ACCESS WORLDWIDE COMMUNICATIONS, INC. 
By ARLINGTON, Va.,
For the Three Months Ended
Our revenues decreased by
We reported a net loss from continuing operations of
Total weighted average diluted shares outstanding for the quarters ended
For the Twelve Months ended
Our revenues increased
We reported net loss from continuing operations of
Total weighted average common shares outstanding for year ended
Access Worldwide is an established marketing and BPO services company that
provides a variety of sales and communication services. Our spectrum of
services include the full range of inbound and outbound voice services such as
customer service, customer acquisition, helpdesk, and a growing list of IT and
back office services among others. Headquartered in Arlington, Virginia,
Access Worldwide has about 1,000 employees in offices throughout the
This press release contains forward-looking statements. Such statements
involve known or unknown risks, uncertainties and other factors that may cause
the actual results to differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual results to
differ materially from those expressed or implied by such forward-looking
statements include, but are not limited to, the following: our ability to
continue as a going concern if we are unable to generate cash flow and income
from operations; competition from other third-party providers and those
clients and prospects who may decide to do work in-house that we currently do
for them; potential consumer saturation reducing the need for services; our
ability and our clients ability to comply with state, federal and industry
regulations; our reliance on a limited number of major clients; the reduction
in services performed for or the loss of one or more major clients; our
ability to develop or fund the operations of new products or service
offerings; our reliance on technology; our reliance on key personnel and labor
force and our ability to recruit additional personnel. For a more detailed
discussion of these risks and others that could affect results, see our
filings with the Securities and Exchange Commission, including the risk
factors section of Access Worldwide's Annual Report on Form 10-K for the year
ended
Access Worldwide Communications, Inc.
Condensed Consolidated Balance Sheets
December 31,
ASSETS 2007 2006
Current Assets:
Cash and cash equivalents $777,354 $1,186,980
Certificate of Deposit $883,553 -
Restricted cash 123,000 123,000
Accounts receivable, net of
allowance for doubtful accounts
of $10,983 and $99,130;
respectively 4,739,401 6,956,218
Unbilled receivables - 7,750
Other current assets, net 465,364 831,958
Total current assets 6,988,672 9,105,906
Property and equipment, net 3,815,750 3,374,575
Investments - 1,650,000
Restricted cash 220,000 343,000
Other assets, net 516,176 386,127
Total assets $11,540,598 $14,859,608
LIABILITIES AND COMMON STOCKHOLDERS
EQUITY (DEFICIT)
Current Liabilities:
Current portion of indebtedness $2,623,062 $438,866
Current portion of indebtedness
- related parties - 1,750,000
Accounts payable 826,965 1,315,785
Accrued expense 364,396 654,140
Accrued salaries, wages and
related benefits 466,042 586,107
Customer deposits 969,296 1,210,146
Deferred revenue 240,515 669,290
Accrued interest 21,664 -
Total current liabilities 5,511,940 6,624,334
Long-term portion of indebtedness 249,845 259,256
Other long-term liabilities 423,511 530,992
Convertible Notes, net - 4,625,490
Mandatorily redeemable preferred
stock, $0.01 par value: - -
1,000,000 shares authorized,
40,000 shares issued and
outstanding 4,000,000 4,000,000
Total liabilities 10,185,296 16,040,072
Commitments and contingencies
Common stockholders' equity (deficit):
Common stock, $0.01 par value:
voting 100,000,000 and
40,000,000 shares authorized;
31,219,146 and 17,340,065
shares issued and outstanding,
respectively 312,191 173,401
Additional paid-in capital 78,884,981 71,362,793
Accumulated deficit (77,721,021) (72,716,658)
Less: treasury stock at cost,
209,808 shares (120,849) -
Total common stockholders'
equity (deficit) 1,355,302 (1,180,464)
Total liabilities and common
stockholders' equity (deficit) $11,540,598 $14,859,608
Access Worldwide Communications, Inc.
