<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to ____________
Commission File Number 000-21771
WEST TELESERVICES CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 47-0777362
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation of organization)
9910 Maple Street, Omaha, Nebraska 68134
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (402) 571-7700
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
At May 12, 1998, 63,330,000 shares of Common Stock, par value $.01 per share, of
the registrant were outstanding.
<PAGE>
INDEX
Page No.
PART I. FINANCIAL INFORMATION.....................................3
Item 1. Financial Statements
Consolidated Balance Sheets - March 31, 1998
and December 31, 1997..............................3
Consolidated Statements of Operations -
Three Months Ended March 31, 1998 and 1997.........4
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1998 and 1997............5
Notes to Consolidated Financial Statements............6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...................8
Item 3. Quantitative and Qualitative Disclosure About
Market Risk..........................................11
PART II. OTHER INFORMATION......................................12
Item 1. Legal Proceedings....................................12
Item 6. Exhibits and Reports on Form 8-K.....................12
SIGNATURES........................................................13
2
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
WEST TELESERVICES CORPORATION
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
MARCH 31, DECEMBER 31,
1998 1997
----------- -----------
(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 30,228 $ 39,820
Accounts receivable, net of allowance for
doubtful accounts of $345 and $447 81,731 64,325
Notes receivable 9,626 7,486
Accounts receivable - financing 5,311 4,971
Other 8,462 5,017
----------- -----------
Total current assets 135,358 121,619
PROPERTY AND EQUIPMENT:
Land and improvements 4,888 4,888
Buildings 23,138 23,059
Telephone and computer equipment 103,537 97,021
Office furniture and equipment 19,545 18,730
Leasehold improvements 25,275 24,119
Construction in process 8,485 1,182
----------- -----------
184,868 168,999
Accumulated depreciation and amortization (63,037) (57,289)
----------- -----------
121,831 111,710
GOODWILL, NET OF ACCUMULATED AMORTIZATION
OF $2,274 AND $1,853 48,259 48,680
OTHER ASSETS 160 141
----------- -----------
$ 305,608 $ 285,150
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable - financing $ 800 $ -
Accounts payable 22,632 18,948
Customer deposits and holdbacks 24,068 22,475
Accrued wages and benefits 7,089 8,809
Accrued phone expense 7,636 7,228
Other current liabilities 4,036 3,103
Current maturities of long-term obligations 5,171 5,736
Income tax payable 6,837 -
----------- -----------
Total current liabilities 78,269 66,299
LONG TERM OBLIGATIONS, LESS CURRENT MATURITIES 14,821 15,950
DEFERRED INCOME TAXES 3,746 3,684
OTHER LONG-TERM LIABILITIES 143 -
COMMITMENTS AND CONTINGENCIES (NOTE 2) - -
STOCKHOLDERS' EQUITY
Preferred stock $0.01 par value, 10,000
shares authorized, no shares
issued and outstanding - -
Common stock $0.01 par value, 200,000 shares
authorized, 63,330 shares issued and
outstanding 633 633
Additional paid-in capital 157,647 157,647
Retained earnings 50,349 37,937
----------- -----------
Total stockholders'equity 208,629 196,217
----------- -----------
$ 305,608 $ 282,150
=========== ===========
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
WEST TELESERVICES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
-------------------------------
1998 1997
-------------- ----------------
REVENUE $ 116,075 $ 95,646
COST OF SERVICES 62,734 51,348
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 33,356 26,145
-------------- ----------------
NET OPERATING INCOME 19,985 18,153
OTHER INCOME (EXPENSE):
Interest income 191 389
Interest income - financing, net of interest
expense of $154 and $93 425 380
Interest expense (124) (231)
Other (expense), net (254) (169)
-------------- ----------------
Net other income 238 369
-------------- ----------------
NET INCOME BEFORE INCOME TAX EXPENSE 20,223 18,522
INCOME TAX EXPENSE:
Current income tax expense 7,722 7,138
Deferred income tax expense 89 72
-------------- ----------------
Total income tax expense 7,811 7,210
-------------- ----------------
NET INCOME $ 12,412 $ 11,312
============== ================
EARNINGS PER COMMON SHARE:
Basic $ 0.20 $ 0.18
============== ================
Diluted $ 0.20 $ 0.18
============== ================
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING:
Basic common shares 63,330 63,330
Dilutive impact of potential common
shares from stock options - 65
-------------- ----------------
Diluted common shares 63,330 63,395
