ARLINGTON, Va., April 17 /PRNewswire-FirstCall/ -- Access Worldwide
Communications, Inc. (OTC:AWWC) (BULLETIN BOARD: AWWC) , an
established marketing and Business Process Outsourcing ("BPO")
services company, today reported financial results for the three
and twelve months ended December 31, 2006. For the Three Months
Ended December 31, 2006 Our revenues increased by $3.8 million, or
81%, to $8.5 million for the quarter ended December 31, 2006,
compared to $4.7 million for the quarter ended December 31, 2005.
Revenues for our U.S. Segment increased $2.4 million, or 58.5% to
$6.5 million for the quarter ended December 31, 2006, compared to
$4.1 million for the quarter ended December 31, 2005. The increase
was primarily attributed to an increase in the number of programs
and production hours performed. Revenues for our International
Segment increased $1.4 million, or 233.3% to $2.0 million for the
quarter ended December 31, 2006, compared to $0.6 million for the
quarter ended December 31, 2005. The increase was primarily
attributed to the full utilization of our communication center in
the Philippines in the fourth quarter of 2006 after commencing
operations in September 2005. We reported a net loss from
continuing operations of $0.3 million and basic and diluted loss
per share of common stock of $0.02 for the quarter ended December
31, 2006, compared to a net loss from continuing operations of $1.2
million and basic and diluted loss per share of common stock of
$0.07 for the quarter ended December 31, 2005. Total weighted
average diluted shares outstanding for the quarters ended December
31, 2006 and December 31, 2005 were 17,340,065 and 16,609,552,
respectively. For the Twelve Months ended December 31, 2006 Our
revenues increased $12.9 million, or 87.2%, to $27.7 million for
the year ended December 31, 2006, compared to $14.8 million for the
year ended December 31, 2005. Revenues for our U.S. Segment
increased $8.3 million, or 58.5%, to $22.5 million for the year
ended December 31, 2006, compared to $14.2 million for the year
ended December 31, 2005. The increase is primarily attributed to an
increase in the number of programs and production hours performed.
Revenues for our International Segment increased $4.6 million, or
766.7%, to $5.2 million for the year ended December 31, 2006,
compared to $0.6 million for the year ended December 31, 2005. The
increase was primarily attributed to the full utilization of our
communication center in the Philippines in the fourth quarter of
2006 after commencing operations in September 2005. We reported net
loss from continuing operations of $4.3 million and diluted loss
per share of common stock of $0.25 for the year ended December 31,
2006, compared to net loss from continuing operations of $5.5
million and diluted loss per share of common stock of $0.42 for the
year ended December 31, 2005. Total weighted average common shares
outstanding for year ended December 31, 2006 and December 31, 2005
were 17,340,065 and 13,084,761, respectively. "We are very pleased
with the improvement and performance of our domestic operations and
we expect this momentum to carry into 2007. In Manila, we are at
full capacity in our first facility, and our second facility
started production in February of 2007. The addition of our second
facility will provide us with approximately 700 production seats in
the Philippines." commented Shawkat Raslan, Chairman, President and
Chief Executive Officer of Access Worldwide. "Our business
objectives in 2007 will be to optimize and maximize the utilization
of our US capacity and maximize the growth of our offshore
operations." 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 http://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 December
31, ASSETS 2006 2005 Current Assets: Cash and cash equivalents
$2,836,980 $1,755,926 Restricted cash 123,000 314,000 Accounts
receivable, net of allowance for doubtful accounts of $99,130 and
$61,994, respectively 6,956,218 7,297,583 Unbilled receivables
7,750 228,083 Other current assets, net 831,958 785,257 Total
current assets 10,755,906 10,380,849 Property and equipment, net
3,374,575 5,025,158 Restricted cash 343,000 466,000 Other assets,
net 386,127 390,822 Total assets $14,859,608 $16,262,829
LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT Current Liabilities:
Current portion of indebtedness $438,866 $4,876,381 Current portion
of indebtedness - related parties 1,750,000 352,334 Accounts
payable 1,315,785 1,878,856 Accrued expense 654,140 2,204,267
Grants payable - 80,000 Accrued salaries, wages and related
benefits 586,107 736,797 Customer deposits 1,210,146 1,084,378
Convertible Notes, net - 1,768,584 Deferred revenue 669,290
1,435,619 Accrued interest and other related party expenses -
59,512 Total current liabilities 6,624,334 14,476,728 Long-term
portion of indebtedness 259,256 669,441 Other long-term liabilities
530,992 796,418 Convertible Notes, net 4,625,490 1,380,564
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 16,040,072 21,323,151 Commitments and
