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West Corporation Reports First Quarter 2013 Results and Declares Quarterly Dividend



West Corporation Reports First Quarter 2013 Results and Declares Quarterly
Dividend

First Quarter Platform-Based Revenue Grew 7.3%

OMAHA, Neb., April 25, 2013 (GLOBE NEWSWIRE) -- West Corporation
(Nasdaq:WSTC), a leading provider of technology-driven communication services,
today announced its first quarter 2013 results.

                                               
Financial Summary (unaudited)                 Three Months Ended March 31,
Dollars in millions, except per share amounts 2013       2012      Change
Consolidated Revenue                          $660.2     $639.1   3.3% 
Platform-based Revenue                        481.4      448.8     7.3%
Adjusted Operating Income^1                   138.4     130.3     6.3%
Operating Income                              93.3      114.2     -18.3%
Free Cash Flow^1,2                            65.1      57.6      13.1%
Cash Flows from Operations                    98.7      91.7      7.6%
Adjusted EBITDA^1                             170.1     161.8     5.2%
EBITDA^1                                      138.9     160.6     -13.5%
Adjusted Net Income^1                         44.5      45.8      -2.8%
Pro Forma Adjusted Net Income^1,3             58.1      NM        NM
Net Income                                    3.1       34.0      -91.0%
Adjusted Earnings per Share – Diluted         0.68      NM        NM
Pro Forma Adjusted EPS – Diluted^1,3          0.68      NM        NM
Earnings per Share - Diluted                  .05       .54       -90.7%
Net Cash Flows used in Investing              (34.0)    (110.7)   -69.3%
Net Cash Flows from Financing                 409.6     20.3      NM

"West Corporation started 2013 on a positive note, re-entering the public
equity markets and delivering growth in consolidated revenue, platform-based
revenue, adjusted operating income and adjusted EBITDA. With our stable
operating model and healthy margins, we generated strong free cash flow and
are announcing a quarterly dividend of $0.225 per share. We see future growth
opportunities as we continue to develop and manage large-scale, complex,
mission-critical transactions for our clients' constantly evolving
communications needs," stated Tom Barker, CEO. 

Dividend

The Company today also announced a $0.225 per common share quarterly dividend.
 The dividend is payable May 16, 2013, to shareholders of record as of the
close of business on May 6, 2013. "Due to the strength of our underlying
businesses, West Corporation generates significant free cash flow. We expect
to generate $180-$220 million in free cash flow this year. Our expectation is
to return some portion of our free cash flow to shareholders each year through
a regular quarterly dividend," said Paul Mendlik, CFO. "We expect to use the
remaining free cash flow to reduce leverage and fund acquisitions to
accelerate growth. Our goal is to reduce net leverage to less than 4x adjusted
EBITDA in less than 24 months through free cash flow generation and EBITDA
growth."

Consolidated Operating Results

For the first quarter of 2013, revenue was $660.2 million compared to $639.1
million for the same quarter of the previous year, an increase of 3.3
percent. Revenue from an acquired entity^4 was $20.9 million during the first
quarter of 2013.  Consolidated revenue growth was impacted by a decline of
$11.4 million in agent-based services revenue. The Unified Communications
segment had revenue of $367.6 million in the first quarter of 2013, an
increase of 2.2 percent over the same quarter of the previous year. The
Communication Services segment had revenue of $296.5 million in the first
quarter of 2013, 5.2 percent higher than the first quarter of 2012. The growth
in Communication Services revenue was primarily driven by the acquisition of
HyperCube and 6.2% growth in Emergency Communications (Intrado) revenue. The
Company's platform-based businesses^5 had revenue of $481.4 million in the
first quarter of 2013, an increase of 7.3 percent over the same quarter of the
previous year. 

Adjusted Operating Income for the first quarter of 2013 was $138.4 million, or
21.0 percent of revenue, compared to $130.3 million, or 20.4 percent of
revenue in the same quarter of 2012. Operating Income was $93.3 million in the
first quarter of 2013 compared to $114.2 million in the first quarter of
2012. A reconciliation of Adjusted Operating Income to Operating Income is
presented on page 10.

Adjusted EBITDA for the first quarter of 2013 was $170.1 million, or 25.8
percent of revenue, compared to $161.8 million, or 25.3 percent of revenue,
for the first quarter of 2012. EBITDA was $138.9 million in the first quarter
of 2013 compared to $160.6 million in the first quarter of 2012. A
reconciliation of EBITDA and Adjusted EBITDA to Cash Flows from Operations and
Net Income is presented beginning on page 12.

