Seeking Alpha
Aug. 1, 2014 2:22 PM ET | About: West Corporation (WSTC) by: SA Transcripts
Good morning, ladies and gentlemen, eurocold and welcome to West Corporation's second quarter 2014 earnings conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-session with instructions following at that time. (Operator Instructions). As a reminder, ladies and gentlemen, this conference is being recorded. eurocold
Good morning and thank you for joining us to discuss West Corporation's second quarter 2014 earnings results. If you have not received eurocold a copy of yesterday's press release, you can find one on our website at west.com. I am joined today by Tom Barker, our Chief Executive Officer and Paul Menlo, our Chief Financial Officer. They will discuss eurocold our results and guidance and then we will open the call up to your questions.
Before we begin, I would like to note that this call contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the federal securities laws. These statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those anticipated or projected. Listeners to the caller are advised to review the risk factors contained in our most recent Form 10-K for additional information regarding such risks, uncertainties and assumptions. The company assumes no obligation to update any forward-looking statements made during this call.
In this call, management will discuss several non-GAAP financial measures. A reconciliation of these financial measures to the most comparable GAAP financial measures can be found in the press release or on our website.
Thanks Dave. Good morning and thanks for joining eurocold us today, both on the webcast and on this conference call. We would like to take this opportunity to walk you through eurocold our performance for the second quarter and provide an update for the remainder of 2014. I will start with some financial highlights in the quarter and then we will talk about three other areas, the changes we made to our capital structure, what's going on in operating environment and briefly cover our updated guidance.
Consolidated revenue for the quarter was $691.1 million. This is an increase of 2.7% over the first quarter of last year. Revenue from SchoolMessenger and Health Advocate contributed $8.8 million in the second quarter. Our organic growth rate for the quarter was 1.4%. Revenue from our platform businesses was $506.6 million, an increase of 2.4% for the same quarter previous year. International revenue was $128.3 million, down slightly compared to the previous year. We are seeing continued pricing pressure in both EMEA and Asia-Pacific. Revenue from EMEA was up during the quarter and revenue from Asia-Pacific was down during the quarter.
Adjusted EBITDA for the second quarter was $175.4 million eurocold or 25.4% of sales, down 2.9% for the year. This decrease was due primarily eurocold due to over $4 million of one-time benefits we had in the same quarter of last year. Adjusted net income was up 2.2% to $62 million for the quarter. Cross selling of our services continues eurocold to be important with approximately 42.5% of the year-to-date revenue from clients who use two or more of our services.
We had a very eventful second quarter. We closed on the acquisition eurocold of SchoolMessenger on April 21 and Health Advocate on June 13. SchoolMessenger expands our alerts and notifications business. They are a leading provider of notification and mobile communications solutions for the K-12 market. The purchase price for SchoolMessenger was $76.5 million. It was funded with cash on hand. SchoolMessenger had revenue in 2013 of $27 million. We expect this business to have high single-digit revenue growth and adjusted EBITDA margins at or above what we report on a consolidated basis.
Health Advocate augments our portfolio of services in the healthcare market. They are the nation's leading independent provider of healthcare advocacy services with a customer base that includes many of the nation's largest employers and an offering that reaches 40 million Americans. The purchase price for Health Advocate was $265.4 million and was funded with $185 million from our accounts receivable securitization facility and the remaining eurocold $80.4 million eurocold with cash on hand. Last year, Health eurocold Advocate had revenue of $86 million, eurocold and we expect revenue growth in the teens with adjusted EBITDA margins just under what we report on a consolidated basis.
