Exhibit 99.1
ACCESS WORLDWIDE REPORTS THIRD QUARTER FINANCIAL RESULTS
ARLINGTON, Va., Nov. 14 /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 the three and nine months ended September 30, 2006.
"I am very pleased to report that we are starting to realize the positive
results of our investment in our sales team and the launch of our operations in
the Philippines. Our revenues from continued operations more than doubled and
our operating loss has been reduced by $1.9 to $(0.2) for the three months ended
September 30, 2006," stated Shawkat Raslan Chairman and Chief Executive Officer.
"We will continue to expand our business development team and our offshore
operations during 2007."
On August 3, 2006, we sold a part of our Pharmaceutical Services through a
strategic sale of our TMS Professional Markets Group ("TMS") for $10.5 million,
less $0.4 million for the settlement of a subordinated note with a former
stockholder of TeleManagement Services, accrued interest and a $0.8 million
holdback for a working capital settlement. The transaction has transformed our
company into a BPO company, and as a result, we will no longer discuss or report
on our business based on the type of revenues we produced as in the past, but
based on geographical regions -- Domestic and International. "The transaction
has not only transformed Access Worldwide into a BPO focused company but has
also allowed us to repay all amounts owed under our Debt Agreement," stated
Richard Lyew, Chief Financial Officer.
For the Three Months Ended September 30, 2006
Revenues increased $4.3 million, or 110%, to $8.2 million for the three
months ended September 30, 2006, compared to $3.9 million for the three months
ended September 30, 2005. We reported a loss from operations of $0.2 million for
the three months ended September 30, 2006, compared to $2.1 million for the
three months ended September 30, 2005.
The overall increase in revenues was attributed to $2.7 million in revenues
from our Domestic Business segment and $1.5 million in revenues for our
International Business segment. The increase is attributed to the following: a)
production hours from a new client retained in 2006, b) increased production
hours performed for two of our existing clients, and c) three full months of
production hours from our International segment which opened for business during
the last week of September 2005.
We reported net income of $6.4 million or $0.37 earnings per share of common
stock for the three months ended September 30, 2006, compared to net loss of
$2.8 million or ($0.20) loss per share of common stock for the three months
ended September 30, 2005. Net income for the three months ended September 30,
2006 was related to the strategic sale of TMS which resulted in $8.3 million of
income from discontinued operations.
Total weighted average common shares outstanding for the three months
September 30, 2006 and September 30, 2005 were 17,340,065 and 13,599,552,
respectively.
For the Nine Months Ended September 30, 2006
Revenues increased $6.5 million, or 46%, to $20.5 million for the nine
months ended September 30, 2006, compared to $14.0 million for the nine months
ended September 30, 2005. We reported a loss from operations of $2.1 million for
the nine months ended September 30, 2006, compared to $5.0 million for the nine
months ended September 30, 2005.
The overall increase in revenues was attributed to $6.0 million in revenues
from our Domestic Business segment and $3.3 million in revenues for our
International Business segment. The increase was attributed to several
occurrences, the reopening of our Maryland communication center due to a new
client retained in 2006, increased production hours performed for two of our
existing clients, and a full nine months of production hours from our
International segment which opened for business during the last week of
September 2005. There was a reduction in revenues of $2.8 million in our medical
education revenues during the nine months ended September 30, 2006 as a result
of a continuing decrease in our client base.
We reported net income of $3.6 million or $0.21 earnings per share of common
stock for the nine months ended September 30, 2006, compared to net loss of $4.0
million or ($0.34) loss per share of common stock for the nine months ended
September 30, 2005. Net income for the nine months ended September 30, 2006 was
related to the strategic sale of TMS which resulted in $7.9 million of income
from discontinued operations.
Total weighted average common shares outstanding for the nine months ended
September 30, 2006 and September 30, 2005 were 17,193,204 and 11,909,830,
respectively.
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 http://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, 2005 filed with the Securities and Exchange
Commission. The Company assumes no duty to update any forward-looking
statements.
Access Worldwide Communications, Inc.
