SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 ending September 30, 1998
|_| 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 0-23489
ACCESS WORLDWIDE COMMUNICATIONS, INC.
------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 52-1309227
-------- ----------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
2200 Clarendon Blvd., 11th Floor
Arlington, Virginia 22201
------------------- -----
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code 1 (800) 522-3447
Securities registered pursuant to Section 12(b) of the Act:
Title of each class. Name of each exchange on which registered.
None
----
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.01 par value
-----------------------------
TITLE OF CLASS
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 as 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 |_|
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
8,965,685 shares of Common Stock, $.01 par value, as of November 12, 1998
<PAGE>
ACCESS WORLDWIDE COMMUNICATIONS, INC.
INDEX
Part I - Financial Information
Item 1. Financial Statements 1-4
Consolidated and Combined Balance Sheets -
September 30, 1998 and December 31, 1997 1
Consolidated and Combined Statements of Operations -
Three Months Ended September 30, 1998 and September 30, 1997
Nine Months Ended September 30, 1998 and September 30, 1997 2
Consolidated and Combined Statements of Cash Flows -
Nine Months Ended September 30, 1998 and September 30, 1997 3
Notes to Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Part II - Other Information 5-7
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ACCESS WORLDWIDE COMMUNICATIONS, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
COMBINED
ACCESS WORLDWIDE
CONSOLIDATED COMMUNICATIONS, INC.
ACCESS WORLDWIDE & TLM HOLDINGS
COMMUNICATIONS, INC. CORP.
SEPTEMBER 30, DECEMBER 31,
1998 1997
(UNAUDITED) (AUDITED)
-------------- ------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ......................... $ 1,604,041 $ 2,014,711
Accounts receivable, net of allowance for
doubtful accounts of $140,027 and $279,935,
respectively .................................... 13,636,502 8,077,462
Deferred issuance costs ........................... -- 1,350,594
Other assets ...................................... 1,837,130 941,686
------------ ------------
Total current assets ............................ 17,077,673 12,384,453
Property and equipment, net ....................... 7,465,633 4,171,806
Other assets ...................................... 636,572 265,110
Intangible assets, net ............................ 35,786,382 35,858,750
------------ ------------
Total assets .................................... $60,966,260 $ 52,680,119
============ ============
LIABILITIES, MANDATORILY REDEEMABLE PREFERRED
STOCK AND COMMON STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Amount due on line of credit facility ............. $ -- $ 5,810,000
Accounts payable and accrued expenses ............. 3,324,554 2,831,463
Accrued interest and other related party expenses . 847,335 2,974,661
Accrued salaries, wages and related benefits ...... 2,397,073 1,308,446
Due to related parties ............................ 149,040 471,925
Deferred revenue .................................. 705,834 666,082
Current portion of indebtedness ................... 74,341 69,940
Current portion of indebtedness -- related parties 598,536 3,203,819
------------ ------------
Total current liabilities ....................... 8,096,713 17,336,336
Amount due on line of credit facility ............... 1,780,000 --
Long-term portion of indebtedness ................... 29,744 80,013
Long-term portion of indebtedness -- related parties 598,085 34,238,666
Mandatorily redeemable preferred stock, $.01 par
value: 8% cumulative at December 31, 1997,
2,000,000 shares authorized, 65,000 shares
and 36,000 shares issued and outstanding at
September 30, 1998 and December 31, 1997,
respectively ...................................... 6,554,444 3,888,000
------------- ------------
Total liabilities and mandatorily
redeemable preferred stock ..................... 17,058,986 55,543,015
------------- ------------
Common stockholders' equity (deficit):
Common stock, $.01 par value: voting: 20,000,000
shares authorized; 9,043,185 and 4,264,000
shares issued at September 30, 1998 and December
31, 1997, respectively; 8,965,685 and 4,261,500
shares outstanding at September 30, 1998 and
December 31, 1997, respectively ................. 90,432 42,640
Common stock, $.01 par value: non-voting:
500,000 shares authorized, issued and
outstanding at December 31, 1997 ................ -- 5,000
Additional paid-in capital ........................ 58,540,888 14,013,092
Accumulated deficit ............................... (14,355,382) (16,913,595)
Less: cost of treasury stock, 77,500 and 2,500
shares, respectively ............................ (362,643) (143)
Deferred compensation ............................. (6,021) (9,890)
------------ ------------
Total common stockholders' equity (deficit) ..... 43,907,274 (2,862,896)
------------ ------------
Total liabilities, mandatorily redeemable
preferred stock and common stockholders'
equity (deficit) .............................. $ 60,966,260 $ 52,680,119
============ ============
</TABLE>
1
<PAGE>
ACCESS WORLDWIDE COMMUNICATIONS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
COMBINED COMBINED
ACCESS WORLDWIDE ACCESS WORLDWIDE
CONSOLIDATED COMMUNICATIONS, INC. CONSOLIDATED COMMUNICATIONS, INC.
