West Corporation
Feb 1, 2017

West Corporation Reports Fourth Quarter and Full Year 2016 Results and Provides 2017 Guidance

Company Posts Record Cash Flows from Operations

OMAHA, Neb., Feb. 01, 2017 (GLOBE NEWSWIRE) -- West Corporation (Nasdaq:WSTC), a global provider of communication and network infrastructure services, today announced its fourth quarter and full year 2016 results.

Select Financial Information           
Unaudited, in millions except per share amounts Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016   2015  % Change  2016   2015  % Change
Revenue$  567.4  $  568.4  -0.2% $ 2,292.0  $ 2,280.3  0.5%
Operating Income   102.7     105.0  -2.2%    444.2     456.5  -2.7%
Income from Continuing Operations   68.3     42.3  61.4%    193.4     190.9  1.3%
Earnings per Share from Continuing Operations - Diluted   0.80     0.50  60.0%    2.29     2.24  2.2%
Cash Flows from Continuing Operating Activities   126.7     127.5  -0.7%    428.3     410.8  4.3%
Cash Flows used in Continuing Investing Activities   (41.2)    (118.7) -65.3%    (108.3)    (232.4) -53.4%
Cash Flows used in Continuing Financing Activities   (88.4)    (23.5) 276.8%    (311.9)    (388.2) -19.7%
            
Select Non-GAAP Financial Information1           
Unaudited, in millions except per share amounts Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016   2015  % Change  2016   2015  % Change
EBITDA from Continuing Operations$  151.8  $  158.0  -4.0% $  640.7  $  649.3  -1.3%
Adjusted EBITDA from Continuing Operations   164.9     165.1  -0.1%    664.1     676.1  -1.8%
Adjusted Operating Income   132.3     131.0  1.0%    534.2     551.8  -3.2%
Adjusted Income from Continuing Operations   64.5     63.7  1.4%    256.9     265.9  -3.4%
Adjusted Earnings per Share from Continuing Operations - Diluted   0.76     0.75  1.3%    3.04     3.11  -2.3%
Free Cash Flow from Continuing Operating Activities2   99.4     86.9  14.4%    301.7     274.0  10.1%

Dividend 
The Company today also announced a $0.225 per common share dividend. The dividend is payable on March 2, 2017 to shareholders of record as of the close of business on February 21, 2017.

Fourth Quarter Operating Results
For the fourth quarter of 2016, revenue was $567.4 million, a decrease of 0.2 percent. Adjusted organic revenue growth5 slowed in the fourth quarter to 0.7 percent, primarily due to a decline in conferencing revenue.

Fourth quarter operating income was $102.7 million, a decrease of 2.2 percent. EBITDA1 declined 4.0 percent to $151.8 million. Operating income and EBITDA were negatively impacted by an $8.4 million restructuring charge due to a workforce reduction plan implemented in the quarter as part of strategic and cost savings initiatives. Adjusted operating income1 increased 1.0 percent to $132.2 million and Adjusted EBITDA1 was nearly flat at $164.9 million.

Income from continuing operations increased 61.4 percent to $68.3 million, primarily due to a decrease in the fourth quarter effective tax rate to negative 1.8 percent. This change resulted from a fourth quarter restructuring of foreign legal entities that lowered income tax expense (primarily deferred) on unremitted foreign earnings. Adjusted income from continuing operations1 was $64.5 million, an increase of 1.4 percent.

"West Corporation finished the year with a fourth quarter that was stronger than we expected," said Tom Barker, chairman and chief executive officer. "Our consolidated revenue was down slightly primarily due to a decline in conferencing revenue. However, our four growth businesses (UCaaS, Safety Services, Interactive Services and Specialized Agent Services) grew 5.5 percent on an organic basis in the fourth quarter. Additionally, we had double-digit growth in free cash flow in the fourth quarter and full year. During the fourth quarter we also made changes to our cost structure that we expect to positively impact our results in 2017 and further strengthen West for the future."

Fourth quarter results by segment were as follows:

  • Unified Communications Services revenue decreased 5 percent; adjusted organic growth5 was negative 2.8 percent due to price compression and fewer minutes in conferencing, partially offset by low double-digit growth in the UCaaS business. Operating income decreased 20.7 percent due to the revenue decline and a restructuring charge incurred to better align expenses with expected revenue. Adjusted operating income1 decreased 14.5 percent.
     
  • Safety Services revenue increased 3.9 percent; excluding acquisitions, revenue increased 3.5 percent, primarily due to growth from clients adopting new technologies, partially offset by lower equipment sales in the quarter. Operating income increased $11.0 million to $16.7 million due to revenue growth and cost savings initiatives, partially offset by a restructuring charge incurred as part of a strategic realignment of resources around growth initiatives. Adjusted operating income1 increased $11.6 million to $23.7 million.
     
  • Interactive Services revenue increased 11.2 percent; excluding acquisitions, revenue increased 8.0 percent due to increased volumes from new and existing clients. Operating income increased 37.0 percent to $9.1 million and adjusted operating income1 increased 21.2 percent to $15.0 million primarily due to revenue growth.
     
  • Specialized Agent Services revenue increased 3.1 percent primarily due to growth in healthcare advocacy services partially offset by slower than historical recoveries in cost management services. Operating income declined $1.6 million to $4.6 million and adjusted operating income1 declined $2.1 million primarily due to revenue mix and higher labor costs.

Full Year Operating Result Highlights 
For the year ended December 31, 2016, revenue was $2,292.0 million, an increase of 0.5 percent. Adjusted organic revenue growth5 for 2016 was 2.3 percent.

Operating income in 2016 was $444.2 million, a decrease of 2.7 percent. EBITDA1 was $640.7 million, a decrease of 1.3 percent. Adjusted operating income1 was $534.2 million, a decrease of 3.2 percent.

Full year 2016 revenue results by segment were as follows:

  • Unified Communications Services revenue decreased 2.9 percent; adjusted organic growth5 was 1.0 percent.
     
  • Safety Services revenue increased 5.3 percent; excluding acquisitions, revenue increase 5.2 percent.
     
  • Interactive Services revenue increased 13.2 percent; excluding acquisitions, revenue increased 6.9 percent.
     
  • Specialized Agent Services revenue increased 1.6 percent.

