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EX-99.1 2 v075421_ex99-1.txt Access Worldwide Reports First Quarter Financial Results ARLINGTON, Va., May 15 /PRNewswire-FirstCall/ -- Access Worldwide Communications, Inc. (OTC Bulletin Board: AWWC), an established marketing and Business Process Outsourcing ("BPO") services company, today reported financial results for quarter ended March 31, 2007. Our revenues increased by $3.2 million, or 58.2%, to $8.7 million for the quarter ended March 31, 2007, compared to $5.5 million for the quarter ended March 31, 2006. Revenues for our U.S. Segment increased $1.9 million, or 40.4% to $6.6 million for the quarter ended March 31, 2007, compared to $4.7 million for the quarter ended March 31, 2006. The increase was attributed to a one time performance incentive program ran by one of our clients and a 7% increase in production hours produced. Revenues for our International Segment increased $1.4 million, or 175.0% to $2.2 million for the quarter ended March 31, 2007, compared to $0.8 million for the quarter ended March 31, 2006. The increase in revenues is primarily attributed to organic growth. We reported net income from continuing operations of $0.01 million and basic and diluted gain per share of common stock of $0.00 for the quarter ended March 31, 2007, compared to a net loss from continuing operations of ($1.0) million and basic and diluted loss per share of common stock of $(0.05) for the quarter ended March 31, 2006. "We had increased revenues and lower costs of revenues as a percentage of revenues for the quarter, and we also had lower interest expense," commented Richard Lyew, Chief Financial Officer. "We also had positive working capital of $4.0 million and cash and cash equivalents of $3.8 million." Total weighted average diluted shares outstanding for the quarters ended March 31, 2007 and March 31, 2006 were 17,679,065 and 16,889,039, respectively. "We are very pleased with the performance of both our Domestic and International operations during the first quarter," said Shawkat Raslan, Chairman, President and Chief Executive Officer of Access Worldwide. "Our goal continues to be to maximize the utilization of our domestic capacity while expanding our international capacity." Access Worldwide is an established marketing and BPO services company that provides a variety of sales and communication services. Our spectrum of services include the full range of inbound and outbound voice services such as customer service, customer acquisition, helpdesk, and a growing list of IT and back office services, among others. Headquartered in Arlington, Virginia, Access Worldwide has about 1,000 employees in offices throughout the United States and the Philippines. More information is available at www.accessww.com. This press release contains forward-looking statements. Such statements involve known or unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, the following: our ability to continue as a going concern if we are unable to generate cash flow and income from operations; competition from other third-party providers and those clients and prospects who may decide to do work in-house that we currently do for them; potential consumer saturation reducing the need for services; our ability and our clients ability to comply with state, federal and industry regulations; our reliance on a limited number of major clients; the reduction in services performed for or the loss of one or more major clients; our ability to develop or fund the operations of new products or service offerings; our reliance on technology; our reliance on key personnel and labor force and our ability to recruit additional personnel. For a more detailed discussion of these risks and others that could affect results, see our filings with the Securities and Exchange Commission, including the risk factors section of Access Worldwide's Annual Report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission. The Company assumes no duty to update any forward-looking statements. Access Worldwide Communications, Inc. Condensed Consolidated Balance Sheets March 31, 2006 December 31, ASSETS (Unaudited) 2006 Current Assets: Cash and cash equivalents $3,767,082 $2,836,980 Restricted cash 123,000 123,000 Accounts receivable, net of allowance for doubtful accounts of $97,275 and $99,130, respectively 6,030,866 6,956,218 Unbilled receivables - 7,750 Other current assets, net 661,052 831,958 Total current assets 10,582,000 10,755,906 Property and equipment, net 4,122,426 3,374,575 Restricted cash 343,000 343,000 Other assets, net 66,054 386,127 Total assets $15,113,480 $14,859,608 LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT Current Liabilities: Current portion of indebtedness $509,145 $438,866 Current portion of indebtedness - related parties 1,750,000 1,750,000 Accounts payable 1,662,773 1,315,785 Accrued expense 474,146 654,140 Accrued salaries, wages and related benefits 997,063 586,107 Customer deposits 1,105,753 1,210,146 Deferred revenue 133,770 669,290 Total current liabilities 6,632,650 6,624,334 Long-term portion of indebtedness 327,422 259,256 Other long-term liabilities 504,244 530,992 Convertible Notes, net 4,749,963 4,625,490 Mandatorily redeemable preferred stock, $0.01 par value: 1,000,000 shares auth., 40,000 shares issued and outstanding 4,000,000 4,000,000 Total liabilities 16,214,279 16,040,072 Commitments and contingencies Common stockholders' deficit: Common stock, $0.01 par value: voting 40,000,000 shares auth.; 17,679,065 and 17,340,065 shares issued and outstanding, respectively 176,791 173,401 Additional paid-in capital 71,475,293 71,362,793 Accumulated deficit (72,752,883) (72,716,658) Total common stockholders' deficit (1,100,799) (1,180,464) Total liabilities and common stockholders' deficit $15,113,480 $14,859,608 Access Worldwide Communications, Inc. Condensed Consolidated Statements of Operations Unaudited For the Three Months Ending March 31, 2007 2006 Revenues $8,747,688 $5,503,228 Cost and expenses: Cost of services 6,523,738 4,308,940 Selling, general and administrative expenses 1,659,293 1,353,133 Depreciation 287,484 271,577 Total costs and expenses 8,470,515 5,933,650 Income (loss) from operations 277,173 (430,422) Interest expense, net (263,889) (460,839) Income (loss) from continuing operations 13,284 (891,261) Discontinued operations: Loss from discontinued operations (49,509) (279,986) Net loss (36,225) (1,171,247) Basic and diluted income (loss) per share of common stock: Continuing operations $0.00 $(0.05) Discontinued operations $(0.00) $(0.02) Net loss $(0.00) $(0.07) Weighted average common shares outstanding 17,679,065 16,889,039 ACCESS WORLDWIDE COMMUNICATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2007 2006 Cash flows from operating activities: Net income (loss) $13,284 $(891,262) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 287,484 271,577 Amortization of deferred compensation 33,469 24,606 Amortization of deferred financing costs 2,625 2,625 Accretion of discount on Convertible Notes 124,473 186,166 Allowance for doubtful accounts 97,093 1,786 Share based compensation expense 22,050 20,327 Changes in assets and liabilities from discontinued operations (99,710) (336,291) Changes in operating assets and liabilities: Accounts receivable 765,259 (892,830) Other assets 341,709 (189,106) Accounts payable, accrued expenses and other liabilities 280,362 5,383 Accrued salaries, wages and related benefits 415,454 212,269 Accrued interest and related party expenses - 6,082 Deferred revenue and customer deposits (636,112) 36,073 Net cash used in operating activities 1,647,440 (1,542,595) Cash flows from investing activities: Additions to property and equipment, net (771,696) 21,205 Additions to property and equipment from discontinued operations, net - (187,549) Increase in restricted cash - (1,208,000) Net cash (used in) investing activities (771,696) (1,374,344) Cash flows from financing activities: Payments on capital leases (115,210) (67,570) Proceeds from issuance of common stock 4,590 4,410 Proceeds from exercise of common stock options and warrants - 101,250 Net borrowings under Credit Facility and Debt Agreement - 390,411 Loan origination fees - (35,000) Proceeds from issuance of Convertible Notes - 1,500,000 Payments under note payable to related party (13,522) 103,012 Payments on capital leases from discontinued operations - (4,106) Net cash (used in) provided by financing activities (124,142) 1,992,407 Net increase (decrease) in cash and cash equivalents 930,102 (924,532) Cash and cash equivalents, beginning of year 2,836,980 1,755,926 Cash and cash equivalents, end of period $3,767,082 $831,394 Supplemental disclosure of cash flow information: Non-Cash Investing and Financing Activities: Equipment acquisitions through capital leases $267,177 $- Issuance of Warrants on Note $89,250 $- SOURCE Access Worldwide Communications, Inc. -0- 05/15/2007 /CONTACT: Mark Wright, General Counsel, Secretary of Access Worldwide Communications, Inc., +1-703-292-5210, or firstname.lastname@example.org / /Web site: http://www.accessww.com/
The following information was filed by Access Worldwide Communications Inc (AWWC) on Tuesday, May 15, 2007 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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