EX-99.1 2 v084883_ex99-1.htm Unassociated Document
 
Access Worldwide Reports Second Quarter Financial Results
 
ARLINGTON, VA - AugustVa., Aug. 15, 2007 /PRNewswire-FirstCall/ -- Access Worldwide Communications, Inc. (OTC Bulletin Board: AWWC), a Business Process Outsourcing ("BPO") services company, today reported financial results for the three and six months ended June 30, 2007. 

For the Three Months Ended June 30, 2007

Our revenues for the three months ended June 30, 2007 increased $2.4 million, or 38.1%, to $8.7 million, compared to $6.3 million for the three months ended June 30, 2006. Revenues for the U.S. Segment increased $1.1 million, or 20.8%, to $6.4 million for the three months ended June 30, 2007, compared to $5.3 million for the three months ended June 30, 2006. Revenues for the International Segment increased $1.3 million, or 130.0%, to $2.3 million for the three months ended June 30, 2007, compared to $1.0 million for the three months ended June 30, 2006. The increase was attributed to our primary client in the Philippines growing by 250% offset by one of our client's decision to bring its outsourced production hours in house at the beginning of the second quarter. 
 
Our earnings before interest , taxes and depreciation for the three months ended June 30, 2007 increased $0.6 million or 150%, to $0.2 million, compared to $(0.4) for the three months ended June 30, 2006. The increase is primarily attributed to the increased revenues in both of our business segments.
 
We reported a net loss from continuing operations of $(2.8) million, or  $(0.13) loss per share of common stock, for the three months ended June 30, 2007, compared to a net loss from continuing operations of $(1.2) million, or $(0.07) loss per share of common stock, for the three months ended June 30, 2006. The net loss from continuing operations for the three months ended June 30, 2007 includes a non-cash interest expense charge of $2.5 million from the conversion of all of our Convertible Debts to common stock. Total weighted average common shares outstanding for the three months ended June 30, 2007 and June 30, 2006 were 22,129,092 and 17,350,507 respectively.

For the Six Months Ended June 30, 2007

Our revenues for the six months ended June 30, 2007 increased $5.6 million, or 47.5%, to $17.4 million, compared to $11.8 million for the six months ended June 30, 2006. Revenues for the U.S. Segment increased $2.9 million, or 29.0%, to $12.9 million for the six months ended June 30, 2007, compared to $10.0 million for the six months ended June 30, 2006. Revenues for the International Segment increased $2.7 million, or 150.0%, to $4.5 million for the six months ended June 30, 2007, compared to $1.8 million for the six months ended June 30, 2006. 
 
Our earnings before interest , taxes and depreciation for the six months ended June 30, 2007 increased $1.5 million or 214%, to $0.8 million, compared to $(0.7) for the six months ended June 30, 2006. The increase is primarily attributed to the increased revenues in both of our business segments.
 
We reported net loss and loss per share of common stock from continuing operations of $ (2.9) million and $(0.14), respectively, for the six months ended June 30, 2007, compared to net loss and loss per share of common stock of $(2.2) million and $(0.13), respectively, for the six months ended June 30, 2006. The net loss from continuing operations for the six months ended June 30, 2007 includes a non-cash interest expense charge of $2.5 million from the conversion of all of our Convertible Debts to common stock. Total weighted average common shares outstanding for the six months ended June 30, 2007 and June 30, 2006 were 19,904,079 and 17,119,773, respectively.
Inc. (OTC Bulletin Board: AWWC), a Business Process Outsourcing ("BPO") services company, today reported financial results for the three and six months ended June 30, 2007. 

 

 
About Access
 
Access Worldwide Communications, Inc. (OTC Bulletin Board: AWWC - News), is a leading business process outsourcing ("BPO") services company that offers customer management and other BPO services from its offices in the United States and the Philippines. Headquartered in Arlington, Virginia and with approximately 1,000 employees worldwide, Access supports clients in a variety of industries, including financial services, technology, telecommunications, consumer products, healthcare and Media. More information is available at www.accessww.comhttp://www.accessww.com .