============== ================
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
WEST TELESERVICES CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
-------------------------
1998 1997
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 12,412 $ 11,312
Adjustments to reconcile net income to
net cash flows from operating activities:
Depreciation and amortization 6,175 4,425
(Gain) loss on sale of equipment (2) 4
Deferred income tax expense 89 72
Changes in operating assets and liabilities:
Accounts receivable (18,121) (12,703)
Other assets and vendor receivables (4,266) (195)
Accounts payable 3,684 (104)
Other current liabilities and accrued
expenses (236) (1,088)
Income tax payable 7,612 5,598
---------- ----------
Net cash flows from investing activities 7,347 7,321
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment (15,905) (12,084)
Proceeds from disposal of property and
equipment 32 65
Issuance of notes receivable (1,949) (287)
Proceeds from payments of notes receivable 524 168
---------- ----------
Net cash flows from investing activities (17,298) (12,138)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of debt (758) (5,894)
Payments of capital lease obligations (936) (8,395)
Net change in credit facilities - 1,000
Net change in accounts receivable financing
and notes payable financing 460 (38)
Payments for stock registration costs - (22)
Net change in customer deposits and holdbacks 1,593 (3,017)
---------- ----------
Net cash flows from financing activities 359 (16,366)
---------- ----------
NET CHANGE IN CASH AND CASH EQUIVALENTS (9,592) (21,183)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 39,820 55,065
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 30,228 $ 33,882
========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for interest $ 278 $ 396
========== ==========
Cash paid during the period for income taxes $ 116 $ 1,224
========== ==========
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING
ACTIVITIES:
Reduction of accounts receivable through
issuance of notes receivable $ 715 $ 1,114
========== ==========
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
WEST TELESERVICES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF CONSOLIDATION AND PRESENTATION
West TeleServices Corporation and its direct and indirect subsidiaries (West
Telemarketing Corporation, West Interactive Corporation, West Telemarketing
Corporation Outbound, Interactive Billing Services, Inc. and West Interactive
Canada, Inc.) (collectively, the "Company") provide a full range of customized
telecommunications-based services to business clients on an outsourced basis.
The Company is a leading provider in each of inbound operator services,
automated voice response services and outbound direct teleservices through its
call centers throughout the United States. The Company's inbound operator
services consist of live operator call-processing applications such as order
capture, customer service and product support. The Company's automated voice
response services consist of computerized call-processing applications such as
automated product information requests, computerized surveys and polling and
secure automated credit card activation. The Company's outbound direct
teleservices consist of live operator direct marketing applications such as
product sales and customer acquisition and retention campaigns. All significant
intercompany balances and transactions have been eliminated.
The accompanying unaudited consolidated financial statements reflect all
normal and recurring adjustments which are, in the opinion of management,
necessary for a fair presentation of the financial position, operating results,
and cash flows for the interim periods. The consolidated financial statements
should be read in conjunction with the consolidated financial statements and
notes thereto, together with management's discussion and analysis of financial
condition and results of operations, contained in the Company's Form 10-K for
the year ended December 31, 1997.
Certain amounts in prior fiscal periods have been reclassified for
comparative purposes.
2. COMMITMENTS AND CONTINGENCIES
From time to time, the Company is subject to lawsuits and claims which arise
out of its operations in the normal course of its business. The Company and
certain of its subsidiaries are defendants in various litigation matters in the
ordinary course of business, some of which involve claims for damages that are
substantial in amount. The Company believes, except for the items discussed
below and in its Form 10-K for the year ended December 31, 1997, for which the
Company is currently unable to predict the outcome, the disposition of claims
currently pending will not have a material adverse effect on the Company's
financial position or results of operations.