Condensed Consolidated Statements of Operations
Unaudited
For the Three Months Ending For the Twelve Months Ending
December 31, December 31,
2007 2006 2007 2006
Revenues $7,223,190 $8,466,711 $32,831,193 $27,711,626
Cost and expenses:
Cost of services 6,199,110 6,337,666 26,276,214 21,315,235
Selling,
general and
administrative
expenses 1,987,202 1,958,671 6,942,956 6,557,701
Depreciation
and
amortization
expense 400,013 248,694 1,463,493 1,037,856
Total costs
and
expenses 8,586,325 8,545,031 34,682,663 28,910,792
Loss from
operations (1,363,135) (78,320) (1,851,470) (1,199,166)
Interest
expense, net (92,221) (271,482) (3,042,840) (3,051,906)
Loss from
continuing
operations (1,455,356) (349,802) (4,894,310) (4,251,072)
Discontinued
operations:
(Loss) from
discontinued
operations 610 138,790 (110,053) (591,631)
Gain on disposal
of segment, net
of income tax
expense of $0 - (470,845) - 7,728,775
610 (332,055) (110,053) 7,137,144
Net (loss) income (1,454,746) (681,857) (5,004,363) 2,886,072
Basic and
diluted (loss)
income per
share of
common stock:
Continuing
operations $(0.05) $(0.02) $(0.19) $(0.25)
Discontinued
operations $0.00 $(0.02) $- $0.41
Net (loss)
income $(0.05) $(0.04) $(0.20) $0.17
Weighted average
common shares
outstanding 31,092,481 17,340,065 25,482,446 17,340,065
Access Worldwide Communications, Inc.
Consolidated Statements of Cash Flows
For the Years Ended December 31,
2007 2006
Cash flows from operating activities:
Net (loss) income $(5,004,363) $2,886,072
Adjustments to reconcile net
(loss) income to net cash provided
by (used in) operating activities:
Depreciation and amortization 1,463,493 1,037,856
Allowance for doubtful accounts (87,838) 98,821
Amortization of deferred
compensation 10,500 10,500
Amortization of deferred
financing costs 210,743 600,239
Accretion of discount on
Convertible Notes 1,009,510 691,727
Gain on sale of discontinued
operations - (7,728,775)
Interest expense paid in common
shares 1,729,806 -
Share based compensation expense 104,032 227,119
Changes in assets and liabilities
from discontinued operations (45,135) 734,419
Changes in operating assets and
liabilities:
Accounts receivable 2,150,617 (4,253,286)
Other assets 240,373 (449,720)
Accounts payable, accrued
expenses and other liabilities (761,952) 287,465
Accrued salaries, wages and
related benefits (115,538) 301,441
Customer deposits (48,392) (2)
Deferred revenue (428,775) 325,603
Accrued interest and related
party expenses 21,664 (778,167)
Net cash provided by (used in)
operating activities 448,745 (6,008,688)
Cash flows from investing activities:
Additions to property and equipment,
net (1,455,174) (564,988)
Write offs of property and
equipment from discontinued
operations, net 15,351 (187,549)
Net proceeds from sale of
discontinued operations - 9,751,470
Investments in CD and variable
rate preferred 766,647 (1,650,000)
Decrease in restricted cash 123,000 314,000
Net cash (used in) provided by
investing activities (550,176) 7,662,933
Cash flows from financing activities:
Payments on capital leases (519,775) (383,146)
Proceeds from issuance of common stock - 5,535
Proceeds from exercise of common
stock options and warrants 20,390 -
Net borrowings under Credit Facility
and Debt Agreement 2,238,487 (4,454,388)
(Payments) Borrowings under not
payable to related party (1,750,000) 2,000,000
Repayment of Convertible Notes - (115,000)
Loan origination fees (145,334) (140,000)
Proceeds from issuance of
Convertible Notes - 1,500,000
Payments under note payable to
related party - (602,334)
Payments on equipment and
insurance financing, net (13,522) (17,122)
Payments on capital leases from
discontinued operations (17,592) (16,736)
Purchase of common stock from investor (120,849) -
Net cash (used in) financing
activities (308,195) (2,223,191)
Net (decrease) in cash and cash
equivalents (409,626) (568,946)
Cash and cash equivalents, beginning
of year 1,186,980 1,755,926
Cash and cash equivalents, end of year $777,354 $1,186,980
Supplemental disclosure of cash flow
information:
Cash paid during the period for:
Interest (note: $1,000,000 was paid for
early termination of credit facility) $252,874 $1,896,767
Non-Cash Investing and Financing
Activities:
Equipment acquisitions through capital
leases $474,651 $24,290
Issuance of warrants on Note $171,750 $158,000
Conversion of Convertible Notes with
interest $5,635,000 $-
Issuance of common stock to pay bonuses $- $49,147
SOURCE Access Worldwide Communications, Inc.