Balance Sheet, Cash Flow and Liquidity — 2016 Highlights

  • Cash flow from operations were $428.3 million, an increase of 4.3 percent, primarily due to lower cash tax payments.
     
  • Free cash flow1,2 increased 10.1 percent to $301.7 million due to the increase in cash flows from operations and lower capital expenditures. The Company invested $126.6 million, or 5.5 percent of revenue, in capital expenditures.
     
  • 4.45x net leverage (net debt to pro forma adjusted EBITDA ratio, as calculated pursuant to the Company's senior secured term debt facilities4) down from 4.68x at December 31, 2015.
     
  • Repaid $191.1 million in debt; cash balance of $183.1 million at December 31, 2016.

"In 2016, West generated record operating cash flow. We deployed this cash toward repaying $191 million of our long-term debt, making two acquisitions for approximately $20 million and returning nearly $100 million to our shareholders in the form of dividends and stock repurchases," said Jan Madsen, chief financial officer. "We also took steps to refinance our debt, ending the year with a more attractive maturity profile and decreased leverage ratio. We believe each of these steps is consistent with our focus on driving shareholder value and enhancing West's financial flexibility."

2017 Guidance
For 2017, the Company expects the results presented in the table below. This guidance assumes no acquisitions or changes in the current operating environment, capital structure or exchange rates. The two most significant exchange rates used for 2017 guidance are the British Pound Sterling at 1.25 and the Euro at 1.06. These foreign currency exchange rates, reflected in the guidance below, would negatively impact 2017 revenue by approximately $14 million and 2017 adjusted diluted earnings per share by $0.02 compared to 2016 rates.

In millions except per share amounts and leverage ratio  
 2016 Actual 2017 Guidance
Revenue$  2,292.0  $2,286 - $2,362 
Operating Income   444.2  $413 - $446 
Net Income   193.4  $175 - $196 
Earnings per Share - Diluted   2.29  $2.07 - $2.31 
Cash Flows from Operating Activities   428.3  $380 - $420 
Capital Expenditures   126.6  $100 - $130 
    
Non-GAAP Metrics1   
In millions except per share amounts   
 2016 Actual 2017 Guidance
Adjusted EBITDA$  664.1 $639 - $672
Adjusted Operating Income   534.2 $500 - $532
Adjusted Net Income   256.9 $234 - $255
Adjusted Earnings per Share - Diluted   3.04 $2.76 - $3.00

"For 2017, including the negative impact of foreign currency exchange rates, we expect revenue in our conferencing and collaboration business to decrease 3-5 percent and revenue in our non-conferencing businesses to have mid- to high—single-digit growth. We expect double-digit growth in our UCaaS business; high-single-digit growth in Safety Services and Telecom Services; and mid- to high-single-digit growth in Interactive Services and Specialized Agent Services. Included across segments, we expect our healthcare practice to have high-single-digit growth," said Tom Barker.

Conference Call
The Company will hold a conference call to discuss these topics on February 2, 2017 at 11:00 AM Eastern Time (10:00 AM Central Time). Investors may access the call by visiting the Financials section of the West Corporation website at www.west.com and clicking on the Webcast link. A replay of the call will be available on the Company's website at www.west.com.

About West Corporation
West Corporation (Nasdaq:WSTC) is a global provider of communication and network infrastructure services. West helps its clients more effectively communicate, collaborate and connect with their audiences through a diverse portfolio of solutions that include unified communications services, safety services, interactive services such as automated notifications, telecom services and specialized agent services.

For 30 years, West has provided reliable, high-quality voice and data services. West has sales and operations in the United States, Canada, Europe, the Middle East, Asia Pacific and Latin America. For more information, please call 1-800-841-9000 or visit www.west.com.

Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue" or similar terminology. These statements reflect only West's current expectations and are not guarantees of future performance or results. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. These risks and uncertainties include, but are not limited to, the strategic alternatives available to the Company and the ability to execute on strategic alternatives; competition in West's highly competitive markets; increases in the cost of voice and data services or significant interruptions in these services; West's ability to keep pace with its clients' needs for rapid technological change and systems availability; the continued deployment and adoption of emerging technologies; the loss, financial difficulties or bankruptcy of any key clients; security and privacy breaches of the systems West uses to protect personal data; the effects of global economic trends on the businesses of West's clients; the non-exclusive nature of West's client contracts and the absence of revenue commitments; the cost of pending and future litigation; the cost of defending against intellectual property infringement claims; the effects of extensive regulation affecting many of West's businesses; West's ability to protect its proprietary information or technology; service interruptions to West's data and operation centers; West's ability to retain key personnel and attract a sufficient number of qualified employees; increases in labor costs and turnover rates; the political, economic and other conditions in the countries where West operates; changes in foreign exchange rates; West's ability to complete future acquisitions, integrate or achieve the objectives of its recent and future acquisitions; and future impairments of our substantial goodwill, intangible assets, or other long-lived assets. In addition, West is subject to risks related to its level of indebtedness. Such risks include West's ability to generate sufficient cash to service its indebtedness and fund its other liquidity needs; West's ability to comply with covenants contained in its debt instruments; West's ability to obtain additional financing; the incurrence of significant additional indebtedness by West and its subsidiaries; and the ability of West's lenders to fulfill their lending commitments. West is also subject to other risk factors described in documents filed by the Company with the United States Securities and Exchange Commission. 

