Exhibit 99.1
[LOGO OF ACCESS WORLDWIDE]
Contacts:
Access Worldwide Communications, Inc. Access Worldwide Communications, Inc.
(571) 438-6140 (571) 438-6140
Mark Wright Richard Lyew
Investor Relations Executive Vice President & CFO
mwright@accessww.com rlyew@accessww.com
ACCESS WORLDWIDE REPORTS SECOND QUARTER FINANCIAL RESULTS
BOCA RATON, FL - August 15, 2005 - Access Worldwide Communications, Inc. (OTC
Bulletin Board: AWWC), a leading marketing services company, today reported
financial results for the quarter ended June 30, 2005.
For the Three Months Ended June 30, 2005
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Revenues for the second quarter of 2005 decreased 32.1% to $9.5 million from
revenues of $14.0 million for the second quarter of 2004. We reported a loss
from operations for the second quarter of 2005 of $(0.3) million, compared to
income from operations of $0.8 million for the second quarter of 2004. We
reported a net loss of $(0.7) million, or $(0.06) diluted loss per share, for
the quarter ended June 30, 2005, compared to net income of $0.4 million, or
$0.04 diluted income per share, for the quarter ended June 30, 2004. Total
weighted average diluted shares outstanding for the quarters ended June 30, 2005
and June 30, 2004 were 11,286,219 and 11,392,684, respectively.
Lower consolidated revenues in the second quarter of 2005 were driven primarily
by the decrease in revenues from our Business Services segment, which was the
result of the lengthy lead time necessary for our two new business development
professionals to replace the revenues lost from a prior client due to regulatory
changes. This was amplified slightly by a decrease in revenues in our
Pharmaceutical Services segment, due to the launch of a major DTC program for
one of our clients in 2004 with no similar launch in 2005. The loss from
operations was primarily attributed to the decrease in revenues in our Business
Services Segment.
For the Six Months Ended June 30, 2005
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Our revenues decreased $7.0 million, or 26.0%, to $19.9 million for the six
months ended June 30, 2005, compared to $26.9 million for the six months ended
June 30, 2004. Revenues for the Pharmaceutical Segment decreased $0.6 million,
or 4.4%, to $13.0 million for the six months ended June 30, 2005, compared to
$13.6 million for the six months ended June 30, 2004. Revenues for the Business
Segment decreased $6.4 million, or 48.1%, to $6.9 million for the six months
ended June 30, 2005, compared to $13.3 million for the six months ended June 30,
2004.
We reported net loss and diluted earnings per share of $(1.3) million and
$(0.11), respectively, for the six months ended June 30, 2005, compared to net
income and diluted earnings per share of $0.2 million and $0.01, respectively,
for the six months ended June 30, 2004. Total weighted average diluted shares
outstanding for the six months ended June 30, 2005 and June 30, 2004 were
11,064,969 and 11,264,974, respectively.
"We continue to remain focused on continuing momentum at our pharmaceutical
services division while investing in Business Development professionals to
improve our revenue performance at our other divisions," stated Richard Lyew,
the Company's Chief Financial Officer.
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 about 800 employees in offices throughout the United
States and Asia. More information is available at www.accessww.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 operate at capacity our new communication center in
Manila, Philippines; 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 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 the ability to recruit additional personnel; 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, 2004
filed with the Securities and Exchange Commission. The Company assumes no duty
to update any forward-looking statements.
- Tables Follow -
ACCESS WORLDWIDE COMMUNICATIONS, INC.
Condensed Consolidated Balance Sheets
JUNE 30, DECEMBER 31,
2005 2004
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(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 2,418,041 $ 2,570,546
Restricted cash 123,000 122,000
Accounts receivable, net 8,937,296 7,567,448
Unbilled receivables 1,569,353 398,547
Other assets, net 770,492 1,001,671
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Total current assets 13,818,182 11,660,212
Property and equipment, net 3,676,761 3,614,322
Restricted cash 466,000 589,000
Other assets, net 901,030 146,177
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Total assets $ 18,861,973 $ 16,009,711
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LIABILITIES, MANDATORILY REDEEMABLE PREFERRED
STOCK AND COMMON STOCKHOLDERS' DEFICIT
Current Liabilities
Current portion of indebtedness 6,101,863 2,955,450
Current portion of indebtedness - related parties 352,334 352,334
Accounts payable 1,518,635 739,438
Accrued expense 2,513,406 3,022,695
Grants payable 80,000 2,257,000
Accrued salaries, wages and related benefits 875,348 1,204,301
Deferred revenue 4,377,485 2,981,859
Accrued interest and other related party expenses 100,682 12,673
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Total current liabilities 15,919,753 13,525,750
Long-term portion of indebtedness 143,494 135,008
Other long-term liabilities 879,975 786,386
Convertible Notes, net 1,783,712 1,427,685
Mandatorily redeemable preferred stock, $0.01 par value:
2,000,000 shares authorized, 40,000 shares issued
and outstanding 4,000,000 4,000,000
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Total liabilities 22,726,934 19,874,829
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Commitments and contingencies
Common Stockholders' Deficit
Common stock, $0.01 par value: voting 20,000,000 shares authorized;
12,096,219 and 10,841,719 shares issued and outstanding,
respectively 120,962 108,417
Additional paid-in capital 67,472,916 66,228,271
Accumulated deficit (71,442,339) (70,182,006)
Deferred compensation (16,500) (19,800)
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Total common stockholders' deficit (3,864,961) (3,865,118)
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Total Liabilities, mandatorily redeemable preferred stock
And common stockholders' deficit $ 18,861,973 $ 16,009,711
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ACCESS WORLDWIDE COMMUNICATIONS, INC.
Condensed Consolidated Statements of Operations
For the Three Months Ending For the Six Months Ending
June 30 June 30
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2005 2004 2005 2004
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Unaudited Unaudited
Revenues $ 9,535,225 $ 13,960,350 $ 19,886,019 $ 26,941,212
Cost of revenues 5,593,618 7,645,882 11,103,091 15,669,831
------------ ------------ ------------ ------------
Gross Profit 3,941,607 6,314,468 8,782,928 11,271,381
Selling, general & administrative expenses 4,192,145 5,550,954 9,214,489 10,441,048
------------ ------------ ------------ ------------
(Loss) income from operations (250,538) 763,514 (431,561) 830,333
Interest expense, net (439,914) (334,257) (828,772) (676,283)
------------ ------------ ------------ ------------
Net (loss) income $ (690,452) $ 429,257 $ (1,260,333) $ 154,050
============ ============ ============ ============
Basic (loss) income per share:
- Net (loss) income $ (0.06) $ 0.04 $ (0.11) $ 0.02
Weighted average common shares outstanding 11,286,219 9,839,312 11,064,969 9,789,907
Diluted (loss) income per share:
- Net (loss) income $ (0.06) $ 0.04 $ (0.11) $ 0.01
Weighted average common shares outstanding 11,286,219 11,392,684 11,064,969 11,264,974