West Corporation Completes Raindance Acquisition and Updates 2006 Guidance
April 06 2006 - 1:30AM
PR Newswire (US)
OMAHA, Neb., April 6 /PRNewswire-FirstCall/ -- West Corporation
(NASDAQ:WSTC), a leading provider of outsourced communication
solutions, today announced it has completed the acquisition of
Raindance Communications Inc. (NASDAQ:RNDC), a leader in integrated
multimedia conferencing services and support. Raindance
shareholders approved the acquisition on April 4. Pursuant to the
merger agreement signed on February 6, 2006, West paid $2.70 per
Raindance share in cash. Raindance will become part of West's
Conferencing Services segment, and Raindance products and services
will be integrated into the InterCall suite of products. "We are
pleased to welcome Raindance employees and clients to InterCall,"
said J. Scott Etzler, President of InterCall. "We look forward to
the integration of the Raindance products and team and the
enhancement of our product offering as a result of this
combination." To finance the Intrado and Raindance acquisitions,
West expanded its revolving credit facility to $800 million from
$400 million. The Company will borrow approximately $600 million
against its credit facility and have a total of approximately $760
million outstanding after funding acquisition costs. The current
variable interest rate on the credit facility is 5.5 percent. As a
result of the closing of the Intrado and Raindance acquisitions,
the Company now anticipates the following results for the year
ended December 31, 2006. This guidance assumes no additional
acquisitions or changes in the current operating environment.
Consolidated Financial Outlook Original(1) Updated Guidance Revenue
$1,650 - $1,700 $1,830 - $1,880 Operating Margin 16.5% - 17.0%
16.5% - 17.0% Net Income $150 - $160 $155 - $165 Cash Flow from
Operations $270 - $290 $315 - $335 Capital Expenditures $75 - $85
$83 - $96 Financial Outlook by Segment Revenue Original(1)
Revised(2) Intrado Raindance Updated Guidance Communications
Services $915 - $940 $910 - $930 $110 - $120 NA $1,020 - $1,050
Conferencing Services $490 - $515 $515 - $540 NA $55 - $60 $570 -
$600 Receivables Management $235 - $250 $240 - $255 NA NA $240 -
$255 Consolidated $1,650 - $1,700 NA NA NA $1,830 - $1,880
Operating Margin Original(1) Intrado Raindance Updated Guidance
Communications Services 12.0% - 13.0% 13.5% - 14.5% NA 12.0% -
13.0% Conferencing Services 21.5% - 22.5% NA 16.0% - 18.0% 21.5% -
22.5% Receivables Management 17.5% - 18.5% NA NA 18.0% - 20.0%
Consolidated 16.5% - 17.0% NA NA 16.5% - 17.0% In millions, except
margin (1) As issued on December 14, 2005 (2) Revised outlook prior
to Intrado and Raindance acquisitions Conference Call The company
will hold a conference call to discuss updated 2006 guidance on
Thursday, April 6 at 12:00 PM Eastern Time (11:00 AM Central Time).
Investors may access the call at 800-374-0457 or by visiting the
Investor section of the West Corporation website at
http://www.west.com/ and clicking on the Webcast link. 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,
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. Founded in 1986 and headquartered
in Omaha, Nebraska, West has a team of over 28,000 employees based
in North America, Europe and Asia. For more information, please
visit http://www.west.com/. 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. In particular, the
statements set forth above in "Outlook," and the statements
relating to integration and product enhancements expected from the
Raindance acquisition, as well as the assumptions underlying or
relating to such expectations, are forward-looking statements.
These statements reflect only West's current expectations and are
not guarantees of future performance or results. These statements
are subject to risks and uncertainties that could cause actual
results to differ materially from those contained in the
forward-looking statements. These risks and uncertainties include
West's ability to integrate or achieve the objectives of the
recently completed Intrado and Raindance acquisitions, West's
ability to complete future acquisitions, competition in West's
highly competitive industries, extensive regulation in many of
West's markets, West's ability to recover on its charged-off
consumer receivables, capacity utilization of West's contact
centers, the cost and reliability of voice and data services,
availability of key personnel and employees, the cost of labor and
turnover rates, the political, economic and other conditions in
countries where West operates, the loss of any key clients, West's
ability to purchase charged-off receivable portfolios on acceptable
terms and in sufficient amounts, the nature of West's forward flow
contracts, the non-exclusive nature of West's client contracts and
the absence of any revenue commitments, the possibility of an
emergency interruption to West's data and contact centers, acts of
terrorism or war, security or privacy breaches of West's systems
and databases, West's ability to protect proprietary information or
technology, West's ability to continue to keep pace with
technological developments, the cost of pending and future
litigation and other risk factors described in documents filed by
the company with the United States Securities and Exchange
Commissions including West's annual report on Form 10-K for the
year ended December 31, 2005. 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. DATASOURCE: West Corporation CONTACT:
David Pleiss of West Corporation, +1-402-963-1500, Web site:
http://www.west.com/
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