These forward-looking statements speak only as of the date on which the statements were made. West undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

 WEST CORPORATION  
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME  
 (Unaudited, in thousands except per share data)  
       
  Three Months Ended Dec. 31,  
   2016     2015   % Change 
Revenue$  567,380  $  568,430  -0.2% 
Cost of services   243,533     239,389  1.7% 
Selling, general and administrative expenses   221,157     224,071  -1.3% 
Operating income   102,690     104,970  -2.2% 
Interest expense, net   35,290     38,411  -8.1% 
Accelerated amortization of deferred financing costs   63     2,304  NM     
Other expense (income), net   210     (1,178) NM     
Income from continuing operations before tax   67,127     65,433  2.6% 
Income tax (benefit) expense attributed to continuing operations   (1,193)    23,093  NM     
Income from continuing operations   68,320     42,340  61.4% 
Income from discontinued operations, net of income taxes   -      19,935  NM     
Net income$  68,320  $  62,275  9.7% 
       
Weighted average shares outstanding:      
  Basic   83,254     83,243    
  Diluted   84,967     84,809    
       
Earnings per share - Basic:      
  Continuing operations$  0.82  $  0.51  60.8% 
  Discontinued operations   -      0.24  NM     
    Total Earnings Per Share - Basic$  0.82  $  0.75  9.3% 
       
Earnings per share - Diluted:      
  Continuing operations$  0.80  $  0.50  60.0% 
  Discontinued operations   -      0.24  NM     
    Total Earnings Per Share - Diluted$  0.80  $  0.74  8.1% 



SELECTED SEGMENT FINANCIAL DATA:      
  Three Months Ended Dec. 31,  
   2016     2015   % Change 
Revenue:      
  Unified Communications Services$  340,033  $  357,780  -5.0% 
  Safety Services   75,672     72,863  3.9% 
  Interactive Services   79,339     71,332  11.2% 
  Specialized Agent Services   75,414     73,143  3.1% 
  Intersegment eliminations   (3,078)    (6,688) NM   
    Total$  567,380  $  568,430  -0.2% 
       
Depreciation:      
  Unified Communications Services$  17,128  $  17,713  -3.3% 
  Safety Services   4,424     5,027  -12.0% 
  Interactive Services   4,360     3,978  9.6% 
  Specialized Agent Services   3,222     2,566  25.6% 
    Total$  29,134  $  29,284  -0.5% 
       
Amortization:      
  Unified Communications Services - SG&A$  2,910  $  3,618  -19.6% 
  Safety Services - SG&A   3,625     5,436  -33.3% 
  Safety Services - COS   3,365     3,088  9.0% 
  Interactive Services - SG&A   5,306     4,512  17.6% 
  Specialized Agent Services - SG&A   4,605     5,411  -14.9% 
  Deferred financing costs   1,834     6,928  -73.5% 
    Total$  21,645  $  28,993  -25.3% 
       
Share-based compensation:      
  Unified Communications Services$  3,074  $  3,399  -9.6% 
  Safety Services   865     973  -11.1% 
  Interactive Services   538     611  -11.9% 
  Specialized Agent Services   982     1,157  -15.1% 
    Total$  5,459  $  6,140  -11.1% 
       
Cost of services:      
  Unified Communications Services$  162,720  $  163,296  -0.4% 
  Safety Services   24,379     27,441  -11.2% 
  Interactive Services   18,440     15,926  15.8% 
  Specialized Agent Services   39,603     37,400  5.9% 
  Intersegment eliminations   (1,609)    (4,674) NM   
    Total$  243,533  $  239,389  1.7% 
       
Selling, general and administrative expenses:      
  Unified Communications Services$  107,354  $  106,302  1.0% 
  Safety Services   34,582     39,718  -12.9% 
  Interactive Services   51,831     48,786  6.2% 
  Specialized Agent Services   31,169     29,544  5.5% 
  Corporate Other   (2,310)    1,735  NM   
  Intersegment eliminations   (1,469)    (2,014) NM   
    Total$  221,157  $  224,071  -1.3% 
       
Operating income:      
  Unified Communications Services$  69,959  $  88,182  -20.7% 
  Safety Services   16,711     5,704  193.0% 
  Interactive Services   9,068     6,620  37.0% 
  Specialized Agent Services   4,642     6,199  -25.1% 
  Corporate Other   2,310     (1,735) NM   
    Total$  102,690  $  104,970  -2.2% 
       
Operating margin:      
  Unified Communications Services 20.6%  24.6%   
  Safety Services 22.1%  7.8%   
  Interactive Services 11.4%  9.3%   
  Specialized Agent Services 6.2%  8.5%   
    Total 18.1%  18.5%   
       
       
SELECTED FINANCIAL DATA:      
       
    Contribution    
Changes in Revenue - 4Q16 compared to 4Q15:   to Rev. Growth    
Revenue for the three months ended Dec. 31, 2015$  568,430      
  Revenue from acquired entities3   3,244   0.6%   
  Revenue from previously disclosed lost client   (1,200)  -0.2%   
  Estimated impact of foreign currency exchange rates   (7,122)  -1.3%   
  Adjusted organic growth, net5   4,028   0.7%   
Revenue for the three months ended Dec. 31, 2016$  567,380   -0.2%   
       


 WEST CORPORATION  
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME  
 (Unaudited, in thousands except per share data)  
       
  Year Ended Dec. 31,  
   2016     2015   % Change 
Revenue$  2,291,963  $  2,280,259  0.5% 
Cost of services   981,788     970,693  1.1% 
Selling, general and administrative expenses   865,961     853,116  1.5% 
Operating income   444,214     456,450  -2.7% 
Interest expense, net   148,279     154,068  -3.8% 
Accelerated amortization of deferred financing costs   36,532     2,304  NM   
Other expense (income), net   (409)    1,405  NM   
Income from continuing operations before tax   259,812     298,673  -13.0% 
Income tax expense attributed to continuing operations   66,423     107,757  -38.4% 
Income from continuing operations   193,389     190,916  1.3% 
Income from discontinued operations, net of income taxes   -      50,924  NM   
Net income$  193,389  $  241,840  -20.0% 
       
Weighted average shares outstanding:      
  Basic   82,969     83,420    
  Diluted   84,599     85,394    
       
Earnings per share - Basic:      
  Continuing operations$  2.33  $  2.29  1.7% 
  Discontinued operations   -      0.61  NM   
    Total Earnings Per Share - Basic$  2.33  $  2.90  -19.7% 
       
Earnings per share - Diluted:      
  Continuing operations$  2.29  $  2.24  2.2% 
  Discontinued operations   -      0.59  NM   
    Total Earnings Per Share - Diluted$  2.29  $  2.83  -19.1% 
       
       
SELECTED SEGMENT FINANCIAL DATA:      
  Year Ended Dec. 31,  
   2016     2015   % Change 
Revenue:      
  Unified Communications Services$  1,425,281  $  1,467,711  -2.9% 
  Safety Services   296,320     281,391  5.3% 
  Interactive Services   300,739     265,664  13.2% 
  Specialized Agent Services   281,542     276,983  1.6% 
  Intersegment eliminations   (11,919)    (11,490) NM   
    Total$  2,291,963  $  2,280,259  0.5% 
       
