Press Release Archive

PGi Milestone: SaaS Products Hit $66 Million Annual Revenue Run-Rate, Exceeding 10% of Consolidated Revenues Run-Rate

PGi's Transition Accelerates, with Over 70% of SaaS Sales to Existing Customer Base; Third Quarter Revenues Up Nearly 8% to $140.4M; Non-GAAP Diluted EPS from Continuing Ops $0.22*

Oct 23, 2014

ATLANTA, Oct. 23, 2014 /PRNewswire/ -- Premiere Global Services, Inc. (NYSE: PGI), the world's largest pure-play provider of collaboration software and services, today announced results for the third quarter ended September 30, 2014.

In the third quarter of 2014, net revenues increased 7.5% to $140.4 million, compared to $130.6 million in the third quarter of 2013. Diluted EPS from continuing operations was $0.06 in the third quarter of 2014, compared to diluted EPS from continuing operations of $0.10 in the third quarter of 2013. Non-GAAP diluted EPS from continuing operations was $0.22* in the third quarter of 2014, compared to non-GAAP diluted EPS from continuing operations of $0.20* in the third quarter of 2013.

"The last few months have been among the most important in PGi's history, with continuing strong growth in our core software applications, iMeet® and GlobalMeet®, and the completion of two strategic acquisitions that expand our collaboration portfolio," said Boland T. Jones, PGi founder, chairman and CEO. "With our acquisitions of TalkPoint and Central Desktop, PGi offers a unified collaboration platform that enables businesses to work how and when they want—in real-time or near-time, whether in teams, large groups or one-on-one. The acquisitions further our transition to a SaaS model, increasing our combined SaaS annual revenue run-rate to approximately $66 million, or over 10 percent of our total revenue run-rate—up from $48 million at the end of the second quarter."

Recent Accomplishments

  • Acquired TalkPoint, a leading provider of webcasting software and services in September;
  • Acquired Central Desktop, a leading cloud-based team workspace platform in October;
  • Integrated PGi's global hybrid IP audio conferencing network with Microsoft® Lync® Server 2013;
  • Increased capacity, extended term and improved pricing and covenants of our credit facility;
  • Announced a strategic alliance with Thinking Phone Networks to bring iMeet to its UCaaS customers;
  • PGi and iMeet awarded gold and silver Stevie® Awards for Company of the Year and Android App of the Year; and
  • Agenday won a platinum award from the Best Mobile App Awards for best mobile calendar app.

Nine-Month Results

In the first nine months of 2014, net revenues grew 9.1% to $427.9 million, compared to $392.2 million in the first nine months of 2013. Diluted EPS from continuing operations was $0.30 in the first nine months of 2014, compared to diluted EPS from continuing operations of $0.43 in the first nine months of 2013. Non-GAAP diluted EPS from continuing operations was $0.68* in the first nine months of 2014, compared to non-GAAP diluted EPS from continuing operations of $0.58* in the first nine months of 2013. 

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.

Based on current business trends and current foreign currency exchange rates, PGi anticipates that results for 2014 will be within the following financial outlook ranges: net revenues from continuing operations are projected to be in the range of $568-$571 million and non-GAAP diluted EPS from continuing operations is projected to be in the range of $0.87-$0.88.

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) 278-8459 (U.S. and Canada) or (913) 312-1489 (International), participant passcode 9822202. The conference call will simultaneously be webcast. Please visit 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 tables 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. 