contingencies Common stockholders' deficit: Common stock, $0.01 par
value: voting 40,000,000 shares auth.; 17,340,065 and 16,616,219
shares issued and out., respectively 173,401 166,162 Additional
paid-in capital 71,362,793 70,389,446 Accumulated deficit
(72,716,658) (75,602,730) Deferred compensation - (13,200) Total
common stockholders' deficit (1,180,464) (5,060,322) Total
liabilities and common stockholders' deficit $14,859,608
$16,262,829 Access Worldwide Communications, Inc. Condensed
Consolidated Statements of Operations Unaudited For the Three
Months For the Twelve Months Ending Ending December 31, December
31, 2006 2005 2006 2005 Revenues $8,466,712 $4,688,907 $27,711,626
$14,809,486 Cost and expenses: Cost of services 6,337,666 3,770,978
21,315,235 13,145,510 Selling, general and administrative expenses
1,937,436 1,356,957 6,557,701 4,497,969 Depreciation 248,055
290,526 1,037,856 893,516 Total costs and expenses 8,523,157
5,418,461 28,910,792 18,536,995 Loss from operations (56,445)
(729,554) (1,199,166) (3,727,509) Interest expense, net (271,478)
(437,907) (3,051,906) (1,726,488) Loss from continuing operations
(327,923) (1,167,461) (4,251,072) (5,453,997) Discontinued
operations: Income (loss) from discontinued operations 12,728
(236,262) (591,631) 773,273 Gain on disposal of segment, net of
income tax expense of $0 (470,787) - 7,728,775 - (458,059)
(236,262) 7,137,144 773,273 Net (loss) income before deemed
dividend (785,982) (1,403,723) 2,886,072 (4,680,724) Deemed
dividend - warrants issued to certain stockholders - - (740,000)
Net (loss) income applicable to common stockholders (785,982)
(1,403,723) 2,886,072 (5,420,724) Basic and diluted (loss) income
per share of common stock: Continuing operations $(0.02) $(0.07)
$(0.25) $(0.42) Discontinued operations $(0.03) $(0.01) $0.41 $0.06
Net (loss) income $(0.05) $(0.08) $0.17 $(0.41) Weighted average
common shares outstanding 17,340,065 16,609,552 17,340,065
13,084,761 ACCESS WORLDWIDE COMMUNICATIONS, INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2006 2005
Cash flows from operating activities: Net income (loss) $2,886,072
$(4,680,724) Adjustments to reconcile net income (loss) to net cash
used in operating activities: Depreciation and amortization
1,037,856 905,156 Allowance for doubtful accounts 98,821 (65,325)
Amortization of deferred compensation 10,500 15,350 Amortization of
deferred financing costs 600,239 87,217 Accretion of discount on
Convertible Notes 691,727 721,463 Gain on sale of discontinued
operations (7,728,775) - Share based compensation expense 227,119 -
Changes in assets and liabilities from discontinued operations
734,419 (2,308,861) Changes in operating assets and liabilities:
Accounts receivable (4,253,286) 128,519 Other assets (449,720)
(27,098) Accounts payable, grants payable, accrued expenses and
other liabilities 287,465 797,743 Accrued salaries, wages and
related benefits 301,441 (58,619) Customer deposits (2) 19,315
Deferred revenue 325,603 (158,665) Accrued interest and related
party expenses (778,167) 46,911 Net cash used in operating
activities (6,008,688) (4,577,618) Cash flows from investing
activities: Additions to property and equipment, net (564,988)
(2,458,104) Additions to property and equipment from discontinued
operations, net (187,549) (387,682) Net proceeds from sale of
discontinued operations 9,751,470 - Decrease (increase) in
restricted cash 314,000 (69,000) Net cash provided by (used in)
investing activities 9,312,933 (2,914,786) Cash flows from
financing activities: Payments on capital leases (383,146) 761,373
Proceeds from issuance of common stock 5,535 3,254,950 Proceeds
from exercise of common stock options and warrants - 7,470 Net
borrowings under Credit Facility and Debt Agreement (4,454,388)
1,623,855 Borrowings under not payable to related party 2,000,000
Repayment of Convertible Notes (115,000) Loan origination fees
(140,000) (40,000) Proceeds from issuance of Convertible Notes
1,500,000 1,000,000 Payments under note payable to related party
(602,334) Proceeds from insurance financing, net (17,122) 22,251
Payments on capital leases from discontinued operations (16,736)
47,885 Net cash (used in) provided by financing activities
(2,223,191) 6,677,784 Net increase (decrease) in cash and cash
equivalents 1,081,054 (814,620) Cash and cash equivalents,
beginning of year 1,755,926 2,570,546 Cash and cash equivalents,
end of year $2,836,980 $1,755,926 Supplemental disclosure of cash
flow information: Cash paid during the period for: Interest
$1,896,767 $921,768 Note: $1,000,000 was paid in 2006 for early
termination of credit facility. Income taxes - $- Non-Cash
Investing and Financing Activities: Equipment acquisitions through
capital leases $24,290 $1,053,832 Issuance of common stock to pay
bonuses $49,147 $185,000 DATASOURCE: Access Worldwide
Communications, Inc. CONTACT: Mark Wright, General Counsel,
Secretary, of Access Worldwide Communications, Inc.,
+1-703-292-5210, Web site: http://www.accessww.com/
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