Depreciation:      
  Unified Communications Services$  69,371  $  69,769  -0.6% 
  Safety Services   17,481     18,847  -7.2% 
  Interactive Services   16,390     14,385  13.9% 
  Specialized Agent Services   11,861     8,213  44.4% 
    Total$  115,103  $  111,214  3.5% 
       
Amortization:      
  Unified Communications Services - SG&A$  13,000  $  13,414  -3.1% 
  Safety Services - SG&A   14,139     19,055  -25.8% 
  Safety Services - COS   13,048     12,592  3.6% 
  Interactive Services - SG&A   21,005     16,210  29.6% 
  Specialized Agent Services - SG&A   18,387     19,779  -7.0% 
  Deferred financing costs   48,342     21,945  120.3% 
    Total$  127,921  $  102,995  24.2% 
       
Share-based compensation:      
  Unified Communications Services$  14,330  $  13,119  9.2% 
  Safety Services   4,061     3,697  9.8% 
  Interactive Services   2,533     2,328  8.8% 
  Specialized Agent Services   4,464     3,781  18.1% 
    Total$  25,388  $  22,925  10.7% 
       
Cost of services:      
  Unified Communications Services$  673,735  $  673,475  0.0% 
  Safety Services   103,304     108,742  -5.0% 
  Interactive Services   68,348     59,125  15.6% 
  Specialized Agent Services   142,880     135,672  5.3% 
  Intersegment eliminations   (6,479)    (6,321) NM   
    Total$  981,788  $  970,693  1.1% 
       
Selling, general and administrative expenses:      
  Unified Communications Services$  424,351  $  416,386  1.9% 
  Safety Services   138,313     150,241  -7.9% 
  Interactive Services   201,760     181,495  11.2% 
  Specialized Agent Services   122,224     110,843  10.3% 
  Corporate Other   (15,247)    (680) NM   
  Intersegment eliminations   (5,440)    (5,169) NM   
    Total$  865,961  $  853,116  1.5% 
       
Operating income:      
  Unified Communications Services$  327,195  $  377,850  -13.4% 
  Safety Services   54,703     22,408  144.1% 
  Interactive Services   30,631     25,044  22.3% 
  Specialized Agent Services   16,438     30,468  -46.0% 
  Corporate Other   15,247     680  NM   
    Total$  444,214  $  456,450  -2.7% 
       
Operating margin:      
  Unified Communications Services 23.0%  25.7%   
  Safety Services 18.5%  8.0%   
  Interactive Services 10.2%  9.4%   
  Specialized Agent Services 5.8%  11.0%   
    Total 19.4%  20.0%   
       
       
SELECTED FINANCIAL DATA:      
       
    Contribution    
Changes in Revenue - 2016 compared to 2015:   to Rev. Growth    
Revenue for the year 2015$  2,280,259      
  Revenue from acquired entities3   24,194   1.1%   
  Revenue from two previously disclosed lost clients   (45,700)  -2.0%   
  Estimated impact of foreign currency exchange rates   (18,546)  -0.8%   
  Adjusted organic growth, net5   51,756   2.3%   
Revenue for the year 2016$  2,291,963   0.5%   
       


WEST CORPORATION
 CONDENSED CONSOLIDATED BALANCE SHEETS 
 (Unaudited, in thousands) 
      
  December 31,   December 31,  %
   2016     2015   Change
Assets:     
Current assets:     
  Cash and cash equivalents$  183,059  $  182,338  0.4%
  Trust and restricted cash   20,141     19,829  1.6%
  Accounts receivable, net   369,068     373,087  -1.1%
  Income taxes receivable   4,366     19,332  -77.4%
  Prepaid assets   40,886     43,093  -5.1%
  Deferred expenses   44,886     65,781  -31.8%
  Other current assets   31,889     22,040  44.7%
  Assets held for sale   -      17,672  NM  
    Total current assets   694,295     743,172  -6.6%
Property and Equipment:     
  Property and equipment   1,088,205     1,053,678  3.3%
  Accumulated depreciation and amortization   (755,754)    (718,834) 5.1%
    Net property and equipment   332,451     334,844  -0.7%
Goodwill   1,916,192     1,915,690  0.0%
Intangible assets, net   315,474     370,021  -14.7%
Other assets   182,426     191,490  -4.7%
    Total assets$  3,440,838  $  3,555,217  -3.2%
Liabilities and Stockholders' Deficit:     
Current Liabilities:     
  Accounts payable$  78,881  $  92,935  -15.1%
  Deferred revenue   151,148     161,828  -6.6%
  Accrued expenses   224,871     219,234  2.6%
  Current maturities of long-term debt   39,709     24,375  62.9%
    Total current liabilities   494,609     498,372  -0.8%
Long-term obligations   3,129,963     3,318,688  -5.7%
Deferred income taxes   88,864     104,222  -14.7%
Other long-term liabilities   169,251     186,073  -9.0%
    Total liabilities   3,882,687     4,107,355  -5.5%
      
Stockholders' Deficit:     
  Common stock   86     85  1.2%
  Additional paid-in capital   2,223,379     2,193,193  1.4%
  Retained deficit   (2,490,455)    (2,607,415) -4.5%
  Accumulated other comprehensive loss   (87,633)    (72,736) 20.5%
  Treasury stock at cost   (87,226)    (65,265) 33.6%
    Total stockholders' deficit   (441,849)    (552,138) -20.0%
      
  Total liabilities and stockholders' deficit$  3,440,838  $  3,555,217  -3.2%
      

Reconciliation of Non-GAAP Financial Measures

Adjusted Operating Income Reconciliation
Adjusted operating income is not a measure of financial performance under generally accepted accounting principles ("GAAP"). The Company believes adjusted operating income provides a relevant measure of operating profitability and a useful basis for evaluating the ongoing operations of the Company. Adjusted operating income is used by the Company to assess operating income before the impact of acquisitions and acquisition-related costs and certain non-cash items. Adjusted operating income is used by the Company as a benchmark for performance and compensation by certain executives. Adjusted operating income should not be considered in isolation or as a substitute for operating income or other profitability data prepared in accordance with GAAP. Adjusted operating income, as presented, may not be comparable to similarly titled measures of other companies. Set forth below is a reconciliation of adjusted operating income from operating income. 

