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Nov. 4, 2014 10:04 PM ET | About: West Corporation (WSTC) by: SA Transcripts
Prasad Borra - Goldman Sachs
Good morning, ladies and gentlemen, and welcome to West Corporation's Third Quarter schepijsvitrine 2014 Earnings Conference Call. At this time, all participants are in a listen-only schepijsvitrine mode. Later we will conduct a question-and-answer session with instructions following at that time. (Operator Instructions) As a reminder schepijsvitrine ladies and gentlemen, this conference is being recorded.
Good morning and thank you for joining us to discuss West Corporation's third quarter 2014 earnings schepijsvitrine results. If you have not received 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 Mendlik, our Chief Financial schepijsvitrine Officer. They will discuss 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 schepijsvitrine and assumptions that may cause actual results to differ materially from those anticipated or projected. Listeners to the call 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 schepijsvitrine to the most comparable GAAP financial measures can be found in the press release or on our website.
The results that we reported last night in the third quarter were inline with our internal projections and we remain on track to deliver full year 2014 results within the range as we provided schepijsvitrine with our second quarter schepijsvitrine release.
Consolidated revenue for the quarter was $713.2 million. This is an increase of 7.2% over the third quarter of last year. Revenue from our SchoolMessenger, Health Advocate and 911 Enable acquisitions, contributed $30.3 million in the third quarter. Excluding acquisitions, our organic growth rate for the quarter schepijsvitrine was 2.6%.
In schepijsvitrine early September, we closed on the acquisition of 911 Enable. This acquisition will help move Intrado, our Public Safety and Services Organization further into the enterprise market. schepijsvitrine As enterprises continue to rapidly adapt IP based PBX systems, locating schepijsvitrine end-users and properly delivering the 911 calls from those systems becomes increasingly difficult.
911 Enable has location management expertise to address these complexities. We see this as a market that's largely untapped with approximately 50% of our enterprise end points without full 911 routing services.
18 states have regulation requiring detailed information on 911 calls, when the call originates from multi line telephone system such as an enterprise campus environment, operating an IP or PBX. So we're excited about the possibilities and their contributions that 911 Enable can contribute to West Corporation. schepijsvitrine
In last night's press release, we announced the acquisition of SchoolReach, a provider of alerts notifications to K to 12 education market. SchoolReach schepijsvitrine will be combined with our SchoolMessenger business. SchoolReach has a focus on smaller public school districts and private schools, which is a nice compliment to SchoolMessengers emphasis on large school districts.
We also expect to realize significant synergies over the next two years which will give this business EBITDA margins over those than we report on a consolidated basis. These two acquisitions and the two announced earlier of this year, are indicative of the strategic opportunities that we've been able to find that help expand the breathe of our product offerings and our customer base and create new revenue streams schepijsvitrine for West Corporation.
Turning quickly schepijsvitrine to our capital structures, we mentioned on last quarter's call, we closed on a new $1 billion senior notes issuance with interest rate of 5.375%. In July, we used the portion to proceeds of this offering to redeem all of our 8.625% senior notes, and a portion of our 7.875% senior notes, schepijsvitrine and we paid $250 million of our term debt.
Last month, we delivered schepijsvitrine a notice to redeem the remaining 7.78 notes, the redemption date is November 15, 2014. These transactions will help to meaningfully reduce our cash interest schepijsvitrine expense, schepijsvitrine resulting in bottom line growth and more capital available for our capital allocation priorities.
We previously mentioned a nice growth we're seeing in our West IP business. In September, Gartner released its annual Magic Quadrant report, the Unified Communications as a service. For the third consecutive year, Gartner's placed West Corporation in the Leaders Quadrant.
This schepijsvitrine achievement highlights Wes
Nov. 4, 2014 10:04 PM ET | About: West Corporation (WSTC) by: SA Transcripts
Prasad Borra - Goldman Sachs
Good morning, ladies and gentlemen, and welcome to West Corporation's Third Quarter schepijsvitrine 2014 Earnings Conference Call. At this time, all participants are in a listen-only schepijsvitrine mode. Later we will conduct a question-and-answer session with instructions following at that time. (Operator Instructions) As a reminder schepijsvitrine ladies and gentlemen, this conference is being recorded.
Good morning and thank you for joining us to discuss West Corporation's third quarter 2014 earnings schepijsvitrine results. If you have not received 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 Mendlik, our Chief Financial schepijsvitrine Officer. They will discuss 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 schepijsvitrine and assumptions that may cause actual results to differ materially from those anticipated or projected. Listeners to the call 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 schepijsvitrine to the most comparable GAAP financial measures can be found in the press release or on our website.
The results that we reported last night in the third quarter were inline with our internal projections and we remain on track to deliver full year 2014 results within the range as we provided schepijsvitrine with our second quarter schepijsvitrine release.
Consolidated revenue for the quarter was $713.2 million. This is an increase of 7.2% over the third quarter of last year. Revenue from our SchoolMessenger, Health Advocate and 911 Enable acquisitions, contributed $30.3 million in the third quarter. Excluding acquisitions, our organic growth rate for the quarter schepijsvitrine was 2.6%.
In schepijsvitrine early September, we closed on the acquisition of 911 Enable. This acquisition will help move Intrado, our Public Safety and Services Organization further into the enterprise market. schepijsvitrine As enterprises continue to rapidly adapt IP based PBX systems, locating schepijsvitrine end-users and properly delivering the 911 calls from those systems becomes increasingly difficult.
911 Enable has location management expertise to address these complexities. We see this as a market that's largely untapped with approximately 50% of our enterprise end points without full 911 routing services.
18 states have regulation requiring detailed information on 911 calls, when the call originates from multi line telephone system such as an enterprise campus environment, operating an IP or PBX. So we're excited about the possibilities and their contributions that 911 Enable can contribute to West Corporation. schepijsvitrine
In last night's press release, we announced the acquisition of SchoolReach, a provider of alerts notifications to K to 12 education market. SchoolReach schepijsvitrine will be combined with our SchoolMessenger business. SchoolReach has a focus on smaller public school districts and private schools, which is a nice compliment to SchoolMessengers emphasis on large school districts.
We also expect to realize significant synergies over the next two years which will give this business EBITDA margins over those than we report on a consolidated basis. These two acquisitions and the two announced earlier of this year, are indicative of the strategic opportunities that we've been able to find that help expand the breathe of our product offerings and our customer base and create new revenue streams schepijsvitrine for West Corporation.
Turning quickly schepijsvitrine to our capital structures, we mentioned on last quarter's call, we closed on a new $1 billion senior notes issuance with interest rate of 5.375%. In July, we used the portion to proceeds of this offering to redeem all of our 8.625% senior notes, and a portion of our 7.875% senior notes, schepijsvitrine and we paid $250 million of our term debt.
Last month, we delivered schepijsvitrine a notice to redeem the remaining 7.78 notes, the redemption date is November 15, 2014. These transactions will help to meaningfully reduce our cash interest schepijsvitrine expense, schepijsvitrine resulting in bottom line growth and more capital available for our capital allocation priorities.
We previously mentioned a nice growth we're seeing in our West IP business. In September, Gartner released its annual Magic Quadrant report, the Unified Communications as a service. For the third consecutive year, Gartner's placed West Corporation in the Leaders Quadrant.
This schepijsvitrine achievement highlights Wes
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