Access Worldwide Reports First Quarter Financial Results
ARLINGTON, Va., May 15 /PRNewswire-FirstCall/ -- Access Worldwide
Communications, Inc. (OTC Bulletin Board: AWWC), an established marketing and
Business Process Outsourcing ("BPO") services company, today reported financial
results for quarter ended March 31, 2007.
Our revenues increased by $3.2 million, or 58.2%, to $8.7 million for the
quarter ended March 31, 2007, compared to $5.5 million for the quarter ended
March 31, 2006. Revenues for our U.S. Segment increased $1.9 million, or 40.4%
to $6.6 million for the quarter ended March 31, 2007, compared to $4.7 million
for the quarter ended March 31, 2006. The increase was attributed to a one time
performance incentive program ran by one of our clients and a 7% increase in
production hours produced. Revenues for our International Segment increased $1.4
million, or 175.0% to $2.2 million for the quarter ended March 31, 2007,
compared to $0.8 million for the quarter ended March 31, 2006. The increase in
revenues is primarily attributed to organic growth.
We reported net income from continuing operations of $0.01 million and basic
and diluted gain per share of common stock of $0.00 for the quarter ended March
31, 2007, compared to a net loss from continuing operations of ($1.0) million
and basic and diluted loss per share of common stock of $(0.05) for the quarter
ended March 31, 2006.
"We had increased revenues and lower costs of revenues as a percentage of
revenues for the quarter, and we also had lower interest expense," commented
Richard Lyew, Chief Financial Officer. "We also had positive working capital of
$4.0 million and cash and cash equivalents of $3.8 million."
Total weighted average diluted shares outstanding for the quarters ended
March 31, 2007 and March 31, 2006 were 17,679,065 and 16,889,039, respectively.
"We are very pleased with the performance of both our Domestic and
International operations during the first quarter," said Shawkat Raslan,
Chairman, President and Chief Executive Officer of Access Worldwide. "Our goal
continues to be to maximize the utilization of our domestic capacity while
expanding our international capacity."
Access Worldwide is an established marketing and BPO services company that
provides a variety of sales and communication services. Our spectrum of services
include the full range of inbound and outbound voice services such as customer
service, customer acquisition, helpdesk, and a growing list of IT and back
office services, among others. Headquartered in Arlington, Virginia, Access
Worldwide has about 1,000 employees in offices throughout the United States and
the Philippines. More information is available at www.accessww.com.
This press release contains forward-looking statements. 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 operations;
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; potential consumer
saturation reducing the need for services; our ability and our clients ability
to comply with state, federal and industry regulations; our reliance on a
limited number of major clients; the reduction in services performed for or the
loss of one or more major 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 and our ability to recruit additional
personnel. 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, 2006 filed with the Securities and Exchange
Commission. The Company assumes no duty to update any forward-looking
statements.
Access Worldwide Communications, Inc.
Condensed Consolidated Balance Sheets
March 31, 2006 December 31,
ASSETS (Unaudited) 2006
Current Assets:
Cash and cash equivalents $3,767,082 $2,836,980
Restricted cash 123,000 123,000
Accounts receivable, net of
allowance for doubtful accounts
of $97,275 and $99,130, respectively 6,030,866 6,956,218
Unbilled receivables - 7,750
Other current assets, net 661,052 831,958
Total current assets 10,582,000 10,755,906
Property and equipment, net 4,122,426 3,374,575
Restricted cash 343,000 343,000
Other assets, net 66,054 386,127
Total assets $15,113,480 $14,859,608
LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT
Current Liabilities:
Current portion of indebtedness $509,145 $438,866
Current portion of indebtedness
- related parties 1,750,000 1,750,000
Accounts payable 1,662,773 1,315,785
Accrued expense 474,146 654,140
Accrued salaries, wages and
related benefits 997,063 586,107
Customer deposits 1,105,753 1,210,146
Deferred revenue 133,770 669,290
Total current liabilities 6,632,650 6,624,334
Long-term portion of indebtedness 327,422 259,256
Other long-term liabilities 504,244 530,992
Convertible Notes, net 4,749,963 4,625,490
Mandatorily redeemable preferred
stock, $0.01 par value:
1,000,000 shares auth., 40,000
shares issued and outstanding 4,000,000 4,000,000
Total liabilities 16,214,279 16,040,072
Commitments and contingencies
Common stockholders' deficit:
Common stock, $0.01 par value:
voting 40,000,000 shares auth.;
17,679,065 and 17,340,065 shares
issued and outstanding,
respectively 176,791 173,401
Additional paid-in capital 71,475,293 71,362,793
Accumulated deficit (72,752,883) (72,716,658)
Total common stockholders'
deficit (1,100,799) (1,180,464)
Total liabilities and common
stockholders' deficit $15,113,480 $14,859,608
Access Worldwide Communications, Inc.