Please note: Adjustments were made to third quarter 2016 M&A and acquisition-related costs for the Safety Services and Specialized Agent Services segments. On a consolidated basis, these adjustments totaled $0.1 million. Full year results shown in the tables below reflect these adjustments.

      
 Reconciliation of Adjusted Operating Income from Operating Income 
Unaudited, in thousands      
  Three Months Ended Dec. 31, 
Consolidated: 2016   2015  % Change
Operating income$  102,690  $  104,970  -2.2%
Amortization of acquired intangible assets   16,446     18,977  -13.3%
Share-based compensation   5,459     6,140  -11.1%
Secondary equity offering expense   -      (186)  NM  
Significant restructuring   8,423     -    NM  
Gain on sale of real estate   (1,101)    -    NM  
M&A and acquisition-related costs   375     1,097  -65.8%
Adjusted operating income$  132,292  $  130,998  1.0%
Adjusted operating income margin 23.3%  23.0%  
      
Unified Communications Services:     
Operating income$  69,959  $  88,182  -20.7%
Amortization of acquired intangible assets   2,910     3,618  -19.6%
Share-based compensation   3,074     3,399  -9.6%
Secondary equity offering expense   -      (94)  NM  
Significant restructuring   5,482     -    NM  
M&A and acquisition-related costs   347     483  -28.2%
Adjusted operating income$  81,772  $  95,588  -14.5%
Adjusted operating income margin 24.0%  26.7%  
      
Safety Services:     
Operating income$  16,711  $  5,704  193.0%
Amortization of acquired intangible assets   3,625     5,436  -33.3%
Share-based compensation   865     973  -11.1%
Secondary equity offering expense   -      (59)  NM  
Significant restructuring   2,373     -    NM  
M&A and acquisition-related costs   80     -    NM  
Adjusted operating income$  23,654  $  12,054  96.2%
Adjusted operating income margin 31.3%  16.5%  
      
Interactive Services:     
Operating income$  9,068  $  6,620  37.0%
Amortization of acquired intangible assets   5,306     4,512  17.6%
Share-based compensation   538     611  -11.9%
Secondary equity offering expense   -      (13)  NM  
Significant restructuring   97     -    NM  
M&A and acquisition-related costs   (52)    612   NM  
Adjusted operating income$  14,957  $  12,342  21.2%
Adjusted operating income margin 18.9%  17.3%  
      
Specialized Agent Services:     
Operating income$  4,642  $  6,199  -25.1%
Amortization of acquired intangible assets   4,605     5,411  -14.9%
Share-based compensation   982     1,157  -15.1%
Secondary equity offering expense   -      (19)  NM  
Significant restructuring   433     -    NM  
Adjusted operating income$  10,662  $  12,748  -16.4%
Adjusted operating income margin 14.1%  17.4%  
      
Corporate Other:     
Operating income (loss)$  2,310  $  (1,735)  
Secondary equity offering expense   -      (1)  
Gain on sale of real estate   (1,101)    -    
Significant restructuring   38     -    
M&A and acquisition-related costs   -      2   
Adjusted operating income (loss)$  1,247  $  (1,734)  
      


      
 Reconciliation of Adjusted Operating Income from Operating Income 
Unaudited, in thousands      
  Year Ended Dec. 31, 
Consolidated: 2016   2015  % Change
Operating income$  444,214  $  456,450  -2.7%
Amortization of acquired intangible assets   66,531     68,458  -2.8%
Share-based compensation   25,388     22,925  10.7%
Secondary equity offering expense   -      855   NM  
Significant restructuring   8,423     -    NM  
Gain on sale of real estate   (14,064)    -    NM  
M&A and acquisition-related costs   3,745     3,074  21.8%
Adjusted operating income$  534,237  $  551,762  -3.2%
Adjusted operating income margin 23.3%  24.2%  
      
Unified Communications Services:     
Operating income$  327,195  $  377,850  -13.4%
Amortization of acquired intangible assets   13,000     13,414  -3.1%
Share-based compensation   14,330     13,119  9.2%
Secondary equity offering expense   -      153   NM  
Significant restructuring   5,482     -    NM  
M&A and acquisition-related costs   1,659     485   NM  
Adjusted operating income$  361,666  $  405,021  -10.7%
Adjusted operating income margin 25.4%  27.6%  
      
Safety Services:     
Operating income$  54,703  $  22,408  144.1%
Amortization of acquired intangible assets   14,139     19,055  -25.8%
Share-based compensation   4,061     3,697  9.8%
Secondary equity offering expense   -      19   NM  
Significant restructuring   2,373     -    NM  
M&A and acquisition-related costs   3,653     -    NM  
Adjusted operating income$  78,929  $  45,179  74.7%
Adjusted operating income margin 26.6%  16.1%  
      
Interactive Services:     
Operating income$  30,631  $  25,044  22.3%
Amortization of acquired intangible assets   21,005     16,210  29.6%
Share-based compensation   2,533     2,328  8.8%
Secondary equity offering expense   -      22   NM  
Significant restructuring   97     -    NM  
M&A and acquisition-related costs   2,122     2,353  -9.8%
Adjusted operating income$  56,388  $  45,957  22.7%
Adjusted operating income margin 18.7%  17.3%  
      
Specialized Agent Services:     
Operating income$  16,438  $  30,468  -46.0%
Amortization of acquired intangible assets   18,387     19,779  -7.0%
Share-based compensation   4,464     3,781  18.1%
Secondary equity offering expense   -      31   NM  
Significant restructuring   433     -    NM  
M&A and acquisition-related costs   (3,689)    150   NM  
Adjusted operating income$  36,033  $  54,209  -33.5%
Adjusted operating income margin 12.8%  19.6%  
      
Corporate Other:     
Operating income$  15,247  $  680   
Secondary equity offering expense   -      630   
Gain on sale of real estate   (14,064)    -    
Significant restructuring   38     -    
M&A and acquisition-related costs   -      86   
Adjusted operating income$  1,221  $  1,396   
      

Adjusted Net Income, Adjusted Income from Continuing Operations and Adjusted Earnings per Share Reconciliation
Adjusted net income, adjusted income from continuing operations and adjusted earnings per share (EPS) are non-GAAP measures. The Company believes these measures provide a useful indication of profitability and basis for assessing the operations of the Company without the impact of bond redemption premiums, acquisitions and acquisition-related costs, significant restructuring costs and certain non-cash items. Adjusted net income and adjusted income from continuing operations should not be considered in isolation or as a substitute for net income or other profitability metrics prepared in accordance with GAAP. Adjusted net income and adjusted income from continuing operations, as presented, may not be comparable to similarly titled measures of other companies. The Company utilizes these non-GAAP measures to make decisions about the use of resources, analyze performance, measure management's performance with stated objectives and compensate management relative to the achievement of such objectives. Set forth below is a reconciliation of adjusted income from continuing operations from income from continuing operations and adjusted net income from net income. 