ACCESS WORLDWIDE & TLM HOLDINGS ACCESS WORLDWIDE & TLM HOLDINGS
COMMUNICATIONS, INC. CORP. COMMUNICATIONS, INC. CORP.
------------------------------------ -------------------------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
-------------------------------------- -----------------------------------------
SEPTEMBER 30, 1998 SEPTEMBER 30, 1997 SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Revenues ................................... $ 16,380,945 $ 9,013,422 $ 47,397,255 $ 24,038,772
Cost of revenues (exclusive of
depreciation) ............................ 8,652,020 5,605,187 26,252,491 14,435,838
------------ ------------ ------------ ------------
Gross profit ............................. 7,728,925 3,408,235 21,144,764 9,602,934
Selling, general and adminis-
trative expenses (selling,
general and administrative
expenses paid to related parties
are $237,256 and $93,540 and $732,596
and $241,137, respectively) .............. 5,551,300 2,028,661 15,033,706 5,329,893
Amortization expense ....................... 367,704 191,200 1,077,161 547,140
------------ ------------ ------------ ------------
Income from operations ................... 1,809,921 1,188,374 5,033,897 3,725,901
Interest income (expense) .................. 4,820 (1,389) 62,570 35,885
Interest income (expense)-related parties .. 111,844 (392,270) (528,229) (1,514,123)
Other expense-related party ................ -- -- -- (301,841)
Other income (expense)...................... -- 153,259 -- (549)
------------ ------------ ------------ ------------
Income before income
taxes .................................. 1,926,585 947,974 4,568,238 1,945,273
Income tax expense ......................... 845,151 446,907 2,010,025 940,916
------------ ------------ ------------ ------------
Net income ............................... $ 1,081,434 $ 501,067 $ 2,558,213 $ 1,004,357
============ ============ ============ ============
Earnings per share of
common stock
basic .................................... $ 0.12 $ 0.11 $ 0.30 $ 0.21
============ ============ ============ ============
diluted .................................. $ 0.12 $ 0.10 $ 0.30 $ 0.21
============ ============ ============ ============
</TABLE>
2
<PAGE>
ACCESS WORLDWIDE COMMUNICATIONS, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
<TABLE>
<CAPTION>
COMBINED
ACCESS WORLDWIDE
CONSOLIDATED COMMUNICATIONS, INC.
ACCESS WORLDWIDE & TLM HOLDINGS
COMMUNICATIONS, INC. CORP.
