West Corporation Reports First Quarter 2013 Results And Declares Quarterly Dividend
The Company today also announced a $0.225 per common share quarterly dividend. The dividend is payable May 16, 2013, to shareholders of record as of the close of business on May 6, 2013. "Due to the strength of our underlying businesses, West Corporation generates significant free cash flow. We expect to generate $180-$220 million in free cash flow this year. Our expectation is to return some portion of our free cash flow to shareholders each year through a regular quarterly dividend," said Paul Mendlik, CFO. "We expect to use the remaining free cash flow to reduce leverage and fund acquisitions to accelerate growth. Our goal is to reduce net leverage to less than 4x adjusted EBITDA in less than 24 months through free cash flow generation and EBITDA growth."
Consolidated Operating Results
For the first quarter of 2013, revenue was $660.2 million compared to $639.1 million for the same quarter of the previous year, an increase of 3.3 percent. Revenue from an acquired entity 4 was $20.9 million during the first quarter of 2013. Consolidated revenue growth was impacted by a decline of $11.4 million in agent-based services revenue. The Unified Communications segment had revenue of $367.6 million in the first quarter of 2013, an increase of 2.2 percent over the same quarter of the previous year. The Communication Services segment had revenue of $296.5 million in the first quarter of 2013, 5.2 percent higher than the first quarter of 2012. The growth in Communication Services revenue was primarily driven by the acquisition of HyperCube and 6.2% growth in Emergency Communications (Intrado) revenue. The Company's platform-based businesses 5 had revenue of $481.4 million in the first quarter of 2013, an increase of 7.3 percent over the same quarter of the previous year.Adjusted Operating Income for the first quarter of 2013 was $138.4 million, or 21.0 percent of revenue, compared to $130.3 million, or 20.4 percent of revenue in the same quarter of 2012. Operating Income was $93.3 million in the first quarter of 2013 compared to $114.2 million in the first quarter of 2012. A reconciliation of Adjusted Operating Income to Operating Income is presented on page 10.
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