Cash Flows from Operations were $98.7 million for the first quarter of 2013
compared to $91.7 million in the same quarter last year. Free Cash Flow
increased 13.1% to $65.1 million in the first quarter of 2013 compared to
$57.6 million in the first quarter of 2012. A reconciliation of Free Cash Flow
to Cash Flows from Operations is presented on page 11.

Adjusted Net Income was $44.5 million in the first quarter of 2013, a decrease
of 2.8 percent from the same quarter of 2012.  The decrease in Adjusted Net
Income was due to higher interest expense as a result of higher outstanding
balances on the Company's senior term loan facilities. The Company's pro forma
Adjusted Net Income, which includes pro forma interest expense, net of tax,
for the first quarter of 2013 was $58.1 million. A reconciliation of Adjusted
Net Income and pro forma Adjusted Net Income to Net Income is presented
beginning on page 10. 

Balance Sheet and Liquidity

At March 31, 2013, West Corporation had cash and cash equivalents totaling
$651.1 million and working capital of $297.8 million. Interest expense was
$72.9 million during the three months ended March 31, 2013 compared to $62.2
million during the comparable period last year. This increase in interest
expense was due to higher outstanding balances on the Company's variable rate
senior term loan facilities. During the first quarter of 2013, other
non-operating expense included $16.5 million for the subordinated debt call
premium. 

The Company's pro forma adjusted interest expense for the first quarter of
2013 was $46.4 million compared to actual interest expense of $72.9
million. Pro forma adjusted interest reflects the impact of lower debt
balances and lower interest rates post IPO. Approximately $12.4 million of the
pro forma adjustment relates to the savings expected for the full quarter from
the anticipated redemption of the $450 million senior subordinated notes and
the remaining amount relates to the savings for the full quarter associated
with the pricing amendment to the senior secured term loan facilities as if
these transactions had been completed January 1, 2013. 

The amendment of the $2.4 billion senior secured term loan facilities was
completed on February 20, 2013. This amendment will reduce the annual cash
interest expense run rate by $47 million and extend the maturity of $1.1
billion of term loans to June 2018. The Company's net debt to pro forma
Adjusted EBITDA ratio, as calculated pursuant to the Company's senior secured
term debt facilities, was 4.68x at March 31, 2013.

During the first quarter of 2013, the Company invested $23.3 million, or 3.5
percent of revenues, in capital expenditures primarily for software and
computer equipment. 

Initial Public Offering

On March 27, 2013, the Company completed its initial public offering of 21.275
million shares of common stock ("IPO"). Proceeds from the IPO, net of
underwriting discounts, were $401 million. The Company intends to use the
proceeds of the IPO and cash on hand to redeem its $450 million of 11 percent
senior subordinated notes. The redemption date for the senior subordinated
notes is April 26, 2013 at a redemption price equal to 103.667 percent of the
principal amount. This redemption will reduce the Company's annual cash
interest expense run rate by $49.5 million.

"We are excited to have completed our senior term loan amendment in February
and IPO in March. This amendment and equity offering provides West Corporation
with annual run rate interest savings of $97 million. This will benefit the
Company with an improved capital structure, reduced leverage and greater
overall financial flexibility," said Paul Mendlik.

2013 Guidance Update

The Company is presenting the following guidance for its expected results for
2013, which includes the impact of the IPO and the re-pricing of its senior
term loan facility. This guidance assumes no acquisitions or changes in the
current operating environment, no additional capital structure changes and
foreign currency exchange rates used in our previous guidance.

Consolidated Revenue ($B)                   $2.715 -- $2.770 
Adjusted Operating Income ($M)              $565 -- $595 
Operating Income ($M)                       $474 -- $504 
Free Cash Flow ($M)                         $180 -- $220 
Cash Flows from Operations ($M)             $320 -- $350 
Adjusted EBITDA ($M)                        $705 -- $735 
EBITDA ($M)                                 $660 -- $690 
Adjusted Net Income ($M)                    $220 -- $232 
Adjusted Earnings per Share - Diluted       $2.87 -- $3.02 
Pro forma Adjusted Net Income ($M)          $237 -- $249 
Pro Forma Adjusted EPS - Diluted            $3.09 -- $3.24 
Net Income ($M)                             $138 -- $150 
Earnings per Share - Diluted                $1.80 – $1.95 
Net Debt to pro forma Adjusted EBITDA ratio 4.50x – 4.65x

Conference Call

The Company will hold a conference call to discuss these topics on Friday,
April 26, 2013 at 11:00 AM Eastern Time (10:00 AM Central Time). Investors may
access the call by visiting the Financials section of the West Corporation
website at www.west.com and clicking on the Webcast link. A replay of the call
will be available on the Company's website at www.west.com.

