West Corporation Reports Second Quarter 2008 Results

OMAHA, NE, Jul 23 (MARKET WIRE) --
West Corporation, a leading provider of outsourced communication
solutions, today announced its second quarter 2008
results.

Financial Summary (unaudited)
(Dollars in millions)

Three Months Ended June 30, Six Months Ended June 30,
------------------------- -----------------------------
Percent Percent
2008 2007 Change 2008 2007 Change
------- ------- ------- --------- --------- -------
Revenue $ 551.4 $ 520.2 6.0% $ 1,077.2 $ 1,028.8 4.7%
------- ------- ------- --------- --------- -------
Adjusted
EBITDA(1) $ 147.9 $ 146.9 0.7% $ 286.2 $ 292.3 -2.1%
------- ------- ------- --------- --------- -------
Adjusted EBITDA
Margin 26.8% 28.2% 26.6% 28.4%
------- ------- ------- --------- --------- -------
Adjusted EBITDA
Excl. Interest
Income(1) $ 147.3 $ 143.3 2.8% $ 284.5 $ 285.4 -0.3%
------- ------- ------- --------- --------- -------
Cash Flow from
Operations $ 46.6 $ 45.3 2.9% $ 70.7 $ 127.2 -44.4%
------- ------- ------- --------- --------- -------

(1) See Reconciliation of Financial Measures below.

Consolidated Operating Results

For the second quarter ended June 30, 2008, revenues were $551.4 million
compared to $520.2 million for the same quarter last year, an increase of
6.0 percent. Revenue from acquired entities(2) was $34.6 million during
the second quarter, including $26.0 million from Genesys.

During the quarter, the Company recorded a $19.8 million reduction in
revenue in its Receivables Management segment from an allowance for
impairment of purchased accounts receivable which were acquired prior to
January 1, 2008. The Company believes this impairment was due to reduced
second quarter liquidation rates resulting from weaker economic conditions
for consumers which resulted in a collection environment that was more
difficult than expected. This impairment charge results in a 300 basis
point reduction in consolidated second quarter operating margin. In
addition, minority interest was reduced by $4.2 million to account for the
minority owner's share of this impairment.

Excluding the $19.8 million revenue impairment charge, consolidated
revenue would have been $571.2 million. Organic growth before the
impairment charge was 3.2 percent for the quarter.

2008 Guidance

As a result of the impairment charge in the Receivables Management
segment, the Company now anticipates the following results for the year
ending December 31, 2008. This guidance assumes no additional
acquisitions or changes in the current operating environment and excludes
unrealized synergies from the Genesys acquisition.

May 22
In Millions Guidance(3) Revised Guidance
----------------- -----------------
Revenue $ 2,328 - $ 2,370 $ 2,300 - $ 2,340
----------------- -----------------
Adjusted EBITDA $ 608 - $ 635 $ 608 - $ 635
----------------- -----------------
Cash Flow from Operations $ 235 - $ 265 $ 235 - $ 265
----------------- -----------------
Capital Expenditures $ 105 - $ 123 $ 105 - $ 123
----------------- -----------------

(2) Acquired entities include Omnium Worldwide, Inc. (acquired in May 2007)
in the Receivables Management segment, HBF Communications (acquired in
April 2008) in the Communications Services segment and Genesys
(acquired in May 2008) in the Conferencing Services segment.
(3) As issued by the Company on May 22, 2008 after completing the
acquisition of Genesys.

Balance Sheet and Liquidity

At June 30, 2008, West Corporation had cash and cash equivalents totaling
$54.9 million and working capital of $46.1 million. Adjusted EBITDA for
the second quarter was $147.9 million, or 26.8 percent of revenue. A
reconciliation of Adjusted EBITDA to cash flow from operating activities
is presented below.

During the quarter, the Company invested $26.0 million in capital
expenditures primarily for information technology systems, software and
equipment.

Conference Call

The Company will hold a conference call to discuss these topics on
Thursday, July 24, 2008 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 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
39,000 employees based in North America, Europe and Asia. For more
information, please 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 risks and
uncertainties that could cause actual results to differ materially from
those contained in the forward-looking statements. These risks and
uncertainties include the ability to integrate or achieve the objectives
of our recent 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, and finance the acquisition of, 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 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 Commission including West's annual report
on Form 10-K for the year ended December 31, 2007 and quarterly report on
Form 10-Q for the quarter ended March 31, 2008. 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.

