Press Release Archive

PGi Reports Second Quarter 2012 Results: Organic Revenues Grew 8.4%* to $127.0M; Non-GAAP Diluted EPS from Continuing Operations Grew Over 25% to $0.19*;

New PGi SaaS Products, iMeet® and GlobalMeet®, Drive Year-over-Year Revenue Growth

Company Reiterates Financial Outlook for 2012 Despite Foreign Currency Headwinds

Jul 19, 2012

ATLANTA, July 19, 2012 /PRNewswire/ -- Premiere Global Services, Inc. (NYSE: PGI), a global leader in virtual meetings for over 20 years, today announced results for the second quarter ended June 30, 2012.

In the second quarter of 2012, net revenues increased to $127.0 million, compared to $119.0 million in the second quarter of 2011.  Diluted EPS from continuing operations was $0.14 and non-GAAP diluted EPS from continuing operations was $0.19* in the second quarter of 2012, compared to diluted EPS from continuing operations of $0.10 and non-GAAP diluted EPS from continuing operations of $0.15* in the second quarter of 2011.  

"During the second quarter, we continued to maintain solid trends across our global business, in spite of growing macroeconomic pressures," said Boland T. Jones, PGi founder, chairman and CEO. "We continue to increase sales of iMeet and GlobalMeet, as well as grow our pipelines of new customer and strategic distribution partner opportunities. We remain optimistic in our outlook for the remainder of the year, as we continue to transition PGi toward a software as a service model."

Second Quarter 2012 Accomplishments

  • New PGi SaaS products, iMeet and GlobalMeet, represent significant portion of 8.4% organic revenue growth during the quarter; 
     
  • Reported non-GAAP diluted EPS from continuing operations growth of over 25% as compared to the second quarter of 2011;
     
  • Launched iMeet 2.0 – the second generation of our innovative, cloud-based video meeting product, which includes significant new features like Screen Share, Spotlight Cube, the Cloud Controls enterprise admin console and Auto-Connect audio;
     
  • Launched GlobalMeet 3.0 – the latest version of our integrated web and audio conferencing product, which includes an industry-leading new mobile meeting app for the iPad® among its many feature upgrades and enhancements;
     
  • Announced a new, multi-year strategic alliance with eircom, Ireland's leading provider of fixed and mobile telecommunications, who will offer PGi's entire suite of conferencing solutions, including iMeet and GlobalMeet, to its business customers;
     
  • Grew the annual revenue run-rate from iMeet and GlobalMeet by greater than 22% as compared to the first quarter of 2012;
     
  • iMeet recognized as the Silver award winner in the Best New Product category at the internationally renowned 2012 Edison Awards; and
     
  • Repurchased nearly one million shares of our common stock in the open market under our share repurchase plan.

Six Month Results

In the first six months of 2012, net revenues totaled $253.6 million, compared to $235.9 million in the first six months of 2011.  Diluted EPS from continuing operations was $0.27 and non-GAAP diluted EPS from continuing operations was $0.37* in the first six months of 2012, compared to diluted EPS from continuing operations of $0.15 and non-GAAP diluted EPS from continuing operations of $0.26* in the first six months of 2011. 

Financial Outlook

The following statements are based on PGi's current expectations. These statements contain forward-looking statements and company estimates, and actual results may differ materially.  PGi assumes no duty to update any forward-looking statements made in this press release.

Despite increasing global macroeconomic pressures and the negative impact of foreign currency exchange rates, PGi maintained its financial outlook for 2012. Based on current trends and foreign currency exchange rates, PGi anticipates net revenues from continuing operations in 2012 will be in the range of $500-$510 million and non-GAAP diluted EPS from continuing operations will be in the range of $0.72-$0.75*.

PGi will host a conference call today at 5:00 p.m., Eastern Time, to discuss these results.  To participate in the call, please dial-in to the appropriate number 5-10 minutes prior to the scheduled start time:  (888) 204-4317 (U.S. and Canada) or (913) 312-0643 (International).  The conference call will simultaneously be webcast.  Please visit www.pgi.com for webcast details and conference call replay information, as well as the webcast archive and the text of the earnings release, including the financial and statistical information to be presented during the call.

* Non-GAAP Financial Measures

To supplement the company's consolidated financial statements presented in accordance with GAAP, we have included the following non-GAAP measures of financial performance: non-GAAP operating income, non-GAAP net income from continuing operations, non-GAAP diluted net income per share (EPS) from continuing operations and organic growth. The company has also included these non-GAAP measures, as well as net revenues and segment net revenues, on a constant currency basis.  Management uses these measures internally as a means of analyzing the company's current and future financial performance and identifying trends in our financial condition and results of operations.  We have provided this information to investors to assist in meaningful comparisons of past, present and future operating results and to assist in highlighting the results of ongoing core operations.  Please see the table attached for calculation of these non-GAAP financial measures and for reconciliation to the most directly comparable GAAP measures.  These non-GAAP financial measures may differ materially from comparable or similarly titled measures provided by other companies and should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. 

iPad is a trademark of Apple, Inc., registered in the U.S. and other countries.