1998 1997
-------------- --------------------
<S> <C> <C>
Cash flows from operating activities:
Net income ............................................... $ 2,558,213 $ 1,004,357
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization ........................... 2,046,331 830,570
Interest expense on mandatorily redeemable
preferred stock ....................................... 96,001 216,000
Changes in operating assets and liabilities,
excluding effects from acquisitions:
Accounts receivable ..................................... (5,695,468) (4,218,799)
Due to related parties and affiliates ................... (297,329) 49,095
Other assets ............................................ (1,388,257) (355,719)
Accounts payable and accrued expenses ................... (334,572) 1,565,957
Accrued interest and related party expenses ............. (1,866,233) 899,517
Accrued salaries, wages and related benefits ............ 1,087,239 222,826
Deferred revenue ........................................ 174,983 307,716
------------ ------------
Net cash (used in) provided by
operating activities ................................. (3,619,092) 521,520
------------ ------------
Cash flows from investing activities:
Additions to property and equipment, net ................. (4,185,386) (756,033)
Use of letter of credit .................................. -- 15,000,000
Business acquisitions, net of cash
acquired ................................................ (726,241) (6,491,133)
------------ ------------
Net cash (used in) provided by investing activities .... (4,911,627) 7,752,834
------------ ------------
Cash flows from financing activities:
Change in other assets related to deferred
issuance costs........................................... (1,919,328) --
Treasury stock purchases.................................. (362,500) (143)
Issuance of common stock.................................. 695,050 --
Payments on capital lease ................................ (54,536) (219,165)
Proceeds from notes payable - related
party ................................................... 5,500,000 1,150,000
Proceeds from sale of common and preferred
stock ................................................... 44,640,000 1,999,500
Borrowings under line of credit facility ................. 1,970,000 5,660,000
Repayments under line of credit facility ................. (6,000,000) (250,000)
Repayment of related party debt .......................... (36,348,637) (15,097,215)
------------ ------------
Net cash provided by (used in) financing
activities............................................ 8,120,049 (6,757,023)
------------ ------------
Net (decrease) increase in cash ........................ (410,670) 1,517,331
Cash and cash equivalents, beginning of
period .................................................. 2,014,711 300,387
------------ ------------
Cash and cash equivalents, end of period ................. $ 1,604,041 $ 1,817,718
============ ============
</TABLE>
3
<PAGE>
ACCESS WORLDWIDE COMMUNICATIONS, INC. AND TLM HOLDINGS CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and pursuant to the rules and regulations of the Securities and Exchange
Commission ("SEC"). Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. For further information, refer to the financial statements
and footnotes included in the Company's Annual Report on Form 10-K.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts included in the financial statements. In the opinion of
management, all adjustments necessary for a fair presentation of this interim
financial information have been included. Such adjustments consisted only of
normal recurring items. The results of operations for the nine months ended
September 30, 1998 are not necessarily indicative of the results to be expected
for the year ending December 31, 1998.
2. INCOME TAXES
The Company's effective tax rate of 44% in the first three quarters of 1998
differs from the Federal Statutory rate due primarily to state income taxes,
non-deductible goodwill amortization, and non-deductible preferred stock
dividends.
3. EARNINGS PER COMMON SHARE
Earnings per common share are calculated as follows:
<TABLE>
<CAPTION>
For the Three Months Ended
------------------------------------
September 30, 1998 September 30, 1997
------------------------------------ ---------------------------------------
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
--------- --------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Basic ................................. $1,081,434 9,015,685 $ 0.12 $ 501,067 4,763,167 $ 0.11
Effect of dilutive securities:
Stock options ..................... -- 37,346 -- -- 33,902 --
Earnout contingency ............... -- 55,422 -- -- 11,542 --
---------- --------- -------- --------- --------- --------
Earnings per share of common
stock - dilutive .................. $1,081,434 9,108,453 $ 0.12 $ 501,067 4,808,611 $ 0.10
========== ========= ======== ========= ========= ========
For the Nine Months Ended
------------------------------------
September 30, 1998 September 30, 1997
------------------------------------ ---------------------------------------
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
--------- --------- -------- --------- --------- --------
Basic $2,558,213 8,517,525 $ .30 $1,004,357 4,687,056 $ .21
Effect of dilutive securities
Stock options...................... -- 76,308 -- -- 154,431 --
Earnout contingency ............... -- 60,854 -- -- 3,847 --
---------- ---------- ------- --------- ---------- --------
Earnings per share of common
stock - dilutive .................. $2,558,213 8,654,687 $ .30 $1,004,357 4,845,334 $ .21
========== ========== ======= ========== ========== ========
</TABLE>
4. COMMON STOCK
During the third quarter, the Company repurchased 75,000 shares of its common
stock for $362,500. The Company also issued 70,851 shares of its common stock as
a part of a 1997 purchase agreement whereby contingent payments of cash and
common stock are paid once certain financial goals are achieved.