About Premiere Global Services, Inc. │ PGi
PGi is the world's largest pure-play provider of collaboration software and services. PGi's unified collaboration platform empowers business users and teams to connect, share ideas and manage projects with the simplicity and everywhere-access of the latest cloud technologies. PGi has a global presence in 25 countries, and its award-winning solutions provide a collaborative advantage to nearly 50,000 enterprise customers, including 75% of the Fortune 100™. In the last five years, PGi has helped over a billion people worldwide connect, collaborate and get work done—in teams, large groups and one-on-one. For more information, visit PGi at 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, many of which are beyond our control. 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 PGi'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 PGi's SaaS products, including iMeet® and GlobalMeet®; our ability to attract new customers and to retain and further penetrate our existing customers; our ability to establish and maintain strategic reseller and distribution relationships; risks associated with challenging global economic conditions; price increases from our telecommunications service providers; service interruptions and network downtime, including undetected errors or defects in our software; technological obsolescence and our ability to upgrade our equipment or increase our network capacity; concerns regarding the security and privacy of our customers' confidential information; future write-downs of goodwill or other intangible assets; greater than anticipated tax and regulatory liabilities; restructuring and cost reduction initiatives and the market reaction thereto; our level of indebtedness; risks associated with acquisitions and divestitures; indemnification claims from 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 made 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, 2013. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We do not undertake any obligation to update or to release publicly any revisions to forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this press release or the date of the statement, if a different date, or to reflect the occurrence of unanticipated events.

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)



























Three Months Ended


Nine Months Ended





September 30,


September 30,





2014


2013


2014


2013























Net revenues


$  140,383


$    130,570


$  427,909


$    392,240

Operating expenses: 










Cost of revenues (exclusive of depreciation and amortization shown










separately below)


57,965


56,203


176,508


168,566


Selling and marketing


36,813


33,379


112,242


101,924


General and administrative (exclusive of expenses










shown separately below)


17,810


15,605


54,815


47,284


Research and development


5,534


4,145


14,655


11,699


Excise and sales tax expense


-


1


-


78


Depreciation


8,697


8,459


26,248


25,029


Amortization


2,582


855


7,549


1,709


Restructuring costs


68


240


68


441


Asset impairments


4,938


18


4,938


216


Net legal settlements and related expenses


172


278


172


591


Acquisition-related costs


2,147


2,805


5,838


3,044



Total operating expenses


136,726


121,988


403,033


360,581












Operating income


3,657


8,582


24,876


31,659












Other (expense) income:










Interest expense


(2,133)


(1,599)


(6,618)


(4,927)


Interest income


5


22


25


93


Other, net


741


(88)


996


130



Total other expense, net


(1,387)


(1,665)


(5,597)


(4,704)












Income from continuing operations before income taxes


2,270


6,917


19,279


26,955

Income tax (benefit) expense


(376)


2,072


5,230


6,821

Net income from continuing operations


2,646


4,845


14,049


20,134












Loss from discontinued operations, net of taxes


(100)


(182)


(283)


(418)












Net income


$       2,546


$         4,663


$     13,766


$       19,716












BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING


45,162


46,313


45,797


46,202












Basic net income (loss) per share (1)










Continuing operations


$         0.06


$           0.10


$         0.31


$           0.44


Discontinued operations


-


-


(0.01)


(0.01)


Net income per share


$         0.06


$           0.10


$         0.30


$           0.43












DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING


45,898


46,818


46,485


46,685












Diluted net income (loss) per share










Continuing operations


$         0.06


$           0.10


$         0.30


$           0.43


Discontinued operations


-


-


(0.01)


(0.01)


Net income per share


$         0.06


$           0.10


$         0.30


$           0.42












(1)

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


 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except per share data)
















September 30, 


December 31, 




2014


2013







ASSETS




CURRENT ASSETS





Cash and equivalents

$           29,505


$           44,955


Accounts receivable (less allowances of $597 and $760, respectively)