Please note: Adjustments were made to third quarter 2016 M&A and acquisition-related costs for the Safety Services and Specialized Agent Services segments. On a consolidated basis, these adjustments totaled $0.1 million. Full year results shown in the tables below reflect these adjustments.

      
 Reconciliation of Adj. Income from Continuing Ops from Income from Continuing Ops 
 and Adjusted Net Income from Net Income 
Unaudited, in thousands except per share data     
CONTINUING OPERATIONS Three Months Ended Dec. 31, 
  2016   2015  % Change
Income from continuing operations$  68,320  $  42,340  61.4%
      
Amortization of acquired intangible assets   16,446     18,977   
Amortization of deferred financing costs   1,834     6,928   
Interest rate swap ineffectiveness   (1,130)    -    
Share-based compensation   5,459     6,140   
Secondary equity offering expense   -      (186)  
Gain on sale of real estate   (1,101)    -    
Significant restructuring   8,423     -    
M&A and acquisition-related costs   375     1,097   
Pre-tax total    30,306     32,956   
Income tax expense on adjustments   11,049     11,630   
Foreign entity restructuring tax benefit   (23,046)    -    
Adjusted income from continuing operations$  64,531  $  63,666  1.4%
      
Diluted shares outstanding   84,967     84,809   
Adjusted EPS from continuing operations - diluted$  0.76  $  0.75  1.3%
      
      
DISCONTINUED OPERATIONS Three Months Ended Dec. 31,  
  2016   2015   
Income from discontinued operations$  -   $  19,935   
      
Adjusted income from discontinued operations$  -   $  19,935   
      
Diluted shares outstanding   84,967     84,809   
Adjusted EPS from discontinued operations - diluted$  -   $  0.24   
      
      
CONSOLIDATED Three Months Ended Dec. 31, 
  2016   2015  % Change
Net income$  68,320  $  62,275  9.7%
      
Amortization of acquired intangible assets   16,446     18,977   
Amortization of deferred financing costs   1,834     6,928   
Interest rate swap ineffectiveness   (1,130)    -    
Share-based compensation   5,459     6,140   
Secondary equity offering expense   -      (186)  
Gain on sale of real estate   (1,101)    -    
Significant restructuring   8,423     -    
M&A and acquisition-related costs   375     1,097   
Pre-tax total    30,306     32,956   
Income tax expense on adjustments   11,049     11,630   
Foreign entity restructuring tax benefit   (23,046)    -    
Adjusted net income $  64,531  $  83,601  -22.8%
      
Diluted shares outstanding   84,967     84,809   
Adjusted EPS - diluted$  0.76  $  0.99  -23.2%
      


      
 Reconciliation of Adj. Income from Continuing Ops from Income from Continuing Ops 
 and Adjusted Net Income from Net Income 
Unaudited, in thousands except per share data     
CONTINUING OPERATIONS Year Ended Dec. 31, 
  2016   2015  % Change
Income from continuing operations$  193,389  $  190,916  1.3%
      
Amortization of acquired intangible assets   66,531     68,458   
Amortization of deferred financing costs   48,342     21,945   
Interest rate swap ineffectiveness   (1,130)    -    
Share-based compensation   25,388     22,925   
Secondary equity offering expense   -      855   
Gain on sale of real estate   (14,064)    -    
Significant restructuring   8,423     -    
M&A and acquisition-related costs   3,745     3,074   
Pre-tax total    137,235     117,257   
Income tax expense on adjustments   50,634     42,306   
Foreign entity restructuring tax benefit   (23,046)    -    
Adjusted income from continuing operations$  256,944  $  265,867  -3.4%
      
Diluted shares outstanding   84,599     85,394   
Adjusted EPS from continuing operations - diluted$  3.04  $  3.11  -2.3%
      
      
DISCONTINUED OPERATIONS Year Ended Dec. 31,   
  2016   2015   
Income from discontinued operations$  -   $  50,924   
      
Amortization of acquired intangible assets   -      41   
Share-based compensation   -      1,576   
M&A and acquisition-related costs   -      386   
Pre-tax total    -      2,003   
Income tax benefit on adjustments   -      (15)  
Adjusted income from discontinued operations$  -   $  52,942   
      
Diluted shares outstanding   84,599     85,394   
Adjusted EPS from discontinued operations - diluted$  -   $  0.62   
      
      
CONSOLIDATED Year Ended Dec. 31, 
  2016   2015  % Change
Net income$  193,389  $  241,840  -20.0%
      
Amortization of acquired intangible assets   66,531     68,499   
Amortization of deferred financing costs   48,342     21,945   
Interest rate swap ineffectiveness   (1,130)    -    
Share-based compensation   25,388     24,501   
Secondary equity offering expense   -      855   
Gain on sale of real estate   (14,064)    -    
Significant restructuring   8,423     -    
M&A and acquisition-related costs   3,745     3,460   
Pre-tax total    137,235     119,260   
Income tax expense on adjustments   50,634     42,291   
Foreign entity restructuring tax benefit   (23,046)    -    
Adjusted net income $  256,944  $  318,809  -19.4%
      
Diluted shares outstanding   84,599     85,394   
Adjusted EPS - diluted$  3.04  $  3.73  -18.5%

Free Cash Flow Reconciliation
The Company believes free cash flow provides a relevant measure of liquidity and a useful basis for assessing the Company's ability to fund its activities, including the financing of acquisitions, debt service, stock repurchases and distribution of earnings to shareholders. Free cash flow is calculated as cash flows from operating activities less cash capital expenditures. Free cash flow is not a measure of financial performance under GAAP. Free cash flow should not be considered in isolation or as a substitute for cash flows from operating activities or other liquidity measures prepared in accordance with GAAP. Free cash flow, as presented, may not be comparable to similarly titled measures of other companies. Set forth below is a reconciliation of free cash flow from cash flows from operating activities.