Condensed Consolidated Statements of Operations
Unaudited
For the Three Months Ending
March 31,
2007 2006
Revenues $8,747,688 $5,503,228
Cost and expenses:
Cost of services 6,523,738 4,308,940
Selling, general and
administrative expenses 1,659,293 1,353,133
Depreciation 287,484 271,577
Total costs and expenses 8,470,515 5,933,650
Income (loss) from operations 277,173 (430,422)
Interest expense, net (263,889) (460,839)
Income (loss) from continuing operations 13,284 (891,261)
Discontinued operations:
Loss from discontinued operations (49,509) (279,986)
Net loss (36,225) (1,171,247)
Basic and diluted income (loss)
per share of common stock:
Continuing operations $0.00 $(0.05)
Discontinued operations $(0.00) $(0.02)
Net loss $(0.00) $(0.07)
Weighted average common
shares outstanding 17,679,065 16,889,039
ACCESS WORLDWIDE COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months
Ended March 31,
2007 2006
Cash flows from operating activities:
Net income (loss) $13,284 $(891,262)
Adjustments to reconcile net income
(loss) to net cash used in operating
activities:
Depreciation and amortization 287,484 271,577
Amortization of deferred compensation 33,469 24,606
Amortization of deferred financing
costs 2,625 2,625
Accretion of discount on
Convertible Notes 124,473 186,166
Allowance for doubtful accounts 97,093 1,786
Share based compensation expense 22,050 20,327
Changes in assets and liabilities
from discontinued operations (99,710) (336,291)
Changes in operating assets and
liabilities:
Accounts receivable 765,259 (892,830)
Other assets 341,709 (189,106)
Accounts payable, accrued
expenses and other liabilities 280,362 5,383
Accrued salaries, wages and
related benefits 415,454 212,269
Accrued interest and related
party expenses - 6,082
Deferred revenue and
customer deposits (636,112) 36,073
Net cash used in operating
activities 1,647,440 (1,542,595)
Cash flows from investing activities:
Additions to property and equipment, net (771,696) 21,205
Additions to property and equipment from
discontinued operations, net - (187,549)
Increase in restricted cash - (1,208,000)
Net cash (used in) investing
activities (771,696) (1,374,344)
Cash flows from financing activities:
Payments on capital leases (115,210) (67,570)
Proceeds from issuance of common stock 4,590 4,410
Proceeds from exercise of common
stock options and warrants - 101,250
Net borrowings under Credit
Facility and Debt Agreement - 390,411
Loan origination fees - (35,000)
Proceeds from issuance of
Convertible Notes - 1,500,000
Payments under note payable to
related party (13,522) 103,012
Payments on capital leases from
discontinued operations - (4,106)
Net cash (used in) provided by
financing activities (124,142) 1,992,407
Net increase (decrease) in cash
and cash equivalents 930,102 (924,532)
Cash and cash equivalents, beginning
of year 2,836,980 1,755,926
Cash and cash equivalents, end of period $3,767,082 $831,394
Supplemental disclosure of cash flow
information:
Non-Cash Investing and Financing
Activities:
Equipment acquisitions through
capital leases $267,177 $-
Issuance of Warrants on Note $89,250 $-
SOURCE Access Worldwide Communications, Inc.
-0- 05/15/2007
/CONTACT: Mark Wright, General Counsel, Secretary of Access Worldwide
Communications, Inc., +1-703-292-5210, or mwright@accessww.com /
/Web site: http://www.accessww.com/