88,478


78,481


Prepaid expenses and other current assets

17,275


22,645


Income taxes receivable

2,732


2,316


Deferred income taxes, net

5,251


4,390



Total current assets

143,241


152,787







PROPERTY AND EQUIPMENT, NET

101,747


105,724







OTHER ASSETS





Goodwill

369,251


341,382


Intangibles, net of amortization

97,419


78,637


Deferred income taxes, net

1,810


1,957


Other assets

18,651


17,621



TOTAL ASSETS

$         732,119


$         698,108







LIABILITIES AND SHAREHOLDERS' EQUITY




CURRENT LIABILITIES





Accounts payable

$           56,116


$           51,994


Income taxes payable

2,749


2,648


Accrued taxes, other than income taxes

18,597


11,190


Accrued expenses

34,208


34,402


Current maturities of long-term debt and capital lease obligations 

1,781


1,719


Accrued restructuring costs

424


2,104


Deferred income taxes, net

37


171



Total current liabilities

113,912


104,228







LONG-TERM LIABILITIES





Long-term debt and capital lease obligations 

310,873


272,467


Accrued restructuring costs

-


77


Accrued expenses

25,754


29,570


Deferred income taxes, net

21,400


18,881



Total long-term liabilities

358,027


320,995







SHAREHOLDERS' EQUITY





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





47,082,520 and 48,338,335 shares issued and outstanding, respectively

472


483


Additional paid-in capital

440,654


457,913


Accumulated other comprehensive gain

1,968


11,169


Accumulated deficit

(182,914)


(196,680)



Total shareholders' equity

260,180


272,885



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$         732,119


$         698,108







 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (Unaudited, in thousands)

























Nine Months Ended







September 30, 







2014


2013










CASH FLOWS FROM OPERATING ACTIVITIES







Net income 


$       13,766


$       19,716



Loss from discontinued operations, net of taxes


283


418




 Net income from continuing operations 


14,049


20,134


Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation


26,248


25,029



Amortization


7,549


1,709



Amortization of debt issuance costs 


491


450



Net legal settlements and related expenses


172


591



Payments for legal settlements and related expenses


(170)


(272)



Deferred income taxes


1,096


2,182



Restructuring costs


68


441



Payments for restructuring costs 


(1,816)


(1,158)



Asset impairments


4,938


216



Equity-based compensation


7,544


5,694



Excess tax benefits from share-based payment arrangements


(448)


(360)



Provision for doubtful accounts


203


214



Acquisition-related costs


5,838


3,044



Cash paid for acquisition-related costs


(5,411)


-



Changes in working capital, net of business acquisitions


(6,460)


(1,421)





Net cash provided by operating activities from continuing operations


53,891


56,493





Net cash used in operating activities from discontinued operations


(259)


(493)





Net cash provided by operating activities


53,632


56,000










CASH FLOWS FROM INVESTING ACTIVITIES







Capital expenditures


(26,562)


(24,794)



Business acquisitions, net of cash acquired 


(55,517)


(50,873)



Other investing activities, net


2,046


(457)





Net cash used in investing activities from continuing operations


(80,033)


(76,124)





Net cash used in investing activities from discontinued operations


-


-





Net cash used in investing activities


(80,033)


(76,124)



















CASH FLOWS FROM FINANCING ACTIVITIES







Principal payments under borrowing arrangements


(99,509)


(55,494)



Proceeds from borrowing arrangements


137,000


94,750



Payments of debt issuance costs


(1,060)


(1,253)



Excess tax benefits of share-based payment arrangements


448


360



Purchases and retirement of treasury stock, at cost


(25,844)


(2,087)



Exercise of stock options


963


-





Net cash provided by financing activities from continuing operations


11,998


36,276





Net cash provided by financing activities from discontinued operations


-


-





Net cash provided by financing activities


11,998


36,276










Effect of exchange rate changes on cash and equivalents


(1,047)


(56)










NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS


(15,450)


16,096

CASH AND EQUIVALENTS, beginning of period


44,955


20,976

CASH AND EQUIVALENTS, end of period


$       29,505


$       37,072










 


PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands, except per share data)
















Three Months Ended 


Nine Months Ended 





September 30,


September 30,





2014


2013


2014


2013








Non-GAAP Operating Income (1)










Operating income, as reported 


$        3,657


$        8,582


$      24,876


$      31,659


Restructuring costs 


68


240


68


441


Excise and sales tax expense


-


1


-


78


Asset impairments


4,938


18


4,938


216


Net legal settlements and related expenses


172


278


172


591


Acquisition-related costs


2,147


2,805


5,838


3,044


Equity-based compensation


2,660


2,058


7,544


5,694


Amortization


2,582


855


7,549


1,709



Non-GAAP operating income


$      16,224


$      14,837


$      50,985


$      43,432












Non-GAAP Net Income from Continuing Operations (1)










