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RMH Teleservices Announces Record Revenues, 2000 EPS of $.34 VS. $.19Fiscal 2000 Operating Income Up 143%BRYN MAWR, PA - November 15, 2000 - RMH Teleservices, Inc. (Nasdaq NMS:RMHT) today announced financial results for the fourth quarter and year ended September30, 2000. See attached tables. Fiscal 2000 Financial Highlights - versus fiscal 1999 · Revenues increased 65% to $132.1 million · Operating income rose 143% to $5.6 million · Net income grew 93% to $3.0 million or $.34 per diluted share Fourth Quarter Financial Highlights - versus the fiscal 1999 fourth quarter · Revenues were up 40% to $37.2 million · Operating income increased 85% to $1.6 million · Net income rose 71% to $885,000 or $.10 per diluted share John Fellows, Chief Executive Officer of RMH, stated, "The fourth quarter capped an exciting fiscal 2000 for RMH Teleservices. We generated record revenues and posted strong earnings performance in the fourth quarter and in the fiscal year. We continued to diversify our revenue base as we experienced dynamic growth from clients in all of our principal industry verticals - telecommunications, financial services, and insurance." Mr. Fellows continued, "Also during the quarter we commenced operations in our newest industry vertical, the technology sector. We are targeting leading software, hardware and Internet services companies with growing customer relationship management needs, and have already announced several significant new client agreements. We believe this sector could be our largest by the fourth quarter of fiscal 2001." Noah Asher, Chief Financial Officer of the Company, commented, "We remain focused on a diverse revenue mix. In the fourth quarter, telecommunications clients accounted for 37% of revenues, financial services customers represented 35%, insurance brought in 27%, and our newest industry vertical, technology, accounted for 1%. As the Company expanded over the year, our operating margin in the fourth quarter improved to 4.4% compared to 3.3% during the same period last year." Mr. Asher continued, "We believe RMH's solid financial position is an important competitive advantage and tool for pursuing continued growth. We closed the year with cash of $5.2 million and no long-term debt." Mr. Fellows concluded, "We are excited about the future prospects for the Company due to the continued expansion of the customer relationship management industry, the steady growth of our existing clients and target markets, the strong relationships we maintain with our blue-chip customer base, and our reputation for high quality value- added services. As previously announced, in response to the significant demand we are enjoying, we will be adding over 1,600 workstations during our current expansion phase to bring our total to 5,400." Conference Call RMH Teleservices management will be conducting a financial community conference call on Thursday, November 16, 2000 at 9:00am ET. Interested parties may participate in the call by dialing (212) 896-6061 approximately 10 minutes before the call is scheduled to begin. The conference call will also be broadcast live over the Internet at http://www.vcall.com Entering "RMHT" in the search window will access a link to the call. To listen to the live call, go to the website at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at http://www.vcall.com A recorded phone replay of the call will also be available from 11:00 a.m. on Thursday, November 16, 2000 to 11:00 a.m. on Friday, November 17, 2000. Listeners may dial 800-633-8284 and use the code 16781622 for the replay. About RMH Teleservices RMH Teleservices, Inc. is a leading provider of customer relationship management services and e-commerce solutions for major corporations in the technology, telecommunications, financial services, and insurance industries. Founded in 1983, the Company is headquartered in Bryn Mawr, Pennsylvania, employs more than 6,500 people and has 23 facilities throughout the United States and Canada. To learn more about RMH Teleservices, please reference the Company's web site at http://www.rmht.com This news release contains forward-looking statements. Such forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or qualified and certain of which are discussed from time to time in the Company's filings with the Securities and Exchange Commission. The risks and uncertainties that may affect the disclosures contained herein include, but are not limited to: (i) reliance on principal client relationships in the insurance, financial services and telecommunications industries; (ii) fluctuations in quarterly results of operations due to the timing of clients' telemarketing campaigns, the commencement and expiration of contracts, unanticipated delays to the opening of new call centers and expansion of existing call centers, the amount of new business generated by the Company, changes in the Company's revenue mix among its various customers, bonus arrangements continuing to be negotiated with clients, and if negotiated, any amount being earned, the timing of additional selling, general and administrative expenses to acquire and support such new business, and changes in competitive conditions affecting the telemarketing industry; (iii) difficulties of managing growth profitably; (iv) dependence on the services of the Company's executive officers and other key operations and technical personnel; (v) changes in the availability of qualified employees; (vi) fluctuations in US dollar and Canadian dollar exchange rates; (vii) delivery on a timely basis and performance of automated call-processing systems and other technological factors; (viii) reliance on independent long-distance companies; (ix) changes in government regulations affecting the teleservices and telecommunications industries; (x) competition from other outside providers of teleservices and in-house telemarketing operations of existing and potential clients; (xi) competition from providers of other marketing formats, such as direct mail and emerging strategies such as interactive shopping and ma! rketing over the Internet; and (xii) realization of revenues, unexpected expenses, and viability of RMH's joint venture 365biz.com LP. Editorial Contact: Loren Mortman The Equity Group Inc. 212-836-9604 lmortman@equityny.com top of page |
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