6
<PAGE>
WEST TELESERVICES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
On July 28, 1997, Schurman, Bowers, et al, individually and on behalf of a
class of all other persons similarly situated v. Horry Telephone Cooperative,
Inc., AT&T Corp., AT&T Communications, Inc., AT&T Communications of the Southern
States, Inc., and West Telemarketing Outbound Corporation (Civil Action No.
4:97-2635-12) was filed in the Court of Common Pleas in Horry, South Carolina
and then removed by the defendants to the United States District Court for the
District of South Carolina. Plaintiffs allege, among other things, claims of
negligent misrepresentation, fraud, breach of contract and statutory violations
in connection with offers of rate programs and long distance services to the
plaintiffs. Plaintiffs seek monetary damages, punitive damages, attorney's
fees, costs and injunctive relief. At a hearing held on February 23, 1998, the
federal judge ruled that all but two of the plaintiff's federal law causes of
action were barred by the filed tariff doctrine. He noted that the two
remaining causes of action appeared to state claims under the Federal
Communications Act, but that it was unclear whether they did so. Accordingly,
he gave the plaintiffs 60 days to replead those causes of action with
specificity. By agreement of counsel, the date for filing the amended petition
was continued until May 22, 1998. The court stayed all discovery and all action
on the state law claims while the federal claims are pending. The two remaining
federal claims, as currently plead, state claims only against AT&T Corp., AT&T
Communications, Inc. and AT&T Communications of the Southern States, Inc. The
Company will still be involved in the state law claims, which are stayed at his
time.
3. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
On January 1, 1998, the Company adopted Statement of Accounting Standards No.
131, Disclosures About Segments of an Enterprise and Related Information (SFAS
No. 131). SFAS No. 131 established presentation of financial data based on the
"management approach". The adoption of SFAS No. 131 did not effect the
Company's reporting or its disclosures to its consolidated financial statements.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion and analysis of the Company's financial condition and
results of operations should be read in conjunction with the Consolidated
Financial Statements and the Notes thereto. Certain statements under this
caption constitute forward-looking statements which involve risks and
uncertainties. The Company's actual results in the future could differ
significantly from the results discussed or implied in such forward-looking
statements. Factors that could cause or contribute to such differences include,
but are not limited to, the effect on financial performance of increased
competition in the teleservices industry, potential future competition,
competitive pricing for services, potential future competing technologies and
trends, dependence on technology and phone service, dependence on the Company's
labor force, reliance on major clients, the success of new product innovations,
legal proceedings and government regulation.
RESULTS OF OPERATIONS
COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
REVENUE: For the three months ended March 31, 1998, revenues increased
$20.5 million, or 21.4%, to $116.1 million up from $95.6 million for the three
months ended March 31, 1997. For the three months ending March 31, 1998,
inbound operator teleservices accounted for $46.0 million of revenue,
interactive teleservices accounted for $31.9 million, and outbound direct
teleservices accounted for $38.2 million. In the first quarter of 1998, revenue
from inbound operator teleservices increased approximately $14.2 million to
$46.0 million. Revenue from interactive teleservices decreased approximately
$2.8 million to $31.9 million. Revenue from outbound direct teleservices
increased approximately $9.0 million to $38.2 million. During 1997 and 1998,
interactive teleservices transferred calls to a live agent at inbound operator
teleservices to complete a service that began on interactive teleservices voice
response units. Inbound operator teleservices billed interactive teleservices
for the live operator portion of the call and interactive teleservices billed
the entire service provided by both divisions. Consequently, a portion of
interactive teleservices revenue reported on the Company's reports on Form 10-Q
in 1997 represented services delivered by inbound operator teleservices. Since
management feels that it is more appropriate to include the revenue in the
division that provided the services rather than where the revenue is invoiced to
the client, the Company reallocated revenue for 1997 as described in its Form
10-K for the year ended December 31, 1997. All of the revenue information
contained herein reflects such reallocation. The increases in inbound operator
teleservices and outbound direct teleservices are primarily the result of
servicing the growing needs of the Company's clients. The decrease in
interactive teleservices is a result of the reduction in 900 pay per call volume
in the first quarter 1998 compared to the first quarter of 1997.