            
 Reconciliation of Free Cash Flow from Operating Cash Flow 
Unaudited, in thousands           
CONTINUING OPERATIONS Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016  2015 % Change  2016  2015 % Change
Cash flows from operating activities$  126,673 $  127,547 -0.7% $  428,275 $  410,768 4.3%
Cash capital expenditures   27,278    40,628 -32.9%    126,581    136,810 -7.5%
Free cash flow$  99,395 $  86,919 14.4% $  301,694 $  273,958 10.1%
            
            
DISCONTINUED OPERATIONS Three Months Ended Dec. 31,    Year Ended Dec. 31,   
  2016  2015    2016  2015  
Cash flows from (used in) operating activities  $  -  $  15,419   $  -  $  7,222  
Cash capital expenditures   -     -       -     1,930  
Free cash flow$  -  $  15,419   $  -  $  5,292  
            
            
CONSOLIDATED Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016  2015 % Change  2016  2015 % Change
Cash flows from operating activities$  126,673 $  142,966 -11.4% $  428,275 $  417,990 2.5%
Cash capital expenditures   27,278    40,628 -32.9%    126,581    138,740 -8.8%
Free cash flow$  99,395 $  102,338 -2.9% $  301,694 $  279,250 8.0%


EBITDA and Adjusted EBITDA Reconciliation
The common definition of EBITDA is "Earnings Before Interest Expense, Taxes, Depreciation and Amortization." In evaluating liquidity and performance, the Company uses "Adjusted EBITDA." The Company defines Adjusted EBITDA as earnings before interest expense, share-based compensation, taxes, depreciation and amortization, gain on assets held for sale and transaction costs. EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under GAAP. Although the Company uses Adjusted EBITDA as a measure of its liquidity and performance, the use of Adjusted EBITDA is limited because it does not include certain material costs, such as depreciation, amortization and interest, necessary to operate the business. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for net income, cash flow from operating activities or other income or cash flow data prepared in accordance with GAAP. Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is presented here as the Company understands investors use it as a measure of its historical ability to service debt and compliance with covenants in its senior credit facilities. Further, Adjusted EBITDA is presented here as the Company uses it to measure its performance and to conduct and evaluate its business during its regular review of operating results for the periods presented. Set forth below is a reconciliation of EBITDA and Adjusted EBITDA from cash flow from operating activities and net income.

Please note: Adjustments were made to third quarter 2016 M&A and acquisition-related costs for the Safety Services and Specialized Agent Services segments. On a consolidated basis, these adjustments totaled $0.1 million. Full year results shown in the tables below reflect these adjustments.

        
 Reconciliation of EBITDA and Adjusted EBITDA from Operating Cash Flow 
Unaudited, in thousands       
CONTINUING OPERATIONS Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016   2015   2016   2015 
Cash flows from operating activities$  126,673  $  127,547  $  428,275  $  410,768 
Income tax expense (benefit)   (1,193)    23,093     66,423     107,757 
Deferred income tax benefit (expense)   14,828     (14,888)    30,211     (8,930)
Interest expense and other financing charges   35,685     41,236     186,160     158,356 
Provision for share-based compensation   (5,459)    (6,140)    (25,388)    (22,925)
Amortization of deferred financing costs   (1,834)    (6,928)    (48,342)    (21,945)
Gain on sale of real estate   1,101     -      14,064     -  
Other   (322)    (448)    (1,512)    (672)
Changes in operating assets and liabilities,       
  net of business acquisitions   (17,722)    (5,454)    (9,237)    26,884 
EBITDA   151,757     158,018     640,654     649,293 
Provision for share-based compensation   5,459     6,140     25,388     22,925 
Secondary equity offering expense   -      (186)    -      855 
Gain on sale of real estate   (1,101)    -      (14,064)    -  
Significant restructuring   8,423     -      8,423     -  
M&A and acquisition-related costs   375     1,097     3,745     3,074 
Adjusted EBITDA$  164,913  $  165,069  $  664,146  $  676,147 
        
        
Cash flows from operating activities$  126,673  $  127,547  $  428,275  $  410,768 
Cash flows used in investing activities$  (41,196) $  (118,651) $  (108,263) $  (232,433)
Cash flows used in financing activities$  (88,376) $  (23,453) $  (311,911) $  (388,243)
        
        
DISCONTINUED OPERATIONS Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016   2015   2016   2015 
Cash flows from operating activities$  -   $  15,419  $  -   $  7,222 
Income tax expense   -      (19,717)    -      (372)
Deferred income tax expense   -      4,516     -      2,223 
Provision for share-based compensation   -      -      -      (1,576)
Other   -      -      -      29,596 
Changes in operating assets and liabilities,       
  net of business acquisitions   -      -      -      13,500 
EBITDA   -      218     -      50,593 
Provision for share-based compensation   -      -      -      1,576 
M&A and acquisition-related costs   -      -      -      386 
Gain on sale of business   -      (182)    -      (46,838)
Adjusted EBITDA$  -   $  36  $  -   $  5,717 
        
        
Cash flows used in operating activities$  -   $  15,419  $  -   $  7,222 
Cash flows from investing activities$  -   $  -   $  -   $  275,815 
Cash flows used in financing activities$  -   $  -   $  -   $  -  
        