About Premiere Global Services, Inc. │ PGi

PGi has been a global leader in virtual meetings for more than 20 years. Our cloud-based solutions deliver multi-point, real-time virtual collaboration using video, voice and file sharing technologies. PGi solutions are available via desktops, tablets or mobile devices, helping businesses worldwide be more productive, mobile and green.  PGi has a global presence in 25 countries and an established base of more than 35,000 enterprise customers, including 75% of the Fortune 100.  In the last five years, we have hosted more than 725 million people from 137 countries in over 65 million meetings.

For more information, visit us at http://www.pgi.com.

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Premiere Global Services, Inc.'s forward-looking statements, including, but not limited to, the following factors: competitive pressures, including pricing pressures; technological changes and the development of alternatives to our services; market acceptance of new cloud-based, virtual meeting services, including our iMeet® and GlobalMeet® services; our ability to attract new customers and to retain and further penetrate our existing customers; risks associated with challenging global economic conditions; price increases from our telecommunications service providers; service interruptions and network downtime; technological obsolescence and our ability to upgrade our equipment or increase our network capacity; concerns regarding the security of transactions; future write-downs of goodwill or other intangible assets; greater than anticipated tax liabilities; restructuring and cost reduction initiatives and the market reaction thereto; our level of indebtedness; risks associated with acquisitions and divestitures; the impact of the sale of our PGiSend business; our ability to protect our intellectual property rights, including possible adverse results of litigation or infringement claims; regulatory or legislative changes, including further government regulations applicable to traditional telecommunications service providers and data privacy; risks associated with international operations and market expansion, including fluctuations in foreign currency exchange rates; and other factors described from time to time in our press releases, reports and other filings with the Securities and Exchange Commission, including but not limited to the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2011. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 Three Months Ended  

 Six Months Ended  

 June 30,  

 June 30,  

2012

2011

2012

2011

 (Unaudited) 

 (Unaudited) 

Net revenues

$  127,015

$    118,990

$  253,618

$    235,915

Operating expenses: 

Cost of revenues (exclusive

   of depreciation and

   amortization shown

   separately below)

53,788

49,315

107,238

96,657

Selling and marketing

32,997

34,247

67,031

70,359

General and administrative

   (exclusive of expenses

   shown separately below)

15,934

14,217

31,215

27,998

Research and development

3,526

2,627

6,905

5,803

Excise and sales tax expense

118

-

118

21

Depreciation

8,011

7,710

15,956

15,435

Amortization

1,212

1,739

2,432

3,449

Restructuring costs

(48)

-

113

-

Asset impairments

20

35

45

54

Net legal settlements and

   related expenses

62

72

82

72

Total operating expenses

115,620

109,962

231,135

219,848

Operating income

11,395

9,028

22,483

16,067

Other (expense) income:

Interest expense

(1,789)

(2,108)

(3,561)

(4,189)

Interest income

5

11

9

26

Other, net

(179)

(167)

(249)

(378)

Total other expense

(1,963)

(2,264)

(3,801)

(4,541)

Income from continuing operations

   before income taxes

9,432

6,764

18,682

11,526

Income tax expense

2,739

1,911

5,763

3,741

Net income from continuing operations

6,693

4,853

12,919

7,785

(Loss) income from discontinued

   operations, net of taxes

(226)

36

(273)

5

Net income

$       6,467

$         4,889

$     12,646

$         7,790

BASIC WEIGHTED-AVERAGE

   SHARES OUTSTANDING

48,103

50,173

48,279

50,465

Basic net income (loss) per share (1)

Continuing operations

$         0.14

$           0.10

$         0.27

$           0.15

Discontinued operations

-

-

(0.01)

-

Net income per share

$         0.13

$           0.10

$         0.26

$           0.15

DILUTED WEIGHTED-AVERAGE

   SHARES OUTSTANDING

48,551

50,508

48,740

50,788

Diluted net income (loss) per share (1)

Continuing operations

$         0.14

$           0.10

$         0.27

$           0.15

Discontinued operations

-

-

(0.01)

-

Net income per share

$         0.13

$           0.10

$         0.26

$           0.15

(1)

Column totals may not sum due to the effect of rounding on EPS.

