West Corp (WSTC) Divestiture of Agent Services Call Transcript

Our first order business is to make sure we take care of our employees and take care of our customers and then address as much of that as we can. I think overtime, hopefully some of those cross go away and some of them will be overhead absorbed by the existing and new businesses that are part of West.

William Warmington, Wells Fargo Securities, LLC
On the client side, does AT&T continue to be your biggest client going forward?

Tom Barker, Chairman and Chief Executive Officer, West Corporation
Well, I think you have heard me say it. We have got one client that maybe between 3% and 4%. That is well below the disclosable threshold of anybody, so I do not think we are in a position to discuss that.

William Warmington, Wells Fargo Securities, LLC
Okay. The last question for you is how we should think about the free cash flow generation of the remaining businesses going forward,either an absolute dollar amount or percentage of EBITDA or percentage of revenue to try to give us a sense of remodelingthat?

Tom Barker, Chairman and Chief Executive Officer, West Corporation
We are going to give you, I think, that data point on all three fronts on our 2015 call.

William Warmington, Wells Fargo Securities, LLC
Okay. Well, it sounds like the January 28 will be a big day then.

Tom Barker, Chairman and Chief Executive Officer, West Corporation
It should be a good call.

William Warmington, Wells Fargo Securities, LLC
All right. Thank you very much.

Operator
Your next question comes from the line of Adam Dahms with Baird. Please go ahead.

Adam Dahms,Robert W. Baird& Co.
Hey guys. Thanks for taking my questions.

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

Adam Dahms,Robert W. Baird & Co.
Good morning. First off, can you give us a sense on what the growth has been in those businesses you sold maybe over the last year or so?

Tom Barker, Chairman and Chief Executive Officer, West Corporation
Well, we don’t break out the revenue and profitability for the individual business. You do have good information from us in every queue, Adam, that talks about our labor intensive businesses and how they are performing, but we have never broken out the revenue and profit profiles for those. This is not the time for us to do that, but I think what is important to understand is the businesses that we are keeping have very, very attractive growth and profit profiles and we will give you more visibility into that in 2015.

Adam Dahms,Robert W. Baird & Co.
That is fine. That makes sense. You guys said you are kind of weighing deleveraging versus potential acquisitions, any thoughts on the timing of kind of when you are going to use that cash?

Tom Barker, Chairman and Chief Executive Officer, West Corporation
Well, I think the first challenge for us is to get the cash, so we have got to close this business some time the first quarter. At that point in time, we are going to look at what is our cost to capitals as opposed to what the market is charging for that. We will look at what opportunities we have to drive initial transactions to West Corporation. We look at the other cash on hand, cash needs for the next couple of quarters, and the surplus cash we expect the business to throw off and only, after we have all that data in front of us, I think, are we in a position to make an intelligent decision.

Adam Dahms,Robert W. Baird & Co.
That makes sense. Then I guess just one quick last one on the corporate overhead, that 13 million. I know you said it all cannot go away, but you are going to kind of work to reduce it over the next year. Any chance that could kind of go up in the near-term due to like, retraining costs or anything like that?