COST OF SERVICES: Cost of services represents direct labor, telephone
expense and other costs directly related to teleservices activities. Costs of
services increased $11.4 million, or 22.2%, in the first quarter of 1998 to
$62.7 million up from $51.3 million for the comparable period of 1997. As a
percentage of revenue, cost of services was 54.1% for the first quarter of 1998
compared to 53.7% for the comparable period in 1997. The consistency of cost of
services as a percentage of revenue can be attributed to the Company's ability
to continue to hire cost effective quality labor as it enters new markets
through the addition of call centers.
SELLING, GENERAL AND ADMINISTRATIVE ("SG&A") EXPENSES: SG&A expenses
increased by $7.2 million, or 27.6%, to $33.3 million for the first quarter of
1998 up from $26.1 million for the comparable period of 1997. As a percentage of
revenue, SG&A expenses increased to 28.7% for the first quarter of 1998 compared
to approximately 27.3% for the comparable period of 1997. The increase is
primarily due to increased depreciation expense and other costs associated with
call center expansion.
8
<PAGE>
NET OPERATING INCOME: Net operating income increased by $1.8 million, or
10.1%, to $20.0 million in the first quarter of 1998 up from $18.2 million in
the first quarter of 1997. As a percentage of revenue, net operating income
decreased to approximately 17.2% for the first quarter of 1998 compared to 19.0%
for the corresponding period of 1997 due to the factors discussed above for
Revenue, Cost of services and SG&A expenses.
NET OTHER INCOME (EXPENSE): Net other income (expense) includes interest
income from short-term investments, interest income from an accounts receivable
financing program (net of the related interest expense to fund the program) and
interest expense from short-term and long-term borrowings under credit
facilities, a real estate mortgage and capital leases. Net other income for the
first quarter of 1998 totaled $238,000 compared to $369,000 for the first
quarter of 1997. The reduction in net other income is primarily due to reduced
interest income as a result of lower cash balances during the first quarter of
1998 compared to the first quarter 1997.
NET INCOME: Net income increased by $1.1 million, or 9.7%, for the first
quarter of 1998, to $12.4 million from net income of $11.3 million for the first
quarter of 1997. Net income includes a provision for income tax expense at an
effective rate of approximately 38.6% for the three months ended March 31, 1998
and approximately 38.9% for the comparable period of 1997.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary source of liquidity has been cash flow from operations,
supplemented by borrowings under its revolving bank lines of credit.
The Company has a $10.0 million unsecured revolving credit facility. Advances
under the revolving credit facility bear interest at the prime rate less 1.0%.
The revolving credit facility expires on July 31, 1999. There were no
outstanding borrowings under this facility at March 31, 1998. The Company's
credit facility contains certain financial covenants and restrictions, which
were met at March 31, 1998. The Company expects to renew the unsecured
revolving credit facility and believes it could increase the amount of the
facility, if needed.
The Company also has a $20.0 million revolving bank line used to fund an
accounts receivable financing program offered to certain customers in the pay
per call industry. Borrowings under the facility are limited to a borrowing base
of pledged accounts receivable from certain of the Company's qualified customers
which were assigned by the Company to the bank. There was $800,000 outstanding
under this facility at March 31, 1998. The credit facility expires on June 30,
1998. The Company expects to renew the unsecured revolving credit facility and
believes it could increase the amount of the facility, if needed.
Net cash flow from operating activities was $7.3 million for the three months
ended March 31, 1998 and 1997.