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

June 30,

December 31, 

2012

2011

(Unaudited)

ASSETS

CURRENT ASSETS

Cash and equivalents

$           24,001

$           32,033

Accounts receivable (less allowances of $781 and $613,

   respectively)

81,983

72,518

Prepaid expenses and other current assets

15,019

13,906

Income taxes receivable

1,634

1,739

Deferred income taxes, net

340

1,090

Total current assets

122,977

121,286

PROPERTY AND EQUIPMENT, NET

103,360

103,449

OTHER ASSETS

Goodwill

295,875

295,690

Intangibles, net of amortization

8,744

10,906

Deferred income taxes, net

3,600

3,474

Other assets

7,556

8,016

TOTAL ASSETS

$         542,112

$         542,821

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$           46,645

$           42,589

Income taxes payable

239

962

Accrued taxes, other than income taxes

2,213

3,611

Accrued expenses

28,719

28,999

Current maturities of long-term debt and capital lease obligations 

4,211

3,845

Accrued restructuring costs

1,470

2,287

Deferred income taxes, net

10

386

Total current liabilities

83,507

82,679

LONG-TERM LIABILITIES

Long-term debt and capital lease obligations 

186,677

195,963

Accrued restructuring costs

1,223

1,410

Accrued expenses

17,297

17,249

Deferred income taxes, net

4,317

1,783

Total long-term liabilities

209,514

216,405

SHAREHOLDERS' EQUITY

Common stock, $0.01 par value; 150,000,000 shares authorized,

49,260,185 and 50,144,703 shares issued and outstanding, respectively

496

501

Additional paid-in capital

468,193

475,013

Accumulated other comprehensive gain

10,342

10,809

Accumulated deficit

(229,940)

(242,586)

Total shareholders' equity

249,091

243,737

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$         542,112

$         542,821

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in thousands)

Six Months Ended

June 30, 

2012

2011

(Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

Net income 

$       12,646

$          7,790

Loss (income) from discontinued operations, net of taxes

273

(5)

 Net income from continuing operations 

12,919

7,785

Adjustments to reconcile net income to net cash provided by

   operating activities:

Depreciation

15,956

15,435

Amortization

2,432

3,449

Amortization of debt issuance costs 

295

468

Net legal settlements and related expenses

82

12

Payments for legal settlements and related expenses

(17)

(12)

Deferred income taxes

3,342

655

Restructuring costs

113

-

Payments for restructuring costs 

(1,152)

(4,540)

Asset impairments

45

54

Equity-based compensation

4,184

3,587

Excess tax benefits from share-based payment arrangements

(264)

-

Provision for doubtful accounts

576

378

Changes in assets and liabilities, net of effect of acquisitions

   and dispositions:

Changes in working capital

(9,344)

(7,119)

Net cash provided by operating activities from

   continuing operations

29,167

20,152

Net cash (used in) provided by operating activities from

   discontinued operations

(630)

27

     Net cash provided by operating activities

28,537

20,179

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(15,018)

(15,306)

Other investing activities

(346)

(1,094)

Business dispositions

-

1,951

Net cash used in investing activities from continuing

   operations

(15,364)

(14,449)

Net cash used in investing activities from discontinued

   operations

(60)

-

     Net cash used in investing activities

(15,424)

(14,449)

CASH FLOWS FROM FINANCING ACTIVITIES

Principal payments under borrowing arrangements

(35,140)

(30,790)

Proceeds from borrowing arrangements

24,729

44,971

Payments of debt issuance costs

(23)

-

Excess tax benefits of share-based payment arrangements

264

-

Purchase of treasury stock, at cost

(11,437)

(11,992)

Exercise of stock options

853

-

Net cash (used in) provided by financing activities from

   continuing operations

(20,754)

2,189

Net cash used in financing activities from discontinued

   operations

-

-

    Net cash (used in) provided by financing activities

(20,754)

2,189

Effect of exchange rate changes on cash and equivalents

(391)

998

NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS

(8,032)

8,917

CASH AND EQUIVALENTS, beginning of period

32,033

15,101

CASH AND EQUIVALENTS, end of period

$       24,001

$       24,018

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(in thousands, except per share data)

Three Months Ended 

Six Months Ended 

June 30, 

June 30, 

2012

2011

2012

2011

(Unaudited)

(Unaudited)

Non-GAAP Operating

   Income (1)

Operating income,

   as reported 

$      11,395

$        9,028

$      22,483

$      16,067

Restructuring costs 

(48)

-

113

-

Excise and sales tax

   expense

118

-

118

21

Asset impairments

20

35

45

54

Net legal settlements

   and related

   expenses

62

72

82

72

Equity-based

   compensation

2,102

1,795

4,184

3,587

Amortization

1,212

1,739

2,432

3,449

Non-GAAP

   operating

   income

$      14,861

$      12,669

$      29,457

$      23,250

Non-GAAP Net Income

   from Continuing

   Operations (1)

Net income from

   continuing

   operations, as

   reported

$        6,693

$        4,853

$      12,919

$        7,785

Elimination of non-

   recurring tax

   adjustments

(91)

-

158

485

Restructuring costs

(34)