4
<PAGE>
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 1997
Revenues for the third quarter of 1998 increased $7.4 million, or 82%, to $16.4
million compared to $9 million for the third quarter of 1997. In September of
1997, the Company acquired substantially all of the assets of Market Connections
Group, Inc. ("MCG" previously known as Hispanic Market Connections, Inc.). In
October of 1997, the Company acquired substantially all of the assets of Phoenix
Marketing Group, Inc. ("Phoenix"). The combined revenues for these two companies
included in the results of operations for the third quarter of 1998 is
approximately $5.9 million, or 80% of the increase. The remaining increase is
due primarily to the expansion of services provided to the Company's top ten
clients.
Cost of revenues increased to $8.7 million for the third quarter of 1998, from
$5.6 million in the third quarter of 1997, an increase of $3.0 million. Cost of
revenues as a percentage of sales decreased to 53% for the third quarter of
1998, compared to 62% for the second quarter of 1997. This reduction was
primarily the result of the Company being able to better utilize its existing
work force because of improved facilities and changes in work practices.
Selling, general and administrative expenses, increased $3.5 million, to $5.6
million for the third quarter of 1998, from $2.0 million for the third quarter
of 1997. Selling, general and administrative expenses as a percentage of
revenues increased to 34% for the third quarter of 1998, from 23% for the third
quarter of 1997. Approximately 56% of the increase was due to the acquisition
of MCG and Phoenix which have a different cost structure than the other
businesses. In addition, approximately 24% of the increase is due to the
creation of a corporate infrastructure needed to support the Company's future
growth.
Amortization expense increased for the third quarter of 1998 to $368,000, from
$191,000 for the third quarter of 1997. The increase is due to the acquisitions
indicated above.
Net interest expense decreased for the third quarter of 1998, due to the Company
paying off its debt incurred in acquiring all business units. The proceeds from
the initial public offering ("Offering") were used to reduce borrowings. In
addition, the preferred stock became non-interest bearing on February 10, 1998.
NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1997
Revenues for the first nine months of 1998 increased $23.4 million, or 97%,
to $47.4 million, compared to $24.0 million for the same period in 1997. Of this
increase, approximately $16.7 million, or 71%, resulted from the acquisitions of
MCG and Phoenix. In addition, approximately $5.9 million of the increase came
from additional services rendered to the Company's 1998 top ten clients.
Cost of revenues increased $11.8 million, to $26.3 million for the first nine
months of 1998, from $14.4 million for the first nine months of 1997. Cost
of revenues as a percentage of sales declined to 55% for the first nine
months of 1998, when compared to 60% for the first nine months of 1997. The
decrease was due primarily to the Company's ability to more effectively utilize
its workforce because of improved facilities and changes in work practices.
Selling, general and administrative expenses increased $9.7 million, to $15.0
million for the first nine months of 1998, from $5.3 million for the first
nine months of 1997. Selling, general and administrative expenses as a
percentage of revenues increased to 32% for the first nine months of 1998,
from 22% for the first nine months of 1997. Approximately 58% of the increase
was due to the acquisition of MCG and Phoenix which have a different cost
structure than the other businesses. Approximately 16% of the increase is due
to the creation of a corporate infrastructure needed to support the Company's
future growth. The remaining increase was due to costs incurred from our
expanded capacity which will facilitate further internal growth.