Net income from continuing operations, as reported


$        2,646


$        4,845


$      14,049


$      20,134


Elimination of non-recurring tax adjustments and related interest


(1,158)


31


(683)


(1,131)


Restructuring costs


47


169


47


311


Excise and sales tax expense


-


1


-


55


Asset impairments


3,407


13


3,407


152


Net legal settlements and related expenses


119


196


119


417


Acquisition-related costs


1,481


1,978


4,028


2,146


Equity-based compensation


1,835


1,451


5,205


4,014


Amortization


1,782


603


5,209


1,205



Non-GAAP net income from continuing operations


$      10,159


$        9,287


$      31,381


$      27,303












Non-GAAP Diluted EPS from Continuing Operations (1) (2)










Diluted net income per share from continuing operations, as reported


$           0.06


$           0.10


$           0.30


$          0.43


Elimination of non-recurring tax adjustments and related interest


(0.03)


-


(0.01)


(0.02)


Restructuring costs


-


-


-


0.01


Excise and sales tax expense


-


-


-


-


Asset impairments


0.07


-


0.07


-


Net legal settlements and related expenses


-


-


-


0.01


Acquisition-related costs


0.03


0.04


0.09


0.05


Equity-based compensation


0.04


0.03


0.11


0.09


Amortization


0.04


0.01


0.11


0.03



Non-GAAP diluted EPS from continuing operations


$           0.22


$           0.20


$           0.68


$          0.58
























(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 and related interest, restructuring costs, excise and sales tax expense, asset impairments, net legal settlements and related expenses and acquisition-related costs. 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













Q3 - 14 (Constant currency)


fluctuations in foreign currency exchange rates


Q3 - 14 (Actual)











(Unaudited, in thousands, except per share data)

























Net Revenues

$       139,811


$                    572


$   140,383










North America Net Revenue

$         87,666


$                  (159)


$     87,507










Europe Net Revenue

$         35,226


$                    854


$     36,080










Asia Pacific Net Revenue

$         16,919


$                  (123)


$     16,796










Non-GAAP Operating Income

$         16,030


$                    194


$     16,224










Non-GAAP Net Income from Continuing Operations

$           9,500


$                    659


$     10,159










Non-GAAP Diluted EPS from Continuing Operations

$             0.21


$                   0.01


$         0.22






















(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 (Q3 - 13) average exchange rates.

































Sequential Quarter Constant Currency Adjustments (4)

































Impact of 













Q3 - 14 (Constant currency)


fluctuations in foreign currency exchange rates


Q3 - 14 (Actual)











(Unaudited, in thousands)
























Net Revenues

$       141,062


$                  (679)


$    140,383






















(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 (Q2 - 14)




average exchange rates.



























Organic Growth (5)

















































Impact of













September 30,
2013


fluctuations in foreign currency exchange rates


Acquisitions


Organic net revenue growth


September 30,
2014


Organic net

revenue

growth rate





(Unaudited, in thousands, except percentages)




















Net Revenues, Three Months Ended

$       130,570


$                    115


$      11,981


$       (2,283)


$         140,383


-1.7%



 Net Revenues, Nine Months Ended

$       392,240


$                    106


$      45,579


$     (10,016)


$         427,909


-2.6%
















(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. 



























 

Media and Investor Contact:
Sean O'Brien
(404) 262-8462
sean.obrien@pgi.com

PGi has been a global leader in collaboration and virtual meetings for over 20 years. PGi's cloud-based solutions deliver multi-point, real-time virtual collaboration using video, voice, mobile, web streaming and file sharing technologies.

 

Logo - http://photos.prnewswire.com/prnh/20131203/CL27071LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pgi-milestone-saas-products-hit-66-million-annual-revenue-run-rate-exceeding-10-of-consolidated-revenues-run-rate-372141793.html

SOURCE Premiere Global Services, Inc.