RMH Teleservices Inc. plans to close several U.S. outbound facilities as part of a plan to expand its inbound CRM capabilities.
The Newtown Square, PA-based company expects its expanded CRM services to represent $35 million in additional revenue, while outbound revenues will decline $20-30 million on an annual basis. RMH is in the process of converting 1,000 existing outbound workstations to inbound stations. Capital investments in facility conversions will total approximately $3 million this fiscal year.
In the second quarter ended March 31, RMH expects to record associated facility closing charges and other items totaling approximately $4.3 million. For the quarter, RMH expects to report adjusted operating income of approximately $2.7 million as compared to an unadjusted operating loss of approximately $1.6 million prior to these charges. Additional expenses of $1.0 - 1.5 million in the third quarter associated with the site closings are expected.
Going forward, the company anticipates inbound operations will represent approximately 80% to 85% of total revenues, as compared to 66% in the first quarter of this year.
"Over the past few years, we have been shifting our business mix toward more strategic relationships that are more profitable and longer-term in nature," said John A. Fellows, CEO of RMH, in a statement. "The recent increase in outbound telemarketing legislation, coupled with the war in Iraq, has accelerated this strategy. " RMH employs approximately 12,500 people and has approximately 8,000 workstations across 17 facilities throughout the United States, Canada and India.