Net cash flow used in investing activities was $17.3 million for the three
months ended March 31, 1998, compared to $12.1 million for the comparable period
of 1997. The increase was primarily due to investments in call centers to
support the growth of the Company's businesses.
Net cash flow from financing activities was $359,000 for the three months
ended March 31, 1998 compared to net cash flow used in financing activities of
$16.4 million for the comparable period of 1997. In the three months ended March
31, 1998, net cash flow from financing activities was obtained from increased
customer holdbacks and deposits and borrowings from credit facilities partially
offset by payments of debt and capital lease obligations. The net cash flow
used in financing activities for the three months ended March 31, 1997, was
primarily used to pay $14.3 million in debt and capital lease obligations with
the remaining proceeds from the initial public offering.
9
<PAGE>
CAPITAL EXPENDITURES
The Company's operations will continue to require significant capital
expenditures for capacity expansion and upgrades. Capital expenditures were
$15.9 million for the three months ended March 31, 1998. Capital expenditures
for the first quarter of 1998 consisted primarily of equipment purchases. The
Company projects its capital expenditures for the remainder of 1998 to be
approximately $24 million to $29 million, primarily for capacity expansion and
upgrades at existing facilities and the addition of five new call centers.
The Company believes cash flow from operations, together with existing cash
and cash equivalents, financing through capital or operating leases, and
available borrowings under its credit facilities will be adequate to meet its
capital requirements for the foreseeable future. The Company may pledge
additional property or assets of the Company or any of its subsidiaries, which
are not already pledged as collateral securing existing credit facilities. The
Company or any of its affiliates may be required to guarantee any existing or
additional credit facilities.
IMPACT OF THE YEAR 2000 ISSUE
The Year 2000 Issue is the result of computer programs being written using
two digits rather than four to define the applicable year. Any of the Company's
computer programs that have date-sensitive software may recognize a date using
"00" as the year 1900 rather than the year 2000. This could result in system
failure or miscalculations causing disruptions of operations, including, among
other things, a temporary inability to process transactions, send invoices, or
engage in similar normal business activities.
Based on a recent assessment, the Company determined that it will be required
to modify or replace significant portions of its software so that its computer
systems will properly utilize dates beyond December 31, 1999. The Company
presently believes that modifications to existing software and conversions to
new hardware and software can mitigate the impact of the Year 2000 Issue.
However, if such modifications and conversions are not completed on a timely
basis, the Year 2000 Issue could have a material adverse impact on the
operations of the Company.
The Company is in the process of initiating formal communications with all of
its significant suppliers and large customers to determine the extent to which
the Company is vulnerable to those third parties' failure to remediate their own
Year 2000 Issue, and the Company's current assessments are based on presently
available information. However, there can be no guarantee that the systems of
other companies on which the Company's systems rely will be timely converted, or
that a failure to convert by another company, or a conversion that is
incompatible with the Company's systems, would not have material adverse effect
on the Company.
The Company will utilize both internal and external resources to reprogram,
or replace, and test the software for Year 2000 modifications. The Company
plans to complete the Year 2000 project in the next 18 months, if not sooner.
The total remaining cost of the Year 2000 project is estimated at $4.8 million
and is being funded through operating cash flows. Of the total projected cost,
approximately $1.4 million is attributable to the purchase of new software and
hardware which will be capitalized. The remaining $3.4 million, which will be
expensed as incurred over the next 18 months, is not expected to have a material
effect on the results of operations.
10
<PAGE>
The costs of the project and the date on which the Company plans to complete
the Year 2000 modifications and conversions are based on management's best
estimates, which were derived utilizing numerous assumptions of future events
including the continued availability of certain resources, third party
modification plans and other factors. However, there can be no guarantee that
these estimates will be achieved and actual results could differ materially from
those plans. Specific factors that might cause such material differences
include, but are not limited to, the availability and cost of personnel trained
in this area, the ability to locate and correct all relevant computer codes,
failure of third parties on which the Company relies and similar uncertainties.