About West Corporation

West Corporation (Nasdaq:WSTC) is a leading provider of technology-driven
communication services. West offers its clients a broad range of
communications and network infrastructure solutions that help them manage or
support critical communications. West's customer contact solutions and
conferencing services are designed to improve its clients' cost structure and
provide reliable, high-quality services. West also provides mission-critical
services, such as public safety and emergency communications.

Founded in 1986 and headquartered in Omaha, Nebraska, West serves Fortune 1000
companies and other clients in a variety of industries, including
telecommunications, retail, financial services, public safety, technology and
healthcare. West has sales and operations in the United States, Canada,
Europe, the Middle East, Asia Pacific and Latin America. For more information
on West Corporation, please call 1-800-841-9000 or visit www.west.com.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking
statements can be identified by the use of words such as "may," "should,"
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"intends," "continue" or similar terminology. These statements reflect only
West's current expectations and are not guarantees of future performance or
results. These statements are subject to risks and uncertainties that could
cause actual results to differ materially from those contained in the
forward-looking statements. These risks and uncertainties include, but are not
limited to, competition in West's highly competitive industries; increases in
the cost of voice and data services or significant interruptions in these
services; West's ability to keep pace with its clients' needs for rapid
technological change and systems availability; the continued deployment and
adoption of emerging technologies; the loss, financial difficulties or
bankruptcy of any key clients; security and privacy breaches of the systems
West uses to protect personal data; the effects of global economic trends on
the businesses of West's clients; the non-exclusive nature of West's client
contracts and the absence of revenue commitments; the cost of pending and
future litigation; the cost of defending West against intellectual property
infringement claims; extensive regulation affecting many of West's businesses;
West's ability to protect its proprietary information or technology; service
interruptions to West's data and operation centers; West's ability to retain
key personnel and attract a sufficient number of qualified employees;
increases in labor costs and turnover rates; the political, economic and other
conditions in the countries where West operates; changes in foreign exchange
rates; West's ability to complete future acquisitions and integrate or achieve
the objectives of its recent and future acquisitions; future impairments of
our substantial goodwill, intangible assets, or other long-lived assets; and
West's ability to recover consumer receivables on behalf of its clients. In
addition, West is subject to risks related to its level of indebtedness. Such
risks include West's ability to generate sufficient cash to service its
indebtedness and fund its other liquidity needs; West's ability to comply with
covenants contained in its debt instruments; the ability to obtain additional
financing; the incurrence of significant additional indebtedness by West and
its subsidiaries; and the ability of West's lenders to fulfill their lending
commitments. West is also subject to other risk factors described in documents
filed by the company with the United States Securities and Exchange
Commission. 

These forward-looking statements speak only as of the date on which the
statements were made. West undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent required by
applicable law.

 WEST CORPORATION 
 CONDENSED STATEMENTS OF OPERATIONS 
 (Unaudited, in thousands except selected operating data) 
                                                                    
                     Three Months Ended March 31,                   
                     2013       2012              2013              2013 Adj. 
                     Actual     Actual    %       Adjusted  %       Pro Forma
                                          Change (1)        Change (3) 
Revenue              $ 660,224  $ 639,062 3.3%    $ 660,224 3.3%    $ 660,224
Cost of services     309,067    291,702   6.0%    309,067   6.0%    309,067
Selling, general
and administrative   257,867    233,118   10.6%   212,741   -8.7%   212,741
expenses
Operating income     93,290     114,242   -18.3%  138,416   21.2%   138,416
Interest expense,    72,879     62,062    17.4%   68,225    9.9%    46,430
net
Subordinated debt    16,502     --         --     --         --     -- 
call premium
Other expense        (979)      (2,730)   NM      (979)     NM      (979)
(income), net
Income before tax    4,888      54,910    -91.1%  71,170    29.6%   92,965
Income tax           1,833      20,866    -91.2%  26,689    27.9%   34,862
Net income           $ 3,055    $ 34,044  -91.0%  $ 44,481  30.7%   $ 58,103
                                                                    
