Exhibit 99.1
ACCESS WORLDWIDE REPORTS FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS
ARLINGTON, Va., April 17 /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 twelve months ended December 31, 2006.
For the Three Months Ended December 31, 2006
Our revenues increased by $3.8 million, or 81%, to $8.5 million for the
quarter ended December 31, 2006, compared to $4.7 million for the quarter ended
December 31, 2005. Revenues for our U.S. Segment increased $2.4 million, or
58.5% to $6.5 million for the quarter ended December 31, 2006, compared to $4.1
million for the quarter ended December 31, 2005. The increase was primarily
attributed to an increase in the number of programs and production hours
performed. Revenues for our International Segment increased $1.4 million, or
233.3% to $2.0 million for the quarter ended December 31, 2006, compared to $0.6
million for the quarter ended December 31, 2005. The increase was primarily
attributed to the full utilization of our communication center in the
Philippines in the fourth quarter of 2006 after commencing operations in
September 2005.
We reported a net loss from continuing operations of $0.3 million and basic
and diluted loss per share of common stock of $0.02 for the quarter ended
December 31, 2006, compared to a net loss from continuing operations of $1.2
million and basic and diluted loss per share of common stock of $0.07 for the
quarter ended December 31, 2005.
Total weighted average diluted shares outstanding for the quarters ended
December 31, 2006 and December 31, 2005 were 17,340,065 and 16,609,552,
respectively.
For the Twelve Months ended December 31, 2006
Our revenues increased $12.9 million, or 87.2%, to $27.7 million for the
year ended December 31, 2006, compared to $14.8 million for the year ended
December 31, 2005. Revenues for our U.S. Segment increased $8.3 million, or
58.5%, to $22.5 million for the year ended December 31, 2006, compared to $14.2
million for the year ended December 31, 2005. The increase is primarily
attributed to an increase in the number of programs and production hours
performed. Revenues for our International Segment increased $4.6 million, or
766.7%, to $5.2 million for the year ended December 31, 2006, compared to $0.6
million for the year ended December 31, 2005. The increase was primarily
attributed to the full utilization of our communication center in the
Philippines in the fourth quarter of 2006 after commencing operations in
September 2005.
We reported net loss from continuing operations of $4.3 million and diluted
loss per share of common stock of $0.25 for the year ended December 31, 2006,
compared to net loss from continuing operations of $5.5 million and diluted loss
per share of common stock of $0.42 for the year ended December 31, 2005.
Total weighted average common shares outstanding for year ended December 31,
2006 and December 31, 2005 were 17,340,065 and 13,084,761, respectively.
"We are very pleased with the improvement and performance of our domestic
operations and we expect this momentum to carry into 2007. In Manila, we are at
full capacity in our first facility, and our second facility started production
in February of 2007. The addition of our second facility will provide us with
approximately 700 production seats in the Philippines." commented Shawkat
Raslan, Chairman, President and Chief Executive Officer of Access Worldwide.
"Our business objectives in 2007 will be to optimize and maximize the
utilization of our US capacity and maximize the growth of our offshore
operations."
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, 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
December 31,
---------------------------
2006 2005
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 2,836,980 $ 1,755,926
Restricted cash 123,000 314,000
Accounts receivable, net of allowance
for doubtful accounts of $99,130
and $61,994, respectively 6,956,218 7,297,583
Unbilled receivables 7,750 228,083
Other current assets, net 831,958 785,257
Total current assets 10,755,906 10,380,849
Property and equipment, net 3,374,575 5,025,158
Restricted cash 343,000 466,000
Other assets, net 386,127 390,822
Total assets $ 14,859,608 $ 16,262,829
LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT
Current Liabilities:
Current portion of indebtedness $ 438,866 $ 4,876,381
Current portion of indebtedness
- related parties 1,750,000 352,334
Accounts payable 1,315,785 1,878,856
Accrued expense 654,140 2,204,267
Grants payable - 80,000
Accrued salaries, wages and related
benefits 586,107 736,797
Customer deposits 1,210,146 1,084,378
Convertible Notes, net - 1,768,584
Deferred revenue 669,290 1,435,619
Accrued interest and other
related party expenses - 59,512
Total current liabilities 6,624,334 14,476,728
Long-term portion of indebtedness 259,256 669,441
Other long-term liabilities 530,992 796,418
Convertible Notes, net 4,625,490 1,380,564
Mandatorily redeemable preferred
stock, $0.01 par value: -
1,000,000 shares auth., 40,000
shares issued and out. 4,000,000 4,000,000
Total liabilities 16,040,072 21,323,151
Commitments and contingencies
Common stockholders' deficit:
Common stock, $0.01 par value:
voting 40,000,000 shares auth.;
17,340,065 and 16,616,219 shares
issued and out., respectively 173,401 166,162
Additional paid-in capital 71,362,793 70,389,446
Accumulated deficit (72,716,658) (75,602,730)
Deferred compensation - (13,200)
Total common stockholders'
deficit (1,180,464) (5,060,322)
Total liabilities and common
stockholders' deficit $ 14,859,608 $ 16,262,829
Access Worldwide Communications, Inc.