-

79

-

Excise and sales tax

   expense

83

-

83

15

Asset impairments

14

25

32

39

Net legal settlements

   and related

   expenses

43

52

57

52

Equity-based

   compensation

1,471

1,288

2,929

2,574

Amortization

848

1,248

1,702

2,475

Non-GAAP

   net income

   from

   continuing

   operations

$        9,027

$        7,466

$      17,959

$      13,425

Non-GAAP Diluted EPS

   from Continuing

   Operations (1) (2)

Diluted net income per

   share from

   continuing

   operations, as

   reported

$           0.14

$           0.10

$           0.27

$          0.15

Elimination of non-

   recurring tax

   adjustments

-

-

-

0.01

Restructuring costs

-

-

-

-

Excise and sales tax

   expense

-

-

-

-

Asset impairments

-

-

-

-

Net legal settlements

   and related

   expenses

-

-

-

-

Equity-based

   compensation

0.03

0.03

0.06

0.05

Amortization

0.02

0.02

0.03

0.05

Non-GAAP

   diluted EPS

   from

   continuing

   operations

$           0.19

$           0.15

$           0.37

$          0.26

(1)

Management believes that presenting non-GAAP operating income, non-GAAP net income from continuing operations and non-GAAP diluted EPS from continuing operations provide useful information regarding underlying trends in the company's continuing operations.  Management expects equity-based compensation and amortization expenses to be recurring costs and presents non-GAAP net income from continuing operations and non-GAAP diluted EPS from continuing operations to exclude these non-cash items as well as non-recurring items that are unrelated to the company's ongoing operations, including non-recurring tax adjustments, restructuring costs, excise and sales tax expense, asset impairments and net legal settlements and related expenses.  These non-cash and non-recurring items are presented net of taxes for non-GAAP net income from continuing operations and non-GAAP diluted EPS from continuing operations. 

(2)

Column totals may not sum due to the effect of rounding on EPS.

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

CONSTANT CURRENCY ADJUSTMENTS AND ORGANIC GROWTH

Prior Year Quarter Constant Currency Adjustments (3)

Impact of

fluctuations in foreign currency exchange rates

Q2 - 12 (Constant currency)

Q2 - 12 (Actual)

(Unaudited, in thousands, except per share data)

Net Revenues

$          128,981

$                      (1,966)

$      127,015

North America Net Revenue

$            84,739

$                         (155)

$        84,584

Europe Net Revenue

$            28,324

$                      (1,585)

$        26,739

Asia Pacific Net Revenue

$            15,918

$                         (226)

$        15,692

Non-GAAP Operating Income

$            14,953

$                           (92)

$        14,861

Non-GAAP Net Income from Continuing Operations

$               9,083

$                           (56)

$          9,027

Non-GAAP Diluted EPS from Continuing Operations

$                 0.19

$                               -

$            0.19

(3)

Management also presents the non-GAAP financial measures described under note 1 above, as well as net revenues and segment net revenue, on a constant  currency basis compared to the same quarter in the previous year to exclude the effects of foreign currency exchange rates, which are not completely within management's control, in order to facilitate period-to-period comparison of the company's financial results without the distortion of these fluctuations.  These constant currency adjustments convert current quarter results using prior period (Q2 - 11) average exchange rates.

Sequential Quarter Constant Currency Adjustments (4)

Impact of 

fluctuations in foreign currency exchange rates

Q2 - 12 (Constant currency)

Q2 - 12 (Actual)

(Unaudited, in thousands)

Net Revenues

$          127,586

$                        (571)

$     127,015

(4)

Management also presents net revenues on a constant currency basis compared to the prior quarter to exclude the effects of foreign currency exchange rates, which are not completely within management's control, in order to facilitate period-to-period comparison of the company's financial results without the distortion of these fluctuations.  These constant currency adjustments convert current quarter results using prior period (Q1 - 12) average exchange rates.

Organic Growth (5)

Impact of

fluctuations in foreign currency exchange rates

June 30,
2011

Organic net revenue growth

June 30,
2012

Organic net revenue growth rate

(Unaudited, in thousands, except percentages)

Net Revenues, Three Months Ended

$          118,990

$                     (1,966)

$          9,991

$         127,015

8.4%

 Net Revenues, Six Months Ended

$          235,915

$                     (2,199)

$        19,902

$         253,618

8.4%

(5)

Management defines "organic growth" as revenue changes excluding the impact of foreign currency exchange rate fluctuations and acquisitions made during the periods presented and presents this non-GAAP financial measure to exclude the effect of these items that are not completely within management's control, such as foreign currency exchange rate fluctuations, or do not reflect the company's ongoing core operations or underlying growth, such as acquisitions.

 

Investor Calls

Sean O'Brien
Executive Vice President
Strategy & Communications
(404) 262-8462

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SOURCE PGi