Weighted average                                                    
shares outstanding:
 Basic               63,918     61,368            63,918            83,449
 Diluted             65,366     63,529            65,366            84,897
                                                                    
Earnings per share:                                                 
 Basic               $ 0.05     $ 0.55    -90.9%  $ 0.70    27.3%   $ 0.70
 Diluted             $ 0.05     $ 0.54    -90.7%  $ 0.68    25.9%   $ 0.68
                                                                    
SELECTED SEGMENT                                                    
DATA:
Revenue:                                                            
 Unified             $ 367,568  $ 359,647 2.2%                      
Communications 
 Communication       296,451    281,737   5.2%                      
Services 
 Intersegment        (3,795)    (2,322)   NM                        
eliminations
 Total               $ 660,224  $ 639,062 3.3%                      
                                                                    
Depreciation:                                                       
 Unified             $ 15,448   $ 15,097  2.3%                      
Communications 
 Communication       12,359     11,211    10.2%                     
Services 
 Total               $ 27,807   $ 26,308  5.7%                      
                                                                    
Amortization:                                                       
 Unified
Communications -     $ 6,224    $ 7,249   -14.1%                    
SG&A
 Communication       2,589      2,129     21.6%                     
Services - COS
 Communication       7,737      7,629     1.4%                      
Services - SG&A
 Corporate -
deferred financing   4,654      3,393     37.2%                     
costs
 Total               $ 21,204   $ 20,400  3.9%                      
                                                                    
Share-based                                                         
Compensation
 Unified             $ 1,479    $ 17      NM                        
Communications 
 Communication       1,711      116       NM                        
Services 
 Total               $ 3,190    $ 133     NM                        
                                                                    
Cost of services:                                                   
 Unified             $ 157,106  $ 148,740 5.6%                      
Communications 
 Communication       155,391    144,742   7.4%                      
Services 
 Intersegment        (3,430)    (1,780)   NM                        
eliminations
 Total               $ 309,067  $ 291,702 6.0%                      
                                                                    
Selling, general
and administrative                                                  
expenses:
 Unified             $ 132,598  $ 113,770 16.5%                     
Communications 
 Communication       125,635    119,889   4.8%                      
Services 
 Intersegment        (366)      (541)     NM                        
eliminations
 Total               $ 257,867  $ 233,118 10.6%                     
                                                                    
Operating income:                                                   
 Unified             $ 77,865   $ 97,136  -19.8%  $ 103,278 6.3%    
Communications 
 Communication       15,425     17,106    -9.8%   35,138    105.4%  
Services 
 Total               $ 93,290   $ 114,242 -18.3%  $ 138,416 21.2%   
                                                                    
Operating margin:                                                   
 Unified            21.2%      27.0%             28.1%              
Communications 
 Communication      5.2%       6.1%              11.9%              
Services 
 Total              14.1%      17.9%             21.0%              
                                                                    
SELECTED OPERATING                                                  
DATA:
Revenue from
platform-based       $ 481,438  $ 448,752 7.3%                      
services ^(5)
Revenue from
agent-based          $ 181,372  $ 192,817 -5.9%                     
services 

NM: Not Meaningful

 CONDENSED BALANCE SHEETS 
 (Unaudited, in thousands) 
                                                                       
                                              Mar. 31,    Dec. 31,    %
                                              2013        2012        Change
Current assets:                                                        
 Cash and cash equivalents                    $ 651,136   $ 179,111   263.5%
 Trust and restricted cash                    14,886      14,518      2.5%
 Accounts receivable, net                     442,608     444,411     -0.4%
 Deferred income taxes receivable             21,691      13,148      65.0%
 Prepaid assets                               53,632      42,129      27.3%
 Other current assets                         71,398      67,775      5.3%
 Total current assets                         1,255,351   761,092     64.9%
Net property and equipment                    356,667     364,896     -2.3%
Goodwill                                      1,812,253   1,816,851   -0.3%
Other assets                                  516,661     505,314     2.2%
 Total assets                                 $3,940,932  $3,448,153  14.3%
                                                                       
Current liabilities                           $ 957,506   $ 457,668   109.2%
Long-term obligations                         3,587,435   3,992,531   -10.1%
Other liabilities                             246,149     247,640     -0.6%
 Total liabilities                            4,791,090   4,697,839   2.0%
                                                                       
Stockholders' deficit                         (850,158)   (1,249,686) 32.0%
 Total liabilities and stockholders' deficit  $3,940,932  $3,448,153  14.3%
                                                                       