WEST CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited, in thousands except selected operating data)

Three Months Ended June 30, Six Months Ended June 30,
% %
2008 2007 Change 2008 2007 Change
---------- ---------- ------ ---------- ---------- ------
Revenue $ 551,433 $ 520,186 6.0% $1,077,188 $1,028,819 4.7%
Cost of
services 251,143 224,306 12.0% 501,703 443,291 13.2%
Selling,
general and
administrat-
ive expenses 219,090 206,305 6.2% 425,218 399,368 6.5%
---------- ---------- ------ ---------- ---------- ------
Operating
income 81,200 89,575 -9.3% 150,267 186,160 -19.3%
Interest
expense 70,204 83,465 -15.9% 144,363 163,655 -11.8%
Other expense
(income),
net (483) (4,178) -88.4% (917) (8,108) -88.7%
---------- ---------- ------ ---------- ---------- ------
Income before
tax 11,479 10,288 11.6% 6,821 30,613 -77.7%
Income tax
expense 4,737 3,519 34.6% 3,998 10,927 -63.4%
Minority
Interest (987) 4,257 -123.2% (3,702) 8,155 -145.4%
---------- ---------- ------ ---------- ---------- ------
Net income $ 7,729 $ 2,512 207.7% $ 6,525 $ 11,531 -43.4%
========== ========== ====== ========== ========== ======

SELECTED
SEGMENT
DATA:
Revenue:
Communication
Services $ 272,442 $ 264,303 3.1% $ 552,775 $ 536,970 2.9%
Conferencing 230,069 183,651 25.3% 425,713 359,817 18.3%
Receivables
Management 50,337 73,658 -31.7% 101,453 134,781 -24.7%
Inter segment
eliminations (1,415) (1,426) -0.8% (2,753) (2,749) 0.1%
---------- ---------- ------ ---------- ---------- ------
Total $ 551,433 $ 520,186 6.0% $1,077,188 $1,028,819 4.7%
========== ========== ====== ========== ========== ======

Depreciation
&
Amortization:
Communication
Services $ 18,399 $ 22,809 -19.3% $ 37,237 $ 42,921 -13.2%
Conferencing 18,674 16,438 13.6% 35,151 31,640 11.1%
Receivables
Management 5,510 5,516 -0.1% 12,400 8,033 54.4%
---------- ---------- ------ ---------- ---------- ------
Total $ 42,583 $ 44,763 -4.9% $ 84,788 $ 82,594 2.7%
========== ========== ====== ========== ========== ======

Operating
Income:
Communication
Services $ 32,823 $ 29,002 13.2% $ 63,375 $ 65,300 -2.9%
Conferencing 58,326 46,896 24.4% 109,558 93,594 17.1%
Receivables
Management (9,949) 13,677 -172.7% (22,666) 27,266 -183.1%
---------- ---------- ------ ---------- ---------- ------
Total $ 81,200 $ 89,575 -9.3% $ 150,267 $ 186,160 -19.3%
========== ========== ====== ========== ========== ======

Operating
Margin:
Communication
Services 12.0% 11.0% 9.1% 11.5% 12.2% -5.7%
Conferencing 25.4% 25.5% -0.4% 25.7% 26.0% -1.2%
Receivables
Management -19.8% 18.6% -206.5% -22.3% 20.2% -210.4%
---------- ---------- ------ ---------- ---------- ------
Total 14.7% 17.2% -14.5% 13.9% 18.1% -23.2%
========== ========== ====== ========== ========== ======

SELECTED OPERATING
DATA ($M):
Share-based
compensation
expense
recognized 0.4 0.3
Cash flow
from
operations 46.6 45.3
Revolving
line of
credit 25.0 -
Term loan
facility 2,498.1 2,388.4
Multi-currency
revolving
credit
facility 76.5 -
Senior notes 650.0 650.0
Senior
subordinated
notes 450.0 450.0

Condensed Balance Sheets
June 30, December 31, %
2008 2007 Change
---------- ---------- ------
Current assets:
Cash and cash
equivalents $ 54,942 $ 141,947 -61.3%
Trust cash 12,058 10,358 16.4%
Accounts
receivable,
net 350,774 289,480 21.2%
Portfolio
receivables,
current 51,620 77,909 -33.7%
Deferred
income taxes
receivable 20,548 33,718 -39.1%
Other
current
assets 69,219 44,463 55.7%
---------- ---------- ------
Total
current
assets 559,161 597,875 -6.5%
Net property
and
equipment 324,931 298,645 8.8%
Portfolio
receivables,
net 119,391 132,233 -9.7%
Goodwill 1,563,811 1,329,978 17.6%
Other assets 600,816 487,759 23.2%
---------- ---------- ------
Total
assets $3,168,110 $2,846,490 11.3%
========== ========== ======
Current
liabilities $ 513,037 $ 410,080 25.1%
Long Term
Obligations 3,699,581 3,495,529 5.8%
Other
liabilities 145,987 138,297 5.6%
---------- ---------- ------
Total
liabil-
ities 4,358,605 4,043,906 7.8%