Condensed Consolidated Statements of Operations
Unaudited
For the Three Months For the Twelve Months
Ending Ending
December 31, December 31,
--------------------------- ---------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenues $ 8,466,712 $ 4,688,907 $ 27,711,626 $ 14,809,486
Cost and expenses:
Cost of services 6,337,666 3,770,978 21,315,235 13,145,510
Selling, general and
administrative
expenses 1,937,436 1,356,957 6,557,701 4,497,969
Depreciation 248,055 290,526 1,037,856 893,516
Total costs and
expenses 8,523,157 5,418,461 28,910,792 18,536,995
Loss from operations (56,445) (729,554) (1,199,166) (3,727,509)
Interest expense, net (271,478) (437,907) (3,051,906) (1,726,488)
Loss from continuing
operations (327,923) (1,167,461) (4,251,072) (5,453,997)
Discontinued operations:
Income (loss) from
discontinued
operations 12,728 (236,262) (591,631) 773,273
Gain on disposal of
segment, net of
income tax expense
of $0 (470,787) - 7,728,775 -
(458,059) (236,262) 7,137,144 773,273
Net (loss) income before
deemed dividend (785,982) (1,403,723) 2,886,072 (4,680,724)
Deemed dividend -
warrants issued to
certain stockholders - - (740,000)
Net (loss) income
applicable to common
stockholders (785,982) (1,403,723) 2,886,072 (5,420,724)
Basic and diluted
(loss) income per share
of common stock:
Continuing
operations $ (0.02) $ (0.07) $ (0.25) $ (0.42)
Discontinued
operations $ (0.03) $ (0.01) $ 0.41 $ 0.06
Net (loss) income $ (0.05) $ (0.08) $ 0.17 $ (0.41)
Weighted average
common shares
outstanding 17,340,065 16,609,552 17,340,065 13,084,761
ACCESS WORLDWIDE COMMUNICATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years
Ended December 31,
---------------------------
2006 2005
------------ ------------
Cash flows from operating activities:
Net income (loss) $ 2,886,072 $ (4,680,724)
Adjustments to reconcile net
income (loss) to net cash
used in operating activities:
Depreciation and amortization 1,037,856 905,156
Allowance for doubtful accounts 98,821 (65,325)
Amortization of deferred
compensation 10,500 15,350
Amortization of deferred
financing costs 600,239 87,217
Accretion of discount on
Convertible Notes 691,727 721,463
Gain on sale of discontinued
operations (7,728,775) -
Share based compensation expense 227,119 -
Changes in assets and liabilities
from discontinued operations 734,419 (2,308,861)
Changes in operating assets and
liabilities:
Accounts receivable (4,253,286) 128,519
Other assets (449,720) (27,098)
Accounts payable, grants
payable, accrued expenses
and other liabilities 287,465 797,743
Accrued salaries, wages and
related benefits 301,441 (58,619)
Customer deposits (2) 19,315
Deferred revenue 325,603 (158,665)
Accrued interest and related
party expenses (778,167) 46,911
Net cash used in operating
activities (6,008,688) (4,577,618)
Cash flows from investing activities:
Additions to property and
equipment, net (564,988) (2,458,104)
Additions to property and
equipment from discontinued
operations, net (187,549) (387,682)
Net proceeds from sale of
discontinued operations 9,751,470 -
Decrease (increase) in restricted
cash 314,000 (69,000)
Net cash provided by (used in)
investing activities 9,312,933 (2,914,786)
Cash flows from financing activities:
Payments on capital leases (383,146) 761,373
Proceeds from issuance of common
stock 5,535 3,254,950
Proceeds from exercise of common
stock options and warrants - 7,470
Net borrowings under Credit
Facility and Debt Agreement (4,454,388) 1,623,855
Borrowings under not payable to
related party 2,000,000
Repayment of Convertible Notes (115,000)
Loan origination fees (140,000) (40,000)
Proceeds from issuance of
Convertible Notes 1,500,000 1,000,000
Payments under note payable to
related party (602,334)
Proceeds from insurance financing, net (17,122) 22,251
Payments on capital leases from
discontinued operations (16,736) 47,885
Net cash (used in) provided by
financing activities (2,223,191) 6,677,784
Net increase (decrease) in cash
and cash equivalents 1,081,054 (814,620)
Cash and cash equivalents, beginning
of year 1,755,926 2,570,546
Cash and cash equivalents, end of
year $ 2,836,980 $ 1,755,926
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest $ 1,896,767 $ 921,768
Note: $1,000,000 was paid in 2006
for early termination of credit
facility.
Income taxes - $ -
Non-Cash Investing and Financing
Activities:
Equipment acquisitions through
capital leases $ 24,290 $ 1,053,832
Issuance of common stock to pay
bonuses $ 49,147 $ 185,000
SOURCE Access Worldwide Communications, Inc.
-0- 04/17/2007
/CONTACT: Mark Wright, General Counsel, Secretary, of Access Worldwide
Communications, Inc., +1-703-292-5210, mwright@accessww.com /
/Web site: http://www.accessww.com /
(AWWC)