 
Important Notice
 
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; our ability to successfully operate our facilities in the Philippines; potential consumer saturation reducing the need for services; our ability and clients' ability to comply with state, federal and industry regulations; our reliance on a limited number of major clients and 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.

Contacts:
Access Worldwide Communications, Inc. 
(703) 292-5210     
Mark Wright      
Investor Relations     
mwright@accessww.com 

- Tables Follow -


Access Worldwide Communications, Inc.
Condensed Consolidated Balance Sheets

ASSETS
 
June 30, 2007
(Unaudited)
 
December 31, 2006
 
Current Assets:
             
Cash and cash equivalents
 
$
1,184,545
 
$
2,836,980
 
Restricted cash
   
123,000
   
123,000
 
Accounts receivable,net of allowance for doubtful accounts of $15,147 and $99,130, respectively
   
7,543,090
   
6,956,218
 
               
Unbilled receivables
   
-
   
7,750
 
Other current assets, net
   
932,232
   
831,958
 
Total current assets
   
9,782,867
   
10,755,906
 
Property and equipment, net
   
4,410,559
   
3,374,575
 
Restricted cash
   
220,000
   
343,000
 
Other assets, net
   
259,323
   
386,127
 
Total assets
 
$
14,672,749
 
$
14,859,608
 
               
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY (DEFICIT)
             
               
Current Liabilities:
             
Current portion of indebtedness
 
$
577,140
 
$
438,866
 
Current portion of indebtedness - related parties
   
1,500,000
   
1,750,000
 
Accounts payable
   
1,901,275
   
1,315,785
 
Accrued expense
   
437,234
   
654,140
 
Accrued salaries, wages and related benefits
   
816,818
   
586,107
 
Customer deposits
   
969,296
   
1,210,146
 
Deferred revenue
   
139,033
   
669,290
 
Total current liabilities
   
6,340,796
   
6,624,334
 
Long-term portion of indebtedness
   
330,224
   
259,256
 
Other long-term liabilities
   
463,022
   
530,992
 
Convertible Notes, net
   
-
   
4,625,490
 
Mandatorily redeemable preferred stock, $0.01 par value:
   
-
   
-
 
1,000,000 shares auth., 40,000 shares issued and out.
   
4,000,000
   
4,000,000
 
Total liabilities
   
11,134,042
   
16,040,072
 
               
Commitments and contingencies
             
               
Common stockholders' equity (deficit):
             
Common stock, $0.01 par value: voting 100,000,000 shares and 40,000,000 shares auth. Respectively; 31,029,146 and 17,340,065 shares issued and outstanding, respectively
   
310,291
   
173,401
 
Additional paid-in capital
   
78,830,159
   
71,362,793
 
Accumulated equity (deficit)
   
(75,601,743
)
 
(72,716,658
)
Total common stockholders' equity (deficit)
   
3,538,707
   
(1,180,464
)
Total liabilities and common stockholders' equity (deficit)
 
$
14,672,749
 
$
14,859,608
 
 

Access Worldwide Communications, Inc.
Condensed Consolidated Statement of Operations
(UNAUDITED)
 

   
For the Three Months Ending
 
For the Six Months Ending
 
   
June 30,
 
June 30,
 
   
2007
 
2006
 
2007
 
2006
 
Revenues
 
$
8,685,033
 
$
6,336,331
 
$
17,432,721
 
$
11,839,559
 
Cost and expenses:
                         
Cost of services
   
6,816,736
   
5,146,866
   
13,340,474
   
9,455,807
 
Selling, general and administrative expenses
   
1,674,149
   
1,617,336
   
3,333,443
   
3,093,903
 
Depreciation Expense
   
380,115
   
267,841
   
667,599
   
541,314
 
Total costs and expenses
   
8,871,000
   
7,032,043
   
17,341,516
   
13,091,024
 
(Loss) income from operations
   
(185,967
)
 
(695,712
)
 
91,205
   
(1,251,465
)
Interest expense, net
   
(2,593,155
)
 
(513,356
)
 
(2,857,044
)
 
(974,196
)
Loss from continuing operations
   
(2,779,122
)
 