Minority
interest 6,694 12,937 -48.3%
Class L
common stock 1,093,500 1,029,782 6.2%

Stockholders'
deficit (2,290,689)(2,240,135) 2.3%
---------- ---------- ------
Total
liabilit-
ies and
stockhol-
ders'
deficit $3,168,110 $2,846,490 11.3%
========== ========== ======

Reconciliation of Financial Measures

The common definition of EBITDA is "Earnings Before Interest Expense,
Taxes, Depreciation and Amortization." In evaluating liquidity, we use
earnings before interest expense, share based compensation, taxes,
depreciation and amortization, minority interest, non-recurring
litigation settlement costs, other non-cash reserves, transaction costs
and after acquisition synergies and excluding unrestricted subsidiaries,
or "Adjusted EBITDA." We also use "Adjusted EBITDA Excluding Interest
Income," which we define as earnings before interest expense and
non-recurring interest income, share based compensation, taxes,
depreciation and amortization, minority interest, non-recurring litigation
settlement costs, other non-cash reserves, transaction costs and after
acquisition synergies and excluding unrestricted subsidiaries. EBITDA,
Adjusted EBITDA and Adjusted EBITDA Excluding Interest Income are not
measures of financial performance or liquidity under generally accepted
accounting principles ("GAAP"). EBITDA, Adjusted EBITDA and Adjusted
EBITDA Excluding Interest Income should not be considered in isolation or
as a substitute for net income, cash flow from operations or other income
or cash flow data prepared in accordance with GAAP. Adjusted EBITDA and
Adjusted EBITDA Excluding Interest Income, as presented, may not be
comparable to similarly titled measures of other companies. Adjusted
EBITDA and Adjusted EBITDA Excluding Interest Income are presented as we
understand certain investors use them as one measure of our historical
ability to service debt. Adjusted EBITDA is also used in our debt
covenants, although the precise adjustments used to calculate Adjusted
EBITDA included in our credit facility and indentures vary in certain
respects among such agreements and from those presented below. Set forth
below is a reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA
Excluding Interest Income to cash flow from operations.

Three Months Ended Six Months Ended
Amounts in thousands June 30, June 30,
2008 2007 2008 2007
--------- --------- --------- ---------
Cash flow from operating
activities $ 46,633 $ 45,255 $ 70,655 $ 127,183
Income tax expense 4,737 3,519 3,998 10,927
Deferred income tax (expense)
benefit (463) 4,008 3,696 (2,682)
Interest expense 70,204 83,465 144,363 163,655
Allowance for impairment of
purchased accounts receivable (19,836) - (44,076) -
Minority interest in earnings,
net of distributions 3,002 (565) 7,645 (285)
Provision for share based
compensation (357) (319) (669) (629)
Debt amortization (3,940) (3,657) (7,561) (7,408)
Other (59) (5) 29 432
Changes in operating assets and
liabilities, net of business
acquisitions 25,332 2,559 61,594 (22,485)
--------- --------- --------- ---------
EBITDA 125,253 134,260 239,674 268,708
Minority interest (987) 4,257 (3,702) 8,155
Provision for share based
compensation 357 319 669 629
Recapitalization costs 1,113 4,443 2,113 8,575
Acquisition synergies 2,599 2,475 2,977 4,237
Site closures (273) - (273) -
Portfolio impairment 19,836 - 44,076 -
Asset impairment - - 739 -
Acquisition costs - - (26) -
Vertical Alliance Adjustment - 1,113 - 1,948
--------- --------- --------- ---------
Adjusted EBITDA $ 147,898 $ 146,867 $ 286,247 $ 292,252
========= ========= ========= =========

Interest income 551 3,570 1,791 6,832
--------- --------- --------- ---------
Adjusted EBITDA Excluding
Interest Income $ 147,347 $ 143,297 $ 284,456 $ 285,420
========= ========= ========= =========

Contact:

West Corporation
11808 Miracle Hills Drive
Omaha, NE 68154

AT THE COMPANY:
David Pleiss
Investor Relations
(402) 963-1500
Email Contact

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