NM: Not Meaningful

Reconciliation of Non-GAAP Financial Measures

Adjusted Operating Income Reconciliation

Adjusted Operating Income is a non-GAAP measure that reflects the Company's
Operating Income before the impact of IPO-related expenses, expenses
terminated in connection with the IPO and non-cash items. Adjusted Operating
Income is not a measure of financial performance under generally accepted
accounting principles ("GAAP"). Adjusted Operating Income should not be
considered in isolation or as a substitute for Operating Income or other
profitability data prepared in accordance with GAAP. Adjusted Operating
Income, as presented, may not be comparable to similarly titled measures of
other companies. Set forth below is a reconciliation of Adjusted Operating
Income to Operating Income. 

 Reconciliation of Adjusted Operating Income from Operating Income 
Amounts in thousands                                              
                                            Three Months Ended Mar. 31, 
                                           2013       2012       % Change
Operating income                            $ 93,290   $ 114,242 -18.3%
Amortization of acquired intangible assets  13,961     14,878     
Share-based compensation                    3,190      133        
Sponsor management/termination fee          25,000     1,000      
IPO bonus                                   2,975      --         
Adjusted operating income                   $ 138,416  $ 130,253 6.3%

Adjusted Net Income, Adjusted EPS, Pro forma Adjusted Net Income and Pro forma
Adjusted EPS Reconciliation

Adjusted Net Income is a non-GAAP measure that reflects the Company's Net
Income before the impact of IPO-related expenses, expenses terminated in
connection with the IPO, bond redemption premiums and non-cash items. Adjusted
Net Income is not a measure of financial performance under GAAP. Adjusted Net
Income should not be considered in isolation or as a substitute for Net Income
or other profitability metrics prepared in accordance with GAAP. Adjusted Net
Income, as presented, may not be comparable to similarly titled measures of
other companies. Set forth below is a reconciliation of Adjusted Net Income to
Net Income. 

Pro forma Adjusted Net Income represents Adjusted Net Income after giving
effect to pro forma adjusted interest expense. Pro forma adjusted interest
expense reflects the impact of lower debt balances and lower interest rates
post IPO. This includes the savings expected for the full quarter from the
anticipated redemption of the $450 million senior subordinated notes and the
savings for the full quarter associated with the pricing amendment to the
senior secured term loan facilities as if these transactions had been
completed January 1, 2013. 

 Reconciliation of Adjusted Net Income & Pro forma Net Income from Net Income 
Amounts in thousands                                                   
                                                Three Months Ended Mar. 31, 
                                               2013        2012       % Change
Net income                                      $ 3,055     $ 34,044  -91.0%
                                                                       
Amortization of acquired intangible assets      13,961      14,878     
Amortization of deferred financing costs        4,654       3,393      
Share-based compensation                        3,190       133        
Sponsor management/termination fee              25,000      1,000      
IPO bonus                                       2,975       --         
Subordinated debt call premium                  16,502      --         
Pre-tax total                                   66,282      19,404     
Income tax expense on adjustments               24,856      7,665      
Adjusted net income                             $ 44,481    $ 45,783  -2.8%
                                                                       
Diluted shares outstanding                      65,366      63,529     
Adjusted EPS - diluted                          $ 0.68      $ 0.72    -5.6%
                                                                       
Pro forma interest expense change, net of tax   $ 13,622               
Pro forma adjusted net income                   $ 58,103    N/A        
                                                                       
Pro forma diluted shares outstanding            84,897                 
Pro forma adjusted EPS - diluted                $ 0.68      N/A        

Free Cash Flow Reconciliation

The Company believes Free Cash Flow provides a relevant measure of liquidity
and a useful basis for assessing the Company's ability to fund its activities,
including the financing of acquisitions, debt service, stock repurchases and
distribution of earnings to shareholders. Free Cash Flow is calculated as Cash
Flows from Operations less cash Capital Expenditures. Free Cash Flow is not a
measure of financial performance under GAAP. Free Cash Flow should not be
considered in isolation or as a substitute for Cash Flows from Operations or
other liquidity measures prepared in accordance with GAAP. Free Cash Flow, as
presented, may not be comparable to similarly titled measures of other
companies. Set forth below is a reconciliation of Free Cash Flow to Cash Flows
from Operations. 