        
 Reconciliation of EBITDA and Adjusted EBITDA from Operating Cash Flow, cont. 
CONSOLIDATED Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016   2015   2016   2015 
Cash flows from operating activities$  126,673  $  142,966  $  428,275  $  417,990 
Income tax expense (benefit)   (1,193)    3,376     66,423     107,385 
Deferred income tax expense   14,828     (10,372)    30,211     (6,707)
Interest expense and other financing charges   35,685     41,236     186,160     158,356 
Provision for share-based compensation   (5,459)    (6,140)    (25,388)    (24,501)
Amortization of deferred financing costs   (1,834)    (6,928)    (48,342)    (21,945)
Gain on sale of real estate   1,101     -      14,064     -  
Other   (322)    (448)    (1,512)    28,924 
Changes in operating assets and liabilities,       
  net of business acquisitions   (17,722)    (5,454)    (9,237)    40,384 
EBITDA   151,757     158,236     640,654     699,886 
Provision for share-based compensation   5,459     6,140     25,388     24,501 
Secondary equity offering expense   -      (186)    -      855 
Gain on sale of real estate   (1,101)    -      (14,064)    -  
Significant restructuring   8,423     -      8,423     -  
M&A and acquisition-related costs   375     1,097     3,745     3,460 
Gain on sale of business    -      (182)    -      (46,838)
Adjusted EBITDA$  164,913  $  165,105  $  664,146  $  681,864 
        
CONSOLIDATED       
Cash flows from operating activities$  126,673  $  142,966  $  428,275  $  417,990 
Cash flows from (used in) investing activities$  (41,196) $  (118,651) $  (108,263) $  43,382 
Cash flows used in financing activities$  (88,376) $  (23,453) $  (311,911) $  (388,243)
        


        
 Reconciliation of EBITDA and Adjusted EBITDA from Net Income 
Unaudited, in thousands        
CONTINUING OPERATIONS Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016   2015   2016   2015 
Income from continuing operations$  68,320  $  42,340  $  193,389  $  190,916 
Interest expense and other financing charges   35,685     41,236     186,160     158,356 
Depreciation and amortization   48,945     51,349     194,682     192,264 
Income tax expense (benefit)   (1,193)    23,093     66,423     107,757 
EBITDA   151,757     158,018     640,654     649,293 
Provision for share-based compensation   5,459     6,140     25,388     22,925 
Secondary equity offering expense   -      (186)    -      855 
Gain on sale of real estate   (1,101)    -      (14,064)    -  
Significant restructuring   8,423     -      8,423     -  
M&A and acquisition-related costs   375     1,097     3,745     3,074 
Adjusted EBITDA$  164,913  $  165,069  $  664,146  $  676,147 
        
        
DISCONTINUED OPERATIONS Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016   2015   2016   2015 
Income from discontinued operations$  -   $  19,935  $  -   $  50,924 
Depreciation and amortization   -      -      -      41 
Income tax expense   -      (19,717)    -      (372)
EBITDA   -      218     -      50,593 
Provision for share-based compensation   -      -      -      1,576 
M&A and acquisition-related costs   -      -      -      386 
Gain on sale of business    -      (182)    -      (46,838)
Adjusted EBITDA$  -   $  36  $  -   $  5,717 
        
        
CONSOLIDATED Three Months Ended Dec. 31,   Year Ended Dec. 31, 
  2016   2015   2016   2015 
Net income$  68,320  $  62,275  $  193,389  $  241,840 
Interest expense and other financing charges   35,685     41,236     186,160     158,356 
Depreciation and amortization   48,945     51,349     194,682     192,305 
Income tax expense (benefit)   (1,193)    3,376     66,423     107,385 
EBITDA   151,757     158,236     640,654     699,886 
Provision for share-based compensation   5,459     6,140     25,388     24,501 
Secondary equity offering expense   -      (186)    -      855 
Gain on sale of real estate   (1,101)    -      (14,064)    -  
Significant restructuring   8,423     -      8,423     -  
M&A and acquisition-related costs   375     1,097     3,745     3,460 
Gain on sale of business   -      (182)    -      (46,838)
Adjusted EBITDA$  164,913  $  165,105  $  664,146  $  681,864 
        

Non-GAAP Metrics used in 2017 Guidance

Ranges are shown for each line item. Totals may not foot.

In millions except per share amounts    
 
 Reconciliation of Adjusted EBITDA from Operating Income  
 2017 Guidance 
 Min (low) Max (high) 
Operating income$  413  - $  446  
Depreciation and amortization   195  -    196  
Other income   2  -    2  
EBITDA$  610  - $  644  
Provision for share-based compensation   27  -    27  
M&A and acquisition-related costs   2  -    2  
Adjusted EBITDA$   639   - $   672   
 
 Reconciliation of Adj. Operating Income from Operating Income  
 2017 Guidance 
 Min (low) Max (high) 
Operating income$  413  - $  446  
Amortization of acquired intangible assets   57  -    57  
Provision for share-based compensation   27  -    27  
M&A and acquisition-related costs   2  -    2  
Adjusted operating income$   500   - $   532   
 
 Reconciliation of Adj. Net Income and Adj. EPS from Net Income  
 2017 Guidance 
 Min (low) Max (high) 
Net income$  175  - $  196  
Amortization of acquired intangible assets   57  -    57  
Amortization of deferred financing costs   8  -    8  
Provision for share-based compensation   27  -    27  
M&A and acquisition-related costs   2  -    2  
Pre-tax total    269  -    290  
Income tax expense on adjustments   (35) -    (35) 
Adjusted net income $   234   - $   255   
     
Adjusted EPS - diluted$   2.76   - $   3.00   

                                                                         

1 See Reconciliation of Non-GAAP Financial Measures below.                                       
2 Free cash flow is calculated as cash flows from operating activities less cash capital expenditures. 
3 Revenue growth attributable to acquired entities for the fourth quarter of 2016 includes Magnetic North, ClientTell, Synrevoice and 911 ETC. Revenue growth attributable to acquired entities for the full year 2016 includes SharpSchool, Magnetic North, ClientTell, Synrevoice and 911 ETC. 
4 Based on loan covenants. Covenant loan ratio is debt net of cash and excludes accounts receivable securitization debt. 
5 Adjusted organic growth, a non-GAAP metric, is provided on the Selected Financial Data tables and excludes revenue from acquired entities, revenue from previously disclosed lost clients and the estimated impact of foreign currency exchange rates. The Company believes adjusted organic growth provides a useful measure of growth in its ongoing business. Details of the Company's revenue growth are presented in the Selected Financial Data table.
NM: Not Meaningful 
AT THE COMPANY:       
Dave Pleiss
Investor Relations
West Corporation
(402) 963-1500
DMPleiss@west.com