INFLATION
The Company does not believe that inflation has had a material effect on its
results of operations. However, there can be no assurance that the Company's
business will not be affected by inflation in the future.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not Applicable.
11
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, the Company is subject to lawsuits and claims which arise
out of its operations in the normal course of its business. The Company and
certain of its subsidiaries are defendants in various litigation matters in the
ordinary course of business, some of which involve claims for damages that are
substantial in amount. The Company believes, except for the items discussed
below and in its Form 10-K for the year ended December 31, 1997, for which the
Company is currently unable to predict the outcome, the disposition of claims
currently pending will not have a material adverse effect on the Company's
financial position or results of operations.
On July 28, 1997, Schurman, Bowers, et al, individually and on behalf of a
class of all other persons similarly situated v. Horry Telephone Cooperative,
Inc., AT&T Corp., AT&T Communications, Inc., AT&T Communications of the Southern
States, Inc., and West Telemarketing Outbound Corporation (Civil Action No.
4:97-2635-12) was filed in the Court of Common Pleas in Horry, South Carolina
and then removed by the defendants to the United States District Court for the
District of South Carolina. Plaintiffs allege, among other things, claims of
negligent misrepresentation, fraud, breach of contract and statutory violations
in connection with offers of rate programs and long distance services to the
plaintiffs. Plaintiffs seek monetary damages, punitive damages, attorney's
fees, costs and injunctive relief. At a hearing held on February 23, 1998, the
federal judge ruled that all but two of the plaintiff's federal law causes of
action were barred by the filed tariff doctrine. He noted that the two
remaining causes of action appeared to state claims under the Federal
Communications Act, but that it was unclear whether they did so. Accordingly,
he gave the plaintiffs 60 days to replead those causes of action with
specificity. By agreement of counsel, the date for filing the amended petition
was continued until May 22, 1998. The court stayed all discovery and all action
on the state law claims while the federal claims are pending. The two remaining
federal claims, as currently plead, state claims only against AT&T Corp., AT&T
Communications, Inc. and AT&T Communications of the Southern States, Inc. The
Company will still be involved in the state law claims, which are stayed at his
time.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.01 Financial Data Schedule.
(b) Reports on Form 8-K
None.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 12, 1998
WEST TELESERVICES CORPORATION
By: /s/ Troy L. Eaden
----------------------------------
Troy L. Eaden
Chief Executive Officer
By: /s/ Michael A. Micek
----------------------------------
Michael A. Micek
Chief Financial Officer,
Executive Vice President - Finance and
Treasurer
13
<PAGE>
INDEX TO EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
SEQUENTIAL
EXHIBIT PAGE
NUMBER DESCRIPTION NUMBER
- ------ ----------- ------
27.01 Financial Data Schedule
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FIRST
QUARTER 1998 FORM 10-Q OF WEST TELESERVICES CORPORATION, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO THE FINANCIAL STATEMENTS CONTAINED THEREIN.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 30,228
<SECURITIES> 0
<RECEIVABLES> 82,085
<ALLOWANCES> 354
<INVENTORY> 0
<CURRENT-ASSETS> 135,358
<PP&E> 184,868
<DEPRECIATION> 63,037
<TOTAL-ASSETS> 305,608
<CURRENT-LIABILITIES> 78,269
<BONDS> 0
0
0
<COMMON> 633
<OTHER-SE> 207,996
<TOTAL-LIABILITY-AND-EQUITY> 305,608
<SALES> 116,075
<TOTAL-REVENUES> 116,075
<CGS> 62,734
<TOTAL-COSTS> 96,090
<OTHER-EXPENSES> 254
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 278
<INCOME-PRETAX> 20,223
<INCOME-TAX> 7,811
<INCOME-CONTINUING> 12,412
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,412
<EPS-PRIMARY> 0.20
<EPS-DILUTED> 0.20
</TABLE>