Condensed Consolidated Statements of Operations
Unaudited Unaudited
For the Three For the Nine
Months Ending Months Ending
September 30, September 30,
-------------------------------- --------------------------------
2006 2005 2006 2005
-------------- -------------- -------------- --------------
Revenues $ 8,156,021 $ 3,919,196 $ 20,468,535 $ 13,983,821
Cost of revenues 4,975,920 2,767,133 12,433,144 9,592,376
Gross profit 3,180,101 1,152,063 8,035,391 4,391,445
Selling, general & administrative
expenses 3,340,636 3,204,148 10,087,265 9,417,367
Loss from operations (160,535) (2,052,085) (2,051,874) (5,025,922)
Interest expense, net (1,807,116) (475,372) (2,783,244) (1,292,415)
Other Income 84,421 299,780 531,689 924,560
Loss From Continuing Operations (1,883,230) (2,227,677) (4,303,429) (5,393,777)
Discontinued Operations (Note 8)
Income (loss) from discontinued
operations 95,799 211,011 (328,262) 2,116,778
Gain on disposal of segment, net
of income tax expense 8,199,620 - 8,199,620 -
8,295,419 211,011 7,871,358 2,116,778
Net income (loss)before deemed
dividend $ 6,412,189 $ (2,016,666) $ 3,567,929 $ (3,276,999)
Deemed dividend - warrants issued
to certain stockholders - (740,000) - (740,000)
Net income (loss) 6,412,189 (2,756,666) 3,567,929 (4,016,999)
Basic and diluted income (loss) per
share:
Continuing operations $ (0.11) $ (0.16) $ (0.25) $ (0.45)
Discontinued operations $ 0.48 $ 0.02 $ 0.46 $ 0.18
Net income (loss) $ 0.37 $ (0.20) $ 0.21 $ (0.34)
Weighted average common
shares outstanding 17,340,065 13,599,552 17,193,204 11,909,830
Access Worldwide Communications, Inc.
Condensed Consolidated Balance Sheets
September December 31,
2006 2005
-------------- --------------
ASSETS (Unaudited)
Current Assets
Cash and cash equivalents $ 3,974,657 $ 1,755,926
Restricted cash 123,000 314,000
Accounts receivable, net 5,515,779 7,297,583
Unbilled receivables 650,259 228,083
Other assets, net 1,075,196 785,257
Total current assets 11,338,891 10,380,849
Property and equipment, net 3,237,356 5,025,158
Restricted cash 343,000 466,000
Other assets, net 286,122 390,822
Total assets $ 15,205,369 $ 16,262,829
LIABILITIES, MANDATORILY REDEEMABLE
PREFERRED STOCK AND COMMON
STOCKHOLDERS' DEFICIT
Current Liabilities
Current portion of indebtedness $ 467,255 $ 4,876,381
Current portion of indebtedness
- related parties 2,000,000 352,334
Accounts payable 697,286 1,878,856
Accrued expense 1,066,162 2,204,267
Grants payable - 80,000
Accrued salaries, wages and
related benefits 750,474 736,797
Customer deposits 988,979 1,084,378
Convertible notes, net 2,082,246 1,768,584
Deferred Revenues 300,567 1,435,619
Accrued interest and other
related party expenses - 59,512
Total current liabilities 8,352,969 14,476,728
Long-term portion of indebtedness 364,131 669,441
Long-term portion of indebtedness -
related parties - -
Other long-term liabilities 552,425 796,418
Convertible notes, net 3,132,438 1,380,564
Mandatorily redeemable preferred
stock, $0.01 par value:
1,000,000 shares authorized,
40,000 shares issued and outstanding 4,000,000 4,000,000
Total liabilities 16,401,963 21,323,151
Commitments and contingencies
Common stockholders' deficit
Common stock, $0.01 par value:
voting 40,000,000 shares
authorized; 17,340,065 and
16,616,219 shares issued and
outstanding, respectively 173,401 166,162
Additional paid-in capital 70,664,806 70,389,446
Accumulated deficit (72,034,801) (75,602,730)
Deferred compensation - (13,200)
Total common stockholders' deficit (1,196,594) (5,060,322)
Total liabilities, mandatorily
redeemable preferred stock
and common stockholders'
deficit $ 15,205,369 $ 16,262,829
SOURCE Access Worldwide Communications, Inc.
-0- 11/14/2006
/CONTACT: Mark Wright, Investor Relations of Access Worldwide
Communications, Inc., +1-703-292-5210, or mwright@accessww.com/
/First Call Analyst: /
/FCMN Contact: /
/Web site: http://www.accessww.com /
(AWWC)