West Corporation
Apr 20, 2005

West Corporation Reports Strong First Quarter Results

Consolidated Operating Income Reaches $59.1 Million on Consolidated Operating Margins of 16.4%

OMAHA, Neb., April 20, 2005 /PRNewswire-FirstCall via COMTEX/ -- West Corporation (Nasdaq: WSTC), a leading provider of outsourced communication solutions, today announced its first quarter 2005 results.

Financial Summary (unaudited)
    (In millions, except per share amounts and percentages)

                                       Three Months Ended
                                             Mar 31
                                      2005            2004    Percent Change
     Total Revenue                   $359.6          $289.4         24.3%
     Operating Income                 $59.1           $44.7         32.1%
     Net Income                       $33.5           $27.4         22.3%
     Earnings per share (basic)       $0.49           $0.41         19.5%
     Earnings per share (diluted)     $0.47           $0.40         17.5%

"We are pleased to report solid growth in each of our business segments," said Thomas B. Barker, Chief Executive Officer of West Corporation. "Our continued investment through capital expenditures and acquisitions has yielded outstanding operating results, demonstrating the strength of our overall business."

Consolidated Operating Results

For the first quarter ended March 31, 2005, revenues were $359.6 million compared to $289.4 million for the same quarter last year, an increase of 24.3%. Revenue from acquired entities accounted for $50.5 million of this increase. Operating income for the first quarter was $59.1 million, an increase of 32.1% compared to $44.7 million for the first quarter of 2004. Net income was $33.5 million, up 22.3% compared to $27.4 million in the same quarter last year. Diluted earnings per share were $0.47 versus $0.40 in the same period of 2004.


The company reported consolidated operating income as a percentage of revenue of 16.4% in the first quarter of 2005, up from 15.5% in the comparable quarter last year. The operating margin improvements for the quarter are the result of increased revenues in the traditionally higher margin Conferencing and Receivables Management segments. The Company also experienced improved margins in the Communications Services and Receivables Management segments.

Balance Sheet

At March 31, 2005, West Corporation had cash and short-term investments totaling $33.6 million and a current ratio of 1.8 to 1. Net cash flows from operating activities were $59.4 million for the first quarter, an increase of $2.7 million over the first quarter of 2004. As of March 31, 2005, the company had $210 million of capacity available on its bank line of credit.

"During the first quarter, we invested $16.3 million in capital expenditures as we continued to improve our business, expanding seven domestic and one international contact center to support new business opportunities," commented Paul Mendlik, Chief Financial Officer of West. "Through these investments we added approximately 500 workstations, including 229 workstations at our international call centers."

Conference Call

The company will hold a conference call to discuss earnings on April 21st at 10:00 AM Central Time. Investors may access the call by visiting the Investor Relations section of the West Corporation website at http://www.west.com and clicking on the Live Webcast icon. If you are unable to participate during the live webcast, a replay of the call will also be available on the website.

About West Corporation

West Corporation is a leading provider of outsourced communication solutions to many of the world's largest companies. The company helps its clients communicate effectively, maximize the value of their customer relationships and drive greater revenue from each transaction. West's integrated suite of customized solutions includes customer acquisition, customer care and retention services, interactive voice response services, and conferencing and accounts receivable management services.

Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 28,000 employees based in North America, Europe and Asia.

For more information, please visit http://www.west.com .

This news release contains forward looking statements within the meaning of the Federal securities laws. You can identify forward looking statements by the use of such words as "will," "expect," "plans," "believes," "estimates," "intend," "continue," or the negative of such terms, or other comparable terminology. Forward looking statements also include the assumptions underlying or relating to any of the foregoing statements.

Our results could differ materially from the expectations expressed in these statements. Further information regarding the factors that could cause actual results to differ from expected projected results can be found in documents filed by the company with the United States Securities and Exchange Commissions (the "SEC") including our annual report on Form 10-K for the year ended March 31, 2004, and subsequently filed quarterly reports on Form 10-Q. We assume no obligation to update these forward looking statements.

    (Unaudited, in thousands except per share and selected operating data)

                                          Three Months Ended March 31,
                                               2005         2004      % Change
    Revenue                                  $359,557     $289,368      24.3%
    Cost of services                          165,937      125,934      31.8%
    Selling, general and administrative
     expenses                                 134,541      118,695      13.4%
    Operating income                           59,079       44,739      32.1%
    Other income (expense), net                (2,362)      (1,273)     85.5%
    Income before tax                          56,717       43,466      30.5%
    Income tax expense                         19,480       16,039      21.5%
    Minority Interest                           3,697          -
    Net income                                $33,540      $27,427      22.3%

    Earnings per share:
      Basic                                     $0.49        $0.41      19.5%
      Diluted                                   $0.47        $0.40      17.5%
    Weighted average common shares outstanding:
      Basic                                    68,414       67,297
      Diluted                                  70,805       68,754

        Communication Services                218,446      203,742       7.2%
        Conferencing                           88,192       75,228      17.2%
        Receivables Management                 54,006       10,656     406.8%
        Inter segment eliminations             (1,087)        (258)    321.3%
        Total                                 359,557      289,368      24.3%

    Operating Income:
        Communication Services                 30,565       26,886      13.7%
        Conferencing                           18,147       16,778       8.2%
        Receivables Management                 10,367        1,075     864.3%
        Total                                  59,079       44,739      32.1%

    Operating Margin:
        Communication Services                   14.0%        13.2%      6.1%
        Conferencing                             20.6%        22.3%     -7.6%
        Receivables Management                   19.2%        10.1%     90.1%
        Total                                    16.4%        15.5%      5.8%

    Number of workstations (end of period)     16,269       14,389      13.1%
    Number of Communication Services ports
     (end of period)                          133,684      141,840      -5.8%

                                            Condensed Balance Sheet
                                             March 31,  December 31,
                                               2005         2004      % Change
    Current assets:
      Cash and short-term investments         $33,649      $32,572       3.3%
      Trade accounts receivable, net          192,301      195,598      -1.7%
      Portfolio receivables, current           30,216       26,646      13.4%
      Other current assets                     27,716       27,244       1.7%
        Total current assets                  283,882      282,060       0.6%
    Net property and equipment                218,311      223,110      -2.2%
    Portfolio receivables, net                 55,342       56,897      -2.7%
    Goodwill                                  579,535      573,885       1.0%
    Other assets                              134,714      135,254      -0.4%
        Total assets                       $1,271,784   $1,271,206       0.0%
    Current liabilities                      $161,317     $160,755       0.3%
    Long Term Obligations                     199,428      238,354     -16.3%
    Other liabilities & minority interest      86,463       82,642       4.6%
    Stockholders' equity                      824,576      789,455       4.4%
      Total liabilities and stockholders
       equity                              $1,271,784   $1,271,206       0.0%

SOURCE West Corporation

Carol Padon, Investor Relations, of West Corporation, +1-402-963-1500

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