............. 21.7% 21.9%
Operating margin........... 15.5% 15.8%
Net income margin.......... 10.0% 10.1%
Number of workstations
(end of period).......... 9,251 8,016
Number of ports
(end of period)........... 34,436 12,616
Current assets: March 31, 2000 December 31, 1999 %change
Cash and short-term investments... $ 77,182 $ 61,865 24.8%
Trade accounts receivable, net.... 101,916 88,056 15.7%
Other current assets.............. 30,189 35,219 -14.3%
-------- --------
Total current assets........... 209,287 185,140 13.0%
Net property and equipment........ 179,313 167,934 6.8%
Goodwill.......................... 44,890 45,311 -0.9%
Other assets...................... 10,125 10,604 -4.5%
-------- --------
Total assets................... $443,615 $408,989 8.5%
======== ========
Current liabilities............... $ 95,545 $ 80,713 18.4%
Other liabilities................. 33,635 36,314 -7.4%
Stockholders' equity.............. 314,435 291,982 7.7%
-------- --------
Total liabilities and
stockholders equity......... $443,615 $408,989 8.5%
======== ========