EX-99.1 2 aw6850ex991.txt EXHIBIT 99.1 Exhibit 99.1 ACCESS WORLDWIDE REPORTS SECOND QUARTER FINANCIAL RESULTS ARLINGTON, Va., Aug. 14 /PRNewswire-FirstCall/ -- Access Worldwide Communications, Inc. (OTC Bulletin Board: AWWC), a leading marketing services company, today reported financial results for the three and six months ended June 30, 2006. For the Three Months Ended June 30, 2006 Our revenues increased $0.3 million, or 3.2%, to $9.8 million for the quarter ended June 30, 2006, compared to $9.5 million for the quarter ended June 30, 2005. We reported a loss from operations for the second quarter of 2006 of $(1.2) million, compared to a loss from operations of $(0.3) million for the second quarter of 2005. The overall increase in revenue was attributed to a $2.0 million increase in revenues from our domestic Business Services segment and $1.0 million revenue from our offshore Philippine operation that had not begun generating revenue as of the second quarter of 2005. The increases domestically resulted from the acquisition of two new customers and the expansion of services with two existing customers. There was a reduction of revenue of $2.7 million in our Pharmaceutical Services segment during the second quarter of 2006 as a result of among other things the change from dedicated to shared pool of representatives, and a decrease in our medical education services. We reported a net loss of $(1.7) million, or $(0.10) loss per share of common stock, for the quarter ended June 30, 2006, compared to net loss of $(0.7) million, or $(0.06) loss per share of common stock, for the quarter ended June 30, 2005. Total weighted average common shares outstanding for the quarters ended June 30, 2006 and June 30, 2005 were 17,350,507 and 11,286,219, respectively. For the Six Months Ended June 30, 2006 Our revenues decreased $0.1 million, or 0.5%, to $19.8 million for the six months ended June 30, 2006, compared to $19.9 million for the six months ended June 30, 2005. Revenues for the Pharmaceutical Segment decreased $4.6 million, or 35.4%, to $8.4 million for the six months ended June 30, 2006, compared to $13.0 million for the six months ended June 30, 2005. Revenues for the Business Segment increased $4.5 million, or 65.2%, to $11.4 million for the six months ended June 30, 2006, compared to $6.9 million for the six months ended June 30, 2005. We reported net loss and loss per share of common stock of $(2.8) million and $(0.17), respectively, for the six months ended June 30, 2006, compared to net loss and loss per share of common stock of $(1.3) million and $(0.11), respectively, for the six months ended June 30, 2005. Total weighted average common shares outstanding for the six months ended June 30, 2006 and June 30, 2005 were 17,119,773 and 11,064,969, respectively. Access Worldwide is an established marketing company that provides a variety of sales, communication and medical education services. Our spectrum of services includes multilingual teleservices, customer service, telecom services, financial services, medical meetings management, medical publishing, editorial support, and database management, among others. Headquartered in Arlington, Virginia, Access Worldwide has about 700 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 including statements that 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; our ability to secure financing at a competitive rate; 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 the facility in the Philippines; consolidation in the medical, telecommunications and consumer products industries which reduces the number of clients and prospects that are able to be served; 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, 2005 filed with the Securities and Exchange Commission. The Company assumes no duty to update any forward-looking statements. - Tables Follow - Access Worldwide Communications, Inc. Condensed Consolidated Balance Sheets
June 30, December 31, 2006 2005 -------------- -------------- (Unaudited) ASSETS Current Assets Cash and cash equivalents $ 474,489 $ 1,755,926 Restricted cash 805,000 314,000 Accounts receivable, net 8,658,191 7,297,583 Unbilled receivables 291,138 228,083 Other assets, net 1,032,452 785,257 Total current assets 11,261,270 10,380,849 Property and equipment, net 4,400,816 5,025,158 Restricted cash 343,000 466,000 Other assets, net 291,116 390,822 Total assets $ 16,296,202 $ 16,262,829 LIABILITIES, MANDATORILY REDEEMABLE PREFERRED STOCK AND COMMON STOCKHOLDERS' DEFICIT Current Liabilities Current portion of indebtedness $ 5,587,020 $ 4,876,381 Current portion of indebtedness - related parties 2,352,334 352,334 Accounts payable 1,041,656 1,878,856 Accrued expense 1,621,312 2,204,267 Grants payable - 80,000 Accrued salaries, wages and related benefits 834,139 736,797 Customer deposits 1,169,463 1,084,378 Convertible notes, net 1,976,385 1,768,584 Deferred Revenues 1,003,102 1,435,619 Accrued interest and other related party expenses 60,568 59,512 Total current liabilities 15,645,979 14,476,728 Long-term portion of indebtedness 468,754 669,441 Long-term portion of indebtedness - related parties - - Other long-term liabilities 763,004 796,418 Convertible notes, net 3,047,430 1,380,564 Mandatorily redeemable preferred stock, $0.01 par value: 1,000,000 shares authorized, 40,000 shares issued and outstanding 4,000,000 4,000,000 Total liabilities 23,925,167 21,323,151 Commitments and contingencies Common stockholders' deficit Common stock, $0.01 par value: voting 40,000,000 shares authorized; 17,340,065 and 16,616,219 shares issued and outstanding, respectively 173,401 166,162 Additional paid-in capital 70,644,624 70,389,446 Accumulated deficit (78,446,990) (75,602,730) Deferred compensation - (13,200) Total common stockholders' deficit (7,628,965) (5,060,322) Total liabilities, mandatorily redeemable preferred stock and common stockholders' deficit $ 16,296,202 $ 16,262,829
Access Worldwide Communications, Inc. Condensed Consolidated Statements of Operations
For the Three Months Ending For the Six Months Ending June 30, June 30, ------------------------------ ------------------------------ 2006 2005 2006 2005 ------------- ------------- ------------- ------------- Unaudited Unaudited Revenues $ 9,755,920 $ 9,535,225 $ 19,745,315 $ 19,886,019 Cost of revenues 5,823,494 5,593,618 11,593,193 11,103,091 Gross profit 3,932,426 3,941,607 8,152,122 8,782,928 Selling, general & administrative expenses 5,085,716 4,192,145 10,009,000 9,214,489 Loss from operations (1,153,290) (250,538) (1,856,878) (431,561) Interest expense, net (519,723) (439,914) (987,382) (828,772) Net loss $ (1,673,013) $ (690,452) $ (2,844,260) $ (1,260,333) Basic loss per share: - Net loss $ (0.10) $ (0.06) $ (0.17) $ (0.11) Weighted average common shares outstanding 17,350,507 11,286,219 17,119,773 11,064,969 Diluted loss per share: - Net loss $ (0.10) $ (0.06) $ (0.17) $ (0.11) Weighted average common shares outstanding 17,350,507 11,286,219 17,119,773 11,064,969
SOURCE Access Worldwide Communications, Inc. -0- 08/14/2006 /CONTACT: Mark Wright, Investor Relations, +1-703-292-5210, mwright@accessww.com, or Richard Lyew, EVP & Chief Financial Officer, +1-703-292-5210, rlyew@accessww.com, both of Access Worldwide Communications, Inc./ /Web site: http://www.accessww.com/ (AWWC)