West Corp (WSTC) Divestiture of Agent Services Call Transcript

All of these points will be considered to make sure that we optimize the value of the proceeds in the sale. This is what our management team does and this is what our board of directors do on a regular basis.

Before we open up the call to your questions, please keep in mind that the purpose of this call is to discuss this transaction. We have not yet closed our 2014 financials so we will not be able to provide details for this year. We will also not discuss 2015 and its projections. We have scheduled the Fourth Quarter Earnings Call for January 28 and we will discuss 2015 guidance and what West Corporation looks like after this transaction at that time.  At this time, I would like to open up for questions that relate to the information provided on this call and in our press release.

Question and Answer Session:

Operator

(Operator Instructions). Our first question will come from the line of Sara Gubins with Bank of America Merrill Lynch. Please go ahead.

 Sara Gubins,Bank of America Merrill Lynch

Hi and thanks.Good morning.

Tom Barker, Chairman and Chief Executive Officer, West Corporation

Good morning.

Sara Gubins,Bank of America Merrill Lynch
From a seasonality perspective, I just wanted to check if there’s anything worth noting about the businesses that you are selling?

Tom Barker, Chairman and Chief Executive Officer, West Corporation
No. There is pretty much consistency between the quarters of these businesses when taken in balance. Some of the collection companies may have a little bit of seasonality from time-to-time when the consumer gets the tax refunds that could impact it, but that is more relative to this total pool of revenues. That was pretty steady.

Sara Gubins, Bank Of America Merrill Lynch
Okay. Are these all currently in communication services?

 Tom Barker, Chairman and Chief Executive Officer, West Corporation 

Yes.

Sara Gubins, Bank Of America Merrill Lynch

Okay. Just from a cross-sell perspective, are these services that clients who are buying other capabilities from you are currently using?I am wondering if you are expecting any fallout from these segments being under different ownership for the rest of your business.

Tom Barker, Chairman and Chief Executive Officer, West Corporation
No. Starting yesterday, we had some discussions with some of our largest clients. You are right. Cross-selling has been very, very important for West Corporation and we are going to continue to provide services to the clients we have got existing relationships and we are confident in our ability to do a really good job for these guys and I expect them to stay with us. I do not expect this divesture to have an impact on our ability to provide services for clients that are customers of these businesses we are selling.

Sara Gubins, Bank Of America Merrill Lynch
Great. Okay, good. Thank you.

 Operator

Your next question comes from the line of Gary Bisbee with RBC Capital Markets. Please go ahead.

Gary Bisbee, RBC Capital Markets

Hi guys. Good morning.

Tom Barker, Chairman and Chief Executive Officer, West Corporation
Good morning, Gary.

Gary Bisbee, RBC Capital Markets

Is this something you could have done for years. Any comments here on why now? I guess you said you thought valuations were attractive and that was one that is accurate. But anything?

Tom Barker, Chairman and Chief Executive Officer, West Corporation
Sure. You are right, Gary. This is something that has been brought up on our quarterly calls. It is something our management team has looked at and our board has looked at a number of times over the years, but we needed a time when the businesses were performing well, when the peers had good track records and valuations, where there was access to attractive capital to finance a transaction like this. It is helpful that there is not a lot of excess capacity in the markets right now that helps profitability of these companies and goes right to valuations. We thought the timing was right, that we could drive good value, and that we would have a good sized list of prospects to talk to to ensure a very competitive environment and process.