(1,209,068
)
 
(2,765,839
)
 
(2,225,661
)
Discontinued operations:
                         
loss from discontinued operations
   
(69,738
)
 
(463,945
)
 
(119,246
)
 
(618,599
)
Net loss
   
(2,848,860
)
 
(1,673,013
)
 
(2,885,085
)
 
(2,844,260
)
Basic and diluted loss per share of common stock:
                         
Continuing operations
 
$
(0.13
)
$
(0.07
)
$
(0.14
)
$
(0.13
)
Discontinued operations
 
$
(0.00
)
$
(0.03
)
$
(0.01
)
$
(0.04
)
Net loss
 
$
(0.13
)
$
(0.10
)
$
(0.15
)
$
(0.17
)
Weighted average common shares outstanding
   
22,129,092
   
17,350,507
   
19,904,079
   
17,119,773
 
 
 

Access Worldwide Communications, Inc.
Consolidated Statement of Cash Flows
(UNAUDITED)
 
   
For the Six Months Ended June 30,
 
   
2007
 
2006
 
Cash flows from operating activites:
         
Net loss
 
$
(2,885,085
)
$
(2,844,260
)
Adjustments to reconcile net loss to net cash used in operating activities:
             
               
Depreciation and amortization
   
667,599
   
541,727
 
Amortization of deferred financing costs
   
117,186
   
56,849
 
Amortization of deferrred compensation
   
5,250
   
5,250
 
Accretion of discount on Convertible Notes
   
1,009,510
   
374,668
 
Interest expense converted to common shares
   
1,647,556
   
-
 
Common stock issued for Board fees
   
82,250
   
-
 
Allowance for doubtful accounts
   
(83,674
)
 
78,518
 
Shares based compensation
   
49,210
   
60,304
 
Changes in assets and liabilities from discontinued oeprations
   
(92,705
)
 
36,831
 
Changes in operating assets and liabilities:
             
Accounts receivable
   
(657,236
)
 
(2,564,396
)
Other assets
   
52,638
   
(321,608
)
Accounts payable and accrued expenses
   
401,366
   
(319,722
)
Accrued salaries, wages and related benefits
   
235,195
   
38,389
 
Accrued interest and related party expenses
   
-
   
1,152
 
Deferred revenue and customer deposits
   
(578,649
)
 
38,538
 
Net cash used in operating activities
   
(29,589
)
 
(4,817,760
)
Cash flows from investing activities:
             
Additions to property and equipment, net
   
(1,461,396
)
 
6,609
 
Additions to property and equipment from discontinued operations, net
   
4,995
   
(187,549
)
Decrease (increase) in restricted cash
   
123,000
   
(368,000
)
Net cash used in investing activities
   
(1,333,401
)
 
(548,940
)
Cash flows from financing activities:
             
Payments on capital leases
   
(44,413
)
 
(166,761
)
Proceeds from issuance of common stock
   
-
   
100,446
 
Proceeds from exercise of common stock options and warrants
   
18,490
   
114,867
 
Net borrowings under Credit Facility and Debt Agreement
   
-
   
631,691
 
Loan origination fees
   
-
   
(140,000
)
Proceeds from issuance of Convertible Notes
   
-
   
1,500,000
 
Proceeds from equipment financing, net
   
(13,522
)
 
53,284
 
Proceeds from note payable from related party's
   
(250,000
)
 
2,000,000
 
Payments on capital leases from discontinued operations
   
-
   
(8,264
)
Net cash (used in) provided by financing activities
   
(289,445
)
 
4,085,263
 
Net decrease in cash and cash equivalents
   
(1,652,435
)
 
(1,281,437
)
Cash and cash equivalents, beginning of period
   
2,836,980
   
1,755,926
 
Cash and cash equivalents, end of period
 
$
1,184,545
 
$
474,489
 
               
Non-Cash Investments and financing activities:
             
Equipment acquisition through capital leases
 
$
267,177
   
-
 
Issuance of warrants on note payable to related party
   
171,750
   
-
 
Conversion of Convertible Notes to common stock
 
$
5,635,000
   
-