West Corporation, a provider of outsourced communication solutions, Tuesday announced its third quarter 2008 results.
According to the company, revenues were $598.5 million for the third quarter ended September 30, 2008, compared to $531.1 million for the same quarter last year; an increase of 12.7 percent. Revenue generated from acquired entities (HBF (News - Alert) Communications, acquired in April 2008, and Genesys, acquired in May 2008) was $59.5 million during the third quarter, including $58.3 million from Genesys.
Adjusted EBITDA (Earnings Before Interest Expense, Taxes, Depreciation and Amortization) for the third quarter was $169.7 million, or 28.4 percent of revenue. A reconciliation of Adjusted EBITDA to cash flow from operating activities is shown below.
West Corporation reported cash and cash equivalents totaling $254.9 million and working capital of $283.8 million at September 30, 2008
On this date, the company also had $204 million outstanding on its $250.0 million revolving credit facility. West Corporation borrowed an additional $20 million after September 30, 2008. Funding requests made to Lehman Commercial Paper of $26 million were not advanced to the company.
"The borrowings on the revolving credit facility were made to ensure near term liquidity," said Paul Mendlik, chief financial officer of West Corporation.
West Corporation believes that it has sufficient funds to continue normal operations and does not believe that the potential reduction in available capacity under this revolving credit facility will affect its short-term or long-term liquidity.
During the third quarter, the company invested $21.6 million in capital expenditures mainly for software, equipment and information technology systems.
To expand upon their third quarter financial results, West Corporation is hosting a conference call on Wednesday, October 22, 2008 at 11:00 a.m. ET/ 10:00 a.m. CT. Investors can join the call by visiting the Financials section of the West Corporation Web site at www.west.com and clicking on the Webcast link. A replay of the call will be available on the company's Web site.
Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West helps its clients communicate effectively, maximize the value of their customer relationships and drive greater profitability from every interaction. The company's integrated suite of customized solutions includes customer acquisition, customer care, automated voice services, emergency communications, conferencing and accounts receivable management services.
Michelle Robart is a contributing editor for TMCnet. To read more of Michelle's articles, please visit her columnist page.
Edited by Michelle Robart