Press Release
| realmarket.com |
|
Directory Suppliers Associations Publications Stock Index News Search Home Calendar of Events Find event | Submit event Career Corner Find job | Submit job RealMarket Today! Past Issues Subscribe Unsubscribe |
|
Company Profile Company Web Site |
APAC CUSTOMER SERVICES REPORTS STRONG SECOND QUARTER RESULTS
Positive Earnings Momentum Continues and Business Prospects Remain Very Strong as Company Expands into Broader Solutions Segment Robert F. Bernard Elected to APAC Board of Directors
(Deerfield, IL, August 2, 2000) - APAC Customer Services, Inc. (NASDAQ: APAC), a leading provider of comprehensive customer relationship management (CRM) solutions for Fortune 1000 and “dot.com” companies, today reported strong consolidated financial results for its second quarter and first six months of 2000.Net income was $4.0 million for the second quarter of 2000 on net revenue of $118.6 million. This compares to net income of $1.1 million for the second quarter of 1999 on net revenues of $103.0 million. Earnings per diluted share increased 300% to $0.08 in the second quarter of 2000 from $0.02 in the second quarter of 1999. For the first six months, net income was $7.7 million or $0.15 per diluted share for 2000 on net revenue of $237.0 million. This compares to $0.9 million or $0.02 per diluted share for 1999 on net revenue of $210.4 million.
“Our improved financial results and continued growth are very encouraging. We are successfully executing our operational and strategic business plans, making investments in technology, infrastructure and new business growth initiatives while still improving our operating and net profit margins. Operating income margin increased to 7.8% in the second quarter from 7.3% in the first quarter and 5.4% a year ago. In addition, we have further strengthened our financial position evidenced by increased cash reserves and lower debt," said Peter M. Leger, President and Chief Executive Officer of APAC. “We are well-positioned for growth across all our business lines. We continue to see strong market acceptance of our e-CRM strategy and e.PACSM platform and we are selectively adding new outsourced accounts in our customer care and acquisition businesses. In addition, we are taking aggressive steps to expand into the solutions integration area and to maximize our presence in the broader market for CRM solutions and services which is ten times the size of the traditional outsourced market for CRM services.”
Ted Schwartz, Chairman, said, “I am very pleased with the continued progress Peter and his management team have made in effectively executing against our strategic and operating initiatives. We remain very confident with our short and long-term strategies and direction for the company. We have identified the key drivers of our operational and strategic plans to achieve sustained long-term earnings growth especially with our new solutions integration business unit - Aligned Customer Relationship SolutionsSM (ACRS) - as well as with CustomerAssistance.comSM for the high growth area of multimedia eCRM services and solutions.” “I am also very pleased to announce the addition of Robert F. Bernard, Chairman and CEO of marchFIRST, to APAC’s Board of Directors. Bob is an accomplished business leader who brings both a global and Internet solutions consultative perspective to APAC, which complements our business expansion plans and strategies.” Headquartered in Chicago, marchFIRST is a leading global professional services company.
For the second quarter, net revenues increased 15% to $118.6 million in 2000 from $103.0 million in 1999. These second quarter 2000 revenues were slightly higher than the $118.4 million reported in the first quarter of 2000 but in line with management’s expectation. Customer Care business unit net revenues increased 12% in the second quarter to $74.0 million in 2000 from $66.1 million in 1999. For the first six months, Customer Care net revenues increased 12% to $148.2 million in 2000 from $132.3 million in 1999. Customer Acquisition business unit net revenues increased 18% in the second quarter to $43.6 million in 2000 from $36.9 million in 1999. For the first six months, Customer Acquisition business unit net revenues increased 12% to $87.1 million in 2000 from $78.1 million in 1999. Net revenue for the CustomerAssistance.com business unit, which began operations in late 1999, was $1.0 million in the second quarter of 2000 and $1.7 million for the first six months. Business awarded to CustomerAssistance.com as of the end of the second quarter represents an annual run rate of approximately $12.5 million.
Earnings before interest, taxes, depreciation and amortization were $16.5 million for the second quarter of 2000 compared to $13.8 million for the second quarter of 1999. For the first six months, EBITDA was $34.5 million for 2000 compared to $26.0 million for 1999.
About APAC Customer Services and CustomerAssistance.com
APAC Customer Services, Inc. (NASDAQ: APAC) is a leading provider of comprehensive customer relationship management (CRM) solutions for Fortune 1000, mid-tier and “dot.com” companies in the financial services, telecommunications, retail, insurance, technology, automotive, travel and health care sectors.
CustomerAssistance.com delivers a full suite of electronic CRM (e-CRM) products and services, including e.PACSM, a multimedia platform that supports a broad range of integrated, e-commerce-based customer interaction capabilities.
To help its clients better manage relationships with their customers, APAC Customer Services develops and delivers end-to-end customer care, customer acquisition and Web-enabled CRM programs. Through these offerings, APAC Customer Services offers superior, real-time customer care via the Web and traditional call centers. Founded in 1973 and headquartered in Deerfield, Illinois, the company employs approximately 18,000 people and has 55 customer interaction centers across the nation. For more information, call 1-800-OUTSOURCE or visit www.apaccustomerservices.com or www.customerassistance.com.
About marchFIRST
marchFIRST is a leading global professional services company. It creates winners in the new digital economy by helping companies build visionary business models, brands, systems and processes. This multidisciplinary approach empowers companies to transform their business, drive innovation and become market leaders. Headquartered in Chicago, the Company has approximately 9,400 employees in 14 countries worldwide. Its Web site is www.marchFIRST.com.
Forward Looking Statements
This release contains certain statements that describe the Company's assessments of future business conditions and the outlook for the Company based on available information. Whenever possible, the Company has identified these "forward-looking" statements by words such as "anticipates", "believes", "expects", "estimates", and similar phrases. These forward-looking statements are based upon assumptions the Company believes are reasonable; however, such statements are subject to risks and uncertainties which could cause the Company's actual results to differ materially from those expressed in, or implied by these statements. Readers are encouraged to review the section captioned “Information Regarding Forward-Looking Statements” in the Form 10-K for the year ended January 2, 2000, and the disclosures contained in the Company's 10-Q filed with the Securities and Exchange Commission for the quarter ended April 2, 2000 which describes other important factors that may impact the Company's business, results of operations and financial condition.
Editorial Contact:
Nicole Thome
The Townsend Agency
(858) 457-4888 x163
nicolet@townsendagency.com
top of page
© 2000 Real Market Research Corporation. Real Market is a registered trademark.