Amortization expense increased $530,000, to $1,077,000 for the first nine
months of 1998, from $547,000 for the first nine months of 1997, due to the
acquisitions of MCG and Phoenix which did not occur until the later part of
1997.
Net interest expense decreased $1,013,000, to $466,000 for the first nine
months of 1998, from $1,478,000 for the first nine months of 1997, as
proceeds from the Offering were used to reduce borrowings.
5
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1998, the Company had working capital of $9 million, an
increase of $14 million from ($5.0) million at December 31, 1997. As described
below, substantially all of the Company's net working capital resulted from the
completion of its Offering in February 1998. The Company's primary sources of
liquidity as of September 30, 1998 consist of cash and cash equivalents,
accounts receivable and borrowing availability under the Credit Facility (as
defined in the Company's Annual Report on Form 10-K).
The Company's accounts receivable turnover averaged 75 days for the period ended
September 30, 1998, and 58 days for the period ended December 31, 1997. The
increase was partially due to the acquisition of MCG and Phoenix and the timing
of payments.
Net cash used for operating activities during the first nine months of 1998 was
$3.6 million, compared to $522,000 provided by operating activities during the
first nine months of 1997. Approximately $2.8 million of the increase in cash
used for operating activities for 1998 as compared to 1997 was primarily the
result of accrued interest paid on related party debt. Approximately $1.5 of the
increase in cash used for operating activities was the result of increases in
accounts receivable due to increased sales, and an increase in days sales
outstanding.
The net cash used for investing activities during the first nine months of
1998 was $4.9 million compared to the net cash provided from investing
activities for the first nine months of 1997 of $7.8 million. Cash utilized
for capital expenditures increased by $3.4 million due to the expansion of the
Company's facilities, and upgrading of computer systems. During the first nine
months of 1997, the Company used $6.5 million in investing activities to
acquire TeleManagement Services Inc. and received $15.0 million to repay
borrowings incurred in connection with the recapitalization of the Company on
December 6, 1996.
On February 19, 1998, the Company raised net proceeds of $44.6 million in the
Offering. The Company expects to meet its short term liquidity requirements
through net cash provided by operations and borrowing under the Credit Facility
(as defined in the Company's Annual Report on Form 10-K). Management believes
that these sources of cash will be sufficient to meet the Company's operating
needs and planned capital expenditures for at least the next 12 months.
YEAR 2000 ISSUE
As a rapidly growing outsource marketing service company, the Company is
dependent on computer systems and applications to conduct its business. Some
computer systems and applications include programming code in which calendar
year data is abbreviated to only two digits. As a result of this design
decision, some of these systems could fail to operate or fail to produce correct
results if "00" is interpreted to mean 1900, rather than 2000. These problems
are commonly referred to as the "Millennium Bug"or "Year 2000 Problem".
The Company has developed and is currently executing a comprehensive risk-based
plan designed to make its computer systems, applications and facilities Year
2000 ready. The plan covers four stages including (i) identification, (ii)
assessment, (iii) remediation, and (iv) testing.
The Company is in the process of identifying substantially all of the major
computers, software applications, and related equipment used in connection with
its internal operations that must be modified, upgraded, or replaced to minimize
the possibility of a material disruption to its business. The Company believes
that this process will be completed within the fourth quarter. Then the Company
will commence the assessment and remediation stages of modifying, upgrading, and
replacing major systems that have been identified as adversely affected, and
expects to complete this process before the end of the second quarter of 1999.
The testing stage is projected to be completed by third quarter of 1999.
In addition to computers and related systems, the operation of office equipment,
such as fax machines, photocopiers, telephone switches, security systems,
elevators and other common devices may be affected by the Year 2000 Problem. The
Company is currently assessing the potential effects of, and cost of
remediating, the Year 2000 Problem on its office equipment.