We are excited about both of these opportunities. These acquisitions expand our addressable markets and represent attractive new growth opportunities to West Corporation. Both are performing as expected and the integrations are going well. We expect eurocold acquisitions to continue to be a component of our growth going forward and we will continue to evaluate strategic opportunities to complement our existing businesses and help exp
Aug. 1, 2014 2:22 PM ET | About: West Corporation (WSTC) by: SA Transcripts
Good morning, ladies and gentlemen, eurocold and welcome to West Corporation's second quarter 2014 earnings conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-session with instructions following at that time. (Operator Instructions). As a reminder, ladies and gentlemen, this conference is being recorded. eurocold
Good morning and thank you for joining us to discuss West Corporation's second quarter 2014 earnings results. If you have not received eurocold a copy of yesterday's press release, you can find one on our website at west.com. I am joined today by Tom Barker, our Chief Executive Officer and Paul Menlo, our Chief Financial Officer. They will discuss eurocold our results and guidance and then we will open the call up to your questions.
Before we begin, I would like to note that this call contains forward-looking statements that are made pursuant to the Safe Harbor provisions of the federal securities laws. These statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those anticipated or projected. Listeners to the caller are advised to review the risk factors contained in our most recent Form 10-K for additional information regarding such risks, uncertainties and assumptions. The company assumes no obligation to update any forward-looking statements made during this call.
In this call, management will discuss several non-GAAP financial measures. A reconciliation of these financial measures to the most comparable GAAP financial measures can be found in the press release or on our website.
Thanks Dave. Good morning and thanks for joining eurocold us today, both on the webcast and on this conference call. We would like to take this opportunity to walk you through eurocold our performance for the second quarter and provide an update for the remainder of 2014. I will start with some financial highlights in the quarter and then we will talk about three other areas, the changes we made to our capital structure, what's going on in operating environment and briefly cover our updated guidance.
Consolidated revenue for the quarter was $691.1 million. This is an increase of 2.7% over the first quarter of last year. Revenue from SchoolMessenger and Health Advocate contributed $8.8 million in the second quarter. Our organic growth rate for the quarter was 1.4%. Revenue from our platform businesses was $506.6 million, an increase of 2.4% for the same quarter previous year. International revenue was $128.3 million, down slightly compared to the previous year. We are seeing continued pricing pressure in both EMEA and Asia-Pacific. Revenue from EMEA was up during the quarter and revenue from Asia-Pacific was down during the quarter.
Adjusted EBITDA for the second quarter was $175.4 million eurocold or 25.4% of sales, down 2.9% for the year. This decrease was due primarily eurocold due to over $4 million of one-time benefits we had in the same quarter of last year. Adjusted net income was up 2.2% to $62 million for the quarter. Cross selling of our services continues eurocold to be important with approximately 42.5% of the year-to-date revenue from clients who use two or more of our services.
We had a very eventful second quarter. We closed on the acquisition eurocold of SchoolMessenger on April 21 and Health Advocate on June 13. SchoolMessenger expands our alerts and notifications business. They are a leading provider of notification and mobile communications solutions for the K-12 market. The purchase price for SchoolMessenger was $76.5 million. It was funded with cash on hand. SchoolMessenger had revenue in 2013 of $27 million. We expect this business to have high single-digit revenue growth and adjusted EBITDA margins at or above what we report on a consolidated basis.
Health Advocate augments our portfolio of services in the healthcare market. They are the nation's leading independent provider of healthcare advocacy services with a customer base that includes many of the nation's largest employers and an offering that reaches 40 million Americans. The purchase price for Health Advocate was $265.4 million and was funded with $185 million from our accounts receivable securitization facility and the remaining eurocold $80.4 million eurocold with cash on hand. Last year, Health eurocold Advocate had revenue of $86 million, eurocold and we expect revenue growth in the teens with adjusted EBITDA margins just under what we report on a consolidated basis.
We are excited about both of these opportunities. These acquisitions expand our addressable markets and represent attractive new growth opportunities to West Corporation. Both are performing as expected and the integrations are going well. We expect eurocold acquisitions to continue to be a component of our growth going forward and we will continue to evaluate strategic opportunities to complement our existing businesses and help exp
No comments:
Post a Comment