 Reconciliation of Free Cash Flow from Operating Cash Flow 
Amounts in thousands                                
                              Three Months Ended Mar. 31, 
                             2013        2012      % Change
Cash flows from operations    $ 98,666    $ 91,663 7.6%
Cash capital expenditures     33,542      34,073   -1.6%
Free cash flow                $ 65,124    $ 57,590 13.1%

EBITDA and Adjusted EBITDA Reconciliation

The common definition of EBITDA is "Earnings Before Interest Expense, Taxes,
Depreciation and Amortization." In evaluating liquidity and performance, the
Company uses earnings before interest expense, share based compensation,
taxes, depreciation and amortization, and one-time IPO-related expenses, or
"Adjusted EBITDA." EBITDA and Adjusted EBITDA are not measures of financial
performance or liquidity under GAAP. EBITDA and Adjusted EBITDA should not be
considered in isolation or as a substitute for Net Income, Cash Flows from
Operations or other income or cash flows data prepared in accordance with
GAAP. EBITDA and Adjusted EBITDA, as presented, may not be comparable to
similarly titled measures of other companies. EBITDA and Adjusted EBITDA are
used by certain investors as measures to assess the Company's ability to
service debt. Adjusted EBITDA is also used in the Company's debt covenants,
although the precise adjustments used to calculate Adjusted EBITDA included in
the Company's credit facility and indentures vary in certain respects among
such agreements and from those presented below. Certain adjustments to
Adjusted EBITDA were excluded from the calculations below consistent with the
adjustments made for Adjusted Operating Income and Adjusted Net
Income. Adjusted EBITDA, as calculated for purposes of the Company's debt
covenants, includes additional adjustments to EBITDA in the three months ended
March 31, 2013 and March 31, 2012 of $4,376 and $8,086, respectively. Set
forth below is a reconciliation of EBITDA and Adjusted EBITDA to Cash Flows
from Operations and Net Income. 

 Reconciliation of EBITDA and Adjusted EBITDA from Operating Cash Flow 
Amounts in thousands                              Three Months Ended Mar. 31, 
                                                 2013           2012
Cash flows from operating activities              $ 98,666       $ 91,663
Income tax expense                                1,833          20,866
Deferred income tax expense                       (4,343)        (11,518)
Interest expense and other financing charges      89,694         62,412
Provision for share-based compensation            (3,190)        (133)
Amortization of deferred financing costs          (4,654)        (3,393)
Asset impairment                                  --             (3,715)
Other                                             (28)           (79)
Changes in operating assets and liabilities, net  (39,039)       4,534
of business acquisitions
EBITDA                                            138,939        160,637
Provision for share-based compensation            3,190          133
Sponsor management/termination fee and IPO bonus  27,975         1,000
Adjusted EBITDA                                   $ 170,104      $ 161,770

 
 Reconciliation of EBITDA and Adjusted EBITDA from Net Income 
Amounts in thousands                              Three Months Ended Mar. 31, 
                                                 2013           2012
Net income                                        $ 3,055        $ 34,044
Interest expense and other financing charges      89,694         62,412
Depreciation and amortization                     44,357         43,315
Income tax expense                                1,833          20,866
EBITDA                                            138,939        160,637
Provision for share-based compensation            3,190          133
Sponsor management/termination fee and IPO bonus  27,975         1,000
Adjusted EBITDA                                   $ 170,104      $ 161,770
                                                                 
                                                                 
Amounts in thousands                              Three Months Ended Mar. 31, 
                                                 2013           2012
Cash flows from operating activities              $ 98,666       $ 91,663
Cash flows used in investing activities           $ (33,963)     $ (110,652)
Cash flows from financing activities              $ 409,581      $ 20,266

 

(1) See Reconciliation of Non-GAAP Financial Measures beginning on page 10.

(2) Free Cash Flow is calculated as Cash Flows from Operations less cash
Capital Expenditures.

(3) Reflects the impact of post-IPO reduced debt balances and lower interest
rates arising from the Company's pricing amendment to its senior secured term
loan facilities and anticipated redemption of the $450 million senior
subordinated notes as if these transactions had been completed on January 1,
2013.

(4) Revenue from an acquired entity includes the March 23, 2012 acquisition of
HyperCube in the Communication Services segment. Revenue presented is through
March 23, 2013.

(5) Platform-based businesses include the Unified Communications segment,
Intrado, West Interactive and HyperCube.

CONTACT: AT THE COMPANY:
         David Pleiss
         Investor Relations
         (402) 963-1500

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