The Company has incurred costs to date of $86,000 and estimates the total cost
of any required modifications, upgrades, or replacements of its internal systems
to be $200,000. While the estimated cost of these efforts are not expected to be
material to the Company's financial position or any year's results of
operations, there can be no assurance to this effect. The estimated cost will be
monitored and will be revised as additional information becomes available.
The Company has initiated communications with its major clients and suppliers to
determine the extent to which the Company's interface systems are vulnerable to
those third parties' failure to remediate their own Year 2000 Problems. There
can be no assurance that these clients and suppliers will resolve any or all
Year 2000 Problems with its systems before the occurrence of a material
disruption to the business of the Company. Any failure of these clients and
suppliers to resolve Year 2000 Problems with their systems in a timely manner
could have a material adverse effect on the Company's business, financial
condition, and results of operation.
The Company expects to identify and resolve all Year 2000 Problems that could
materially adversely affect its business operations. However, since the number
of devices that could be effected and the interactions among these devices are
numerous, management believes that it is not possible to determine with complete
certainty that all Year 2000 Problems affecting the Company have been identified
or corrected.
The Company is currently developing contingency plans to be implemented as part
of its efforts to identify and correct Year 2000 Problems affecting its internal
systems. The Company expects to complete its contingency plans by early 1999.
Depending on the systems affected, these plans could include accelerated
replacement of affected equipment or software, short to medium-term use of
backup equipment and software, increased work hours for Company personnel or use
of contract personnel to correct on an accelerated schedule any Year 2000
Problems that arise or to provide manual workarounds for information systems,
and similar approaches. If the Company is required to implement any of these
contingency plans, it could have a material adverse effect on the Company's
financial condition and results of operations.
The discussion of the Company's efforts, and management's expectations, related
to Year 2000 compliance are forward-looking statements. The Company's ability to
achieve Year 2000 compliance and the level of incremental costs associated
therewith, could be adversely impacted by, among other things, the availability
and cost of programming and testing resources, vendors' ability to modify
proprietary software, and unanticipated problems identified in the ongoing
compliance review.
6
<PAGE>
RISK FACTORS THAT MAY AFFECT FUTURE RESULTS
This report contains certain forward-looking statements which are based on
management's current views and assumptions. These statements are qualified by
reference to "Risk Factors" in the Prospectus in the Company's registration
statement on Form S-1 which lists important factors that could cause actual
results to differ materially from those discussed in this report.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
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.
ACCESS WORLDWIDE COMMUNICATIONS, INC.
Date: __________ By: /s/ John Fitzgerald
-------------------------------
John Fizgerald, President and
Chief Executive Officer
(principal executive officer)
Date: __________ By: /s/ Michael Dinkins
-------------------------------
Michael Dinkins, Senior Vice
President of Finance and Administration
and Chief Financial Officer
(principal financial officer)
7
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Sep-30-1998
<CASH> 1,604,041
<SECURITIES> 0
<RECEIVABLES> 13,776,529
<ALLOWANCES> 140,027
<INVENTORY> 0
<CURRENT-ASSETS> 17,077,673
<PP&E> 7,465,633
<DEPRECIATION> 0
<TOTAL-ASSETS> 60,966,260
<CURRENT-LIABILITIES> 8,096,713
<BONDS> 0
6,554,444
0
<COMMON> 90,432
<OTHER-SE> 43,716,847
<TOTAL-LIABILITY-AND-EQUITY> 60,966,260
<SALES> 47,397,255
<TOTAL-REVENUES> 47,397,255
<CGS> 26,252,491
<TOTAL-COSTS> 26,252,491
<OTHER-EXPENSES> 16,110,867
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 528,229
<INCOME-PRETAX> 4,568,238
<INCOME-TAX> 2,010,025
<INCOME-CONTINUING> 2,558,213
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,558,213
<EPS-PRIMARY> 0.30
<EPS-DILUTED> 0.30
</TABLE>
